Lendlease Annual Report 2022

Renewal 23 Strong demand for global real estate The top 100 global investors control approximately $1.5t in real estate assets. We have relationships with a large number of them. We expect capital flows to remain strong, with real estate allocations controlled by the world’s largest investors likely to rise. They are looking for managers with the ability to generate long term value. We offer investment partners high quality investment portfolios and access to our significant global development pipeline. Our focus on safety and creating innovative and sustainable product is also a key differentiator. Our deep relationships strengthen our capacity to tailor new products to meet their appetite. There is a significant opportunity to attract US and European investors, which are currently underrepresented across our platform. Sustainability credentials a differentiator In the most recent Global Real Estate Sustainability Benchmark (2021) our Barangaroo office fund, Lendlease International Towers Sydney Trust, was the #1 ranked fund globally out of 1,520 funds. We also had four funds ranked in the global top ten. Optimising our portfolio Our investment portfolio is currently valued at $3.5b and includes our co-investment positions in Lendlease’s managed funds and our equity interests in our Retirement Living and Military Housing businesses. We continually assess optimisation and redeployment opportunities, demonstrated this year by two key initiatives. Top left: Chicago: The Cooper (Apartments for rent) Top right: Greater Tokyo: Artist's impression, seed asset for Lendlease Innovation Partnership. Key initiatives Redeploying capital – Retirement Living We reduced our investment in the Retirement Living Trust from 50 per cent to 25.1 per cent. The sale for approximately $500m, to an existing investment partner, allows us to redeploy this capital. Crystallising value – Military Housing For more than 20 years, we’ve been providing asset management services to military housing and lodging communities across the US. Through an existing relationship, an equity partner acquired a 28 per cent interest in the asset management income stream on a multiple of approximately 26 times net profit after tax.