Chairman's and Managing Director's AGM addresses

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ASX ANNOUNCEMENT

11 November 2021

CHAIRMAN'S AND MANAGING DIRECTOR'S ADDRESSES

Following is the Chairman's address and the Managing Director's presentation to be delivered at today's Annual General Meeting of GDI Property Group1.

Media Enquiries:
Steve Gillard	David Williams
Managing Director	Chief Financial Officer
[phone]	[phone]
[e-mail]	[e-mail]

Authorised for release by David Williams, Company Secretary

1. GDI Property Group comprises the stapled entities GDI Property Group Limited (ACN 166 479 189) and GDI Property Trust (ARSN 166 598 161).

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CHAIRMAN'S ADDRESS

It has been a strange year for many of us, particularly those of us in Sydney and Melbourne who have endured months of lockdown. In contrast, life has continued pretty much as normal in WA and Qld where we have our buildings. With COVID‐19 playing havoc with our lives I am very proud of the way in which Steve and the whole team have managed to run the business, meeting the challenges in such a flexible way.

The lockdown in Australia's two most populous states will have a material impact on those states' short term economic outlook. GDI holds no property in either Sydney or Melbourne. We did not predict that these two states would face such difficult health and economic conditions due to prolonged COVID‐19 lockdowns relative to the other state capital cities. Rather, beginning in FY17 we deliberately began weighting our portfolio and assets in the funds business to Perth, believing that Perth offered better prospects for long term returns than any other state capital city.

To capitalise on this belief we sold 25 Grenfell Street, Adelaide (FY17), 307 Queen Street, Brisbane (FY17) and 66 Goulburn Street (FY18), from our balance sheet and 80 George Street, Parramatta (FY17) and 223

• 237 Liverpool Road, Ashfield (FY19), from our Funds Business. In October 2017 we purchased Westralia Square for our balance sheet and in July 2020 we purchased 180 Hay Street, Perth. In the Funds Business we purchased 6 Sunray Drive, Innaloo (IKEA) and the IDOM Portfolio, for GDI No. 43 Property Trust and GDI No. 46 Property Trust respectively. All of these assets are either performing above expectations or positioned to take advantage of the rapidly improving Perth market. Combined with the assets we already owned or managed in Perth, this re‐weighting strategy means we now have nearly $1.1 billion of assets in Perth, and following the sale of 50 Cavill Avenue, Surfers Paradise, in August 2021, over 90% of our assets under management are located in Perth.

The WA government's hard border stance is a two‐edged sword for Perth and its economy. On the one hand Perth has managed to avoid the worst of COVID‐19. With only a small number of days where Perth was locked down, most of our tenants were able to operate as normal. Office usage in the Perth CBD consistently ranked amongst the highest of all Australian cities and accordingly, very few rent relief requests have been received since the 2020 lockdowns. Notwithstanding the impact of 'work from home' and the consequent demand for workplace flexibility, the high usage levels in the Perth CBD where COVID‐ 19 hasn't been as much a part of the daily vernacular as other state capital cities show that the office will continue to be an important part of business life. The office provides an organisation with the ability to foster its own identity and culture; promote innovation and productivity improvements through staff collaboration; on‐the‐job and tacit learnings for junior employees from their more experienced colleagues; marks the boundary between work and home; and enhances the social aspect of work.

However, the hard border closures are making it difficult for domestic and international migration. Anecdotal evidence is that many Perth based businesses are struggling to hire the people they need to deliver on new work. This is acting as a handbrake to the economy and slowing down the recovery in the office market. These border closures have also made it difficult for our executive team and the Board to travel to Perth. Fortunately, when the borders were open the executive team, primarily Paul Malek who asset manages all of our Perth office assets, and Steve, spent considerable time on the ground. We are also fortunate to have a first‐rate team based in Perth. I'd particularly like to recognise David Ockenden, our Head of Development, and John Byrne, who is our in‐house leasing specialist, for the wonderful job they have done in the last twelve months.

