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1 Challenger Diversified Property Group (ASX: CDI) Results presentation for full-year ended 30 June 2011 Trevor Hardie, Fund Manager Tim Evans, Assistant Fund Manager 9 August

2 Important notice Information contained in this publication is current as at 9 August 2011 unless otherwise specified and is provided by Challenger Listed Investments Limited (ABN ) (AFSL ) ( Challenger ), as Responsible Entity of the Challenger Diversified Property Trust 1 (ARSN ) and the Challenger Diversified Property Trust 2 (ARSN ) which together comprise the Challenger Diversified Property Group ( Group ). This document has been prepared for general information purposes only and not with regard to any particular recipient s financial situation, objectives or needs nor to solicit offers or invitations for the Group's securities. Nothing contained in this document constitutes investment, legal, tax or other advice. Accordingly, recipients should, before acting on any information in this document, consider its appropriateness, having regard to their objectives, financial situation and needs, and seek the assistance of their financial or other licensed professional adviser before making any investment decision. Challenger makes no representation, gives no warranty and does not accept any responsibility for the accuracy or completeness of any recommendation, information or advice contained herein. To the maximum extent permitted by law, the recipient releases Challenger, each member of the Challenger Group, their directors, officers, employees, representatives and advisors from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or loss or damage arising by negligence) arising in relation to any recipient relying on anything contained in or omitted from this document. Past performance is no guarantee or assurance as to the future performance, profitability or capital value of the Group or its securities. Any forward looking statements included in this document are by nature subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, Challenger, so that actual results or events may vary from those forward looking statements, and the assumptions on which they are based. Challenger, or persons associated with it, may have an interest in the securities or financial products mentioned in this document and may earn fees including as a result of transactions in any such securities or financial products. 2

3 Results overview Operating results Statutory net profit after tax: $51.5 million Profit from operating activities: $44.4 million; net property income: $61.9 million FY11: EPU cpu, DPU 4.0 cpu Net tangible assets (NTA): 67 cpu Pro forma balance sheet gearing at 27.1% 2 Buyback as at 8 August ~10m shares bought back at an equivalent property yield of 9.3% FY12 guidance: EPU: 4.7 cents per unit (cpu); DPU: 4.1 cpu Property metrics improving Occupancy: 93.7%; WALE: 5.0 years Investment property valuations up $18.3 million on 30 June 2010 Bridge the unit price to NTA gap grow earnings Enhance the composition of the property portfolio Increase occupancy Active capital management 1 EPU calculated using profit from operating activities and weighted average units on issue 2 Pro-forma balance sheet gearing post receipt of Pacific Brands settlement proceeds & payment of 2H11 distribution in Aug

4 Challenger Diversified Property Group Diversified property trust with focus on office income High yielding quality earnings underpinned by sound property fundamentals Continuing domestic focus Alignment with Challenger KEY DATA CDI 30 June 2011 Unit price 8 August day VWAP 51.8 cents Market capitalisation $470 million Total assets 30 June 2011 $876 million Net tangible assets 30 June cents Discount to NTA Based on 8 August day VWAP 23.2% Distribution guidance FY12 (per unit) 4.10 cents DPU yield Based on 8 August day VWAP and FY12 DPU guidance 7.9% 4

5 CDI outperforms the index Significant outperformance against benchmark over all periods Unitholder total return of 14.21% for FY2011 Total return (as at 30/6/2011) 1 month (%) 3 month (%) 6 month (%) FY11 (%) 2 year (%) p.a 3 year (%) p.a 4 year (%) p.a. Inception (%) p.a. CDI Accum Index 3.7% 16.4% 14.1% 14.2% 21.4% 4.9% -5.0% -2.3% ASX 200 Prop Accum Index -0.7% -0.5% 3.3% 5.8% 12.9% -9.7% -17.3% -12.9% Relative performance 4.4% 16.9% 10.8% 8.4% 8.5% 14.7% 12.3% 10.6% Source: S&P, IRESS 5

6 Strategy 187 Todd Rd Port Melbourne, Vic 6

7 CDI strategic objectives Portfolio enhancement Active capital management Grow earnings Improve lease metrics Fund objective to provide investors with exposure to a diversified portfolio of properties generating stable income returns and potential for capital growth Close the price to NTA gap 7

