24 August 2005

2005 Annual Report

Bunnings Property Management Limited, the responsible entity for the Bunnings Warehouse Property Trust wishes to advise that the 2005 Annual Report will be mailed today to Unitholders who have elected to receive an Annual Report.

A copy of the 2005 Annual Report is attached to this announcement and will also be available on the Trust's website at www.bunningspropertytrust.com.au

ANTHONY NIARDONE Company Secretary

Bunnings Warehouse Property Trust

annual report 20

NNNes

In 2005 the Trust continued its performance of providing unitholders with solid returns. At year end, the Trust portfolio comprised 47 established Bunnings Warehouse properties, two distribution centres, a Bunnings Warehouse store under construction, and a site upon which a Bunnings Warehouse is likely to be developed in the future.

total land area =

Busnings Warehouse Property Trust
ARSN 088 581 097 Responsible Entity
Bunnings Property Management Limited
ABN 26 082 856 424 Advice oor opolgas
Australian Financial Services Licence
No. 247830

Performance summary	2
Property portfolio	4
2005 highlights	6
Letter from the chairman	8
Manager's report	10
nvestment approach	14
Directors and senior management	16
Corporate governance	18
Financial statements	21
Unitholder information	46

$128$ ha

Performance summary

This year the Trust delivered 5.1 per cent earnings growth, and the value of the portfolio was enhanced by acquisition, development, property upgrades and revaluations. The Trust continues to provide unitholders with a secure income stream and capital growth from its participation in the expansion of the Bunnings Warehouse chain. We are committed to continue to deliver strong performance for unitholders.

total retail area =

Financial performance				04
Total income		[\$m}	50.6	$44.5$ 35.9			29.0
Openating profit-		(\$m)	$36.1$ $32.2$ $26.3$ $21.1$				16.5
Distribution per ordinary unit	interim.	(cents)		$5.79$ $5.51$ $3.55$		4.80	$4.50<$
	final.	(centa).				6.17 $5.87$ 5.35 4.97 $$	4.68.
	total		_Lesnts1_____
Tax advantaged component		$15.3 -$		$25.20$ $26.83$		$30.15 - 34.68$	40.86.
Total assets		[5m]	627.2	675.3	-471.6	348.7	288.0
Borrowings		i\$m)	166.9	355.2	149.3	80.7	92.7
Unitholders' equity		15m	434.6	395.3	302.6	255.1	185.9
Gearing (debt to total assets)		${S_i}$	26.6	27.0	31.7	23.1	32.2
Number of units on issue		im)	301	295.	266-	232	182
Number of unitholders			12,474	11,544	10,496	9,988	9,292
Net tangible asset backing per unit __		151	1.44.	1.34	1.14	1.10	1.02
Unit price at 30 June.		151.	$1.91 -$	1.57	$.3.53$	1.28.	.1.15
Management expense ratio (annualised)		1%3	0.67	0.68	0.65	0.69	0.72

$\sum$

Distribution

BWP closing unit price

للتنبيذ

$\text{Inmid} \text{ \textit{area} } \text{,} \dots,$

BWP total return

BWP TOTAL RETURN
– S&P/ASX 200 PROPERTY TRUST ACCUMULATION INDEX

Property portfolio

In 2005 the Trust continued its long term strategy of acquiring quality properties suitable for a Bunnings Warehouse. At year end, the Trust owned 47 established Bunnings Warehouse properties and two distribution centres, had a Bunnings Warehouse store under construction, and a site upon which a Bunnings Warehouse is likely to be developed in the future.

total properties =

PROPERTY	LAND AREA	TOTAL. RETAIL AREA	ANNUAL RENTAL
As at 36 June 2005	协动	(sq.m)	[Sapa]
Western Australia
Albany	2.0	13,843	502
Bałcatta	4.3	24.932	1.337
Bibra Lake	3.2	17,324	1,073
Geraldton	3.3 ₁	16.337	737
Joondalup	2.5	33.358	928
Mandurah	2.5	12,062	783
Midland	2.4	34.437	964
Mindarie	$3.3 -$	34.632	974
Reckingham.			.956
Total	26.6	143.884	8,232

Australian Capital Territory

Fyshwick.	18	6.400	947
Tuggeranong _________
Total	4.6	18.341	-2.064

PROPERTY	LAND AREA.	TOTAL RETAR. AREA	ANNUAL RENTAL
As at 30 June 2005	tha)	[sq.mi]	iSpani
Victoria
Altona	2.4	9.254	887
Bayswater	4.9	15.193	1.376
Broadmeadows	$1.7^{\circ}$	10,435	880
Croydon	2.5	10.146	892
Dandenong	$2.7^{\circ}$	12.390	1,010
Epping	3.1	12,078	940
Fountain Gate	3.2	12.549	1,119
Frankston	3.8	13.795	1.647
Hoppers Crossing	27	11,370	995
Maribyrnong ⁱ	3.4	N/A	N/A
Mentone	2.5	11.814	1.015
Mornington	4.1	33.183	1,200
Northland	3.3 ₁	9.558	1,056
Nunawading	$3.3 -$	33,857	1.683
Oakleich South	5.4	15.157	1.563
Sandown	3.1	12,880	835
Scoresby	3.4	31.938	1.025
Sunshine	2.0	10,664	754
Vermont South!.	83.	in na na na na na na na na na na na na na
Total	62.8	205,361	18,877

