Highlights. Commonwealth Property Office Fund (CPA) Quarterly update to 31 March April Solid result in a challenging environment

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1 Commonwealth Property Office Fund (CPA) Quarterly update to 31 March April 2013 Highlights Solid result in a challenging environment 96.2% occupancy 1 4,382 sqm of space leased or renewed WALE years 16,394 sqm terms agreed Rent reviews executed over 104,043 sqm 4.5% average uplift on rent reviews Post period end Acquisition of 201 Kent Street Executed first right of refusal on 25% interest to increase share to 50% Asset with solid fundamentals Immediately accretive to earnings Upgrade to distribution guidance Distribution guidance for FY13 upgraded to 6.55cpu 3 from 6.40cpu 750 Collins Street, Melbourne 1. By income. Including terms agreed, occupancy was 96.4%. 2. By income. 3. Assuming no performance fee is payable for the full 12-month period, the Fund s taxable income is no more than 6.55 cents per unit and there is no unforeseen material deterioration in existing economic conditions. 2

2 Portfolio update Further 25% Key leasing metrics stake acquired in April 201 Kent Street, Sydney Acquisition Purchase price $77.3 million Immediately accretive CPA now controls 50% stake in asset 3 Portfolio update Limited short-term lease expiry risk Property Tenant Area (sqm) Income Expiry Progress Major vacancies 225 George Street, Sydney - 12, Currently marketing 10 Eagle Street, Brisbane - 3, Four floors marketing 60 Castlereagh Street, Sydney - 2, Marketing level 11 and part floors 1 and Pitt Street, Sydney - 3, Marketing levels 1, 2, 16 and various suites Other vacant space 5, Includes 1,111 sqm terms agreed and executed leases Total current vacancy 27, Remainder of FY13 Major expiries remaining in 2H Other 7, Total expiry for the remainder of 2H13 7, FY Bourke Street, Melbourne Commonwealth Bank 18, Nov 2013 Marketing 108 North Terrace, Adelaide SA Government 20, Feb ,000 sqm agreed for two major tenants 60 Castlereagh Street, Sydney BNP Paribas 8, Jun 2014 Negotiating 222 Lonsdale Street, Melbourne Telstra 18, Jun 2014 Preliminary discussions 180 Lonsdale Street, Melbourne BHP Billiton 10, Sep 2013 Marketing 180 Lonsdale Street, Melbourne NAB 7, Sep 2013 Marketing Other expiries 33, Total FY14 expiry 116,

3 Valuations Generally stable 7.6% weighted average capitalisation rate Evidence for cap rate compression emerging 655 Collins Street, Melbourne CPA s March 2013 valuations Property CPA share New valuation by ownership ($m) Variance to book value by ownership ($m) Change Prior capitalisation rate New capitalisation rate 60 Castlereagh Street, Sydney, NSW George Street, Burwood, NSW (2.4) (4.5) Lonsdale Street, Melbourne, VIC Office: 7.32 Retail: 7.25 Office: 7.50 Retail: Southbank Boulevard, Melbourne, VIC Eagle Street, Brisbane, QLD (6.0) (2.9) Includes QV retail, car park and creche. CPA owns 100% of the creche. 5 Australian office markets Conditions likely to remain challenging in near term Short term Long term Demand Weak labour market and business conditions are likely to constrain expansionary tenant activity in the near term Leading indicators point to improvements from 2014 onwards Supply Supply levels to remain moderate in the short term Sydney, Perth and Brisbane are forecast to have stronger supply from with several large projects already underway Vacancy Supply expected to outweigh demand, which will see the national vacancy rate peak in 2013 before improving from 2014 onwards Rents Limited rental growth outlook with incentives expected to remain elevated Strongest rental growth anticipated in the resource markets (Perth and Brisbane) followed by Sydney Yields Australian office property continues to provide good value, leading to increased levels of interest by offshore investors Increased potential for cap rate compression in

