QUARTERLY UPDATE FOR PERIOD ENDING 30 JUNE 2018 FUND FACTS FUND HIGHLIGHTS PORTFOLIO UPDATE PORTFOLIO SUMMARY

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1 (ARSN ) QUARTERLY UPDATE FOR PERIOD ENDING 30 JUNE 2018 All data is at 30 June 2018 unless otherwise stated. FUND HIGHLIGHTS Distribution of 2.10 cents per Unit Portfolio occupancy had a marginal decrease to 98% The Fund s Weighted Average Lease Expiry (WALE) is 6.8 years PORTFOLIO UPDATE Capital management During the period, the Fund announced a distribution of 2.10 cents per Unit, representing an annualised distribution yield on invested capital of 5.3%. 1 Asset management Marketfair Campbelltown maintained full occupancy this quarter, supporting the overall performance of the centre. The renewal of the Chemist Warehouse lease during the quarter increased the weighted lease expiry of the centre to five years. Costi s Famous Fish was the most recent tenant to complete an upgrade to its fitout, which improves the centre s ambience. Asset management initiatives remained high on the agenda for the centre, with work continuing towards improving energy efficiency by upgrading the LED lighting and installing rooftop PV panels. The management team has been working in conjunction with designers to resolve car parking inefficiencies by reviewing the cost benefit of introducing a car parking deck. In addition, this quarter saw the introduction of a reverse vending machine to the centre, denotive of the team s Corporate Social Responsibility drive. Management has also been working alongside the adjoining land owners to assess the longerterm development of a residential precinct. FUND FACTS KEY FUND DETAILS Inception June 2014 Structure Sector Currency NTA per Unit $ Gross assets Unlisted unit trust Australian commercial property AUD (unhedged) $181.8 million Weighted average lease expiry 6.8 years Gearing ratio 37.3% Distribution frequency ONGOING FEES 3 Responsible Entity fee Fund Manager fee Trustee fee Property Manager fee Performance fee Quarterly 0.08% pa 0.69% pa 0.1% pa 3% pa of the gross income of the Trust 20% with hurdle rate of 10% pa 1 Distribution yield based on initial offer price, adjusted for special distributions. 2 Unaudited. 3 Excluding GST. For more information on fees and costs associated with the Fund, please refer to Section 4 of the Product Disclosure Statement dated 23 May DISTRIBUTIONS ANNOUNCED (LAST 12 MONTHS) June 2018 March 2018 December 2017 September cents per unit 2.10 cents per unit 2.06 cents per unit 2.06 cents per unit PORTFOLIO SUMMARY PURCHASE DATE OCCUPANCY (%) COST (INCL. CAPEX) ($m) VALUE ($m) Birkdale Fair, QLD Mar-15 98% Hilton Plaza, SA Aug % 21.1* 20.0 Marketfair, NSW Aug % Newtown Central, NSW Apr-15 94% Northpoint, QLD Sep-14 97% Total 98% *Includes capital expenditure incurred in the December 2017 half year of $0.6 million, not reflected in the asset value. 1 FORT STREET REAL ESTATE CAPITAL FUND I QUARTERLY UPDATE FOR PERIOD ENDING 30 JUNE 2018

2 WEIGHTED AVERAGE LEASE EXPIRY (BY GROSS INCOME) 60% 50% 40% 30% 20% 10% 0% MARKETFAIR CAMPBELLTOWN COSTI S FAMOUS FISH At Newtown Central, occupancy remained consistent with the previous quarter at 94%. The performance of Foodworks has continued to enhance overall centre sales, demonstrating the convenient nature of the location. The key project underway at the current time for the management team is the proposed cosmetic upgrade, with a view on improving overall aesthetic of the centre to bring it up to a standard in line with the expectations of the local demographic. The refurbishment is also expected to generate positive leasing outcomes for the centre, allowing active precinct of retailers to create designated services and fresh runs in the mall. The management team has also been exploring the future highest and best use of the site, given its close proximity to the train station. Although occupancy at Northpoint Shopping Centre decreased marginally to 97% during the quarter, centre performance remained resilient. This vacancy provided the management team the opportunity to devise an appropriate leasing strategy for precincts and activation of the centre over the long term. At Birkdale Fair, occupancy remained stable for the quarter at 98%. The newly refurbished Woolworths set a new benchmark for fit-outs in the centre and continued to drive sales growth for Woolworths during the quarter. Furthermore, a click and collect facility has been installed for the supermarket, enhancing the convenience offering of the centre. A key asset management project underway is the installation of additional shade sails to the rear of the carpark. The objective of this will be to ensure that the entire carpark is appropriate for Queensland weather in order to attract the best possible customer base. Occupancy at Hilton Plaza remained at 100%, following positive leasing results during the previous quarter. The key deal of note this quarter was the lease renewal of the medical surgery, which is currently occupied by an established operator with a loyal local following. Now that full occupancy has been achieved, management is focusing attention on upcoming renewals in order to drive rental growth and encourage retailers to upgrade their fit-outs to meet the new benchmarks established in the centre. Furthermore, additional upgrades to mall ambience are being implemented which are likely to improve dwell time, spend and global centre performance. REAL ESTATE MARKET UPDATE Retail Australian retail turnover growth stabilised at 2.7% during the second quarter of 2018 (2Q18). NSW and Victoria continued to outperform other states in terms of retail spending growth, underpinned by strong economic fundamentals. The Westpac Melbourne Institute Index of Consumer Sentiment delivered an increase of 3.9% in July, demonstrating a clear improvement from the previous month. The majority of this improvement came from a balancing of growth across the states, as a stabilising mining sector is driving recovery in Queensland and WA.1 Discretionary retail spending continued to come under pressure from inflation and soft wage growth, affecting household disposable income. Conversely, non-discretionary spending categories, which is where the Fort Street retail portfolio is focused, continued to dominate performance with general food, restaurants, and takeaway food retailing all recording steady growth over the current and previous quarters. As the lifestyle in Australia evolves, there becomes a greater need for convenience-based shopping centres. This is primarily being catalysed by increasing residential density in urban areas, demand for convenience from time-poor consumers and increasing competition from mixed-use developments.2 Tenant mix strategies are maturing, including expanded fresh food offerings, additional services, food and beverage, and entertainment. Rental growth remained consistent with previous quarters, with neighbourhood and sub-regional centres recording marginal rental growth on the eastern seaboard. Tenant mix changes have been a key lever for driving rental growth, particularly by reducing exposure to fashion tenancies and increasing the volume of nondiscretionary tenants. This is in line with the Fund s overall strategy to target non-discretionary retail in order to reduce risk and drive returns. 2 FORT STREET REAL ESTATE CAPITAL FUND I QUARTERLY UPDATE FOR PERIOD ENDING 30 JUNE 2018

