Garda Property : Interim Financial Report

onlyGARDA PROPERTY GROUP (ASX: GDF) Consolidated Interim Financial Report

for the six months ended 31 December 2021

For usepersonal

GARDA PROPERTY GROUP

Comprising the consolidated financial reports of GARDA Holdings Limited (ACN 636 329 774) and

GARDA Diversified Property Fund

(ABN 17 982 396 608, ARSN 104 391 273)

For personal use only

For personal use only

CONTENTS

DIRECTORS' REPORT...........................................................................................................................	1
AUDITOR'S INDEPENDENCE DECLARATION .....................................................................................	6
INTERIM FINANCIAL REPORT..............................................................................................................	7
NOTES TO INTERIM FINANCIAL REPORT ........................................................................................	11
DIRECTORS' DECLARATION ..............................................................................................................	27
INDEPENDENT AUDITOR'S REVIEW REPORT .................................................................................	28
CORPORATE DIRECTORY..................................................................................................................	30

This consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2021 and any public announcements made by GARDA Property Group during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

GARDA Property Group is an internally managed real estate investment, development and funds management group incorporated and domiciled in Australia. Its registered office is located at:

Level 21

12 Creek Street

Brisbane QLD 4000

The consolidated interim financial report was authorised for issue by the Directors on 17 February 2022. The Directors have the power to amend and reissue the half-year consolidated financial statements.

ASX releases, financial reports and other information are available on our website: www.gardaproperty.com.au

GARDA PROPERTY GROUP | 2022 INTERIM FINANCIAL REPORT

For personal use only

DIRECTORS' REPORT

INTRODUCTION

GARDA Property Group (GARDA or the Group) is an ASX-listed stapled entity whereby shares in GARDA Holdings Limited (GHL or the Company) are stapled to units in GARDA Diversified Property Fund (GDF or the Fund) on a one-for-one basis.

Shares in the Company and units in the Fund cannot be traded separately and may only be traded together as stapled securities.

The Directors of the Company and of GARDA Capital Limited as responsible entity for the Fund present their report present their report and the consolidated financial statements for the six months ended 31 December 2021 for both:

• the Group - comprising the Company, the Fund and their controlled entities; and
• the Company - comprising only the Company and its controlled entities.

The parent entity of the Group is the Fund.

DIRECTORS

The Directors of the Company and GARDA Capital Limited at any time during the financial half-year and up to the date of this report are listed below. The Directors are also directors of all Group subsidiaries.

Director	Role	Date of Appointment
Matthew Madsen	Executive Chairman	September 2011
Mark Hallett	Executive Director	January 2011
Philip Lee	Non-Executive Director	May 2015 (resigned 25 Nov 2021)
Paul Leitch	Independent Director	March 2020
Morgan Parker	Independent Director	December 2018
Andrew Thornton	Non-Executive Director	March 2020

COMPANY SECRETARY

The Company Secretary at any time during the half year and up to the date of this report was:

Company Secretary	Date of Appointment
Lachlan Davidson	July 2016

PRINCIPAL ACTIVITIES

GARDA is an internally managed real estate investment, development and funds management group.

The Fund invests in, owns, manages and develops industrial and commercial real estate in accordance with the provisions of the Fund's constitution. The Company, through its subsidiary GARDA Capital Limited, acts as the responsible entity of the Fund.

GARDA PROPERTY GROUP | 2022 INTERIM FINANCIAL REPORT

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For personal use only

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

There have not been any significant changes in the state of affairs of the Group during the financial half year.

REVIEW OF OPERATIONS

Group strategy

GARDA's objective is to deliver enduring value to securityholders through its expertise in real estate.

In pursuing this objective, GARDA acts as a long-term owner of real estate, being market cycle aware and seeking out only those risks it wishes to take.

GARDA's strategic focus is equity investment into the industrial and commercial office sectors and debt investment into residential and industrial developments.

Transaction highlights

In the six months ended 31 December 2021, GARDA settled three transactions that were contracted in FY21 but had not completed by 30 June 2021:

• acquisition of the third of three industrial lots at Pinnacle East, Wacol for $2,795,000;
• acquisition of 30,351m2 of industrial land for development at Richlands for $6,828,975; and
• sale of GARDA's non-core industrial property Lytton for $11,000,000.

During the reporting period, GARDA executed a new contract to acquire a commercial building at 8-10 Cato Street, Hawthorn East (Victoria) for $20,100,000, with settlement expected to occur in March 2022.

A sale process for GARDA's industrial property at 67 Noosa Street, Heathwood commenced prior to the end of the reporting period. The Heathwood property had a book value of $17,800,000 at 31 December 2021.

Development highlights

In December 2021, GARDA achieved practical completion on a 6,214m2 industrial building at 69 Peterkin Street, Acacia Ridge which has been leased to Austrans for a seven-year term.

Development activity is expected to continue throughout FY22 with development approvals in place for an industrial building at Pinnacle West and in process for other development pipeline properties at Acacia Ridge, North Lakes, Pinnacle East and Richlands.

Leasing highlights

GARDA's Botanicca 9 office building in Richmond is now 66% leased (by gross income) following the execution of seven-year leases for a total of 1,332m2 with both Berry Street and Servier.

Planet Innovation, which commended a seven-yearwhole-of-building lease of GARDA's Box Hill office building in December 2020, extended the term of its lease during the reporting period to November 2030.

GARDA PROPERTY GROUP | 2022 INTERIM FINANCIAL REPORT

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