24 Nov

2021 Annual General Meeting

LEVEL 5, 50 PITT ST, SYDNEY NSW 2000 SCAPROPERTY.COM.AU Shopping Centres Australasia Property Group RE Limited ABN 47 158 809 851 AFS Licence 426603 as responsible entity of the Shopping Centres Australasia Property Retail Trust ARSN 160612788 and as responsible entity of the Shopping Centres Australasia Property Management Trust ARSN 160612626 24 November 2021 The Manager ASX Market Announcements Office ASX Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam 2021 ANNUAL GENERAL MEETING | SCA PROPERTY GROUP (ASX: SCP) Attached are the following presentations which will be presented on Wednesday, 24 November 2021 at the 2021 Annual General Meeting: • Chairman’s address and presentation to the meeting; and • CEO’s address and presentation to the meeting. SCA Property Group Encl. This document has been authorised to be released to the ASX by the Company Secretary of SCP. ENDS Media, Institutional investor and analyst s , contact : Mark Fleming CFO SCA Property Group (02) 8243 4900 Unitholders should contact SCP Information Line on 1300 318 976 (or +61 1300 318 976 from outside Australia) with any queries. AGM Chair Address 1 Chair’s Address (slide 3) My presentation today will cover the following: • SCA’s financial performance and returns to unitholders; • the impact of the COVID-19 pandemic on our business; • SCA’s strategy; and • a report on governance matters. 1. Financial Performance and Returns to Unitholders As I have done at recent AGMs, I will focus on returns to unitholders and leave it to our CEO, Anthony Mellowes to present our FY21 results and to update you on the outlook for FY22. Returns to unitholders (slide 4) Our commitment to our unitholders, is to deliver secure and sustainable earnings and distributions, which grow over time. FY21 was another challenging year for SCA, due to COVID-19, but we continued to deliver solid results: • FY21 Statutory Profit After Tax was $462.9 million, up 441% compared to FY20 • FY21 Funds From Operations was 14.76 cents per unit, up by 0.8% compared to FY20 • FY21 distributions to unitholders totalled 12.4 cents per unit. That comprised 5.7 cents per unit for the first half, and 6.7 cents per unit for a strong second half. This improved on the 5.0 cents per unit paid for the second half of FY20. Steve Crane, our Deputy Chair and I recently met with several of our institutional investors and with representatives of the Australian Shareholders Association. They were pleased with our FY21 results and with the quarterly update and guidance which we issued last month. AGM Chair Address 2 We are guiding AFFO of “at least 15 cents per unit” in FY22. If we achieve that, and we expect to, distributions for FY22 will be back on the growth trend we established pre-COVID. Unit Price Performance (slide 5) The COVID-19 pandemic impacted the SCP unit price in FY20 and FY21. Our units closed at $2.18 on 30 June 2020. Pleasingly, SCP’s unit price has risen significantly since then, following the release of our FY21 results and October market update and guidance. Units have recently been trading above $2.80. At the time of our Initial Public Offering in December 2012, the unit price was $1.40, so our unit price has doubled since then and while paying distributions every year. Total Unitholder Return (slide 6) As you know, Total Unitholder Return measures both unit price growth and distributions. In the last five years, SCA has delivered total unitholder returns of 44.8%, outperforming many of our listed retail property peers and outperforming the ASX200 A-REIT Accumulation Index. We have grown the total value of our portfolio to over $4 billion. Net Tangible Assets per unit increased to $2.52 at 30 June 2021. We continue to pursue a successful acquisition strategy, with acquisitions of $452 million completed in FY21 and significant additional acquisitions completed since 1 July 2021. Unitholders saw a strong property valuation uplift of $354 million in our June results. And, based on the performance of our centres and prices being paid for assets like ours in the market, we expect to announce a further valuation uplift next month. AGM Chair Address 3 2. Impact of COVID 19 Pandemic (slide 7) I will speak to impacts on our operating results, on our property valuations, and on our people. i. Impact on our operating results In FY21 the COVID-19 pandemic and lockdowns continued to disrupt our business and impact our operating results. Anthony will elaborate and further details are set out in our Financial Statements. Some of our specialty tenants suffered lower