FY19 Annual Update

FSREC Fund

Series

Market update

1.

241 O’Riordan Street, Mascot

Macro factors underpinning commercial real estate remain supportive

Spread of commercial property yield to 10 year government bond

Commercial property yields and interest rates

Commercial property yields by sector

3

(0.5%)

-

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

Jun

-07

Jun

-08

Jun

-09

Jun

-10

Jun

-11

Jun

-12

Jun

-13

Jun

-14

Jun

-15

Jun

-16

Jun

-17

Jun

-18

Jun

-19

4.50%

5.00%

5.50%

6.00%

6.50%

7.00%

7.50%

8.00%

8.50%

Jun

-07

Jun

-08

Jun

-09

Jun

-10

Jun

-11

Jun

-12

Jun

-13

Jun

-14

Jun

-15

Jun

-16

Jun

-17

Jun

-18

Jun

-19

Prime Office Yield Prime Industrial Yield

National Retail Yield

Source: Bloomberg, JLL Research, FSREC (30 June 2019)Disclaimer: historical performance is not a reliable indicator of future performance.

Sydney CBD vs Sydney suburban

Office markets

4

Source: JLL (30 June 2019)Notes:* Macquarie Park data as an illustration of a typical suburban Sydney marketDisclaimer: historical performance is not a reliable indicator of future performance.

Net effective office rents by market

$150

$250

$350

$450

$550

$650

$750

$850

Sydney CBD Suburban Sydney*

Melbourne, Brisbane and Canberra

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

Melbourne CBD Brisbane CBD Canberra

Ne

t e

ffe

ctiv

e re

nt

($/s

qm

)

Ne

t e

ffe

ctiv

e re

nt

($/s

qm

)

Non-discretionary consumption categories insensitive to changes in housing wealth

Effect of a 1 per cent change in housing wealth (per capita)

Retail sector – Non-discretionary categories resilient

5

%

0.6

0.4

0.2

0.0

-0.2

%

0.6

0.4

0.2

0.0

-0.2

Non-discretionary consumption

Sh

ort

-ru

n e

last

icit

ies

Source: ABS, Corelogic, RBA (6 March 2019), calculated over six months

Retail sector — sales growth

6

Source: ABS (30 June 2019)Disclaimer: historical performance is not a reliable indicator of future performance.

Non-discretionary retail

FRESH FOODAnnual growth: 3.1%

FOOD CATERINGAnnual growth: 2.9%

SERVICES/OTHERAnnual growth: 3.1%

Discretionary retail

DEPARTMENT STORESAnnual growth: -1.1%

HOUSEHOLD GOODSAnnual growth: -1.5%

CLOTHINGAnnual growth: 1.7%

Annualised sales growth by category

Retail vacancy by shopping centre type

Retail sector — vacancy rates by centre type

7

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Q22009

Q42009

Q22010

Q42010

Q22011

Q42011

Q22012

Q42012

Q22013

Q42013

Q22014

Q42014

Q22015

Q42015

Q22016

Q42016

Q22017

Q42017

Q22018

Q42018

Q22019

Neighbourhood centres

Mid-sized centres

Large centres

Source: JLL (30 June 19)Disclaimer: historical performance is not a reliable indicator of future performance.

Retail sector – recent transactions

8

Epping, Melbourne | $44.5m, 5.7% | December 2018

Caloundra, Sunshine Coast | $23.1m, 5.7% |November 2018

Cecil Hills, Sydney | $21m, 5.9% | June 2019Willowdale, Sydney | $35m, 5.6% | July 2019

Source: Colliers International, CBRE, FSRECDisclaimer: historical performance is not a reliable indicator of future performance.

FY19 overview

2.

Marketfair, Campbelltown

FSREC Fund Series overview

10

Fund I Fund II Fund III Fund IV

No. of assets 5 5 2 1

Occupancy 99% 96% 98% 99%

WALE (years) 5.0 5.8 4.0 4.5

No. of tenants 133 98 62 70

Top tenants by income

1. Coles 2. Study Group3. Fitness First4. Woolworths 5. Aldi

1. Woolworths2. Coles3. Fitness First4. TK Maxx5. Foodworks

1. NSW Government2. Abbvie3. Woolworths4. Landis & Gyr5. Coates Hire

1. Kmart2. Coles3. Aldi4. Quality Pharmacy5. The Reject Shop

Geographic diversification (by value)

