Cromwell Prospering in a low growth world · Portfolio value: $1.9 bn # Assets: 25 Weighted average cap rate: 8.4% Weighted average lease expiry: 6.0 yrs Funds management platform

Cromwell Property Group 1 NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

Cromwell – Prospering

in a low growth world

London - March 2013


Important Information & Disclaimer

This presentation and its appendices ("Presentation") are dated 20

February 2013 and have been prepared by the Cromwell Property

Group, which comprises Cromwell Corporation Limited (ACN 001 056

980) and Cromwell Diversified Property Trust (ARSN 102 982 598) of

which Cromwell Property Securities Limited (ACN 079 147 809; AFSL

238052) is the responsible entity. Units in the Cromwell Diversified

Property Trust are stapled to shares in Cromwell Corporation Limited.

The stapled securities are listed on the ASX (ASX Code: CMW).

Financial Information

This Presentation contains summary information about Cromwell

Property Group as at 31 December 2012. Statutory financial

information has been reviewed by Cromwell Property Group's auditors.

Operating financial information has not been subjected to audit review.

All information is in Australian dollars and all statistics are as at 31

December 2012 unless otherwise stated. The pro forma historical

financial information included in this Presentation does not purport to be

in compliance with Article 11 of Regulation S-X of the rules and

regulations of the U.S. Securities and Exchange Commission. Investors

should also be aware that certain financial data included in this

Presentation are "non-IFRS financial information" under ASIC

Regulatory Guide 230 Disclosing non-IFRS financial information

published by the Australian Securities and Investments Commission

("ASIC") and "non-GAAP financial measures" under Regulation G of the

U.S. Securities Exchange Act of 1934. These measures include

distributions per Security, gearing, EPS yield, DPS yield, cap rates and

distribution yield. The disclosure of such non-GAAP financial measures

in the manner included in this Presentation would not be permissible in

a registration statement under the U.S. Securities Act of 1933 as

amended ("Securities Act"). Cromwell Property Group believes this

non-IFRS financial information provides, and these non-GAAP financial

measures provide, useful information to users in measuring the financial

performance and conditions of Cromwell Property Group. The non-

IFRS financial information and these non-GAAP financial measures do

not have a standardised meaning prescribed by Australian Accounting

Standards and, therefore, may not be comparable to similarly titled

measures presented by other entities, nor should they be construed as

an alterative to other financial measures determined in accordance with

Australian Accounting Standards. Investors are cautioned, therefore,

not to place undue reliance on any non-IFRS financial information or

non-GAAP financial measures and ratios included in this Presentation.

Not an Offer

This Presentation is not an offer or an invitation to acquire securities in

Cromwell Property Group or securities in Cromwell Box Hill Trust,

Cromwell Riverpark Trust, Cromwell Ipswich City Heart Trust and

Cromwell Phoenix Property Securities Fund or any other financial

products and is not a prospectus, product disclosure statement or other

offering document under Australian law or any other law. It is for

information purposes only. This Presentation may not be distributed or

released in the United States. This Presentation does not constitute an

offer to sell, or the solicitation of an offer to buy, any securities in the

United States. Securities have not been, and will not be, registered

under the Securities Act or the securities laws of any state or other

jurisdiction of the United States, and may not be offered or sold directly

or indirectly in the United States unless they have been registered

under the Securities Act or are offered and sold in a transaction exempt

from, or not subject to, the registration requirements of the Securities

Act and any other applicable US state securities laws.

The contents of this Presentation have not been reviewed or approved

by any regulatory authority in Australia, United States, United Kingdom,

the Netherlands or elsewhere. Cromwell Property Group does not

intend to offer any stapled securities or securities to the public in any

country outside of Australia.

Summary Information

The information in this Presentation is subject to change without notice

and does not purport to be complete or comprehensive. It does not

purport to summarise all information that an investor should consider

when making an investment decision. It should be read in conjunction

with Cromwell Property Group's other periodic and continuous

disclosure announcements lodged with the Australian Securities

Exchange, which are available at www.asx.com.au.

