Growthpoint Interactive Annual Report 2018

Industrial Portfolio Review Industrial portfolio key statistics (as at 30 June 2018) — — $1,146.8 million total value — — 717,014 sqm total lettable area — — 6.6% weighted average capitalisation rate — — 34% of total property portfolio — — 99% occupancy — — 4.9 year WALE — — 2.8% WARR — — 31 assets Geographic diversity (%) by property value, as at 30 June 2018 VIC QLD WA NSW SA 32 21 19 17 11 Tenants by Industry (%) by income, as at 30 June 2018 Retail Logistics Manufacturing Other consumer & business services 57 25 12 6 Summary FY18 was a busy year for Growthpoint’s industrial portfolio, with a number of significant transactions and leasing activity contributing to a solid underlying performance. Industrial remains a highly sought-after segment of the property market, both from the perspective of tenancy with new online e-commerce business entering the market, and from domestic and offshore investors with an appetite for well-located assets. This high level of interest was reflected in another strong period of like-for-like valuation growth of $61.4 million, or 5.9%, excellent leasing outcomes to high quality tenants (over 115,340 sqm leased) and occupancy high at 99%. The main drivers of industrial demand remain largely positive, with solid export levels, strong population growth and continued growth in e-commerce retail. Plans for major infrastructure investment by State and Federal governments with a focus on transport infrastructure, particularly in New South Wales and Victoria is also expected to be a long- term driver of demand. Acquisitions and Divestments Growthpoint was involved in two major industrial transactions over FY18, both of which generated positive outcomes for the Group: Sale of 522-550 Wellington Road, Mulgrave, Victoria In November 2017, Growthpoint announced it had entered into contracts for the sale of 522-550 Wellington Road, Mulgrave, Victoria for $90.75 million, representing a 37.7% premium to the 30 June 2017 book valuation of $65.9 million. The income yield on the sale price was a record 5.2% per annum for a Woolworths distribution centre. The sale of Mulgrave was a particularly favourable outcome for Growthpoint’s Securityholders and an endorsement of the Group’s highly desirable property portfolio. The sale was consistent with management’s stated intention which was to seek to realise material upside in the sale of assets with future development potential to a higher and better use. Top ten industrial tenants by passing rent, as at 30 June 2018 % WALE (yrs) Woolworths 44 4.5 Linfox 11 4.9 Australian Postal Corporation 5 6.0 Laminex Group 3 4.0 Brown & Watson International 3 7.1 Paper Australia 2 1.2 Reward Supply Co. 2 1.2 The Workwear Group 2 9.0 Autocare Services 2 12.3 Symbion 2 10.5 Total / weighted Average 76 5.0 Balance of portfolio 24 4.8 Total portfolio 100 4.9 Growthpoint Properties Australia 2018 Annual Report 28