CONSISTENTLY DAIWA PAN ASIA REIT DAY DELIVERING 1 – 2 SEPTEMBER 2014

0 0 CONTENTS

03 Fund overview

08 Result overview

12 Portfolio overview

24 Outlook

29 Appendices

- The Trust’s balance date is 31 March. - All data is stated in dollars. - All data is as at 31 March 2014, unless noted otherwise. - Subsequent to the March 2014 balance date the Trust sold its remaining 50% interest in 205 Queen.

Refer to: kipt.co.nz or nzx.com Northlands Shopping Centre Christchurch 1 1 FURTHER INFORMATION

For further information please contact:

CHRIS GUDGEON GAVIN PARKER MATHEW CHANDLER Chief Executive Chief Financial Officer Investor Relations and Communications Manager

Phone: +64 9 359 4011 Phone: +64 9 359 4012 Phone: +61 2 4377 1590 Mobile: +64 21 855 907 Mobile: +64 21 777 055 Mobile: +61 458 110 042 Email: [email protected] Email: [email protected] Email: [email protected]

ASB North Wharf

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 2 ASB North Wharf Auckland

FUND OVERVIEW

3 3 FUND OVERVIEW Key attributes

TRADITIONAL LISTED SOUND FINANCIAL SOLID PROPERTY HISTORY OF SOLID PROPERTY ENTITY POSITION FUNDAMENTALS RETURNS

- New Zealand’s - Bank debt Diversified - Portfolio of 12 - Total return Largest largest internally 35.2% gearing ratio key retail and 9.7% pa since inception managed - Conservative office assets property entity gearing by asset value position

Top 15 - Ranked within $ - Total assets - Net lettable the top 15 on 2.2b 373,000 area the NZX 50 sqm Index

$ - Market $ - Net tangible - Tenants 1.3b capitalisation 1.17 assets per unit 919 (incl. MCNs)

- Weighted - Occupancy 3.4 yrs average term 97.1% to maturity of bank debt - Weighted 4.7yrs average lease term

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 4 FUND OVERVIEW

KIP reaches milestone Internalisation

Approved - Unit Holders voted overwhelmingly 12 December 2013 in favour of internalisation Settlement - The settlement of the internalisation 13 December 2013 created New Zealand’s largest internally managed property entity Cost and - $72.5 million termination payment funding ($52.2 million after tax) - Inland Revenue confirmed that the payment is deductible for tax - Funded by bank debt Effects and - Established a new manager benefits controlled by Unit Holders - Directors appointed by Unit Holders - Provides further alignment of interests between management and - On 3 December 2013, the Trust celebrated 20 years Unit Holders since listing on the New Zealand Stock Exchange - Expected pre-tax net expenditure savings of ~$8 million per annum (after funding costs)

5 5 FUND Post internalisation review of objectives, OVERVIEW goals and strategy

OBJECTIVES GOALS STRATEGY The Trust remains focused on its Our goal is to deliver consistent The strategy to deliver on our goals objectives and reliable returns to our continues to have three core pillars investors . We remain committed to Long-term total returns Maintain a strong financial position By maintaining a strong financial position and providing investors with a >9% per annum secure, reliable investment in conservative gearing with appropriate diversity New Zealand property of debt capital sources, a low cost of capital can be maintained thereby optimising equity returns

. We will continue to target Pre-tax distributable Intensively manage our property superior risk-adjusted earnings per unit growth assets To optimise income and investment returns over time through the per annum >2% performance ownership and active management of a diversified high-quality portfolio Add value through investment decisions To optimise earnings through the strategic acquisition, divestment and development of property assets

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 6 FUND OVERVIEW Investment strategy

Diversification Retail Office

. The Trust intends to remain a . Our retail strategy is to focus on . Our office strategy is to invest in diversified vehicle of retail and office the continuous enhancement of quality, well-located assets which assets our centres through: have consistent income performance and high levels of - The correlation of returns between - improvement of the shopping centre tenant demand retail and office assets is low, reducing experience through the the volatility of income returns and enhancement of dining and leisure - In Auckland we will investigate enabling greater consistency of income options, superior customer service opportunities within the preferred performance through property cycles and the provision of additional northern end of the CBD, close to facilities and services the waterfront and key transport - Diversification allows flexibility to nodes and the development of allocate capital to the sector or - rebalancing the retail mix while campus-style office accommodation property with the superior business maximising destinational appeal and at case at the time sales and rental productivity - In Wellington we will target the - reduction of exposure to categories Government sector, building on our JV opportunities with greatest online penetration existing relationship with the Crown

. The Trust will also investigate - embracing multi-channel retail and opportunities to joint venture with developing initiatives to support capital partners, leveraging on our distribution capability reputation as a leader in funds and property management

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 7 Sylvia Park Auckland

RESULT OVERVIEW

8 8 RESULT OVERVIEW

MARKETS FINANCIAL OPERATING General economy growing positively A solid result notwithstanding one-off Improving market conditions assisted and property markets in recovery internalisation costs value growth and key metrics

Economy - GDP growth 2.6% pa - Development activity $ - Increased rental income $ b - Business confidence positive 78.7m 2.13 - Reflects uplift from cap rate from developments Portfolio - Household spending Operating profit firming offset by reductions (ASB North Wharf, value recovering before tax at and Unisys Centre Place, Northlands) - Unemployment reducing - Property management fees House - Positive migration earned post internalisation - Wages growth - Over 196,000 sqm of NLA - Improved by: 764 Retail - Improving confidence and $ m - Average 3.0% rent growth 101.3 • investment property and New leases and economic indicators should Profit after tax achieved over prior passing interest rate derivative rent reviews assist sales growth target of concluded rentals (excluding valuation gains 2-4% over the medium term development leasing) • insurance income Auckland - Reducing vacancy and - Offset by: - Office WALT increases office increasing rents forecast for • one-off internalisation years 4.7 from 4.8 to 6.4 years prime grades with stable payment (net of tax) WALT - Retail WALT down supply and positive absorption. Firming yields - Increased due to marginally to 3.8 years % with strong investment 35.2 internalisation payment and Bank debt demand capital expenditure - Office occupancy improved gearing ratio % - Offset by proceeds from the 97.1 to 93.0% assisted by - Trust favourably positioned Occupancy Wellington sale of the first 50% tranche accelerated leasing at 205 with NZ Government sector office of 205 Queen Queen - Tenant and investment - Retail occupancy healthy at demand greatest for buildings - Cash distribution for full cpu 99.4% exhibiting seismic strength 6.40 year, in line with guidance Cash distribution

