ALE Property GroupASX CEO Connect, Melbourne – 29 March 2018

Young and Jackson Hotel, Melbourne, VIC1

About ALE

Property Portfolio

Capital Management

FY19 Outlook and Performance

Attractive Investment Proposition

Development Case Studies

Contents

2Crows Nest Hotel, Sydney, NSW

About ALE

The Breakfast Creek Hotel, Brisbane, QLD

NSW14%

QLD31%

SA, 4%

VIC48%

WA, 3%

Australia’s largest portfolio of freehold pub properties

86 pub freehold properties across the five mainland capital cities

Long term triple net leases to ALH

Australia’s leading pub operator

owner of licences and certain development rights

Substantially capital city metro locations

Weighted average lease expiry of 10.8 years with four options

for ALH to extend by up to 40 years

Operated as pubs for average 60+ years

High Quality PropertiesAbout ALE

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Geographic Diversity

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107433

Value Composition

ALH: Australia’s Largest Pub Operator

~ 330 licensed venues

~ 550 liquor outlets

~ 2,000 short stay rooms

ALH is 75% owned by Woolworths and 25% by the Bruce Mathieson Group

Woolworths is Australia’s largest liquor retailer

ALE owns 27% of ALH’s operated venues

ALH owns ~ 45 pub properties

ALH FY17 Revenue

$4,256m

Up 3.7% on pcp

ALH FY17 EBITDAR

$803m

Up 13.0% pcp

18.9% of revenue

ALH Continues to Perform StronglyAbout ALE

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Rent and Term Structure

triple net leases*

fixed dollar rental (not turnover based) increasing annually by State based CPI (uncapped)

rent does not decrease with negative CPI movements

average initial lease terms remaining of 10.8 years

four options for ALH to extend leases by up to a further 40 years (to 2068)

Market Rent Reviews

rents can increase or decrease by 10% at November 2018**

open review in 2028 and at each 10 yearly extension date

* Three of the 86 properties are on double-net leases

** 74 of the properties have reviews at November 2018. The other nine properties have reviews in the years preceding and following November 2018.

High Quality PropertiesAbout ALE

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Property Portfolio

$1,100.5mStatutory property values

5.14%Average capitalisation rate

10.8 yearsWeighted average lease expiry

1.7%CPI Income growth

100% Occupancy

Capital Structure

41.7%Net gearing

4.2 yearsAverage debt maturity

7.9 yearsHedge maturity

4.26%All up cash interest rate

Baa2Investment grade rating

Equity Performance

100%Distribution tax deferred

$14.6mDistributable profit

10.35 cpsDistribution

$949.5mASX market capitalisation

18.0% p.a.Three year total return

Capitalisation rates, lease terms, interest rates, maturity terms and rental growth rates are all weighted averages.

Specific definitions are on other pages or in the statutory accounts.

Results are for the half year ending or as at 31 December 2017.

In addition to the weighted average lease expiry term, there are four 10 year options for ALH to extend (83 of 86 properties).

Half Year to 31 December 2017

Group Highlights

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Millions Dec 17 Dec 16 Comments

Revenue from properties $28.9 $28.4 Driven by annual CPI based rent increases

Other revenue $0.5 $0.4 Higher cash balances partly offset by lower interest rates

Borrowing expense 1 $11.1 $10.3 Lower interest rates on increased borrowings

Management expense $2.6 $2.3 Increased costs associated with market rent review preparations

Land tax expense $1.2 $1.1 Land tax for QLD properties only

Distributable Profit 2 $14.6 $15.1 Primarily impacted by increased borrowing expenses

Distributable Profit (cps) 3 7.48c 7.70c

Distribution (cps) 10.35c 10.15c In line with guidance. 2.87 cps paid from capital (cash reserves)

Half Year to 31 December 2017 Distributable Profit

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1. Borrowing expense changed for two reasonsa. borrowings increased by $40mb. average all up interest rate reduced from 4.35% to 4.26% p.a.