PROPERTY	LAND AREA	TOTAL 営行登録 AREA	ANNUAL RENTAL
As at 38 June 2005	Bai	Isa.mi	[Sapa]
South Australia
Mile Port	$3.3 -$	- 85,321	- 1,278
Noartunga - Andrew Andrew American (		2.7
Total	6.0	26.966	2,098
New South Wales
Artaemon	0.7	5.945	1.23)
Betrose	$2.5 -$	10,228	1.515
Coffs Harbour	2.5.	31.905	663
Lismore	2.3	9,942	680
Maitland	33	33.034	966
Minchinbury	33	12,048	1.286
Port Macquarie	2.0	8,801	697
Thornleigh	3.2	5.301	1,000
Wallong ang memberikan pa	2.7.	.12.559 -	1.974.
Total	19.9	89.763	9.112

Grand Total	148.4	594.388	50.435
Total	28.5	110.073	10,052
Underwood		2.9
Southport	3.6	12,431	1.330
Rockles	3.2	12.536	-1,298
Morayfield	2.7	30.583	-950
Hervey Bav	3.5	11,070	846
Hemmant Distribution Centre	35	11.2503	3.201
Cannon Hill Distribution Centre	0.7	-4,181°	323
Cannon Hill	2.8	12,676	1.154
Cairns	2.4	30.603	962
Burleigh Heads	3.3	12,522	3,141
Queensland ²
As at 30 June 2005	thai	[sq.mi	iSpani
PROPERTY	LAND AREA	TOTAL. RETAR. AREA	ANNUAL RENTAL

$^{\circ}$ development pites $^{\circ}$

: Queenstand land tax is payable from rent received
: gross lettable area

2005 highlights

5.1 per cent growth in full year distribution Hardwarehouse to 11.96 cents per unit

Acquisition of an ex property from a Wesfarmers subsidiary

Completion of one Bunnings Warehouse store, and four property upgrades

14.8 per cent average rental uplift from the market rent review of seven properties

30.9 per cent average increase over book value in the market valuation of 11 properties independently revalued during the year

Increase in net tangible asset backing per unit from $$1.34$ to $$1.44$

Letter from the chairman

solid growth in earnings
for unitholders

W H Cairns $\epsilon$ HARMAN Buanings Property Mapagement Limited

Dear unitholder

On behalf of the board. I am pleased to present the 2005 Annual Report of the Bunnings Warehouse Property Trust.

The past year was marked by acquisition, development, property upgrades, rental growth and property. revaluations, and solid growth inearnings for unitholders. All these activities either resulted in, or are considered likely to result in, income. growth and capital appreciation.

As a result of the activity during the year, at year end the Trust portfolio had an estimated market value of \$620 million, a significant increase on the \$170 million portfolio at the time of fisting in 1998. The value of the Trust's portfolio has been enhanced, as has its geographic diversification, and the portfolio has an average (ease expiry profile of 9.9 years.

Rental growth was achieved from the Trust's portfolio as a result of programmed rental escalation and seven market rent reviews.

During the year a further 11 properties. in the Trust's portfolio were revalued by independent valuers. These revaluations resulted in the market value of those. properties exceeding their book value. by 30.9 per cent. The revaluations contributed largely to an increase in the net tangible asset backing per unit, which at 30 June 2005 was \$1.44 per unit Bast year \$1.34 per unit).

The ongoing rollout of the hardware. business of Bunnings Pty Ltd is expected to provide the Trust with investment. opportunities.

The Trust will also continue to actively. pursue the purchase of properties leased by Bunnings Pty Ltd from third party owners which meet the Trust's investment criteria.

The board wishes to record its appreciation of the valuable contribution. made by management fhroughout the year and flencourage you to read. the Manager's report which includes. details of the Trust's performance and comments on prospects.

I am also pleased to welcome Mr Andrew Ross to the management team as Portfolio Manager. Andrew has had wide experience in property and funds management work.

I would also like to record the valuable. contribution made by Mr Robert McCuaig, a director of Bunnings Property Management Limited since the establishment of the Trust in 1998. Upon his retirement in September 2004. Robert was replaced by Mr John Austin, whose experience in the property and funds management industries is a greatasset to the responsible entity.