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 9 RESULT OVERVIEW

COMPLETED DEVELOPMENTS ACTIVE DEVELOPMENTS DIVESTMENT Three projects successfully Solid progress has been made on the Capital recycling to maintain balance completed during the period Trust’s development activity sheet flexibility

ASB North Wharf The Majestic Centre 205 Queen - Opened on-time and on- - Foundations and transfer - First 50% sold for budget, delivering a year- beam works due for $47.5 million, settled Jan-14 one initial yield of 8.5% completion Aug-14 - Remaining 50% sold post on $134.0 million - Overall project balance date for development cost completion scheduled for $56.3 million, settled - Now fully leased and 2015 Jun-14 valued at $162.2 million Centre Place 56 The Terrace - Final stage opened (Unisys House) Oct-13 - New 18-year Crown lease - Completed offer well negotiated received by shoppers - $67 million building - Initial yield of 5.4%, upgrade to commence late increasing to ~7% by 2014 with completion 2018 programmed for Jul-16 Northlands - Re-opened 11 shops after reconstruction - Restored $1million in net income

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 10 RESULT OVERVIEW Projected FY15 cash distribution of 6.50cpu

OUTLOOK - Economy is growing and business confidence is positive - Property sector fundamentals are positive, underpinned by rental growth prospects

DISTRIBUTION GUIDANCE - Projected FY15 distribution of 6.50 cents per unit . Based on the outlook for the Trust and subject to a continuation of reasonable economic conditions . The Trust’s distribution reserve, together with the financial benefits arising from internalisation, will enable the Trust to accommodate the rental void at 56 The Terrace as the building is refurbished

Vero Centre, Auckland

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 11 The Plaza Palmerston North

PORTFOLIO OVERVIEW

1212 PORTFOLIO OVERVIEW Portfolio metrics

31-Mar-14 31-Mar-13 Core portfolio metrics1 Retail Office Total Total - The addition of ASB Number of assets 6 6 12 11 North Wharf to the Value ($ million) 1,390.2 674.6 2,064.8 1,874.9 portfolio has improved most metrics including, Proportion of total portfolio by value 65% 32% 97% 90% most notably, Weighted average capitalisation rate 7.17% 7.23% 7.19% 7.52% the weighted average Net lettable area (sqm) 229,754 143,523 373,277 338,986 lease term Number of tenants 778 141 919 865 Occupancy (by area) 99.4% 93.0% 97.1% 97.2% Weighted average lease term (by income) 3.8 years 6.4 years 4.7 years 4.3 years

1. As at 31 March 2014, excludes adjoining properties and development land with a value of $65.4 million, 3% of total portfolio value. As at 31 March 2013, excludes ASB North Wharf which was under construction, as well as adjoining properties and development land with a value of $201.6 million, 10% of total portfolio value.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 13 PORTFOLIO OVERVIEW Retail portfolio

Centre Sylvia Park LynnMall Centre Place The Plaza North City Northlands Location Auckland Auckland Hamilton Palmerston Nth Porirua Christchurch

Centre type Regional Regional CBD Regional Regional Regional

Ownership [%] 100 100 100 100 100 100 NLA [sqm] 71,185 32,220 26,869 32,281 25,702 41,497 Tenants [No.] 209 130 104 114 97 124

Property Property details Carparks [No.] 4,002 1,412 604 1,251 1,080 1,870 Occupancy [%] 99.6 100 95.7 100 100 100 WALT [years] 3.6 3.6 6.0 3.5 3.5 3.6

MAT [$m] 459.6 217.6 80.2 193.4 105.3 363.3

Valuer Colliers JLL Colliers Colliers CBRE JLL details

Value [$m] 564.0 206.0 122.5 196.0 96.4 205.3 Cap rate [%] 6.50 7.13 8.25 7.25 8.25 7.75

10-year IRR [%] 9.55 9.31 10.59 9.65 9.62 9.86 Valuation

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 14 PORTFOLIO OVERVIEW Office portfolio

1. Vero Centre: subsequent to the March 2014 balance date a net 2,600 sqm has been leased, increasing occupancy to over 99%. 2. 56 The Terrace: capitalisation rate is the ‘on completion’ assessed rate. Vero ASB 205 The Majestic 44 The Building 56 The Terrace Centre North Wharf Queen Centre (Unisys House) Terrace Location Auckland Auckland Auckland Wellington Wellington Wellington Grade Premium A-grade A-grade A-grade B-grade B-grade Ownership [%] 100 100 50 100 100 100 NLA [sqm] 39,445 21,625 25,679 24,507 22,158 10,109

Typical floor [sqm] 1,200 4,000 585 1,000 1,200 800 Property Property details Carparks [No.] 421 97 129 251 322 - Occupancy [%] 92.71 100 93.0 86.9 95.9 87.7

WALT [years] 5.4 16.6 4.6 4.2 0.5 1.9

Valuer JLL CBRE JLL CBRE Colliers Colliers details

Value [$m] 299.0 162.2 56.3 76.6 53.4 27.1 Cap rate [%] 6.88 6.88 8.50 8.00 7.252 8.50

10-year IRR [%] 9.25 9.04 9.73 9.09 9.38 9.43 Valuation

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 15 PORTFOLIO OVERVIEW Capitalisation rate trend

March 2007 March 2011 March 2014 Valuation peak Valuation trough Current valuation 8.75% 8.48%

8.25% 7.99%

7.75% 7.74%

7.23% 7.25% 7.18% 7.19% 7.17% 6.91%

6.75% 6.70%

6.25%

Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13

Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14

Key: Retail Office Total

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 16 PORTFOLIO OVERVIEW WALT and expiries

. The weighted average lease term has Weighted average lease term (by gross income) improved primarily due to: 8 6.4 – Completion of Centre Place leasing 6 4.8 4.3 4.7 4.0 3.8

– Completion of ASB North Wharf 4 Years – Leasing at 205 Queen 2

0 Retail Office Total (FY13/FY14) (FY13/FY14) (FY13/FY14) . The expiry profile is well balanced. The Lease expiry profile (by gross income)

FY15 office portfolio expiry spike relates 18% Key: Retail Office 16.4% 16.3% (Unisys House) primarily to 56 The Terrace 16% with tenants vacating ahead of refurbishment and the new 18-year 14% 13.1% 12.1% Crown lease 12% 10.9%

10% 9.6% 9.4%

8%

6% 5.6% 4.0% 4%

2% 1.2% 1.4%

0% FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Beyond

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 17 PORTFOLIO OVERVIEW Leasing and rent review activity

