Page 1

180 Australian Unity YEARS Real Wellbeing ASX Announcement - Australian Unity Office Fund 23 February 2021 FY21 half year financial results – strong leasing outcomes , increased occupancy , solid rental collections , earnings guidance provided Australian Unity Investment Real Estate Limited ( AUIREL ) , as Responsible Entity of Australian Unity Office Fund ( ASX : AOF ) , today announced AOF's half year results for the FY21 financial year . Key financial and operational highlights for 1HFY21 included : • • Funds from Operations ( FFO¹ ) of $ 15.1 million , or 9.2 cents per unit Distributions of $ 12.2 million , or 7.5 cents per unit • • • • • Leasing activity of approximately 12,000 sqm for the half year ( approx . 11.1 % of the portfolio by NLA ) resulting in an increase in occupancy to 95.3 % , up 1.6 % from 93.7 % as at 30 June 20202 Rental collections for the half year of 98.3 % ³ ( April to June 2020 92.0 % ) Progress made on COVID - 19 related rent relief requests with outstanding requests reducing by approximately two - thirds4 . $ 749,000 of COVID related support provided to tenants during the period Net tangible assets ( NTA ) of $ 2.77 per unit , an increase of 5 cents per unit , from $ 2.72 per unit at 30 June 2020 Balance sheet remains strong with gearing of 30.7 % 5 with no debt expiring until October 2022 AOF provides FY21 FFO guidance of 18.3 - 18.7 cpu and distribution guidance of 15.0 cpu6 . Distributions of 15.0 cpu equates to a yield of approximately 7.1 % , attractive in the current low interest rate environment . 1 FFO is a Property Council of Australia definition which adjusts statutory Australian Accounting Standards net profit for non - cash changes in investment properties , non - cash impairment of goodwill , non - cash fair value adjustments to financial instruments , amortisation of incentives and leasing costs , rental straight - line adjustments to financial instruments and other unrealised or one - off items 2 The 12,000 sqm comprises approximately 11,200 sqm of signed leases , together with approximately 800 : signed heads of agreement . sqm under 3 Rental collections , including payment of arrears , as a percentage of billings , averaged 98.3 % for the half year 4 Approximately 16 % of tenants , by average monthly gross income , have requested proportionate rent relief under the National Cabinet Mandatory Code of Conduct . Following " good faith ” discussions with those tenants , a number of requests have been finalised , or withdrawn , such that tenants representing approximately 5 % of AOF's average monthly gross income have outstanding requests at 31 December 2020 5 Gearing is interest bearing liabilities ( excluding unamortised establishment costs ) less cash divided by total tangible assets less cash 6 Subject to no material change in market conditions , no material change to the portfolio and no unforeseen events 7 Based on 19 February 2021 closing unit price of $ 2.12 per unit Issuer : Australian Unity Investment Real Estate Limited 271 Spring Street Melbourne VIC 3000 ABN 86 606 414 368 AFSL : 477434 Registry Enquiries : Australian Unity Office Fund Investor Services 1300 737 760 or +61 2 9290 9600 ( outside Australia )