#1Growthpoint Properties Australia (ASX Code: GOZ) Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409 www.growthpoint.com.au GROWTHPOINT G PROPERTIES USPP Investor Presentation - October 2018 836 Wellington Street, West Perth, WA#2Growthpoint Properties Australia: Overview GROWTHPOINT G PROPERTIES Who are we? Growthpoint (GOZ) is an ASX-listed landlord with a mandate to invest in Australian office, industrial and retail real property with a portfolio of 57 assets currently valued at A$3.4 billion¹. GOZ is included in the S&P/ASX 200 index (among other indices). GOZ is both the owner and the manager of the real properties (Growthpoint Properties Australia Trust). All properties are 100% owned by GOZ. Growthpoint Stapled Securities Properties Manager Australia Limited Growthpoint Properties Australia Trust Properties Our history GOZ commenced in its current form in 2009 with A$650 million of industrial property. It has grown and diversified to now own A$2.2 billion of office property (34%) and A$1.1 billion of industrial property (66%) in every Australian State and in the Australian Capital Territory. GOZ has a credit rating of Baa2 (stable) on senior secured debt from Moody's. What we do GOZ seeks to provide investors with long-term capital growth and a continually growing income stream with 100% of income derived from rent of properties owned and managed. How we do it GOZ acquires modern, well-located properties leased to high quality tenants and holds assets for the medium to long term. Key portfolio highlights¹ Industrial portfolio 31 Assets valued at $1,146.8 million Weighted average lease expiry (WALE) 5.3 yrs Office portfolio 26 Assets valued at $2,209.3 million Weighted average debt maturity (WADM) 5.0 yrs 99 99 60 98 98 56.1 97 2014 2015 2016 2017 2018 Portfolio occupancy (%) 33.9 25 2013 2018 Gearing (%) 1. May not sum due to rounding. Growthpoint Properties Australia USPP Investor Presentation | October 2018 1. As at 30 June 2018. 2#3Property Portfolio¹ At 30 June 2018 Office properties Industrial properties (number of assets) Office portfolio 98% Occupied 2 2 4 Industrial portfolio 99% Occupied 1. Figures may not sum due to rounding. 6% Western Australia $211.7m - Industrial $211.7m 6% South Australia $208.4m - Office $82.0m - Industrial $126.4m 8 16 1% Tasmania $26.7m - Office $26.7m Growthpoint Properties Australia USPP Investor Presentation | October 2018 2 87% of properties located on Eastern Seaboard 7 4 6 5 GROWTHPOINT G PROPERTIES 26% Queensland $876.9m - Office $632.0m - Industrial $244.9m 27% New South Wales $893.5m - Office $699.3m - Industrial $194.3m 5% Australian Capital Territory $167.5m - Office $167.5m 29% Victoria $971.4m - Office $601.8m - Industrial $369.6m 3#4Property Portfolio (continued) GROWTHPOINT G PROPERTIES Top ten tenants by passing rent as at 30 June 2018 per financial year, by income Tenant Credit WALE Portfolio lease expiry profile (%) 51 Annual rent review type (%) 2 as at 30 June 2018 WARR type rating¹ % (yrs) Woolworths Listed Baa2 15 4.5 NSW Police State Gov Aaa 9 5.9 Commonwealth of Australia Fed Gov Aaa 5 7.8 21 21 Country Road / David Jones Multi-national n/a 4 13.9 Linfox Private n/a 4 4.9 11 8 6 Samsung Electronics Listed A1 3 3.7 2 1 Lion Listed A3 3 5.8 Vacant FY19 FY20 FY21 FY22 FY23 FY24+ 8 1 7 17 3.3% O 67 Fixed 2.00-2.99% Fixed 3.00-3.99% Fixed over 4.00% CPI CPI +1.00% ANZ Banking Group Listed Aa2 2 1.7 Jacobs Group Listed n/a 2 7.0 Queensland Urban Utilities State Gov Aa1 2 4.8 Tenant type (%) by income as at 30 June 2018 TOTAL / Weighted Average 49 5.9 20 Listed company Balance of portfolio 51 4.7 Total portfolio 100 5.3 Government owned Private company & other 56 32 32 24 24 Tenant use (%) by income as at 30 June 2018 2 2 2 2 1 C Office Logistics/Distribution Manufacturing Retail Car Parking Other 1. Source: Moody's Investor Services. 