2. Distributable Profit excludes non-cash accounting items – see full reconciliation to IFRS Net Profit.

3. 195.8 million securities were on issue as at both dates above

4. Rounding differences may arise

Quality Income with Growth and OpportunitiesALE’s Property Portfolio

The Breakfast Creek Hotel, Brisbane, QLD

Land Holdings

Property Portfolio

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ALE’s 86 properties cover a land area of 954,000m. Equivalent to the core Sydney CBD

90%+ of land located in Australian capitals and major cities

$1.1 billion of book value based on current rental income

86 properties occupy a land area of 954,000 square metres

Average property size of 11,100 square metres

Average book value of $1,150 per square metre of land

Book values also include value of buildings and long term

leases

Average 25% of each property is occupied by pub and retail

liquor buildings (balance is car parking and vacant land)

Opportunities to continue to develop and expand existing

hotels

complementary higher and better use strategies including vacant

land and existing buildings

considered jointly by ALE and ALH

As at 31 December 2017. All areas are estimates and rounded approximations only

Significant Land Holdings

Property Portfolio

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335,000

72,00058,0006,500

482,000

Total Land Holdings By State (square metres)

While the spread remains high, movements in ALE’s average capitalisation rates are currently being driven by factors beyond movements in bond rates.

Capitalisation and Bond Rate Movements

Property Portfolio

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6.07%6.20% 6.45% 6.60% 6.44% 6.57% 6.59% 6.42%

5.99%5.53%

5.14%6.26% 6.45%

5.52%

5.10% 5.21%

3.04%

3.76%3.54%

3.01%

2.00%

2.66%

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

ALE's average capitalisation rates

Australian 10 year bond rates

ALE's capitalisation rates

Future Increases In Income

Rents are expected to increase atcapped market rent review in Nov2018 and more materially at the uncapped review in 2028

Current Income

100% of the properties are leased to ALH

ALH is Australia’s largest pub operator

Long term triple net leases (83 of 86properties)

Properties have operated in current locationsas pubs for more than 60 years on average

Potential Long Term Value

ALE’s properties have a significant land value component

More than 90% of the ~1 square kilometre of land owned by ALE is located in Australian capitals and major cities

ALE and ALH continue to explore development opportunities together for mutual benefit

Alternate use opportunities exist for a number of the properties in the longer term

Layers of Value

Property Portfolio

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Capital Management

Queens Hotel, Perth, WA

Capital Management Priorities

Managing refinancing and interest rate risk

Growing securityholders’ distributions

Capital Structure with Positive Features

Low risk debt capital structure

Investment grade credit rating of Baa2 (stable)

Debt maturities diversified across next 5.9 years

Next debt maturity in August 2020

Base interest rates fully hedged for next 7.9 years

All up fixed cash interest rate of 4.26% p.a.

Gearing at 41.7% (42.7% at June 2017)

Interest cover at 2.6 times

Capital ManagementSound Debt Capital Structure

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Crows Nest Hotel, Sydney, NSW

Diversified Debt Maturities and Long Term Hedging Capital Management

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Note: Base interest rates exclude credit margins

Outlook and Performance

Balmoral Hotel, Victoria Park, Perth

2028 Market Rent Open market rent review where the full

extent of the material difference will be captured in each of the individual properties’ rents

Current vs Market Rent Current total rent is materially less than

current view of market rent (the difference)

Extent of the difference is not spread evenly across the portfolio. Difference is a result of factors including:

continual operational improvements of many pubs by ALH

capital expenditure undertaken by ALH to redevelop hotels and add Dan Murphy’s bottle shops and reactivate accommodation (at least 30,000 sqmover the past 14 years)

improved gaming regulatory framework, especially in Victoria

November 2018 Market Rent Each hotel’s earnings outlook, past earnings

results and applicable market rent parameters will be important to the outcomes

On current EBITDAR results, ALE is on strong grounds for a positive outcome

Given the uneven spread of the difference across the portfolio, we do not expect that all 76 individual hotels will receive the full 10% rental uplift

Certainty of Earnings with Long Term UpsideOutlook – Market Rent

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1. Total return is the annual compound return (IRR) for the period shown to June 2017

2. Includes equity market price of $4.67 as at 30 June 2017 and reinvestment of distributions and 2009 renunciation payment

3. ALE, All Ordinaries Accumulation Index and UBS S&P REIT 300 Index data sourced from ASX, UBS and ALE

OutperformanceALE’s 14 Years of Equity Performance

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-5.6%

12.2%14.2%

-0.1%

5.7%

13.1%

6.8%

11.6%

3.5%

8.9%7.5%

22.9% 23.2%

10.4%

21.8%

-10%

-5%

0%

5%

10%

15%

20%

25%

1 yr 3 yrs 5 yrs 10 yrs Since IPO

Total Return

A-REIT 300 All Ords ALE

Development Case Studies

ALE’s Property Portfolio

Burvale Hotel, Melbourne, VIC20

Located in Southport, Gold Coast next to an existing light rail stop

Acquired in 2003 for $4.4m at a cap rate of 8.4%

Hotel completely reconstructed and reopened June 2017

New Dan Murphy’s opened November 2016

Valued December 2017 at $10.7m at a cap rate of 5.36%

Before Development Completed Development

Anglers Arms Hotel, Gold Coast, QLDCase Studies – Property Development by ALH

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Located in the north eastern suburbs of Adelaide