Geographic Diversification

Distribution yield1 4.4%2 5.3% 4.8% 4.0%3

72%

13%

15%

87%

13%

QLD

NSW VIC

SA

42%

11%

47%

100%100%

100%

37%

63%

100%

100%

Retail

Office

Note: All figures calculated for the year ending 30 June 20191 Based on initial capital invested2 Yield excluding capital return of $0.50 in FY18 following sale of 390 St Kilda Road, Melbourne3 Annualised yield

Fund performance1

11

Portfolio valuations Fund I Fund II Fund III Fund IV

June 2018 valuation $251.1 million $178.2 million $235.1 million n/a

June 2019 valuation $256.1 million $179.0 million $238.5 million $114.1 million

Portfolio valuation change ($) $5.0 million $0.8 million $3.4 million n/a

Portfolio valuation change (%) 2.0% 0.5% 1.5% 0.9%

Weighted avg. capitalisation rate 6.10% 6.18% 6.28% 6.25%

Fund Net Tangible Assets

NTA 2 $1.58 $1.60 $1.52 $1.513

Fund gearing

Gearing ratio 36.8% 38.6% 32.0% 39.6%

Notes:1 All figures based on unaudited estimates for 30 June 2019. Audited financials will be released in mid September 2019.2 If interest rate hedging accounting adjustments were excluded, the NTA would increase to: $1.63 (Fund I), $1.61 (Fund II), $1.54 (Fund III) and $1.54 (Fund IV).3 Fund IV NTA valuation based on historical acquisition cost, less depreciation.

Disclaimer: historical performance is not a reliable indicator of future performance.

Fund performance

12

Notes: All figures based on unaudited estimates for 30 June 2019. Audited financials will be released in mid September 2019.Performance is calculated on a total return NTA basis, inclusive of distributions and net of fees and costs, using audited and unaudited NTA per unit on a quarterly basis. The initial NTA used is the proforma NTA, or issue price net of issue costs. Historical performance is not a reliable indicator of future performance.

Operational

performance

3.

241 O’Riordan Street, Mascot

FSREC Fund Series—FY19 portfolio performance

14

Source: FSRECNotes: All figures calculated for the year ending 30 June 2019. Retail portfolio statistics calculated on portfolio of 12 shopping centres. All turnover figures based on unaudited sales turnover for the 12 months to 30 June 2019.Disclaimer: historical performance is not a reliable indicator of future performance.

Northpoint, [ ][ ], [ ]

portfolio annual turnover

$803m

Re

tail

po

rtfo

lio

on

ly

portfolio turnover growth

5.1%

retail portfolio weighting to supermarkets

33%

retail portfolio weighting to apparel

2.3%

majors turnover growth

5.4%

annual specialty sales growth

2.5%To

tal

po

rtfo

lio

leasing deals completed

50tenant retention on

lease expiry

66%

average leasing spread

1.5%like for like rental

growth

3.7%

FSREC Fund Series—retail portfolio diversification

Diversification by retail categories

15

Source: FSREC, calculated on portfolio of 12 retail centres as at 30 June 2019Note: All figures calculated by income* Includes Gaming Venues, Banks, Post Office, Health Insurance and Professional Services

Diversification by retail groups

32.6%

11.8% 9.3% 9.1% 8.3% 7.2% 6.8%

0.0%

10.0%

20.0%

30.0%

40.0%

Majors General Retail Food Catering Non-RetailSpecialty

Mini-Major Food Retail Retail Services

33%

29%

9%

29%

Major

National

Franchise

Independent

*

Sustainability

62%of portfolio has Solar*

*including Campbelltown installation (in progress)

Birkdale Fair, QLD

Lynbrook Village, VIC

16

1.5 MWInstalled*

530equivalent cars

=

Source: Australian National Greenhouse Accounts, July 2017

Customer focused branding strategy rolled out across portfolio

National marketing strategy

17

Leasing marketingConsumer marketing

Fund I — key metrics

Expiry profile

shopping centreassets

5tenants

133occupancy

99%

weighted average lease expiry

5.0 yrsleasing deals

completed (FY19)

16majors MAT growth

7.4%

Source: FSRECNote: All stats calculated as at 30 June 2019 (by income)

