Growthpoint Interactive Half Year Report 2018

Growthpoint Properties Australia 2018 Half Year Report 5 Portfolio Review Financial Report Additional Information Financial Management Business Overview Asset divestment, development and M&A provide opportunities for earnings accretion when attractive acquisition opportunities in the direct market are limited. Consequently, the Group is looking closely at these opportunities to continue to grow earnings. With gearing reduced to 35.8% 1 from 40.7% 1 over the last 12 months, the Group’s balance sheet is in a position to take advantage of attractive opportunities in the market should they become available. Thank you for your continued support of Growthpoint Properties Australia. Geoff Tomlinson Independent Chairman & Director Timothy Collyer Managing Director Growthpoint Properties Australia Limited HY18 at a glance 4.5 s NABERS energy rating average across the office portfolio 12.5cps FFO 11.0cps DPS $3.08 Net tangible assets per security 6.9% increase from 30 June 2017 98% Portfolio occupancy $207.3m Statutory profit 83% increase on prior corresponding period $3.3b Property portfolio value DIVESTMENT 522-550 Wellington Road, Mulgrave, Victoria $90.75m Sale price – represents a 37.7% premium on 30 June 2017 book value of $65.9 million ACQUISITION Perth Airport precinct: four adjoining, modern industrial warehouses $46.0m Purchase price – providing an initial passing yield of 8.13% ACQUISITION Industria REIT (ASX code: IDR) 18.2% Interest – purchase price of $68.1 million with DPS yield of 7.2% at time of acquisition 1. Gearing calculation changed during the period from interest bearing liabilities divided by total assets to interest bearing liabilities less cash divided by total assets less cash. This change brings Growthpoint’s gearing calculation more closely in line with industry peers.