sales due to lockdowns and restrictions, particularly during the Victorian lockdowns. SCA provided $10.5 million of rental assistance, in the form of rental waivers and deferrals, to over 800 of our 2,000 tenants to help them through this difficult period. Pleasingly, we saw a strong rebound once lockdowns and restrictions eased, with all tenant categories achieving positive sales growth for the full FY21 year. This rebound allowed us to achieve positive leasing spreads in the second half of FY21, and our rent collection rates returned to pre-pandemic levels by the end of FY21. The more recent NSW and Victorian lockdowns also had an impact. But we have learnt a lot about managing lockdowns and were able to limit the impact. We have again seen a robust rebound. ii. Impact on property valuations When the pandemic first hit in early 2020, there were expectations that retail property values might decline, across the board. Some did, particularly lower quality regional and sub-regional assets. But our portfolio of convenience-based neighbourhood and smaller sub-regional convenience centres has proven to be very resilient. Indeed, as I mentioned, we have seen increases in the value of our portfolio. AGM Chair Address 4 iii. Impact on our people The pandemic has subjected our management and staff to stress and anxiety in both their working environment and their personal lives. They have responded magnificently, and our senior management team have taken some great initiatives to make life a bit easier for those most severely affected. The Board and management team have worked very well together but significant demands were made on Board members, particularly as our numbers were down. I take this opportunity to thank my Board colleagues for their extra effort, strong commitment and contributions during this difficult period. 3. Strategy (slide 8) The Board keeps our strategy under close review. It’s a strategy which has served us well. Our core strategy remains unchanged, but we will continue to adapt it to take advantage of suitable growth opportunities. Our focus is serving our local communities for their everyday shopping needs. We will execute by: o partnering with our supermarket anchor tenants to provide convenient, local supermarket offerings, including last mile logistics for online fulfilment, click & collect and pick up facilities; o actively managing our centres to ensure that we have sustainable speciality tenants, providing predominantly non-discretionary goods and services, and paying fair, sustainable rents, and o implementing our ESG initiatives. We will continue to pursue suitable, accretive acquisition opportunities, utilising our management expertise and extensive industry knowledge, and our strong balance sheet. We are actively exploring funds management opportunities which fit with and enhance our strategy, to broaden and diversify our revenue streams and provide growth opportunities. AGM Chair Address 5 Above all, the Board remains committed to our key objective, which is to deliver secure and sustainable earnings and distributions, which grow over time. And we have the right management team to deliver that outcome to unitholders. 4. Governance Matters (slide 9) i. Our Management Team At the beginning of the meeting, I introduced our Key Management Personnel, Anthony Mellowes our CEO and Mark Fleming our CFO. Anthony and Mark are a particularly capable and experienced team. Their skills complement each other, and they work well as a leadership team. Their collective knowledge and experience has helped get SCA where we are and successfully steered us through the challenges posed by the COVID-19 pandemic. Anthony and Mark are supported by a relatively small but capable and effective team. We have a good combination of experienced managers, supported by some very talented young people. Having built this team, we certainly do not want to lose them. So, staff retention is a top priority, in a very competitive market for property talent. I take this opportunity to acknowledge our team, and to thank each of them for their commitment and hard work, for the results they have delivered, and for the way they have responded to the challenges posed by the pandemic. During the recent meetings with institutional investors and ASA, they all went out of their way to acknowledge the strength of our management team. They respect our team, and they trust them to deliver on our strategy. ii. Sustainability Strategy Anthony will report on our relaunched sustainability strategy, but I particularly wanted to acknowledge the progress