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1 20 February 2017 Charter Hall Retail REIT FY17 Half Year Results

2 Agenda 1 FY17 Half Year Results 2 Financial Performance 3 Operational Performance 4 Strategy and Outlook Scott Dundas Fund Manager Christine Kelly Head of Retail Finance and Deputy Fund Manager 2

3 FY17 Half Year Results

4 Key Achievements Half Year Ended 31 December 2016 Same property NOI growth of 2.4% NTA per unit up 8.2% to $ % increase in portfolio value to $2.71 billion Total divestments of smaller non-core centres of $72 million Balance sheet gearing of 32.1% Total acquisitions of $67 million Divestments calculated at 100% values 4

5 Consistent Delivery on Strategy Highlights Strategy Achievements Active management Stable occupancy at 98.0% Same property NOI growth of 2.4% Specialty rent growth of 1.2% achieved from 64 renewals and 31 new leases reflecting continued focus on specialty leasing Majors MAT growth of 2.8% and specialty MAT growth of 1.6% Enhancing the portfolio quality Prudent capital management Portfolio valued at $2.71 billion, a 6.5% increase over the period Focus on recycling capital from non-core properties to larger, expected higher growth properties Acquired Arana Hills in 1H 17 for $67.1 million at a yield of 6.0% Disposed of three non-core properties for $72.2 million 1, at an average yield of 5.6% 1 Redevelopment at Secret Harbour expected to complete in May 2017 Lake Macquarie and Mount Hutton redevelopment approval due February 2017 Increasing debt diversity for the REIT Introduced another new bank lender to the REIT Weighted average debt maturity of 6.0 years Balance sheet gearing of 32.1%, at the lower end of the target range of 30% - 40% Look through gearing of 35.3%, in the middle of the target range 1. Values at 100% share 5

6 Half Year Results 31 December 2016 Key metrics 1H 17 1H 16 Movement Statutory profit $178.9m $104.4m +71.4% Operating earnings 1 $61.7m $58.9m +4.8% Operating earnings 1 per unit cents cents +0.2% Distributions per unit cents cents +0.7% Payout ratio % 92.2% +0.5% Total return % 14.1% +3.1% Dec 16 Jun 16 Movement Net tangible assets per unit $4.10 $ % Property portfolio $2,714.5m $2,549.7m +6.5% Balance sheet gearing 32.1% 32.0% +0.1% Look through gearing 35.3% 35.9% -0.6% Weighted average debt maturity 6.0 years 6.2 years -3.2% Cash and undrawn debt capacity $128m $151m -15.2% 1. Operating earnings is a financial measure which represents the net profit under Australian Accounting Standards adjusted for certain unrealised and non-cash items, reserve transfers, capital transactions and other non-core items. Operating earnings is equivalent to the Property Council definition of Funds from Operations 2. Calculated on a cents per unit basis 3. Calculated as distributions plus NTA growth for the 12 month period divided by NTA at 31 December

7 Financial Performance Prudent Capital Management

8 Operating Earnings and Distributions 1H 17 operating earnings in line with market guidance Sub-regional - same property NOI growth of 2.4% offset by the timing of the early sale of Caboolture and late acquisition of Arana Hills during the period Neighbourhood - same property NOI growth of 2.7% primarily a result from larger neighbourhood centres that dominate their catchment Freestanding - same property NOI growth of 1.3% JV Income has increased due to the acquisition of Bateau Bay Net finance costs and Other expenses have remained stable during the period $m 1H 17 1H 16 Net property income Sub-regional Neighbourhood Freestanding Net income from joint ventures Net finance costs 1 (14.1) (14.1) Other expenses (6.7) (6.7) Operating earnings Operating earnings per unit (cents) Distribution per unit (cents) Payout ratio 93% 92% 1. Excludes debt drawn in joint venture entities, finance costs relating to these debt facilities are included in net income from joint ventures 8

