For personal use only CENTURIA INDUSTRIAL REIT 2018 Goldman Sachs - PDF document

Australian Securities Exchange – Company Announcements Platform Centuria Property Funds No. 2 Limited For personal use only CENTURIA INDUSTRIAL REIT 2018 Goldman Sachs Small and Mid-Cap Conference Presentation Sydney 18 April 2018, Centuria Property Funds No. 2 Limited ( CPF2L ) as Responsible Entity of Centuria Industrial REIT ( ASX:CIP ) provides a presentation that will be used at the Goldman Sachs ninth annual Small and Mid-Cap Conference being held today in Sydney. – Ends – For more information or to arrange an interview, please contact: Ross Lees Tim Mitchell Trust Manager – CIP Group Head of Investor Relations Centuria Property Funds No. 2 Limited Centuria Capital Group Phone: 02 8923 8923 Phone: 02 8923 8923 Email: ross.lees@centuria.com.au Email: tim.mitchell@centuria.com.au About Centuria Property Funds No. 2 Limited Centuria Property Funds No. 2 Limited (CPF2L), a wholly-owned subsidiary of Centuria Capital Group (CNI), is the Responsible Entity for the ASX listed Centuria Industrial REIT (CIP). CIP is Australia’s largest ASX -listed income focused industrial investment vehicle and is included in the S&P ASX300 index. CIP owns a portfolio of 39 high quality industrial assets with a value exceeding $1 billion, the properties are located in key metropolitan locations throughout Australia. CPF2L, combined with Centuria Property Funds Limited (CPFL), the Responsible Entity for the ASX listed Centuria Metropolitan REIT (CMA), has $3.7 billion of funds under management in 17 unlisted property funds, one open-ended diversified property fund and two listed REITs. CNI is an ASX-listed specialist investment manager with $4.6 billion in funds under management. www.centuria.com.au

CENTURIA INDUSTRIAL REIT (ASX:CIP) I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only Centuria Industrial REIT Goldman Sachs Small and Mid-Cap Conference PAGE 1 1 ASHBURN ROAD, BUNDAMBA, QLD

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only 1 2 3 Overview Portfolio Summary Overview 1H18 Results 1 ASHBURN ROAD, BUNDAMBA, QLD

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only Section 1 Overview

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only Centuria Capital Centuria Capital Group ASX-listed specialist investment manager $ 4 . 6 b Assets Under Management 1,2 Property fund management Investment Bonds $ 3 . 7 b $ 0 . 9 b Assets Under Management 1,2 Assets Under Management Listed Property $2.0b 1 Unlisted Property $1.7b 2 Industrial REIT Office REIT (CIP) (CMA) 17 fixed Centuria Diversified $ 1 . 1 $ 0.9 b term funds Property Funds b Assets Under Management Assets Under Management 1 1. Includes 31 Kendall Street, Williams Landing, VIC, as if complete 2. Includes post 31 December 2017 acquisitions 3. Above chart at 31 December 2017 PAGE 4

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only CIP , Australia’s largest ASX listed income focused industrial REIT Key Metrics at 31 December 2017 39 $ 1.0 b $ 608 m 40.6 % 95.9 % High quality assets Portfolio value Market Gearing 3 Portfolio capitalisation 1 occupancy 4 6.7 2 % 4.9 yrs 19.4 cpu 7 .9 % 12 month total unit holder return outperforming S&P/ASX300 Portfolio WALE 4 FY18 distribution FY18 forecast A-REIT Index at -0.1% 2 guidance distribution yield 1 1. Based on CIP closing price of $2.45 on 31 March 2018 2. Source: Moelis & Company PAGE 5 3. Gearing is defined as total borrowings minus cash / total assets minus cash and goodwill 4. By income

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only Strategy 24-32 Stanley Drive Somerton, VIC CIP has a simple strategy – to deliver income and capital growth to investors from a portfolio of high quality Australian industrial assets; by – focusing on ‘fit for purpose’ assets that are relevant to our quality customer base – anticipating and meeting the needs of our customers to ensure high retention and occupancy – Re-positioning assets to maximise value to unit holders PAGE 6