A meeting of unitholders has been scheduled for 14 December 2005 at the Hyatt Regency Perth at 10.30am. At the meeting, unitholders will hear an update of Trust activities and performance as well as consider a number of minor changes to the Trust. Constitution considered by the board as: being beneficial for unitholders.

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

Yours sincerely

W H Cairns CHARNAN Buonings Property Management Limited

continued growth

It has been another solid performance by the Trust this year, and there are indications of continued growth in 2005/06.

Financial results

The Trust reported an operating profit of \$36.1 million for the year, which . represents an increase of 11.8 per centon the profit of \$32.2 million earned last year...

This profit was earned on revenue of \$50.6 million, up by 13.8 per cent from \$44.5 million last year due to additional income received from new properties, property upgrades, programmed rental escalations, and seven market rentreviews.

Total assets of the Trust at year end were \$627.2 million, up by \$51.9 million. on last year,

Final distribution

A final distribution of 6.17 cents per unit has been declared. The final distribution will be made on 24 August 2005 to $\sim$ unitholders on the Trust's register as at 5pm on 30 June 2005.

This lifts the total distribution for the 2004/05 year to 11.96 cents per unit, a 5.1 per cent increase on last year's distribution of 11,38 cents per unit.

The tax advantaged component for the 2004/05 distribution is 25.20 per cent.

The distribution reinvestment planremains suspended until further notice.

Market performance

During the financial year, units in the Trust traded within a range of \$1.55 to \$1.99. Based on the closing price as at 30 June 2005 of \$1.91, the Trustibadia market capitalisation of \$575.7 million.

In the 2004/05 financial year, the Trust provided a total return of 29.3 per cent, compared with the ASX 200 Property. frust Accumulation Index return of 18.1 per cent. The Trust, which has provided an average total return of 23.1 per cent per annum over the last five years, continues to provide good returns to unitholders.

Andrew Hopkins BENERAL MANAGER Burnings Property Masagement Limited

Market rent reviews

During the year, seven market rentreviews were completed, which resulted in an average 14.8 per cent uplift in the passing rent of the properties. The market reviews are in accordance. with Trust leases which call for reviews on the fifth anniversary of the lease corgraencement date... The rental review on the property at Mile End, in South Australia was negotiated with the tenant, Bunnings Pty Ltd, and the result was consistent with the maximum rental uplift "Some permissible under the terms of the lease. The remaining six market rent reviews completed this year were determined by independent valuers appointed by the Trust and Bunnings Pty Ltd.

A summary of the market rent reviews is tabled right.

Revaluations

During the year, 11 property revaluations were completed. Four of the revaluations, on properties at Coffs Harbour, Dandenong, Geraldton and Henvey Bay, were completed on properties acquired by the Trust in 2001/02. The remaining seven revaluations were completed on properties that underwent market rent reviews during the year.

The revaluations of these properties by independent valuers represent an .1 increase in the book value of 30.9 per. cent, and contributed to an increase in the underlying net tangible asset backing of the Trust's units from \$1.34 per unit at 30 June 2004 to \$1.44 per unit at 30 June 2005. A summary of the revaluations is tabled right.

Gearing

The responsible entity has established a preferred range of 20 to 40 per cent for the Trust's gearing ratio (debt to total issets). 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 2005, the Trust's gearing was 26.6 pericent. Whilst within the Trust's preferred range, this level of gearing is

considered overly conservative given the current circumstances. .
2006 - Paul Carlos Andrew Bander

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 the Trust's debt related commitments.

At 30 June 2005, 100 per cent of the Trust's interest bearing debt was hedged

at a weighted average rate excluding margins of 5.73 per cent, and the... weighted average term to maturity of the hedged debt was 4.1 years.

Funding

The Trust currently has a \$100 million debt facility with AN2 Banking Group Limited, a \$100 million debt facility. with National Australia Bank Limited, and a \$50 million debt facility with Westpac Banking Corporation.

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

Market rent reviews completed during 2004/05

Total 414.8% 5,939,240 4,815,879 414.8%
`Noariynga.{SA}______
Mornington (ViC) .		$\Box$ 1,021,639 $\Box$ 1,200,000 $\Box$	W. +17.5% (W.W.13 Dec 04
Morayfield (QLD)	$-873,076$	i 950.000.	1. Co., 48.8%, 1. 22 Mar 05
$\setminus$ Mile End [SA] $\geq$ $\geq$ $\geq$ .	- 1,219,628 ·		;
: Hoppers Crossing (VIC).	$-810.070$ .	$-995,000$	- 『『 Ni +22.8% 『 Nine 22 Mar 85
∐Bibra Lake (WA) …∙			1857,992(1)、1,071,000(1)、(+24.8%(、) -2 Nov 04
"Albany (WA) =		$-476.347 + 11.75.501.720 +$	11+5.3% .
	.lä.sai	$\begin{picture}(20,10) \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,0){\line(1,0){10}} \put(0,$
" property (1111-1111) [11] [11] [11] - Passing [11] J. Market [11] J. [1] [12] [11] [11] [12] [12] [	RENT	トー・コーー・救援の組織	ÐAYE

