Growthpoint Interactive Half Year Report 2019

Drivers of demand for industrial/logistics remain largely positive, with solid export levels, strong population growth and continued growth in e-commerce retail. State and Federal investment in transport infrastructure, particularly in New South Wales and Victoria is improving connectivity and providing continued support to the industrial economy. Leasing activity was strong along the Eastern seaboard with the most active tenant groups being transport, postal and e-retailing businesses, as beneficiaries of the growth in online retail. Appetite for well-located assets remains strong in both leasing and investment markets, and this was reflected in another strong period of like-for-like valuation growth of $38.5 million (or 3.4%) over the six months to 31 December 2018, excellent leasing outcomes to high quality tenants (over 68,251 sqm leased 1 ) and occupancy improved to 99% (from 98%). Expansion of 599 Main North Road, Gepps Cross, SA On 4 January 2019, Growthpoint entered into contracts with Woolworths Limited to fund the $57 million expansion of 599 Main North Road, Gepps Cross, SA. The expansion, which is expected to achieve practical completion by mid- 2020, will include an extension of the existing temperature controlled and ambient warehouses, construction of a new recycling facility and other ancillary improvements. The site currently serves as Woolworths’ South Australian head office and primary distribution centre servicing South Australia and the Northern Territory. Growthpoint is funding the development and will receive a coupon for the project costs as they are incurred at a yield of 6.75% p.a. On completion, the total project cost will be rentalised via a new 15-year lease over the expanded property, which will comprise ~90,000 sqm of lettable area. Industrial portfolio review. Top ten industrial tenants by passing rent, as at 31 December 2018 % WALE (yrs) Woolworths 44 4.0 Linfox 11 4.4 Australian Postal Corporation 5 5.5 Laminex Group 3 3.5 Brown & Watson International 3 6.6 Paper Australia 2 0.7 Reward Supply Co. 2 0.7 The Workwear Group 2 8.5 Autocare Services 2 11.8 Symbion 2 10.0 TOTAL / Weighted Ave. 76 4.5 Balance of portfolio 24 4.3 Total portfolio 100 4.4 Industrial portfolio lease expiry profile (%) per financial year, by income FY22 38 FY23 5 FY24 8 FY25+ 33 FY21 4 FY20 10 FY19 1 Vacant 1 1. Includes recently announced lease extension to Woolworths at 599 Main North Road, Gepps Cross, SA (announced 4 January 2019). 14 Growthpoint Properties Australia | 2019 Half Year Report