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only Australia’s largest ASX listed income focused industrial REIT – Only ASX listed REIT with 100% exposure to Australian industrial real estate – Large scale, geographically diversified industrial portfolio – Included in S&P/ASX 300 Index – Portfolio has grown significantly over the past five years Value of owned Industrial Portfolio (ex Business Parks) 1 CIP Portfolio Value $2.0 bn 100% $1,200 m $1.8 bn 1,000 1.5 75 $1.5 bn $1.4 bn 800 $1.3 bn CAGR 34% $1.1 bn 50 1.0 $1.0 bn 600 $0.8 bn 400 $0.6 bn 0.5 25 200 $0.3 bn NA 0 0.0 0 Peer 8 Peer 7 Peer 6 CIP Peer 5 Peer 4 Peer 3 Peer 2 Peer 1 Jun 14 Jun 15 Jun 16 Jun 17 Dec 17 Represents Australian Industrial Property (ex Business Parks) as a % of assets 1. Source: ASX disclosures at 31 December 2017 PAGE 7

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only Competition for assets drives transaction volumes Transaction Volumes and Average Cap Rate Average Industrial Yield by City (2017) $9 AUD Billions 10% Houston 8 Melbourne 9.5 Shanghai 7 9.0 Transaction Volume Los Angeles Average Cap Rate 6 8.5 Sydney 5 Tokyo 8.0 4 Chicago 7.5 3 Frankfurt 7.0 Munich 2 Vancouver 6.5 1 London 0 6.0 Hong Kong 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Singapore NSW VIC QLD WA SA ACT Other Average Prime Yield Average Secondary Yield 0 1 2 3 4 5 6 7 8 Yield (%) Total average 5.1% Note: Investment sales greater than and equal to $5 million included; yields reflect reversionary yields Note: Yields reflect average prime industrial assets, as at December 2017 Source: RCA / Colliers Edge Source: Colliers International PAGE 8

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only Underlying conditions remain positive for industrial occupiers Projected Average Population Growth (2018-2022) Australian GDP and CPI Nigeria People’s Republic of China Emerging & developing 3.0 % 6.0 GDP CPI Emerging market 5.0 Hong Kong SAR Australia Asia & Pacific United Kingdom Indonesia 2.0 Major Advanced United States Singapore 4.0 Canada World India Mexico France 3.0 1.0 Japan Germany 2.0 0.0 1.0 0.0% 0.3% 0.5% 0.6% 0.6% 0.6% 0.8% 0.8% 0.9% 1.0% 1.0% 1.0% 1.2% 1.3% 1.3% 1.3% 1.6% 2.7% -0.4% 0.0 -1.0 Dec-2006 Mar-2007 Jun-2007 Sep-2007 Dec-2007 Mar-2008 Jun-2008 Sep-2008 Dec-2008 Mar-2009 Jun-2009 Sep-2009 Dec-2009 Mar-2010 Jun-2010 Sep-2010 Dec-2010 Mar-2011 Jun-2011 Sep-2011 Dec-2011 Mar-2012 Jun-2012 Sep-2012 Dec-2012 Mar-2013 Jun-2013 Sep-2013 Dec-2013 Mar-2014 Jun-2014 Sep-2014 Dec-2014 Mar-2015 Jun-2015 Sep-2015 Dec-2015 Mar-2016 Jun-2016 Sep-2016 Dec-2016 Mar-2017 Jun-2017 Sep-2017 Dec-2017 Source: ABS Source: IMF Online Retail and eCommerce Australian Manufacturing Purchasing Managers Index (3 months average) $1,000 39.5 65 39.0 eCommerce Share (%) 60 $800 Sales (AUD Millions) 38.5 38.0 55 $600 37.5 50 37.0 $400 36.5 45 36.0 $200 40 35.5 0 35.0 35 2013/14 2014/15 2015/16 2016/17 May 09 May 10 May 11 May 12 May 13 May 14 May 15 May 16 May 17 Average monthly online Retail Sales Share of eCommerce Sales Source: Source: ABS / Colliers Research Note: ‘eCommerce’ defined as ‘pure-online sales’ Source: RBA, Property Insights PAGE 9

For personal use only 0 200 400 600 800 1,000 Available Space – Sydney CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 1) Source: Knight Frank Research Availability reducing across all key markets Market supply 1 Apr 11 Prime Aug 11 Dec 11 Apr 12 Secondary Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 Aug 17 Dec 17 0 200 400 600 800 1,000 1,200 1,200 Available Space – Melbourne Apr 11 Prime Aug 11 Dec 11 Apr 12 Secondary Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 Aug 17 Dec 17 0 200 400 600 800 Available Space – Brisbane Apr 11 Prime Aug 11 Dec 11 Apr 12 Secondary Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16 Apr 17 PAGE 10 Aug 17 Dec 17

CENTURIA INDUSTRIAL REIT I GOLDMAN SACHS SMALL AND MID-CAP CONFERENCE I 18 APRIL 2018 For personal use only Section 3 Portfolio overview