Revaluations completed during 2004/05

Total		124.250 29.256
'Noarlunga (SA).	18 200	3.253	8.00%
- Mornington (ViC)	15.500	4.880	7.75%
Morayfield (QLD).	40.900	2,100	. 8,25%.
[Mile End [SA]	18,000	$-5,000.$	. 7.50% :
Hoppers Crossing (VIC).	11,800	-3.000.	- 8.50% -
Hervey Bay (QLD) -	-10,000	- 641	$\sim 8.50\%$ .
* Geraldton (WA) -	18,650	1,828	18.75%
- Dandenong (VIC) -	$\sim$ 13,600	2,085	-7.75%"
Coffs Harbour (NSW)	7,800	$-1,293$	18.25%.
Bibra Lake (WA)	-42,700	- 4.051	18.50% :
"Albany (WA)	5.700	3,205	$8.75%$ .
	Cana
	VALUE
UPROPERTY LESSASSES	- CURRENT MARKET	REVALUATION R. BNOREMENT	CAPITALISATION <rate .<="" td="">

Property acquisition, development, and upgrades

During the financial year, the Trust acquired one established Burnings Warehouse, completed the development of a new Bunnings Warehouse and completed upgrades on four Trust. properties.

The acquisition was of an established Bunnings Warehouse property, which was formerly a BBC Hardwarehouse, at Thornleigh, in New South Wales. The Trust now owns seven ex BBC Hardwarehouse properties, with six being purchased from subsidiaries of Wesfarmers Limited and the other from a third party.

Development of a Bunnings Warehouse store, was completed on a site owned by the Trust at Maitland in the Hunter Valley region of New South Wales, Upgrades were completed on Trust properties . focated at Fountain Gate and Nunawading in Victoria, Mile End in South Australia, and Tuggeranong in the Australian Capital Territory. Capital expenditure on acquisitions,

developments and upgrades during the year was \$20.8 million.

The property activity has enhanced the .
value and geographic diversification of the Trust's portfolio. At year end, the average lease expiry profile of the Trust's portfolio was 9,9 years.

A summary of property activities during the financial year is presented below.

THORNLEIGH ** NEW SOUTH WALES

Developed by BBC Hardware Properties (NSW) Pty Ltd in 1993, the property was acquired by the Trust in September 2004 for \$13.3 million.

Located approximately 18 kilometres north west of the Sydney CBD, on-Pennant Hills Road, a maior link between the Pacific Highway and M2 [14] Hills Motorway, the property is situated in a retail and commercial precinct, which is surrounded by a predominantly residential area.

Bunnings Pty Ltd leases the property, on terms similar to those of other leases in the Trust's portfolio, at an annual, rental of \$1,000,000,

MAITLAND NEW SOUTH WALES

Completed in October 2004 for a total outlay of \$11.1 million, the property is located at Maitland, a regional city in the Hunter Valley region, approximately 32 kilometres west of Newcastle and 200 kilometres north of Sydney. The site is prominently located on the New England Highway, approximately three kilometres west of the main business district.

The property, developed on a 3.4 hectare site acquired by the Trust in August -2003, comprises a Bunnings Warehouse, with a total retail area of approximately 13,000 square metres.

The property was leased by Bunnings. Pty Ltd at a commencement annual rental of \$961,650, on terms, similar to those of other leases in the Trust's portfolio, except that market rent, reviews will be underpinned by a rental of \$900,000, rather than the. commencement rent.

MI F END SOUTH AUSTRALIA

In December 2004, a \$0.3 million ppgrade of the Mile End property in South Australia was completed. The improvements were made to facilitate direct access to the property from the new Western Bypass, and resulted in incremental annual rent of \$26,159.

TUGGERANONG AUSTRALIAN CAPITAL TERRITORY

In December 2004, a \$0.2 million upgrade of the Tuggeranong property in the Australian Capital Territory was completed. Improvements to the premises resulted in an increase inthe total retail area and incremental. annual rent of \$22,050.

FOUNTAIN GATE VICTORIA.

In December 2004, a \$1.6 million upgrade of the Fountain Gate property in . Victoria was completed, improvements, to the premises included an expansion. of the main store, timber drive-throughand nursery, and resulted in incremental. annual rent of \$129,690.