NLA Uplift over prior passing rent CPI and fixed rent reviews Static portfolio activity No. of % of CAGR WALT underpin retail growth By portfolio tenancies sqm portfolio $000 % % years - Fixed and CPI-related rent Rent reviews 550 115,500 50 2,494 +3.5 +3.2 - reviews (~89% of all reviews) delivered +3.5% growth New leasing 132 19,831 9 118 +0.9 - 4.8

Retail portfolio 682 135,331 59 2,612 +3.1 Rental uplift concentrated in larger regional centres Rent reviews 29 13,574 10 144 +2.6 +1.2 - New leasing 29 19,756 14 86 +1.2 - 5.0 Positive result from office activity indicative of improving Office portfolio 58 33,330 24 230 +1.8 fundamentals in Auckland Total (Static activity) 740 168,661 83 2,842 +3.0 Auckland office +3.3% Wellington office +0.4% No. of Total +1.8% Development leasing tenancies ~ NLA sqm Type Centre Place and 21 2,651 Retail - specialty Northlands ASB North Wharf 2 443 Retail - hospitality Office - Crown (Ministry of 56 The Terrace 1 24,232 (Unisys House) Social Development)

Total (Development activity) 24 27,326

Total (All activity) 764 195,987

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 18 PORTFOLIO OVERVIEW Retail sales

Total sales Specialty stores Centre $m % Sales $/sqm GOC % . Increasing consumer confidence lifts Sylvia Park 459.6 +1.0 9,595 discretionary spending LynnMall 217.6 -1.2 7,441 Centre Place 80.2 +22.5 6,536 . Portfolio sales +2.1% – Sales increased for 5 out of 6 centres

The Plaza 193.4 +1.5 8,601 – LynnMall affected by decline in supermarket North City 105.3 +3.2 7,410 sales

Northlands 363.3 +1.9 10,068 . Well performing categories on an Total portfolio 1,419.4 +2.1 8,612 13.9 unaffected basis include: – Specialty retail +2.7% Total sales Unaffected sales1 • Jewellery +8.4% Category $m % $m % • Personal services +6.5% • Men’s apparel +4.0% Supermarkets 375.6 -0.4 211.7 -1.3 • Footwear +3.2% Dept. and discount dept. stores 203.6 +8.7 136.5 +4.5 – Department stores +4.5%

Cinemas 19.8 +2.8 15.1 +4.2 . Unaffected supermarket sales (-1.3%) Mini-majors 149.6 -5.6 130.4 -6.3 impacted by new store openings Specialty 571.8 +3.1 420.7 +2.7 – PAK’nSAVE +2.6% – Countdown -2.9% Commercial services 99.0 +6.1 61.5 +3.5 Total 1,419.4 +2.1 975.9 +0.8

1. Unaffected sales provides a more normalised picture of sales trends and excludes centres which have undergone redevelopment in either year of comparison. In this instance both Centre Place and Northlands are excluded.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 19 PORTFOLIO OVERVIEW Two major projects completed

ASB NORTH WHARF CENTRE PLACE - ASB’s 18-year lease commenced 1 July 2013 - Opened October 2013 with Farmers, METRO by - All food and beverage tenancies now leased Hoyts and ~30 new specialty stores - Has received numerous awards for design, architecture - Complements foodcourt and dining lane projects and sustainability - Refreshed offer well received by shoppers

Cost and value Cost and value Development cost $134.0m Pre-development value $86.5m Initial yield 8.5% Development cost $35.6m Value on completion $162.2m Total investment $122.1m Cap rate on completion 6.88% Value on completion $122.5m

ASB lease details Income and yield Net lettable area 20,006 sqm Projected FY15 - FY18 NOI $6.6m - $8.2m Rent reviews Annual fixed 2.5% pa Projected yield 5.4% - 7.0%

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 20 PORTFOLIO OVERVIEW ASB North Wharf recognised for excellence

New Zealand Institute of Architects Awards 2014

. New Zealand Architecture Medal New Zealand’s highest architectural honour, recognising the country’s best architecture . Commercial Architecture Award . Interior Architecture Award . Sustainable Architecture Award

Property Council of New Zealand Rider Levett Bucknall Property Industry Awards 2014 . Supreme Award The highest honour recognising the ‘best of the best’ . Hays Commercial Office Property Award . Resene Green Building merit prize

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 21 PORTFOLIO OVERVIEW Long-term Crown lease at 56 The Terrace

FINANCIAL METRICS Cost and value Pre-development value (Sep-13) $51.2m Development cost1 $65.7m Total investment $116.9m Estimated value on completion $120.5m Cap rate on completion 7.25%

Income and yield Estimated NOI on completion ~$9.0m Estimated yield on completion ~7.5%

CROWN LEASE Net lettable area 24,200 sqm Lease 18 years from August 2016 Fixed 1.75% pa (3-yearly rests) Rent reviews November 2011 Market every 6 years

PROGRAM Developed design nearing completion Progress Contractor appointed (LT McGuinness) Estimated construction start November 2014 Target completion date July 2016

1. Excludes costs relating to leasing fees and incentives.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 22 PORTFOLIO OVERVIEW Disposal of 205 Queen

Transaction details Purchaser Auckland City Holdings Ltd (a company associated with Brisbane-based Bloomberg Incorporation Ltd) Tranche 1 Interest 50% $47.5 million Purchase price1 (reflecting Mar-13 independent valuation) Settled 31 January 2014 Tranche 2 Interest 50% $56.3 million Purchase price1 (reflecting Mar-14 independent valuation) Settled 3 June 2014

- The sale is in line with the strategy of recycling capital to maintain balance sheet flexibility

1. Before disposal costs.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 23 North City Porirua

OUTLOOK

2424 OUTLOOK Retail sales

Portfolio weighting by value Outlook Key points Sales growth - Increasing consumer and business confidence outlook positive - Positive GDP growth forecasts over medium term (2.2%-2.9% pa for next three years) 65.2% - Reducing unemployment  - Wages growth - Positive migration

Retail sales and economic growth Unemployment rate (%) (% change YoY) 8% 8% 8% 6% 6% 7% 4% 4% 6% 5% 2% 2% 4% 0% 0% 3% -2% -2% 2% -4% -4% 1%

-6% -6% 0%

Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17

Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

Core retail sales Forecast core retail sales Real GDP Forecast GDP Unemployment rate Forecast Long-term average

Sources: Statistics New Zealand - Statistics as at Mar-14, released May-14, New Zealand Institute of Economic Research, Quarterly Predictions, Mar-14 and Jun-14, New Zealand Institute of Economic Research, Consensus Forecasts, Mar-14.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 25 OUTLOOK Auckland CBD office

