Centuria Urban REIT 576 SWAN STREET, RICHMOND VIC

Centuria Urban REIT 576 SWAN STREET, RICHMOND VIC PAGE 01

01. 02. 03. 04. 05. Results Overview Porfolio Overview Capital Mangement Strategy & Guidance Appendices Results Overview

Section 1 Results Overview

Financial Overview Financial Snapshot 1H17 1H16 Balance Sheet Metrics 1H17 1H16 Statutory profit/(loss) $m 7.8 4.4 Distributable earnings 1 $m 5.8 7.2 Distributable earnings per security cps 7.9 9.9 Distribution $m 6.2 6.2 Distribution per security cps 8.5 8.5 Total assets $m 213.3 200.2 NTA per stapled security $ 2.27 2.11 Gearing % 19.7 2 18.3 1) Distributable earnings is a financial measure which is not prescribed by Australian Accounting Standard ( AAS ) represents the profit under AAS adjusted for specific non-cash and significant items. The Directors consider that distributable earnings reflect the core earnings of the Fund 2) Gearing, is defined as per loan to value ratio PAGE 04

Financial Highlights Earnings generated by quality office assets Statutory net profit of $7.8m Conservative balance sheet, gearing of 19.7% 1 1H17 Distributable earnings 2 of 7.9 cps in line with previous base case guidance 1H17 Distributions of 8.5 cps paid in line with previous manager statements Market capitalisation increased to $156.8m 3 NTA increased 2 cps to $2.27 per security 7.9 cps Distributable earnings 2 8.5 cps Distributions paid 19.7% Gearing 1 $2.27cps Net Tangible Assets 1) Gearing, is defined as per loan to value ratio 2) Distributable earnings is a financial measure which is not prescribed by Australian Accounting Standards ( AAS ) and represents the profit under AAS adjusted for specific non-cash and significant items. The Directors consider that distributable earnings reflect the core earnings of CUA 3) Based on CUA s closing price of $2.14 per security as at 30 December 2016 PAGE 05

Operating Highlights Asset quality and location drive leasing success 99.2% Portfolio occupancy Substantial leasing success 6,712 sqm across portfolio 1 (new leases and renewals), including; Two year lease extension of 3,699 sqm of expiring space to Queensland Government (QCAA) at 154 Melbourne Street, South Brisbane Five year lease renewal of 1,086 sqm to Frasers Property at at 154 Melbourne Street, South Brisbane Surrender of Pradella Developments lease at 154 Melbourne Street, South Brisbane (534 sqm), allowing for expansion from adjoining tenant QCAA with zero downtime Agents appointed to market SMEC Australia space (expiry Oct 2017). SMEC Australia will continue to pay rent until expiry Dominos Pizza Enterprises expansion into the Devine Developments tenancy on level 1 (1,216 sqm) at Kingsford Smith Drive for a four year term Portfolio valuations increased by 1.2 per cent Portfolio WACR firmed 26 basis points 4.6 yrs Portfolio WALE 2 $210.4m Book valuation 6.86% Portfolio WACR 1) Includes one transaction with terms agreed and subject to lease finalisation 2) By Net Lettable Area ( NLA ) as at 31 December 2016 PAGE 06

NTA Movement Positive investment sentiment for quality metropolitan office stock driving NTA uplift Movements in NTA Per Stapled Security 2.30 ($) 2.20 0.02 0.03 (0.03) 2.25 2.27 2.10 2.00 NTA 2cps 1.90 1.80 FY16 Revaluation MTM Hedge Other 1 1H17 1) Other include movements in cash, payables, receivables and increase in drawn debt PAGE 07

Section 2 Portfolio Overview

Portfolio Metrics High quality investment portfolio underpinned by strong rental covenants Portfolio Snapshot 1H17 1H16 Number of assets # 3 3 Geographic Diversification (by value) Weighted Average Lease Expiry 1,2 Book value $m 210.4 196.1 70% WACR % 6.86 7.41 60 59.4 61.4 NOI $m 7.6 8.9 50 Occupancy 1 % 99.2 98.7 40 FY17 expiries % 0.0 12.8 WALE 1,2 years 4.6 5.3 30 20 29.1 10 12.8 11.7 8.0 14.6 0 0.8 0.8 0.0 0.8 0.8 Vacant FY17 FY18 FY19 FY20 FY21+ 1) Includes one transaction with terms agreed and subject to lease finalisation 2) By Net Lettable Area ( NLA ) as at 31 December 2016 28% VIC 72% QLD FY16 1H17 PAGE 09