made in the last twelve months. SCA has set a net zero target for scope 1 and scope 2 carbon emissions by 2030, and we have a credible, detailed plan to achieve that target, which Anthony will outline. AGM Chair Address 6 The market response to our sustainability strategy, from both institutional and retail investors, from analysts, from proxy advisors, and from the communities we serve, has been gratifying. The Board strongly supports our sustainability strategy which discharges our responsibilities to society, but also strengthen our business and delivers good outcomes for unitholders. iii. The Board Dr Kirstin Ferguson retired as a Director, effective 17 August 2021. Kirstin had been a Director of SCA since 2015. Kirstin’s extensive knowledge and experience, particularly in safety and governance, has been invaluable to the Board. I thank Kirstin for her contribution and wish her well for the future. Mark Lamb, our General Counsel and Company Secretary, resigned as Company Secretary on 31 December 2020 and retired as an employee of SCA on 1 July 2021. Mark was appointed General Counsel and Company Secretary before we listed in 2012. He played a significant role in our successful listing, and he has also played a significant role in the growth and evolution of SCA. On behalf of the Board, I thank Mark for his long and valuable service to SCA and wish him well. I am pleased to report that we are well advanced with the search to identify and appoint two additional independent, Non-Executive Directors. One appointment is imminent. I expect that appointment will be announced next month. We are also in discussions with a second candidate, who has complementary skills, to join us in the first half of 2022. I have been considering my own position, in consultation with my Board colleagues. I have indicated to my Board colleagues that I wish to retire from the Board, following the November 2022 AGM. The Board has a well-developed succession plan in place and ample time to consider the transition to a new Chair. AGM Chair Address 7 I am totally committed to continue to serve you, to the best of my ability, until the day I retire. Finally, I acknowledge that 2021 has again been a difficult and stressful time for our unitholders. Thank you all for your continuing support, and thank you again for taking the time to join us virtually here today. I am just sorry we could not meet in person. I will now hand over to Anthony. AGM CEO Address 1 CEO’s Address (slide 10) Good afternoon, Ladies and Gentlemen. My name is Anthony Mellowes, and I am the Chief Executive Officer of SCA Property Group ( SCP ). Phil Clark has outlined the Group’s achievements since listing and this afternoon I will run through some of our key achievements for FY21 and update our outlook for FY22. High Quality Portfolio (slide 11) For those of you not familiar with the SCP portfolio, it consists of: • 99 shopping centres across Australia; • Approximately 48% of our income is derived from Coles, Wesfarmers and Woolworths; and • As at 30 June 2021, our portfolio was valued at approximately $4 billion, and we now have approximately 2,150 Specialty Tenants, with a total occupancy across the portfolio in excess of 97%. FY21 Highlights (slide 12) I will now take you through some of the key highlights for the financial year ended 30 June 2021 and towards the end of my presentation, the outlook for SCP for FY22. Whilst our earnings continued to be impacted by the COVID-19 pandemic, we saw a strong rebound in the second half of FY21. • We delivered Funds from Operations of 14.76 cpu, an increase of 0.8% on the prior financial year. • This enabled us to pay distributions to unitholders of 12.4 cpu, which was a decrease of 0.8% on the prior year. This represented a payout ratio of around 98.5% of AFFO. AGM CEO Address 2 • Our total Funds from Operations was $159 million for the year which was an increase of 12.9% on the prior year. Our net profit after tax was $462.9m, which was an increase of 440% on the prior year. • Our gearing as at 30 June 2021 was 31.3%, which is well within our stated policy range of 30-40%. • Our NTA at 30 June 2021 was $2.52, up by 13.5% on the prior year, with a portfolio weighted cap rate of 5.9%. • Our portfolio occupancy was 97.4%. Speciality vacancy remained stable at 5.1% which is consistent with the prior period. • We acquired 7 convenience-based centres and some adjoining properties during the period for $452.4 million, and we contracted another 2 centres in June 2021, which settled in the first quarter of FY22. Key Achievements (slide 13) Whilst