Shopping Centres Australasia Property : Results Half Year 31 December 2021 and Appendix 4D

For personal use only

Net Tangible Assets

Details of entities over which control has been gained or lost during the period:

During the period SCA Fund Management Limited was formed. SCA Property Group owns 100% of this entity.

Details of any associates and Joint Venture entities required to be disclosed:

During the period SCA Unlisted Retail Fund 3 was wound up. SCA Property Group had a 26.2% interest in this entity.

Audit

The accounts have been subject to a review report with an unqualified review report conclusion. Refer attached Interim Financial Report.

Distribution Reinvestment Plan (DRP)

The Group has a Distribution Reinvestment Plan (DRP) under which unitholders may elect to have all or part of their distribution entitlements satisfied by the issue of new units rather than being paid in cash. The DRP was activated for the distribution in respect of the half year ended 31 December 2021. The cut-off for electing to participate or change an existing election to participate in the DRP was 5.00pm on 4 January 2022.

In accordance with the DRP Rules, the issue price is calculated as the arithmetic average of the daily volume weighted average price of all sales of Stapled Units sold through a Normal Trade recorded on ASX for the first 10 ASX Trading Days following the business day after the record date, less 1.0% (1.0% being the Board approved DRP discount for this distribution) and rounded to the nearest whole cent. On this basis the issue price of the DRP applying to the distribution in respect of the half year ended 31 December 2021 was $2.88.

Other significant information and commentary on results

See attached ASX announcement and materials referred to below.

For all other information required by Appendix 4D, please refer to the following attached documents:

• Directors' report
• Interim Financial Report
• Results presentation

Erica Rees

Company Secretary

7 February 2022

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Shopping Centres Australasia Property Group

Directors' Report

For the half year ended 31 December 2021

Directors' Report

Shopping Centres Australasia Property Group (SCA Property Group (SCA) or the Group) comprises the stapled securities in two Trusts: Shopping Centres Australasia Property Management Trust (Management Trust) and its controlled entities and Shopping

onlyCentres Australasia Property Retail Trust (Retail Trust) (collectively the Trusts).

The Responsible Entity for the Trusts is Shopping Centres Australasia Property Group RE Limited, which presents its report together with the Trusts' Interim Financial Reports for the half year ended 31 December 2021 and the auditor's report thereon.

The Directors' Report is a combined Directors' Report that covers the Trusts. The financial information for the Group is taken from the Interim Consolidated Financial Reports and notes.

1. Directors

The Directors of the Responsible Entity at any time during the half year and up to the date of this report are:

The principal activity of the Group during the half year was investment in, and management of, shopping centres in Australia. The materials in this Interim Financial Report include materials that deal with the operational and financial review. Additional materials on these matters is available in the other announcement materials that deal with the results of the Group for the half year.

3. Impact of COVID-19

The events relating to COVID-19 have had an adverse impact on both the operations and financial performance of the Group du ing the half year and prior years. These impacts have included, volatility in the retail sales performance of our tenants, government-imposed trading restrictions on some of our tenants, state and territory legislation implementing the National Cabinet Mandatory Code of Conduct ("Code of Conduct") mandating rent relief and a moratorium on evictions for certain tenants (this

nded for most of Australia in March 2021, although for Victoria and New South Wales similar regulations were reinstated from July 2021 until March 2022), higher than normal rental arrears by our speciality tenants, increased expenses (for example, extra cleaning and security), rent freezes, increased vacancies, reduced leasing spreads, increased incentives and reduced other income.

The main implication of the above on the Interim Consolidated Financial Statements is the recording and collection of rental Forincome. The accounting treatments and key estimates and significant judgements in these areas are set out in note 3 of the Interim

C nsolidated Financial Statements.

The Group remains committed to providing safe, clean and compliant convenience-based shopping centres for our employees, shoppers, retailers and service providers through continued focus on safety and wellbeing. This includes applying an appropriate safety strategy, structured regular reporting to the Board, training programs for employees, training programs for contractors, continuous challenge and improvement on safety achievements, outsourced property and facilities management with safety key performance indicators (KPIs), and appropriate insurance (covering workers' compensation, public liability and property).

4. Property portfolio

The investment portfolio at 31 December 2021 consisted of 99 shopping centres (30 June 2021: 92 shopping centres) valued at

$4,734.0 million which includes held for sale properties of $307.6 million (30 June 2021: $4,000.0 million and $nil respectively). The investment portfolio consists of convenience-based neighbourhood, sub-regional and freestanding shopping centres with a strong weighting towards non-discretionary retail tenants.

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Shopping Centres Australasia Property Group

Directors' Report

For the half year ended 31 December 2021

Acquisitions

During the half year, the Group completed the following property acquisitions (excluding transaction costs):

Disposals

The Group agreed to sell the investment property Ballarat (Victoria) prior to 31 December 2021. Therefore this property is classified as held for sale for financial reporting purposes at 31 December 2021. The sale of this property completed in January 2022 and it was sold for $23.1 million. The book value is equal to its sale value.

The acquisition of the interest in these properties by GIC has been approved by the Foreign Investment Review Board and the remaining conditions, including the availability of the appropriate debt for the SCA Metro Fund are progressing well. When this completes the SCA Metro Fund will be owned 80% by GIC and 20% by the Group. These properties are classified as held for sale f r financial reporting purposes at 31 December 2021. It is expected that this sale will be completed in the second half of this financial year. The seven properties the Group has agreed to sell are:

ForRevaluations

The total value of investment properties at 31 December 2021 was $4,734.0 million which includes held for sale properties of $307.6 million (30 June 2021: $4,000.0 million and $nil respectively). During the half year ended 31 December 2021, independent valuations were obtained for 30 investment properties and all of the investment properties were internally valued. The weighted average capitalisation rate (cap rate) of the portfolio at 31 December 2021 was 5.45% excluding held for sale properties (30 June 2021: 5.90%).

The change in value of the investment properties from $4,000.0 million at 30 June 2021 to $4,426.4 million at 31 December 2021 was due primarily to the acquisitions and the compression of capitalisation rates. Property valuations increased by $349.4 million or 8.7% during the half year.

5. Funds management

The SCA Metro Fund, including the sale of the seven properties by the Group to the SCA Metro Fund, is expected to commence operations in the second half of this financial year.

In addition to the SCA Metro Fund, the Group will continue to explore wholesale and institutional funds management opportunities in the future.

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