Past Performance

Cromwell Property Group does not guarantee any particular rate of

return or the performance of Cromwell Property Group or any other

financial product nor do they guarantee the repayment of capital from

Cromwell Property Group, any other financial product or any particular

tax treatment. Past performance information given in this Presentation

is given for illustrative purposes only and should not be relied upon as

(and is not) an indication of future performance. Actual results could

differ materially from those referred to in this Presentation.

Future Performance

This Presentation contains certain "forward looking" statements.

Forward looking statements, opinions and estimates are based on

assumptions and contingencies which are subject to change without

notice. Forward-looking statements, including projections, indications or

guidance on future earnings or financial position and estimates are

provided as a general guide only and should not be relied upon as an

indication or guarantee of future performance.

There can be no assurance that actual outcomes will not differ

materially from these statements. To the fullest extent permitted by law,

Cromwell Property Group and its directors, officers, employees,

advisers, agents and intermediaries disclaim any obligation or

undertaking to release any updates or revisions to the information to

reflect any change in expectations or assumptions.

Reliance

The information in this Presentation has been obtained from or based

on sources believed by Cromwell Property Group to be reliable. To the

maximum extent permitted by law, Cromwell Property Group, their

officers, employees, agents and advisors do not make any warranty,

express or implied as to the currency, accuracy, reliability or

completeness of the information in this Presentation and disclaim all

responsibility and liability for the information (including without limitation,

liability for negligence).

Not financial product advice

This Presentation is not financial product advice or a recommendation

to acquire securities. The information in this Presentation does not take

into account your individual objectives, financial situation or needs.

Before making an investment decision, Investors should consider, with

or without a financial or taxation adviser, the relevant information

(including the information in this Presentation) having regard to their

own objectives, financial situation and needs. Investors should also

seek such financial, legal or tax advice as they deem necessary or

consider appropriate for their particular jurisdiction.

Cromwell Corporation Limited is not licensed to provide financial

product advice in respect of Cromwell Property Group securities. To

the extent that general financial product advice in respect of Cromwell

Property Group stapled securities is provided in this Presentation. It is

provided by Cromwell Property Securities Limited. Cromwell Property

Securities Limited and its related bodies corporate, and their associates,

will not receive any remuneration or benefits in connection with that

advice. Directors and employees of Cromwell Property Securities do

not receive specific payments of commission for the authorised services

provided under its Australian financial services licence. They do not

receive salaries and may also be entitled to receive bonuses, depending

upon performance. Cromwell Property Securities Limited is a wholly

owned subsidiary of Cromwell Corporation Limited.

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES


Cromwell Property Group

Cromwell Property Group

Market cap: $1.3 bn1

Security price: $0.921

Gearing: 44.0%2 Operating earnings: 7.50 cps3 Distributions: 7.25 cps3

Investment portfolio4

Portfolio value: $1.9 bn

# Assets: 25 Weighted average cap rate: 8.4% Weighted average lease expiry: 6.0 yrs

Funds management platform Assets under management: $718 m5 Number of Funds: 4 Capital employed: $15 m6

1) As at 20 February 2013

2) Calculated as net debt to total assets less cash, as at 31 December 2012 adjusted for subsequent sale of 101 Grenfell Street, Adelaide and settlement of security purchase plan announced in December 2012

3) FY13 guidance

4) As at 31 December 2012 adjusted for subsequent sale of 101 Grenfell Street, Adelaide

5) Includes value of Ipswich City Heart and Box Hill properties as if complete

6) As at 30 June 2012

Cromwell has evolved organically over 13 years

Listed fund manager recapitalised by existing

management in 1998

REIT structure created through stapling and

merger of unlisted funds in 2006

Focused and clear strategic direction

Conservatively opportunistic investment style

Innovative and considered product creation

Disciplined and diligent operations


Current Cromwell Property Portfolio

HQ North, QLD

475 Victoria

Avenue, NSW

Exhibition St, VIC Collins St, VIC

Qantas HQ, NSW

Synergy, QLD


Property portfolio1

Approximately 69% of gross portfolio income growing by an average minimum of 3.8% over FY13