some of our tenants suffered lower sales due to COVID-19 lockdowns and restrictions, particularly in Victoria, we saw a strong rebound once lockdowns ended and restrictions eased. Our convenience-based centres have benefited from the shift to shopping locally, and our customer principle for the past six years of LOVE LOCAL SHOP LOCAL ACT LOCAL has never been more relevant. Our supermarket and discount department stores benefited from customers eating at home and staying local, which drove strong sales growth, and, in turn, increased turnover rent. Additionally, our specialty tenants demonstrated remarkable resilience and adaptability throughout the year and recovered quickly following the easing of restrictions. AGM CEO Address 3 As a result of their strong trading performance, most of our tenants were able to resume paying their full rent, and across the entire financial year we were able to collect 96% of invoiced rent. We did, however provide $10.5 million of rental assistance to over 800 specialty tenants. Another consequence of our tenants’ strong sales growth was the positive rental reversions we were able to achieve in the second half of the period, with renewal spreads of 1.6% and new lease spreads of 3.0%. We are confident of continuing to achieve rental growth into the future on account of our rents being low compared to our peers, with a specialty occupancy cost of only 8.6%. During the period our valuations increased by $409.4 million, or 13.0%. Our balance sheet remains in a strong position, with our gearing at 31.3% which is within our target range of 30% - 40%. Our weighted average cost of debt was 2.4% with a weighted average term to maturity of 5.3 years. We expect cap rates for convenience-based centres to continue to compress, with demand for quality convenience-based centres to remain strong. Based on the transactional evidence, we are seeing in the market, we expect our NTA will increase in December 2021 once our next valuation cycle has been completed. Acquisitions (slide 14) As I noted earlier, during the period we continued to grow our portfolio in a disciplined manner. We acquired 7 convenience-based centres for $452.4 million during FY21 and contracted to acquire a further 2 centres which settled in July, for a combined total of $574.2 million. Historically, on average we have acquired approximately $240 million of centres each financial year, and so FY21 was a busy year for us on the acquisition front. We have continued this momentum through FY22, settling on 2 centres in July which were contracted in June 2021 and also contracting to acquire Moggill Village, a neighbourhood centre in Brisbane for $54.5 million, 3 assets from the SURF 3 fund for $53.6 million, and Delacombe Town Centre in Ballarat for $112.0 million. AGM CEO Address 4 We have an opportunity to continue to consolidate the fragmented ownership of the convenience-based retail sector by remaining disciplined in our approach, and utilising our management capability, industry knowledge and funding ability to source and execute acquisition opportunities, both on and off market. Funds Management (slide 15) Our SURF 1 and SURF 2 funds were wound up during the period, crystalising an internal rate of return of 11% and 12% respectively. Whilst not during FY 21, and as I noted previously, earlier this month our SURF 3 fund also sold its remaining assets to SCA for $53.6 million which also represents an approximate 11% internal rate of return for the SURF 3 investors. These are very pleasing results for the SURF unitholders. As the Chair commented, we are continuing to explore funds management opportunities in FY22. Sustainability (slide 16) Whilst LOVE LOCAL SHOP LOCAL ACT LOCAL remains a core focus for SCA, we also understand that loving local communities means acting on climate risk that could impact those communities. We therefore decided to relaunch our sustainability strategy this year to focus our efforts on 6 keys areas where we can have the most impact in our local communities, being: - Energy and Carbon - Water - Waste - Leading local - Health and wellbeing; and - Diversity and inclusion. AGM CEO Address 5 (Slide 17) In each area we have set ourselves challenging, but achievable targets, and we are very proud to have committed to achieving net zero carbon by 2030 for our scope 1 and 2 emissions. We intend to achieve our net zero target by installing solar panels at many of our centres over the next 9 years, starting with the installation of 7.5 MW of solar panels on our WA centres during FY22. In addition to our net zero commitment