Portfolio weighting by Key points: value Outlook (Premium and A-grade accommodation) Supply Prime office (Premium and A-grade) forecast to remain static over 2014 before fringe CBD A-grade development comes on stream from 2015 Absorption Solid occupier demand environment forecast to result in positive absorption across Prime office grades until at least 2017 Vacancy Premium-grade vacancy 3.3%, forecast to decline to 0.4% by 2017 24.3%  A-grade vacancy 4.6%, forecast to decline to 3.2% by 2017 Rents Net effective rents are forecast to increase 7-8% over 2014 with growth moderating to 3-4% per annum through to 2017 Yield Investment yields are forecast to firm by 20-30 basis points over the next two years then

stabilise

Comparison

KIP buildings vs CBRE statistics

grade)

grade

-

-

VeroCentre 205Queen ASB North Wharf (Premium (Premium to C Auckland CBD Auckland Premium A

Vacancy 11.0% 3.3% 7.3%1 4.6% 7.0% 0.0%

Yield / Cap rate 8.6% 7.1% 6.9% 7.9% 8.5% 6.9% Refer to Appendix Appendix 10 9 for key statistics and notes on the Premium and A-grade 1. Subsequent to the March 2014 balance date a net 2,600 sqm has been leased, reducing building vacancy to just 0.6%. Auckland office markets CBRE statistics are as at December 2013. KIP statistics are as at March 2014.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 26 OUTLOOK Wellington CBD office

Portfolio weighting by Key points: value Outlook (A-grade and B-grade accommodation) Supply Limited new building activity forecast and the supply environment is unpredictable, being dictated by removal of buildings from the market for seismic strengthening Absorption Absorption is forecast to be negative over the short term with employment growth in Wellington offset by government sector space rationalisation. Absorption will focus on those buildings exhibiting seismic strength 7.4% Vacancy In general, a complex supply/demand environment makes forecasting vacancy difficult and,  again, better quality, strengthened buildings will benefit Rents Rents are forecast to increase but the rate of growth will be suppressed by historic over- renting, increasing opex and a reduction in government-occupied space Yield Investment yields are forecast to firm by 20 to 30 basis points over the next two years

then stabilise

Comparison

KIP buildings vs CBRE statistics

grade)

grade

grade

-

-

-

The Majestic Majestic The Centre Terrace The 56 Terrace The 44 (Premium to C Wellington CBD Wellington A B House)(Unisys

Vacancy 10.5% 1.5% 13.1% 8.0% 4.1% 12.3%

Refer to Appendix Appendix 11 10 for key statistics and Yield / Cap rate 9.9% 8.2% 8.0% 9.5% 7.3%* 8.5% notes on the A-grade and B-grade CBRE statistics are as at December 2013. Wellington office markets KIP statistics are as at March 2014. * 56 The Terrace capitalisation rate represents the ‘on completion’ assessed rate.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 27

OUTLOOK Priorities for 2015

MAINTAIN A STRONG INTENSIVE ASSET ADD-VALUE THROUGH GENERAL BALANCE SHEET MANAGEMENT INVESTMENT DECISIONS

Bed down internalisation Actively manage treasury Maintain active portfolio 56 The Terrace (Unisys - Continue to bed down the Trust position leasing programmes House) post internalisation, including - Focus on interest rate - Actively manage expiring leases - Commence refurbishment works establishment of standalone management to minimise vacancy, with a systems - Renew and extend existing bank particular focus on the remaining LynnMall facilities leasing at Vero Centre and the - Finalise plans for the Develop corporatisation - Further evaluate debt whole of building lease to the development of an entertainment proposal [Appendix 19] diversification options Crown at 44 The Terrace and leisure precinct - Develop a corporatisation proposal for Unit Holder Continue to refine and evolve Acquisition/divestment Conversion of Mandatory approval to move from a trust the retail mix opportunities Convertible Notes to a company structure - Continue to improve the - Actively investigate opportunities - Ensure the orderly conversion shopper experience through to undertake value-added of the Trust’s MCNs in Meet FY15 distribution marketing, leasing and ambience acquisitions or divestments, December 2014 guidance of 6.50 cents per unit enhancements consistent with the Trust’s

- Subject to a continuation of - Target retailers with successful strategy reasonable economic conditions multi-channel capability and explore in-centre opportunities to support distribution

The Majestic Centre - Complete seismic strengthening works

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 28 APPENDICES Index

Appendix Section Contents Page No. 1 New Zealand overview Key facts 30 2 & 3 Economy 31-32 4 International trade surplus 33 5 Ownership Trust register analysis 34 6 Property portfolio Map of asset locations 35 7 Sector and geographic diversification (by value) 36 8 Tenant diversification and top 20 tenants 37 9 Portfolio valuation summary 38 10 Auckland office market 39 11 Wellington office market 40 12 Financial result Net rental income 41 13 Financial performance 42 14 Distributions 43 15 Financial position 44 16 Bank debt summary as at 31-Mar-14 45 17 Interest rate hedging profile 46 18 Finance debt summary (post bond issue and bank debt refinancing) 47 19 Other Corporatisation of KIP: Proposed structure 48

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 29 APPENDIX New Zealand overview 1 Key facts

Locality Key facts

New Zealand lies around 1,600km from Area 269,652 sq km (comparable to the UK or Philippines) Australia’s eastern coast (a three-hour flight) Population1 and 8,500–10,500km (10.5–12.5 hours) from 4,242,000 (comparable to Ireland, Singapore or Norway) Singapore, Shanghai, and Los Angeles Population Age analysis Ethnic analysis 1 (adds to >100% as people are able to identify analysis with more than one ethnic group) 0 - 14 21% European 74% 15 - 39 32% Maori 15% Auckland 40 - 64 33% Asian 12% Largest city >65 14% Pacific peoples 7% Other 1%

Population 252,000 (5.7%) 2 growth forecast Migration 2.2%, Natural 3.5% (2013 – 2018)

Wellington Economy - A mixed free-market economy dominated by the service, Capital city manufacturing and agricultural industries, the latter supported by growing demand for food products in Asia Christchurch Government - Country has a long history of democratically-elected stable and business governments - Elections are held three yearly, next due 20 September 2014 - Latest polls give the incumbent National Party a majority of the popular vote - Institutions such as the independently acting Central Bank Source (RBNZ) and the market regulator FMA provide good 1. 2013 Census, Statistics New Zealand. structural support to the economy and business 2. New Zealand Institute of Economic Research Quarterly Predictions (Jun-14).

