FUND UPDATE FUND FACTS: 8.0% 8.5% Retail Property Fund Wholesale Securities. Forecast Distribution Range (for the year to 30 September 2015)

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1 FUND UPDATE 30 September 2014 Retail Property Fund The Fund invests primarily in retail-related property investments. It comprises a quality property portfolio of five retail properties. The properties bring together a diverse tenant base that comprises more than 150 tenancies, including many of Australia s most successful retail brands. The Fund aims to provide investors with a well-structured diversified exposure to retail shopping centres and other retail properties, and aims to deliver a stable income distribution over the long-term, as well as the potential for capital growth. Forecast Distribution Range (for the year to 30 September 2015) 8.0% 8.5% The distribution return range forecast is for the full year to 30 September 2015 and is made on the basis of a number of assumptions and estimates. It is based on the security price as at 30 September The forecast distribution return range is not guaranteed and is provided only to indicate current distribution projections for the Fund. We emphasise that investment decisions should not be based on forecast returns, past performance, distribution rate, or the ratings given by a ratings agency for the Fund, since these can vary, and are current only to the date of this publication. For more information on the basis for the forecast distribution return range, refer to the forecast assumptions section of this document. FUND FACTS: (as at 30 September 2014) GROSS ASSET VALUE $295.40m ($ million at 30 June 2014) SEPTEMBER QUARTER DISTRIBUTION cents per security (CPS) ( CPS June 2014 quarter 1 ) GEARING RATIO 45.35% (40.54% at 30 June 2014) SECURITY PRICE $ exit price (cum distribution) ($ at 30 June 2014) PORTFOLIO OCCUPANCY 89.97% leased by area, with a weighted average lease expiry by base rental income of 5.22 years This document is dated 24 October The financial information in this Fund Update is extracted from the Fund s accounting and property management records at 30 September 2014 and is based upon unaudited financial records unless stated otherwise. Past performance is not a reliable indicator of future performance. 1 The June 2014 quarterly distribution consisted of earnings along with a special distribution which relates to the sale of 50% interest In the Waurn Ponds Shopping Centre, Geelong, VIC. Australian Unity Real Estate Investment Direct Property Fund Manager of the Year

2 Investment performance as at 30 September 2014 Distribution return 3 mths % 6 mths % 1 yr % 3 yrs % p.a. Since inception % p.a Growth return 0.41 (6.15) (2.79) (1.83) (2.60) Total return Estimated Benchmark return Returns are calculated after fees and expenses and assume the reinvestment of distributions. Past performance is not a reliable indicator of future performance. 1 Inception date for performance calculations is 31 August % Property Council/IPD Australian Retail Property Index income-only return to 30 June We use an estimate because the index returns are not finalised until approximately one month after this Update is published. An estimated growth return is not included for the estimated period as property values and market sentiment are difficult to predict. How the retail property sector performed During the last quarter, the fundamentals underpinning Australia s retail property market continued to demonstrate steady, but slow, improvement. This included a surge in residential property prices, jobs growth and increased nondiscretionary spending. To date, however, these are yet to translate into material improvements for the retail property sector. Retail property nonetheless continues to present as an attractive investment in today s low interest rate environment because of its ability to provide regular income and the potential for capital gains. More broadly, the Australian economy continues to produce steady if unspectacular growth. In its most recent statement on monetary policy, the Reserve Bank of Australia (RBA) noted that financial conditions remain very accommodative and most economic data is consistent with moderate growth in the economy. 1 This aside, the recovery previously observed in Australian consumer sentiment after the Federal Budget in May took a step back during August. It was little changed in September, although there was better news in the labour market, with the Westpac Melbourne Institute Unemployment Expectations Index indicating Australians were feeling more comfortable with respect to job security or employment prospects. 2 Australian business confidence, while losing some ground in August and September, remained robust. Key reasons were positive, but softening, forward orders and subdued cost pressures. Across different industries, confidence varied. For example, construction firms and service firms were reportedly the most optimistic. 3 1 Monetary Policy Decision, Reserve Bank of Australia, (7 October 2013). 2 Westpac Melbourne Institute Index of Consumer Sentiment (10 September 2014 and 15 October 2014). 3 National Australia Bank, Monthly Business Survey, August 2014 (9 September 2014) and September (14 October 2014).

