SANNUAL

DIELEVIERINGNAVALDE

THIS YEAR UNITHOLDER RETURNS EXCEEDED EXPECTATIONS AND THE SIZE, QUALITY, AND GEOGRAPHIC DIVERSIFICATION OF THE PORTFOLIO WERE GREATLY ENHANCED

THELERISTICONTINUES TO PROVIDE UNITHOLDERS WITH A SECURE INCOME STREAM AND CAPITAL GROWTH FROM ITS PARTICIPATION IN THE EXPANSION OF THE EUNNINGS WAREKOUSE CHAIN.

WE ARE COMMITTED TO BUILD ON THE SOLID FOUNDATION THAT IS NOW IN PLACE AND TO CONTINUE TO DELIVER STEONG PEHRONVANGE AS THE BUNNINGS WARE TOUSE FOLLOUT PROGRAMME MAINTAINS TIS MOMENTUM

48 PROPERTIES OWNED, AND STILL ACQUIRING

Careful attention to site selection and store development are key elements of a formula that continues to be successful in the retail hardware market.

In 2003 the Trust continued its long term strategy of acquiring quality properties suitable for a Bunnings Warehouse.

At year end, the Trust owned 42 established Burnings Warehouse properties, had two Bunnings Warehouse stores and a new distribution centre for Bunnings under construction, and owned three sites upon. which a Bunnings Warehouse is likely to be developed in the future.

CONGRESS

	Millingening
r mancíal partermanca Highlights
	i.
Objectives and strategies	in an
Choirman's letter	Ą
Monoger's report	ŀ
	ķ
Property portfolio	į,
Corporate governance
Directors and	l.
iBniar management
Investor information	Ì
Financial statements	Í
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Directory	$\mathbf{e}^{\mathbf{z}}$

Bunnings Warehouse Property Trust
443N 035 851 097 REPORT AND THE REAL PROPERTY

Burnings Property Management Lini
ABN 26782-851-421

FINANCIAL PERFORMANCE

PROFIT

TOTAL ASSETS

Year ended 30 June			2003	2002	2001	2000	1999
Total income		\$m	35.9	29.0	23.1	18.6	11.5
Operating profit		\$m	26.3	21.1	16.5	13.9	9.5
Distribution per unit	interim		Ø.
	- ordinary unit	cents	6(5)	4.80	4.50	4.70	2.50
	- placement unit	cents		2.35
	- rights issue unit	cents	ŵ.	1.20
	final
	- ordinary unit	cents	5.35	4.97	4.68	4.86	4.70
	- rights issue unit	cents	September		٠	2.75
	total ²	cents	10.50	9.77	9.18	9.56	7.20
Tax advantaged component		%	30.15	34.68	40.86	54.73	54.71
Total assets		\$m	471.6	348.7	288.0	244.1	186.1
Borrowings		\$m	149.3	80.7	92.7	63.1	50.8
Unitholders' equity		\$m	3026	255.1	185.9	173.2	128.9
Gearing (debt to total assets)		%	8117	23.1	32.2	25.9	27.3
Number of units on issue		$\mathbb{E}$	266	232	182	177	132
Number of unitholders			10,496	9,988	9,292	9,070	9,478
Net tangible asset backing per unit		\$	$*14$	1.10	1.02	0.98	0.98
Unit price at 30 June		\$	151	1.28	1.15	0.98	1.12
Management expense ratio (annualised)		$\%$	071	0.76	0.79	0.37	0.38

'represents approximately 9.5 months trading activity. ²full year distribution per ordinary unit.

HIGHLIGHTS

DISTRIBUTION

SIX PURCHASED SIX NEW DEVELOPMENT SITES AND DEVELOPED TWO BUNNINGS WAREHOUSE STORES

FOUR PURCHASED FOUR

EX HARDWAREHOUSE PROPERTIES FROM WESFARMERS

FULL YEAR DISTRIBUTION INCREASED FROM 9 77 CENTS TO 10.50 CENTS PER UNIT

FIRST

THE FIRST PURCHASE OF AN ESTABLISHED BUNNINGS WAREHOUSE FROM A PARTY NOT RELATED TO WESFARMERS

VALUATION OF SIX PROPERTIES INDEPENDENTLY REVALUED DURING THE YEAR

OBJECTIVES AND STRATEGIES

The Trust is focused on warehouse retailing properties and, in particular, Bunnings Warehouse properties tenanted by Bunnings Building Supplies Pty Ltd, a wholly owned subsidiary of Wesfarmers Limited.

The responsible entity has established the following objectives and strategies for the Trust:

OBJECTIVES

to provide unitholders with a secure, growing income stream and capital growth
to protect unitholders' interests
to add quality properties to the portfolio
to distribute all net income each financial year

STRATEGIES

· acquiring properties with long term leases to substantial tenants
ensuring that properties are well located and the portfolio is geographically diversified
maintaining a prudent interest rate hedging position
operating within an appropriate compliance plan

THE TENANT

BUNNINGS BUILDING SUPPLIES IS A HARDWARE RETAILING BUSINESS THAT OPERATES A TOTAL OF 116 BUNNINGS WAREHOUSE STORES ACROSS AUSTRALIA AND NEW ZEALAND.

BUNNINGS IS ONE OF AUSTRALIA'S LEADING RETAILERS OF HOME AND GARDEN IMPROVEMENT PRODUCTS AND BUILDING MATERIALS.

FOR THE YEAR ENDED 30 JUNE 2003 BUNNINGS ACHIEVED:

OPERATING REVENUE OF \$3.5 BILLION (UP 13%)
EARNINGS (BEFORE GOODWILL AMORTISATION) OF \$349 MILLION (UP 17%)

THE SITES

· VISIBLE AND ACCESSIBLE FROM A MAJOR ARTERIAL ROAD, HIGHWAY OR FREEWAY
· READY VEHICLE ACCESS AND AMPLE CUSTOMER PARKING
· SIGNIFICANT CATCHMENT AREA
AVERAGE SIZE THREE HECTARES

THE STORES

STANDARDISED DESIGN FORMAT
COMPETITIVE CONSTRUCTION COSTS
AVERAGE SIZE 7,500 SQUARE METRES

mmmm

LETTER FROM THE CHAIRMAN

Dear Unitholder,

On behalf of the board, I am pleased to present the 2003 Annual Report of the Bunnings Warehouse Property Trust.

In the past year, growth in the size of the Trust's portfolio and earnings was significant. Also, a number of Trust properties that have been held for several years showed a considerable increase in market value.

The Trust's portfolio of properties grew from 37 last year to 48 at 30 June 2003 in a year marked by the acquisition of development sites, the construction of Bunnings Warehouse stores, and the acquisition of a number of established Bunnings Warehouse properties. The acquisitions, which are all considered likely to result in income growth and capital appreciation over time, have enhanced the geographic diversification of

the Trust's portfolio and increased the average lease expiry of the portfolio.

During the year a further six properties in the Trust's portfolio were revalued by independent valuers, which resulted in an average increase in market valuation of those properties of 11.3 per cent. The revaluations contributed to an increase in the net tangible asset backing per unit, which at 30 June 2003. was \$1.14 per unit (last year \$1.10 per unit).

In my introduction to last year's report, I referred to the likelihood that Wesfarmers Limited would offer, for purchase by the Trust, some properties that it owned through the purchase in 2001 of Howard Smith Limited, owner of the BBC hardware chain. I am pleased to advise that during the year, four of those properties were offered to, and subsequently purchased by, the Trust for \$53.2 million.

The acquisition of those properties, three of which are located in the metropolitan areas of New South Wales and one in regional Queensland, was overwhelmingly supported at a meeting of unitholders in December 2002. It is likely that more of the properties formerly owned by Howard Smith Limited may be offered by Wesfarmers Limited for purchase by the Trust.

Also pleasing was the acquisition by the Trust of an established Bunnings Warehouse property at Fyshwick, in the Australian Capital Territory. This was the first purchase by the Trust of an established Bunnings Warehouse property from a party not related to Wesfarmers Limited. The Trust is actively seeking further such acquisitions.

The origoing rollout of the Bunnings hardware business is expected to provide the Trust with livestment opportunities, as it is likely

ET LIGHT

The Bunnings Warehouse rollout is expected to continue at a rate of 8 to 12 stores per annum

that 8 to 12 Bunnings Warehouse stores per annum will be opened in the foreseeable future. The rollout is likely to include the opening of stores in New Zealand, where two Bunnings Warehouse stores are currently under construction. The Trust will consider the purchase of properties in New Zealand, and any proposals received will be assessed on the Trust's investment criteria. Unitholders will be kept informed of developments as they unfold.

Market rent reviews are scheduled to be completed on 20 Trust properties in 2003/04. Eleven of the properties scheduled for review are located in Victoria, where there have been significant upward property revaluations over the last two years.

Further details of the Trust's performance and comments on prospects are described in more detail in the Manager's Report

which follows, and I encourage you to read that report.

The board records its appreciation of the contribution made by management throughout the year.

Thank you for your continued support of the Bunnings Warehouse Property Trust. I look forward to reporting favourably again to you next year.

Yours sincerely

W H CAIRNS CHAIRMAN Bunnings Property Management Limited

MANAGER'S REPORT

Revenue of \$35.9 million was up 24 per cent from

The performance of the Trust during the year ended 30 June 2003 exceeded expectations noted in a forecast released in conjunction with the capital raising in November 2002. and there are indications of continued growth in 2003/04.

Financial results

The Trust reported an operating profit of \$26.3 million for the year, which represents an increase of 25 per cent on the profit of \$21.1 million earned last year.

This profit was earned on revenue of \$35.9 million, up by 24 per cent from \$29.0 million. last year due to additional income received from new properties, together with programmed rental escalations. Total assets of the Trust at year end were \$471.6 million, up by \$122.8 million on last year.

Final distribution

A final distribution of 5.35 cents per unit has been declared. The final distribution will be made on 5 September 2003 to unitholders on the Trust's register as at 5pm on 30 June 2003. This lifts the total distribution for the 2002/03 year to 10.50 cents per unit, which exceeds both the full year forecast of 10.26 cents per unit released in conjunction with the capital raising in November 2002, and last year's distribution of 9.77 cents per unit.

The growth in the distribution per unit over the previous financial year is 7.5 per cent, and the tax advantaged component for the 2002/03 distribution is 30.15 per cent.

Market performance

During the financial year, units in the Trust traded within a range of \$1.27 to \$1.70. Based on the closing price as at 30 June 2003 of \$1.51, the Trust had a market capitalisation of \$401.7 million.

In the 2002/03 financial year, the Trust provided a total return of 26.7 per cent, which exceeded the ASX 200 Property Trust Accumulation Index by 14.5 per cent. The Trust, which has provided an average total return of 25.0 per cent per annum over the last three years, continues to perform favourably in comparison to other listed property trusts.

Revaluations

Six properties in the Trust's portfolio were revalued during the year. These properties (three in Western Australia, two in Queensland and one in South Australia) were acquired by the Trust prior to July 2000.