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Office properties, as part of the built environment, have a very important environmental role to play. We are very proud of our environmental successes this year. We've had NABERS Energy, Indoor Environment and Water rating improvements across our portfolio. We've reduced our electricity grid use and 197 St George's Terrace, Perth was rated as a Platinum Waterwise Building of the Year. We managed to achieve these improvements not from building new properties with new and more efficient technologies, but by upgrading existing properties. Because existing buildings comprise the largest segment of the built environment, when we undertake such upgrades, we make an important contribution to not only reducing that building's environmental footprint but also improving the general environmental footprint of the area in which the building is located. We have a very strong focus on minimising and avoiding waste of fittings, appliances and interiors when undertaking an office stripout and/or fitout, and aim to reuse workstations, fittings and furniture either within the same building or in other GDI buildings. Aluminium and glass are separated for recycling and where possible, we recycle carpet and underlay. All components of redundant air conditioning equipment are disposed of appropriately, including redundant refrigerant.

All this we do as it's good for our tenants, it's good for our community, and it's good for our bottom line. If a building we buy already has exceptional services and a low environmental footprint, we will continually look for incremental improvements in the belief that every bit counts

We released our first ESG Report last year and received a lot of positive feedback, particularly from a number of our listed investors. This year we included a number of them and other capital providers to broaden our stakeholder reach to provide more focused ESG reporting based upon the issues they, together with our internal stakeholders, consider material. Our Head of Property, John Garland, is driving this and I encourage you to read the report. We still have a lot more to do and we will continue to improve both our practices and our reporting.

I would like to thank my fellow Board Members, Giles Woodgate, John Tuxworth and Stephen Burns for their proactive engagement and support. Most importantly, I would like to congratulate Steve Gillard and the whole GDI team for another successful year and thank them all for their efforts.

Media Enquiries:
Steve Gillard	David Williams
Managing Director	Chief Financial Officer
[phone]	[phone]
[e-mail]	[e-mail]

1. GDI Property Group comprises the stapled entities GDI Property Group Limited (ACN 166 479 189) and GDI Property Trust (ARSN 166 598 161).

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PROPERTY GROUP

General Meeting

11 November 2021

Disclaimer

This presentation has been prepared and issued by GDI Property Group Limited (ACN 166 479 189) and GDI Funds Management Limited (ABN 34 107 354 003, AFSL Number 253 142) as responsible entity of GDI Property Trust (ARSN 166 598 161). Shares in GDI Property Group Limited are stapled to units in GDI Property Trust, which with their controlled entities, form GDI Property Group (ASX:GDI). This is not an offer of securities for subscription or sale and is not financial product advice.

Information in this presentation, including, without limitation, any forward looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted by law, onlyGDI Property Group, GDI Property Group Limited, GDI Funds Management Limited and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied by any forward looking statements for a range of reasons outside the control of the relevant parties. You should note that returns from all

investments may fluctuate and that past performance is not necessarily a guide to future performance.

The Information in this presentation should not be considered to be comprehensive or to comprise all the information which a GDI Property Group security holder or potential investor may require in order to determine whether to deal in GDI Property Group securities. Whilst every effort is made to provide accurate and completion information, GDI Property Group does not represent or warrant that the information in this presentation is free from errors or omissions, is complete or is suitable for your intended use. In particular, no representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in the information - such material is, by its nature, subject to significant uncertainties and contingencies. This presentation does not take into account the financial situation, investment objectives and particular needs of any particular person. Any prospective investor or other security holder must satisfy itself by its own investigation and by undertaking all necessary searches and enquiries as to the accuracy and comprehensiveness of all Information contained in this presentation.

The repayment and performance of an investment in GDI Property Group is not guaranteed by GDI Property Group Limited or GDI Funds Management Limited or any of their related bodies corporate or any other person or organisation.

An investment in GDI Property Group is subject to investment risk, including possible delays in repayment, the loss of income and the loss of the amount invested.
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LINKING EQUITY TO PERFORMANCE

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