Valuations Valuations supported by continued investment appetite for quality metropolitan office assets Key Valuation Metrics 1H17 FY16 Change 483 KINGSFORD SMITH DRIVE, BRISBANE QLD 154 Melbourne Street, South Brisbane QLD 77.5 77.5 438-517 Kingsford Smith Drive, Brisbane QLD 74.4 74.4 576 Swan Street, Richmond VIC 58.5 56.0 2.5 Book value ($m) 210.4 207.9 2.5 Average Capital Value ($psm) 7,267 7,181 87 Portfolio WACR (%) 6.86 7.12 (0.26) $ 210.4m Book value 1.2 % Increase in Portfolio Valuation PAGE 10

Leasing Overview Focus on proactive management strategies to generate predictable income Material transactions completed in 1H17 across 6,712 sqm 1 3,699 sqm relating to FY17 expiries 1,086 sqm relating to FY18 expiries Transactions represent 23.2% of property portfolio, significantly mitigating short term lease expiry risk As a result of these transactions CUA s occupancy and WALE 2 have improved to 99.2% and 4.6 years, respectively Property Tenant / Transaction Level sqm 154 Melbourne Street Queensland Government (QCAA) / Lease extension 154 Melbourne Street Queensland Government (QCAA) / Pradella Developments surrender 7-9 & 3,699 Pt 10 Pt 10 534 154 Melbourne Street Frasers Property / New lease 3 1,086 154 Melbourne Street Soccarrat / New lease Retail 177 438-517 Kingsford Smith Drive Dominos / Replacement of Devine s L1 tenancy 1 1,216 23.2% Portfolio NLA leased 1 6,712 sqm Portfolio NLA leased 1 1) Includes one transaction with terms agreed subject to lease finalisation and execution 2) By Net Lettable Area as at 31 December 2016 PAGE 11

Tenancy Profile A-grade assets attracting quality tenants with strong leasing covenants Top 10 tenants account for 92% of gross rental income Tenancy Profile by Size Cohort (by no. tenant) Rental Reviews Tenant Diversification (top 10 tenants by gross income) Approximately 93 per cent of gross rental revenue derived from ASX listed, multinational, national and government tenants 78% of rental revenue is subject to fixed annual reviews averaging 3.8% 3.8% Fixed review average Department Housing & Public Works (QCAA) GE Capital Finance Australasia Department Housing & Public Works (DOJ) Domino's Pizza Ltd Forever New Clothing Pty Ltd Devine Ltd SMEC Australia Pty Ltd Frasers Property Limited Collins Restaurants Management Pty Ltd Woolworths Ltd 3.5% 4.8% 4.7% 10.1% 9.6% 9.3% 8.2% 11.9% 14.9% 14.9% 52% < 500sqm 78% Fixed 4% 500 to 1,000sqm 13% 1,000 to 2,000sqm 30% > 2,000sqm 18% CPI 3% Other PAGE 12

Section 3 Capital Management

Debt Management Conservative gearing position with intention to reinvest 19.7% Gearing 4.7% All in cost of debt 1 Advanced negotiations for a multi-bank syndicated facility, expect to conclude refinancing of debt facilities prior to the April maturity Ability to redeploy capital should a quality investment opportunity arise Significant headroom, ICR covenant 2 times, LTV covenant 50% Limited forecast capital expenditure on portfolio assets Key Debt Metrics 1H17 Facility limit $m 80.0 Drawn amount $m 41.5 Undrawn capacity $m 38.5 Weighted average debt expiry years 0.3 Proportion hedged % 96 Weighted average hedge maturity years 3.1 Cost of Debt 1 % 4.7 Interest cover ratio times 6.8 LVR % 19.7 1) Including weighted average swap rate, facility establishment fees and all-in margins (base & line fees) PAGE 14

