Growthpoint Interactive Half Year Report 2019

Dion Andrews Chief Financial Officer Financial Management. Funds From Operations (FFO) 12.5 cps No change on HY18 Distributions 11.4 cps Increase of 3.6% on HY18 Gearing at bottom of 35-45% range 35.0 % (30 June 2018: 33.9%) HY19 Distribution 11.4cps FY19 FFO Guidance at least 24.8cps FY19 Distribution Guidance 23.0cps NTA per security $3.36 Fixed debt % 69% Highlights for HY19 t t FFO of 12.5 cents per security, no change on HY18 t t Distributions of 11.4 cents per security, an increase of 3.6% on HY18, equating to a payout ratio to FFO of 95.8% t t FY19 FFO guidance increased during the period to ‘at least’ 24.8 cps (from 24.6 cps) t t NTA per security of $3.36, 5.3% above 30 June 2018 t t Gearing of 35.0%, 110 basis points higher than 30 June 2018 t t Successful completion of $135 million Rights Offer, achieving oversubscriptions on both the institutional and retail components t t All-in cost of debt reduced from 4.4% p.a. at 30 June 2018 to 4.1% p.a. at 31 December 2018 Summary It has been a strong start to FY19 from a financial management perspective, with two accretive acquisitions completed putting the Group in a position to upgrade FFO guidance to at least 24.8 cps. The successful equity raising to help fund the acquisition of 100 Skyring Terrace, Newstead, QLD was an excellent outcome, with strong appetite for new GOZ securities resulting in oversubscriptions across both the institutional and retail components. Revaluation gains across both the office and industrial portfolios supported strong growth in NTA per security and helped maintain gearing at the bottom of the Group’s target range. The payout ratio for the half of 95.8% was elevated as a result of newly issued securities as part of the Rights Offer being entitled to the interim dividend (FY19 forecast payout ratio maximum of 92.7% based on current guidance). Debt strategy Growthpoint retains good access to debt through both local banking relationships and offshore debt capital markets. The Group recently extended $515 million of debt to domestic institutions, with all major domestic banks expressing interest. A bridge facility was put in place to help fund the Newstead acquisition in December 2018 and this is expected to be replaced by additional debt capital markets issuances. The earliest debt expiry is February 2020 and the Group continues to look at all available debt markets for the best possible funding structure. 16 Growthpoint Properties Australia | 2019 Half Year Report