and the relaunch of our sustainability strategy, some additional sustainability highlights achieved during FY21 include: - $4.1 million invested in sustainable initiatives; - $21.2 million investment approved for sustainability initiatives in FY22, including a $13.6 million investment in solar generation representing 7.5MW of solar capacity; - 3,045MWH of solar power generated from the roofs of our centres in calendar year 2020; - 1,634 tonnes of greenhouse gasses saved through solar generation in calendar year 2020; - 40/40/20 gender target adopted and achieved for our Board and senior leadership team; and - 128 families supported through our partnership with the Smith Family. Core Strategy Unchanged (slide 18) SCP’s strategy has remained unchanged since we listed 9 years ago, and a lot has changed in 9 years particularly the challenges facing the retail industry as a result of the pandemic. My senior team and I in conjunction with the Board spend a lot of time challenging ourselves as to whether we in fact have the right strategy or whether we should vary or change it. We are unified in our belief that our strategy is in fact the correct AGM CEO Address 6 strategy for these challenging times in the retail industry. We are seeing an increasing propensity to shop local which our centres are ideally located to cater to, as well as an increasing use of our centres by tenants not only as retail outlets but also as last mile logistics centres for online purchase fulfillment and click & collect. We will continue to deliver defensive, resilient cashflows to support secure and growing long term distributions to our unitholders. We will do this by continuing to focus on convenience-based retail centres, which are weighted towards the non- discretionary retail segments of food, pharmacy & medical and retail services. These are “necessities” for the everyday spend of households. The benefit of these retail categories is that there is very low volatility, and they are required by all demographics, every day of every week of the year. We are focused on continuing to deliver growth by progressing our development pipeline, and actively exploring additional funds management opportunities that will broaden and diversify our revenue streams in a capital efficient way. We will continue to have an appropriate and conservative capital structure and will continue to seek growth opportunities which suit our risk profile in a very disciplined way. (Slide 19) We believe that the store-based fulfilment model will remain the predominant model for online grocery fulfilment in Australia, notwithstanding the growth of online retailing during the pandemic, on account of Australia’s relatively low population densities, large distances, established existing supply chains and high temperatures. Our centres are ideally located within local communities, making them well suited for last- mile logistics. Both Coles and Woolworths are using our centres for both pick up, and home delivery. Importantly for SCA, online sales are included in the definition of turnover in our supermarket and discount department store leases, meaning that we can participate in this upside by way of turnover rent. AGM CEO Address 7 Key Priorities and Outlook (slide 20) SCP will continue to deliver on its stated strategy in FY22, focusing on optimising our core business by: • Serving our local communities for their everyday needs; • Partnering with our supermarket anchors to improve their online offer; • Actively managing our centres to ensure that we have successful speciality tenants paying appropriate rents; and • Executing on our sustainability initiatives. We will focus on our growth initiatives by: • seeking value accretive acquisition opportunities consistent with SCP’s strategy and investment criteria; • progressing the identified development pipeline; and • consider further funds management opportunities. We will actively manage our balance sheet to maintain diversified funding sources with long weighted average debt expiry and a low cost of capital consistent with our risk profile. Of course, if there is any material change to the current macro-economic conditions our strategy will need to adapt to these changes but at this stage of the property cycle I believe that maintaining our gearing at the lower level of our preferred range is the appropriate setting. As outlined in our Trading update and FY22 guidance announcement of 19 October 2021, the sales performance of our portfolio has remained resilient, our cash collection rates will continue to improve as the lockdowns for