8 Executing on portfolio enhancement strategy Sold at 8% premium to book Reweighted exposure to Melbourne CBD Total sales of $42m at a 8% premium to book Sales represent an equivalent yield of 8.1%, despite vacancies and impending expiries Reduced exposure to purpose built properties Continue with the orderly sale of the French properties Purchased 31 Queen St for $81m in March 2011 Purchased on an equivalent yield of 8.2% Enhances the quality of CDI s portfolio providing Melbourne CBD exposure, lifting asset quality, and supporting diversification of income with reduced reliance on single-tenanted properties 8

9 31 Queen St Acquisition 31 Mar Jun 11 Value $81.0m $86.5m Occupancy 86.8% 92.5% Equivalent yield 8.2% 8.1% Property has outperformed acquisition model assumptions Melbourne face rents are increasing and incentives falling Lease expiry profile and current vacancy provides opportunity to capture up-side 40% 30% 20% 10% Artist s impression of new façade treatment Lease Expiry Profile (by income) 16.3% 15.7% 11.7% 12.5% 7.5% 36.2% 0% Vacant Jun-12 Jun-13 Jun-14 Jun-15 Jun-16+ 9

10 Jam Factory repositioning Total spend of $16m (100%) estimated yield on cost of ~9% On completion valuation uplift from $104m to $123m Repositioning includes First Urban by Target, specialising in inner city fashion, opening end of August Well known international fashion group, to open first Australian outlet in part of Borders ex-tenancy Creation of new food court Expected completion June

11 The Junction Industrial Park Secured 10 year lease pre-commitment with Bunzl Stage 2 GLA Lease term Incremental cost Initial income yield on cost (including land) 20,200 sqm 10 yrs $20.6m 8.15% Target completion June 2012 Value on completion $34.0m Seeking 12,560 sqm pre-commitment for stage 3 (final stage) Forecast incremental cost for stage 3 - $13.4m Artist s impression 11

12 Development to enhance portfolio Capitalising on latent value Development Spend Targeted income yield on cost Targeted completion The Junction Stage 2 $20m 8.15% Completion June 2012 The Junction Stage 3 $13m 8.15% Subject to securing precommitment Jam Factory repositioning $10m* 9% Completion June 2012 Innaloo expansion $8m* ~8.5% Subject to planning and major ~3,500m 2 tenant pre-commitments Total $51m Developments to be funded through a combination of asset sales and debt Maintain strategic balance sheet gearing at ~30% * CDI share of spend 12

13 Results Highlights 31 Queen St Melbourne, VIC Artist s impression of new façade treatment 13

14 Operating results Statutory NPAT: $51.5 million compared to $15.5 million FY10 Profit from operating activities, $44.4 million; FY11 earnings 1 : 4.9 cpu FY11 distribution of 4.0 cpu NTA per unit 67cents up 1 cent on FY10 Distribution payout ratio for FY11: 82% 2 FY11 $ million FY10 $ million Net property income Financing costs Profit from operating activities Earnings 1 per unit Net profit/(loss) after tax (including unrealised impacts) Cash flow from operating activities Distribution to unitholders Distribution per unit (cents) Operating profit distribution payout ratio % 80.0% AFFO 3 distribution payout ratio 96.7% 92.0% 1. EPU calculated using profit from operating activities 2. Calculated as distribution to unitholders / profit from operating activities 3. AFFO: available funds from operations 14

15 FY12 earnings and distribution guidance EPU guidance of 4.7 cpu Guidance includes: Allowance for reletting assumptions Anticipated sale of remaining French assets by December 2011 Continuation of buyback DPU guidance of 4.1 cpu; payout ratio: 87% Increased forecast FY12 leasing costs and maintenance CAPEX funded by prior years undistributed income 15

16 Capital Management The Forum, Verizon St Leonards, NSW 16

17 On market buyback Continue 10% buyback subject to NTA, earnings accretion and the most efficient use of capital Management believe units are currently undervalued The buyback will partially mitigate dilution from strategic sale of French assets Current buyback metrics Total of 9.95m units bought back to date (1% of issued capital) Average vwap of cents compared to market VWAP of cents Purchased at 20% discount to NTA, equivalent to property acquisition of 9.3% Purchased 14% of total market volume Program funded through combination of debt and asset sales 17

18 $m Facility expiry profile Successfully executed refinance of all existing tranches Facility limit increased to $280m Weighted average term of debt extended to 3 years Undrawn $46m to fund committed developments and buyback 30 June 2011 pro forma expiry profile $90 $100 $46 $ Jul-12 Jul-13 Jul-14 Jul-15 Expiry Drawn Undrawn 1. Pro-forma debt post Pacific Brands settlement proceeds & payment of 2H11 distribution in August

