Slide 1: Abacus Property Group HY19 Results Presentation
Slide 2: HY19 metrics
HY19 metrics NET STATUTORY TOTAL TANGIBLE GEARING PROFIT ASSETS ASSETS $127.8m $3.29 $2.7b 22.8% up 9% on HY18 up 3.5% on FY18 flat on FY18 down 50 bps on FY18 FFO pps PAYOUT = PER SECURITY RATIO i $72.0m 11.27¢ 9.25c¢ 82%! down 6.9% on HY18 down 18% on HY18 up 2.8% on HY18 UNDERLYING PROFIT 1. Adju
Slide 3: HY19 highlights
HY19 highlights = 9.2% like for like Office rental growth, driven by CBD exposure = Self Storage exposure has experienced 16% compound annual growth since HY14 = Redeployment of capital (in line with strategic evolution) into sectors assessed with best opportunity for long term returns. * $170 milli
Slide 4: Strategic priorities
Strategic priorities Commercial investment property = Focus on longer dated recurring earnings = Asset and development management = Capital partnering Self Storage = Organic growth = Acquisitions and development = Enhanced platform capability investments Capital partnering = Explore opportunities wi
Slide 5: Balance sheet allocation
Balance sheet allocation DECEMBER 2018 2 7 billion of = Total Assets! Core Non-core $2.2 billion $385 million JUNE 2018 $2.7 Core $2.1 billion billion of Total Assets? Non-core $449 million Residential £1 Office $985m A Developments $385m 1) Self Storage $835m Super ‘BZ Convenience $228m and Other R
Slide 6: Financial results
Slide 7: Abacus Property Group key financial metrics
7 Abacus Property Group key financial metrics KEY FINANCIAL METRICS AIFRS statutory profit! $127.8m $117.5m Funds from operations (FFO) $65.3m $79.3m Underlying profit? $72.0m $77.3m Funds from operations per security 11.27c¢ 13.74c Distributions per security 9.25¢ 9.00c Cashflow from operations $52
Slide 8: Balance sheet
Balance sheet = NTA per security grew by 3.5% to $3.29 during HY19, redeployment of capital into core sectors, income growth and cap rate compression KEY FINANCIAL METRICS = Balance sheet gearing now 22.8% — 50 bps reduction since FY18 NTA per security $3.29 $3.18 Abacus total assets $2,724m $2,718m
Slide 9: Valuation
9 Valuation INVESTMENT PORTFOLIO Office $985 $879 6.07% 6.23% Self Storage $835 $666 6.99% 7.45% Retail $228 $425 5.85% 5.83% Industrial & $152 $160 7.35% 8.31% Other Total Abacus $2,200 $2,130 6.45% 6.58% investment portfolio Abacus Property Group | HY19 Results Presentation Valuation uplift across
Slide 10: Investment portfolio
Investment portfolio = Office = Self Storage = Super convenience and other Retail
Slide 11: Office - CBD and select fringe
Office - CBD and select fringe Hl OFFICE $985m' Occupancy LFL rental growth WALE WACR Average CBD? rent Average fringe? rent CBD exposure? Fringe exposure® 1. Abacus ownership. Total asset value equates to $1.53 billion 2. Sydney and Melbourne 3, Remaining exposure is regional/suburban 11 Abacus Pro
Slide 12: Capital transactions — Office
Capital transactions — Office CHURCH STREET, RICHMOND VIC = Purchased land in 50:50 partnership with Salta Properties = Land acquisition price: $51 million’ = Acquisition date: February 2019 = Settlement date: May 2019 = To develop an A-Grade commercial complex in the innovative and creative Richmon
Slide 13: Self Storage — unique market investment
Self Storage — unique market investment SELF STORAGE $835m! 7.0% 2.3% Passing yield? RevPAM growth? 88.4% $252 Occupancy? RevPAM? 42 $286 Average length of stay Average rent psm? (months) 1. Portfolio value 2. Across established portfolio 13 Abacus Property Group | HY19 Results Presentation
Slide 14: Capital transactions — Self Storage
Capital transactions — Self Storage ACQUISITIONS DEVELOPMENTS = $54 million of Self Storage acquisitions completed during = Identified development pipeline of over $40 million will HY19 deliver more than 30,000sqm of net lettable area * $36 million of further acquisitions completed post HY19 = Addit