NSW and Victoria are removed and I reiterate our guidance for FY22 being: AGM CEO Address 8 • for Distribution per unit of at least 7.1 cents per unit for first half to December 2021; and • Distribution per unit of at least 7.9 cents per unit for the second half, being full year FY22 AFFO guidance of at least 15 cents per unit. Thank you for your time this afternoon. I will now hand back to Phil. ANNUAL GENERAL MEETING Wednesday, 24 November 2021 Marketown West, NSW Cooloola Cove, QLD AGENDA CHAIR’S ADDRESS CEO’S ADDRESS FORMAL BUSINESS GENERAL QUESTIONS CHAIR’S ADDRESS Philip Marcus Clark AO 1. FINANCIAL PERFORMANCE AND RETURNS TO UNITHOLDERS 2. IMPACT OF COVID-19 PANDEMIC 3. STRATEGY 4. GOVERNANCE MATTERS 4 FUNDS FROM OPERATIONS CENTS PER UNIT AND DISTRIBUTION PER UNIT SCP had delivered consistent and growing earnings and distributions, until the COVID-19 pandemic struck. Consistent FFOPU growth (cents per unit) Consistent DPU growth (cents per unit) 11.0 11.4 12.2 13.1 13.9 14.7 12.5 12.4 15.0 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 guidance 12.4 12.8 13.8 14.7 15.3 16.3 14.7 14.8 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 1 Assuming that there are no further government interventions in response to the COVID-19 pandemic, we forecast that Adjusted Funds From Operations (“AFFO”) per unit, and therefore Distribution per unit (“DPU”), for the first half of FY22 will be at least 7.1 cents per unit and for the second half of FY22 will be at least 7.9 cents per unit (full year FY22 AFFO guidance of at least 15.0 cents per unit). 1 5 1.00 1.40 1.80 2.20 2.60 3.00 SCP ASX200 A-REIT UNIT PRICE PERFORMANCE SCP’s unit price has traded strongly since the release of FY21 results and FY22 quarterly update and guidance Source: IRESS, as at 19 November 2021 19 February 2020 $3.17 all-time high 26 November 2012 $1.40 IPO issue price 19 November 2021 $2.84 6 TOTAL UNITHOLDER RETURN 1 Over the last five years SCP has delivered total unitholder return which has outperformed the ASX200 A-REIT Accumulation Index Since 1 July 2016 to 30 June 2021 5 years 1. Total unitholder return includes both distributions to unitholders and unit price appreciation. 44.8% 32.5% SCP ASX200 A-REIT Accumulation Index 7.7% 5.8% SCP ASX200 A-REIT Accumulation Index 5 year Compound Annual Growth Rate (%pa) 2. IMPACT OF COVID-19 PANDEMIC Chair’s Address 1. IMPACT ON OUR OPERATING RESULTS 2. IMPACT ON OUR PROPERTY VALUATIONS 3. IMPACT ON OUR PEOPLE 3. STRATEGY Chair’s Address 4. GOVERNANCE MATTERS Chair’s Address 1. OUR MANAGEMENT TEAM 2. SUSTAINABILITY STRATEGY 3. THE BOARD CEO'S ADDRESS Anthony Mellowes Soda Factory, QLD slide PORTFOLIO OVERVIEW Weighting towards food, health and retail services (non-discretionary) 1. Annualised gross rent excluding vacancy and percentage rent 2. Mini Majors represent 12% of annualised specialty gross rent. Mini major tenants have been split across the relevant categories 3. Woolworths now excludes Endeavour Drinks (1.5% of gross rent) 4. Wesfarmers includes Kmart 2.3%, Bunnings 0.5% and Officeworks 0.2% 5. Other majors includes Aldi, Dan Murphys, Farmer Jacks and Grand Cinemas 6. At 30 June 2021 Number of centres Number of specialties GLA (sqm) Site Area (sqm) Occupancy (% GLA) Value ($m) WALE (yrs) Weighted average cap rate (%) Neighbourhood 80 1,459 508,464 1,730,858 97.5% 2,989.8 7.1 5.77% Sub-regional 11 552 226,211 608,366 97.1% 955.1 7.2 6.35% Freestanding 1 - 9,719 11,990 100.0% 55.1 14.3 5.50% At 30 June 2021 92 2,011 744,394 2,351,214 97.4% 4,000.0 7.2 5.90% FY22 Acquisitions 7 143 61,218 164,235 98.4% 347.5 7.4 5.44% At 24 November 2021 99 2,154 805,612 2,515,449 97.5% 4,347.5 7.2 5.86% Tenants by Category (by gross rent) 1,3,6 Geographic Diversification (by value) 6 Specialty / Mini-Major Tenants (by gross rent) 1,2,6 11 Woolworths 3 26% Big W 5% Coles 12% Wesfarmers 4 3% Other Majors 5 2% Specialties 52% Fresh Food/Food Catering/Liquor 33% Services 21% Pharmacy & Health Care 21% Apparel 8% Discount Variety 5% Petrol 2% Other Retail 10% VIC 17% WA 12% NT 1% NSW 31% QLD 24% SA 5% TAS 10% slide FY21 HIGHLIGHTS FINANCIAL PERFORMANCE Net Profit After Tax 1 $462.9m, up by 441.4% FFO per unit 2 14.76 cpu, up by 0.8% Distribution per unit 2 12.40 cpu, down by 0.8% ACTIVE PORTFOLIO MANAGEMENT Portfolio occupancy 6 97.4% Acquisitions 8 $452.4m Portfolio weighted average cap rate 7 5.90% Specialty vacancy 6 5.1% CAPITAL MANAGEMENT NTA per unit 4 $2.52, up by 13.5% Gearing 3 31.3%, up by 5.7% Cost of debt 5 2.4% pa Weighted average debt maturity 5 5.3 yrs 1. Net Profit After Tax is as per the Financial