9 Balance Sheet Properties under management increased due to: Development and capital expenditure totalling $42 million Acquisitions net of disposals of $26 million Revaluation uplift of $96 million Total debt has increased due to acquisitions and capital expenditure offset by disposals Other liabilities have decreased primarily due to FX revaluations on USPP and offset by derivative movements NTA growth from positive revaluations across the portfolio (+24cpu), retained operating earnings (+1cpu) and positive derivative valuation movements (+5cpu) Look through gearing is in the middle of the target range of 30%-40% Dec 16 Jun 16 Wholly owned properties 2,324 2,170 Debt (832) (769) JV properties JV Debt (134) (152) Other assets Other liabilities (98) (110) Net assets 1,667 1,532 Units on issue (millions) NTA per unit ($) Balance sheet gearing 32.1% 32.0% Look through gearing 35.3% 35.9% All values presented on a look through basis and net of cash. Debt excludes any foreign currency revaluation. 9

10 Debt Maturity Profile Weighted average debt maturity of 6.0 years Strong diversity of debt sources Extended weighted average hedge maturity to 4.4 years Refinanced $100 million of FY19 maturities and increased liquidity by a further $50 million RP1 JV bank debt is at an advanced stage of extension to FY22 Key metrics Dec 16 Jun 16 Average interest cost 1 4.1% 4.3% Weighted average debt maturity 6.0 years 6.2 years Weighted average hedge maturity 4.4 years 4.0 years Interest rate hedging 2 69% 72% ICR 4.5x 4.5x Debt Maturity Profile 3 USPP Non-recourse JV bank debt Bi-lateral Bank Debt Facilities Syndicated Bank Debt Facility Undrawn 1. Includes line fee (including cost of undrawn debt) and usage fee and excludes amortisation of upfront debt costs 2. For the next 12 month period 3. Pro-forma post refinance of JV bank debt 10

11 Operational Performance Active Management & Enhancing the Portfolio Quality

12 Portfolio Summary Summary by Asset Type # Value ($m) GLA ( 000sqm) Occupancy 1 NOI Growth Same Property Sub-regional shopping centres % 2.4% Neighbourhood shopping centres 36 1, % 2.7% Freestanding supermarkets 16 1, % 1.3% Total 72 2, % 2.4% Portfolio and anchor WALE of 7.0 and 10.7 years WALE NT 1% SA 6% Vic 10% Asset Value by State Tas 1% WA 15% NSW & ACT 47% 4.0 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Anchor Portfolio Qld 20% 1. Excludes properties under redevelopment WALE calculated by weighting the REIT s share of base rent 12

13 Anchor Tenants Wesfarmers and Woolworths businesses represent 50% of base rent 39% from Supermarkets and Liquor 11% from Discount Department Stores 35% of anchor tenants are paying turnover rent 21% are within 10% of their turnover threshold Woolworths Wesfarmers Australian Pharmaceutical Industries* Top ten tenants by base rent 25.9% 24.4% 1.7% Anchor tenant MAT growth of 2.8% 1 Total turnover rent represents 2.2% of total net rent Anchor Tenant MAT Growth 1 3.5% 3.0% 2.5% 2.0% 1.5% The Reject Shop Retail Food Group** Commonwealth Bank Pretty Girl Fashion Group*** Bakers Delight Specialty Fashion Group**** 1.5% 1.1% 0.9% 0.8% 0.8% 0.7% 1.0% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 MAT Growth YoY (%) St. George Bank 0.6% *including Soul Pattinson, Priceline **including Brumby s, Donut King, Michel s Patisserie ***Including Rockmans, Be Me and W Lane ****Including Crossroads, Millers, Katies, Autograph, City Chic 1. Calculated on a 12 month rolling basis for stores in turnover, excluding redevelopments 13

