KSS Information Memorandum 2021

Revised 23 rd March, 2021

This Risk Schedule attempts to identify major risks that KSS must manage in its strategy and operations. The intent is to enable decisions for the business to determine the appropriate appetite and price for Kennards Self Storage risks. The Schedule does not replace sound day-to-day commercial decision making and acumen expectations of people in the organisations. Identified Risk Comments Mitigation/ Management Tested/Reviewed Who is responsible Property Risk • Individual Property Loss • THQ Loss Risk • Environmental Risk • Development Risk (Planning & Construction Risk) We are exposed to risk of loss of a property in whole (or part) due to natural disaster or fire exists. Insurance taken to manage the risk. Business Interruption Cover included. Our largest Asset (Waterloo) represents 7% of our EBITDA. A separate table of each property is attached. This illustrates the particular Risk issues and importance for each critical risk. Entire loss of THQ would impact operations and the centres significantly. Asbestos: Asbestos exists in some Kennards Self Storage locations. Underground contamination: Some properties have industrial use history. Other in-situ latent environmental risks may exist in properties . Kennards Self Storage undertakes property acquisition and development in our growth strategy. Risks particular to this area: - Planning – not achieving a satisfactory approval from council. - Construction – project cost over runs, time delays workmanship, and quality. - Construction – Builder goes broke mid-project. - Construction of occupied/ operating property – work around customer spaces risks damage to their goods. Risk mitigation practices and actions: - Typical fire safety and management practices and training are in place to minimise this risk, including scheduled testing by reputable contract or s. - Disaster Management Recovery Plan is documented for action, if needed. - Adequate insurance cover for building replacement and business interruption. Business Interruptions Insurance is on select properties where entire loss is more li ke ly . - See Asset Risk Schedule Risk mitigation practices and actions: - An assessment of this has been undertaken and Disaster Recovery Plan and business continuity is documented. - Insurance cover. - Production environment now opera tes out of data centre with redundancy implemented at new THQ. Managed MPLS Network implemented with Macquarie telecom. With more work loads operating out of the Cloud the risk i s diminishing progressively . - WFH capability established and implemented . - Telephony now cloud based. Risk mitigation practices and actions: - No current knowledge of friable asbestos in any location. - Asbestos has been identified and registered in on site Asbestos Registers as required. - Gradual replacem en t occurs when the material fails. (I.e. old asbestos roofs are replaced with new metal roofs). – Homebush, Flemington 2019 - Evidence of Friable asbestos can lead to closure of sections of buildings until it is resolved. - Acquisition Due Dilig en ce Risk mitigation practices and actions: - Acquisition Due Diligence - Progress payment of work. - Careful selection of builder to have financial capaci ty and people capability. - Insurance cover and careful work pla n - KSS is named as Princ iple on Builders I nsuranc e P olicy. - KSM Kennards Storage Management named as a subsidiary to KSS under the Building Co ntract Reviewed August 2019 Current Reviewed March 2020 In practice Revised Feb 2020 Unchanged September 2017 Unchanged September 2017 Ongoing Operations Board CEO/COO/CIO Management Development & Construction Manager Investment Risk Kennards Self Storage investment comes with risk of financial underperformance, these include: - Risk of overpaying for a property. - Risk of underperformance of the asset once operating. Occupancy growth could be slow and storage prices lower than forecast. - Latent environmental conditions of a property – particularly old industrial sites. - Risk of property value impairment in the future. - Development price escalation risk Risk Mitigation Practices: - Having a multi-site and multi- market por tfoli o. - Avoid acquisitions that are too big (i .e. don’t bet the farm). [The Board could es ta blish financial or percentage based thresholds on acquisition size]. - Careful Due Diligence. - Integration and satisfaction of assumptions in feasi bilit y and investment analysis. - Allowance for contingency. - Sound gearing ratio . - review and advice multiple levels Unchanged September 2017 Currently set at 5% Board Board/ Management Team Reputation Risk Mediums of Brand Risk: • Traditional Media (T.V./ Radio) Kennards Self Storage Brand is very important and valuable to the business. Risk of bad publicity from a customer experience exists. Most likely risk activities include: Mitigating Practices and Strategies: - Pu blic Liability Insurance. - Disaster Recovery Action Plan. - Media Relations Plan: Only person perm itt ed to speak to media is Reviewed 1 st Oct 2021. Level $200M limit to Fortitude Valley, QLD. All other properties $50M. Board Management CEO

Enterprise Risk Management Schedule

Summary of risks to Kennards Self Storage and relevant considerations

Risk Management Schedule

67