1H18 RESUL RESULTS TS BELROSE SUPER CENTRE 12 FEBRUARY 2018 NSW - PowerPoint PPT Presentation

1H18 RESUL RESULTS TS BELROSE SUPER CENTRE 12 FEBRUARY 2018 NSW

CONTENTS CONTE NTS 03 Strategy 31 Appendix 1: Case Study – Value Creation at Logan 06 Key Achievements 32 Appendix 2: Portfolio Overview 07 Portfolio Highlights 33 Appendix 3: The Evolution of Large Format Retail Centres 16 Financial Results 34 Appendix 4: Demand for Household Goods 22 Active Portfolio Management 25 Development CASTLE HILL SUPER CENTRE 28 Outlook NSW

DELIVERING ON STRATEGY The Fund continues to implement its four key growth initiatives to drive long term value creation and sustainable earnings growth Portfolio Consolidation Development Potential Benefits Management Opportunities Pipeline from Planning Reforms Optimise and broaden the Selective acquisitions to Identify and deliver value Take advantage of regulatory ve tive enhance the Fund’s portfolio tenancy mix through proactive enhancing development reforms in zoning and Initiati leasing, leveraging tenant and entrench the Fund as the opportunities within planning regimes relationships and delivering largest pure-play large format the existing portfolio for the existing portfolio Init retail (“LFR”) landlord in operational excellence Australia The portfolio continues to Improved portfolio quality by Commenced major Following the lead of VIC perform well with high acquiring metro Sydney expansion of Tuggerah, and WA, the NSW government is me tcome occupancy, positive leasing centres Castle Hill and adding 10,000 sqm in GLA exploring reforms which, if spreads and low incentives Marsden Park and divesting and expansions to Peninsula enacted, will be favourable Outco whilst introducing new tenants smaller centres (Shepparton and Cranbourne underway to the LFR sector to the portfolio and Tweed) at a 6.5% premium to book value on a combined basis 3 Aventus Retail Property Fund | Half Year Results | 31 December 2017

DIVERSIFIED PORTFOLIO 92% 74% Metro by value East Coast by value $1.85b 1 Portfolio value 18% QLD 4 Centres 20 centres valued at 58% 3% NSW 10 Centres WA 1 Centre 16% 5% VIC SA 4 Centres 1 Centre AVN centres 1. Pro forma for sale of Shepparton and Tweed 4 Aventus Retail Property Fund | Half Year Results | 31 December 2017

FUTURE POTENTIAL UPSIDE 1 UNLOCK REAL E REAL EST STATE TE FEA FEATURES RES 1,200,000 sqm 44% More than 13,000 land site coverage ratio car spaces ADDITIONAL INCOME OPPORTUNITIES 11km of street frontage, Circa 500,000 sqm 38,000,000 with over 320m cars passing p.a. 2 roof area visitors p.a. INTENSIFY LAND AND USE SE 524,000 sqm 83% of portfolio 39% of portfolio GLA tenancies with expansion opportunity 3 with zoning for other uses 4 1. All metrics as at 31 Dec 2017 exclude Shepparton and Tweed 2. Estimate based on average annual daily traffic passing each asset 3. By site area 4. By GLA attributable to zoning alternative to Large Format Retail 5 Aventus Retail Property Fund | Half Year Results | 31 December 2017

KEY ACHIEVEMENTS 1 SINGLE SECTOR FOCUS AND SUSTAINABLE INCOME GROWTH FUND FINANCIAL PORTFOLIO HIGHLIGHTS MANAGEMENT PERFORMANCE $45m FFO 2 $2.34 NTA per unit 98.6% occupancy ⇧ ⇧ ⇧ 28.6% from $35m 3 5.4% from $2.22 per unit 4 30 bps from 98.3% 5 Diversified debt $496m 9.1 cents FFO per unit 2, 6 with $110m of capital transactions ⇧ 3.4% from 8.8 cents 3 7-year loan note facility Acquisitions: $436m; Divestments: $60m 7 8.1 cents DPU 2 36.9% gearing $58m valuation uplift 8 ⇧ ⇧ ⇧ 3.8% from 7.8 cents 3 from 38.9% 4 4.2% since Jun 2017 1. All metrics as at 31 Dec 2017 exclude Shepparton and Tweed 2. For the six months ended 31 Dec 2017 3. As at 31 Dec 2016 4. On a proforma basis at 30 Jun 2017. 30 Jun 2017 audited NTA was $2.27 per unit and gearing was 20.5% (pro forma adjustments include settlement of Castle Hill and Marsden Park acquisitions) 5. By GLA as at 30 Jun 2017 6. Based on a weighted average number of units of 491m over the six months ended 31 Dec 2017 7. Includes Tweed which is scheduled to settle in Q2 2018 8. Net movement excludes acquisitions, disposals, capitalised expenditure and non-cash accounting adjustments over the six months to 31 Dec 2017 6 Aventus Retail Property Fund | Half Year Results | 31 December 2017