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 30 APPENDIX New Zealand overview 2 Economy

$b Gross domestic product (GDP)1 4% GDP trend 300 3% 250 GDP growth pa (2014 est.) 2.6% 2% 200 1% GDP (2014 est.) $226 billion 150 0% 100 GDP per capita (2014 est.) $50,273 -1% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -2% 50 1 Inflation -3% 0

Annual inflation (2014 est.) 1.5% 5% Inflation trend 4% Labour market2 3% Unemployment rate 5.6% 2%

1% Currency 0% US $1.00 = NZ $1.19 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Currency (at 20-Aug-14) JPY100 = NZ $1.15 8% Unemployment trend 7% 6% Household economic information 5% Average annual household income3 $83,252 4% 3% Average annual individual income3 $38,324 2% 1% 0% Source 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1. New Zealand Institute of Economic Research Quarterly Predictions (Jun-14). 2. Statistics New Zealand (Statistics as at Jun-14). 3. Statistics New Zealand (New Zealand Income Survey Jun-13).

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 31 APPENDIX New Zealand overview 3 Economy

External accounts KiwiSaver Annual trade balance (surplus)1 $247 million What is it? A voluntary retirement savings initiative introduced in 2007 Annual current account balance2 $6.8 billion (deficit) (2014 est.) 3% of GDP How it works A standard superannuation scheme with regular deductions from income diverted into an account Government net debt3 $59.4 billion which is invested and managed by private sector (2014 est.) 26% of GDP companies providing a range of funds offering different risk/return profiles. Employees contribute from 3% to 8% and employers contribute 3%. Credit rating4 Funds generally not available until reaching Foreign credit rating (S&P) AA (stable outlook) retirement age (65 in NZ). 6 Domestic credit rating (S&P) AA+ (stable outlook) How much is Overall, approx. $19 billion FUM on behalf of invested? 2.2 million7 savers. Forecast to reach $60 billion7 FUM by 2021 (=18% pa growth) Market capitalisation5 Investment in 1.6%6 (>$300 million) is invested in NZ listed NZX 50 entities $59.7 billion (+16.5% in last 12 months) property property Property entities $5.7 billion Capital markets In the last 12 months, the Government has privatised minority stakes in three large energy companies and the national airline raising ~$4.7 billion

Source 4. New Zealand Debt Management Office (Information last updated Aug-13). 1. Statistics New Zealand (Overseas Merchandise Trade Jun-14 MR dated Jul-14). 5. Forsyth Barr Report: Real Estate Reflections (Jul-14). 2. New Zealand Institute of Economic Research Quarterly Predictions (Jun-14). 6. Morningstar KiwiSaver Survey March Quarter 2014 (Apr-14). 3. Treasury Budget, Economic and Fiscal update (May-14). 7. ANZ Investments presentation on NZ Listed Property Sector (Feb-14).

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 32 APPENDIX New Zealand overview 4 International merchandise trade surplus

Import products and markets ($b) Export products and markets ($b)

Machinery and Agricultural 11.6 China 8.5 38.7 China * 11.6 equipment products *

Petroleum and Machinery and 8.1 Rest of Asia 14.3 3.2 Rest of Asia * 12.1 products equipment

Cars and 8.1 Australia 6.1 Metals 1.7 Australia * 8.9 transport

Agricultural 5.3 US 4.9 Crude Oil 1.4 US 4.2 products

Textiles 2.2 Europe 7.6 Other 6.2 Europe 3.3

Other 14.7 Rest of world 8.6 Rest of world 11.1

Total 50.0 Total 50.0 Total 51.2 Total 51.2

* Agriculture 76% * Asia-Pacific 64%

Source: Statistics New Zealand – Overseas Merchandise Trade June 2014.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 33 APPENDIX Ownership 5 Trust register analysis

>12,000 From 27 58% 42% Investors Countries Institutional Retail investors investors

3% 12% United Europe 1% States Asia

2% Australia 82% New Zealand

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 34 APPENDIX Property portfolio 6 Map of asset locations

Auckland : Pop. 1,416,000 (Largest region, 33.4% of NZ) 2 x shopping centres 2 x office buildings

Hamilton region: Pop. 404,000 (4th largest region, 9.5% of NZ) 1 x shopping centre Wellington : Pop. 471,000 Palmerston North (3rd largest region, 11.1% of NZ) 1 x shopping centre Manawatu-Wanganui region: Pop. 223,000 3 x office buildings (6th largest region, 5.3% of NZ) 1 x shopping centre Christchurch Canterbury region: Pop. 539,000 (2nd largest region, 12.7% of NZ) 1 x shopping centre

Source: Statistics New Zealand (2013 Census results, usually resident population count).

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 35 APPENDIX Property portfolio 7 Sector and geographic diversification (% by value)

Total by sector Palmerston By value [%] Auckland Wellington Christchurch North Hamilton Mar-14 Mar-13 Retail 36.1 4.5 9.6 9.2 5.8 65.2 65 Office 24.3 7.4 - - - 31.7 25 Other 2.5 0.1 0.3 - 0.2 3.1 10 Total by region Mar-14 62.9 12.0 9.9 9.2 6.0 100.0 Total by region Mar-13 64 12 10 9 5

Christchurch Palmerston North Office 10% 9% 32% Other Wellington Hamilton 3% 12% 6%

Sector Geographic diversification diversification

Retail Auckland 65% 63%

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 36 APPENDIX Property portfolio 8 Tenant diversification and top 20 tenants

Tenant diversification (% portfolio gross income) Top 20 tenants (% portfolio gross income) 01. New Zealand chains 27 1. ASB Bank Banking 6.7 02. Australian and international chains 22 2. Farmers Department stores 3.7 03. Department and discount department stores 6 3. Progressive Enterprises Supermarkets 3.1 04. Supermarkets 5 4. Russell McVeagh Legal 2.6 05. Independent retailers 5 5. ANZ Bank Banking 2.4 06. Cinemas 2 6. Vero Insurance Insurance 2.4 Retail 67 7. Bell Gully Legal 2.2 Ministry of Business, 07. Banking 7 8. Government 2.0 08. Legal 6 Innovation and Employment 09. Government 6 9. Foodstuffs Supermarkets 1.9 10. Insurance 4 10. Just Group Fashion retailer 1.7 11. Consultancy 2 11. Hallenstein/Glassons Fashion retailer 1.5 12. Financial services 3 12. Kmart Discount department stores 1.5 13. Other 5 13. Cotton On Fashion retailer 1.4 Office 33 14. The Warehouse Discount department stores 1.3 15. Hoyts Cinemas Cinemas 1.2 13 16. Whitcoulls Book and stationery retailer 1.1 1112 10 17. Valleygirl Fashion retailer 0.9 18. DLA Phillips Fox Legal 0.8 09 01 19. Pascoes Jewellery retailer 0.8 Office Retail 20. Hannahs Footwear retailer 0.7 08 33% income 67% income Collectively, the top 20 tenants represent: 141 tenants 778 tenants 07