Acquired for $2.2m in 2003 at a cap rate of 9.9%

Substantially reconstructed and then reopened the hotel in May 2016

ALH joined forces with Coopers Brewing to create Adelaide’s first Coopers Alehouse

New Dan Murphy’s opened December 2017

Awarded Best Redeveloped Metropolitan Hotel for 2017 in South Australia by AHA

Valued December 2017 at $6.3m at a cap rate of 4.76%

Completed Development

Gepps Cross Hotel, Adelaide, SACase Studies – Property Development by ALH

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428 rooms are currently offered across 24 of ALE’s properties

Significant reactivation of accommodation in recent years

Large number of renovated and reopened rooms

ALH currently operates around 2,000 rooms nationally

Mostly three or four star short stay accommodation

Positive for ALH’s earnings

Positive for ALE’s future market rent prospects and property values

Reactivated Accommodation

Accommodation – 428 RoomsCase Studies – Property Development by ALH

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Major metro rail project (circa $6 billion)

Significant addition to CBD passenger capacity

New Town Hall metro station to surround hotel

Station access from both Flinders and Swanston Streets

Significant additional pedestrian traffic

Expected to be operational by 2026

Continuing dialogue with Cross Yarra Partnership and MMRA

Young & Jackson Hotel, Melbourne, VICCase Studies – Melbourne Metro Rail Project

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Young and Jackson Hotel Melbourne Metro Rail Project

High quality pub property portfolio

Triple net leases to ALH, Australia’s largest pub operator

Long leases over strategically important property with terms averaging 10.8 years plus options

Current property rents are substantially below market levels

Potential opportunities from increased utilisation of land and further development of properties

Investment grade and low risk capital structure

FY18 distribution yield of at least 4.3%1

Aim to increase annual distributions by at least CPI

FY18 distribution expected to be 100% tax deferred. FY19 is expected to be partly tax deferred

Potential for enhanced distributions and/or capital management initiatives following 2018 rent review

ALE’s Value Proposition

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1. Based upon a security price of $4.85 as at 31 December 2017 and FY18 distribution guidance of at least 20.40 cps plus CPI

About ALEResearch Analyst Coverage of ALE

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The following equity research analysts currently cover ALE’s stapled securities:

Johannes Faul Morningstar

Rob Freeman / Stuart McLean Macquarie Securities

Richard Jones JP Morgan Securities

Jon Mills Intelligent Investor

Experience and DiversityAbout ALE

Andrew WilkinsonManaging Director & CEO

• Appointed CEO November 2003 and Managing Director in November 2004

James McNallyExecutive Director

• Appointed as an executive director in June 2003

Pippa DownesNon-Executive Director

• Appointed as a non-executive director in November 2013

Paul SayNon-Executive Director

• Appointed as a non-executive director in September 2014

Nancy MilneNon-Executive Director

• Appointed as a non-executive director in February 2015

Andrew SladeCapital Manager

• Andrew joined ALE in July 2005

Board of Directors

• Board of Directors have extensive experience covering property, finance, risk management, compliance and capital management

• Board renewal and transfer of institutional knowledge is now well advanced

Senior Management Team

• Experienced and stable management team

Don ShipwayAsset Manager

• Don joined ALE in September 2010

Michael ClarkeCompany Secretary & Finance Manager

• Michael joined ALE in October 2006

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Robert MactierChairman & Non-Executive Director

• Appointed as a non-executive director in November 2016 and Chairman in May 2017

Andrew WilkinsonManaging Director & CEO

• Appointed CEO November 2003 and Managing Director in November 2004

Disclaimer

This presentation has been prepared by Australian Leisure and Entertainment Property Management Limited (ALEPML) ABN 45 105 275 278 for general information purposes only, without taking into account any potential investors’ personal objectives, financial situations or needs. Before investing in securities issued by entities managed by ALEPML, you should consider your own objectives, financial situation and needs or you should obtain financial, legal and/or taxation advice.

Past performance information provided in this presentation may not be a reliable indication of future performance. Information, including forecast financial information, in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments of entities managed by ALEPML. Due care and attention has been exercised in the forecasts and any variation may be materially positive or negative.

This information contained herein is current as at the date of this presentation.

ALE Property Group

ALE Property Group

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Stamford Hotel, Melbourne, VIC

ALE Property Group