18

0%

10%

20%

30%

40%

2019 2020 2021 2022 2023 2024+

19% 15% 6%

4% 4%

Top tenants

Oxford Village, SydneyLake Innes Village

Coles Study Group Fitness First

Woolworths Aldi

Fund I—Oxford Village,

Sydney

19

Fund II — key metrics

Top tenantsExpiry profile

shopping centreassets

5tenants

98occupancy

96%

weighted average lease expiry

5.8 yrsleasing deals

completed (FY19)

19majors MAT growth

5.9%

20

0%

10%

20%

30%

40%

50%

60%

2019 2020 2021 2022 2023 2024+

21% 10% 5%

5% 4%Source: FSRECNote: All stats calculated as at 30 June 2019 (by income)

Newtown Central

Coles

Foodworks

Fitness First

TK Maxx

Woolworths

21

Fund II—Campbelltown master plan

Source: FSRECNote: Indicative outline of Marketfair Campbelltown and adjoining sites

Fund III — key metrics

Expiry profile

assets

2tenants

62occupancy

98%

weighted average lease expiry

4.0 yrsleasing deals

completed (FY19)

10majors MAT growth

3.4%

22Source: FSRECNote: All stats calculated as at 30 June 2019 (by income)

0%

10%

20%

30%

40%

50%

2019 2020 2021 2022 2023 2024+

22

25% 10% 7%

7% 6%

Top tenants

Toormina Gardens

Government Abbvie Woolworths

Landis+Gyr Coates Hire

23

Fund III—Toormina Gardens

[ ]

24

Fund III—Mascot energy efficiency upgrade

241 O’Riordan Street, Sydney

[ ]

5 star

energy rating

A high-quality convenience based sub-regional shopping in metropolitan Melbourne with growth potential

Fund IV Acquisition—

Keilor Central, Melbourne

25

Purchase price

Key acquisition metrics

$113mPurchase yield

6.3%Annual customer

visitations

7m

Occupancy

99%Anchors

Coles/Aldi/

KmartSite area

9ha

Annual centre sales

$158mWALE

4.5 years

Note: Purchase price and yield as at December 2018. All other figures as at 30 June 2019.

Strategy and

Outlook

4.

Keilor Central, Keilor

Strategy and outlook

27

fActive

managementPrudent capital

managementGrowth

opportunities

1 2 3

► Optimise portfolio income by improving tenant quality and mix

► Focus on customer experience to drive performance

► Maintain strong relationships with key tenants

► Strategic approach to maximise renewal and leasing outcomes

► Pursue value accretive projects and developments to drive growth

► Considered use of debt gearing over the cycle

► Effective use of interest rate hedging to minimisecosts and risk

Provide a secure and steady income stream for unitholders

This presentation has been prepared by Fort Street Real Estate Capital Pty Limited (ACN 164 101 731) (FSREC) a corporate authorised representative (CAR No. 440307) of Walsh & Company Asset Management Pty Limited (ACN 159 902 708, AFSL 450 257) (Walsh AM) as investment manager for Fort Street Real Estate Capital Fund I (ARSN 163 688 346) (Fund I) , Fort Street Real Estate Capital Fund II (ARSN 169 190 498) (Fund II), Fort Street Real Estate Capital Fund III (ARSN 605 335 957) (Fund III) and Fort Street Real Estate Capital Fund IV (ARSN 623 196 298) (Fund IV) (Funds). Walsh AM is a wholly owned subsidiary of Evans Dixon Limited (ACN 609 913 457) (ED1) and ED1 has a majority economic interest in FSREC.

This presentation may contain general advice. Any general advice provided has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider the appropriateness of the advice with regard to your objectives, financial situation and needs.

Past performance of the FSREC Funds is not a reliable indicator of the future performance of the FSREC Funds.

This presentation may contain statements, opinions, projections, forecasts and other material (forward-looking statements), based on various assumptions. Those assumptions may or may not provide to be correct. The Investment Manager and its advisers (including all of their respective directors, consultants and/or employees, related bodies corporate and the directors, shareholders, managers, employees or agents of them) (Parties) do not make any representation as to the accuracy or likelihood of fulfilment of the forward-looking statements or any of the assumptions upon which they are based. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward-looking statements and the Parties assume no obligation to update that information.

The Parties give no warranty, representation or guarantee as to the accuracy or completeness or reliability of the information contained in this presentation. The Parties do not accept, except to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this presentation. Any recipient of this presentation should independently satisfy themselves as to the accuracy of all information contained in this presentation.

28

Disclaimer