Results Presentation 20 August 2015 Highlights Financial > Net - PowerPoint PPT Presentation

Investa Office Fund Financial Year 2015 Results Presentation 20 August 2015

Highlights Financial > Net profit $179.2 million (down 2.4%) > FFO 27.7 cpu (up 4.5%) and DPU 19.25 cpu (up 4.1%) > NTA up 27 cents to $3.62 (up 8.1%) Portfolio > $126 million (4.1%) increase in valuations over 21 assets > Leased ~55,000 sqm – another active period completing 124 deals > Sold final offshore asset, Bastion Tower for € 54.9 million – IOF’s $3.3 billion portfolio now 100% Australian > Divested 628 Bourke St at 14% premium; exchanged contracts to sell 383 La Trobe St at 31% premium > Completed IOF’s newest asset - 567 Collins St – to be followed by the development of Barrack Place, 151 Clarence St in 2016 Capital Management > Weighted average debt duration of 5.2 years > Low weighted average cost of debt of 4.0% > Maintained BBB+/stable credit rating IOF Financial Year 2015 Results Presentation 20/08/2015 2

Financial Metrics Summary 30 June 2015 30 June 2014 Change % Net profit (statutory) $179.2m $183.6m (2.4%) Funds From Operations (FFO) $169.9m $162.6m 4.5% FFO per unit 27.7c 26.5c 4.5% Distributions per unit 19.25c 18.50c 4.1% Net Tangible Assets (NTA) per unit $3.62 $3.35 8.1% Gearing (look-through) 1 28.8% 32.0% (3.2%) > Net profit $179.2 million – down 2.4% after European foreign currency translation reserve was transferred to the P & L, offset by positive investment property revaluations > FFO increased 4.5% to $169.9 million > As previously announced, the ATO is auditing the income tax returns for the Fund. Following the Independent Review of the ATO’s positions, the remaining focus of the audit is deductions claimed for foreign exchange losses 1. Refer to Appendix 7 for calculation methodology IOF Financial Year 2015 Results Presentation 20/08/2015 3

Capital Management

Robust capital management metrics > Diverse sources of debt with staggered maturity Key Indicators 30 June 2015 30 June 2014 profile: Drawn debt $936m $1,019m - Weighted average debt maturity 5.2 years Gearing (look-through) 1 28.8% 32.0% - No refinancing exposure >$200m in any one Weighted average debt cost 4.0% 4.7% year Weighted average debt maturity 5.2yrs 5.8yrs > Low cost of debt – 4% average in FY15: Interest rate hedging 43% 35% - Expect FY16 cost of debt to be 3.5 – 4% Interest cover ratio (look- 4.4x 4.9x through) - Hedging ratio 43% as at June 2015 S & P credit rating BBB+ BBB+ Debt Maturity Profile ($m) Average Cost of Debt Undrawn Bank Debt 220 6% Drawn Bank Debt 200 11 USPP ($A) 5% 180 5.2% MTN 160 5 4.7% 50 4% 140 4.0% 120 3% 100 70 189 80 145 2% 129 125 60 109 89 40 1% 73 66 62 20 7 0 0% FY16 FY17 FY18 FY19 FY20 FY25 FY26 FY27 FY28 FY29 FY13 FY14 FY15 1. Refer to Appendix 7 for calculation methodology IOF Financial Year 2015 Results Presentation 20/08/2015 5

Asset Management

Leasing demand for affordable space remains strong Leasing history > Leasing activity led by small tenants seeking 000’s sqm affordable space: 140 - ~55,000sqm of deals – with average take-up of 445sqm at rents of ~$655psm 120 > Continued success in Sydney: - FY14 acquisitions – Piccadilly and 6 O’Connell 100 Street – leasing well with 16,100sqm completed - North Sydney assets – 16,000sqm leased 80 > Fully leased in Melbourne: ~130,000 - 567 Collins Street completed with 78% pre- 60 commitment – and effectively 100% including income guarantee from Leightons ~80,000 40 > 12,100sqm of leasing deals completed in ~55,000 Brisbane 20 ~32,000 0 FY12 FY13 FY14 FY15 IOF Financial Year 2015 Results Presentation 20/08/2015 7

Strong valuation growth > Cap rate compression strongest for assets with long and secure income streams – expect this to continue into FY16 > Revaluations over 21 assets (97% portfolio) in FY15 – posting a $126 million increase over prior book values: - 1H15 - $13 million (1%) - 2H15 - $113 million (4%) > Benefiting from high exposure to Sydney and Melbourne – now 78% of portfolio – increasing 10% on average in 2H15 30 June 2015 valuation highlights Cap rate Key Drivers Valuation impact change 800 Toorak Road Car park completion and start of new lease to Coles $13.5m (+13%) -50bps 111 Pacific Highway Reduced vacancy and cap rate compression $15.9m (+11%) -75bps 105 Miller Street October 2015 rent review and cap rate compression $19.5m (+10%) -50bps 16 Mort Street Cap rate compression -25bps $7.3m (+9%) 99 Walker Street Nearing supermarket completion, cap rate compression -50bps $13.7m (+8%) 567 Collins Street Building completion and cap rate compression -38bps $18.9m (+8%) IOF Financial Year 2015 Results Presentation 20/08/2015 8