NUNAWADING VICTORIA

In February 2005, a \$3.1 million upgrade of the Nunawading property in Victoria was completed. Improvements to the premises included an expansion of the main store, timber-drive-through and nursery, and resulted in incremental ampost rent of \$248,000.

outlook

Current expectations are for continued growth in the 2005/06 financial year.

In July 2005 the Trust acquired an established Bunnings Warehouse at Mortey in Western Australia for \$11.1 million. The 9,800 square metre premises was developed by BBC Hardware Limited, a subsidiary of Wesfarmers Limited, in 1999 and is situated on a 1.8 hectare site. Bunnings Pty Ltd leases the property at an annual rental of \$860,000 on terms similar to those of leases in the Trust's portfolio.

المحججين وتتباه

Ongoing growth opportunities for the Trust are expected from the rollout of the Bunnings Warehouse chain, and value adding upgrades to properties already in the Trust's portfolio.

The operating revenue of Bunnings Pty Ltd has continued to increase strongly through growth in sales from existing stores and sales from new stores. Sales from Bunnings Warehouse stores are the major source of operating revenue for Bunnings. For the 2004/05 financial year, Bunnings reported revenue of \$4.07 billion.

Your directors are budgeting for continued growth in revenue and earnings in the 2005/06 financial year as a result of properties being added to the Trust's portfolio, development activities and property upgrades, and rental growth from the portfolio.

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

$4 - A - A$

Andrew Hopkins GENERAL MANAGER Bunnings Property Management Limded

Investment approach

The Trust is focused on warehouse retailing properties and, in particular, Bunnings Warehouse properties tenanted by Bunnings Pty Ltd, a wholly owned subsidiary of Wesfarmers Limited. The responsible entity has established the following objectives and strategies for the Trust:

objectives

$\emptyset$ Provide unitholders with a secure, growing income stream and capital growth
Protect unitholders' interests
$\boxtimes$ Add quality properties to the portfolio
$\mathbb{Z}$ Distribute all net income each financial year

strategies

$\sqrt{2}$ Acquiring properties with long term leases to substantial tenants
$\sqrt{2}$ Ensuring that properties are well located and the portfolio is geographically diversified
7 Maintaining a prudent interest rate hedging position
$\oslash$ Operating within an appropriate compliance plan

The tenant

Burinings Pty Ltd is a hardware retailing business that operates a total of 131 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 2005 Bunnings achieved:

1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 19

revenue of \$4.07 billion (up 5.8 per cent)
· earnings (before goodwill amortisation) of \$417.9 million (up 8.6 per cent).

The sites

· visible and accessible from a major 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
· indicative size 12,500 square metres total retail area

Directors and senior management

W H Cairns Dip Apr, FAPI (Val&Econ)

Chairman, Non-executive/Independent Age.75 $\ldots$ . $\ldots$ للتنصيب الطار

Joined the board in 1998. Bill refired from the AMP Society in 1990 where he was. employed for 39 years. At the time of hisretirement, Bill held the position of General Manager AMP Investments where he was responsible for managing the group's global investments. Bilt is a Fellow of The Australian Property Institute and a Life Fellow of the Property Council of Australia. He is also a director of a number of private companies.

During the past three years he has served as a director of the following fisted companies:

· Avatar Industries Limited (1998 to date)
· General Property Trust Management Limited (1998 - April 2003)
· Foodland Associated Ltd [1994 - December 2002].

J A Austin Assoc Dip Val, FAPI (Val&Econ)

Director, Non-executive/Independent Age 59 $\langle \ldots \rangle$ $\mathbb{Z}^2 \times \mathbb{Z}$

Joined the board in 2004. John has been actively involved in professional property investment markets for over 34 years, during which he has been a proprietor of Jones Lang Wootton and an advisor ininstitutional property markets. He was the Managing Director of GRW Property Etd, the sponsor and manager of the National Industrial Property Trust that listed in 1993. and was on a number of industry boards. and committees. Currently he is Managing. Director of Ringmer Pacific, a privateproperty investment company. John is a non-executive director of the MREEF series of unlisted private property funds, managed by Macquarie Bank, and is a member of the Property Advisory Group for Record Realty, a fisted property trust.

P J Mansell B.Comm, LEB, H.Dip Tax

Director, Non-executive/Independent Age 58 $\mathcal{L}$

Joined the board in 1998. Peter practised as a commercial fawyer for nearly 34 years. untă he retired as a partner in Preehilts in-Pebruary 2004. Over the years as a solicitor he has advised extensively on a number of wide-ranging corporate transactions. He isthe immediate past President of the Council of the Australian Institute of Company. Directors, Western Australian Division, having sation the national board of the Australian Institute of Company Directors Ltd in 2002 and 2003. He is also a director of a number of unlisted companies.