The valuations of these properties by independent valuers resulted in an average increase in market valuation since acquisition of 11.3 per cent. Allowing for acquisition costs, the market valuation of the six properties exceeded book value by 7.4 per cent. A summary of the revaluations is tabled on page 11.

As a result of the revaluations, the book values of the relevant properties rose by \$3.5 million to \$50.5 million, which contributed to an increase in the underlying net tangible asset backing of the Trust's units from \$1.10 per unit at 30 June 2002 to \$1.14 per unit at 30 June 2003.

Four properties are scheduled to be revalued in 2003/04, and rental reviews to market on 20 properties are scheduled.

Gearing

The responsible entity has established a preferred range of 20 to 40 per cent for the Trust's gearing ratio (debt to total assets). The quality of the Trust's lease covenants and the lease expiry profile support this

gearing range and allow the effective use of debt funding. At 30 June 2003, the Trust's gearing was 31.7 per cent, which is within the Trust's preferred range and is consistent with the gearing level of the majority of listed property trusts.

Interest rate management

The Trust has a policy of hedging the majority of its borrowings against interest rate movements to ensure stability of distributions.

The responsible entity continues to actively manage the Trust's exposure to interest rates and took additional cover during the year to meet its debt related commitments.

At 30 June 2003, 86 per cent of the Trust's interest bearing debt was hedged at a weighted average rate excluding margins of 5.68 per cent.

Funding

The Trust debt facility with the National Australia Bank was increased from \$125 million to \$175 million during the year.

The responsible entity continues to consider the best options for funding future acquisitions.

Capital raising

During the year, the Trust issued 26.1 million units through an underwritten placement at an issue price of \$1.29 per unit.

The placement resulted in the new admission of a number of institutions to the unit register.

The \$33.7 million raised was applied initially to reduce debt and subsequently to partly fund a number of property acquisitions. and developments.

Property acquisitions and developments

During the financial year, the Trust acquired eleven properties and the portfolio at year end comprised 48 properties.

The Trust acquired development sites at Hervey Bay, Rocklea and Hernmant, in Queensland, as well as Bayswater and Vermont South in Victoria, and at Port Macquarie in New South Wales.

A Bunnings Warehouse store was developed by the Trust on the site at Hervey Bay, as well as on a site at Dandenong, Victoria, which was purchased in April 2002.

Five established Bunnings Warehouse

properties were acquired during the year. Four of those properties at Artarmon, Belrose and Wollongong in New South Wales and at Caims in Queensland, were acquired from a subsidiary of Wesfarmers Limited. Acquisition of those properties was supported overwhelmingly at a meeting of unitholders in December 2002. The Trust also acquired an established Bunnings Warehouse property at Fyshwick, in the Australian Capital Territory, from a party not related to Wesfarmers Limited.

The Trust has committed to development of Bunnings Warehouses on the Rocklea and Port Macquarie sites, and those developments are scheduled to be completed by November 2003 and December 2003 respectively. The Trust has also committed to the development of a distribution centre for Bunnings Building

Supplies Pty Ltd on the site at Hernmant. and that development is scheduled to be completed by November 2003.

Acquisitions made during the year have enhanced the geographic diversification of the Trust's portfolio, which at year end had an average lease expiry profile of 11.7 years. All property acquisitions and developments are considered to have potential for rental growth and capital appreciation. A summary of property acquisitions during the financial year and recent developments follows.

Hervey Bay, Queensland

In July 2002, the Trust acquired a 3.5 hectare property at Hervey Bay for a parchase price of \$2.8 million. The property is prominently located at the intersection of Boat Harbour Drive and Main Street.

The Trust completed the development of a Bunnings Warehouse with a total retail area of approximately 11,000 square metres on the site in December 2002 at a cost of \$6.4 million.

Bunnings Building Supplies Pty Ltd leases the property, on terms similar to those of other properties in the Trust's portfolio, at an annual rental of \$805,000 (Queensland land tax on the property must be paid from the rental).

The site has 0.4 hectares of land surplus to the requirements of the Trust. The surplus land will be sold in the near future with proceeds of \$0.7 million to the Trust. The Trust will continue to receive an access

fee from Bunnings Building Supplies Pty Ltd until such time as the surplus land is sold.

Rocklea. Queensland

In October 2002, the Trust acquired a 3.2 hectare property at Rocklea for a purchase price of \$6.2 million. The property is prominently located near the Granard Street off-ramp of the Ipswich motorway, approximately 14 kilometres east of the Brisbane central business district.

A Bunnings Warehouse with a total retail area of approximately 12,500 square metres is scheduled to be constructed on the site by November 2003 at a cost to the Trust of \$7.5 million.

Bunnings Building Supplies Pty Ltd will lease the completed development for an annual rental of \$1,195,000, net of Queensland land tax, on terms similar to those of other properties in the Trust's portfolio.

The Trust will continue to receive an access fee from Bunnings Building Supplies Pty Ltd until such time as the development of the Bunnings Warehouse is completed.

Port Macquarie, New South Wales

In November 2002, the Trust acquired a 2.0 hectare site at Port Macquarie for a purchase price of \$2.1 million. The property is prominently located on the corner of Lake Road and Fernhill Road, approximately 3.5 kilometres south of the main business district.

A Bunnings Warehouse with a total retail area of approximately 9,000 square metres is scheduled to be constructed on the site

by December 2003 at a cost to the Trust of \$5.4 million.

Bunnings Building Supplies Pty Ltd will lease the completed development for an annual rental of \$680,000, on terms similar to those of other properties in the Trust's portfolio.

The Trust will continue to receive an access fee from Bunnings Building Supplies Pty Ltd until such time as the development of the Bunnings Warehouse is completed.

Dandenong, Victoria

In April 2002, the Trust acquired a 2.7 hectare site at Dandenong for a purchase price of \$4.0 million. The property is prominently located on the corner of Princes Highway and Gladstone Road and is approximately 27 kilometres south-east of the Melbourne central business district.

In December 2002, the Trust completed the development of a Bunnings Warehouse with a total retail area of approximately 12,400 square metres on the site at a cost of \$6.7 million.

Bunnings Building Supplies Pty Ltd leases the property at an annual rental of \$960,000 on lease terms similar to those of other properties in the Trust's portfolio.

Fyshwick, Australian Capital Territory

In December 2002, the Trust acquired an established Bunnings Warehouse Property at Fyshwick, from G & G Constructions Pty Ltd. The property, which was developed in 1995, is located in the main industrial area

REVALUATIONS COMPLETED DURING 2002/03

PROPERTY	BOOK VALUE (PRICE PLUS COSTS) SOOD	CURRENT MARKET VALUATION S000	CHANGE $\%$	MAURRENT VALUATION YRIO
Albany WA	4.300	4.500	47	10.25%
Mindarie WA 1162	9,988	10.600	6.1	6.75%
Rockingham, WA	9.315	10.400	11.6	8.75%
Cannon Hill Distribution Centre, QLD	後罪 3.226	3500	$8.5^{\circ}$	9.00%
Morayfield OLD	8.322	8800	5/7	49.00%
Mile End, SA	11.667	12,700	700	6.50%
Total	474016	50.500	$A\mathsf{v}a = 7.4$
This is the vield applied by the valuer to estimated current market rental.

of Canberra, seven kilometres south-east of the city centre.

The property, which comprises a Bunnings Warehouse with a total retail area of approximately 6,400 square metres, was acquired at a price of \$10.0 million.

The property is leased to Bunnings Building Supplies Pty Ltd at an annual rental of \$900,000. With the exception of the ten year effective term, terms of the lease are similar to those of other properties in the Trust's portfolio.

Artarmon, New South Wales

In February 2003, the Trust acquired an established Bunnings Warehouse property at Artarmon from BBC Hardware Limited, a subsidiary of Wesfarmers Limited. The property, which was developed in 2000, is located in an established industrial area approximately six kilometres north of the Sydney central business district.

The property, which comprises a Bunnings Warehouse with a total retail area of approximately 5,900 square metres, was acquired at a price of \$14.0 million.

The property is leased to Bunnings Building Supplies Pty Ltd at an annual rental of \$1,168,000 on lease terms similar to those of other properties in the Trust's portfolio.

Beirose, New South Wales

In February 2003, the Trust acquired an established Bunnings Warehouse property at Belrose from BBC Hardware Limited. a subsidiary of Wesfarmers Limited.

The property is located in the Austlink Corporate Park, some 20 kilometres north of the Sydney central business district, and is readily accessible from Mona Vale Road, an arterial road which links the Pacific Highway with the coast.

The property, which comprises a Bunnings Warehouse with a total retail area of approximately 10,200 square metres, was acquired at a price of \$17.2 million.

The property is leased to Bunnings Building Supplies Pty Ltd at an annual rental of \$1,438,000 on lease terms similar to those of other properties in the Trust's portfolio.

Wollongong, New South Wales

In February 2003, the Trust acquired an established Bunnings Warehouse property at Wollongong from BBC Hardware Limited, a subsidiary of Wesfarmers Limited. The property, positioned between Gipps Street and Throsby Drive, is located in an established commercial area.

The property, which comprises a Bunnings Warehouse with a total retail area of approximately 12,600 square metres, was acquired at a price of \$12.0 million.

The property is leased to Bunnings Building Supplies Pty Ltd at an annual rental of \$1,020,000 on lease terms similar to those of other properties in the Trust's portfolio.

Cairns, Queensland

In February 2003 the Trust acquired an established Bunnings Warehouse property at Cairos from BBC Hardware Limited, a subsidiary of Wesfarmers Limited.

The property, bounded by Fearnley and Spence Streets and Plath Close, is located in an established industrial area some two kilometres south of the main business district.

The property, which comprises a Bunnings Warehouse with a total retail area of approximately 10,600 square metres, was acquired at a price of \$10.0 million.

The property is leased to Bunnings Building Supplies Pty Ltd at an annual rental of \$915,000 on lease terms similar to those of other properties in the Trust's portfolio-(Queensland land tax on the property must be paid from the rental).

Bayswater, Victoria

In February 2003, the Trust acquired a 4.9 hectare development site at Bayswater for a purchase price of \$7.3 million.

The property is prominently located on Canterbury Road, about 30 kilometres east of the Melbourne central business district.

It is likely that a Bunnings Warehouse store will be developed on the site in the near fulture, and the Trust will continue to receive an access fee until such time as a Bunnings Warehouse store is developed on the site.

Should for any reason a Bunnings Warehouse not be developed on the site, or should the Trust and Bunnings Building Supplies Pty Ltd not agree on terms for the development and subsequent lease of the

property, the Trust has the right to sell the site to Bunnings Building Supplies Pty Ltd and recover the total outlay.

Hemmant, Queensland

In May 2003, the Trust purchased a 3.5 hectare property at Hemmant for a purchase price of \$3.0 million. The property is well located in the Brisbane Port industrial precinct, approximately 12 kilometres east of the Brisbane central business district.

The Trust received an interest free loan from Bunnings Building Supplies Pty Ltd to fund the total outlay on the site acquisition.

An 18,000 square metre distribution centre, as well as 250 square metres of office space, is scheduled to be constructed on the site by November 2003 at a cost to the Trust of \$10.25 million.