Transfer of Management Rights from 360 Capital Group Limited to Centuria Capital Group On 9 January 2017, Centuria Capital Group (CNI) acquired 360 Capital Investment Management Limited (CIML), the Responsible Entity of 360 Capital Office Fund (TOF) CIML was subsequently renamed Centuria Property Funds No. 2 Limited (CPF2L); and 360 Capital Office Fund has subsequently been renamed Centuria Urban REIT with ASX identification code changed to CUA In addition to acquiring the Responsible Entity of CUA, Centuria Capital Limited and its associates also acquired 360 Capital Group s 28.8% investment holding CUA Continues a strong alignment of interest between Centuria management and investors CUA investment strategy remains unchanged PAGE 15

Section 4 Strategy & Guidance

Strategy CUA s strategy and ongoing focus remains unchanged Fund Strategy Acquire Australian A grade suburban and B grade CBD office properties with a focus on yield and security of income Invest in office properties that have limited exposure to incentive-driven tenants and acquisition prices that reflect sustainable rents Create a portfolio diversified by geography and tenant (by number and by industry) Maintain a modern fit for purpose portfolio within established commercial precincts sourcing complementary assets through direct acquisition or corporate activity Portfolio Strategy Where appropriate, respond to demographic change by rezoning assets to new highest and best use, generating capital appreciation Execute initiatives to generate income and value uplift through active asset management and risk mitigation Continue to focus on portfolio leasing to ensure occupancy and income are maximised PAGE 17

Guidance 154 MELBOURNE STREET, SOUTH BRISBANE QLD Previous FY17 earnings guidance remains at 16.0 cps (assumes no acquisitions) FY17 distribution will represent 100% payout ratio expected to be 16.0 cps (assumes no acquisitions) Any acquisitions in 2H17 may reasonably be expected to increase both earnings and distributions PAGE 18

Closing Centuria Urban REIT s portfolio is in excellent shape in regard to the quality of investment properties and their ability to deliver sustainable earnings for distribution to investors. The REIT s ability to either acquire another investment or participate in a corporate transaction has the potential for Centuria Urban REIT to significantly increase near term earnings for the benefit of all investors. PAGE 19

Appendices

Appendix A Market Outlook Supply and demand fundamentals for metropolitan office markets remain strong Constrained supply side fundamentals Continued withdrawal of metropolitan office space for residential conversion and major infrastructure projects No meaningful new supply forecast in metropolitan markets Strengthening demand side fundamentals CBD Office vs Metro Office 5 Year Net Effective Rental Growth 1.6% 1.6 1.2 Displacement of smaller CBD tenants as cheaper B grade assets are redeveloped 0.8 Significant infrastructure investment is leading to greater market accessibility & tenant demand Switch back to landlords underway in metropolitan markets 0.4 0.6 Effective rental growth in metropolitan markets forecast to outpace CBD s over the near to medium term 0 Metro CBD Incentives have stabilized in metropolitan markets and are starting to contract Source: Colliers Edge PAGE 21

Appendix A Market Outlook Capital market inflows to metropolitan office assets continuing to strengthen Investor demand for quality, well leased metropolitan assets continues to strengthen against a backdrop of limited sellers/ available stock Office Sector A Grade Yield vs 10 Year Government Bond Rate 10.00% CBD Office vs Metro Office Yield Comparison 10.00% Global low interest rate environment coupled with global and political uncertainty will continue to drive capital towards defensive investments such as real estate Approximately 50c in the dollar invested in metropolitan markets coming from foreign buyers 8.00 6.00 4.00 Yield spread between metropolitan and CBD markets remains highlighting price upside in metropolitan markets There remains repricing/arbitrage opportunities for investors that are able to work through tenancy risk and repositioning strategies 2.00 0 Sep 05 Mar 06 Sep 06 Mar 07 Sep 07 Mar 08 Sep 07 Mar 09 Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Sep 05 Sep 06 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 For personal use only 8.00 6.00 4.00 2.00 0 Sep 13 Sep 14 Sep 15 Sep 16 10 Year Govt Bond Rate Metro A Grade Yield CBD A Grade Yield Yield Spread Metro A Grade Yield CBD A Grade Yield Source: Colliers Edge PAGE 22