14 Specialty Tenants Summary by State and Location MAT Growth 1 Occupancy Cost 1 MAT/sqm Occupancy Cost and Specialty Sales New South Wales & ACT 1.4% 11.3% $8,959 Queensland 6.8% 7.1% $10,881 Victoria 2.4% 12.1% $7,675 South Australia (3.8%) 10.1% $7,003 Western Australia (4.9%) 8.9% $8,751 Metropolitan 3.9 % 11.7% $9,253 Non-Metropolitan 0.1% 8.7% $8,973 Total 1.6% 9.9% $9,085 Average specialty gross rent $901/sqm Weighted average rent reviews of 4.1% pa Total specialty rent growth of +1.2%: +0.5% on 64 renewals +2.9% on 31 new leases Specialty retention rate of 86% National specialty retailers represent 59% of the REIT s specialty tenants Diverse range of specialty retailers 10.00% $9, % $9, % $9, % 9.60% $9, % $8, % $8, % $8, % $8, % 9.00% $8, % $8,400 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Occupancy Cost Sales Per Square Metre Retention Rate 90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70% Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Retention Rate 1. 59% of the REIT s specialty tenants by ABR have reported sales for 24 months 14

15 Revaluations 100% of the stabilised portfolio was externally revalued Property valuations increased by $96.8 million representing 3.7% growth over the whole portfolio Weighted average cap rates continued to firm at December 2016, with half year compression of 31 basis points driving NTA growth for the REIT Six months to December 2016 Freestanding Neighbourhood Sub-regional Total Number of properties Dec 2016 valuation ($m) , , ,714.5 Prior book value 1 ($m) , , ,617.7 Movement in book value 2 ($m) Variance (%) 4.1% 3.9% 3.4% 3.7% Weighted avg cap rates December % 6.47% 6.41% 6.40% Weighted avg cap rates June % 6.76% 6.73% 6.71% 1. Represents June 2016 book value adjusted for capital expenditure, acquisitions and disposals over the period 2. Excludes acquisition costs of $0.2 million and revaluation adjustments relating to straightlining of rental income, amortisation of lease incentives and capitalisation of leasing fees 15

16 Capital Transactions Capital Recycling Strategy of enhancing the REIT s portfolio quality by recycling out of lower growth non-core smaller properties into larger, higher growth properties Requirement that all assets are the dominant convenience based shopping centre within their catchment Average asset value has increased from $39.7 million at June 2016 to $43.3 million at December 2016 GLA (sqm) Value $m Yield Settlement Acquisitions Arana Hills Plaza, QLD 16, % December 2016 Total 16, % Disposals Pakington Strand, Vic. 5, % October 2016 Caboolture Square, QLD 15, % November 2016 Moe-Kmart, Vic. 6, % December 2016 Total 27, % 16

17 Developments Major Projects Redevelopment Pipeline - $345m FY17 FY18 FY19 FY20 FY21 Erindale I $35m 28 Albany I $9m 27 Dubbo I $8m 21 Sydney Street Markets (Stage 2) $7m 21 Carnes Hill I $100m 19 Bateau Bay I $19m 16 Allenstown I $31m Wanneroo I $22m Lake Macquarie I $55.3m Secret Harbour I $58.9m Underway Opportunities Based on construction start and completion dates 17

18 Sustainability and Community CQR has focused on sustainability and community elements across our business operations Retail Green Star Performance rating for all centres commenced and are expected to be complete by June 2017 All centres over 15,000sqm now have a NABERS rating with weighted average NABERS rating of 3.8 for energy and 3.5 for water Lake Macquarie Fair redevelopment targeting 4 Star Green Star Design and As Built Rating Climate change risk assessments undertaken on all CQR properties Piloted NANOsure and Skycool technology to enhance operational efficiencies in shopping centres with NANOsure technology being trialed in collaboration with Woolworths on their air conditioning units Secret Harbour development partnered with Surf Lifesaving WA to raise $20,000 for a new boat and ongoing community programs Other community initiatives include continued support of the Cancer Council and providing The Garden at Allenstown being a community play area for children utilised by the local Council 18