Report, for the year ended 30 June 2021 compared to the year ended 30 June 2020 2. FFO per unit is a non-IFRS measure, for the year ended 30 June 2021 compared to the year ended 30 June 2020. Final distribution of 6.70 cpu in respect of the six months ended 30 June 2021 will be paid on 31 August 2021. First half distribution of 5.70 cpu was paid on 29 January 2021. “cpu” stands for Cents Per Unit 3. At 30 June 2021, compared to 30 June 2020. Gearing is calculated as Finance debt, net of cash (with USD denominated debt recorded as the hedged AUD amount) divided by total tangible assets (net of cash and derivatives) 4. At 30 June 2021, compared to 30 June 2020 5. At 30 June 2021. The corresponding numbers at 30 June 2020 were weighted cost of debt of 3.5% and weighted average debt maturity of 5.1 years 6. At 30 June 2021. The corresponding numbers at 30 June 2020 were portfolio occupancy of 98.2% and specialty vacancy of 5.1% 7. At 30 June 2021. Weighted average capitalisation rate at 30 June 2020 was 6.51% 8. During the period we acquired Auburn Central (New South Wales) for $129.5m, Bakewell Shopping Centre (Northern Territory) for $33.0m, Bakewell petrol station (Northern Territory) for $6.4m, vacant land adjacent to the Greenbank (Queensland) neighbourhood centre for $10.0m, Cooloola Cove (Queensland) for $18.6m, Katoomba Marketplace (New South Wales) for $55.1m, Mt Isa (Queensland) for $44.2m, Warnbro Fuel (Western Australia) for $5.1m, Marketown East (New South Wales) for $82.0m and Marketown West (New South Wales) for $68.5m, excluding transaction costs. 12 slide KEY ACHIEVEMENTS Strong rebound in second half of FY21 • Our convenience-based centres have benefited from the shift to shopping locally – Anchor tenants have experienced strong sales growth and turnover rent has increased – Specialty sales recovered quickly following the easing of restrictions – Strong rebound in leasing spreads in the second half – Cash collection rates returned to pre-pandemic levels by the end of the period • We have continued to progress our sustainability program, including setting a Net Zero target for scope 1 and 2 carbon emissions by 2030 • COVID-19 negatively impacted some of our specialty tenants during FY21 – We provided $10.5m rental assistance to over 800 tenants – The impact of current restrictions in a number of States on the FY22 financial year is uncertain, however we expect specialty tenants to again rebound quickly once restrictions are eased • We contracted to acquire 9 convenience-based centres for $574.2m in FY21 – The acquisitions of seven centres for $452.4m were completed during the period – In June 2021 we agreed terms to acquire two further centres being Drayton for $34.3m and Raymond Terrace for $87.5m. Settlement of both transactions occurred in July 2021 • Wind-up of SURF1 and SURF 2 completed during FY21 achieving an IRR of 11% and 12% respectively for unitholders since the funds commenced in 2015 and 2017 respectively • Valuation uplift of $409.4m (or 13.0%) for like-for-like properties during FY21 • Balance sheet remains in a strong position – Gearing of 31.3% is within our target range of 30-40% – Weighted average cost of debt is 2.4% with a weighted average term to maturity of 5.3 years – Cash and undrawn facilities of $290.6m • FY21 FFO per unit of 14.76 cpu represents an increase of 0.8% vs FY20 • FY21 Distributions of 12.40 cpu represents a decrease of (0.8)% vs FY20 EARNINGS & DISTRIBUTIONS OPTIMISING THE CORE BUSINESS GROWTH OPPORTUNITIES CAPITAL MANAGEMENT 13 slide ACQUISITIONS IN FY21 AND FY22 14 Centre Type Acquisition Date Anchor GLA (sqm) Specialty GLA (sqm) Total GLA (sqm) Occupancy (% GLA) Total Purchase Price ($m) Implied Fully Let Yield Acquired Properties Bakewell Shopping Centre Neighbourhood Sep 2020 4,854 1,553 6,407 96% 33.0 7.2% Bakewell Petrol Station Dec 2020 n/a n/a n/a 100% 6.4 6.1% Auburn Central Neighbourhood Dec 2020 5,437 8,090 13,527 95% 129.5 6.0% Greenbank Development Dec 2020 10.0 Katoomba Marketplace Freestanding Feb 2021 9,719 - 9,719 100% 55.1 5.6% Cooloola Cove Neighbourhood Feb 2021 3,140 1,160 4,300 98% 18.6 5.7% Warnbro Fuel Apr 2021 n/a n/a n/a 100% 5.1 5.7% Mt Isa Neighbourhood Apr 2021 7,879 1,806 9,685 97% 44.2 7.5% Marketown East Sub Regional Jun 2021 11,677 5,127 16,804 95% 82.0 6.1% Marketown West Neighbourhood Jun 2021 3,048 6,524 9,572 96% 68.5 5.8% FY21 45,754 24,260 70,014 97% 452.4 6.2% Raymond Terrace Sub Regional Jul 2021 10,892 3,944 14,836 98% 87.5 5.9% Drayton Central Neighbourhood Jul 2021 3,521 1,496 5,017 100% 34.3 5.5% Marian Vacant Lot Jul 2021 0.8 