Growthpoint Interactive Annual Report 2018

Chairman’s Report Consistent and transparent business model Total Securityholder return over 1, 3 & 5 years (%) 1 1 year 13.2 22.3 3 years 10.0 11.8 5 years 12.2 16.2 Growthpoint S&P/ASX 300 A-REIT accumulation index Dear Securityholders, The 2018 financial year was another strong year for Growthpoint with the Group continuing on a path of executing on its promises and growing distributions for Securityholders. Over the year investors in Growthpoint securities achieved a total return of 22.3%, outperforming the ASX300 A-REIT Acc Index by 10.1 percentage points, an excellent achievement and validation of the Group’s portfolio strategy and execution. Importantly this outperformance extends to longer term time periods, with outperformance also achieved over 3 and 5 years (see chart on the right of page). In October 2017 we introduced a new Board member in Josephine Sukkar AM. Josephine joins as the Group’s fourth Independent Director and brings with her significant construction expertise with over 27 years running a large building company in Sydney. Importantly, this coincides with the Group commencing construction of a high-quality, A-grade office building on vacant land at the Botanicca Corporate Park in the inner- city Melbourne suburb of Richmond. Josephine’s appointment brings female representation on the Board to 25% (from 14% at 30 June 2017). Recognising the increasing burden of energy costs for our tenants, and with a view to reducing our carbon footprint as an organisation, Growthpoint has identified a number of potential solar projects it will look to progress over FY19. Investment in these projects demonstrates a genuine commitment to renewable energy being made by the Group, while importantly making our property portfolio more efficient to attract the highest quality tenants. More information on these projects can be found in the Group’s FY18 Sustainability Report. To ensure the Group is maintaining pace with best practice across the sector, PwC were asked as part of their annual engagement to review the existing executive remuneration framework. The Nomination, Remuneration and HR Committee has recommended to implement three key changes from FY19 it believes will further align the interests of Securityholders with Management remuneration. More information on the Group’s remuneration can be found on pages 37 to 52 of this report. We believe the Group is well positioned to take advantage of a number of exciting new opportunities to continue growing the business in a sustainable way. With strong support from our majority Securityholder, Growthpoint Properties Limited, we enter FY19 with enthusiasm and a belief that we can continue delivering the best outcomes for our Securityholders, creating additional value from properties we own and continuing to grow our portfolio. On behalf of the Board, I would like to thank all our Securityholders for their continued support of Growthpoint. I would also like to thank our employees, tenants, third party suppliers, debt providers, directors and other stakeholders for their continued contribution to our success. Geoff Tomlinson Independent Chairman & Director Growthpoint Properties Australia Limited 1. Source: UBS Investment Research: Annual compound returns to 30 June 2018. 37 Growthpoint Properties Australia 2018 Annual Report 7 Financial Report Portfolio Review Financial Management Business Overview Governance Additional Information