3 Once again, in early October for its 13th meeting in a row the RBA left its official cash rate unchanged, at a historically low 2.5%. Seeking consistency and a broadly neutral stance, the RBA continues to signal that rates at this level should provide support to demand and help economic growth strengthen over time. For the retail property sector, the Australian Bureau of Statistics reported in October 2014 that retail spending grew in July and August, albeit gradually. 4 The result was broadly seen as a disappointment, however, as most economists were predicting a stronger outcome. Small gains were evident in food retailing, cafes and restaurants, but the overall result was dragged down by a 2.9% fall in department store sales. For the year to date our experience is that retail leasing conditions have remained consistent, with retailers continuing to seek significant leasing incentives as part of negotiations for new leases. Importantly, however, new retail space continues to be limited and this is supporting existing tenant retention. Confidence in the retail property sector was demonstrably boosted with recent announcements for major re-developments of shopping centres in Melbourne, including at Knox City, Eastland and Chadstone. The investment market for retail property continues to be strong, with robust competition evident for quality assets. This activity is being driven by domestic superannuation funds, wholesale funds and offshore sovereign funds and it has produced clear evidence of yield compression in the sector. 4 Australian Bureau of Statistics, Retail Trade, Australia, Aug 2014 (1 October 2014). Key portfolio statistics (as at 30 September 2014) Geographic allocation by value VIC 3 assets 60.33% QLD 1 asset 20.97% NSW 1 asset 18.70% Property sector diversity by value How the Fund performed The June 2014 quarterly distribution of cents per security (CPS) consisted of earnings ( CPS) along with a special distribution ( CPS) The September 2014 distribution was CPS is an increase on the earnings component of the distribution for the previous quarter, reflecting the improved income received after the completion of the Waurn Ponds Shopping Centre. Property sales In September, the Fund entered into put and call option agreements to sell the Wendouree Homemaker Centre and the Sunshine Homemaker Centre. The exercise price for Wendouree Homemaker Centre is $27.1 million, less rental guarantees and other adjustments. Settlement is expected before 30 November The exercise price for Sunshine Homemaker Centre is $62 million, less rental guarantees and other adjustments. The sale is expected to be completed between May and August Both sales are in line with the Fund s strategy to decrease its exposure to the volatile bulky goods sector, to decrease the Fund s gearing and to improve its working capital position for future withdrawal offers. Looking ahead we also intend to use the proceeds to fund the purchase of a new neighbourhood shopping centre, anchored by a supermarket and/or discount department store or mini-major. Whilst the adjustments to the sale prices cannot be accurately determined until settlement, we expect that the forecast net sale proceeds will be in excess of the combined book value for these two properties. Property developments Pleasingly, Stage 2 of the development at the Waurn Ponds Shopping Centre is now complete. The builders are expected to vacate the centre in mid-october at the point when the Centre s old and new car parks are linked. Sub Regional 1 asset 37.66% Bulky Goods 2 assets 29.39% Specialised Retail 1 asset 18.70% Neighbourhood 1 asset 14.25% Top 5 tenants by income Caltex 20.80% Woolworths 7.11% Bunnings 5.33% Coles 4.81% Target 2.07% Others (excluding vacancy) 59.88%