Appendix A Market Outlook Brisbane Office Outlook 1 Ongoing demand for quality investment stock offering secure income streams suggests that when such assets become available, they will continue to attract interest from both onshore and offshore capital The wide yield spread to southern capitals (~ 140bps to the Sydney CBD core and ~ 110bps to the Melbourne CBD for prime stock for example) remains a key consideration for potential purchasers Occupier demand is expected to show only modest recovery in 2016. Adjustment to a broader demand base from recent history, which was driven by resource sector investment and public administration growth, remains slow In the short term, the vacancy performance between the CBD and Near City should contrast. CBD vacancy will remain elevated, well above the historic average, impacted by the 191,000 square metres of gross stock additions and further major tenant relocations to the Near City The Near City is benefitting from such tenant moves (despite some modest shifts back to the CBD) and its minimal supply pipeline, although opportunities for rental growth are being constrained by competition from the CBD A common them across the market, however, is likely to remain the ongoing flight-to-quality by tenants, meaning the prime market should continue to outperform the secondary market 1) Source 31 December 2016 valuation, 154 Melbourne Street, South Brisbane, QLD - CBRE PAGE 23

Appendix A Market Outlook Melbourne Office Outlook 1 Drivers that impact vacancy through tenant demand, such as business confidence and funding costs, have continued to improve over the past 12 months Recent indicators suggest that tenant demand will increase through the course of 2017 Combined with this is an absence of development activity following the GFC which has led to a market that is evenly balanced but may experience supply constraints in the early parts of a demand upswing Melbourne City Fringe vs Total Surburbs Vacancy % 10.00% 8.00 6.00 4.00 2.00 A number of smaller submarkets have experienced, and continue to experience strong rental growth as 0 a direct result of undersupply 2010 2011 2012 2013 2014 2015 2016 City Fringe City Fringe Average Total Suburbs Total Suburbs Average 1) Source 31 December 2016 valuation, Building 8, 576 Swan Street, Richmond, VIC - Urbis PAGE 24

Appendix A Market Outlook Equity Markets Outlook World economic and political uncertainty is driving domestic and international investors towards defensive investments Capital inflows into the A-REIT sector remain strong due to generally low gearing and conservative management delivering reliable earnings A-REIT s remain generally conservatively managed with diverse tenancy profiles delivering predictable and growing earnings & distributions PAGE 25

Appendix B Income Statement 31 Dec 2016 Revenue Gross property income ($ 000) 8,958 Straight lining of rental income 1 ($ 000) (34) Interest income ($ 000) 19 Total revenue ($ 000) 8,943 Expenses Direct property expenses ($ 000) (1,554) Responsible entity fees ($ 000) (704) Finance costs ($ 000) (992) Management and other administrative expenses ($ 000) (169) Total expenses ($ 000) (3,419) Sub-total ($ 000) 5,524 Investment properties revaluation gain/(loss) ($ 000) 2,596 Net gain (loss) Loss on revaluation of rental guarantee ($ 000) 81 Gain / (Loss) on fair value of derivatives financial instrument ($ 000) 416 Amortisation of capitalised borrowing costs ($ 000) (144) Transaction Costs ($ 000) (662) Statutory net profit ($ 000) 7,811 1) Net of amortisation of leasing fees and tenant incentives PAGE 26

Appendix C Distribution Statement $m 31 Dec 2016 Statutory net profit ($ 000) 7,811 Straight lining of rental income 1 ($ 000) 34 Investment properties revaluation gain / (loss) ($ 000) (2,596) Loss on fair value of derivatives financial instrument 2 ($ 000) (416) Rental guarantee cash received ($ 000) 235 Net gain (loss) on revaluation of rental guarantee ($ 000) (81) Amortisation of capitalised borrowing costs ($ 000) 144 Transaction costs ($ 000) 662 Distributable earnings ($ 000) 5,793 Distribution ($ 000) 6,229 Distributable Earnings per stapled security (cps) 7.91 Distribution per stapled security (cps) 8.50 1) Net of amortisation of leasing fees and tenant incentives 2) Net of loss on termination of derivative financial instrument PAGE 27