06 38%40% 05 52%52%

04 02 03 of portfolio gross income of portfolio lettable area

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 37 APPENDIX Property portfolio 9 Portfolio valuation summary

Fair value Portfolio / property Capitalisation rates % Adopted value $m increase/(decrease) As at Mar-14 Mar-13 Var. bps Mar-14 Mar-13 $m % Sylvia Park 6.50 6.63 -13 564.0 540.0 +21.5 +4.0 An improving Auckland office LynnMall 7.13 7.38 -25 206.0 204.0 +0.2 +0.1 market has Northlands 7.75 7.75 - 205.3 205.5 -12.7 -5.8 underpinned the The Plaza 7.25 7.50 -25 196.0 196.0 - - positive valuation result across the Centre Place 8.25 8.25 - 122.5 104.9 -14.5 -10.6 portfolio. North City 8.25 8.25 - 96.4 99.5 -4.0 -4.0 Retail portfolio 7.17 7.31 -14 1,390.2 1,349.9 -9.5 -0.7 1. ASB North Wharf transferred to Vero Centre 6.88 7.50 -62 299.0 273.0 +25.2 +9.2 the core portfolio following practical completion on ASB North Wharf1 6.88 7.38 -50 162.2 - +8.7 +5.7 31 May 2013. The Mar-13 capitalisation rate is shown for The Majestic Centre 8.00 8.00 - 76.6 61.3 -4.6 -5.7 comparative purposes only but is not included in the weighted 205 Queen (50% interest)2 8.50 9.13 -63 56.3 96.6 +3.7 +7.1 average calculation for that year. 3 2. The remaining 50% interest was Unisys House 7.25 8.75 -150 53.4 67.0 -17.4 -24.6 sold post the March 2014 balance date for $56.3 million and settled 44 The Terrace 8.50 8.50 - 27.1 27.1 -0.1 -0.5 3-Jun-14. Office portfolio 7.234 8.074 -834 674.6 525.0 +15.5 +2.4 3. Capitalisation rate at Mar-14 is the ‘on completion’ assessed rate. Investment portfolio 7.195 7.525 -325 2,064.8 1,874.9 +6.0 +0.3 4. The like-for-like capitalisation rate is 7.36% (Mar-13: 7.83%). This ASB North Wharf (under construction) - 140.1 - - excludes ASB North Wharf (under construction in prior year) and Adjoining properties 45.9 42.5 +2.5 +4.0 Unisys House (change of valuation methodology pending Development land 19.5 19.0 - - redevelopment). 5. The like-for-like capitalisation rate

Total portfolio 2,130.2 2,076.5 +8.5 +0.4 is 7.22% (Mar-13: 7.43%).

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 38 APPENDIX Property portfolio 10 Auckland office market

Actual Forecast Forecast As at / YE As at / YE As at / YE Statistic Grade Dec-12 Mvmt Dec-13 Mvmt Dec-14 Comments - ANZ Centre returned to stock in 2013 post redevelopment but no Premium 109,669  141,575  141,575 additional supply forecast over the next four years

Stock (sqm) - Minimal movement in stock levels over 2014 but increase in stock A-grade 462,951  461,830  461,830 from 2015 with Manson Victoria Street and Fonterra

- Positive absorption in 2013 predominantly reflects ANZ Centre Premium +4,592  +35,829  +1,667 with limited absorption recorded in other buildings Absorption (sqm) - Good rate of take-up presently being experienced with positive A-grade +6,916  +6,912  +12,175 absorption anticipated throughout the forecast horizon - With no new supply, and continuing positive absorption, vacancy is Premium 7.8%  3.3%  2.1% (8,568 sqm) (4,645 sqm) (2,978 sqm) forecast to improve year-on-year through to 2017 (est. 0.4%) Vacancy - Vacancy improves through 2014 but increases slightly in 2015 as A-grade 6.4%  4.6%  2.0% (29,455 sqm) (21,422 sqm) (9,248 sqm) supply temporarily outstrips absorption. At 2017 vacancy is 3.2% - Net effective rents are forecast to improve year-on-year to over Premium $389  $424  $453 $500/sqm by 2017 although the rate of growth slows Rent ($/sqm) (net effective) - Rent growth remains positive through to 2017 with a four-year A-grade $246  $312  $337 CAGR of 4.6% - Yields will firm to <7% in 2015 but stabilise hereafter Premium 7.48%  7.08%  6.93% Yield - Yields will trend in line with Premium, firming through to 2015 A-grade 8.68%  7.88%  7.63% then stabilising at approximately 7.6%

Source: CBRE Research, Auckland Property Market Outlook, December 2013.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 39 APPENDIX Property portfolio 11 Wellington office market

Actual Forecast Forecast As at / YE As at / YE As at / YE Statistic Grade Dec-12 Mvmt Dec-13 Mvmt Dec-14 Comments - The 2013/2014 change in stock represents the temporary removal A-grade 257,518  232,930  257,518 of BNZ’s earthquake-damaged building for repair. In 2016 stock increases 38,000 sqm, including the refurbished 56 The Terrace Stock (sqm) - The B-grade supply environment is complex with numerous B-grade 368,453  370,710  370,935 upgrades underway and a number of planned projects dependent on tenant commitment - Both A and B-grade buildings have fluctuating but generally A-grade +5,995  -17,766  +24,063 positive absorption forecasts over the next five years as the Absorption various upgrade scenarios play out. Tenant demand for better (sqm) B-grade +2,448  -4,453  +3,150 quality buildings is likely to assist the higher office grades

- Vacancy fluctuates over the next couple of years but stabilises A-grade 4.0% 1.5% 1.6% (10,311 sqm)  (3,489 sqm)  (4,015 sqm) around 3% thereafter Vacancy 6.3% 8.0% 7.2% - A volatile vacancy environment but forecast to move between 7% B-grade (23,081 sqm)  (29,791 sqm)  (26,865 sqm) and 10% over the medium term - Moderate net effective rental growth of 3.2% per annum is

A-grade $256  $258  $266 expected from 2013 to 2017 Rent ($/sqm) (net effective) - Growth in opex over the forecast horizon outstrips rental growth B-grade $172  $175  $181 with a moderate net effective CAGR of 1.7% from 2013 to 2017 - Yields forecast to firm by 20 basis points over 2014 then stabilise A-grade 8.42%  8.22%  8.02% at around 8.0% Yield - Yields forecast to firm by 30 basis points over 2014/2015 then B-grade 9.73%  9.45%  9.25% stabilise at around 9.2%