3 Office The latest NAB Business Survey continued to indicate positive sentiment in the office sector, driven by robust business conditions across most states and industries. Employment experienced a hiatus in growth, however, this is expected to be temporary, with the ANZ Job Advertisement Series (May) rebounding over the month to be 11.5% higher than the preceding 12 months. 5 Sydney CBD recorded positive net absorption of approximately 50,000 sqm during 2Q18, driven by strong tenant demand and growth of white collar employment. As a result of positive tenant demand and negative net supply, Sydney has experienced a supply drought, with vacancy declining to record lows of 4.6%. Prime gross effective rents are therefore forecast to increase by 12.3% over FY17/18. The supply and demand imbalances in the CBD have also bolstered the performance of sub-markets across Sydney. In Melbourne, demand remained positive, with vacancy forecast to decline to below 5%. Victoria recorded the strongest employment growth across Australia, which helped drive the current tenant demand in Melbourne. 6 Prime gross effective rents are forecast to increase by 2.7% during 2Q18, with the new supply pipeline coming into effect from In other national markets, demand has been more subdued. Brisbane and Canberra are expected to experience a negative net absorption in 2Q18. Small and mid-sized organisations are most active in Adelaide, whilst the outlook for Perth is improving, impacted by positive sentiment in the resource sector. Prime office assets remained highly sought after by investors, with many CBD assets particularly in Sydney and Melbourne remaining tightly held. Rental growth expectations for these areas remain firm, with investors having the confidence to underwrite positive reversions. In the first half of 2018, the national office market will record transaction volumes of approximately $5.8bn as investors become more competitive for assets. 7 As a result, yields have compressed approximately 12.5 bps for high-quality assets in Sydney and Melbourne. Brisbane has also experienced a compression in yields, with investment activity dominated by off-shore investors. 8 Meanwhile, improving economic conditions in Perth have attracted the attention of counter-cyclical investors seeking to capitalise on an improving leasing market, however, a large degree of caution is still required. Industrial The industrial market continued to perform well, with supply and demand forecast to increase over the next 12 months. Key drivers of the market were significant investment into infrastructure, changes in planning and zoning regimes, a sustained low interest environment and international retailers seeking to expand their brands into Australia. The growth of e-commerce and changing consumer behaviours have become both an opportunity and a challenge for the industrial market. 9 Rents in 2Q18 remained relatively stable in the Sydney and Melbourne markets after witnessing some growth in the previous financial year. Meanwhile, improvements in the Brisbane and Perth markets were seen over the quarter. The national prime average weighted net face rent grew by its strongest quarterly rate (1.0%) in two years, now at $115 per sqm. Leasing activity was predominantly driven by tenants who preferred to be in proximity to major roads and infrastructure, with most activity being directed at existing assets (63%). Construction activity over the quarter remained steady, with 340,000 sqm of developments reaching practical completion 48% of which were in Sydney, demonstrating the current strength of the Sydney industrial market. Speculative development has become more common in buoyant markets such Sydney and Melbourne where underlying tenant demand is present. Total transactions volume reached $832m in 2Q18 a very strong quarter for the market. This was driven largely by the Sydney market, which represented more than half of the transactions. Yields are forecast to compress to cyclical lows in the later part of the year, with tightening already slowing. In turn, this will also result in capital value appreciation being more subdued. There continues to be strong investor demand for industrial product, with many prime land parcels and assets being tightly held. Market sentiment is expected to remain positive for the short term as well as for demand, which will be driven by the merchandise trade, construction and logistics sectors. Notes: 1 Westpac Institute Index of Consumer Sentiment Westpac (2018) 2 M3 Commentary Shopping Centres M3 (2018) 3 Briefing National Retail Savills (2018) 4 Australia National Category Retail Report JLL (2018) 5 Australia Office Preliminary Overview 2Q18 JLL (2018) 6 Melbourne CBD Office Market Overview Knight Frank (2018) 7 Australia National Preliminary Overview JLL (2018) 8 Brisbane CBD Office Knight Frank (2018) 9 M3 Commentary National Industrial M3 (2018) TOP TENANTS (BY GROSS INCOME) Woolworths (including BWS) 20% Wesfarmers 9% Fitness First Australia 5% TK Maxx 5% FoodWorks 4% GEOGRAPHIC DIVERSIFICATION (BY CURRENT VALUE) QLD NSW SA SECTOR DIVERSIFICATION (BY CURRENT VALUE) Retail 47% 11% 100% 87% 42% 3 FORT STREET REAL ESTATE CAPITAL FUND I QUARTERLY UPDATE FOR PERIOD ENDING 30 JUNE 2018