Bunnings Building Supplies Pty Ltd will lease the completed development, on terms similar to those of other properties in the Trust's portfolio, at an annual rental of \$1,164,500 per annum (Queensland land tax on the property must be paid from the rental). With

the exception of the ten year effective term, all other lease terms are similar to those of other properties in the Trust's portfolio.

Vermont South, Victoria

In May 2003, the Trust acquired a 5.3 hectare development site at Vermont South for a purchase price of \$10.0 million.

The property is prominently located on the Burwood Highway, approximately 21 kilometres east of the Melbourne central business district. The Trust received an interest free loan from Bunnings Building Supplies Pty Ltd to fund the total outlay on the site acquisition.

It is likely that a Bunnings Warehouse will be developed on the site in the near future. Should for any reason a Bunnings Warehouse not be developed on the site, or should the Trust and Bunnings Building Supplies Ptv Ltd not agree on terms for the development and subsequent lease of the property, the Trust has the right to sell the site to Bunnings Building Supplies Pty Ltd and recover the total outlay.

Outlook

Current expectations are for continued growth in the 2003/04 financial year.

Significant growth opportunities for the Trust are expected from the ongoing rollout of the Bunnings Warehouse chain in Australia, and the proposed rollout of Bunnings Warehouse stores in New Zealand, Bunnings Building Supplies Pty Ltd operates 116 Bunnings Warehouse stores and plans to develop some 8 to 12 stores per annum. Bunnings Building Supplies Pty Ltd has also announced plans to open 3000 square metre stores at a rate of four per annum.

The Trust will consider any proposal made by Bunnings Building Supplies Pty Ltd in relation to new properties, and will continue to actively pursue the acquisition of established Bunnings Warehouse properties from Wesfarmers Limited and other parties.

Bunnings Building Supplies' operating revenue has continued to increase strongly through growth in sales from existing

and from new stores. For the 2002/03 financial year, operating revenue of \$3.5 billion was reported. Sales from Bunnings Warehouse stores are the major source of operating revenue.

Your directors are budgeting for continued growth in revenue and earnings in the 2003/04 financial year as a result of more properties being added to the Trust's portfolio, programmed rental escalation, and scheduled market rent reviews.

We look forward to your continued support of the Bunnings Warehouse Property Trust.

Ach Hopk

ANDREW HOPKINS MANAGER Bunnings Property Management Limited

PROPERTY PORTHOLID

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The access the of \$63,728 pe

CORPORATE GOVERNANCE

Set out below is a summary of the main corporate governance practices of the Trust. These practices were in effect during the whole of the financial year ending 30 June 2003 unless stated otherwise.

On 31 March 2003, the Australian Stock Exchange Corporate Governance Council released its Principles of Good Corporate Governance and Best Practice Recommendations (ASX Principles).

The ASX Principles, in conjunction with the ASX Listing Rules, require certain companies and trusts in the future to disclose in their annual reports the extent to which their corporate governance practices follow the ASX Principles.

The board of the responsible entity will be reviewing its corporate governance procedures during the next financial year in regard to the ASX Principles.

Compliance and risk control

As a registered managed investment scheme, the Trust has a compliance plan that has been lodged with the Australian Securities and Investments Commission (ASIC).

Operation of the Trust in accordance with the compliance plan is intended to protect the rights and interests of unitholders and to identify and manage business risks. Copies of the compliance plan are available through ASIC.

In particular, the compliance plan establishes processes relating to:

· identifying and reporting breaches or noncompliance with the Corporations Act, the compliance plan, the constitution of the Trust and the responsible entity's dealer's licence:
compliance with the ASX Listing Rules:
protecting Trust property;
· proper acquisitions and dispositions of Trust property;
· timely collection of Trust income;
regular valuation of Trust property;
. maintenance of financial and other records of the Trust to facilitate preparation of audited/reviewed financial reports:
· proper and timely distributions to unitholders;
compliance with the Trust's investment oblectives:
· managing investment risk;
· managing potential conflicts of interest among the various related parties of the Trust:
· holding and maintaining adequate insurance cover:
borrowing occurring only within permitted limits and ensuring that terms are complied with; and
handling of complaints relating to the Trust.

Ernst & Young, the external auditor of the compliance plan, has completed its annual audit for the year ended 30 June 2003.

No breaches of the plan were identified as a result of this audit.

In addition to the compliance plan, the responsible entity has in place a number of risk management controls which include the following:

· guidelines and limits for the approval of capital and operating expenditure;
policies and procedures for the management of financial risk, including exposure to financial instruments and movement in interests rates; and
an insurance and risk management programme.

As the majority of members of the board are external directors for the purposes of the Corporations Act, the board is not required to form a separate compliance committee in addition to the board of the responsible entity.

Selection and appointment of directors

The board is conscious of the need to ensure that the board consists of and maintains an appropriate balance of skills, expertise, qualifications and experience.

Directors are required continually to evaluate the number of boards on which they serve to ensure that each can be given the time and attention required to properly fulfil duties and responsibilities.

Given the small size of the board and the nature of the Trust's activities (namely, limited to the development and investment in warehouse retailing properties), the board does not consider it is currently necessary to establish a nomination committee to assist it in the procedures for selection and appointment of new directors.

Roles of the board and management

The respective roles and responsibilities of the board and management are set out in the compliance plan.

The role of the board of the responsible entity is to monitor whether the Trust is managed in a manner which protects and enhances the interests of its unitholders and takes into account the interests of employees, customers, suppliers, lenders and the wider community.

The board has overall responsibility for corporate governance, including setting strategic direction for the Trust, establishing goals for management and monitoring the achievement of these goals. This includes:

· adopting annual operating budgets for the Trust and the responsible entity and monitoring progress against budgets;
. monitoring and overseeing the financial position of the Trust and the responsible entity:
· evaluating the performance of the manader:
· determining that satisfactory arrangements are in place for auditing the financial affairs of the Trust and the responsible entity;
· determining that satisfactory policies and compliance systems are in place and that the responsible entity and its officers act legally, ethically and responsibly on all matters: and
· complying with the statutory duties and obligations as imposed by the Law.

The board has delegated responsibility for the day to day management of the Trust to the manager.

The separation of responsibilities between the board and management is clearly understood and respected.

Ethics and conduct

The responsible entity has adopted a basic code of conduct which sets out minimum acceptable standards of behaviour with the intention that dealings are conducted with integrity and honesty.

In addition, the board has adopted the principals outlined in the booklet "Corporate" Practices and Conduct - Third Edition" - a guide produced by a working group

comprising representatives of a number of Australian industry and professional organisations.

Independent professional advice

After prior approval of the Chairman, directors may obtain independent professional advice at the expense of the responsible entity on matters arising in the course of their board duties.

Audit

The compliance plan entrenches processes for reporting and audit.

The board formally constituted an audit committee in June 2003 and adopted a charter for the committee. Currently, the audit committee consists of the entire board and is chaired by Mr McCuaig, an independent director of the responsible entity. Mr Cairns is also an independent director. The composition of the audit committee satisfies transitional arrangements under the ASX Listing Rules. The ASX Listing Rules require that audit committees consist of a majority of independent directors by 1 July 2005.

Trading in units

Directors of the responsible entity may only buy or sell the Trust's units after reference to the secretary and in accordance with relevant statutory and regulatory restrictions.

Juned the board in 1998. Bill retired from the AMP Society in 1990. where he was employed for 30 years, At the time of his rethement, Bill held the position of General Manager AMP investments where he was responsible for managing the group's global investments. He'ls a member of the board of Avatar todustries Limited and a number of private companies, and recently retired as a director of General Property Trust Management Limited and Foodland Associated Limited: Bill is a Fellow of The Australian Property Institute and a Life-Fellow of the Property Council of Australia.

R W MCCUAIC, FRICS DIRECTOR, Age: 65

Joined the board in 1998. Robert is currently Chairman of the Advisory Board of Colliers International Property Consultants. He established its Sydney office as McCuaig & Collier in 1967. Robert has been Deputy Chairman of Sydney Convention and Visitors' Bureau since 1993, a member of the Salvation Army Advisory Board since 1996, a director of Multiplex Investments Pty Ltd, a director of St Vincents & Mater Health Sydney and Chairman. of its Property Committee.

P. J. MANSELL, B. Com, LLB, H. Dip Tax DIRECTOR, Age: 56

Joined the board in 1998. Peter has practised as a commercial lawyer for nearly 34 years and is currently the Head of Office of Freehills' Perth office. Over the years he has advised extensively on a number of wide-ranging corporate transactions. Peter is the Chairman of Hartleys Ltd, a director of West Australian Newspapers Holdings Ltd and a number of unlisted companies. He is the current President of the Council of the Australian Institute of Company. Directors, Western Australian Division, and sits on the national board. of the Australian Institute of Company Directors Ltd.

GT TILBROOK B SC, MBA DIRECTOR, Age: 52

Joined the board in 2001, Gene holds Bachelor of Science and Master of Business Administration degrees and a Diploma in Computing Science, from the University of Western Australia. He completed the Advanced Management Program at the Harvard University Business School in 1998. Gene joined Wesfarmers in 1985 and has held a number of commercial positions in the Business Development Department and at Westarmers Energy Gene is Executive Director. Business Development of Westamers, a director of a number of Westarmers group subsidiaries, as well as a director of Gresham. Partners Holdings Limited and Australian Railroad Group Pty Ltd.

A J HOPKINS, B.E., MBA MANAGER, Age: 39

Andrew has worked on the evaluation of a variety of commercial. opportunities for the Wesfarmers group of companies since 1994. Prior to joining the Westarmers group, Andrew worked in the building and construction industry in Australia and the United Kingdom. He is a director of the Clontari Football Academy.

INVESTOR INFORMATION

Stock exchange listing

The Bunnings Warehouse Property Trust is listed on the Australian Stock Exchange and reported in the "Industrial" section in daily newspapers - code BWP.

Distribution reinvestment plan

Unitholders may elect to reinvest all or part of their distribution entitlements in new units in the Trust if they choose to participate in the Distribution Reinvestment Plan.

New units are issued under this plan at a discount to the market price without brokerage or other costs. The directors have determined that the current discount of 2.5 per cent will remain for the final distribution payable in September 2003. representing an issue price of \$1,50.

Unitholders wishing to have their distributions reinvested in this manner should contact the unit registry for more details and to obtain an application form.

Electronic payment of distributions

Unitholders may nominate a bank, building society or credit union account for the payment of distributions by direct credit. Payments are electronically credited on the distribution date and confirmed by mailed payment advice.

Unitholders wishing to take advantage of payment by direct credit should contact the unit registry for more details and to obtain an application form.

Publications

The annual report is the main source of information for unitholders. In addition, unitholders are sent a half-year report in February each year providing a review, in summary, of the six months to December.

Periodically, the Trust may also send releases to the Australian Stock Exchange covering any matters of relevance to investors.

Website

The Bunnings Warehouse Property Trust has an internet site at www.bunningspropertytrust.com.au.

The site is an important source of information for unitholders, it includes details of the Trust's property portfolio. current activities and future prospects.