Australian portfolio, with 91.4%2 office

Balanced allocation to Brisbane, Sydney, Melbourne, Canberra

69% of portfolio subject to fixed or minimum rent reviews in FY13

Average minimum increase of 3.8% in FY13

84% of rental income from government3 or listed companies4

Tenant Classification2

1) Statistics as at 31 December 2012 adjusted for sale of 101 Grenfell Street , Adelaide

2) By income

3) Includes Government owned and funded entities

4) Includes subsidiaries of listed companies

Next Review Type

Total

Gross Income Cumulative

Fixed (avg 3.8% FY13) 69.3 % 69.3 %

CPI 22.0 % 91.3 %

Market / Expiring 8.7 % 100.0 %

Geographic Diversification2 Sector Diversification2

25.0%

1.4%

1.6%

28.2% 20.4%

23.4% VIC

TAS

SA

QLD

NSW

ACT

4.1%

91.4%

4.5%

Retail

Commercial

Industrial

39.3%

45.1%

15.6%

Government Authority

ListedCompany/Subsidiary

Private Company


Clear strategy and investment philosophy

Consistent, focused

strategy

Focus on CBD, CBD fringe and established suburban markets

Maintain defensive portfolio characteristics of strong tenant covenant, long WALE and fixed growth

Active recycling programme to secure returns, improve portfolio quality and fund investment opportunities

Seek acquisitions that offer superior returns (yield and value upside) within a defensive portfolio strategy

Leverage property expertise and distribution base to expand funds management platform, boosting profitability and

growth

Differentiated strategy provides access to a greater opportunity set and potential for outperformance

Complementary

asset acquisitions

Cromwell intends to continue to seek acquisition opportunities which complement its investment strategy and

existing portfolio

Typical acquisition targets must complement existing portfolio:

initial acquisition yield of 8% pa +

total return targets of 12% pa +

focus on markets which Cromwell consider will outperform

Value adding

co-investment and

funds management

opportunities

In line with expansion of the funds management platform, where appropriate, Cromwell will seek to warehouse and

sell down new retail funds generating targeted 20-35% IRR’s on Cromwell’s committed equity

On a case by case basis, Cromwell will consider co-investment opportunities with key wholesale partners to

increase overall income and generate additional fund and property management fee revenue


Disciplined capital management strategy

Debt diversified amongst five lenders and seven facilities

Structure provides most cost effective form of funding and is well suited to nature of portfolio

Long term quality cashflow enables gearing of 40-50% to be carried comfortably

All four major Australian banks participating

Weighted average debt maturity of 2 years with no material maturities until May 2014

Gearing to moderate over the medium term through the cycle

Aim to maintain gearing around 45% over FY13

Growth in asset base due to yield compression across investment portfolio expected to reduce gearing

FY13 payout ratio of 96% appropriate given long WALE and nature of underlying portfolio

Limited maintenance capital and lease costs required

Recent equity raisings provide capacity for growth

Institutional placement of $143m in December 2012 materially oversubscribed

Security purchase plan for retail securityholders raised $39m after scale-back

Capital will also be realised through recycling of non core assets

Provides significant funds for future acquisition and funds management initiatives


Consistent outperformance vs. market

Cromwell has consistently outperformed the S&P/ASX 300 A-REIT Accumulation Index since stapling in 2006

Outperformance of 6.6%, 14.8% and 37.0% per annum over 3, 5 and 10 years respectively

Direct property performance in top quartile of managers rated by IPD since inception in 1999

Cromwell Performance to December 2012 (Annualised Total Securityholder Return)1

11.7%

7.6%

11.3%

9.8%

5.1%

9.7%

1.9% 2.5% 1.6%

0%

2%

4%

6%

8%

10%

12%

14%

3 Years 5 Years 10 Years

Cromwell PropertyGroup

IPD Australian AllFund Universe

Excess Returns

Direct Property Returns (to 31 December 2012 Annualised)

