Charter Hall Retail REIT March 2017 Quarterly Operational Update

Consistent Portfolio Performance through Active Asset Management

The REIT’s anchor tenants reported solid growth of 2.8% for stores paying turnover rent with 35% of all stores now paying additional turnover rent. This is a significant improvement compared to the prior corresponding quarter in FY16 of 1.2% growth and 16% of stores paying turnover rent.

The occupancy of the REIT’s portfolio remained stable at 98.0%. Combined specialty rent growth on new leases and renewals was 1.1% for the nine months to 31 March 2017, a slight improvement on the prior corresponding period of 1.0%.

Specialty shop sales growth continued to slow post half year with MAT growth for the quarter at 0.5%. This is reflective of current trading conditions. Other key specialty metrics such as occupancy cost and average sales remain in line or have marginally improved post half year results.

Enhancing Portfolio Quality

The REIT confirmed at its 2017 half year results, that it will continue to reduce exposure to freestanding and smaller neighbourhood assets to optimise returns via acquisition of larger, projected higher growth assets, development, buy back of units or a return of capital.

The REIT executed on this strategy during the first half of 2017 by divesting $71.2 million of assets at a 10.4% premium to the June 2016 book values at a combined yield of 5.8% . These proceeds were reinvested into the acquisition of Arana Hills for $67.1 million in December 2016.

During the quarter ending 31 March 2017, Woolworths Rosehill was contracted for sale at $13.0 million reflecting a 4.0% premium to the 31 December 2016 book value. In addition the REIT is marketing approximately $170 million of assets and continues to assess acquisition opportunities.

The REIT has also continued its capital management strategy to optimise shareholder returns, buying back $1.8 million of units at $4.34 during the quarter. In addition the REIT completed the refinance of