Portfolio overview > Net property income increased 8% to $186.9 Key Metrics 30 June 2015 30 June 2014 million: Net Property Income (NPI) $186.9m $173.1m - Boosted by full period contributions from Piccadilly and 6 O’Connell Street Like-for-like NPI change (1.3%) (0.4%) > Like-for-like NPI fell 1.3% – as anticipated – following higher FY15 vacancy in Brisbane 55,185sqm 130,160sqm Leased - Excluding 140 Creek Street, like for like NPI Tenant retention (by income) was 1.6% 62% 68% > Retention 62%: Occupancy (by income) 93% 93% - Increases to 79% excluding known departures Weighted average lease expiry of ASIC and Suncorp at 66 St Georges Terrace 5.2yrs 5.0yrs > Average incentive 21%: Face rent growth 3.1% 4.1% - Excluding effective deals 26% Average passing face rent $587psqm $557psqm Number of investments 22 23 IOF Financial Year 2015 Results Presentation 20/08/2015 9

Minimal near term lease expiries > I nvesta leased 12,100sqm across IOF’s Major Lease Expiries Brisbane assets: Property CBD Tenant Area (sqm) Expiry - Finalised leases over 6,100sqm at 239 George Street and 4,000sqm at 295 Vacant Ann Street 15 Adelaide St Brisbane 3,440 Vacant - Good interest in 140 Creek Street – 295 Ann St Brisbane 4,258 Vacant however lease-up is taking longer than 140 Creek St Brisbane 10,810 Vacant expected 66 St Georges Tce Perth 4,594 Vacant > 66 St Georges Terrace undergoing FY16 refurbishment – we have made Dec ’15 151 Clarence St Sydney Westpac 7,483 conservative lease-up assumptions Feb ‘16 151 Clarence St Sydney Telstra 3,089 > Development of 151 Clarence Street 140 Creek St Jun ‘16 Brisbane DTMR / DPW 8,819 scheduled to start in March 2016: FY17 - Will reduce FFO by $2.8m in FY16 383 La Trobe St Jun ‘17 Melbourne AFP 9,679 - Interest to be capitalised at average FY18 cost of debt on new development costs 6 O’Connell St Sydney Various 3,676 > Occupancy 100% in Melbourne and 98% in Sydney IOF Financial Year 2015 Results Presentation 20/08/2015 10

Leasing success from acquisitions > IOF’s $1.2 billion reinvestment program – funded Percentage of asset leased since acquisition with offshore asset sales – was targeted at % of NLA 60% assets and locations where Investa has 50% 55% 54% competitive advantage: 52% 40% - Leased over 74,000sqm, largely ahead of 30% underwriting 30% 30% 27% 20% > Subsequent value creation has been significant – 10% Fully with $116 million created (over cost): leased 0% 66 St 126 Phillip 99 Walker Piccadilly 567 Collins 6 O'Connell 242 - Represents average 10% valuation uplift over 1 Georges St St St St Exhibition cost Tce St - Value creation from leasing is offset by higher Valuation movement over cost 2 $m amortisations through the P & L % $39m 40 30% > Leasing new acquisitions has resulted in IOF 35 $33m 25% 27% 30 carrying a higher level of amortisation moving 20% 25 18% $20m 15% forward: 20 $14m 15 10% 11% $12m - ~80% of increase in FY16 amortisation is 4% 10 5% 6% 6% $5m 5 coming from acquisitions 0% 0 -5% -5 -8% -$7m -10 -10% 99 Walker 567 Collins 126 Phillip 242 Piccadilly 6 66 St St St St Exhibition O'Connell Georges St Tce 1. Excludes Leightons and Corrs Chambers Westgarth – leased prior to acquisition 2. Includes all costs – including stamp duty, capex, incentives, etc. IOF Financial Year 2015 Results Presentation 20/08/2015 11

Enhancing portfolio performance through innovation Insite Tenant Portal - insite.investa.com.au > Tenants are seeking value beyond just the quantum of rent – servicing their needs and enhancing their tenancy experience > We’ve extended amenity beyond the real estate with Insite – Investa’s proprietary tenant engagement platform: - Offers range of value-add services from dry cleaning to custom made suits - Provides a medium to connect and influence Investa’s tenants The Hive @ 295 Ann St > IOF to open its first business lounge - The Hive at 295 Ann Street – exclusive to Investa tenants and partners > Provides energising space for meetings, events, flex-space and focus work > Exploring innovative ways to reduce fit-out waste by partnering with Haworth – global leaders in furniture design > Unique offering and point of difference in Brisbane market – generating increased interest in 140 Creek and 295 Ann St IOF Financial Year 2015 Results Presentation 20/08/2015 12