Slide 15: Super convenience and other Retail
Total portfolio value Occupancy WALE WACR 190-220 24,922 Coles Woolworths Aldi Kmart 100-130 18,556 Coles Woolworths? Aldi Abacus ownership 100% value. Note Abacus share is 50% Agreement for Lease entered into ona Abacus Property Group | HY19 Results Presentation
Slide 16: Capital transactions — realisations
Capital transactions — realisations Group is very cautious as macro factors continue to negatively impact on market conditions Residential realisations = Development projects — Reviewing short to medium term strategy, project by project = Land and mortgages — Seeking to repatriate capital from sever
Slide 17: Sustainability
Sustainability inability i: Reducing the sotnine, a Actively impact on our inareinedlin exploring environment what we do improvements while enhancing returns Introducing solar panels at our Self Storage sites Solar panel program across 40 Storage King sites Estimated to save 858 MWh of energy per an
Slide 18: New business initiatives
New business initiatives : "Capital partnering - x —s a "Strategic development partnering — —
Slide 19: Capital partnering on strategic priorities
Capital partnering on strategic priorities Develop with long term "I . { strategic ee-antite partnerships partners PESTA gynsenr ar =< Heitman LLC ee $170m August 2018 50% ISPT Stiper ee] Retall — ¢.g300ne = July 2018 50% Wing Tai seul sre suis) $95m May 2018 50% DEVELOPMENT INVESTWE! ESTIMATED ACQU
Slide 20: Summary & outlook
Slide 21: Outlook
21 Outlook We continue to execute upon our stated strategic objectives: = Increasing our investment in longer dated core plus and develop to core Office assets = Increasing our investment in Self Storage = Exploring capital partnering opportunities with experienced groups Capital allocation is focus
Slide 22: Important information
Important information The information provided in this document is general, and may not be suitable for the specific purposes of any user of this document. It is not financial advice or a recommendation to acquire Aba Property Group securities (ASX: ABP). Abacus Property Group believes that the info
Slide 23: Abacus Property Group
a . —_— ——_ Abacus Property Group HY19 Data Pack
Slide 24: Contents
Contents Abacus Property Group Overview Financial Performance Investment Portfolio Developments Glossary Important information 24 Abacus Property Group | HY19 Data Pack 25 26-31 32-37 38 39 40
Slide 25: About Abacus
About Abacus Abacus Property Group is a leading diversified Australian real estate investment trust that invests in real estate opportunities across Australia and New Zealand Abacus’ overarching strategy is to invest capital in real estate opportunities to deliver long term total returns and maximis
Slide 26: Segment balance sheet
L Segment balance sheet PROPERTY PROPERTY ABACUS BALANCE SHEET INVESTMENT DEVELOPMENT (Si) ($m) Commercial investment properties 1,178.4 1,178.4 1,274.0 Self Storage investment properties 773.9 773.9 662.0 PP&E, equity accounted and other investments, financial and other assets 160.8 22.2 — 228.0 is
Slide 27: Segment earnings
Segment earnings L COMMERCIAL SELF STORAGE DEVELOPMENT HY1 TAL HY18 TOTAL Rental income 48.7 36.9 85.6 80.3 Finance income! 24.2 24.2 24.9 Fee income? 6.1 6.1 43 Share of profit from equity accounted investments® 4 2.5 0.4 6.0 8.9 33.3 Sale of inventory 15.7 15.7 - Other income 0.6 0.4 1.0 3.0 Inter
Slide 28: Net tangible asset reconciliation
c Net tangible asset reconciliation HY19 FY18 Consolidated Group net assets 1,983.6 1,916.7 Less Total external non-controlling interest (45.7) (46.6) Total stapled securityholders’ interest in equity 1,937.9 1,870.1 Less Intangible assets and goodwill (82.4) (82.4) Deferred tax assets/liabilities (
Slide 29: Abacus cashflow analysis
