CFS Retail Property Trust (CFX)

Quarterly update to 30 September 2010

3 November 2010

Agenda

– Overview – Highlights – Acquisition of retail outlet centres – Capital management – Sales performance – Development update – Sustainability and responsible property investment – Australian retail property market outlook – Summary

1 Overview State of the market

– Continued strength in leading Australian economic indicators – Economic growth 1 of 3.3% in the year to 30 June 2010 Economy – Unemployment rate stable at 5.1% in September 2010 – Strong Australian dollar performance – Australian share market performance improvement since Federal election outcome Capital markets – Market expectation of increases in the official cash rate – Increased corporate debt issuance at competitive pricing – Increased transaction activity for quality assets A-REIT sector – Majority of A-REITs still trading at discounts to NTA2 – Continued globalisation of investor base is impacting A-REIT pricing – Strength of the Australian dollar supporting retailer margins Retail – Australian retail sales growth remains positive – Increase in leasing demand

1. Gross domestic product. 2. Net tangible asset backing.

Highlights

– Announced the Trust’s agreement to acquire four retail outlet centres, funded via a $540 million institutional placement – Post quarter end, CFX issued new debt at the best pricing since the onset of the Global Financial Crisis – Sustainability and Responsible Property Investment – CDP Carbon Disclosure Leaders Index DFO Moorabbin, Cheltenham, Vic – Won the inaugural APREA best practices award – Grand Plaza first to receive NABERS rating – Achieved total actual1 retail specialty store sales growth of 11.3% – Further progress on the Trust’s development pipeline

DFO Essendon and Homemaker Hub, Essendon, Vic 1. Total actual Moving Annual Turnover (MAT) sales include centres that have undergone substantial redevelopment in the past 24 months.

2 Acquisition of retail outlet centres

– In September 2010 CFX agreed terms to acquire four Direct Factory Outlet ((DFO)‘DFO’) centres for $498 million1 – DFO Homebush, NSW – DFO Essendon and Homemaker Hub, Vic – DFO Moorabbin, Vic – DFO South Wharf and Homemaker Hub, Vic (50% interest)2 – Funded via a $540 million institutional placement – Unit Purchase Plan offered under the same terms as DFO South Wharf and Homemaker Hub, Melbourne, Vic the institutional placement closing 18 November 2010 – Settl emen t on the acqu is ition o f DFO H omeb ush , DFO Essendon and Homemaker Hub and DFO Moorabbin occurred on 29 October 20103

1. Excluding stamp duty and other transaction costs. DFO Homebush, Homebush, NSW 2. The agreed acquisition of DFO South Wharf and Homemaker Hub remains conditional on the joint venture partner, The Plenary Group, securing acquisition financing. Another condition is the execution of non-compete agreements by key Austexx personnel. In the event that the acquisition of DFO South Wharf and Homemaker Hub does not proceed, CFX intends to use the capital raised for this asset (and associated acquisition costs) to initially retire debt and may choose to redeploy this capital in the future. 3. Excluding DFO South Wharf and Homemaker Hub which is expected to settle by the end of November 2010.

Acquisition of retail outlet centres

– Acquisition of carefully selected assets from the DFO portfolio at attractive pricing relative to recent comparable retail outlet centre transactions – 8.26% weighted average cap rate – Strengthens relationships with retailers given the growing importance of retail outlet centres as a distribution channel – Complementary “retail offer” to regional malls – Key success factors of retail outlet centres include – Proximity to major arterial roads – Emphasis on quality brands at discount prices – Caters to the broad population – Limited supply

DFO Essendon and Homemaker Hub, Essendon, Vic

3 Acquisition of retail outlet centres Growth opportunities

– Leverage the expertise of Colonial First State Global Asset Management to undertake initiatives across the acqqguired DFO centres to drive growth and enhance value 1. Remix tenants where appropriate – Add complementary product offerings across the portfolio such as jewellery and cosmetics – Expand luxury offering at DFO South Wharf 2. Increase tenant interaction – Work directly with tenants to increase foot traffic and drive sales – Provide retailers with access to a full offering from regional shopping centres to retail outlet centres 3. Targeted marketing – Strategggpgic localised marketing campaigns – Particular focus on increasing the awareness of DFO South Wharf 4. Enhance lease structures – Average occupancy cost across the acquired DFO centres1 of 8.6% relative to comparable retail outlet centres at ~11%