The site provides access to annual and half-yearly reports and also contains releases made to the Australian Stock Exchange covering matters of relevance to investors.

Annual tax statements

Accompanying the final distribution payment in August or September each year is an annual tax statement which details tax advantaged components of the year's distribution.

Profit distributions

Profit distributions are paid twice yearly, normally in February and August or September.

Unitholder meetings

Unitholder meetings are held from time to time at which unitholders have the opportunity to learn more about the Trust's activities and prospects. The last unitholder meeting was held in December 2002. Unitholders will be notified in advance details of future meetings.

Unitholder inquiries

Please contact the unit registry if you have any questions about your unitholding or distributions:

Computershare Investor Services Ptv Limited Level 2, Reserve Bank Building 45 St George's Terrace PERTH WA 6000 Tel: (08) 9323 2000 Fax: (08) 9323 2033

FINANCIAL STATEMENTS

CONSIN


Skinamonts of Reserve in
performance and distribution Statement of financial position	20
Statement of cash flows	21
Notes to and forming part of the financial statements	22
Directors' report	1
Dinactors' declaration	JP.
Indopendent oudit report	曬
Unitholder information	41
Directory	Ø4, 39 KG

Bearings Warstowne Property Trust 2003 Annual Report

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For the year ended 30 June 2003	Note	2003	2002 \$000
		\$000
STATEMENT OF FINANCIAL PERFORMANCE
Revenue and expenses from ordinary activities
Rental income		33,693	26,962
Other property income.		2,112	1.931
Interest income		130	156
		35,935	29,049
Responsible entity's fees		(2,359)	(1,926)
Auditors' remuneration Interest and borrowing costs		(27) (6, 679)	(37) (5, 278)
Rates and taxes		(260)	(205)
Other operating expenses		(270)	(519)
Net profit attributable to members of Bunnings Warehouse Property Trust		26,340	21,084
Increase in asset revaluation reserve	8.12	3,482	12,045
Total revenues, expenses and valuation adjustments attributable to unitholders
and recognised directly in unitholders' funds		3,482	12,045
Total changes in equity other than those resulting from transactions with
unitholders as unitholders		29,822	33,129

STATEMENT OF DISTRIBUTION
Net profit attributable to members of Bunnings Warehouse Property Trust,		26,340	21.084
Undistributed income at the beginning of the financial year		1	16
Total available for distribution		26,341	21,100
Distributions paid and payable		26,334	21,099
Undistributed income at the end of the financial year		7
Basic and diluted earnings per unit (cents per unit)		10.5	9.8
Distribution per unit held for the full year (cents per unit)		10.50	9.77.

The statement of financial performance and distribution should be read in conjunction with the accompanying notes.

Sunokup Worksouse Property Treet 2003 Annual Report

As at 30 June 2003	Note	2003	2002
		\$000	\$000

Current assets
Cash assets	6	4,783	255
Other		243	171
Total current assets		5,026	426
Non-current assets
Investment properties	8	466,539	348,291
Total non-current assets		466,539	348,291
Total assets		471,565	348,717
Current liabilities
Payables		5,412	1,372
Distribution payable		14,233	11,512
Total current liabilities		19,645	12,884
Non-current liabilities
Payables	18	13,726
Interest bearing liabilities	ü	135,552	80,702
Total non-current liabilities		149,278	80,702
Total liabilities		168,923	93,586
Net assets		302,642	255,131
Unitholders' funds
Contributed equity		279,282	235,259
Asset revaluation reserve	8,12	23,353	19,871
Undistributed income reserve	13	7
Total unitholders' funds		302,642	255,131

The statement of financial position should be read in conjunction with the accompanying notes.

Bunnings Warehouse Property Ymst 2003 Annual Report

For the year ended 30 June 2003	2003 Note	2002
	\$000	\$000

Cash flows from operating activities
Rent received	43,705
		31,939
Payments to creditors	(4,619)	(3,171)
Payments to the responsible entity	(2, 196)	(1,806)
Interest received	130	-156
Borrowing costs paid	(6, 838)	(4,961)
Net cash flows from operating activities	30,182 14	22,157
Cash flows from investing activities
Payments for purchase of, and additions to, the Trust's property investments	(114, 894)	(49, 446)
Net cash flows used in investing activities	(114, 894)	(49, 446)
Cash flows from financing activities
Proceeds from the issue of units	33,680	53,446
issue costs paid	(463)	(1,237)
Proceeds /(repayments) of interest bearing liabilities	55,100	(12, 200)
Distribution paid.	(12, 803)	(13,034)
Proceeds of non-interest bearing liabilities	13,726
Net cash flows from financing activities	89,240	26,975

Net increase/(decrease) in cash held	4,528	(314)
Cash held at the beginning of the financial year	255	569
Cash held at the end of the financial year	4,783	255

The statement of cash flows should be read in conjunction with the accompanying notes.

For the year ended 30 June 2003,

Summary of significant accounting policies ٦

The financial report is a general purpose financial report made out in accordance with the requirements of the Constitution of the Bunnings Warehouse Property Trust (the Trust) and the Corporations Act 2001, which includes applicable Accounting Standards and other mandatory professional reporting requirements (Urgent Issues Group Consensus Views). They have been prepared on the basis of the historical cost convention except for property investments which are carried at their fair value.

The significant policies which have been adopted in the preparation of these financial statements are:

(a) Changes in accounting policies

Accounting policies are consistent with the previous year unless otherwise stated.

The Trust has applied the new Accounting Standard AASB 1044 "Provisions, Contingent Liabilities and Contingent Assets" for the first time for the year ended 30 June 2003. .................................

The new Standard requires that a provision for distribution can only be recognised in the Statement of Financial Position if the distribution has been declared, determined or publicly recommended prior to the balance date. The Constitution of the Trust provides that its distributable profit is to be distributed to unitholders each half year. As a liability for distribution arises upon the derivation of profits by the Trust, a provision for distribution has been recognised at balance date.

The new Standard has had no effect on the current or previous financial statements;

(b) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured. Specific revenues are recognised as follows:

Rental and other property income

Rental and other property income is recognised as income when receivable under the terms of the rental agreement.

Interest income

Interest income is recognised as income when control of the right to receive the interest payment is attained;

(c) Expenditure

Expenditure, including the responsible entity's fees, are brought to account on an accrual basis;

(d) Property outgoings

Under all leases for the properties in the Trust's portfolio, all property outgoings (including rates and taxes, insurance, repairs and maintenance and land tax) are paid by Bunnings Building Supplies Pty Ltd except for land tax in relation to properties located in Queensland where legislation prohibits recovery of land tax from tenants;

$(e)$ Taxation

Under current Australian income tax legislation, the Trust is not liable for income tax provided that its taxable income (including any taxable capital gains) is fully distributed to unitholders each year.

Goods and Services Tax

Revenues, expenses and assets (with the exception of receivables) are recognised net of the amount of Goods and Services Tax (GST) to the extent that the GST is recoverable from the taxation authority. Where GST is not recoverable, it is recognised as part of the cost of acquisition, or as an expense. Receivables and payables are stated inclusive of GST. The net amount of GST recoverable from, or payable to the taxation authority is included in the Statement of Financial Position as a receivable or payable. إيجاد ووودونا

Cash flows are included in the Statement of Cash Flows on a gross basis. The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows;

Bungings Warehorse Progerty Trust 2003 Annual Report

For the year ended 30 June 2003

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Summary of significant accounting policies (continued)

(f) Contributed equity

Issued and paid up capital is recognised at the fair value of the consideration received by the company.

Any transaction costs arising on the issue of ordinary units are recognised directly in equity as a reduction of the unit proceeds received;

(g) Depreciation

The buildings and any component of them (including plant and equipment) included in property investments are in accordance with AASB 1021: Depreciation, not depreciated for accounting purposes. Taxation allowances for building, plant and equipment depreciation are declared as tax advantaged components of distributions;

(h) Interest bearing liabilities

Bank loans are carried at their principal amount less any unexpired discount for bank bills. These loans are generally borrowed for the short term under long term facilities. The loans are allocated between current and non-current based on the repayment period for the facilities. Interest, where applicable, is charged as an expense at short term commercial rates as it accrues, interest free loans repayable within one year are carried at face value;

Property outgoings ΪÜ.

Property investments (j)

Land and buildings are considered to have the function of an investment and are therefore regarded as a composite asset. Accounting Standards do not require investment properties to be depreciated. Accordingly, the buildings and components thereof (including plant and equipment) are not depreciated.

Independent valuations of property investments are obtained at intervals of not more than three years. Such valuations of property investments are reflected in the financial statements of the Trust. Notwithstanding this, the directors of the responsible entity assess the carrying value at each reporting period to ensure carrying values do not materially differ from fair values. Where carrying values differ from the fair value, those assets are adjusted to their fair value. In determining fair value, the expected net cash flows have been discounted to their present value using a market risk adjusted discount rate.

A revaluation increment is credited directly to the asset revaluation reserve, unless it reverses a previous revaluation decrement charged as an expense in determining operating profit in respect of that same class of asset, in which case the increment is credited to operating profit.

Expenditure capitalised to properties includes the cost of acquisition, capital and refurbishment additions, and during development includes rates, taxes, financing charges and related professional fees incurred, net of sundry income. Leasing fees incurred in relation to the on-going renewal of major tenancies are recognised as prepaid expenses and amortised over the lease period to which they relate.

Where assets have been revalued, the potential effect of the capital gains tax (CGT) on disposal has not been taken into account in the determination of the revalued carrying amount because the Trust does not expect to be ultimately liable for CGT in respect of assets;

$(k)$ - Rounding

In accordance with ASIC Class Order 98/0100, these reports have been rounded to the nearest thousand dollars;

(I) : Comparative figures

Certain reclassifications have been made to the prior year's accounts in order to enhance comparability with those of the current year;

(m) Earnings per unit

Basic earnings per unit (EPU) is calculated as net profit attributable to members, adjusted to exclude costs of servicing equity (other than distributions), divided by the weighted average number of units, adjusted for any bonus element. The diluted EPU is not materially different from the basic EPU;

For the year ended 30 June 2003

1 Summary of significant accounting policies (continued)

(n) Cash and cash equivalents

Cash on hand and in banks and short-term deposits are stated at nominal value.

For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks, and money market investments readily convertible to cash within two working days, net of outstanding bank overdrafts. We are allowed to the control of

Bank overdrafts are carried at the principal amount. Interest is charged as an expense as it accrues;

$(o)$ Leases

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreements so as to reflect the risks and benefits incidental to ownership.

Operating leases

The minimum rental revenues of operating leases, where the lessor effectively retains substantially all of the risks and benefits of ownership of the leased item, are recognised as revenue on a straight line basis, which is considered to best represent the pattern of service rendered through the provision of the leased asset.

$\overline{2}$ Responsible entity's fee

The responsible entity is entitled to a management fee payable quarterly in arrears of 0.55 per cent per annum of the gross asset value of the Trust. The responsible entity is also entitled to an additional fee calculated at the rate of 0.05 per cent per annum of the gross asset value of the Trust up to \$200 million and 0.035 per cent per annum of the amount by which the gross asset value of the Trust exceeds \$200 million. The additional fee would, as a minimum, be \$40,000 per annum.