During the past three years he has served as a director of the following fisted companies:

· Zinifex Ltd (Chairman) (March 2004 to date)
· JDV Ltd (Chairman) (December 2001 to date)
· West Australian Newspapers Floldings Ltd (September 2001 to date)
· Foodland Associated Ltd (October 2003 to date)
· Tethyan Copper Company Etd (February 2005 to date)

G T Titbrook B.Sc, MBA Director, Non-executive/Non-independent

Age 54 $\mathbb{R}^{n}$ $\sim$ $\ldots$ . . . .

Joined the board in 2001. Gene hotds 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 Business School in 1998, Genejoined Wesfarmers in 1985 and has held a number of commercial positions in its Business Development Department and at Wesfarmers Energy. He previously worked in corporate finance and in systems. engineering. Gene was Executive Director Business Development of Wesfarmers Limited until 13 July 2005, when he was appointed Finance Director. He is a director of a number of Wesfarmers group subsidiaries, as well as a director of Gresham Partners Roldinos Limited and Australian Railroad Group Pty Ltd.

During the past three years he has served as a director of the following listed company:

· Wesfarmers Limited (April 2002 to date)

A J Hopkins B.E., MBA General Manager Age. 43 $\mathcal{L} = \mathcal{L}$ $\cdots$

Manager since April 2002. Andrew has worked on the evaluation of a variety of commercial opportunities for the Wesfarmers group of companies since 1994. Prior to joining Westarmers, Andrew worked in the building and construction industry in Australia and the United Kingdom. He is a director of the Clontarf Poundation.

Corporate governance

Set out below is a summary of the maincorporate governance practices of the responsible entity. These practices were in effect during the whole of the financial year ended 30 June 2005, unless stated otherwise

The ASX Corporate Governance Council's Principles of Good Corporate Governance and Best Practice Recommendations (ASX Principles), in conjunction with the ASX Listing Rules, require centain companies and trusts to disclose in their annual reports the extent to which their corporate governance practices follow the ASX Principles.

The responsible entity complies with the majority of the ASX Principles. Where it does not, it is fargely in respect of obligations to disclose material or matters where the nature of regulation. of listed trusts or of the Trust's business is such that the board of the responsible. entity considers that there has been nodefriment to the unitholders of the Trust from non-compliance. Areas of noncompliance and the reasons for noncompliance are noted in this statement.

Relationship between the responsible entity and Wesfarmers Limited

The responsible entity is a wholly owned subsidiary of Wesfarmers Limited (Wesfarmers). During the year too percent of the property income of the Trust was received from Bunnings Pty Ltd, also a wholly owned subsidiary of Wesfarmers. The Trust also purchased property from Wesfarmers, and utilised Bunnings Pty Ltd as project manager on a number of property developments. Wesfarmers is a substantial unitholder in the Trust, and details of Wesfarmers unitholding can be found on page 46 of this report.

Roles of the board and management

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

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

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

· adopting annual operating budgets for the Trust and monitoring progress. against budgets:
· monitoring and overseeing the Trust's financial position:
· determining that satisfactory arrangements are in place for auditing the Trust's tinancial affairs;
· ensuring that appropriate 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 dufies and obligations as imposed by the Law.

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

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

Board structure

The board is currently comprised of four non-executive directors including the Chairman. Details of directors in office at the date of this report, including their status as executive, non-executive or independent directors are set out on pages 16 and 17 of this report.

Director independence

A majority of directors of the responsible entity are independent.

The board's assessment of the independence of each of the directors is. included as part of the directors' details. on pages tó and 17 of this report.

The board considers that a director is independent if the director is a nonexecutive director and:

· is not a substantial unitholder of the frust or an efficer of, or otherwise. associated directly with, a substantial unitholder of the Trust:

. has not, within the last three years, been employed in an executive. capacity by the responsible entity or been employed or engaged as a director of a related body corporate. of the responsible entity;
. has not, within the last three years, been a principal of a professional adviser to the frust, the responsible entity or a related body corporate of the responsible entity where the adviser's revenues derived from these entities. exceeds five per cent of the adviser's total revenues from all sources;
. is not an officer of or otherwise. associated directly or indirectly with a material supplier, where total revenues derived by that supplier from the Trust, the responsible entity. or a related body corporate of the responsible entity exceeds five per cent of that supplier's total revenues;
. has no material contractual relationship with the Trust, the responsible entity or a related body. corporate of the responsible entity. other than as a director of the responsible entity, where "material" contractual refationship" is a relationship which could, or could be reasonably perceived to, materially interfere with the director's ability to act in the best interests of the Trust:
. has not served on the board of the responsible entity for a period which could, or could reasonably be perceived to, materially interfere with the director's ability to act inthe best inferests of the Trust; and
· is free from any interest and any business or other relationship which could, or could reasonably beperceived to, materially interfere with the director's ability to act in the best interests of the Trust.