19 Debt metrics Average cost of Australian drawn debt post refinance 7.0% includes average margin of 182 bps on drawn debt Weighted average undrawn commitment fee: 100 bps Pro forma 30 June AUD denominated borrowings Euro denominated borrowings Total Borrowings A$182m A$52m 1 A$234m Gearing (debt to total assets) (%) Covenant gearing (total liabilities to total tangible assets) (%) Proportion hedged (%) Weighted average hedged term (yrs) Average cost of drawn debt (including margin) (%) Weighted average undrawn commitment fee (%) A$ / spot rate of as at 30 June 2011; net of deferred borrowing costs 2. Post settlement of Pacific Brands and payment of the final 2H11distribution in August

20 Portfolio Performance ABS House Belconnen,ACT 20

21 State of play 2011 Office Tenant enquiry levels have increased but remain patchy. Tenant retention rates remaining high. Incentive levels have peaked; early signs of contraction are apparent in Melbourne and Perth. Prime yields are expected to firm further as opportunities to acquire prime assets remain scarce. Industrial Supply levels continue to remain lower than the long term averages. Pre-commitment levels are stronger. Limited prime industrial stock remains available and prime yields are expected to firm further with no positive movement in secondary yields. Cinema Stable cinema performance in Digitalisation roll out and enhancement of cinema experience continuing. Yields expected to remain stable. 21

22 Portfolio overview 30 June 2011 Key portfolio metrics Occupancy 93.7% (Dec 10: 91.5%); WALE 5.0 years (Dec 10: 4.8 years) Domestic focus 93.5% Australian; continuing orderly disposal of French portfolio Australian portfolio French portfolio Total portfolio Total investment property portfolio $m Number of properties Portfolio weighting (by value) % Net lettable area sqm 330,129 42, ,697 Average age of properties years Occupancy % WALE years Weighted average capitalisation rate % NABERS energy rating 3.6 star weighted average (applicable to rated buildings) 22

23 Portfolio revaluations at 30 June 2011 All properties revalued as at 30 June; 59% (by value) independently revalued Investment property valuations up $18.3m, up 2.2% from FY10 Market capitalisation rates firmed from 8.29% to 8.21% French portfolio value up 1.6% excluding currency movements Currently trading on an implied cap rate of 9.7% Carrying value ($m) As at 30 Jun 11 Market cap rate As at 30 Jun 11 Market cap rate As at 30 Jun 10 Domestic office portfolio % 8.09% Domestic retail portfolio % 8.39% Domestic industrial (distribution centres) % 9.23% Domestic industrial (high tech) % 8.85% TOTAL DOMESTIC PORTFOLIO % 8.32% French portfolio % 7.87% TOTAL % 8.29% 1. Converted at 30 June 2011 spot rate (0.738) 23

24 Leasing activity FY11 Office Lease deals - 14 Area 15,047 sqm Rent $5.9m Retail Lease deals - 27 Area 7,644 sqm Rent $3.5m Industrial Distribution Lease deals - 3 Area 48,327 sqm Rent $5.6m Total Lease deals - 47 Area 75,156 sqm Rent $15.8m (18.1% of CDI portfolio gross income) Industrial - High Tech Lease deals - 3 Area - 4,137 sqm Rent $0.9m 24

25 % Expiry by gross income Lease expiries Investment portfolio 93.7% occupied WALE 5.0 years Strong progress made on June 12 expiries, down from 9.9% as at Dec 10 60% 59.1% 50% 40% 30% 20% 10% 6.3% 6.2% 11.8% 6.0% 10.6% 0% Vacant Jun-12 Jun-13 Jun-14 Jun-15 Jun

26 Diversification enhances portfolio quality - High sector weighting to office Sector diversification (by value) 6% 63% 14% As at 30 June % Geographic diversification (by value) 2% 3% 3% 7% 25% NSW ACT VIC QLD 17% Office Retail Industrial - DC Industrial - HT 28% 26% SA WA TAS France Tenant diversification by type (by gross income) 3% 23% 34% Government Listed Multi International Private 33% Tenant credit rating (by gross income) (Challenger internal ratings based on rating agency methodology) 4% 8% 25% 15% AAA AA+ A- BBB+ BBB- BB+ B- CCC+ D NR 40% 15% 26