Bussiness Worchouse Property Truck 2003 Annual Report

......................................

Beenings Warshouse Property Trust 2003 Annual Report
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For the year ended 30 June 2003	2003	2002



Auditors' remuneration 3
Auditing or review of the financial statements	24,025	23,000
Other services.	2,600	13,592

	26,625	36,592

	2003	2002
	\$000	\$000

4
Distributions paid and payable
5.15 cents (2002: 4.8 cents) per ordinary unit, interim distribution paid	12,101	8,810
2.35 cents per unit issued under the 2002 placement, interim distribution paid		472
1.2 cents per unit issued under the 2002 rights issue, interim distribution paid		305
5.35 cents (2002: 4.97 cents) per unit, final distribution provided	14,233	11,512
	26,334	21,099


Earnings per unit 5.
Net earnings used in calculating basic and diluted earnings per share	26,340	21,084
Basic and diluted earnings per unit	10.5 cents	9.8 cents
Weighted average number of ordinary units on issue used in the calculation of basic and diluted earnings per unit	249,793,986	216,222,652

Cash assets

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Jash at bank	4,783	.
Weighted average effective interest rates	4.2%

Other - current assets		.
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Investments	Acquisition	Valuation	Valuation	2003	Book value 2002
Property	date	date	\$000	\$000	\$000
Baicatta, WA	24.09.98	01.09.01	11,700	11,700	11,700
Joondalup, WA	24.09.98	31.05.01	8,300	8,300	8,300
Mandurah, WA	24.09.98	31.05.01	7,350	7,350	7,350
Bibra Lake, WA	29.12.98	01.02.02	8,650	8,650	$-8,650$
Albany, WA	01.11.99	04.11.02	4,500	4,500	4,300
Mindarie, WA	03.03.00	11.03.03	10,600	10,600	9,988.
Rockingham, WA	30.06.00	30.06.03	10,400	10,400	9,315
Midland, WA	06.03.01	31.12.00	9,800	9,784	9,784
Geraldton, WA	10.12.01	10.09.01	6,475	6,824	6,824
Sunshine, VIC	24.09.98	31.05.01	$-8,450$	8,450	8,450
Mentone, VIC	24.09.98	01.09.01	12,100	12,100	12,100
Altona, VIC	24.09.98	31.05.01	$-8,200$	8,200	8,200
Nunawading, VIC	24.09.98	31.05.01	14,800	16,395	14,800
Fountain Gate, VIC	24.09.98	31.05.01	10,500	10,500	10,500
Broadmeadows, VIC	24.09.98	01.09.01	8,450	8,450	8,450
Northland, VIC.	24.09.98	01.09.01	$-10,900$	10,900	10,900
Croydon, VIC	24.09.98	01.09.01	9,200	9,200	9,200
Sandown, VIC	24.09.98	31.05.01	9,400	9,400	9,400
Scoresby, VIC	24.09.98	01.09.01	10,200	10,200	10,200
Mornington, VIC	29.12.98	[01.02.02]	$-10,700$	10,700	10,700
Hoppers Crossing, VIC	11.01.99	01.02.02	8,800	8,800	$-8,800$
Epping, VIC	12.03.99	01.09.01	9,500	9,500	9,500
Frankston, VIC	26.06.01	05.09.01	16,700	16,994	16,994
Oakleigh South, VIC	05.04.01	05.09.01	17,500	17,413	17,413
Maribyrnong, VIC	28.06.01	26.04.01	5,800	7,562	$-7,554$
Dandenong, VIC	19.04.02	19.12.01	10,700	10,915	4,253
Bayswater, VIC	11.02.03	31.10.02	7,500	7,793
Vermont South, VIC	14.05.03	30.12.02	10,000	10,629
Tuggeranong, ACT. Fyshwick, ACT	01.12.98 23.12.02	31.05.01 24.09.02	8,600 10,000	8,600 10,692	8,600
Burleigh Heads, QLD	22.10.98	01.09.01	10,200	10,200	10,200
Underwood, QLD	22.10.98	31.05.01	9,400	9,400	9,400
Southport, QLD	09.11.98	01.09.01	10,200	10,200	10,200
Cannon Hill, QLD	24.12.98	31.05.01	9,400	9,400	9,400
Cannon Hill Distribution Centre, QLD	01.11.99	06.10.02	3,500	3,500	3,227
Morayfield, QLD	22.03.00	27.03.03	8,800	8,800	8,323
Hervey Bay, QLD	12.07.02	31.07.02	$-8,600$	9,351
Rocklea, QLD	23.10.02	28.04.03	13,650	6,516
Cairns, QLD	10.02.03	24.10.02	10,000	10,445
Hemmant, QLD	07.05.03	02.04.03	13,250	3,143
Minchinbury, NSW	31.12.98	01.09.01	10,000	10,000	10,000
Coffs Harbour, NSW	05.09.01	20.09.01	6,400	6,509	.6,509
Port Macquarie, NSW	15.11.02	22.05.02	7,550.	2,241

Samings Vistolouse Property Treet 2003 Annual Report

For the year ended 30 June 2003

Investment properties (continued)

									المستحقق والمستحقق والمستحدث والمستقل والمتحدث والمستحقق والمتحدث

									a galery with restriction will be computed being a filling.
															the company's the company's service

Investments (continued)					Book value
Acquisition		Valuation	Valuation	2003	2002
Property	date	date	\$000	\$000	\$000
Artarmon, NSW	$.10.02.03$ .	24.10.02	14.100	14,888
Beirose, NSW	10.02.03	24.10.02	16.900	18.187
Wollongong, NSW	10.02.03	28.10.02	1,600	12.618
Noarlunga, SA	13.04.99	01.02.02	6.940	6.940	6.940
Mile End, SA	22.03.00	01.04.03	12.700	12,700	11,867
			478.965	466,539	348,291

The difference between the book value and the valuation of properties is due to stamp duty and other acquisition costs capitalised since the latest valuation. It is assumed that property values will increase over the period to the next valuation to offset this difference.

Although the property at Maribyrnong was acquired by the Trust at above valuation, the total development cost is expected to be in line with the assessed market valuation of the completed development. The Trust has the right to sell the property to Bunnings Building Supplies Pty Ltd and recoup the total outlay costs should, for any reason, a Burnings Warehouse not be developed on the site.

Each of the properties at Rocklea, Hemmant and Port Macquarie were valued on an as-completed basis. Construction is in progress on each site, and all developments are scheduled for completion prior to December 2003.

The property valuation at Hervey Bay does not include the value of approximately 0.4 hectares of surplus land. The Trust will receive \$725,000 from the proceeds of sale of the surplus land.

(b) Cost of investments

			Capital
			improvements	Revaluation	Book value
	Purchase	Acquisition	since	increment/	30 June
	price	costs	acquisition	(decrement)	2003
Property	\$000	S000	\$000	\$000	\$000
Baicatta, WA	11,200	552		(52)	11,700
Joondalup, WA	$-8,100$	399		(199)	8,300
Mandurah, WA	3,050	155.	4.046	.99	-7,350
Bibra Lake, WA	1,899	-92	-6,350	309	8,650
Albany, WA	4,100	200		.200	-4,500
Mindarie, WA	-4,184	206	5,598	612	10.600
Rockingham, WA	3.320	165	5.830	1.085	10.400
Midiand, WA	4,600	254	4,930		9.784
Geraldton, WA	1,250	349.	$-5,225$		6.824
Sunshine, VIC	7,000	393		1,057	8,450
Mentone, VIC	9,400	525		2.175	-12.100
Altona, VIC	6,800	382		1.018	8,200
. Nunawading, VIC	13,700-	74		921. ا	16,395
Fountain Gate, VIC				735	10.500

For the year ended 30 June 2003

Investment properties (continued) $\overline{\mathbf{8}}$

(b) Cost of investments (continued)

			Capitai	Revaluation
	Purchase	Acquisition	improvements since	increment/	Book value 30 June
	price	costs	acquisition	(decrement)	2003
Property	\$000	\$000	\$000	\$000	\$000
Broadmeadows, VIC	7,200	404		846	8,450
Northland, VIC	8,600	481		1,819	10,900
Croydon, VIC	7,800	437		963	9,200
Sandown, VIC	7,800	437		1,163	9,400
Scoresby, VIC	8,300	465		1,435	10,200
Mornington, VIC	3,400	196.	6,481	623	10,700
Hoppers Crossing, VIC	2,075	127	5,925	673	8,800
Epping, VIC	7,800	455		1,245	9,500
Frankston, VIC	7,300	294	9,400		16,994
Oakleigh South, VIC	7,900	370	9,143		17,413
Maribymong, VIC	7,100	462			.7,562
Dandenong, VIC	4,000	255	6,660		10,915
Bayswater, VIC	7,335	458			7,793
Vermont South, VIC	10,000	629			10,629
Tuggeranong, ACT	7,900	422		278	$-8,600$
Fyshwick, ACT	10,000	692			10.692
Burleigh Heads, QLD	9,700	187		313	10,200
Underwood, QLD	3,000	170	5,850	380	9,400
Southport, QLD	2,800	.180	6,600	620	10,200
Cannon Hill, QLD	2,500	176	6,350	374	9,400
Cannon Hill Distribution Centre, QLD	3,100	126		274	3,500
Morayfield, QLD	8,000	322		478	8,800
Hervey Bay, QLD	2.778	148	6,425		9,351
Rocklea, QLD	6,225	291			6,516
Cairns, QLD	10,000	445			10,445
Hemmant, QLD	3,000	143			3,143
Minchinbury, NSW	9,200	496		304	10,000
Coffs Harbour, NSW	1,900	109	4,500		6,509
Port Macquarie, NSW	2,100	141			2,241
Artarmon, NSW	14,033	855			14,888
Betrose, NSW	17,150	1,037			18,187
Wollongong, NSW.	12,000	.618			12,618
Noarlunga, SA	2,304	114	3,750	772	6,940
Mile End, SA	11,250	617		833	12,700
	322,453	17,670	103,063	23,353	466,539

Succious Watehouse Property Trust 2003 Annual Report

Eundings Vincolumee Peoperty Teest 2003 Annual Report

For the year ended 30 June 2003 s sul

S. na sa kacam

$\mathbf{8}$

Investment properties (continued)