4 Outlook The Fund outperformed its benchmark the Property Council/IPD Australian Retail Property Index over the last quarter and we continue to maintain a cautiously optimistic outlook for it and the broader retail property sector. Our view is tempered, however, by the ongoing experience of negotiating new and existing leases with many Australian retail chains. Prominent and specialist retailers continue to demand leasing incentives and non-standard terms as part of their negotiations, putting pressure on rental returns. On the positive side, we believe the retail property investment market will continue to be strong. Our expectation is that demand, in particular from off-shore investors, is expected to increase. The Fund s forecast distribution return range for one year to 30 September 2015 is 8.0% - 8.5%. 5 5 The distribution return range forecast is for the full year to 30 September 2015 and is made on the basis of a number of assumptions and estimates. It is based on the security price as at 30 September The forecast distribution return range is not guaranteed and is provided only to indicate current distribution projections for the Fund. We emphasise that investment decisions should not be based on forecast returns, past performance, distribution rate, or the ratings given by a ratings agency for the Fund, since these can vary, and are current only to the date of this publication. For more information on basis for the forecast, refer to the back page of this document. Fund investment portfolio Property details Tenancy details Valuation details 1 Address Lettable area (square metres) Major tenant(s) Number of tenants Occupancy rate (% by area) WALE (years) 2 Current valuation ($m) Valuation date Capitalisation rate % Book value ($m) Direct property Waurn Ponds Shopping Centre, Geelong, VIC existing centre 3 24,358 Target Jun Waurn Ponds Shopping Centre, Geelong, VIC extension 3,6 23,560 Coles N/A 7 N/A 7 N/A Sunshine Homemaker Centre, Maroochydore, QLD 4,5 27,127 Bunnings Warehouse Sep Caltex Twin Service Centres Sydney to Newcastle (F3) Freeway, NSW 4 4,286 Caltex Oct North Blackburn Square Shopping Centre, North Blackburn, VIC Wendouree Homemaker Centre and Telstra Call Centre, Ballarat, VIC 5 11,909 Woolworths Dec ,786 Spotlight Sep Cash and other assets 9.31 Total (T)/ Weighted Average (A) 202 (T) (A) 5.22 (A) (T) 8.70 (A) (T) Notes 1 Valuation Policy - Regular valuation of underlying property assets is an important aspect of managing the Fund. Valuations are conducted by qualified independent valuers in accordance with industry standards. We have a policy of generally obtaining independent valuations on Fund direct properties each year. Additionally, as part of our active management approach, we may test asset values on market. At times we may enter arrangements at arm s length with third parties which may impact the value of assets within the portfolio including, but not limited to, put and call options in respect of all or part of an asset within the portfolio. If the value of an asset is impacted in this way, the value may replace the last independent valuation obtained. 2 Weighted Average Lease Expiry (WALE) by base rental income. 3 The Fund has 50% ownership interest in the property. 4 These properties are held through wholly-owned unlisted property investments. 5 On 5 September 2014, the Fund entered into Put and Call Option Agreements to sell Wendouree Homemaker Centre and the Sunshine Homemaker Centre. For more information, refer to the web announcement dated 15 September 2014 on the Fund s website at 6 This property is owned by the Australian Unity Retail Opportunities Trust. 7 The Waurn Ponds Shopping Centre extension is currently held at cost given its holding structure. It is likely that this property will be independently valued once Coles Group Property Development Limited sells its 50% interest and the title to the existing centre and the extension are consolidated.