27 % of gross income Tenant industry diversification 34% of CDI portfolio leased to government tenants Well diversified across industry types Top 20 tenants 1 Ranking Tenant Name Tenant Industry Asset(s) % Of Total Contracted Portfolio Gross Income 1 ABS Government ABS House 9.5% 2 Village Cinemas Cinema Jam Factory, CCW, Innaloo 6.8% 3 DIAC Government DIAC Building 6.5% 4 IP Australia Government Discovery House 6.0% 5 Elders Diversified Elder House 3.1% 6 Toll Distribution Toll Drive 3.1% 7 Taylors Education Taylors House 3.0% 8 Greater Union Cinema Jam Factory, CCW, Innaloo 2.9% 40% 35% 30% 25% 20% 15% 10% 5% 0% Industry Representation representation 33.6% 16.9% 10.3% 9.7% 7.1% 5.3% 4.4% 4% 3.6% 3.6% 1.5% 9 State of Tasmania Government Executive Building 2.8% 10 Cisco Systems IT The Forum, Cisco 2.7% 11 KW Doggett & Co Pty Ltd Distribution The Junction, Stage 1 2.2% 12 Titan Warehousing Distribution Foray St 2.0% 13 Rexel Australia Limited Retail Rexel 1.9% 14 State of Qld (Qld Police) Government Makerston House 1.9% 15 Inteva Manufacturing Inteva 1.9% 16 Spotlight Stores Pty Ltd Retail Spotlight 1.9% 17 FlexiRent Financials The Forum, Cisco 1.8% 18 Pacific Brand Manufacturing Pacific Brands 1.5% 19 Tourism Queensland Government Makerston House 1.5% 20 Oxiana Limited Mining 31 Queen Street 1.5% 64.2% 1. Rent annualised as at 30 June

28 Summary DIAC Building Belconnen ACT 28

29 Summary Operating results on target FY11 earnings and distribution of 4.9 and 4.0 cpu delivered Net tangible assets (NTA): 67 cpu Pro forma balance sheet gearing at 27.1% Property metrics improving Investment property valuations up $18.3 million from 30 June 2010 Occupancy: 93.7%; WALE 5.0 years Execute on strategy - closing the gap by growing earnings Portfolio enhancement strategy Active capital management Improve leasing metrics FY12 guidance EPU: 4.7 cents; DPU: 4.1 cents 29

30 Contacts Trevor Hardie Fund Manager Tel: + 61 (0) thardie@challenger.com.au Website Tim Evans Assistant Fund Manager Tel: + 61 (0) tevans@challenger.com.au 30

31 Appendices

32 Distribution policy CDI s distribution policy is to distribute accounting profit earned from operating activities adjusted for non-cash expenses, straight-line rent, incurred and expected: leasing costs, debt establishment fees and capital expenditure to maintain the investment properties, subject to the ongoing objective to distribute an amount which results in CDI not being subject to income tax. Realised impacts from the sale of assets will be distributed on a discretionary basis which will be determined with regard to capital management strategies, market conditions and tax consequences. On average in any year, the income distributed will represent approximately 80-85% of operating profit earned before write downs. 32

33 Management Management agreements published on website Management expense ratio: 91.1 bps 1 (includes 25bps performance fee for FY11) Management fees: Fee type Base management fee Calculation From 1 July 2010, 0.5% of gross assets of CDPG per annum, payable in cash. Performance fees 5% of first 2% out performance against S&P/ASX200 property accumulation index, and 15% of any out-performance thereafter, capped at 0.25% of gross assets per annum (capped with no carry forward) Transactional fees are payable only for offshore acquisitions/divestments as detailed in the PDS. No fees are payable on domestic acquisitions/divestments. For full details refer to the CDI PDS, Constitution and Management Agreement at www/challenger.com.au/cdi 1 Excludes non-recurring legal costs and calculated on average total assets during FY11 33

34 $m Hedge profiles Interest rate hedges $ A denominated hedges CDI AUD hedge profile 8% 7% Notional Hedge rate Maturity date $25m 4.57% Oct 2011 $15m 4.83% April % 5% 4% 3% 2% $40m 5.37% Feb 2014 $25m 5.11% April Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 1% 0% $20m 5.10% June 2014 $12.5m % Oct 2015 Hedged debt Weighted average hedge rate $12.5m % Oct 2015 $40m 5.07% Feb 2016 Half year ending Income hedges AUD/EUR $10m 7.40% July 2018 Euro denominated hedges 31 December Notional Hedge rate Maturity date 10m 4.08% Sept Forward start hedges commence October