Moama Marketplace Neighbourhood Nov 2021 3,623 882 4,505 100% 23.4 4.9% Woodford Neighbourhood Nov 2021 2,864 808 3,672 100% 17.4 5.1% Warrnambool Target Neighbourhood Nov 2021 5,364 1,648 7,012 98% 12.8 11.3% Delacombe Town Centre Sub Regional Nov 2021 11,350 7,679 19,029 97% 112.0 5.3% Moggill Village * Neighbourhood Dec 2021 3,530 2,864 6,394 98% 54.5 5.0% Marian Childcare Centre * Dec 2021 753 - 753 100% 4.8 5.7% FY22 41,897 19,321 61,218 98% 347.5 5.6% * Due to settle by December 2021 slide FUNDS MANAGEMENT Moama Marketplace, NSW (SURF 3) Warrnambool Target, VIC (SURF 3) Woodford Woolworths, QLD (SURF 3) • First fund “SURF 1” was launched in October 2015, and successfully sold the five properties, with the final return made in October 2020 (consistent with 5-year term set out in the PDS) – Achieved an IRR of 11%, with a performance fee to SCP of $0.5m • Second fund “SURF 2” launched in June 2017 with two properties, successfully sold its final property in February 2021, with the final return made in May 2021; – Achieved an IRR of 12%, with a performance fee to SCP of $0.7m • Third fund “SURF 3” launched in July 2018 four properties, successfully sold its final properties in November 2021, with final return to be made in the coming weeks; – Achieved an approximate IRR of 11%, with an approximate performance fee to SCP of $0.3m Successful conclusion of all SURF funds 15 slide SUSTAINABILITY We are targeting our efforts in six key areas where we can have maximum impact 1 1. See our FY21 Sustainability Report for more information. 16 slide OUR PATHWAY TO NET ZERO BY 2030 1 1. Scope 1 and 2 carbon emissions only. See our FY21 Sustainability Report for more information. 17 slide CORE STRATEGY UNCHANGED Defensive, resilient cashflows to support secure and growing long term distributions to our unitholders FOCUS ON CONVENIENCE- BASED RETAIL CENTRES WEIGHTED TO NON-DISCRETIONARY RETAIL SEGMENTS LONG LEASES TO QUALITY ANCHOR TENANTS APPROPRIATE CAPITAL STRUCTURE GROWTH OPPORTUNITIES 18 slide ONLINE RETAIL IMPLICATIONS Convenience based centres are becoming last mile logistics hubs • Our centres are located within local communities, well suited for last mile logistics • We believe the store-based fulfilment model will remain the predominant model for online grocery fulfilment in Australia due to relatively low population densities, large distances, established existing supply chains and high temperatures • Woolworths and Coles are using our centres for last mile fulfilment, both pick up and home delivery – 70 supermarkets in our portfolio (or 75% of stores) now have dedicated click ‘n collect bays – 2 supermarkets have drive-through for online pick up, with a further 14 planned for FY22 – Many of our stores are also being used as logistics hubs for home deliveries to the local area • Online sales are included in supermarket turnover rent calculations – Of our 93 Coles & Woolworths stores, three include only 50% of online sales • Specialty tenants are increasingly using their stores in our centres to fulfil online orders in the local area Lilydale, VIC Kingston, TAS 19 slide KEY PRIORITIES AND OUTLOOK “Love local, Shop local, Act local” OPTIMISING THE CORE BUSINESS • Our focus continues to be: – Serving our local communities for their everyday needs – Partnering with our supermarket anchors to improve their online offer – Actively managing our centres to ensure that we have successful specialty tenants paying appropriate rents – Executing on our sustainability initiatives • This will support our strategy of generating defensive, resilient cash flows to support secure and growing long term distributions to our unitholders GROWTH OPPORTUNITIES • Continue to explore value-accretive acquisition opportunities consistent with our strategy and investment criteria • Progress our identified development pipeline, including sustainability investments • Consider further funds management opportunities CAPITAL MANAGEMENT • We will continue to actively manage our balance sheet to maintain diversified funding sources with long weighted average debt expiry and a low cost of capital consistent with our risk profile • Gearing to remain below 35% at this point in the cycle EARNINGS GUIDANCE • FY22 AFFO per unit guidance and therefore distribution guidance of at least 15.0 cpu. For the first half of FY22 AFFO per unit will be at least 7.1 cents per unit and for the second half of FY22 will be at least 7.9 cpu. We will continue to target a Distribution payout ratio of approximately 100% of AFFO. 20

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