19 Strategy and Outlook

20 REIT Strategy Goal The leading owner and manager of Australian supermarket anchored shopping centres, providing a secure and growing income stream for our investors Active management Enhance portfolio quality Prudent capital management Key drivers Maintaining strong tenant relationships Optimising tenancy mix through proactive leasing Value enhancing redevelopment Selective acquisitions Non-core disposals Strong and flexible balance sheet Prudent gearing Sustainable payout ratio Enhancing the overall shopper experience 20

21 Retail Environment ABS retail trade grew by 3.6% over the rolling year to November 2016 which is below long term averages Australian retail sales was highly divergent across states with depressed sales recorded in WA as a result of the struggling economy. Victoria and NSW continue to outperform albeit at a slowing rate Our expectation is for continued improvement from Woolworths and challenging trading conditions for specialty retailers Annual Sales Growth 10% Total Supermarkets Clothing & Department Stores 8% 6% 4% 2% 0% -2% -4% Annual Growth Rates Retail Trade (Nov-16) Emp Growth (Nov-16) Pop. Growth (Jun-16) 5% 4% 3% 2% 1% 0% -1% NSW VIC QLD SA WA Source: ABS 21

22 FY17 Outlook Consistent with strategy, sale proceeds from divestments will be allocated to optimise returns via acquisitions, development, buy back or return of capital We reconfirm that, barring unforeseen events, the REIT s FY17 guidance for operating earnings is expected to be 30.4 cents per unit Distribution payout ratio range is expected to be between 90% and 95% of operating earnings Currimundi, QLD

23 Questions

24 Annexures 1 Detailed Earnings 25 2 Funds from Operations (FFO) 26 3 NTA & Cash flow Reconciliation 27 4 Debt & Interest Rate Management 28 5 Capital Expenditure & Developments 29 6 Lease Expiry Profiles 31 7 Property Valuations 32 8 Typical Lease Structures 36 9 Historical Performance Glossary 38 24

25 Annexure 1 Detailed Earnings (All Values in $m) Dec 2016 Statutory Profit Share of profits from investment in JV s Net property income Dec 2016 Unrealised & Capital Items Dec 2016 Operating Earnings Dec 2015 Operating Earnings Sub-regional Neighbourhood Property valuation gains 20.7 (20.7) - - Gain on disposal of investment properties 3.0 (3.0) - - Finance costs (3.4) - (3.4) (2.7) Net unrealised gain on derivative financial instruments 1.3 (1.3) - - Other expenses (0.4) 0.1 (0.3) (0.1) Total 32.8 (24.7) Net property income Sub-regional Neighbourhood Freestanding Property valuation gains 76.2 (76.2) - - Loss on disposal of investment properties (0.1) Other income Net unrealised gain on derivative financial instruments 18.2 (18.2) - - Management fees (5.4) - (5.4) (5.1) Finance costs (14.1) - (14.1) (14.1) Trust expenses (1.3) (0.1) (1.4) (1.7) Earnings (117.2) Operating earnings per unit (cents) Distribution per unit (cents)

26 Annexure 2 Funds from Operations (FFO) 1H 17 ($m) 1H 17 (cpu) Statutory Profit Revaluation increment on investment properties (97.1) (23.94) Revaluation decrement on investment properties attributable to acquisition costs Gain on sale of investment properties (2.9) (0.71) Net gain on derivative financial instruments (19.5) (4.81) Write off capitalised borrowing costs related to extinguished debt facilities Other Funds from Operations (FFO) / Operating Earnings Less: Operational capex (4.1) (1.01) Less: Lease incentives (1.0) (0.25) Adjusted Funds from Operations (AFFO) Distribution

