BWP GROUP — Annual Report 2003

Aug 18, 2003

BUNNINGS PROPERTY MANAGEMENT LIMITED

ABN 26 082 856 424 Responsible Entity for the Bunnings Warehouse Property Trust

FACSIMILE TRANSMISSION

TELEPHONE: (08) 9327 4318

FACSIMILE: (08) 9327 4344

This document is confidential and may contain legally privileged information. If you are not the intended recipient you must not read, copy, distribute or act in reliance on it. If you have received this document in error, please telephone us immediately.

	SUBJECT: ASX RELEASE
FROM:	ANDREW HOPKINS MANAGER	OUR REF:
TO:	ASX	FACSIMILE: 1900 999 279
DATE:	19 AUGUST 2003	PAGES:	14

Following is the Bunnings Warehouse Property Trust press release regarding the full year results and final distribution.

Please send confirmation of release back to fax number 08 9327 4216.

Regards

ASX PERTH

19 August 2003

Continuing to Deliver Value

The Directors of Bunnings Property Management Limited, the responsible entity for the Bunnings Warehouse Property Trust, today announced a profit of \$26.3 million for the year ended 30 June 2003, an increase of 25 per cent on the profit of \$21.1 million earned last year.

Total income was \$35.9 million, up by 24 per cent from last year's \$29.0 million due to additional income received from new properties, together with programmed rental escalations.

Final distribution

The directors have announced a final distribution of 5.35 cents per unit. Final distributions will be made on 5 September 2003 to unitholders on the Trust's register as at 5.00 pm 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 vear forecast of 10.26 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.

The directors have determined that the discount on the units available under the Distribution Reinvestment Plan of the Trust will remain at 2.5 per cent for this distribution which results in an issue price of \$1.50.

Finance

At 30 June 2003, the Trust had total assets of \$471.6 million, with unitholders' equity of \$302.6 million and total liabilities of \$168.9 million.

The gearing ratio (debt to total assets) at 30 June 2003 was 31.7 per cent, within the Trust's preferred range of 20-40 per cent.

At 30 June 2003, 86 per cent of the Trust's interest bearing debt was hedged against movements in interest rates at a weighted average rate, excluding margins, of 5.7 per cent.

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Properties

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 Hemmant, in Queensland, as well as Bayswater and Vermont South in Victoria, and at Port Macquarie in New South Wales.

A Bunnings Warehouse was store was developed by the Trust on the site at Hervey Bay, as well as on a site at Dandenong, Victoria, which was purchased by the Trust 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 Cairns 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 at Fyshwick, in the Australian Capital Territory, from a party not related to Wesfarmers Limited.

The Trust has committed to development of a Bunnings Warehouse 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 Hemmant, 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 acquisitions and developments are considered to have potential for rental growth and capital appreciation.

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.

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.

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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, the majority of which is sourced from sales from Bunnings Warehouse stores.

The Trust is 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.

For further information please contact:

Mr Andrew Hopkins Manager, Bunnings Property Management Limited

Telephone: (08) 9327 4318 E-mail: andrew.hopkins@bpml.wesfarmers.com.au

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APPENDIX 4E

ARSN 088 581 097

Financial year ended 30 JUNE 2003

Results for announcement to the market

			\$4'000
UP	23.7%	to	35,935
up	24.9%	to	26,340
up	24.9%	to	26,340
				Amount per security 5.35 cents 4.97 cents 30 June 2003

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Bunnings Warehouse Property Trust - Preliminary Final Report

STATEMENT OF FINANCIAL PERFORMANCE

FOR THE YEAR ENDED 30 JUNE 2003

	2003	2002
	\$000	\$000
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	(27)	(37)
Interest and borrowing costs	(6,679)	(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	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		16
Total available for distribution.	26,341	21,100
Distribution paid and payable	26,334	21,099
Undistributed income at the end of the financial year	7	1
Basic and diluted earnings per unit (cents per unit)	10.5	9.8
Distribution per unit held for the full year (cents per unit)	10.5	9.6
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

