How we're creating value for investors

Strategic property acquisition

• LWF has recently agreed to acquire a 50% interest in a new development at the Western Sydney International Airport Business Precinct, underpinned by a long-term lease to anchor tenant O’Brien Glass.
• Leases with two other global tenants are currently subject to Heads of Agreement and are expected to be finalised during the September 2026 quarter. Assuming these transactions conclude, further details will be provided in the next quarterly report.
• The precinct will provide LWF investors with exposure to a brand-new property in a key growth corridor, underpinned by long-term leases to national tenants and positioned to benefit from significant infrastructure investment underway in the area.
• Over the past 12 months, the fund has sold non-core assets in New Zealand and Tasmania and increased its exposure to the key growth market of Sydney. This portfolio repositioning has contributed to LWF's +11.9% total return over the past 12 months.

 Artist's impression: Western Sydney International
 Airport Western Sydney NSW (50% LWF)

 919 Abernethy Road, High Wycombe WA (100% DIF4)

Leasing supporting rental growth

• Strong rental growth across the I&L sector since 2022 has positioned DIF4 to benefit from future embedded income growth. Across the fund's portfolio of more than 50 assets, market rents are currently estimated to be around 21% above existing contracted rents, creating an opportunity to increase rental income as leases are renewed.
• A recent example is DIF4's High Wycombe property in Perth, where a new five-year lease was secured at a rent 62% above the previous level, with the property remaining fully occupied throughout the leasing process.
• Management continues to proactively engage with tenants ahead of lease expiries to maintain occupancy, support income stability and capture further rental growth opportunities for the benefit of the fund's investors.

Treasury and debt management

• Multiple funds across the Direct platform have recently refinanced debt, reducing interest expense and extending the debt term.
• DIF4 strengthened its capital structure through the conversion of its $1.4bn debt platform to a secured position, delivering an approximate 40bps reduction in loan margin costs and extending average debt term by 1.1 years to 4.0 years, enhancing certainty of lender terms.
• Debt costs have also been reduced across Charter Hall Direct Office Fund (DOF) and other funds, alongside further extensions to debt term.
• These refinances were supported by a diversified group of major domestic and international banks, reflecting strong institutional lender demand for Charter Hall’s high-quality assets.

 10 Shelley Street, Sydney NSW (50% DOF)

 Artist's impression: Wingfield Development
 Wingfield SA (100% DIF4)

Developing for future income

• In South Australia, DIF4’s project in the industrial precinct of Wingfield remains on track to construct two new facilities totalling 14,300 sqm (completion due in 1H27).
• DIF4 has secured a 10-year pre-lease over approximately 50% of gross lettable area (GLA) to a leading international manufacturer, which provides early income visibility.
• The project benefits from a fixed price building contract to a tier 1 builder, providing certainty on the construction costs.
• On completion, the asset will align with the fund’s strategy of owning high-quality I&L assets that benefit from strong market rental growth and appeal to financially strong tenants.