Source: CBRE Research, Wellington Property Market Outlook, December 2013.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 40 APPENDIX Financial result 12 Net rental income

Net operating income1 31-Mar-14 31-Mar-13 Variance $m $m $m % For the year ended . NOI increase assisted by: Sylvia Park 34.7 32.5 +2.2 +6.8 – continued strong LynnMall 15.6 15.1 +0.5 +3.3 performance at Sylvia Park Centre Place 4.0 3.7 +0.3 +8.1 – completion of Centre Place – completion of Northlands The Plaza 14.4 13.6 +0.8 +5.9 – completion of ASB North North City 7.7 7.7 - - Wharf Northlands 16.5 14.9 +1.6 +10.7 – leasing activity at 205 Queen Retail portfolio 92.9 87.5 +5.4 +6.2 . NOI increase also assisted Vero Centre 18.7 18.8 -0.1 -0.5 by the Trust receiving the ASB North Wharf 7.9 - +7.9 +100.0 benefit of property 205 Queen 8.3 8.1 +0.2 +2.5 management fees post The Majestic Centre 8.0 7.8 +0.2 +2.6 internalisation Unisys House 5.4 6.4 -1.0 -15.6 ($2.6 million) 44 The Terrace 2.1 2.0 +0.1 +5.0 Sold properties2 - 1.1 -1.1 -100.0 Office portfolio 50.4 44.2 +6.2 +14.0 Other properties 2.7 2.5 +0.2 +8.0 Total portfolio 146.0 134.2 +11.8 +8.8 1. Net operating income excludes rental income resulting from straight-lining of Straight-lining of fixed rental increases 2.7 1.3 +1.4 +107.7 fixed rental increases. 2. Represents Beca House (settled Jul-12).

Net rental income (NRI) 148.7 135.5 +13.2 +9.7 3. Excludes assets sold or undergoing 3 development in either year of Net rental income like-for-like 110.2 107.8 +2.4 +2.2 comparison.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 41 APPENDIX Financial result 13 Financial performance

Financial performance 31-Mar-14 31-Mar-13 Variance For the year ended $m $m $m % . Operating profit increased by: Gross rental income 208.2 197.1 +11.1 +5.6 – improved NRI Property operating expenditure -59.5 -61.6 +2.1 +3.4 – savings in management fees post Net rental income 148.7 135.5 +13.2 +9.7 internalisation

Net interest expense1 -55.7 -49.7 -6.0 -12.1 . Profit before tax reduced by: Manager’s base fees -8.1 -10.4 +2.3 +22.1 – one-off cost of internalisation Manager’s performance fee - -3.0 +3.0 +100.0 offset by: Management and administration expenses -6.2 -3.0 -3.2 -106.7 – an increase in insurance income Operating profit before other receivable in respect of the 78.7 69.4 +9.3 +13.4 income/(expenses) and tax2 Northlands insurance claim – fair value gains on interest rate Fair value change to interest rate derivatives 29.1 11.7 +17.4 +148.7 derivatives and investment Fair value change to investment properties 8.5 21.0 -12.5 -59.5 properties Loss on disposal of investment properties -3.3 -0.3 -3.0 -100.0 Insurance and litigation settlement income 52.9 16.6 +36.3 +218.7 . Current tax expense reduced Termination of management arrangements -74.5 - -74.5 -100.0 due to the deductibility of the Other non-operating items -0.8 -0.8 - - internalisation payment Profit before tax 90.6 117.6 -27.0 -23.0 Current tax benefit/(expense) 0.2 -10.2 +10.4 +102.0 Deferred tax benefit 10.5 2.4 +8.1 +337.5 Profit after tax 101.3 109.8 -8.5 -7.7

1. Shown net of interest income and interest capitalised. 2. Operating profit before other income/(expenses) and tax is an alternative performance measure used by the Trust to assist investors in assessing the Trust’s underlying operating performance and to determine income available for distribution.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 42

APPENDIX Financial result 14 Distributions

Distributable income 31-Mar-14 31-Mar-13 Variance For the year ended $m $m $m % . Distributable 1 Operating profit before other income/(expenses) and tax 78.7 69.4 +9.3 +13.4 income improved Depreciation recovery offset2 - 3.4 -3.4 -100.0 by tax deductibility Fixed rental income adjustments -2.6 -1.4 -1.2 -85.7 of internalisation Distributable income before tax 76.1 71.4 +4.7 +6.6 payment Current tax expense 0.2 -10.2 +10.4 +102.0 . Excess 1 Distributable income after tax 76.3 61.2 +15.1 +24.7 distributable

31-Mar-14 31-Mar-13 31-Mar-14 31-Mar-13 income transferred Distributions $m $m cpu3 cpu3 to retained Distributable income after tax 76.3 61.2 7.55 6.17 earnings Transfer from distribution reserve - 4.3 - 0.43 Transfer to retained earnings -11.6 - -1.15 - Cash distribution 64.7 65.5 6.40 6.60 Imputation credits 4 - 10.2 - 1.02 Gross distributions paid 64.7 75.7 6.40 7.62 Distribution reserve (post payment) 11.3 11.3 Payout ratio 85% 107%

1. Operating profit before other income/(expenses) and distributable income are alternative performance measures used by the Trust to assist investors in assessing the Trust’s underlying operating performance and to determine income available for distribution. 2. Proceeds from sale of Beca House used to cover tax payable for depreciation recovered. 3. Calculated using the number of units entitled to the relevant distributions. 4. Due to the tax deductibility of the internalisation payment, the directors have determined that there are no imputation credits available to be attached to the final distribution as the Trust is a Portfolio Investment Entity, the payment will be an excluded distribution for tax purposes, with no tax payable by New Zealand resident investors. Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 43 APPENDIX Financial result 15 Financial position

Financial position 31-Mar-14 31-Mar-13 Movement As at $m $m $m % Assets The Trust has a long and Investment properties 2,130.2 2,076.5 +53.7 +2.6 successful track record of maintaining a strong Cash 9.2 12.0 -2.8 -23.3 balance sheet. In our Insurance income receivable 64.3 16.6 +47.7 +287.3 anniversary year, the balance sheet remains in Other assets 32.1 21.4 +10.7 +50.0 good shape. Total assets 2,235.8 2,126.5 +109.3 +5.1 Liabilities Bank debt 786.5 681.0 +105.5 +15.5 Mandatory convertible notes 119.7 118.9 +0.8 +0.7 Deferred tax liability 93.5 101.1 -7.6 -7.5 Other liabilities 47.6 93.4 -45.8 -49.0 Total liabilities 1,047.3 994.4 +52.9 +5.3 Key NTA movements $/unit Unit Holders’ funds 1,188.5 1,132.1 +56.4 +5.0 Insurance and litigation income +0.05