5 Forecast assumptions A range of assumptions have been used when calculating the distribution forecasts. Where possible, assumptions have been based on information contained in unaudited management accounts or on existing contracts and agreements. Investors should be aware that actual results may vary significantly from those forecast, as future events may not occur in accordance with the assumptions detailed below. For information on the risks of investing and the risks associated with the Fund, refer to the Australian Unity Retail Property Fund Product Disclosure Statement dated 25 June 2014 available at australianunityinvestments.com.au/wrpf. Consumer Price Index (CPI) Inflation assumed as per the Deloitte national CPI forecast at 2.30% for 12 months. Average forecast interest rates on borrowed funds Uses existing average cost of borrowing which has been agreed with our financiers and assumes the facilities are renewed at expiry on existing terms, and that there are no material changes in market interest rates, hedging policy or arrangements. Property sales and acquisitions Through active asset management, a program of asset acquisitions and disposals is constantly reviewed by the manager. The current significant transaction assumptions included in the forecast is the sale of Wendouree in the first quarter of financial year 2015 and Sunshine in the fourth quarter of financial year Fees No changes assumed. Fees assumed in accordance with the Corporations Act, existing investor disclosure and the Constitution of the Fund at % p.a. of gross asset value relating to the of the Fund. Capital expenditure Capital expenditure during the forecast period has been taken into account at the amount included in management forecasts (~$3.0 million for next 12 months). Applications Assumed level of applications based upon budgeted inflows for the current financial year and adjusted for recent inflows. Redemptions Assumed level of redemptions are based on withdrawals of the maximum total amount of $1.0 million each quarter in aggregate across all classes of Securities. To assist in assessing the significance of key assumptions used in forecast distributions, the sensitivity to changes in some key assumptions are detailed below. This sensitivity analysis is a forecast only and variations in the actual performance may exceed the ranges shown. Increase in interest rates by 0.5% Such a change would cause no material impact to the forecast distributions since the Fund is currently over 70%% hedged. Development of property The development of the Waurn Ponds Shopping Centre is now largely complete and therefore is already accounted for in the forecast distributions. Change in level of applications A decline in the level of applications into the Fund would have no material impact upon the forecast distribution. Change in level of redemptions A decline in the level of redemptions from the Fund would have no material impact upon the forecast distribution. Expenses Growth in property related expenses have been assumed to increase by CPI and included in net property income. Income The projected rental income and outgoings recoveries have been based on existing rental agreements and management forecasts for existing vacancies and future lease expiries. Assumptions regarding potential vacancies, leasing renewals and fees have been calculated on a lease-bylease basis, taking into account expected market conditions at the time of expiry. Projected interest income on cash holdings has been based on interest rates at the date of this document.

6 Learn more about your investment Visit our website Log onto australianunityinvestments.com.au for the latest information about your investment, including security prices, announcements and regular updates on Fund activity and performance. Log on to our secure investor portal Log on to the investor portal via the australianunityinvestments.com.au website to review your account transaction history, view your statements and update your personal details. Go paperless with Australian Unity Investments Help us to reduce our carbon footprint on the environment by opting to view your statements online. Tell us you want to go paperless with a simple to investments@australianunity.com.au or call our Investor Services team on Call us For any specific questions about the Fund: investors can contact a member of our Investor Services team on financial advisers can contact their Australian Unity Business Development Manager or call a member of our Adviser Services team on Important information The Australian Unity Retail Property Fund is issued by Australian Unity Funds Management Limited ABN , AFS Licence No The information in this document is general information only and is not based on the financial objectives, situations or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product, you should obtain the current Product Disclosure Statement (PDS) dated 25 June 2014 and consider whether the product is appropriate for you. A copy of the PDS is available at australianunityinvestments.com.au or calling our Investor Services at Investment decisions should not be made upon the basis of its past performance or distribution rate, or any ratings given by a ratings agency, since each of these can vary. In addition, ratings need to be understood in the context of the full report issued by the ratings agency itself. The information provided in the document is current at the time of publication only. The Professional Planner Zenith Fund Awards are determined using proprietary methodologies. Fund Awards and ratings are solely statements of opinion and do not represent recommendations to purchase, hold, or sell any securities or make any other investment decisions. Ratings are subject to change. The Lonsec Rating (assigned to Australian Unity Retail Property Fund October 2013) presented in this document is published by Lonsec Research Pty Ltd ABN AFSL The Rating is a class service (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to General Advice (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to wholesale clients (as defined in the Financial Advisers Act 2008 (NZ)). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Australian Unity Investments product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec s Ratings methodology, please refer to our website at: Contact us Address 114 Albert Road, South Melbourne, VIC 3205 Investor Services Adviser Services investments@australianunity.com.au