Growthpoint Interactive Half Year Report 2019

Property portfolio overview. Michael Green Chief Investment Officer Investor sentiment towards both the office and industrial sectors remained positive over the course of HY19, despite increased equity market volatility toward the end of the period. Positive yield spreads to funding costs, low vacancy rates and improving market rents, particularly in Sydney and Melbourne, drove significant national commercial real estate transactional activity in 2018, reaching record levels ($41.8 billion) 3 . Australian office markets continue to attract significant volumes of capital from domestic and offshore investors, accounting for more than half of the total transactions ($21.8 billion) 3 in 2018, while industrial remains the favoured sector globally benefiting from growth in online spending. While risks are emerging across some sectors of the Australian property market, we believe the outlook for office and industrial property leased to high quality tenants is positive. Over the past 12 months the Australian economy added 284,100 4 jobs (above the long-run average) and population growth remains strong, particularly across the Eastern seaboard of Australia. With over 81% Total portfolio value $ 3,860.8 m (30 June 2018: $3,356.1m) Portfolio occupancy 99 % (30 June 2018: 98%) WALE 5.1 yrs (30 June 2018: 5.3 years) Number of assets 59 Total lettable area 1,038,683 sqm Weighted average capitalisation rate 6.0% WARR 1 3.3% Weighted average property age 10.7 years Average value (per sqm) $3,717 HY net property income 2 $108.8m Number of tenants 151 of Growthpoint’s tenants being either Australian government agencies or listed corporates, we have confidence in the source of income that underpins Growthpoint’s growing distribution. Our focus over the course of 2019 will be on upcoming lease expiries, with good progress already made at properties with near term expiries. We will also continue to seek both direct and indirect investment opportunities in office and industrial property as well as look to enhance the value of the existing portfolio where the right opportunities exist. 1. Assumes CPI change of 1.8% per annum as per Australian Bureau of Statistics release for CY18. 2. Excludes IDR distributions. 3. Cushman & Wakefield, Australian National Investment MarketBeat report, Q4 2018. 4. Australian Bureau of Statistics, Labour Force, Dec 2018. 8 Growthpoint Properties Australia | 2019 Half Year Report