S, 10 4 N.C. 2013 V

(c) Valuers
Property	Valuation date Valuer
Baicatta, WA	G N Kennedy, FAPI - Jones Lang LaSalle 01.09.01
Joondalup, WA	31.05.01 G N Kennedy, FAPI -- Jones Lang LaSalle
Mandurah, WA	31.05.01 G N Kennedy, FAPI -- Jones Lang LaSalle
Bibra Lake, WA	01.02.02 G N Kennedy, FAPI – Jones Lang LaSalle
Albany, WA	04.11.02 -G R Elliott, FAPI -- FPD Savills
Mindarie, WA.	G R Elliott, FAPI - FPD Savills 11.03.03
Rockingham, WA	G R Elliott, FAPI - FPD Savills 30.06.03
Midland, WA	31.12.00 G N Kennedy, FAPI - Jones Lang LaSalle
Geraldton, WA	10.09.01 G N Kennedy, FAPI - Jones Lang LaSalle
Sunshine, VIC	31.05.01 J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle
Mentone, VIC	J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle 01.09.01
Altona, VIC	J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle $-31.05.01$
Nunawading, VIC	31.05.01 J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle
Fountain Gate, VIC	J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle 31.05.01
Broadmeadows, VIC	01.09.01 J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle
Northland, VIC	J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle. $-01.09.01$
Croydon, VIC	J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle 01.09.01
Sandown, VIC	31.05.01 J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle
Scoresby, VIC	J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle 01.09.01
Mornington, VIC	B F Sweeney, AAPI -- Jones Lang LaSalle 01.02.02
Hoppers Crossing, VIC	01.02.02 B F Sweeney, AAPI - Jones Lang LaSalle
Epping, VIC	$-01.09.01$ J J Carberry, B.Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle
Frankston, VIC	B F Sweeney, AAPI - Jones Lang LaSalle 05.09.01
Oakleich South, VIC	J J Carberry, B Bus(Prop), AAPI and B F Sweeney, AAPI - Jones Lang LaSalle 05.09.01

na mar

For the year ended 30 June 2003

8 Investment properties (continued)

(c) Valuers (continued)
Property	Valuation date Valuer
Maribyrnong, VIC	B F Sweeney, AAPI -- Jones Lang LaSalle 26.04.01
Dandenong, VIC	19.12.01 B F Sweeney, AAPI -- Jones Lang LaSalle
Bayswater, VIC	B F Sweeney, AAPI - Jones Lang LaSalle. 31.10.02
Vermont South, VIC	30.12.02 B F Sweeney, AAPI - Jones Lang LaSalle
Tuggeranong, ACT	B F Sweeney, AAPI - Jones Lang LaSalle. 31.05.01
Fyshwick, ACT	B F Sweeney, AAPI - Jones Lang LaSalle 24.09.02
Burleich Heads, QLD	01.09.01 C J Chatwood, AAPI and W R Wiemann, AAPI -- Jones Lang LaSalle
Underwood, QLD	31.05.01 W R Wiemann, AAPI - Jones Lang LaSalle
Southport, QLD	01.09.01 C J Chatwood, AAPI and W R Wiemann, AAPI - Jones Lang LaSalle
Cannon Hill, QLD	31.05.01 W R Wiemann, AAPI - Jones Land LaSalle
Cannon Hill Distribution Centre, QLD	06.10.02 C J Chatwood, AAPI - Jones Lang LaSalle
Morayfield, QLD	C J Chatwood, AAPI - Jones Lang LaSalle 27.03.03
Hervey Bay, QLD	W R Wiemann, AAPI - Jones Lang LaSalle 31.07.02
Rocklea, QLD	28.04.03 J K Dillon, AAPI = Jones Lang LaSalle
Cairns, QLD	24.10.02 C J Chatwood, AAPI - Jones Lang LaSalle
Hemmant, QLD	02.04.03 C J Chatwood, AAPI - Jones Lang LaSalle
Minchinbury, NSW	B F Sweeney, AAPI - Jones Lang LaSalle $-01.09.01$
Coffs Harbour, NSW	E. Watts, FAPI -- Colliers International 20.09.01
Port Macquarie, NSW	22.05.02 E. Watts, FAPI - Colliers International
Artarmon, NSW	J E Burdekin, FAPI and B R Stewart, AAPI - Jones Lang LaSalle 24.10.02
Beirose, NSW	24.10.02 J E Burdekin, FAPI and B R Stewart, AAPI -- Jones Lang LaSalle
Wollongong, NSW	J E Burdekin, FAPI and B R Stewart, AAPI - Jones Lang LaSalle 28.10.02
Noarlunga, SA	01.02.02 M Harrington, AAPI - McGees
Mile End, SA	C Gumey, AAPI and M Harrington, AAPI AREI -- McGees 19.03.03

Busings Warehouse Property Trust 2003 Annual Report

Property valuations were based on the present value of future cash flows and capitalisation methods.

Basilians Marchause Procenty Trust 2003 Annual Report

For the year ended 30 June 2003

Investment properties (continued)

(d) Operating leases

(i) With the exceptions of Maribymong, Rocklea, Port Macquarie, Bayswater, Hemmant and Vermont South, which are land only, one hectare of surplus land on the Oakleigh South property and 0.4 hectares of surplus land on the Hervey Bay property, all of the properties listed in Note 8(a), (b) and (c) with a book value of \$424.2 million are leased by Bunnings Building Supplies Pty Ltd ("the tenant").
(ii) Key terms of the majority of leases are as follows:
. With the exception of the lease for the property at Fyshwick, the term is five years with four option terms of five years each. The responsible entity or the tenant can exercise the first two five year options but only the tenant can exercise the last two five year options. The term of the lease for the Fyshwick property is five years with four option terms of five years each, and the responsible entity or the tenant can exercise only the first of the five year options.
- Subject to the variations in leases for the properties at Albany, Mile End and Coffs Harbour set out below, rental is reviewed annually in line with movements in the Consumer Price Index compiled by the Australian Bureau of Statistics as the Weighted Average (Eight Capital Cities -- All Groups Index Numbers) except on each fifth anniversary of the commencement date when rent is reviewed to market rental determined in accordance with generally accepted rent review criteria. With the exception of leases for the properties at Artarmon, Belrose, Wollongong and Cairns, on a market review there is a restriction on the rental decreasing below the commencement rent.
- The following are variations to the above:
- Albany in determining market rent reviews, rental evidence is to include regional centres around Australia, not just those in Western Australia. والهجو فلأناه والواود وأواو والمحاج والمتحدث والمحتجبات
- Mile End the rent is comprised of a fixed rent of \$209,000 per annum and a reviewable rent. At the first market review, the rent will be at least 10 per cent above, but not more than 20 per cent above the commencement rent.
- Coffs Harbour « in determining the market rent review on the fifth anniversary of the commencement date, the rent may not be less than \$671,000.
The tenant is responsible for payment of all outgoings, which include all normal rates, taxes and assessments including land tax (except in ٠ Queensland) and metropolitan region tax at the amount assessed. The tenant is responsible for payment of all utilities utilised by it from the premises. $\frac{1}{2}$ is the set of $\frac{1}{2}$
(iii) The properties are not depreciated (see Note 1).
(iv) At the date of this report there have been no write downs other than a write down of \$199,000 on the Joondalup property as a result of a valuation of this property as at May 2001 and a write down of \$52,000 on the Balcatta property as a result of the valuation as at September 2001 (refer Note 8(b)). The contract of the contract of the September 2001 (refer
(v) There are no lease commitments receivable as at the reporting date.
(vi) There were no contingent rentals recognised as revenues in the financial year.
(vii) The future minimum non-cancellable rental revenues are:

	2003	2002
	\$000	\$000
Not later than one year	37,958	29,868
Later than one year not later than five years	151,900	119,508
Later than five years	258,701	218,452
	448,559	367.828
Reconciliation
Carrying amount at the beginning of the financial year.	348,291	286,797
Capital additions	114,766	49.449
Net revaluation increments	3,482	12,045
Carrying amount at the end of the financial year	466,539	348.291

Beneings Warehouse Property Truck 2003 Annual Report

THE MILLING STATES

	For the year ended 30 June 2003.	2003 SOOO	2002 \$000
	Interest bearing liabilities
	Non-current bank loans	135,552	80,702
	Terms and conditions relating to the above financial instrument:
	Bank loans bear interest at short term commercial rates payable at the time of maturing of the bank bills.
	The weighted average interest rate (including margins) for the year ended 30 June 2003 was 6.2 per cent (2002: 6.4 per cent) and includes interest rate hedging adjustments since the inception of the hedges (see Note 16).

10 Payables
	Trade creditors and accruals	4,126	577
	Responsible entity's fees payable	678	515
	Related parties - associated entities (see Note 18)	608	280
		5,412	1,372

	Unitholders' funds
	(a) Value of units on issue
	Value at the beginning of the financial year	235,259	178,013
	Value of units issued during the financial year	44,487	58,492
	Equity raising costs	(464)	(1,246)
	Value at the end of the financial year	279,282	235,259

		Units	Units
		.000	000
	(b) Number of units on issue Number of units on issue at the beginning of the financial year	231,608	181,766
	Number of units issued during the financial year	34,435	49,842
	Number of units on issue at the end of the financial year	266,043	231,608

Equity raising costs relate to the placement of 26,108,432 units issued at \$1.29 per unit during the financial year ended 30 June 2003. The costs include underwriting, listing fees, adviser's fees and legal fees.

Units issued during the year under the Distribution Reinvestment Plan were as follows:

3,367,454 ordinary units at \$1.28 per unit on 30 August 2002.

4,959,117 ordinary units at \$1.31 per unit on 27 February 2003.

Sandings Vieretowse Property Youth 2003 Annual Report B

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	For the year ended 30 June 2003.	2003	2002
		\$000	\$000

12	Reserves and undistributed income

	Asset revaluation	23,353	19,871
	Undistributed income	7

		23,360	19,872
	Asset revaluation

	Nature and purpose of reserve (a)
	The asset revaluation reserve is used to record increments and decrements in the value of property
	investment assets, in accordance with the Constitution of the Trust, amounts in the asset revaluation
	reserve are not distributed to unitholders until the assets have been sold and the increments realised.
	Movements in reserve (b)
	Balance at the beginning of the financial year	19,871	7.826
	Revaluation increments arising from the revaluation of investment properties	3,482	12,045

	Balance at the end of the financial year	23,353	19,871

	13 Distributions

	Undistributed income at the beginning of the financial year		-16
	Net profit attributable to unitholders in Bunnings Warehouse Property Trust	26,340	21,084
	Distributions paid and payable (see Note 4)	(26, 334)	(21,099)
	Undistributed income at the end of the financial year	7

	14 Statement of cash flows

	(a) Reconciliation of operating profit to the net cash flows from operations
	Net operating income from ordinary activities	26,340	21,084
	(Increase)/decrease in receivables	(168)	649
	Increase in accounts payable	4,010	424
	Net cash provided by operating activities	30,182	22,157
	(b) Reconciliation of cash
	Cash balance comprises:
	Cash assets (see Note 6)	4,783	255

	(c) Non cash financing activities
	Distribution Reinvestment Plan
	Under the terms of the Distribution Reinvestment Plan, \$10,806,784 (2002: \$5,046,283) of distribution
	to unitholders was paid by way of the issue of 8,326,571 units (2002: 4,287,356 units).

The Trust has access to bank bill lines totalling \$175 million (2002: \$125 million) through a facility agreement with the National Australia Bank Limited. The amount of credit unused at 30 June 2003 was \$38.9 million (2002: \$44.0 million). The agreement expires in November 2004.