1. Excluding DFO South Wharf and Homemaker Hub (as the centre has been trading for less than 12 months).

Capital management

– 100% equity funded the acquisition of the four retail outlet centres – In October 2010, announced a new issuance of $450 million of medium term notes – $160 million floating rate MTNs for 3.5 years – $290 million fixed rate MTNs for 5.5 years – Best pricing and largest A-REIT MTN issuance since the onset of the Global Financial Crisis – Strong demand for CFX debt from domestic corporate bond holders – Entire CFX portfolio to be revalued for the six months to 31 December 2010

4 Capital management

– Strong balance sheet maintained – Target gearing range of 25% to 35%

Post acquisition1 30 Jun 10

Gearing2 (% borrowing to total assets) 28.1% 29.5%

NTA per unit $2.00 $2.02

Undrawn debt facilities $544 million3 $431 million

FY11 debt expiries Amount and expiry Status

Medium term notes $294 million (Nov-10) To be paid out from new $450 million MTN issue

$350 million (Feb-11) To be partially replaced by new $450 million MTN issue Bank debt facilities $100 million (Jun-11) and refinancing of balance on program

1. Post the acquisition of the four retail outlet centres. 2. Gearing equals total drawn debt to total assets. For this calculation total assets exclude the fair value of derivatives. 3. Following the $450 million MTN issuance and the expiry of the $294 million in MTNs in early November 2010.

Sales performance Category - rolling 12-month period

Growth in Moving Annual Turnover (MAT) - rolling 12-month period Comparable1 Actual MAT MAT 30-Sep MAT 30-Sep MAT 2010 growth 2010 growth Category $m % $m %

Department stores 309.8 0.6 701.5 1.4

Discount department stores 605.1 (3.8) 801.7 0.2

Supermarkets 1,162.6 3.8 1,476.1 5.7

Mini majors 383.2 (1.6) 738.7 10.8

Retail specialty 1,399.9 (1.4) 2,596.9 11.3

Non-retail specialty2 339.5 6.7 472.7 11.7

Total 4,200.1 0.4 6,787.6 7.5

Specialty stores sales (per square metre) $7,642 $8,644

1. Shopping Centre Council of Australia (SCCA) definition of comparable centres refers to those centres that are not undergoing or have not undergone substantial redevelopment in the past 24 months. 2. Non-retail specialty are sales reporting tenancies under 400 sqm including travel agents, auto accessories, Lotto and other entertainment and non-retail stores.

5 Sales performance Retail specialty stores by category - rolling 12-month period

Growth in Moving Annual Turnover (MAT) - rolling 12-month period Comparable1 Actual MAT MAT 30-Sep MAT 30-Sep MAT 2010 growth 2010 growth Retail specialty category $m % $m % Food retail 115.2 0.0 175.5 5.0 Food catering 228.7 0.3 363.0 11.3 Apparel 394.0 (2.1) 928.7 17.9 Jewellery 119.7 (0.2) 213.7 24.1 Leisure 128. 8 (13. 7) 200. 2 (6. 3) General retail2 161.6 1.5 243.6 9.9 Homewares 69.5 (4.1) 200.9 3.3 Mobile phones 62.8 7.3 85.3 6.7 Retail services 119.6 3.8 186.0 8.7 Total retail specialty 1,399.9 (1.4) 2,596.9 11.3

1.Comparable centres are those centres that are not undergoing or have not undergone substantial redevelopment in the past 24 months. 2.General retail comprises giftware, pharmacy and cosmetics, pets, discount variety, florists and toys .

Sales performance Category – September quarter sales

Annual growth in September quarter sales Comparable1 Actual 30-Sep 30-Sep 2010 Annual 2010 Annual quarter growth quarter growth Category $m % $m %