Selection and appointment of directors

The responsible enlity has recognised the importance of having a balanced. board comprised of directors with anappropriate range of backgrounds, skiffs and experience. In considering potential candidates for appointment to the board, the responsible entity considers the foBowing factors:

. the qualifications, expertise and experience of the person which are relevant to the rote of director of the responsible entity:
. the extent to which the qualifications, expentise and experience of the person. complement the qualifications, expertiseand experience of incumbent directors;
. the professional and personal reputation of the person; and
· any person nominated as an executive director must be of sufficient stature. and security of employment to express. independent views on any matter.

All non-executive directors are expected to voluntarily review their membership. of the board from time-to-time taking into account length of service, age, qualifications and expertise refevant to the responsible entity's then current policy and programme, together with the other criteria considered desirable for composition of a balanced board and the overall interests of the responsible entity and the Trust.

The board considers that the establishment of a nominations. committee is unnecessary given that:

. the board consists of only four directors and is therefore not of a size sufficient to justify the formation of a beard sub-committee for this task;
. the board's adoption of the independence standards set out above, combined with the factors. considered by the board in assessing potential candidates for director of the responsible entity, ensure that the nomination and selection process for directors is transparent and that appointees to the board have the requisite qualifications, experience and expertise in the market.

Given that there is not a nominations. committee, the responsible entity does. not comply with Recommendation 2.3 of the ASX Principles.

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.

Trading in units

Directors may only buy or sell the Trust's units after reference to the secretary of the responsible entity and in accordance. with the responsible entity's Unit Trading Policy, a copy of which is available on the Trust's website.

Financial reporting

General Manager declaration

Consistent with ASX Principle 4, the Trust's financial report preparation and approval process for the financial year. ended 30 June 2005, involved the General Manager of the responsible entity providing a written statement to the board that, to the best of his knowledge and belief, the Trust's financial report presents a true and fair view, in all material respects, of the Trust's linancial condition and operating results and is in accordance with applicable accounting standards.

International Financial Reporting Standards

In July 2002, the Financial Reporting Council announced that Australia would adopt International Financial Reporting Standards (IFRS). Following this announcement the responsible entity. was provided access to a project team. established by Wesfarmers Limited to facilitate the transition to IFRS, and the likely impacts of adoption are disclosed in the notes to this year's financial statements. The Trust will be required to finst report under IFRS in its financial. reports for the half-year ending 31 December 2005 and for the full-year ending 30 June 2006.

Audit and risk committee

The compliance plan entrenches processes for reporting and audit purposes.

The board has a formally constituted Audit and Risk Committee. A copy of the Audit and Risk Committee Charter is available on the Trust's website.

The audit committee consists of the entire board and during the year the committee was chaired by Mr R W McCuaig up until his resignation on 9 September

2005, and thereafter by Mr Peter Manseff, each being independent directors of the responsible entity. During the year the committee held two meetings attended by all directors.

Risk control and compliance

As a registered managed investment. scheme, the responsible entity has a compliance plan that has been lodged. with the Australian Securities and Investments Commission (AS(C). Operation of the Trust in accordance with the comptiance plan ensures that the rights and interests of unitholders are protected and that business risks. are identified and properly managed. Copies of the compliance plan are available through ASIC.

In particular, the compliance planestablishes processes for:

· identifying and reporting breaches or non-compliance with the Corporations. Act, the compliance plan, the constitution of the Trust and the responsible entity's Australian Financial Services Licence:
. complying with the ASX Listing Rules:
. protecting Trust property:
· ensuring proper acquisition and disposal practices are followed inregard to Trust property:
. ensuring the timety collection of Trust income:
· completing regular valuations of Trust property:
. the maintenance of financial and other records to facilitate preparation of audited/reviewed financial reports;
· ensuring proper and timely distributions to unitholders;
. complying with the Trust's investment objectives:
· managing investment risk;
· managing potential conflicts of interest among the various related. parties of the Trust:
· holding and maintaining adequate insurance cover:
. ensuring that berrowing eccurs only. within permitted limits and ensuring.

that borrowing 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 2005. No material breaches of the plan were identified as a result of this audit.

The Audit and Risk Committee is also responsible for assisting the board inoverseeing the Trust's risk management systems. The committee is responsible for reviewing the effectiveness of those systems and recommending improvements to them.

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

· guidelines and fimits for the approval of capital and operating expenditure;
· policies and procedures for the management of linancial 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, the board does not consider it is currently necessary to form a separate compliance committee in addition to the board of the responsible entity.

In accordance with ASX Principle 2, the General Manager has provided the board with a written statement that:

. the statement given with respect to the integrity of the financial statements (referred to under the heading "Financial Reporting") was founded on a sound system of risk management and internal compliance. and control which implements the poticies adopted by the board of the responsible entity; and
. the Trust's risk management and internal compliance and control system was operating efficiently and effectively in all material respects.