POR PORTFOLIO TFOLIO HIGHL HIGHLIGHTS IGHTS JINDALEE HOME QLD

PORTFOLIO HIGHLIGHTS 1 FOCUSED ON OPERATIONAL EXCELLENCE AND INCOME GROWTH OPPORTUNITIES Portfolio value Increased average 34% of $1.85bn centre value to $93m non-household uses 3 ⇧ ⇧ from $1.83bn 2 44% since listing in Oct 2015 CY17 like-for-like 6.69% net operating income 92% East Coast Portfolio cap rate growth of 3.1% 4 by value ⇧ from 6.85% 2 ⇧ from 3.0% at Jun 2017 46 leasing deals 87% across 38,000 sqm of GLA 5 National retailers 3 ⇧ from 84% 2 with low incentives and positive leasing spreads 1. All metrics as at 31 Dec 2017 exclude Shepparton and Tweed 2. As at 30 Jun 2017, including Castle Hill and Marsden Park 3. By GLA 4. Exclude acquisitions and development impacted centres and is calculated on a like-for-like basis versus the prior corresponding period (year ending 31 Dec 2016) 5. For the six months ended 31 Dec 2017 8 Aventus Retail Property Fund | Half Year Results | 31 December 2017

DIVERSITY OF INCOME 1  87% national tenants, with majority public companies 2  Less than 2% apparel and fashion exposure and no department stores 2 TOP 15 TENANTS NUMBER OF % OF PARENT NUMBER OF % OF PARENT RANK BRANDS RANK BRANDS TENANCIES INCOME 3 COMPANY TENANCIES INCOME 3 COMPANY Steinhoff Asia 1 4 5% Wesfarmers Limited 9 8 2% Pacific Limited Harvey Norman Quadrant Private 2 6 4% 10 9 2% Holdings Limited Equity 3 9 4% JB Hi-Fi Limited 11 7 2% Wesfarmers Limited 4 9 3% JB Hi-Fi Limited 12 10 2% Adairs Limited Steinhoff Asia 5 7 3% 13 8 2% Forty Winks Pacific Limited Beacon Lighting Spotlight Group 6 14 2% 14 5 2% Group Limited Holdings Limited Harvey Norman Super Retail 7 2 2% 15 8 2% Holdings Limited Group Limited 8 5 2% Nick Scali Limited TOTAL 111 38% 1. All metrics as at 31 Dec 2017 exclude Shepparton and Tweed 2. By GLA 3. By gross income as at 31 Dec 2017 excluding rental guarantees 9 Aventus Retail Property Fund | Half Year Results | 31 December 2017

FOCUS ON DIVERSIFYING & EXPANDING THE NON-HOUSEHOLD CATEGORY 1  Non-household goods tenants contribute 37% of gross income whilst covering 34% of the portfolio’s GLA with over 200 tenancies  The largest tenant category drives weekday traffic, increases visit frequency and lengthens customer linger time Tenancy Mix: AVN vs. LFR Sector (by GLA) 2,3 Tenants in the non-household category include: comprising 34% 57 32 20 35 27% AVN 25% LFR Sector 23% Cafes & Health & Leisure & Automotive Restaurants Wellbeing Sports Stores Stores 13 4 17 13 13 14% 11% 11% 11% 10% 8% 6% Pet & Veterinary Supermarkets, Offices and 4 Baby Supplies, 4% 4% 3% Showrooms Liquor and Children’s Play Centres Government 2% Convenience Stores Service Providers 1% & Child Care Facilities Non-Household Furniture Hardware Electrical Homewares Bedding Coverings Vacant Goods & Garden & Services 1. All metrics as at 31 Dec 2017 exclude Shepparton and Tweed 2. Non-household goods include pet supplies, baby supplies, sporting, camping and leisure, cafes, restaurants, supermarkets, liquor, fitness centres, medical centres, offices, chemists, automotive, children’s play centres and child care facilities 3. Source: Deep End Services (centres larger than 10,000 sqm) as at 30 Jun 2017 4. Excluding Masters 10 Aventus Retail Property Fund | Half Year Results | 31 December 2017

DIVERSIFYING THE NON-HOUSEHOLD CATEGORY FOOD FOOD HEAL HEALTH TH & WE & WELLBEI LLBEING NG PLOVER DAY SPA, PENINSULA ZAMBRERO , MARSDEN PARK THE NINES CAFE , SUNSHINE COAST NUTRITION WAREHOUSE, EPPING SHAVER SHOP , BELROSE SOBER MULE RESTAURANT, PENINSULA 11 Aventus Retail Property Fund | Half Year Results | 31 December 2017

DIVERSIFYING THE NON-HOUSEHOLD CATEGORY (CONT.) SE SERVICE VICES CHIL CHILDCAR DCARE AUSTRALIA POST, KOTARA LITTLE LEARNING SCHOOL, CRANBOURNE SERVICES NSW, CASTLE HILL NRMA, TUGGERAH GREAT BEGINNINGS (G8 EDUCATION), MARSDEN PARK 12 Aventus Retail Property Fund | Half Year Results | 31 December 2017

CONSISTENTLY HIGH OCCUPANCY  High occupancy of 98.6% achieved with low incentives, positive leasing spreads and 3.1% p.a. like-for-like net operating income growth 1 2 National Average Vacancy AVN Portfolio Vacancy 8.1% IPO 3 7.2% 6.5% 6.1% 5.8% 5.6% 5.0% 5.8% 4.3% 3.8% 3.1% 2.9% 2.6% 2.3% 2.0% 1.7% 1.6% 1.4% 1.2% Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Dec-17 Number of LFR centres in the AVN Portfolio 4 4 6 7 9 11 12 14 20 22 20 1. Source: Deep End Services (centres larger than 10,000 sqm); By GLA. Jun 2017 excluding Masters 2. Historical metrics exclude centres prior to acquisition by the Fund. Dec 2017 metrics exclude Shepparton and Tweed 3. IPO at Oct 2015 based on Jun 2015 metrics 4. Jun 2017 metrics include Castle Hill and Marsden Park 13 Aventus Retail Property Fund | Half Year Results | 31 December 2017