. v Abacus cashflow analysis! 000 ICASHFLOWS FROM OPERATING ACTIVITIES Income receipts 117,509 Interest received 197 Distributions received 78 Income tax paid (24,561) Borrowing costs paid (13,345) Operating payments (88,667) Payment for land acquisition (2,829) NET CASHFLOWS FROM OPERATING ACTIVITI
Slide 30: Debt facilities
Debt facilities CAPITAL MANAGEMENT METI HY19 FY18 Total bank debt facilities $938m $891m Total bank debt drawn $662m $695m Term to maturity 3.5 yrs 3.8 yrs % hedged 43% 42% Weighted average hedge maturity 2.3 yrs 2.3 yrs Average cost of debt - drawn 41% 4.3% Group gearing! 22.8% 23.3% Look through g
Slide 31: Debt maturity profile as at December 2018
Debt maturity profile as at 31 December 2018 MOQ poe ee ence cee cence one conenopeeeemeneeemen ences coos cneccnnnnns sine sons sone sunesnesnnssuniae suns sone soos sonssneenuasuaus sues sons sons suesonesouisuususssss sons sseessnsonssnnasuuuesssessessssnssesne ciAvailable bank facility @ Drawn b
Slide 32: 2,200 2,130 1,365 1,464 6.45 6.58 197,565 223,537 91.2 91.3 3.7 4.1
2,200 2,130 1,365 1,464 835 666 6.45 6.58 34 35 66 62 197,565 223,537 91.2 91.3 3.7 4.1
Slide 33: Portfolio revaluations
Portfolio revaluations Revaluation process for Abacus resulted in a net increase in the investment properties values for HY19 of approximately 3.2% or $60.1 million Average cap rate across the Abacus commercial and self storage portfolios has decreased to 6.06% and 6.99% from 6.16% and 7.45% in June
Slide 34: Self Storage metrics
Self Storage metrics L PERFORMANCE METRICS AUS NZ HY19 FY18 PERFORMANCE METRICS HY19 HY185 Total Assets 54 12 661 622 Storage revenue 33.0 32.1 NLA (sqm) 241,245 61,657 302,902 287,725 Other revenue 3.9 3.5 Occupancy 88.3 88.7 88.48 89.44 Total revenue 36.9 35.6 Rental Rate (psqm) A$287 A$280 = A$28
Slide 35: Self Storage compound growth
Self Storage compound growth Portfolio value compound growth of 16.1% pa since HY14 900 . 90 mmm Portfolio size ($m-lhs) —Portfolio size (no. of assets-rhs) 800 80 700 70 600 60 500 50 400 ] 40 300 [| 30 Dec-13 dun-14 Dec-14 dun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 dun-18 Dec-18 85 Abacus Property
Slide 36: Self Storage indicative development pipeline
Self Storage indicative development pipeline 4 The current development pipeline represents 10% growth on our existing Self Storage portfolio We will continue to identify additional development opportunities within our existing portfolio and strategically reinvest subject to market conditions Over 45
Slide 37: Commercial portfolio metrics
Commercial portfolio metrics PORTFOLIO METRICS OFFICE RETAIL OTHER HY19 FY18 HY19 FY18 HY19 FY18 Portfolio ($m) 985 879 228 425 152 160 No. of assets 20 20 4 5 10 10 NLA (sqm)! 125,197 118,284 28,044 56,488 44,324 48,765 WACR (%) 6.07 6.23 5.85 5.83 7.35 8.31 Occupancy! (% by area) 88.4 86.9 89.8 92
Slide 38: Residential developments, land and mortgages
Residential developments, land and mortgages (OJEC TYPE EQUITY OAN INTEREST RATE SECURITY RETURNS RCL Portfolio NSW JV/Loan $44.6m $108.7m $153.3m. 1st Mortgagee 50% profit share Investment Funding Portfolio NSW Loan - $44.3m $44.3m 1st Mortgagee Grand Ave, Camellia NSW" Loan - $18.4m $18.4m 1st Mor
Slide 39: Glossary
Glossary TERM DEFINITION TERM DEFINITION AASB10 Australian Accounting Standard 10 LFL Like for like AICD Australian Institute of Company Directors MAT Moving annual turnover AIFRS Australian International Financial Reporting MWh Megawatt hour Standards BPS Basis points NABERS _ National Australian B
Slide 40: Important information
Important information The information provided in this document is general, and may not b itable for the specific purposes of any user of this document. It is not financial advice or a recommendation to acquire Abacus Property Group securities (ASX: ABP). Abacus Property Group believes that the info