ANNUAL REVIEW FY2017AN EXTRACT

AT ISPT, WE CONTINUE TO CREATE AND DELIVER MAJOR CAPITAL INVESTMENT AND DEVELOPMENT PROGRAMS ACROSS OUR PORTFOLIO WITH THE AIM OF CREATING HIGH QUALITY PLACES IN THE RIGHT LOCATIONS. A NUMBER OF PROJECTS HAVE BEEN SUCCESSFULLY COMPLETED IN FY2017 AND OTHERS ARE UNDERWAY.

ISPT CONTINUOUSLY REVIEWS ALL INVESTMENT SECTORS FOR POTENTIAL ACQUISITIONS WITH THE AIM OF CREATING HIGHER QUALITY AND RESILIENT PROPERTY PORTFOLIOS. WE MAKE ACQUISITIONS THAT PROVIDE FURTHER DIVERSIFICATION BY GEOGRAPHY AND SECTOR.

DEVELOPMENTS

ACQUISITIONS

271 SPRING STWork has commenced 271 Spring Street, Melbourne, an office tower that will be the new headquarters for Australian Unity complete with a historical façade. For completion mid 2019.

COLES PROPERTY ALLIANCE

The ISPT Retail Australia Property Trust acquired the remaining 25% shares in 20 former Coles Property Alliance assets in FY2017.

GEORGE PLACE

A significant redevelopment at 345 and 363 George Street and 24 York Street, Sydney is underway. The development will integrate a new centralised super lobby for the precinct, now known as George Place. For completion mid 2018.

THE MYER CENTRE BRISBANE

The ISPT Core Fund acquired a further 25% interest in The Myer Centre on 7 October 2016. The Fund now owns 75%, with JV partner Vicinity retaining 25%.

MANDURAH FORUM

Stage One of Mandurah Forum’s $350 million transformation in Western Australia’s growing Peel region opened on budget, on schedule and fully leased. The redevelopment of the Centre will be completed in early 2018.

447 COLLINS STREET

The ISPT Core Fund exchanged and settled a 50% freehold interest in the office and retail portion of 447 Collins Street, Melbourne.

ISPT IS COMMITTED TO CREATING GROWTH FOR PEOPLE AND PLACES THROUGH PROPERTY.

FY2017 HIGHLIGHTS

FY2017 HAS SEEN STRONG RESULTS FROM ISPT’S FUNDS, SOME OF THE HIGHLIGHTS INCLUDE:

16.2% $870M

26INCREASE IN TOTAL FUNDS UNDER MANAGEMENT DURING FY2017 TO BILLION$14.1

50 LONSDALEPROPERTY TRUST TOPS IPD PPFI INDEX FOR 3RD YEAR IN A ROW 1st

100 ST GEORGES TERRACE PERTH

AWARDED AUSTRALIA’S

FIRST 6 STAR NABERS IE RATING

INVESTED THROUGH PURCHASING

PROPERTIES

THE ISPT BUSINESS

COMMERCIAL

$6.3B

NUMBER OF PROPERTIES

129LETTABLE AREA

2,437,966sqm

RETAIL

$6.4B

INDUSTRIAL

$730m

RESIDENTIAL

$453m

ISPT OFFICESMELBOURNE, SYDNEY,

BRISBANE, PERTH

ARTIST’S IMPRESSION ARTIST’S IMPRESSION ARTIST’S IMPRESSION

ARTIST’S IMPRESSION

For over 20 years our properties have been meaningful places for the retailers, companies, government departments and communities that use them.

We generate returns for our Investors, which are some of Australia’s largest industry superannuation funds, and ultimately the more than 50% of Australian workers who have their retirement savings invested through us.

ISPT’s $14+ billion portfolio invests and develops commercial, retail, industrial and residential property in Australia. “We’re heightening our focus on the customer. The emphasis on customer experience is seeing us constantly extend and raise our offering in the office and retail sectors, generating strong returns and attracting customers,” Daryl Browning, Chief Executive Officer

OUR PROPERTY FUNDS

ISPT CORE FUND

TOP 5 CUSTOMERS

OUR FLAGSHIP FUND WITH A SECTOR-DIVERSE PORTFOLIO AND GEOGRAPHICALLY DISPERSED THROUGHOUT AUSTRALIA, SAW A BOOST TO PROPERTY PORTFOLIO OF 10.31% IN FY2017, TO $11.565 BILLION AND A NET TOTAL RETURN OF 13.57%.