Bussings Warekouse Property Trusk 2003 Annual Report

For the year ended 30 June 2003

16 Financial instruments

Recognised financial instruments

The Trust has recognised certain financial instruments in the accounts. These financial instruments are disclosed in Notes 6, 9, 10 and 18. Unrecognised financial instruments

: Interest rate risk exposure $(a)$

The Trust is exposed to financial risk from movement in interest rates. To reduce its exposure to adverse fluctuations in interest rates the Trust has employed the use of interest rate swaps whereby the Trust agrees with various Australian banks to exchange at specified intervals, the difference between. fixed rate and floating rate interest amounts calculated by reference to an agreed notional principal amount. Any amounts paid or received relating to interest rate swaps are recognised as adjustments to interest expense over the life of each contract swap, thereby adjusting the effective interest rate on the underlying obligations. At 30 June 2003 the fixed rates varied from 5.085 per cent to 6.615 per cent (2002: 5.46 per cent to 6.635 per cent) and the floating rates were at bank bill rates. The contribution of the contribution of the contribution

The Trust's exposure to interest rate risk for classes of financial assets and financial liabilities is set out below.

			Fixed interest maturing in:		Non-
	Variable interest	1 year or less	1 to 5 years	Over 5 years	interest bearing	Total
2003	\$000	\$000	\$000	\$000	\$000	\$000
Financial assets
Cash assets	4,783					4,783
	4,783					4,783
Financial liabilities
Interest bearing liabilities	135,552					135,552
Payables					19,138	19,138
	135,552				19,138	154,690
Interest swaps	(158,000)	14,000	62,000	82,000

2002
Financial assets
Cash assets	255					255
	255					255
Financial liabilities
Interest bearing liabilities	80,702					80,702
Payables					1,372	1,372
	80,702				1,372	82,074
Interest swaps	(88.000)	7.000	56.000	25,000

Banadas Warehouse Prodecty Trust 2003 Annual Report

For the year ended 30 June 2003

16 Financial instruments (continued)

(b) Concentration of credit risk

The credit risk associated with the rental income is with one tenant, Bunnings Building Supplies Pty Ltd, a wholly owned subsidiary of Wesfarmers Limited. Bunnings Building Supplies Pty Ltd and Wesfarmers Limited are currently subject to a Deed of Cross Guarantee under which they covenant with a trustee for the benefit of each creditor that they guarantee to each creditor payment in full of any debt in the event of any entity that is included in the Deed of Cross Guarantee being wound up.

(c) Net fair values

$17²$

The carrying amount of financial assets and financial liabilities recorded in the financial statements represents their respective net fair values, determined in accordance with the accounting policies disclosed in Note 1 of the financial statements with the exception of interest rate swaps.

(d) Interest rate swaps

The valuation below reflects the estimated amount which the Trust would receive to terminate the contracts (net of transaction costs) or replace the contracts at their current market rates at balance date. This is based on independent market quotations and determined using standard valuation techniques.

	2003		2002
	Carrying amount Net fair value	Carrying amount	Net fair value
	\$000 \$000	\$000	\$000
Liability
Interest rate swaps	4,486		524

Capital expenditure commitments
		2003 \$000	2002 \$000

Estimated capital expenditure contracted for at balance date, but not provided for, payable:
Not later than one year
Associated entities		23,125	-12.900
Other			2.800
Later than one year and not later than five years
Associated entities		6,700	6,700
		29,825	22,400
			and they

Maribyrnong, Victoria

In June 2001 the Trust acquired a 3.4 hectare development site at Maribymong for a purchase price of \$7.1 million. The Trust has accepted a proposal from Bunnings Building Supplies Pty Ltd to develop a Bunnings Warehouse on the site for \$6.7 million. The Trust will receive an annual rental of \$1,250,000 when a Bunnings Warehouse is developed on the site.

Rocklea, Queensland

In October 2002, the Trust acquired a 3.2 hectare development site at Rocklea for a purchase price of \$6.2 million. The Trust has accepted a proposal from Bunnings Bullding Supplies Pty Ltd to develop a Bunnings Warehouse on the site for \$7.5 million. The Trust will receive an annual rental of \$1,195,000, net of Queensland land tax, when a Bunnings Warehouse is developed on the site.

Port Macquarie, New South Wales

In November 2002, the Trust acquired a 2.0 hectare development site at Port Macquarie for a purchase price of \$2.1 million. The Trust has accepted a proposal from Bunnings Building Supplies Pty Ltd to develop a Bunnings Warehouse on the site for \$5.4 million. The Trust will receive an annual rental of \$680,000 when a Bunnings Warehouse is developed on the site.

Succines Watchmase Property Trank 2003 Annual Report

For the year ended 30 June 2003

17 Capital expenditure commitments (continued)

Hemmant, Queensland

In May 2003, the Trust acquired a 3.5 hectare development site at Hemmant for a purchase price of \$3.0 million. The Trust has accepted a proposal from Bunnings Building Supplies Pty Ltd to develop a distribution centre and office accommodation on the site for \$10.3 million. The Trust will receive an annual rental of \$1,164,500 when the development is completed (Queensland land tax must be paid from the rental).

18 Related party disclosures

(a) The Manager and responsible entity The Manager and responsible entity of the Trust is Bunnings Property Management Limited, a wholly owned subsidiary of Wesfarmers Limited.

(b) Directors of the responsible entity

Directors of the responsible entity during the financial year were W H Cairns, P J Mansell, R W McCuaig and G T Tilbrook. The relevant interests in units in the Trust held by directors of the responsible entity and their related entities as at year end were:

		ZUU3	2002 -
	Aggregate number of units acquired	21,351	67.744
	Aggregate number of units held	372,281	370.930
	Responsible entity's holding of units
	~No units are held by the responsible entity.
d).	Transactions with related parties

1. Relationship with the Wesfarmers Group: Allen Allen Allen Martin Company
(i) Wesfarmers Investments Pty Ltd, a controlled entity of Wesfarmers Limited, holds 61,273,676 (2002; 58,277,105) units in the Trust, representing 23.03 per cent of the units on issue at 30 June 2003; with setting the contribution
Buring the year ended 30 June 2003 rent and other property income of \$35,804,685 (2002: \$28,893,189) was received or receivable from (ii) Bunnings Building Supplies Pty Ltd, a controlled entity of Wesfarmers Limited. [1111] [111] [111] [111]
(iii) The responsible entity's fee of \$2,358,971 (2002; \$1,926,272) is paid/payable to the responsible entity.
(iv) During the year ended 30 June 2003 the Trust acquired properties from BBC Hardware Limited, a wholly owned subsidiary of Wesfarmers Limited, for \$53.2 million. The total acquisition price was consistent with valuations performed by independent valuers.
(v) Mr G T Tilbrook is Executive Director, Business Development of Wesfarmers Limited.
(vi) Current payables include a loan amount from Wesfarmers Limited to the Trust, totalling \$608,160 (2002: \$279,665), with no fixed repayment date.
(vii) Non-current payables include an interest free loan amount from Wesfarmers Limited to the Trust totalling \$13,725,975 (2002: Nii), with no fixed repayment date ...
1. During the year Freehills, of which Mr P J Mansell is Managing Partner of the Perth office, provided legal services on an arms length basis totalling \$41,128 (2002: \$59,952). Mr Mansell is a director of the responsible entity.
During the year Colliers International Consultancy & Valuation Pty Limited, of which Mr R W McCaaig is associated, provided valuation services on an 3. arms length basis totalling \$18,760 (2002; \$4,000). Mr McCuaig is a director of the responsible entity.
1. During the year Mr W H Cairns provided consultancy services to Jones Lang LaSalle Advisory Services Pty Ltd. Jones Lang LaSalle Advisory Services Pty Ltd provided valuation services totalling \$19,800 (2002: \$40,450) on an arms length basis to the Trust. Mr Cairns is a director of the responsible entity.

No other benefits have been received or are receivable by directors of the responsible entity or directors of a related entity.

Basilings Warehouse Property Vriter 2003 Annual Report

For the year ended 30 June 2003

19 Additional information

(a) Principal activities and investment policy of the Trust

To invest in warehouse retailing properties and in particular, Bunnings Warehouses tenanted by Bunnings Building Supplies Pty Ltd with the purpose of providing unitholders with a secure, growing income stream and capital growth.

(b) Commencement and life of the Trust

The Trust was constituted under a Trust Deed dated 18 June 1998 and unless terminated earlier under the Trust Deed, continues until the earlier of the expiration of 80 years following the commencement of the Trust and units ceasing to be officially quoted on the Australian Stock Exchange. The Trust is managed by Bunnings Property Management Limited. Both the Trust and the responsible entity are domiciled in Australia.

On 5 August 1999 the Trustee, Perpetual Trustee Company Limited, retired in accordance with the changes in the Corporations Law under the Managed Investments Act 1998 and Bunnings Property Management Limited became the responsible entity.

(c) Segment reporting

The Trust operates wholly within Australia and derives rental income from investments in commercial property.

(d) Economic dependency

100 per cent (2002; 100 per cent) of the Trust's rental income is received from Bunnings Buildings Supplies Pty Ltd,

For the year ended 30 June 2003

In accordance with the Corporations Act 2001, Bunnings Property Management Limited (ABN 26 082 856 424) provides this report for the financial year ended 30 June 2003. The information on pages 6 to 15 forms part of this directors' report and is to be read in conjunction with the following information:

Sussitues Vincehouse Preserty Trust 2003 Annual Report

Results and distributions

	zuvj SOO0	cuuc \$000
Net Profit	26,340	21.084
Distributions
The following distributions have been paid by the Trust or declared by the directors since the commencement of the financial year ended 30 June 2003:
Out of the profits for the year ended 30 June 2002 on the fully-paid ordinary units as disclosed in last year's directors report: Final distribution of 4.97 cents per unit paid on 30 August 2002	11,512
. Out of the profits for the year ended 30 June 2003 (see Note 4 of the notes to the financial statements): Interim distribution of 5.15 cents per ordinary unit paid on 27 February 2003 (ii) : Final distribution of 5.35 cents per all units declared by the directors for payment on 5 September 2003	12.101 14.233

Units on issue

266,043,439 units of Bunnings Warehouse Property Trust were on issue at 30 June 2003 (2002: 231,608,436). During the year 34,435,003 (2002: 49,841,668) units were issued by the Trust.

Principal activity

The principal activity is property investment.

There has been no significant change in the nature of this activity during the financial year.

Trust assets

At 30 June 2003, Bunnings Warehouse Property Trust held assets to a total value of \$471.6 million (2002: \$348.7 million). The basis for valuation of the assets is disclosed in Note 1 of the notes to and forming part of the financial statements.

Fee paid/payable to the responsible entity

Management fees totalling \$2.4 million (2002: \$1.9 million) were paid or are payable by the Trust to the responsible entity for the financial year.

Trust information

Bunnings Warehouse Property Trust is a Managed Investment Scheme registered in Australia. Bunnings Property Management Limited, the responsible entity of the Trust, is incorporated and domiciled in Australia. The contract of the s provincia de la pob

.
The registered office of the responsible entity is located at Level 11, 40 The Esplanade, Perth, Western Australia, 6000.

The Trust had no employees during the financial year.