4 Capital management Debt expiry staggered and diversification maintained Debt maturity profile ($m) Gearing 27.7% 1 Interest cover ratio 2 4.5x Average cost of debt 5.4% 1 Sources of debt % 7% 38% FY13 FY14 FY15 FY16 FY17 FY18 Beyond 14% 13% Bank Debt USPP CBs^ MTNs STNs 1. As at 31 March 2013 and including the post-period acquisition of 201 Kent, Sydney and the tapping of $60 million of December 2019 medium term notes. 2. As at 31 March ^ Convertible notes have an investor put option in December Martin Place, Sydney Key development metrics Office NLA Retail GLA Total area 31,280 sqm 2,580 sqm 33,860 sqm Estimated cost 1 $215m CPA cost to complete $160m Target year-one initial yield >7% Target internal rate of return >10% Early works commenced Jun 2012 Project completion Early Including land, construction costs, incentives and an allowance for finance costs. Premium-grade building targeting high sustainability credentials 44% of office space (by area) leased to Ashurst 5 Martin Place, Sydney 8

5 Summary and outlook Forward focus Continuing to deliver on strategy CPA is well positioned with solid occupancy metrics despite office markets remaining challenging over the short term The Fund is focused on delivering major projects: Development of 5 Martin Place, Sydney Refurbishment of 180 Lonsdale Street and 385 Bourke Street in Melbourne Committed to addressing current vacancies and upcoming lease expiries ahead of time Upgraded FY13 distribution guidance to 6.55cpu 1 from 6.40cpu, and continue to target a payout ratio of ~75% 225 George Street, Sydney 1. Assuming no performance fee is payable and the Fund s taxable income is no more than 6.55 cents per unit and there is no unforeseen material deterioration to existing economic conditions. 9 Further information For further information please contact: Charles Moore Angus McNaughton Fund Manager Managing Director, Property Commonwealth Property Office Fund Colonial First State Global Asset Management Phone: Phone: chmoore@colonialfirststate.com.au amcnaughton@colonialfirststate.com.au Investor and media contacts: Penny Berger Mathew Chandler Head of Investor Relations and Communications Investor Relations and Communications Manager Colonial First State Global Asset Management Colonial First State Global Asset Management Phone: or Phone: or pberger@colonialfirststate.com.au mathewchandler@colonialfirststate.com.au About Commonwealth Property Office Fund CPA is an office sector-specific Australian Real Estate Investment Trust (A-REIT) which invests in prime quality office property located in central business districts and major suburban markets across Australia. The Fund is managed by entities within CFSGAM Property on behalf of more than 22,000 investors from 22 countries. At 31 March 2013, the Fund comprised 26 assets with a total asset value of $3.8 billion. About CFSGAM Property CFSGAM Property is the specialist property division of Colonial First State Global Asset Management, and is one of the largest real estate fund managers in Australia with $17 billion in funds under management. CFSGAM Property offers a fully integrated real estate investment platform including investment management, asset management, development management, origination and execution. CFSGAM Property manages a suite of wholesale investment products, as well as three listed real estate investment trusts in Australia and New Zealand. 10

6 Disclaimer Neither Commonwealth Bank of Australia (the Bank ) ABN nor any of its subsidiaries guarantees or in any way stands behind the performance of the Commonwealth Property Office Fund (CPA) ARSN or the repayment of capital by CPA. Investments in CPA are not deposits or other liabilities of the Bank or its subsidiaries, and investment-type products are subject to investment risk including possible delays in repayment and loss of income and principal invested. The information contained in this presentation (the Presentation ) is intended to provide general advice only and does not take into account your individual objectives, financial situation or needs. You should assess whether the Presentation is appropriate for you and consider talking to a financial adviser or consultant before making an investment decision. All reasonable care has been taken in relation to the preparation and collation of the Presentation. Except for statutory liability which may not be excluded, no person, including Commonwealth Managed Investments Limited (the Responsible Entity ) ABN , Colonial First State Property Limited ABN or any other member of the Bank s group of companies, accepts responsibility for any loss or damage howsoever occurring resulting from the use of or reliance on the Presentation by any person. Past performance is not indicative of future performance and no guarantee of future returns is implied or given. Copyright and confidentiality The copyright of this Presentation and the information contained therein is vested in the Responsible Entity, the Bank and the Bank s group of companies. This Presentation should not be copied, reproduced or redistributed without prior consent. 11