Growthpoint Interactive Half Year Report 2019

Financial Management Financial Report Additional Information Portfolio Review Business Overview Funds From Operations (FFO) FFO is the net profit available for distribution from the Group which excludes accounting adjustments such as fair value movements to the value of investment property, investment in securities and interest rate swaps, depreciation, profits or losses on sale of investment properties, deferred tax and amortisation of tenant incentives. FFO is non-IFRS financial information and has not been subject to review by the Group’s external auditors. FFO has been provided to allow Securityholders to identify that income which is available to distribute to them and will assist in the assessment of relative performance of the Group. Reconciliation from statutory profit to FFO HY19 HY18 Change % Change $’000 $’000 $’000 % Profit after tax 188,757 207,291 (18,534) (8.9) Less non-FFO items: - Straight line adjustment to property revenue (2,937) (2,903) (34) - Net changes in fair value of investment property (101,407) (102,893) (1,486) - (Profit)/ loss on sale of investment property – (24,401) 24,401 - Net change in fair value of investment in securities (2,370) (6,517) 4,147 - Net change in fair value of derivatives (5,324) 4,177 (9,501) - Depreciation 147 86 61 - Amortisation of incentives 9,247 7,464 1,783 - Deferred tax benefit 456 172 284 FFO 86,569 82,476 4,093 5.0 The HY19 payout ratio, calculated as distributions on ordinary stapled securities divided by FFO, was 95.8% (HY18: 88.3%). Details about distribution components under the attribution managed investment trust or “AMIT” regime (only relevant for the full year distribution) and Fund Payment amounts (only relevant for foreign holders) will be made available on Growthpoint’s website on or before the relevant distribution date. For more information go to: growthpoint.com.au/investor-centre/distributions/ Operating and capital expenses Operating expenses CY18 CY17 Total operating expenses $'000 13,506 13,066 Average gross assets value $'000 3,526,881 3,295,858 Operating expenses to average gross assets % 0.38 0.40 Capital expenditure CY18 CY17 Total portfolio capex $'000 9,045 15,889 Average property asset value $'000 3,449,335 3,083,095 Capital expenditure to average property portfolio value % 0.26 0.52 Growthpoint Properties Australia | 2019 Half Year Report 19