Generation Healthcare REIT : Revised Distribution Reinvestment Plan

9579960b-a3a3-4f30-a220-0cd66bb9ebb2.pdf

1 June 2016

The Manager

Company Announcements Office Australian Stock Exchange Limited Level 4, Exchange Centre

20 Bridge Street

Sydney NSW 2000

Revised Distribution Reinvestment Plan Rules

APN Funds Management Limited, the responsible entity of Generation Healthcare REIT (GHC or the Fund) has completed a review of the rules of the GHC Distribution Reinvestment Plan (DRP) and undertaken minor revisions to better reflect current industry practices. These can be summarised as follows:

• Price Setting period has been reduced from 14 trading days to 10 trading days;

• Replacement of rounding up of entitlement to rounding down with carry forward balance, if any, applied to next DRP;

• If investor opts out of Plan (for any reason), any carry over balance held in name of that investor gets donated to charity; and

• Amendments to better articulate Registry processes for administering DRP.

There is no requirement for DRP participants to do anything as a result of these revisions. No changes have been made to existing participation elections.

A copy of the revised DRP rules is appended. Yours sincerely

John Freemantle Company Secretary

For further information, please contact: Investor Relations

T: +61 1800 996 456

About Generation Healthcare REIT Generation Healthcare REIT (ASX code: GHC), is Australia's only ASX listed healthcare real estate investment entity.

The Fund owns 17 properties including hospitals, medical centres, laboratories, residential aged care facilities and other purpose-built healthcare facilities. The Fund partners with high quality healthcare tenants with strongly diversified income streams. The Fund has total assets of approximately $439 million with investments located in Victoria, New South Wales and Queensland.

generationreit.com.au

About APN Funds Management Limited

APN Funds Management Limited (APNFM) is the Responsible Entity of Generation Healthcare REIT. The Board of APNFM consists of four directors, three of which, including the Chairman are Independent Directors. APNFM is a wholly owned subsidiary of APN Property Group Limited (APN) (ASX code: APD), a specialist real estate investment manager.

Since 1996, APN has been actively investing in, developing and managing real estate and real estate securities on behalf of institutions, superannuation funds, high net worth and individual investors. APN's focus is on delivering superior investment performance and outstanding service. Performance is underpinned by a highly disciplined investment approach and a deep understanding of commercial real estate.

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GENERATION HEALTHCARE REIT

DISTRIBUTION REINVESTMENT PLAN

Benefits of participating in the Distribution Reinvestment Plan (DRP) include:

³ Participating unitholders may reinvest distributions to acquire units without paying brokerage, commission or other transaction costs that would otherwise be associated with an investment in further units.

³ Participating unitholders may receive a discount on units acquired under the DRP (if and to the extent determined by the Responsible Entity in relation to each distribution to which the DRP applies).

GENERATION HEALTHCARE REIT DISTRIBUTION REINVESTMENT PLAN

Set out within are frequently asked questions in relation to how the DRP operates. These questions and answers constitute the terms and conditions of the DRP.

A DRP provides unitholders with the option of automatically reinvesting part or all of their distributions as additional units in the Fund.

1. HOW DO I PARTICIPATE IN THE DRP?

   If you wish to participate in the DRP you are required to either:

   ³ complete the DRP Instruction Form and forward it to:

   Link Market Services Limited Locked Bag A14

   Sydney South NSW 1235

   ³ or, if your holding has a market value of less than $50,000, you can complete the DRP Instruction Form electronically by logging into your holding on the Link Market Services Investor Centre website: www. linkmarketservices.com.au

   DRP Instruction Forms are available:

   ³ on the Fund's website: http://www.generationreit.com.au/

   ³ by logging into your holding on the Link Market Services Investor Centre website: www.linkmarketservices.com.au

   ³ by telephoning the Registry on +61 1300 554 474.

   Separate DRP Instruction Forms are required for each registered holding.

2. WHEN CAN I PARTICIPATE?

   While the DRP is open, you can participate in it at any time. The DRP Instruction Form, or relevant election notice, must be received by Link Market Services Limited (the Registry) no later than 5.00 pm Australian Eastern Time on the Business Day after each half year distribution period's record date in order to participate in the DRP for that distribution. The Record Date for each distribution payable by the Responsible Entity will be announced to the ASX in advance.

3. HOW LONG DOES PARTICIPATION IN THE DRP LAST?

   Participation in the DRP will automatically continue until you either notify the Registry that you no longer wish to participate by submitting a DRP Instruction Form, or the DRP is suspended or withdrawn by the Responsible Entity.

   If the DRP is suspended, an election as to your participation in the DRP will also be suspended and all units are taken not to be DRP units for the purpose of any distribution paid while the DRP is suspended. Upon reinstatement of the DRP, all of your prior elections are reinstated unless a DRP Instruction Form or relevant election notice is validly submitted by the unitholder by 5.00 pm Australian Eastern Time on the Business Day after the next Record Date for the next distribution which follows the reinstatement of the DRP.

   Your right to participate in the DRP is not transferrable.

4. CAN I REINVEST ONLY PART OF MY DISTRIBUTION IN THE DRP?

Yes. You can reinvest all or part of your distribution. If you choose to reinvest all of your distribution, the DRP will apply to all amounts distributed by the Responsible Entity on all of the units registered in your name, including any further units issued or transferred to you under the DRP. If you choose to reinvest only part of

your distribution, you can specify the number of units you wish to be subject to the DRP on the DRP Instruction Form.

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