Before the lights go out

Research evidence excerpt

Before the lights go out

UpdateMThe most recent cases of this have resulted in a material uplift in base rent;

• Would be happy to divest - The new CEO said he was happy to trim the tail -

there are assets in the portfolio making NOIs not dissimilar to 10yrs ago. Why is

this a good time to monetise these assets? We see the demand for supermarket

malls as strong, what may have sold for 7.5%+ yield a few years ago could

command <6% today;

• No intention of doing co-mingled funds etc - RGN may do select partnerships,

and will continue to grow its relationship with GIC across the Metro Funds series,

but it does not see itself as a fund manager like other REITs;

• It is actively managing its interest expense - The company recently bought back a

package of US Private Placements (USPP), using a bridge facility. It will soon term

it out to Medium-Term Notes (MTN). The USPP has a margin of 180-280bps, which

is somewhat above the market rate for margins at present. This could provide a

small uplift to FY27 earnings.

• Recent research: Australia Property: The Adjustment Cycle (20 Apr 2026)

Centuria Capital Group

• World Square office fund: Capital raising target is c.A$270m for the World Square

Office fund (proportional asset value c.A$450m). The progress is mixed, with the

institutional side of things going well (multiple offshore investors - including new

ones onto the CNI platform), but direct investors (those who invest through the

Product Disclosure Statement /Information Memorandum) are slower to register

interest. This will be one of CNI's biggest ever acquisitions, according to the

company;

• Earnings outlook: The recognition of profits for World Square establishment is

somewhat fluid - we think it could spread out over FY26 and FY27. While