27 Annexure 3 NTA per unit reconciliation $4.10 $ NTA at 30 Jun 2016 Operating earnings (net of distribution) Derivative MtM movement Property revaluation uplift Other NTA at 31 Dec 2016 Operating earnings to operating cash flows reconciliation $61.7m ($0.2m) $61.5m Operating earnings 1H 17 Change in working capital balances Net cash flows from operating activities 1H 17 27

28 Annexure 4 Debt and Interest Rate Management Debt maturities & covenants Post refinance initiatives (All Values CQR Share) Limit (A$m) Drawn (A$m) Rate Maturity Financial Covenants Covenant Actual JV debt CHRP Floating Jul-18 LVR ICR 55.0% 2.0x 32.4% 3.1x JV debt CHRP Floating Oct-20 LVR ICR 60.0% 1.5x 42.7% 3.5x Syndicated bank debt facility Floating $50m Jul-18 $285m Jul-20 Bi-lateral bank debt facilities Floating USPP May Floating May-26 $50m Feb-21 $150m Jul-22 LVR ICR 50.0% 2.0x 39.4% 4.5x USPP July Floating Jul-27 Grand total 1, Interest rate risk management 2H 17 FY18 FY19 FY20 Weighted average hedge book (A$m) Weighted average debt margin 2 1.7% 1.7% 1.7% 1.7% Weighted average hedge rate 2.4% 2.2% 2.2% 2.2% 1. Documentation underway to refinance this facility to a $110 million limit (CQR share) with a March 2022 maturity 2. Excludes line fee on undrawn debt and assumes all debt refinanced at constant margin at maturity 28

29 Annexure 5 Capital Expenditure ($m, CQR Share) Operational Lease Incentives Total Maintenance and Incentives Redevelopment 1H FY FY

30 Annexure 5 Current and Completed Projects Enhancing Portfolio Quality Project Project cost ($m) Stabilised Completion Description Status Yield 1 Secret Harbour Shopping Centre, WA % May 17 New 4,050sqm Coles supermarket, new 1,550sqm Aldi, new 1,225sqm Dan Murphy s, expansion of the existing Woolworths by 400sqm, new 650sqm mini major, addition of approximately 3,700sqm of specialty space, one new pad site location and creation of new on grade car parking Construction commenced January Woolworths launched their expanded and refurbished store in December The Aldi tenancy has been handed over and they are currently fitting out. Project completion is scheduled for late May 2017 Lake Macquarie Fair, NSW % Jul 18 Demolition of Mount Hutton Plaza and construction of new 4,200sqm Coles and associated specialty stores to integrate with Lake Macquarie Fair DA lodged in May 2016, the JRPP meeting was held 19 January 2017 however, determination was deferred pending additional information. Approval expected February Tender closed 17th October 2016, negotiations are advanced with a preferred Principal Contractor Various % Minor projects works at Dubbo, Goulburn, Southgate and Bateau Bay Total % 1. Redevelopments typically achieve stabilised yield 12 months following completion (depending on prevailing market conditions) Completion dates are forecast only All values represent CQR s ownership share 30

31 Annexure 6 Lease Expiry Profile Anchor tenant expiry WALE 10.7 years Portfolio WALE of 7.0 years 80% 70% 60% 50% 40% 30% 20% 10% 0% 30% 0.0% 2.8% 0.9% 2.9% 10.5% 7.4% 8.2% 2.9% 64.4% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25+ 25% Specialty tenant expiry WALE 3.2 years 20% 15% 10% 7.8% 19.7% 16.3% 14.0% 16.4% 12.0% 5% 5.5% 5.0% 3.3% Excludes properties under redevelopment WALE and lease expiry profile calculated by weighting the REIT s share of base rent 0% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY23 FY24+ 31