4 INVESTMENT TEAM MEMBERS ABOUT WALSH & COMPANY Walsh & Company is a multibillion-dollar global funds management firm founded in 2007, with assets under management across global equities, residential and commercial property, private equity, fixed income, and sustainable and social investments. David Rogers Director, Investments Walsh & Company Investments Limited is the Responsible Entity of the Fund and is a wholly owned subsidiary of the Walsh & Company Group. RISKS Jason Hay Head of Asset Management Like all investments, an investment in the Fund carries risks which may result in the loss of income or principal invested. In addition to the general risks of investing, specific risks associated with investing in the Fund include, but are not limited to, substantial uncommitted funds, illiquidity risk, potential decline in property values, gearing, vacancy and tenant default risk. For further information about the risks of investing in the product, please refer to Section 4 of the Product Disclosure Statement dated 23 May FUND CONTACTS Richard Hunt Chairman, Fort Street Real Estate Capital INVESTMENT OBJECTIVE The Fund aims to provide investors with attractive and stable rental income through exposure to a portfolio of Australian-based commercial property assets and potential for capital growth over the long term. ABOUT THE FORT STREET REAL ESTATE CAPITAL FUND SERIES Fort Street Real Estate Capital is an experienced specialist in property investment and asset management, with the ability to draw upon extensive networks to help access opportunities, as well as manage and reposition assets. The Fort Street Real Estate Capital executives have more than 50 years combined experience in real estate. Their extensive knowledge in this sector has assisted them to transact more than $2 billion of commercial property in recent years. Adam Coughlan Head of Distribution T: (02) E: adam.coughlan@walshandco.com.au QLD/WA Emmanuel Vergara Key Account Manager T: (07) E: emmanuel.vergara@walshandco.com.au VIC/SA/TAS Charlie Wapshott Key Account Manager T: (03) E: charlie.wapshott@walshandco.com.au NSW Reuban Siva Business Development Manager T: (02) E: reuban.siva@walshandco.com.au Fort Street Real Estate Capital targets real estate opportunities with strong underlying rental income and the potential for long-term capital growth through value-add opportunities or repositioning potential. 4 FORT STREET REAL ESTATE CAPITAL FUND I QUARTERLY UPDATE FOR PERIOD ENDING 30 JUNE 2018

5 IMPORTANT INFORMATION This document relies on actual property data from JLL Research current as at 30 June 2018 (unless otherwise stated). This commentary has been produced solely as a general guide and does not constitute advice. JLL, its officers and/or its employees shall not be liable for any loss, liability, damage or expense arising directly or indirectly from any use or disclosure of or reliance on such information. This Quarterly Update (Update) has been prepared by Fort Street Real Estate Capital as Investment Manager of Fort Street Real Estate Capital Fund II (Fund). An investment in the Fund is subject to various risks, many of which are beyond the control of the Investment Manager and the Fund. The past performance of the Fund is not a guarantee of the future performance of the Fund. This Update contains statements, opinions, projections, forecasts and other material (forward-looking statements), based on various assumptions. Those assumptions may or may not prove to be correct. None of the Investment Manager and the Fund, their officers, employees, agents, analysts nor any other person named in this Update makes any representation as to the accuracy or likelihood of fulfilment of the forward-looking statements or any of the assumptions upon which they are based. This Update may contain general advice. Any general advice provided has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider the appropriateness of the advice with regard to your objectives, financial situation and needs, and consider obtaining advice from a financial advisor. You should obtain a copy of the relevant PDS or offer document before making any decisions to purchase the product. 5 FORT STREET REAL ESTATE CAPITAL FUND I QUARTERLY UPDATE FOR PERIOD ENDING 30 JUNE 2018