2. Leases that have a minimum lease increase, typically 3%, or CPI are shown as the minimum fixed rate for the above. Growthpoint Properties Australia USPP Investor Presentation | October 2018 61 4#5Debt maturity profile ($m) At 30 June 2018 500 400 300 200 100 Bank debt Institutional term loan USPP Undrawn bank debt 150 50 120 200 345 250 200 GROWTHPOINT G PROPERTIES Bank debt / non-bank debt 55% / 45% Weighted average debt maturity (WADM) 5.0 years 130 78 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 Growthpoint Properties Australia USPP Investor Presentation | October 2018 5#6GROWTHPOINT G PROPERTIES Debt management and gearing Summary of debt facilities (as at 30 June 2018) Secured bank loans Limit Drawn Maturity Gearing target range $m $m 35%-45% Syndicated Facility - Facility B 100 100 Mar-23 - Facility C 245 245 Dec-21 - Facility D 70 70 Dec-21 Targeting Balance Sheet Gearing 55% 50% 45% 40% 35% - Facility E 150 100 Jun-23 fixed 30% - Facility G 150 30 Sep-21 65-100% - Facility I 75 25% Change in gearing and cost of debt (%) 65% 60% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 75 Nov-20 of drawn debt - Facility H 75 Sep-20 0% 0% Loan note 1 200 200 Mar-25 June 11 June 12 June 13 Currently Loan note 2 100 100 Dec-22 82% 56.1 45.6 46.5 June 14 40.3 June 15 June 16 June 17 June 18 36.3 41.2 38.5 33.9 Loan note 3 60 60 Dec-22 7.7 7.3 6.7 5.8 4.8 4.1 4.3 4.4 Fixed bank facility 1 90 90 Dec-22 USPP 1 130 130 Jun-27 USPP 2 52 52 Jun-29 ICR (as at 30 June 2018) USPP 3 26 26 Jun-29 Total loans 1,523 1,203 4.0 Weighted average fixed debt maturity Gearing of 4.0x 4.1 4.1 4.2 3.5 3.0 2.9 All-in cost of debt 2.0 5.5yrs 33.9% 4.4% Growthpoint Properties Australia USPP Investor Presentation | October 2018 1.0 1.6x 0 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 6 - All-in cost of debt#7SW1, South Brisbane QLD Appendices#8GROWTHPOINT G Portfolio of well-located metro/CBD-fringe office properties Sydney - Parramatta and Sydney Olympic Park Melbourne - Richmond and South Melbourne PROPERTIES Brisbane – South Brisbane (SW1) and Fortitude Valley 1KM Sydney CBD Parramatta, NSW - $310.0m, 1 property Sydney Olympic Park, NSW - $265.8m, 4 properties 500M Melbourne CBD South Melbourne, VIC -$190.0m, 1 property Richmond, VIC -$151.6m, 3 properties MINI 500ML Brisbane CBD South Brisbane, QLD - $358.0m, 5 properties Fortitude Valley, QLD - $144.0m, 1 property • Parramatta/Sydney Olympic Park vacancy rate 7.5% (versus Sydney CBD 4.8%) Average net face rent -$470sqm (versus CBD $1,100sqm) • Melbourne fringe vacancy rate 6.0% (versus Melbourne CBD 4.0%) • Average net face rent ~$440sqm (versus CBD $580sqm) Fortitude Valley and South Brisbane vacancy rate 13.0% (versus Brisbane CBD 13.9%) • Average gross face rent -$550sqm (versus CBD $730sqm) Growthpoint Properties Australia USPP Investor Presentation | October 2018 8#9GROWTHPOINT G Major infrastructure investment to benefit non-CBD markets PROPERTIES VIC - Office Melbourne Metro Rail VIC - Industrial CityLink - - Tullamarine widening, West Gate Tunnel NSW - Office West Connex, Sydney Light Rail, Second Sydney Airport, Sydney Metro - City and Southwest NSW - Industrial West Connex 75 Dorcas St, South Melbourne 101-111 South Centre Road, Melbourne Airport 40 Annandale Road, Melbourne Airport 75 Annandale Road, Melbourne Airport 1 Charles St, Parramatta $190.0m 120 Link Road, Melbourne Airport 60 Annandale Road, Melbourne Airport 130 Sharps Road, Melbourne Airport 3 Murray Rose Ave, Sydney Olympic Park 5 Murray Rose Ave, Sydney Olympic Park 9-11 Drake Boulevard, Altona Building C, 219-247 Pacific Highway, Artarmon 102 Bennelong Parkway, Sydney Olympic Park $139.6m $699.3m ~$1.2bn of Growthpoint property to benefit directly from planned transport infrastructure investment Growthpoint Properties Australia USPP Investor Presentation | October 2018 27-49 Lenore Drive, Erskine Park 51-65 Lenore Drive, Erskine Park 6 Parkview Drive, Sydney Olympic Park 6-7 John Morphett Place, Erskine Park $149.8m 9#10333 Ann Street, Brisbane QLD Contact details: Daniel Colman - Investor Relations Manager Email: [email protected] Phone: +61 401 617 167 Growthpoint Properties Australia Level 31, 35 Collins Street Melbourne VIC 3000 www.growthpoint.com.au