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Bunnings Warehouse Property Trust - Prellminary Final Report

STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2003

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	2003	2002
	\$000	\$000
Current assets
Cash assets	4,783	255
Other	243	171
Total current assets	5,026	426
Non-current assets
Investment properties	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	13,726
Interest bearing liabilities	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	23,353	19,871
Undistributed income reserve	$\overline{7}$
Total unitholders' funds	302,642	255,131

Bunnings Warehouse Property Trust - Prellminary Final Report

Ratios
	2003	2002
Net Tangible Asset Backing
Net tangible asset backing per ordinary unit	\$1.14	\$1.10
Profit Belore Tax/Revenue
Profit (loss) from ordinary activities before tax as a
percentage of revenue	73%	73%
Profit After Tax/Equity Interests
Net profit (loss) from ordinary activities after tax
Attributable to members as a percentage of equity
(similarly attributable) at the end of the period	9%	8%

Distributions

Date the distribution is payable

Record date to determine entitlements to the distribution (ie, on the basis of record date to determine entitellibrity to the distributor (ie, on the basis of
registrable transfers received by 5.00 pm if securities are not CHESS approved, or
security holding balances established by 5.00 pm or such la 5 September 2003

30 June 2003

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If it is a final distribution, has it been declared?

Amount per security

		Amount per security
Final distribution:	Current year	5.35¢
	Previous year	4.97¢
interim distribution:	Current year	5.15c
	Previous year
	BWP - Ordinary units	4.8c
	BWPNA-Rights Issue units	1.2 ¢
	BWPNB - Placement units	2.35c

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Bunnings Warehouse Property Trust - Prellminary Final Report

Final distribution on all securities

	CUITENT DEROU \$A'000	FIGAIOUS COLLECTION IONI period - \$A'000
Ordinary securities - full entitlement	14,233	11.512

Distribution Plan

The Bunnings Warehouse Property Trust Distribution Reinvestment Plan is currently in operation.

The last date for receipt of election notices for the distribution plan is 28 August 2003.

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Bunnings Warehouse Property Trust - Preliminary Final Report

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2003

	2003	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, 836)	(4,961)
Net cash flows from operating activities	30,182	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

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Bunnings Warehouse Property Trust - Preliminary Final Report

Reconcillation 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
Reconciliation of cash
Cash balance comprises:
Cash on hand and at bank	4.783	255

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)

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Bunnings Warehouse Property Trust - Prellminary Final Report

Issued and quoted securities at end of current period

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Category of securities	Total number	Number quoted	issue price per security (cents)	Amount paid UD per security (cents)
Preference securities (description)	Nil
Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions	Nil
Ordinary securities	265,043,439	266,043,439
Changes during current period (a) Increases through issues	34,435,003	3,367,454 26,108,432 4.959,117	128 129 131	128 129 131
(b) Decreases through returns of capital, buybacks	Nil
Convertible debt securities (description and conversion factor)	Nit
Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted	Nil
Options (description and conversion factor)	Nil		Exercise price	Expiry date (if any)
Issued during current period	Nil
Exercised during current period	Nil
Expired during current period	Nil
Debentures (description)	Nil
Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted

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Bunnings Warehouse Property Trust - Prellminary Final Report

Unsecured notes (description)	Nil
Changes during the current period (a) Increases through issues (b) Decreases through securities matured, converted

BUNNINGS WAREHOUSE PROPERTY TRUST PRELIMINARY FINAL REPORT

Related Party Disclosure

Number of units held by the management company or responsible entity or their related 61,273,676 parties. Management tees payable to the management company, Bunnings Property Management
Limited, a wholly owned subsidiary of \$2,358,971 Westarmers Limited.

Segment Reporting

The Trust operates in a single segment being property investment in Australia.

Commentary on the results for the period

Refer to the press release dated 19 August 2003 accompanying this statement.

Subsequent Events

There have been no events which have occurred since the end of the current period that have had a material effect and which are not already reported elsewhere in this Appendix or in attachments.

Audit

This report is based on accounts which have been audited.