Trust Deed gearing (requirement <45%)1 35.2% 32.0% +3.2 bps Fair value gains +0.03

Net tangible asset backing per unit (NTA) $1.17 $1.14 +$0.03 Internalisation costs -0.07

1. Calculated as secured bank debt over total assets. Tax credits +0.01

Retained earnings +0.01

Net movement +0.03

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 44 APPENDIX Financial result 16 Bank debt summary

Bank facilities Facilities expiring As at 31 March 2014 $m % . Debt facilities increased FY15 - - $25 million to $875 million in December 2013 to assist in FY16 ANZ $72.5 72.5 8.3 financing internalisation payment FY17 ANZ $105.0 Westpac $77.5 182.5 20.9 . $465 million of facilities renewed FY18 BNZ $92.5 CBA $100.0 192.5 22.0 and extended during the year FY19 Westpac $100.0 BNZ $127.5 CBA $100.0 327.5 37.4 – $100 million extended on six-year terms FY20 CBA $100.0 100.0 11.4

Total facilities 875.0 100.0

31-Mar-14 31-Mar-13

Weighted term to maturity (years) 3.4 3.8

Weighted average cost of facilities (incl. margin and fees) 6.01% 7.05%

% of drawn debt hedged 74% 80% Our weighted average cost of debt has reduced to ~6% reflecting the expiry of more expensive interest rate swaps as well as the lower interest rate environment.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 45 APPENDIX Financial result 17 Interest rate hedging profile

Hedging profile 31-Mar-14 31-Mar-13

Percentage of drawn debt hedged [fixed rate] 74% 80%

Weighted average interest rate of active swaps [excl margin and fees] 4.70% 5.85%

Weighted average term to maturity of interest rate hedges 2.9 years 2.4 years

Hedge maturity profile

$700m Face value of hedges [$m] [LHS] 8%

Weighted average interest rate on hedged debt $600m (excl. fees and margins) [%] [RHS] 7%

$500m 6%

$400m 5% $300m

4% $200m

3% $100m

$0m 2% FY14 FY15 FY16 FY17 FY18 FY19 FY20

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 46 APPENDIX Financial result 18 Finance debt summary (post bank debt refinancing and bond issue)

Finance debt facilities Facilities expiring Post bank debt refinancing and bond issue $m % Post balance date the Trust has: FY15 - - . Refinanced all bank debt FY16 - - facilities

FY17 WBC $57.5 57.5 6.4 . Completed a $125 million bond offer FY18 ANZ $52.5 BNZ $65.0 CBA $100.0 217.5 24.2 – The Bonds have:

FY19 ANZ $52.5 BNZ $65.0 WBC $100.0 CBA $65.0 282.5 31.3 • further diversified the sources of funding FY20 ANZ $52.5 BNZ $65.0 CBA $100.0 217.5 24.2 • extended the weighted average duration of the funding base FY21 - - – The Bond proceeds have been FY22 Fixed Rate Bond $125.0 125.0 13.9 used for general corporate Total facilities 900.0 100.0 purposes, including the repayment of bank debt

30-Jun-141 31-Mar-14

Weighted term to maturity (years) 4.4 3.4

1. Post bank debt refinancing and bond issue.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 47 APPENDIX Corporatisation of KIP 19 Proposed structure

Current structure of the Group Anticipated post corporatisation structure of the Group . Proposal for Unit Holder consideration Corporate Trust Limited ~ December 2014

100% . Benefits to include: – Streamlined corporate structure Kiwi Property Management Limited – Cost savings (Issuer of Bonds in its capacity as Manager of KIP) – Greater protections under the Takeovers Code and Companies Act New Zealand Permanent Trustees Limited (Independent Trustee)

Guaranteeing Guaranteeing KIWI INCOME Group Listed Parent Company1 Group PROPERTY TRUST (Issuer of Bonds)

100% 100%

Kiwi Property Holdings Sylvia Park Business Kiwi Property Holdings Sylvia Park Business Limited Centre Limited Limited Centre Limited (Owner of properties other (Owner of properties other (Owner of Sylvia Park) (Owner of Sylvia Park) than Sylvia Park) than Sylvia Park)

1. Resulting entity should the corporatisation of KIP be approved by Unit Holders and, as currently proposed, following an amalgamation of Kiwi Property Management Limited and a newly incorporated company.

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 48 DISCLAIMER

Kiwi Property Management Limited is the manager (the ‘Manager’) of Kiwi Income Property Trust (KIP).

The information contained in this presentation (the ‘Presentation’) is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. It is not intended as investment or financial advice and must not be relied upon as such. Some of the information in this Presentation is based on unaudited financial data which may be subject to change. You should assess whether the Presentation is appropriate for you and consider talking to a financial adviser or consultant before making any investment decision. This Presentation is not an offer or invitation for subscription or purchase of securities or other financial products.

All reasonable care has been taken in relation to the preparation and collation of the Presentation. None of KIP, the Manager, New Zealand Permanent Trustees Limited (the 'Trustee'), any of their respective officers, employees, agents or associates, or any other person accepts responsibility for any loss or damage howsoever occurring resulting from the use of or reliance on the Presentation by any person. Past performance is not indicative of future performance and no guarantee of future returns is implied or given.

Caution regarding forward-looking statements This Presentation includes forward-looking statements regarding future events and the future financial performance of KIP. Any forward-looking statements included in this Presentation involve subjective judgement and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, KIP, the Manager, the Trustee, and their respective officers, employees, agents or associates.

Actual results, performance or achievements may vary materially from any forward-looking statements and the assumptions on which those statements are based including, without limitation, in particular because of risks associated with the New Zealand economy which could affect the future performance of KIP’s property portfolio, its ability to obtain funding on acceptable terms, the risks inherent in property ownership and leasing, and KIP's business generally. Given these uncertainties, you are cautioned that this Presentation should not be relied upon as a recommendation or forecast by any of KIP, the Manager, the Trustee, or any of their respective officers, employees, agents or associates. None of KIP, the Manager, the Trustee, or any of their respective officers, employees, agents or associates undertakes any obligation to revise the forward-looking statements included in this Presentation to reflect any future events or circumstances.

Copyright and confidentiality The copyright of this document and the information contained in it is vested in the Manager. This document should not be copied, reproduced or redistributed without prior consent.

September 2014

Kiwi Income Property Trust • Daiwa Pan Asia REIT Day • September 2014 49