35 Lease expiry profile (by gross passing income) 12.00% 11.8% 0.78% ATAC (France) 10.00% 1.21% Excel (France) 8.00% 3.10% Toll Properties 6.00% 6.3% 1.57% The Forum, Verizon 6.2% 1.92% Rexel 1.13% 1.49% Jam Factory, Village Offices Makerston House, Tourism Qld 4.00% 1.37% 75 Talavera Rd 1.14% Foray St 1.40% 31 Queen St, Oxiana Limited 2.00% 0.00% 1.62% 187 Todd Rd 1.72% 31 Queen St 0.88% 0.08% 0.79% 31 Queen St 0.63% Retail 1.77% 0.92% Minor vacancies 0.80% Minor Expiries Vacant FY 11/12 FY 12/13 Foray St Retail Minor Expiries 35

36 Rent review profile provides built-in growth Significant weighting to fixed and indexed rental reviews over next three years 74% of portfolio subject to rental reviews in FY12 Rent review profile (by income) FY12 FY13 FY14 25% 23% 18% 7% 3% 7% 7% 2% 2% Review type FY12 rental proportion (%) Rent reviews Fixed 55% Average 3.5% CPI 10% Last CPI 3.6% a 55% 57% 64% French CCI 7% Last CCI 3.05% b Market 2% n/a Total 74% 10% 10% 9% a. June 2011ABS All Cities b. French Cost of Construction Index average for 12 months to Q No Review in Period (incl. New Leases) & Other FCCI Market Review Fixed Review CPI Review 36

37 Value ($m) Value ($m) CDI investment portfolio diversification Geographic Sector Diversification $300 $250 $200 25% 26% 28% $150 $100 $50 5% 3% 3% 2% 7% - NSW ACT VIC QLD SA WA TAS France Office Retail Industrial-DC Industrial - High Tech $600 $500 63% Sector Geographic Diversification $400 $300 $200 $100 17% 14% 6% - Office Retail Industrial-DC Industrial - High Tech NSW ACT VIC QLD SA WA TAS France 37

38 Income statement Property income 30 June June 2010 $ 000 $ 000 Rental income 70,267 72,819 Other property income 9,530 9,132 Less: Property related expenses (17,879) (17,378) Net property income 61,918 64,573 Operating business income Income from operating business activities 7,576 6,445 Less: Expenses from operating business activities (6,272) (5,795) Net profit/(loss) from operating business 1, Other income Interest income Other gains/(losses) Net gain/(loss) on development property 2,501 (1,151) Other trust expenses Finance costs (8,612) (10,243) Responsible Entity s and Manager s fees (6,268) (4,609) Operating expenses (2,224) (1,485) Net operating result 49,015 48,021 Fair value movement of derivatives closed out during the year - (7,787) Fair value movement of derivatives held at the end of the year 1,276 8,393 Fair value movement of investment properties sold during the year (253) (70) Fair value movement of investment properties held at the end of the year 2,418 (33,338) Foreign exchange gain/(loss) (173) 130 Net profit/(loss) before tax 52,283 15,349 Income tax (expense)/credit (795) 186 Net profit/(loss) after income tax 51,488 15,535 38

39 Reconciliation of profit Reconciliation of net profit after tax to profit from operating activities 30 June June 2010 $ 000 $ 000 Net profit after tax attributable to unitholders of CDI 51,488 15,535 Adjusted for: Straight-lining of rental (income)/expense (2,188) (1,840) Property, plant and equipment depreciation Net (gain)/loss on development property (2,501) 1,151 Fair value movements (of properties and derivatives held and disposed) (3,441) 32,802 Foreign exchange (gain)/loss 173 (130) Income tax (credit)/expense 795 (186) Profit from operating activities 44,353 47,353 Earnings per unit (cents)

40 Distribution statement 30 June June 2010 $ 000 $ 000 Net profit/(loss) attributable to unitholders of CDI 51,488 15,535 Adjusted for transfers (to)/from reserves: Non-operating activities Straight-lining of rental (income)/expense (2,188) (1,840) Property, plant and equipment depreciation Net (gain)/loss on development property (2,501) 1,151 Fair value movement of derivatives closed out during the year - 7,787 Fair value movement of derivatives held at the end of the year (1,276) (8,393) Fair value movement of investment properties sold during the year Fair value movement of investment properties held at the end of the year (2,418) 33,338 Foreign exchange (gain)/loss 173 (130) Deferred tax expense/(credit) Income tax expense/(credit) 18 (195) Profit from operating activities 44,353 47,353 Non-cash expenses Amortisation of borrowing costs Other transfers per distribution policy Income tax expense/(credit) (18) 195 Debt establishment costs (575) - Maintenance capital expenditure (3,716) (3,061) Leasing costs (841) (2,004) Total income available for distribution 39,490 42,728 Less: Current year undistributed (income)/loss carried forward (3,100) (4,830) Distribution to unitholders 36,390 37,898 Distribution per unit (cents)