THE FUND PROVIDES EXCELLENT EXPOSURE TO A HIGH-QUALITY PORTFOLIO OF PRIME ASSETS DIVERSIFIED BY SECTOR, LOCATION AND TENANT OCCUPATION. DURING FY2017 THE FUND COMPLETED THREE TRANSACTIONS TOTALLING $639.4 MILLION.

PROPERTY PORTFOLIOGREW BY

OCCUPANCY (BY AREA) AT

OUTPERFORMANCE OF THE IPD INDEX – 1 YEAR

10.31% 92.1% 152 BASIS POINTS

NAB Group

Wesfarmers

Department of Agriculture

Government Property NSW

Woolworths/ Big W

447 COLLINS STREET, MELBOURNE VIC

1 WILLIAM STREET, BRISBANE QLD

GEORGE PLACE, SYDNEY NSW

ARTIST’S IMPRESSION

271 SPRING STREET, MELBOURNE VICCASSELDEN, MELBOURNE VIC

SYDNEY CENTRAL 477 PITT, NSW

155 QUEEN STREET, BRISBANE QLD

WORLD SQUARE, SYDNEY NSW

MELBOURNE GPO, VIC

WESTFIELD DONCASTER, MELBOURNE VIC

MANDURAH FORUM, WA

ARTIST’S IMPRESSION

ARTIST’S IMPRESSION

ARTIST’S IMPRESSION

ISPT 50 LONSDALE STREET PROPERTY TRUST

ISPT RETAIL AUSTRALIA PROPERTY TRUST (IRAPT)

A SPECIAL PURPOSE VEHICLE CREATED TO DEVELOP AND MANAGE 50 LONSDALE STREET, A 66,000 SQM A GRADE COMMERCIAL BUILDING CONSTRUCTED BY ISPT IN 2006 AND LOCATED IN THE PARLIAMENTARY PRECINCT OF MELBOURNE’S CBD. THE PROPERTY INCREASED IN VALUE BY 15.2% IN FY2017.

THE TRUST HAS ONCE AGAIN PROVIDED INVESTORS WITH EXCEPTIONAL RETURNS FOR FY2017, AS WELL AS EXCELLENT EXPOSURE TO THE MELBOURNE COMMERCIAL OFFICE MARKET AND SUSTAINABILITY LEADERSHIP.

THE TRUST OWNED 35 NEIGHBOURHOOD SHOPPING CENTRES AND THREE SUBREGIONAL SHOPPING CENTRES AS AT 30 JUNE, 2017. THE TRUST’S INVESTMENT STRATEGY FOCUSES ON NON-DISCRETIONARY CONVENIENCE RETAIL.

DURING FY2017 IRAPT ACQUIRED THE REMAINING 25% SHARES IN 20 FORMER COLES PROPERTY ALLIANCE ASSETS AND MANAGEMENT CONTINUES TO PURSUE A MULTI-OPTION STRATEGY TO SOURCE ASSETS AND RELATIONSHIPS TO COMPLEMENT THE COLES PROPERTY ALLIANCE.

PROPERTY VALUE INCREASED BY

PROPERTY PORTFOLIO INCREASED BY

1ST IN THE IPD INDEX

FY2017 NET TOTAL RETURN

3RD CONSECUTIVE YEAR

5 STARS NABERS ENERGY RATING

2ND THE IPD RETAIL INDEX

DOF 1 ANNUALISED IRR (SINCE INCEPTION)

DOF 2 ANNUALISED IRR (SINCE INCEPTION)