Synaines Viscolasse Property Trust 2003 Annual Report

For the year ended 30 June 2003

Directors

Information on directors

The names of directors of the responsible entity in office during the financial year and until the date of this report are:

W H Caims

P J Mansell

R W McCuaig

G T Tilbrook

Details of the directors appear on page 17.

Directors' units

Units in the Trust in which directors had a relevant interest at the date of this report were:

Units.

. W H Caims	22.714
P J Mansell	55,804
R W McCuaig	(91,976)
G T Tilbrook	.779
	. .

No directors have other rights or options over interests in the Trust or contracts to which the director is a party or under which the director is entitled to a benefit and that confer a right to call for or deliver an interest in the Trust.

Insurance of directors and officers

During or since the end of the financial year, the responsible entity has paid or agreed to pay a premium in respect of a contract insuring all the directors and officers against a liability incurred in their role as directors and officers of the entity, except where:

(a) the liability arises out of conduct involving a wilful breach of duty, or

(b) there has been a contravention of sections 182 or 183 of the Corporations Act 2001.

The total amount of insurance contract premiums paid has not been disclosed due to a confidentiality clause in the insurance contract.

Review and results of operations

The operations of the Trust during the financial year and the results of those operations are reviewed on pages 6 to 13 of this report and in the accompanying financial statements.

Significant changes in the state of attairs

During the financial year, the Trust's investment in Bunnings Warehouse properties increased by \$118.2 million to \$466.5 million, increasing its portfolio of these properties to 48 at financial year end.

There were no other significant changes in the state of affairs of the Trust during the financial year.

For the year ended 30 June 2003

Significant events after the balance date

No matters or circumstances have arisen since the end of the financial year that have significantly affected or may significantly affect the operations, results of operations or state of affairs of the Trust in subsequent financial years.

Buonitus Vincensuse Property Yeast 2003 Annual Report

Likely developments and expected results

-Likely developments in and expected results of the operations of the Trust in subsequent years are referred to elsewhere in this report, particularly on pages 6 to 13. In the opinion of the directors, further information on those matters could prejudice the interests of the Trust and has therefore not been included in this report.

Corporate governance

In recognising the need for the highest standards of corporate behaviour and accountability, the directors of Bunnings Property Management Limited support and have adhered to the principles of corporate governance. The Trust's corporate governance statement is contained on pages 16 and 17 of this annual report.

Environmental regulation and performance

The Trust's operations are not subject to any particular significant environmental regulations under either Commonwealth or State legislation. The Trust is not aware of any breach of environmental regulations.

Rounding

The amounts contained in this report and in the financial statements have been rounded to the nearest thousand dollars under the option available to the Trust under ASIC Class Order 98/0100 an
Deegaan a an san taon na Luis na baoine an t-ainm an san t-ainm.
También sa bhliain a chuir a bha an t-ainm an t-ainm an t-ainm

Signed in accordance with a resolution of the directors of Bunnings Property Management Limited.

W H Cairns Chairman Bunnings Property Management Limited Perth, 19 August 2003

Strations Warehouse Property Trust 2003 Annual Report

For the year ended 30 June 2003

In accordance with a resolution of the directors of Bunnings Property Management Limited, responsible entity for the Bunnings Warehouse Property Trust (the Trust), I state that in the opinion of the directors: $\left\langle \left[ \left[ \left[ \left( \left[ 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots, 1, \ldots,$ Aug.

an di Kabupatèn Bandaré Pang

(a) ... the financial statements and notes of the Trust are in accordance with the Corporations Act 2001, including:

. (i) giving a true and fair view of the Trust's financial position as at 30 June 2003 and of its performance for the year ended on that date; and

(ii) Complying with Accounting Standards and Corporations Regulations 2001; and

(b) there are reasonable grounds to believe that the Trust will be able to pay its debts as and when they become due and payable.

For and on behalf of the board of Bunnings Property Management Limited.

W H Cairns

Chairman Bunnings Property Management Limited Perth, 19 August 2003.

The financial report and directors' of Bunnings Property Management Limited responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the directors' declaration for the Bunnings Warehouse Property Trust (the Trust), for the year ended 30 June 2003.

Sanshire Werehouse Property Treet 2003 Annual Report

The directors of Bunnings Property Management Limited are responsible for preparing a financial report that gives a true and fair view of the financial position and performance of the Trust, and that complies with Accounting Standards in Australia, in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Audit approach

We conducted an independent audit of the financial report in order to express an opinion on it to the unitholders of the Trust. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001, including compliance with Accounting Standards in Australia, and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the Trust's financial position, and of its performance as represented by the results of its operations and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and

٠ assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

We performed procedures to assess whether the substance of business transactions was accurately reflected in the financial report. These and our other procedures did not include consideration or judgment of the appropriateness or reasonableness of the business plans or strategies adopted by the directors of Bunnings Property Management Limited and management of the Trust.

independence

We are independent of the Trust, and have met the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

Audit opinion

In our opinion, the financial report of the Bunnings Warehouse Property Trust is in accordance with:

(a) the Corporations Act 2001, including:

(i) giving a true and fair view of the financial position of the Trust at 30 June 2003 and of its performance for the year ended on that date; and

(ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001; and

(b) other mandatory financial reporting requirements in Australia.

Ernst & Young

GH Meyerowitz Partner Perth, 19 August 2003

Sumings Warehouse Property Youri 2003 Annual Report 3. 2. marshall and the state of the second contract of the second contract of the second contract of the second contract of the second contract of the second contract of the second contract of the second contract of the se

	EN NEDEDZIJA
ise 22. a

Substantial unitholders

Kalendar The number of units held by the Trust's substantial unitholder as at 25 November 2002, being the date on which its last notice was lodged with the Trust:

Units

58,955,942

Wesfarmers Limited, its subsidiaries and their associates.

Distribution of unitholders
As at 19 August 2003	Range of holding	Holders	Units
	1,000	722	-384,831
	.001 $-5.000$	3.324	10,526,267
	5.001 10,000 100,000 10.001	2.813 3.666	20,916,138 78,661,752	29.6
	$100,001$ . over	131	155,554,451	58.4
	Total	10,656	266,043,439	100.0

Unitholders holding less than a marketable parcel (325 units).			32,803

Unitholders holding less than a marketable parcel (325 units)

Voting rights

Each fully paid ordinary unit carries voting rights of one vote per unit.

$\alpha$ , $\alpha$ , $\beta$

.
************************************

Twenty largest unitholders

The twenty largest holders of ordinary units in the Trust as at 19 August 2003 were: Number	Percentage of
of units	capital held
Wesfarmers Investments Pty Ltd 61,273,676	23.03
J.P. Morgan Nominees Australia Limited -13,669,039	5.14
Queensland Investment Corporation 0,558,089	3.59
Westpac Custodian Nominees Limited 7,517,538	2.83
Australian Foundation Investment Company Limited 7,300,000	2.74
Zurich Investment Management Limited 5,879,797	221
Commonwealth Custodial Services Limited 4,316,113	1.62
National Nominees Limited 3.047,540	1.15
Cogent Nominees Pty Limited 2,880,277	.08
Dierriwarrh Investments Limited 2,550,000	0.96
ANZ Nominees Limited 1,805,710	$-0.68$
Suncorp Custodian Services Pty Limited 1,584,219	0.60
Permanent Trustee Australia Limited 1,357,360	.0.51
Kowloon Nominees Pty Limited 1,215,737	$-0.46$
Transport Accident Commission 1,207,856.	0.45
Bond Street Custodians Limited 982,095	0.37
Tower Trust Limited 822,008	$-0.31$
INVIA Custodian Pty Limited 785,452	0.30
ARGO Investments Limited 785,000	0.30
MLC Limited 737,132	0.28
Total 129,274,638	48.61

Responsible entity

Bunnings Property Management Limited ABN 26 082 856 424 Level 11, Wesfarmers House 40 The Esplanade PERTH WA 6000 Telephone: (08) 9327 4417 Facsimile: (08) 9327 4344 www.bunningspropertytrust.com.au

Directors and senior management

W H Cairns (Chairman) P J Mansell (Director) R W McCualg (Director) G T Tilbrook (Director) A J Hopkins (Manager) P S Gardiner (Secretary)

Registry

Computershare Investor Services Pty Limited Level 2, Reserve Bank Building 45 St George's Terrace PERTH WA 6000 Telephone: (08) 9323 2000 Facsimile: (08) 9323 2033

Solicitor

Freehills QV1 ~~ 250 St George's Terrace

PERTH WA 6000.

Buenting Warehouse Property Truck 2003 Annual Report

Auditor

Ernst & Young Central Park 152 -- 158 St George's Terrace PERTH WA 6000

Banker

National Australia Bank Limited 50 St George's Terrace PERTH WA 6000.

VISITUS atmi

www.bunningspropertytrust.com.au

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AI assistant

BWP GROUP — Annual Report 2003

64592_rns_2003-09-04_fb504405-41a3-4805-8068-78bf893cd485.pdf

SANNUAL

DIELEVIERINGNAVALDE

48 PROPERTIES OWNED, AND STILL ACQUIRING

CONGRESS

FINANCIAL PERFORMANCE

PROFIT

TOTAL ASSETS

HIGHLIGHTS

DISTRIBUTION

FIRST

OBJECTIVES AND STRATEGIES

OBJECTIVES

STRATEGIES

THE TENANT

THE SITES

THE STORES

LETTER FROM THE CHAIRMAN

Dear Unitholder,

ET LIGHT

MANAGER'S REPORT

Financial results

Final distribution

Market performance

Revaluations

Gearing

Interest rate management

Funding

Capital raising

Property acquisitions and developments

Hervey Bay, Queensland

Rocklea. Queensland

Port Macquarie, New South Wales

Dandenong, Victoria

Fyshwick, Australian Capital Territory

REVALUATIONS COMPLETED DURING 2002/03

Artarmon, New South Wales

Beirose, New South Wales

Wollongong, New South Wales

Cairns, Queensland

Bayswater, Victoria

Hemmant, Queensland

Vermont South, Victoria

Outlook

PHITE En de

na 1989: 1989: 1989

CORPORATE GOVERNANCE

Compliance and risk control

Selection and appointment of directors

Roles of the board and management

Ethics and conduct

Independent professional advice

Audit

Trading in units

R W MCCUAIC, FRICS DIRECTOR, Age: 65

P. J. MANSELL, B. Com, LLB, H. Dip Tax DIRECTOR, Age: 56

GT TILBROOK B SC, MBA DIRECTOR, Age: 52

A J HOPKINS, B.E., MBA MANAGER, Age: 39

INVESTOR INFORMATION

Stock exchange listing

Distribution reinvestment plan

Electronic payment of distributions

Publications

Website

Annual tax statements

Profit distributions

Unitholder meetings

Unitholder inquiries

CONSIN

Bearings Warstowne Property Trust 2003 Annual Report

Bunnings Warehouse Property Ymst 2003 Annual Report

Summary of significant accounting policies ٦

(a) Changes in accounting policies

(b) Revenue recognition

(c) Expenditure

(d) Property outgoings

$(e)$ Taxation

Goods and Services Tax

BWP GROUP Annual Report 2003