Lendlease Annual Report 2024

Our Business 17 Build to rent (residential) Chicago joint venture project, The Reed at Southbank, reached completion in the first half of the financial year. Comprising 224 apartments for rent, as well as luxury condominiums, the building is the second residential tower at the precinct and the fifth build to rent asset completed in the US. Further offshore build to rent assets are already underway alongside capital partners, including Park & Sayer in the UK, which is located at the Elephant Park mixed-use project and expected to complete in early FY25. Additional buildings in Los Angeles and New York are expected to complete in FY26. Retail The Exchange TRX in Kuala Lumpur was completed in November 2023. Currently leased to 98 per cent, the asset is valued at approximately $1.5b. Following a successful opening and supported by strong operating metrics as the asset becomes established, our 60 per cent ownership stake is being marketed for sale and forms part of the Group’s asset recycling program, as referenced in the 'Our strategy' section on page 15 of this Report. Data centre and Life sciences In Japan, Phase 1 of our data centre project in Tokyo and a 24,000sqm life sciences asset in Yokohama were both completed. The projects have a combined end value of $0.7b. We see data centres as a key growth area across the Asia Pacific and will look to leverage our existing US$1b Data Centre Partnership. Our integrated capability is well placed to execute on the expected growth in this sector. $33.8b Assets under management Asset management Our asset management businesses have $33.8b under management across key asset classes. We manage $16.3b of residential assets, which includes US Military Housing and our apartments for rent in the UK. In the retail sector, our $12.6b portfolio comprises assets across the Asia Pacific, including the recently completed Exchange TRX in Kuala Lumpur, Singapore’s 313@somerset and a portfolio of retail assets in Australia. This year, we announced the sale of our remaining US Military Housing business, including the operating platform along with the associated management rights for asset, property, development and construction management, which includes $14.4b of assets under management. The sale, which is expected to complete in FY25, crystallises the value we have created in the portfolio and represents a further step towards simplifying the Group. In line with the strategy update announced in May 2024, it facilitates the release of capital and intended redeployment into the Australian business or select investment management opportunities. Our capabilities, including placemaking and the ongoing curation of the assets we manage for our capital partners, are complementary to our funds management expertise and derive an annuity-style income stream. Investments portfolio Our co-investment portfolio is valued at $3.6b and includes positions in our managed funds and a 25 per cent equity interest in Keyton (retirement living). The portfolio is diversified across a range of sectors, including workplace ($1.0b), residential ($0.6b), retail ($1.0b), retirement ($0.5b) and industrial ($0.3b). This is expected to reweight over time post the targeted divestment of the final 25 per cent interest in Keyton (retirement living) that will move into the Capital Release Unit in FY25. Optimisation of the portfolio and capital redeployment opportunities are continually being assessed. Leading sustainability targets and credentials Our commitment to leading industry transformation in decarbonisation is demonstrated in our Mission Zero targets - some of the most ambitious in the real estate sector. We have delivered some of the world's most sustainable real estate, which attracts capital partners and quality tenants, as well as contributing to investment performance and our competitive edge. Our projects and assets consistently achieve the highest sustainability ratings, and we maintain leading positions on ESG assessments and benchmarks, including WELL and GRESB. Our recent achievements are highlighted on page 36 of this Report. Strategic direction Investments segment operations are not impacted by the recently announced strategy update; however, a dedicated Investments segment Chief Executive Officer will replace the regional management model and will focus on the segment’s performance and be accountable for driving stronger alignment with securityholder outcomes. We’ll continue to expand our Investments platform to achieve greater scale while remaining focussed on our capital partners and prioritising profitable growth. There are eight international projects underway with key capital partners that are expected to add more than $6b in FUM over coming years, adding to an existing international platform of $19.3b of FUM and Australian platform of $28b. While the origination of develop-to-core investment product will be focussed on Australia, we'll continue to support capital partners to selectively develop investment product offshore via mandates where we have capability and where we see opportunity. Priorities for the segment include: • Focussing on performance, earnings and profitability • Strengthening existing, and adding new, capital partnerships • Expanding beyond traditional develop-to-core product offerings.

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