32 Annexure 7 Property Valuations as at 31 December 2016 Book Value State Property Location Asset Type Interest % ($m) Cap Rate ACT Dickson Woolworths Dickson Freestander 100% % Erindale Shopping Centre Wanniassa Neighbourhood 100% % Manuka Terrace Manuka Neighbourhood 100% % ACT Total NSW Balo Square Moree Neighbourhood 100% % 1. Asset currently classified as redevelopment All values represent CQR ownership share Bateau Bay Square Bateau Bay Sub-regional 47.5% % Carnes Hill Marketplace Horningsea Park Sub-regional 50% % Cooma Woolworths Cooma Freestander 100% % Cootamundra Woolworths Cootamundra Freestander 100% % Dubbo Square Dubbo Sub-regional 100% % Earlwood Coles Earlwood Freestander 100% % Goonellabah Village Goonellabah Neighbourhood 100% % Gordon Village Centre Gordon Neighbourhood 100% % Goulburn Square Goulburn Sub-regional 100% % Highlands Marketplace Mittagong Sub-regional 50% % Jerrabomberra Village Jerrabomberra Neighbourhood 100% % Kings Langley Shopping Centre Kings Langley Neighbourhood 100% % Lake Macquarie Fair 1 Mount Hutton Sub-regional 100% 68.3 n/a Morisset Shopping Centre Morisset Neighbourhood 100% % Mount Hutton Plaza 1 Mount Hutton Neighbourhood 100% 10.7 n/a Mudgee Metroplaza Mudgee Neighbourhood 100% % Narrabri Coles Narrabri Freestander 100% % Orange Central Square Orange Neighbourhood 100% % Parkes Metroplaza Parkes Neighbourhood 100% % 32

33 Annexure 7 Property Valuations as at 31 December 2016 State Property Location Asset Type Interest % Book Value ($m) Cap Rate NSW Pemulwuy Marketplace Greystanes Neighbourhood 50% % Rosehill Woolworths Rosehill Freestander 100% % Rutherford Marketplace Rutherford Neighbourhood 50% % Singleton Plaza and Square Singleton Sub-regional 100% % Sunnyside Mall Murwillumbah Neighbourhood 100% % Tamworth Square Tamworth Sub-regional 100% % Thornleigh Marketplace Thornleigh Neighbourhood 50% % Tumut Coles Tumut Freestander 100% % West Ryde Marketplace West Ryde Neighbourhood 50% % Young Woolworths Young Freestander 100% % NSW Total 1,159.3 NT Katherine Central Katherine Sub-regional 100% % NT Total 30.0 Qld Albany Creek Square Brisbane Neighbourhood 100% % Allenstown Square Rockhampton Neighbourhood 100% % Arana Hills Plaza Brisbane Sub-regional 100% % Atherton Square Atherton Neighbourhood 100% % Bribie Island Shopping Centre Bribie Island Sub-regional 100% % Coomera Square Coomera Neighbourhood 100% % Currimundi Markets Currimundi Neighbourhood 100% % Gatton Square Gatton Neighbourhood 100% % Gladstone Square Gladstone Neighbourhood 50% % Bay Plaza Hervey Bay Neighbourhood 100% % Kallangur Fair Kallangur Neighbourhood 100% % Mareeba Square Mareeba Neighbourhood 100% % All values represent CQR ownership share 33

34 Annexure 7 Property Valuations as at 31 December 2016 State Property Location Asset Type Interest % Book Value ($m) Cap Rate Moranbah Fair Moranbah Neighbourhood 100% % Springfield Fair Springfield Neighbourhood 100% % Sydney Street Markets 1 Mackay Neighbourhood 100% 49.7 n/a Qld Total SA Brickworks Marketplace Torrensville Sub-regional 50% % Renmark Plaza Renmark Sub-regional 100% % Southgate Plaza 1 Morphett Vale Sub-regional 100% 70.6 n/a Wharflands Plaza Port Augusta Sub-regional 100% % SA Total TAS Newstead Coles Newstead Freestander 100% % Smithton Woolworths Smithton Freestander 100% % Wynyard Woolworths Wynyard Freestander 100% % TAS Total 26.5 Vic Bairnsdale Coles Bairnsdale Freestander 100% % Kerang Safeway Kerang Freestander 100% % Kyneton Shopping Centre Kyneton Neighbourhood 100% % Lansell Square Kangaroo Flat Sub-regional 100% % Moe Coles Moe Freestander 100% % Rosebud Plaza Rosebud Sub-regional 100% % Vic Total Asset currently classified as redevelopment All values represent CQR ownership share 34

