Growthpoint Interactive Annual Report 2018

Market opportunities not limited to direct property acquisition Portfolio opportunities to maximise value LISTED MARKET NEW DIRECT MARKETS INTERNAL DEVELOPMENT OPPORTUNITIES Pipeline of >$200m in development and expansion opportunities, led by: Botanicca 3 development at Richmond, VIC – development yield on cost between 7.5% and 8.5% Gepps Cross Expansion, SA – Negotiating with tenant regarding potential $50 to $60 million expansion STRATEGIC DIVESTMENTS Sell property with residential conversion upside 522-550 Wellington Road, Mulgrave, VIC sold for $90.8 million – 37.7% premium to book value Quads 2 & 3, Sydney Olympic Park, NSW – Marketing commenced July 2018 18.2% Stake in Industria REIT (ASX: IDR) t t Acquired stake in July 2017 for $2.30 per security ($68.1 million) t t Value as at 30 June 2018: $2.65 per security ($78.5 million) t t Continue to evaluate IDR whilst receiving attractive income yield $91.3m Inaugural investment into Perth office market t t Long period of due diligence on Perth office market t t Recovery in Perth to be driven by recent improvement in business investment and removal of substantial sub- leasing from the market over a recent period of subdued development Completed detailed review of retail market in May 2018 t t Continue to believe no investment in retail is correct strategy at this time t t Difficult to identify catalyst for rebound in consumer spending t t Sector undergoing significant structural change t t Expect significant retail property to be on the market over next 12-24 months and yields to rise for some retail property categories $1.5bn Opportunities reviewed in FY18 $0.8bn Opportunities bid on in FY18 $137.3m Direct properties acquired 1 RETAIL MARKET REVIEW BIDDING ON DIRECT PROPERTY INVESTMENTS 8.3 yr WALE ‘AAA’ rated Tenant Considered investment decisions in competitive direct property market 1. Includes acquisition of 836 Wellington Street, West Perth, WA for $91.3 million, expected to settle in October 2018. Growthpoint Properties Australia 2018 Annual Report 10