41 Available funds from operations (AFFO) Available funds from operations (AFFO) 30 June June 2010 $ 000 $ 000 Profit from operating activities 44,353 47,353 Add/(deduct): Amortisation of borrowing costs Leasing costs (841) (2,004) Maintenance capital expenditure (3,716) (3,061) Debt establishment fees (575) - Capitalised interest (1,894) (1,328) Available funds from operations 37,614 41,205 Distribution to unitholders 36,390 37,898 AFFO distribution payout ratio 96.7% 92.0% 41

42 Balance sheet 30 June June 2010 $ 000 $ 000 Cash and cash equivalents 2,716 1,035 Derivative financial instruments 1,726 2,523 Development property - 6,280 Investment property held for sale 13,200 - Property, plant and equipment 2,895 2,562 Investment properties under development 18,500 19,000 Investment properties 828, ,061 Other assets 8,472 6,733 Total assets 876, ,194 Derivative financial instruments 2,001 4,074 Interest bearing liabilities 226, ,492 Trade and other payables 36,139 29,185 Total liabilities 264, ,751 Net assets 611, ,443 Unitholders equity Contributed equity 672, ,862 Undistributed income 14,468 11,368 Reserves (75,750) (87,787) Total equity attributable to stapled unitholders 611, ,443 42

43 Net property income Australian portfolio FY11 FY10 Variance ($'000) ($'000) ($'000) % Office ABS Building, Belconnen, ACT 7,257 6, DIAC Building, Belconnen, ACT 5,076 4, The Forum, Cisco, St Leonards, NSW 4,931 4, Discovery House, Woden, ACT 4,588 4, The Forum, Verizon, St Leonards, NSW 1,172 3,954 (2,782) (70) Makerston House, Brisbane, QLD 3,622 3, Elder House, Adelaide, SA 2,622 2, Taylor's House, Waterloo, NSW 2,548 2, Executive Building, Hobart, Tas. 1,821 1, Queen Street, Melbourne, Vic. 1,212-1,212 Large Acquisition Office total 34,849 35,119 (269) (1) Retail Jam Factory, South Yarra, Vic 5,102 5,185 (82) (2) Century City Walk, Glen Waverley, Vic. 2,273 2, Innaloo Cinema Centre, Innaloo, WA 1,933 1, Kings Langley, Kings Langley, NSW Retail total 10,143 9, Industrial Distribution Centres The Junction Industrial Park Stage 1, Enfield, NSW 1,611 1,682 (72) (4) Spotlight, Laverton North, Vic. 1,393 1, Toll Drive, Altona North, Vic. 1,241 1,260 (18) (1) 478 Freeman Road, Richlands, QLD (521) (54) Sold 2-10 Toll Drive, Altona North, Vic (6) (1) 1-9 Toll Drive, Altona North, Vic (12) (4) 6 Foray Street, Fairfield, NSW large Industrial Distribution Centres total 6,141 6,249 (106) (2) Industrial High-Tech 187 Todd Road, Port Melbourne, Vic. (122) 1,513 (1,634) (108) 75 Talavera Road, North Ryde, NSW 852 1,475 (622) (42) Rexel, North Ryde, NSW 1,371 1,372 (1) (0) Pacific Brands, Port Melbourne, Vic. 1,065 1, Heidelberg, Waterloo, NSW (367) (100) Industrial High-Tech total 3,166 5,753 (2,586) (45) Australia total 54,299 56,946 (2,640) (5) Sold Sold 43

44 Net property income - continued French portfolio FY11 FY10 Variance ( '000) ( '000) ( '000) % Inteva, Sully sur Loire 1,045 1,064 (19) (2) Bricoman, Aulnay sous Bois, Paris (5) (1) Exel, Villeneuve les Beziers (51) (7) GDF, Gennevilliers, Paris (27) (4) ATAC, Parcay-Meslay, Tours Primagaz, Toulouse (115) Sold (63) Europe total 3,537 3,743 (205) (5) Sold Note: All amounts exclude straight-lining of rental income. 44

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