35 Annexure 7 Property Valuations as at 31 December 2016 State Property Location Asset Type Interest % Book Value ($m) Cap Rate WA Albany Plaza Albany Sub-regional 100% % Carnarvon Central Carnarvon Neighbourhood 100% % Esperance Boulevard Esperance Neighbourhood 100% % Kalgoorlie Central Kalgoorlie Neighbourhood 100% % Maylands Coles Maylands Freestander 100% % Narrogin Coles Narrogin Freestander 100% % Secret Harbour Shopping Centre 1 Secret Harbour Neighbourhood 100% 72.0 n/a South Hedland Square South Hedland Sub-regional 100% % Swan View Shopping Centre Swan View Neighbourhood 100% % Wanneroo Central Wanneroo Sub-regional 50% % WA Total Total CQR Portfolio 2, Asset currently classified as redevelopment All values represent CQR ownership share 35

36 Annexure 8 Typical lease structures Attributes vary across different leases however key characteristics of supermarket and specialty leases are outlined below: Supermarket tenant leases Specialty tenant leases Lease term years with options Typically average 5 years Rent Base rent + % of turnover over threshold ( %) Base rent with fixed/cpi increases at an average of 4.1% p.a. Recovery of outgoings Typically gross leases, recover increase in statutory charges Net leases Average GLA 3,469 sqm 120 sqm (incl. Mini majors) Average gross rent $330/sqm $901/sqm 36

37 Annexure 9 CQR Australian portfolio historical performance Proven and consistent performance over time Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Number of properties Occupancy 98.7% 98.6% 98.5% 98.2% 98.2% 98.5% 98.5% 98.4% 98.4% 98.0% 98.0% Same property NOI growth 3.5% 3.5% 3.0% 2.8% 2.5% 2.0% 3.4% 2.4% 2.4% 2.2% 2.4% Anchor tenant MAT growth 4.6% 4.4% 4.5% 3.7% 3.6% 3.7% 2.2% 1.0% 1.2% 1.7% 2.8% Specialty rent growth 4.1% 4.9% 3.7% 3.1% 3.3% 2.6% 2.0% 1.5% 1.4% 1.4% 1.2% Renewals 5.1% 5.9% 3.7% 3.5% 1.5% 2.8% 1.8% 1.9% 0.4% 1.0% 0.5% New leases 3.1% 3.7% 3.7% 2.4% 7.5% 2.0% 2.6% 0.1% 4.3% 3.0% 2.9% Number of leasing transactions Average specialty gross rent psqm $719 $689 $728 $737 $770 $776 $813 $812 $849 $891 $901 Average specialty sales psqm $8,100 $8,107 $8,091 $8,246 $8,354 $8,642 $8,658 $8,741 $9,020 $9,173 $9,085 Average specialty occupancy costs 8.2% 8.5% 8.9% 8.9% 9.2% 9.0% 9.4% 9.3% 9.4% 9.7% 9.9% 1. Includes non-comparable new lease deals that do not impact specialty rent growth 37