15.7%

6.1%

39.4%

9.1%

-8.7%

2.4% 6.6%

14.8%

37.0%

-20%

-10%

0%

10%

20%

30%

40%

50%

3 year 5 year 10 year

CMW Return

S&P / ASX 300 A-REITAccumulation Index

Excess Performance

Source: IRESS Source: IPD

1) Includes distributions and change in price, annualised amount


Superior yields to peer group

Cromwell offers superior yields and growth compared to its peer group

100bps premium to average FY13 EPS yield of peer group

180bps premium to average FY13 DPS yield of peer group

Focus on long-term leases and quality tenants represents best risk-adjusted return on equity in current environment

Funds management earnings can grow with minimal committed equity

FY13 EPS yield1 FY13 DPS yield1

BWP: BWP Trust; CPA: Commonwealth Property Office Fund; CQR: Charter Hall Retail REIT; DXS: Dexus Property Group; IOF: Investa Office Fund; SCP: SCA Property Group

1) Cromwell EPS and DPS yields are FY13 EPS and FY13 DPS as at 20 February 2013 (closing price of $0.92)

Source: Broker earnings and distributions consensus estimates; company filings. Pricing as at 20 February 2013

5.5% 5.7% 5.8% 6.1% 6.5%

7.0% 7.9%

0%

2%

4%

6%

8%

10%

DXS CPA IOF BWP SCP CQR CMW

Peer average 6.1%

180bps premium

6.1%

7.1% 7.2% 7.5% 7.7% 7.8% 8.2%

0%

2%

4%

6%

8%

10%

BWP IOF DXS SCP CPA CQR CMW

Peer average 7.2%

100bps premium


Australian property sector poised for capital growth

Continuing strong investor preference for high quality long term

yield

Australian bond yields and interest rates close to historic lows,

but still one of the highest of the developed economies

Low interest rate environment offering significant yield arbitrage

vs. property and A-REIT yields

Increased investor focus expected to force up pricing and lead to

overall cap rate compression

Significant opportunity for capital upside as property yields expected to tighten

Property yield vs. 10 year bond rate

Source: IRESS; BofA Merrill Lynch Global Research

0%

2%

4%

6%

8%

10%

2000 2002 2004 2006 2008 2010 2012

Office cap rate (7.7%) 10-year bond (3.5%)

Cromwell cap rate (8.4%)


Office assets seeing increased buyer demand

Investor focus on high quality yield now impacting on overall

demand for office assets

minimal supply in most markets which is expected to

drive significant rental appreciation over 2 – 5 years

Retail property remains subject to weak consumer spending

pressure on rents not abating and traditional retailers

continuing to face challenges of lower spending growth

and increased online sales

Industrial in demand, but limited scope for a further reduction in

yields

Residential still a challenging sector, particularly in Victoria

where significant supply is available in coming years

Rolling capital return indicies to December 2012

Cromwell is well placed to benefit from an upturn in commercial property values

-30%

-20%

-10%

0%

10%

20%

30%

Dec

-85

Dec

-87

Dec

-89

Dec

-91

Dec

-93

Dec

-95

Dec

-97

Dec

-99

Dec

-01

Dec

-03

Dec

-05

Dec

-07

Dec

-09

Dec

-11

All Property Retail Office Industrial

Source: IPD Research


Funds Management

Fund Sector Investors Total Assets

Number of

Properties Ongoing Fees Initial Fees

Cromwell Box Hill Trust Direct property Retail $117m1

1 0.60% 3.0%

Cromwell Riverpark Trust Direct property Retail $197m 1 0.60% 3.0%

Cromwell Ipswich City Heart Trust Direct property Retail $93m1 1 0.60% 3.0%

Cromwell Phoenix Property Securities Fund Listed property Retail $47m N/A 0.82% N/A

Phoenix Mandates Listed property Wholesale $264m N/A Variable N/A

Total $718m

Funds Management Summary

1) Forecast completion value

Focus on retail distribution

Over 12,000 Cromwell securityholders, many of

whom invested in our products originally and

continue to do so

Over 20,000 prequalified potential retail investors

Over 4,000 are current fund investors

Initiatives in place to add 5,000 plus new

prequalified investors in next 12 months

Larger dealer groups and financial advisors

Focusing on boutique advisors, many of whom

are long term supporters

Larger groups are showing interest in direct

property again

Can bring significant volume once they commit to

the sector

Need a combination of product approval and

platform inclusion to maximise inflows

Wholesale clients

Investigating opportunities on a case by case

basis

Likely to be targeting for core plus property assets


Why target retail investors?