Appendix D Balance Sheet $m 31 Dec 2016 Cash ($ 000) 2,251 Investment properties ($ 000) 210,400 Other assets ($ 000) 639 Total assets ($ 000) 213,290 Interest bearing liabilities ($ 000) 41,389 Derivative financial instruments ($ 000) 639 Other liabilities ($ 000) 4,874 Total liabilities ($ 000) 46,902 Net assets ($ 000) 166,388 Securities on issue ($ 000) 73,280 Net tangible assets per security ($) 2.27 Gearing 1 (%) 19.7% 1) Gearing is defined as per loan to value ratio PAGE 28

Disclaimer This presentation has been prepared by Centuria Property Funds No. 2 Limited (ABN 38 133 363 185, AFSL 340 304) ( CPF2L ) as responsible entity of the Centuria Urban REIT (ARSN 106 453 196 ( CUA or the Trust ). All information and statistics in this presentation are current as at 31 December 2016 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of the information that may be relevant, or which a prospective investor may require in evaluations for a possible investment CUA. It should be read in conjunction with CUA s periodic and continuous disclosure announcements which are available at www.centuria.com.au. The recipient acknowledges that circumstances may change and that this presentation may become outdated as a result. This presentation and the information in it are subject to change without notice and CPF2L is not obliged to update this presentation. This presentation is provided for general information purposes only. It is not a product disclosure statement, pathfinder document or any other disclosure document for the purposes of the Corporations Act and has not been, and is not required to be, lodged with the Australian Securities & Investments Commission. It should not be relied upon by the recipient in considering the merits of CUA or the acquisition of securities in CUA. Nothing in this presentation constitutes investment, legal, tax, accounting or other advice and it is not to be relied upon in substitution for the recipient s own exercise of independent judgment with regard to the operations, financial condition and prospects of CUA. The information contained in this presentation does not constitute financial product advice. Before making an investment decision, the recipient should consider its own financial situation, objectives and needs, and conduct its own independent investigation and assessment of the contents of this presentation, including obtaining investment, legal, tax, accounting and such other advice as it considers necessary or appropriate. This presentation has been prepared without taking account of any person s individual investment objectives, financial situation or particular needs. It is not an invitation or offer to buy or sell, or a solicitation to invest in or refrain from investing in, securities in CUA or any other investment product. The information in this presentation has been obtained from and based on sources believed by CPF2L to be reliable. To the maximum extent permitted by law, CPF2L and its related bodies corporate make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this presentation. To the maximum extent permitted by law, CPF2L does not accept any liability (including, without limitation, any liability arising from fault or negligence) for any loss whatsoever arising from the use of this presentation or its contents or otherwise arising in connection with it. This presentation may contain forward-looking statements, guidance, forecasts, estimates, prospects, projections or statements in relation to future matters ( Forward Statements ). Forward Statements can generally be identified by the use of forward looking words such as anticipate, estimates, will, should, could, may, expects, plans, forecast, target or similar expressions. Forward Statements including indications, guidance or outlook on future revenues, distributions or financial position and performance or return or growth in underlying investments are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. No independent third party has reviewed the reasonableness of any such statements or assumptions. No member of CPF2L represents or warrants that such Forward Statements will be achieved or will prove to be correct or gives any warranty, express or implied, as to the accuracy, completeness, likelihood of achievement or reasonableness of any Forward Statement contained in this presentation. Except as required by law or regulation, CPF2L assumes no obligation to release updates or revisions to Forward Statements to reflect any changes. The reader should note that this presentation may also contain pro-forma financial information. Distributable earnings is a financial measure which is not prescribed by Australian Accounting Standards ( AAS ) and represents the profit under AAS adjusted for specific non-cash and significant items. The Directors consider that distributable earnings reflect the core earnings of the Trust. All dollar values are in Australian dollars ($ or A$) unless stated otherwise. PAGE 29