Department stores 69.9 5.4 150.7 4.3

Discount department stores 150.4 (1.8) 197.5 2.8

Supermarkets 303.4 5.5 385.2 6.5

Mini majors 90.8 (4.1) 181.2 10.5

Retail specialty 341.9 1.1 632.5 14.0

Non-retail specialty2 85.2 5.8 118.4 8.4

Total 1,041.6 2.1 1,665.5 9.1

6 Sales performance Retail specialty stores by category – September quarter sales

Annual growth in September quarter sales Comparable1 Actual 30-Sep 30-Sep 2010 Annual 2010 Annual quarter growth quarter growth Retail specialty category $m % $m % Food retail 28.9 2.8 44.5 6.3 Food catering 58.8 3.5 93.5 12.5 Apparel 95.2 (0.6) 225.1 22.3 Jewellery 26.3 1.4 48.6 26.4 Leisure 28. 6 (10. 1) 45. 0 (0. 4) General retail2 39.9 3.4 59.1 10.0 Homewares 16.6 (3.2) 47.4 5.9 Mobile phones 17.1 19.8 22.0 13.0 Retail services 30.5 2.7 47.3 7.4 Total retail specialty 341.9 1.1 632.5 14.0

Development update

Myer Melbourne , Bourke Street department store, VIC

7 Development update Key development projects1 as at 30 September 2010

Dec 2008 Jun 2009 Dec 2009 Jun 2010 Dec 2010 Jun 2011 Dec 2011 Beyond

Elizabeth (DHS2 Facility) $22 million

Myer Melbourne3 $685 million Bayside $36 million

Forest Hill Chase $25 million

Castle Plaza $140 million

Roxburgh Park $60 million

Grand Plaza $120 million

Chadstone (Stage 35) $200 million

Projects completedProjects in progress Projects planned

1. CFX share. 2. Department of Health Services. 3. Myer Melbourne is expected to be completed by mid 2013.

Development update

Development pipeline breakdown as at 30 September 2010

CFX to ta l CFX cos t to Development pipeline cost $m complete $m

Projects in progress 227 48

Likely to proceed - current 779 461

Current projects 1,006 509

Likely to proceed 120

Planning and concept stages 225

Total development pipeline 1,351

8 Development update Current projects

Current projects as at 30 September 2010 Total To be Forecast Expected Leased Current projects cost1 spent yield completion % $m $m % Date

2 3 Myer Melbourne 685 227 6.0 24 Mid 2013

Bayside Shopping Centre 36 31 7.7 38 Aug 2011

Forest Hill Chase 25 15 8.0 75 Jun 2011

Castle Plaza Shopping Centre 140 119

Roxburgh Park Shopping Centre 60 57

Other 60 60

Total current projects 1,006 509

1. CFX share. 2. For Myer Melbourne, Bourke Street comprises approximately $2 million to be spent and the Lonsdale Street precinct comprises approximately $225 million to be spent. 3. 100% of Bourke Street (Myer department store) income secured, leasing has not commenced on Lonsdale Street (Emporium Melbourne).

Development update Leasing environment and retail observations

– Negative impacts of stimulus unwinding – Actual sales results for recently developed centres continue to show strong results and increased visitation – Overall outlook for most national chains looking towards Christmas trade is optimistic and most are expecting a strong December/January – Upside of improved retailer margins into next year on the back of a stronger Australian dollar – Retailer expansion and leasing activity has improved

Northland Shopping Centre, Preston, Vic

9 Development update Bayside Shopping Centre

Key development metrics

Total cost $36 million

Forecast initial yield 7.7%

Forecast IRR 11%

Leased 38%

Project commenced April 2010

Project to be complete August 2011

– Introduction of Aldi supermarket – Improved and expanded fashion offer

Artist’s impression of Bayside Shopping Centre, Frankston, Vic

Development update Forest Hill Chase

Key development metrics

Total cost $25 million

Forecast initial yield 8.0%

Forecast IRR 12%

Leased 75%

Project commenced July 2010

Project to be complete June 2011

– New leisure precinct – Introduction of Best & Less, JB-Hi-Fi and Rebel Sport

– Additional 300 car spaces Artist’s impression of Forest Hill Chase, Forest Hill, VIC

10 Development update Castle Plaza Shopping Centre

Key development metrics

Total cost $140 million

Commencement Mid 2011

Target yield 8%

– Main street format with complementary mixed use development – Completed development will include – 2 discount department stores – 3 supermarkets – Additional 2,200 sqm of mini majors

– Additional 9,300 sqm of specialties Artist’s impression of the redevelopment of Castle Plaza Shopping Centre, Edwardstown, SA – Additional 820 car spaces

Development update Myer Melbourne

Key development metrics

Total cost $1.49 billion

CFX share (44%) $685 million

Target initial yield 6.0%

Target IRR 8%-9%

Leased - Bourke Street 100% - Lonsdale Street ((pEmporium ) leasing from 2011

Project commenced February 2008

Project to be complete Mid 2013

Myer department store, Melbourne, VIC

11 Development update Myer Melbourne

Development scope Development progress

BkStt(MdBourke Street (Myer depar tmen tt)t store) Bourke Street (Myer department store)