15.2%

37% 12.41%

10.96% 16.15%

COOLUM VILLAGE, QLD

TAYLORS HILL VILLAGE, VIC

COLES PORT MACQUARIE, NSW

COLES SILKSTONE, BOOVAL QLD

SHOWGROUNDS VILLAGE, FLEMINGTON VIC

1st

TOP 5 CUSTOMERS

TOP 5 CUSTOMERS

Department of Health & Human Services

AustralianSuper

Attorney-General’s Department

Sustainability Victoria

Department of Immigration & Border Patrol

Wesfarmers

Woolworths

Priceline Pharmacy

Goodlife Health Clubs

Reject Shop

2nd

ISPT DEVELOPMENT AND OPPORTUNITIES FUNDS (DOF)ESTABLISHED TO ACHIEVE OPPORTUNISTIC RETURNS FROM INVESTMENT IN PROPERTY DEVELOPMENT ACTIVITIES.

VIRIDIAN AND INDIGO HAY STREET, SUBIACO WA

At ISPT, we take great care to ensure that the impact of our investment and development decisions is positive on the environment and the communities in which we operate.

Our Commitment to Responsible Investment includes:

ENVIRONMENTAL• Continuous reduction in our environmental • impact.• Ensuring our portfolio remains resilient to • • • climate change.

SOCIAL• Proactive support of, and engagement with • • local communities.• Ensuring each asset and development site in • • our office, retail and industrial portfolio is safe • for workers and visitors alike.

GOVERNANCE• Provision of an effective corporate governance • framework.• Active setting and monitoring of ISPT’s • • • • strategic direction to maintain alignment with • Investor needs.

ISPT continues to create a diverse and inclusive workplace. Some 96% of employees believe individual differences are respected at ISPT, and 89% of employees believe that senior leaders and managers promote a diverse and inclusive workplace.

We continue to be proud that women make up 53% of our workforce, and continue to look for opportunities for senior women to build their career with ISPT.

We also continue to actively participate in the Property Council of Australia’s Male Property Champions of Change and provide women the opportunity for mentorship. During FY2017, seven females participated in the 100 Women in Property mentoring program.

RESPONSIBLE INVESTING OUR PEOPLE

2,725 TONNESOF WASTE DIVERTED FROM LANDFILL IN FY2017

5,972 VOLUNTEER HOURSBY THE ISPT TEAM AND OUR PROPERTY MANAGERS IN FY2017

The ISPT Community Program was established in 1999 in recognition of the need to acknowledge and give back to the community. ISPT supports community initiatives in which our staff have a direct connection, regularly volunteer and are most passionate.

ISPT’S CORPORATE GOVERNANCE FRAMEWORK IS DESIGNED TO PROTECT AND ENHANCE INVESTOR VALUE.

As an unlisted proprietary company, ISPT is not legally required to comply with the ASX Corporate Governance Council Principles and Recommendations. However, in the interest of strong corporate governance, our Board chooses to follow them to the extent they are appropriate for ISPT’s business.

“The 2017 result reflects our commitment to quality investment management and developing and owning high-quality assets that are capable of outperformance in all market conditions,” James Cain, Chairman

ISPT COMMUNITY PROGRAM

CORPORATE GOVERNANCE

GENDER DIVERSITY RATIO AT ISPT

91EMPLOYEE

WORKPLACESATISFACTION

30FEMALE REPRESENTATION ON

ISPT BOARD OF DIRECTORS

% %

ISPT EXISTS SOLELY FOR THE BENEFIT OF OUR INVESTORS’ MEMBERS AND TO ASSIST THEM TO BUILD THE RETIREMENT SAVINGS OF WORKING AUSTRALIANS.

OUR INVESTORS

TELEPHONE 03 8601 6666 FAX 03 8601 6667 ABN 28 064 041 283 AFSL 247 280

www.ispt.net.au The complete Annual Review can be downloaded at www.ispt.net.au/about-ispt/annual-review

MELBOURNEBRISBANESYDNEYPERTH

Level 11, 8 Exhibition Street, Melbourne VIC 3000

Level 5, 100 Creek Street, Brisbane Qld 4001

Level 6, 24 York Street, Sydney NSW 2000

Level 4, 683-703 Hay Street Mall, Perth WA 6000

T 03 8601 6666

T 07 3270 7300

T 02 8239 8500