38 Annexure 10 Glossary ABR: Annual base rent base rent only, excludes outgoings and turnover rent GLA: Gross lettable area Gross rent: Base rent and outgoings MAT: Moving annual turnover calculated as a sum of rolling 12 month sales Occupancy cost: Calculated as the sum of actual gross rent and percentage rent divided by actual sales for the 12 months ended 31 December 2016 Rental rate growth: Percentage movement in base rent on new lease and renewal transactions Specialty retail categories: Leisure: includes music and games, newsagents, books and sport tenancies Services: includes hairdressers, drycleaners, optometrists, gyms and other retail services General retail: includes discount variety stores, gift shops and florists Stabilisation period: Redevelopments typically achieve stabilised yield 12 months following completion (depending on prevailing market conditions) 38

39 Further Information Scott Dundas Fund Manager Charter Hall Retail REIT T: scott.dundas@charterhall.com.au Christine Kelly Head of Retail Finance & Deputy Fund Manager Charter Hall Retail REIT T: christine.kelly@charterhall.com.au Philip Cheetham Head of Listed Investor Relations Charter Hall T: philip.cheetham@charterhall.com.au 39

40 Important Notice Charter Hall Retail Management Limited ABN ; AFSL ( CHRML ) has issued this presentation in its capacity as the responsible entity of Charter Hall Retail REIT ARSN ( CQR or the REIT ). This presentation has been prepared for general information purposes only and is not an offer or invitation for subscription or purchase of, or recommendation of, securities. It does not take into account any potential investors personal objectives, financial situation or needs. Before investing, you should consider your own objectives, financial situation and needs or you should obtain financial, legal and/or taxation advice. CHRML does not receive fees in respect of the general financial product advice it may provide, however it will receive fees relating to the management of CQR which, in accordance with CQR s constitution, are calculated by reference to the value of the assets and the performance of CQR. Entities within the Charter Hall Group may also receive fees for managing the assets of, and providing resources to CQR. For more details on fees, see CQR s latest annual report. The information contained in this presentation has been prepared by CQR in good faith. No representation or warranty, express or implied, is made as to the accuracy, adequacy, reliability or completeness of any statements, estimates, opinions or other information contained in this presentation, any of which may change without notice. This includes, without limitation, any historical financial information and any estimates and projections and other financial information derived from them (including any forward-looking statement). Nothing contained in this presentation is, or may be relied upon, as a promise or representation, whether as to the past or the future. To the maximum extent permitted by law, CQR (including its respective unitholders, shareholders, directors, officers, employees, affiliates and advisers) disclaim and exclude all liability for any loss or damage suffered or incurred by any person as a result of their reliance on the information contained in this presentation or any errors in or omissions from this presentation. This presentation contains information as to past performance of CQR. Such information is given for illustrative purposes only, and is not and should not be relied upon as an indication of future performance of CQR. The historical information in this presentation is, or is based upon, information contained in previous announcements made by CQR to the market. These announcements are available at This presentation contains certain forward looking statements. Forward looking words such as expect, should, could, may, will, believe, forecast, estimate and other similar expressions are intended to identify forward-looking statements. Such statements are subject to various known and unknown risks, uncertainties and other factors that are in some cases beyond CQR's control. These risks, uncertainties and factors may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements and from past results, performance or achievements. CQR cannot give any assurance or guarantee that the assumptions upon which management based its forward-looking statements will prove to be correct or exhaustive beyond the date of its making, or that CQR's business and operations will not be affected by other factors not currently foreseeable by management or beyond its control. Such forward-looking statements only speak as at the date of this announcement and CQR assumes no obligation to update such information. All information contained herein is current as at 31 December 2016 unless otherwise stated. All references to dollars ($) are to Australian dollars, unless otherwise stated. 40

41 Sydney Head Office Level 20, No.1 Martin Place, Sydney, NSW, 2000 T: Melbourne Level 18, 570 Bourke Street, Melbourne VIC 3000 T: Brisbane Level 22, Northbank Plaza, 69 Ann Street, Brisbane QLD 4000 T: Perth Level 5, St Georges Square, 225 St Georges Terrace, Perth WA 6000 T: Adelaide Suite 604, 147 Pirie Street, Adelaide SA 5000 T: