People driven

peopleSecurityholder Half Year Update

as at 30 June 2012

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Australand Securityholder Half Year Update as at 30 June 2012 1

Half year key metrics

$68.2mOperating profit after tax

$89.7mStatutory profit after tax

$33.8mInvestment property revaluation gain

10.5¢Distribution per stapled security

11.8¢Earnings per stapled security on operating profit after tax

$3.46Net tangible assets per stapled security

People driven people

Chairman’s and Managing Director’s Report

15 August 2012

Dear securityholder

We are pleased to report Australand Property Group’s results for the half year ended 30 June 2012.

The Group reported a first half operating profit after tax of $68.2 million, a 5% increase on the prior corresponding period.

The Group’s statutory result for the half year was a net profit after tax of $89.7 million, a 6% increase on the 2011 half year result. Our statutory result included investment property revaluation gains of $33.8 million, partially offset by an unrealised loss from the mark to market of interest rate derivatives of $12.2 million.

The increase in operating profit for the first half demonstrates the resilience of the Group’s business model. Our industrial and office Investment Property portfolio delivered strong growth in recurrent earnings for the Group, driven by comparable rental growth and income from developments which were completed during 2011. Our Commercial & Industrial division has secured commitments in excess of 100,000 sqm of new industrial space and has maintained a solid forward workload. Residential earnings are up strongly reflecting the performance of key projects during the half.

An interim half year distribution of 10.5 cents per security was paid to securityholders on 7 August 2012. The Group currently expects to pay a further distribution of 11.0 cents per security for the second half, bringing the total distribution for the 2012 financial year to 21.5 cents per security.

Trading conditions remain challenging due to both global and domestic uncertainty, leading to a lack of business and consumer confidence. The Group, however, remains well positioned and expects to deliver growth in operating earnings for 2012 in the order of 3-4% on 2011.

Bob Johnston Olivier Lim Managing Director Chairman

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Commercial & IndustrialAs at 30 June 2012, the Commercial & Industrial division controlled an industrial landbank of 360 hectares (100% zoned) in the major markets of Melbourne, Sydney, Brisbane and Adelaide. In addition, the division had an office development pipeline of approximately 170,000 sqm of net lettable area.

Trading conditions for the Commercial & Industrial division remained difficult in the first half of 2012, with tenants and owner occupiers remaining cautious on the economic outlook. Despite this, the Group has continued to maintain a solid market share securing commitments in excess of 100,000 sqm for new industrial space.

In the half year to 30 June 2012, the Commercial & Industrial division achieved an EBIT result of $9.5 million (HY11: $12.9m). While EBIT for the half was lower than last year, the total contribution, including NTA uplift, was in line with the previous period. Buildings with a total net lettable area of 66,900 sqm were delivered along

with land sales of 127,000 sqm in the period.

Several major projects contributed to the results for the half year, including the distribution facility for Toll at Altona in VIC and the Spring Hill Shopping Centre in VIC.

The 357 Collins Street project in Melbourne is expected to complete in the fourth quarter of 2012. Approximately 70% of the net lettable area has executed agreements for lease in place with solid interest for the remainder of the space.

The Rhodes F building in Sydney is expected to complete in early 2013 and is well positioned given the limited competing supply, solid enquiry and amenity offered at Rhodes Corporate Park. Initial leasing enquiry has been positive with an executed agreement for lease in place over 37% of the net lettable area.

As at 30 June 2012, the Commercial & Industrial division had a forward workload of 234,000 sqm, which is in line with that held at 31 December 2011.

Australand Securityholder Half Year Update as at 30 June 2012 2

Investment PropertyAs at 30 June 2012, the Investment Property division had a total portfolio value of $2.3 billion comprising 70 properties, including 3 properties under development. The portfolio is primarily diversified across the industrial (52%) and office (43%) sectors.

Our portfolio metrics remain solid, with high occupancy, long leases and fixed rental growth providing good visibility of earnings from the division. The portfolio’s tenancy profile remains of a high quality with 83% of income sourced from ASX listed companies, federal and state governments and multi-national corporations.

For the 2012 half year, the Investment Property division achieved an EBIT result of $87.8 million (HY11: $81.8m) before property revaluation gains, a 7% increase on the prior corresponding period. The Investment Property portfolio was revalued at 30 June 2012,

resulting in a net gain of $33.8 million for the period. During the half year, independent valuations were undertaken on approximately 30% of the Investment Property portfolio (by value).

In the six months to 30 June 2012, key leasing activity included:

—7,656 sqm office tenancy to TNT in Mascot, NSW for a term of 10 years; —3,439 sqm office tenancy to Vanguard at Freshwater Place, VIC for a term of 7 years; —25,705 sqm industrial tenancy to Schweppes in Western Sydney for a term of 2 years; and —8,520 sqm industrial tenancy to Danks in Western Sydney for a term of 5 years.

The Investment Property portfolio has low vacancy and no material leases expiring in the second half of the year and is well positioned with average fixed rent increases of 3.4% over 95% of the portfolio’s income.

357 Collins Street, Melbourne, VIC

Currently under re-development and due for completion in the fourth quarter of 2012, this 22 level office tower in the heart of the Collins Street financial district in Melbourne’s CBD will be finished to A grade quality. The building is designed to achieve a 4 star Green Star rating and a 5.0 star NABERS rating.

Artist’s impression of Building F at Rhodes Corporate Park, NSW

Building F, the last stage of the Rhodes Corporate Park development, will offer over 17,000 sqm of A grade office accommodation. This building has been designed to achieve a 5 star Green Star rating and 5.0 star NABERS rating.

People driven people

Review of OperationsF

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ResidentialThe Residential division’s development activities span Australia’s major population centres of Melbourne, Sydney, Perth and South East Queensland. As at 30 June 2012, the Residential division had approximately 21,300 lots under management in its development pipeline with an estimated end value of $8.0 billion. The Group’s Residential portfolio is diversified between land development activity and medium/high density infill developments where built form plays a more integral part of the development process.

The Residential division’s performance for the half year reflects the solid momentum that was carried into 2012 and this has been maintained during the first half. Uncertainty in the minds of consumers continues to drive poor sentiment but sound fundamentals in most markets underpin demand for well positioned, value for money homes.

The Residential division delivered strong growth despite lower sales volumes and, importantly, increased the level of contracts on hand with solid sales being recorded across the division’s top 10 projects. For the half year to 30 June 2012, the Residential division achieved an EBIT result of $38.0 million (HY11: $25.7m), up 48% on the prior corresponding period.

Following a very strong response from the local market, settlements have commenced at Greenhills Beach (NSW). Settlements also occurred at Cockburn Central (WA) and Kangaroo Point (QLD). Construction has also begun at both Wolli Creek and Clemton Park Village in Sydney which will deliver nearly 300 settlements over the next 18 months.

As at 30 June 2012, the Residential division held 1,316 sales contracts on hand with 59% of these expected to be recognised in the second half of 2012, which positions the division well for the year.

Australand Securityholder Half Year Update as at 30 June 2012 3

Hamilton Reach, Brisbane, QLD

Bordered by 530 metres of river frontage, as well as the tranquil 2.5 hectare Northshore Riverside Park and the Royal Queensland Golf Club, Hamilton Reach is steadily attracting buyers who recognise the value of this unique living environment.

People driven people

Review of Operations

People driven peopleOur “people driven people” approach to our business places people, safety and community engagement at the heart of our operations.

Safety performance remains a focus for everyone in Australand and we are proud of the significant improvement that we have achieved in our key safety performance measures over recent years. Nevertheless, when it comes to safety we know we can never rest and the Board and management remain vigilant and committed to ongoing improvement in our safety practices.

Since the Annual & General meetings in April, an additional member has been added to Australand’s Board. In May 2012, Ms Beth Laughton was appointed as an

independent non-executive director and as a member of the Audit Committee. Beth is an experienced director with extensive financial, audit, risk and capital markets experience. As at 30 June 2012, the Board comprised seven non-executive directors and one executive director, being the Managing Director.

Last year, the Group launched its new brand and a refreshed set of core values (Authentic, Respectful, Dynamic and Passionate). During 2012 we are continuing to embed these values in our business through various training and development programmes and by challenging our behaviour against these values every day.

We actively engage with the communities in which we operate and, in the first half of 2012, Australand staff have used in excess of 200 volunteering days (from an annual company bank of 500 volunteering days) to participate in activities such as Clean up Australia Day, Schools’ Tree Day, Kids under Cover and the Oxfam 100km walk. We firmly believe that engagement in these activities strengthens internal and external relationships and creates a stronger sense of staff connection with the company.

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Australand Securityholder Half Year Update as at 30 June 2012 4

People driven people

Strategy and Outlook

Key sectors Maintain focus on the core sectors of residential, industrial and office where we have competitive advantages

Recurring earnings

Target 60-70% of Group EBIT from recurrent earnings

—The Group continues to perform in line with target range

Development returns

Improve development divisions’ return on average capital employed (ROACE) to at least 12%

—The Group has made significant improvement in its return on development capital over the last two years —The Group continues to target a minimum 12% ROACE from its development divisions. However, subdued business and consumer confidence over the course of the first six months of the year has led to weaker market conditions than anticipated, impacting development returns. Accordingly, while the target of 12% remains a clear objective for the Group, it is unlikely to be met by the end of 2012.

Capital management

Prudent capital management

—Gearing of 32.6% as at 30 June 2012 (within target range of 25-35%) —Development pipeline fully funded with no corporate debt maturities until September 2013 —Targeting free cash flow coverage of distributions

Progress on strategic objectivesWhile the market clearly remains challenging, the Group has made good progress on its strategic objectives that were set two and a half years ago. Our performance against each of our key strategic objectives is shown in the table below:

OutlookThe Group has delivered a 5% increase in operating earnings for the first half, a creditable result given the challenging business environment and soft consumer sentiment being felt across many sectors. The impact of the recent interest rate reductions on the consumer remains uncertain, particularly as unemployment levels have begun to rise. The Group

does however, expect to deliver growth in operating earnings per security for 2012 in the order of 3-4% on 2011, underpinned by the high occupancy, minimal lease expiry and fixed rental growth from the Investment Property portfolio combined with the strong level of residential contracts on hand.

A half year distribution of 10.5 cents per stapled security was paid on 7 August 2012. The Group expects to pay a further distribution of 11.0 cents per stapled security for the second half, resulting in full year distributions of 21.5 cents per stapled security, in line with guidance previously provided to the market.

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Disclaimer: While every effort is made to provide accurate and complete information, Australand does not warrant or represent that the information in this Update is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot be excluded, Australand accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information. Please note that all figures are in Australian dollars unless otherwise indicated.

Contact detailsAUSTRALAND PROPERTY GROUPLevel 3, Building C 1 Homebush Bay Drive Rhodes Corporate Park Rhodes NSW 2138

PO Box 3307 Rhodes NSW 2138 DX 8419 Ryde

Tel + 61 2 9767 2000 Fax + 61 2 9767 2900

For more information about Australand, visit www.australand.com.au

Security Registry EnquiriesLink Market Services 1A Homebush Bay Drive Rhodes NSW 2138

Locked Bag A14 Sydney South NSW 1235

Tel 1300 554 474 (toll free) + 61 2 8280 7111 (for international callers) Fax +61 2 9287 0303

www.linkmarketservices.com.au

Access your investment onlineSecurityholders can update the following information with Link Market Services online at www.linkmarketservices.com.au:

—Update communication options —Update payment instructions —Update TFN/ABN —Update address details —Lodge proxy votes online —View holding summary —View holding history —View payment history —View tax history

2012 Key dates18 DECEMBER2012 final dividend/distribution announcement

21 DECEMBERStapled securities trade ex-dividend/distribution for 2012 final dividend/distribution

31 DECEMBER2012 final dividend/distribution record date

31 DECEMBERYear end

australand.com.au

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