APN Property : Appendix 4E & FY17 Financial Report – 30 June 2017

APN Property Group Limited and its controlled entities ("APD") Appendix 4E - Financial Report for the year ended 30 June 2017 Results for announcement to the market

2017 $'000	2016 $'000	%
Revenues from ordinary activities	24,972	19,881	26%
Profit from ordinary activities after tax attributable to members	10,633	7,286	46%
Profit / (Loss) from discontinued operations after tax attributable to members	58	42,384	(100%)
Net profit for the period attributable to members	10,691	49,670	(78%)
Net tangible assets per share	35.1 cents	43.1 cents

Dividends

2017	2016
Interim (cents per share); 100% franked amount	1.25	1.25
Final (cents per share); 100% franked amount	0.75	0.50
Special (cents per share); 100% franked amount	−	10.00
Total (cents per share)	2.00	11.75

Record date for determining entitlement	11 September 2017
Payment date	28 September 2017

The further information required by the listing rules is included in the accompanying Financial Report.

Refer to the Directors' Report for an explanation of the operational and financial results of the Group.

Chantal Churchill Company Secretary

24 August 2017

APN Property Group Limited ABN 30 109 846 068 Annual report for the financial year ended 30 June 2017 Directors' report

The directors of APN Property Group Limited ('APN' or 'the Company) are pleased to present their report of the APN Property Group (APN Group or the Group) for the financial year ended 30 June 2017.

Information about the Directors

Directors of APN Property Group Limited at the date of this Report

Chris Aylward Non-Executive Chairman

• A Director since 1996 (transitioned to Non-Executive Chairman 1 January 2017).

  Chris commenced his career in real estate in 1972. He has significant experience in the management, marketing, construction and development of residential and commercial real estate.

  Prior to his current role, Chris was a principal of Richard Ellis, now CBRE, and responsible for City Sales and Leasing. He joined the Grollo Group as Development Manager and personal assistant to Bruno Grollo, in 1984. In 1987 he became a founding director in Grocon Pty Ltd and a substantial shareholder retiring in 1994 and from the board in 1996. He founded Kooyong Wines and APN PG in 1996 and maintains an interest in the wine industry. He has been Chairman of APN PG since inception and remains its largest shareholder.

  Clive Appleton BEc, MBA, AMP (Harvard), GradDip (Mktg), FAICD Independent Director

• A Director since 2004.

  Clive joined APN PG as managing director in April 2004 following a successful career in property and funds management, having worked for Australia's leading retail property investment, management and development groups. Clive was instrumental in floating APN PG in 2005 and was responsible for managing APN PG's Private Funds division for five years. In 2013 he became a non-executive director and an independent director in 2016.

  Prior to joining the group, Clive was the Managing Director of the Gandel Group (1997-2004), which included the iconic Chadstone Shopping Centre, where he was involved in the development of $1 billion worth of property as well as the acquisition and redevelopment of the Myer Brisbane Centre. Between 1990 and 1997 Clive was managing director of Centro Properties Limited (later Federation Centres).

  Clive is a Non-Executive Director of Gandel Group (since 1997 and Deputy Chairman since July 2017), Aspen Group (since 2012 and Chairman since 2016), Arrow International (since 2012) and Perth Airports Corporation (since 2014). He is also a Council Member of Cairnmillar Institute.

  Howard Brenchley BEc Non-Executive Director

• A Director since 1998.

  Howard has a long history in the Australian property investment industry with over 30 years' experience analysing and investing in the sector.

  Howard joined the APN Group in 1998 and was responsible for establishing the APN Funds Management Limited (APN FM) business. In this capacity he developed a suite of new property securities and direct property funds, including the flagship APN AREIT Fund and the APN Property for Income Fund, both market leading property securities funds in Australia.

  Prior to joining the APN Group, Howard was co-founder and research director of Property Investment Research Pty Limited, one of Australia's leading independent research companies, specialising in the property fund sector.

  Howard is also a director of APN FM (since 1998), National Storage Holdings Limited (since 2014) and National Storage Financial Services Limited (since 2015), both listed as National Storage REIT (ASX Code: NSR).

  Timothy Slattery BSc, LLB, MBA (London Business School) Executive Director, Chief Executive Officer (appointed 1 January 2017)

• A Director since 2014

  Tim has over 14 years' experience across real estate, funds management, investment banking and law. Tim has been with APN PG for over 8 years in roles across investment management, operations, transactions and leadership.

  Over Tim's career, he has practised law at Herbert Smith Freehills as a qualified corporate lawyer and worked in corporate finance advisory within Goldman Sachs' investment banking division.

  Tim has worked on mergers, acquisitions and financing transactions of several billion dollars within Australia and internationally including a number of significant commercial real estate transactions.

  He has led both private and public capital raising projects for real estate investments and successfully completed asset acquisitions, sales and asset management projects across a range of different real estate asset classes.

  Anthony (Tony) Young FCA, ASIA, AAIB(Snr) Independent Director

• A Director since December 2015.

  Tony is a professional investor with a significant investment in APN PG as well as a number of other real estate investments.

  Tony is also a director of Morningstar Australia, a leading global provider of independent fund management and equity investment research; the co-owner of Timebase Pty Limited, an Australian online law library/legal database and other services provider; and co-founder of Aspect Huntley (Australia's leading internet equity research company and publisher of Huntleys Your Money Weekly and IFA) which was sold to Morningstar in 2006.

  Tony qualified as a Chartered Accountant in 1980 with PricewaterhouseCoopers. In the 1980s he qualified as a member of Securities Institute of Australia and the Australian Institute of Bankers. His early career as an analyst included time at Westpac, Macquarie Bank, James Capel Australia (Head of Equity Capital Markets), First Pacific Stockbrokers (founding shareholder/director) and Credit Suisse First Boston (Head of Research).

  He is director of a number of private companies involved in investment and research industries and is also an active counsellor with Lifeline Australia.

  Company Secretary Chantal Churchill (appointed 1 December 2016) BSc(Psych), GradDipHRM

  Chantal is responsible for overseeing the corporate governance and compliance framework at APN.

  Chantal has over 15 years' experience in governance, compliance and risk across the financial services industry.

  Prior to joining APN in 2015, Chantal held compliance and risk roles at Arena Investment Management, Tabcorp and Invesco Australia.

  John Freemantle (resigned 30 November 2016) B.Bus, CPA

• Company Secretary since 2007 to 30 November 2016

John has been involved in the property industry since 1977. Before joining APN in 2006, he worked with Dillingham Constructions, Jennings Property Group and Federation Centres (formerly Centro Property Group), where he held the roles of Chief Financial Officer and Company Secretary for 17 years.