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Operational update

Focused on asset

+

income quality

Goodman has continued its strong operating

performance into the second half of the 2015

financial year, with sustained activity levels and

development momentum across our highly

diversified platform, spanning 16 countries.

Combined with the consistent and disciplined

execution of our business strategy, this is positioning

the Group for significant financial and operational

flexibility in future periods.

We have increased total assets under management

to $30.3 billion, with the main drivers being

$1.8 billion of development completions and

favourable currency movements. For the 2015

financial year, Goodman is estimating $700 million

in property revaluations, with significant contribution

from urban renewal sites and rising property values,

as investors seek higher yielding assets.

Our property services teams around the world have

achieved solid leasing results in the financial year to

date, with overall leasing activity of 2.5 million sqm

for the Group and our Partnerships. This leasing

success has underpinned stable occupancy of 96%

across our total portfolio.

A key focus for Goodman in the current low growth,

low interest rate environment is on our capital

recycling initiatives, to improve the quality of our

assets and income. To achieve this, we are

selectively selling assets across the Group and

our Partnerships where value has been maximised.

This has seen $1.4 billion of properties sold in the

financial year to date, mainly in Australia and the

United Kingdom (UK), with $320 million and $415

million of sales respectively.

In the UK, this activity has already helped to improve

overall portfolio quality, with occupancy in our

UK Business Parks portfolio increasing to its

highest level of 98% at the end of the March quarter.

Goodman has a further $500 million of assets

currently on the market, which reflects the ongoing

strong investor demand for high quality industrial

properties.

The proceeds from our asset sales programme are

being reinvested into the strength of our diversified

and growing development business and in targeted

investment opportunities. This in turn will drive higher

long-term returns and value creation for our

investment partners.

96

%

occupancy

71

developments currently

underway globally

Goodman continues

to build on the strong

operational performance

delivered in the first half

of the financial year,

sustaining robust activity

levels into the second half.

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INVESTOR INSIGHT

JUNE 2015