Total reconstruction of Bourke Street store, including Four floors of the new department store are currently trading restoration of heritage façade

41,000 sqm Myer department store Opening of levels 4 and 5 expected by mid November 2010

Hand-over of all floors to Myer by mid November 2010 Lonsdale Street (Emporium Melbourne)

Lonsdale Street (Emporium Melbourne) Retention and restoration of the Heritage façade Appointment of design and construction contractors expected by Demolition of the remainder of the site end of December 2010

6,750 sqm for Myer department store, and Leasing to commence in first half of 2011 37,500 sqm of large-format and specialty stores

– As each stage has different ownership structures, they are treated separately in the Trust’s Financial report. Income and interest expense from the Myer Melbourne Bourke Street store will be included in distributable income post completion in early 2011

Development update Myer Melbourne department store

Myer department store, Melbourne, VIC – basement

12 Development update Myer Melbourne department store

Myer department store, Melbourne, VIC – ground floor

Development update Myer Melbourne department store

Myer department store, Melbourne, VIC – first floor

13 Development update Myer Melbourne department store

Myer department store, Melbourne, VIC – second floor

Sustainability and responsible property investment

– Recognition of focus through inclusion in the CDP Carbon Disclosure Project Leadership Index – Winner of inaugural Asia Pacific Real Estate Association (APREA) best practices award recognised commitment to corporate governance – Grand Plaza Shopping Centre was the first shopping centre to achieve NABERS Water and Energy certifications – Recognition for a 7.8% better energy performance and 13.2% better water performance than expected for a centre of this size

Grand Plaza Shopping Centre, Browns Plains, QLD

14 Australian retail property market Outlook

Australian retail turnover versus economic growth Annual nominal growth rates, quarterly rests ending June 2010

12% Federal interest rates stimulus packages 10% increase by Introduction 2.75% of GST

Credit crisis 2% Housing and rising market unemployment 0% slowdown Jun-94 Jun-98 Jun-02 Jun-06 Jun-10

Gross Domestic Product Australian retail turnover Long-term average turnover growth

GST: Goods and Services Tax introduced in June 2000.

Source: Australian Bureau of Statistics and CFSGAM Research

Summary

– Consumer sentiment has rebounded – Better than expected employment numbers – Strong Australian dollar – Lower petrol prices – Retain our outlook that Australian retail sales growth will reach around 3% over the next nine months – Post the DFO acquisition we remain confident of the distribution guidance1 range of 12.60-12.70 cents per unit for the year ending 30 June 2011

Chatswood Chase Sydney, Chatswood, NSW

1. Assuming performance fee is payable for the full year and there is no unforeseen material deterioration to existing economic conditions.

15 Further information

For further information please contact:

Michael Gorman Darren Steinberg Fund Manager Head of Property CFS Retail Property Trust Colonial First State Global Asset Management Phone: +612 9303 3448 or +61 410 401 178 Phone: +612 9303 2328 or +61 417 262 980 Email: [email protected] Email: [email protected]

Investor contact: Media contact: David Yates Malvina Zayats Head of Investor Relations Communications Manager Colonial First State Global Asset Management Colonial First State Global Asset Management Phone: +612 9303 3516 or +61 418 861 047 Phone: +612 9303 6746 or +61 416 229 056 Email: [email protected] Email: [email protected]

About CFS Retail Property Trust CFS Retail Property Trust (CFX or the ‘Trust’) is a retail sector-specific Australian Real Estate Investment Trust (A-REIT) which invests in high quality regional and sub-regional shopping centres across Australia. The Trust listed on the Australian Securities Exchange in April 1994, under the name Gandel Retail Trust. Its stock market trading code is CFX.

Disclaimer

Neither Commonwealth Bank of Australia (the ‘Bank’) ABN 48 123 123 124 nor any of its subsidiaries guarantees or in any way stands behind the performance of the CFS Retail Property Trust ARSN 090 150 280 (CFX) or the repayment of capital by CFX. Investments in CFX are not deposits or other liabilities of the Bank or its subsidiaries, and investment-type products are subject to investment risk including possible delays in repayment and loss of income and principal invested.

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