Significant cash on the sidelines

Over 496,000 self managed super (pension) funds (Dec 12) with

$136 billion in cash and term deposits

Majority of new inflows to super and retail investment platforms is

being retained in cash

Bank funding from customer deposits has risen significantly since

2008

Investors are at an inflection point

Cash returns have reduced significantly over past 18 months

Have seen a significant increase in investment inflows and

enquiries

Product quality and structure remains key to securing retail

demand

Cromwell has limited competitors with scale in the market

Most new entrants are smaller scale or targeting wholesale funds

Box Hill Trust Key Statistics1

1) For further details on the Box Hill Trust, see the PDS dated 18 December

2012.

2) Initial yield, expected to increase to 8.00% post practical completion

3) Payable as the equity is raised (2.5%) and the building is constructed (0.5%)

4) Payable from the date of practical completion.

Box Hill Trust Fee Structure

Fund

Syndicate equity to be raised $67m

Gearing 48%

Initial Distribution 7.75%2

Fee Type Amount

Acquisition & project management $3.5m (3%)3

Ongoing funds management (annual) $0.7m (0.6%) 4

Property asset management (annual) $0.25m (0.15%)4

Performance Fee

20% of excess above

10% IRR, payable on

sale and any

extension of the term


Future growth drivers

Average fixed property rental growth of 3.8% for FY13

Underpins property income in current soft market

Growth in earnings from increased activity in funds management business

Property yield premium to bond / cash yields close to historical highs

Strong appetite for yield with low volatility amongst retail investors

Demand for current Box Hill equity raising exceeding Ipswich City Heart Trust

Actively sourcing product for next unlisted fund launch

Earnings upside potential from lower base interest rates

Current average cost of debt of 6.4% based on existing hedged rates

Cost of new debt approximately 5.25%

Majority of hedges expire over the next 3 years, leading to potential lowering of interest costs over this period

In addition to these organic factors, growth potential through accretive opportunistic acquisitions

Capital available through recent equity raisings and continued recycling of non-core assets

Will maintain a disciplined approach to new acquisitions

Seeking to deploy further funds during 2013

Cromwell is able to benefit from a number of organic growth factors


Near term outlook

Continued focus on maximising cash flow to securityholders

Operating earnings expected to be at least 7.5 cps in FY13, 8.2% yield1

Distributions expected to be 7.25 cps in FY13, 7.9% yield1

Simple balance sheet and minimal development exposure

Enables payout ratio of 90% plus

Targeting growth in NTA and operating earnings per security

Minimum rental increases will underpin property earnings

Will benefit significantly from improving valuations if yield compression occurs

Will continue disciplined approach to transactions

Continued sale of assets with low growth potential

Targeting improvement in debt profile over next 1-2 years

Exploring cost effective alternatives to extend debt expiry profile

Targeting index inclusion in S&P / ASX 200 and 300 over time

Currently ranked 123th largest entity by free float market cap2

Cromwell believes liquidity has built to levels which enable qualification for S&P/ASX 300

1) Based on closing price of $0.92 on 20 February 2013

2) Bloomberg, 20 February 2013


Daryl Wilson

CFO

Ph: +61 402 046 883

[email protected]

Discover what we’re about www.cromwell.com.au/in-a-nutshell

Presented by:

Paul Weightman

CEO / Managing Director

Ph: +61 411 111 028

[email protected]

Cromwell Prospering in a low growth world · Portfolio value: $1.9 bn # Assets: 25 Weighted average cap rate: 8.4% Weighted average lease expiry: 6.0 yrs Funds management platform

Documents