Review of board and committee performance

In June 2006 the berformance of the board and Audit and Risk Committee was evaluated through feedback obtained from the completion of qualitative and quantitative surveys by the directors.

Remuneration policies

The right of the responsible entity to be remunerated and indemnified by the Trust is set out in the constitution of the Trust and summarised in Note 2 to the Financial Statements in this report. The constitution is available from ASIC and is available to unitholders on request.

Remuneration of directors and executives

Remuneration expenses of the responsible entity are not borne by the Trust. Directors are remunerated by the responsible entity, and management services are provided to the responsible entity by Wesfarmers Limited.

For the financial year ended 30 June 2005, each director was entitled to a director's fee. Directors do not receive option or bonus payments, nor do theyreceive retirement benefits in connection. with their directorships other than statutory superannuation. There are no equity incentive schemes in relation. to the Trust.

Details of the remuneration of directors are set out in Note 19 of the financial statements.

Remuneration committee

The board considers that the establishment of a remuneration committee is not necessary given that:

. the board consists of only four directors and is therefore not of a size sufficient to justify the formation of a separate remuneration committee;
· the responsible entity's fee is prescribed in the constitution of the Trust and any change to that fee would require the approval of unitholders; and
· as directors and officers of the responsible entity are not remunerated. by the Trust, unitholders have no direct exposure to those remuneration expenses.

Given that there is not a remuneration. committee, the responsible entity does not comply with Recommendation 9.2. of the ASX Principles.

Continuous disclosure and communications with unitholders

The responsible entity is aware of its continuous disclosure obtigations and has systems in place to ensure timely disclosure of price sensitive information. to the market. All announcements made to the market, including informationprovided to analysts, are posted to the Trust's website.

To enhance communication with unitholders, important informationincluding, details of the Trust's properties, financial performance, distribution history. and the Trust's comptaints handling. procedure can be found on the website. The website is periodically reviewed to ensure the accuracy and relevance of the information it contains.

Ethics and conduct

The responsible entity has adopted a basic code of conduct which sets out minimum acceptable standards of behaviour to ensure that dealings are conducted with integrity and honesty, and that the highest standards of corporate behaviour and accountability. are maintained

In addition, the board has adopted the principals outlined in the bookle! "Corporate Practices and Conduct --Third Edition" - a guide produced by a working group comprising representatives. of a number of Australian industry and professional organisations.

Statements of financial performance and distribution	22
Statement of financial position	23
Statement of cash flows	24
Notes to and forming part of the financial statements	25
Directors' report	41
Directors' declaration	44
Independent audit report	45
Unitholder information	46
Investor information	$\frac{1}{4}$
Directory	48

$\overline{21}$

financial
statements

Statements of financial performance and distribution

			04
	Note	\$000	5009
Statement of financial performance
Revenue and expenses from ordinary activities.
Rental income		48,863	42,347
Other property income		1,671	1.988.
Interest income		86	139
		50,620	44, 474.
Responsible entity's fees		(3,485)	[2,987]
Auditors' remuneration		139)	- {43}
Interest and borrowing costs		[10, 118]	-{8,366}
Rates and taxes		[464]	1366}
Other operating expenses		[447]	(463)

Net profit attributable to members of Bunnings Warehouse Property Trust Increase in asset revaluation reserve .	2. 13	36,067 29,256	32,249 51,726
Total revenues, expenses and valuation adjustments attributable to unitholders
and recognised directly in unitholders' funds		29,256	51,726
Total changes in equity other than those resulting from transactions with
unitholders as unitholders		65,323	83,975
Statement of distribution.
Net profit attributable to members of Bunnings Warehouse Property Trust.		36,067	32,249
Undistributed income at the beginning of the financial year
Total available for distribution.		36,068	32,256.
Distributions paid and payable		36,052	32,255
Undistributed income at the end of the financial year.		16

Basic and diluted earnings per unit (cents per unit)		12.0	11.4
Distribution per ordinary unit (cents per unit).		11.96	11.38
. The statement of financial performance and distribution should be read in conjunction with the accompanying potes.

Statement of financial position

			04
	Note	Sooo	\$809
Current assets
Cash_assets <<		5,752	5,366
Other _s	8	1,029	$\mathcal{V}!!!!\sim!!\mathcal{U}$
Total current assets		6,781	6,080

Non-current assets
Investment properties		620,435	569,262
Total non-current assets		620,435	569,262
Total assets		627,216	575,342
Current liabilities.
Payables.	11	2,277	3,516
Unearned income.- related party	-19	4,737	3.963
Distribution payable		18,599	17,314
Total current liabilities		25,613	24.793

Non-current liabilities
Payables	11	75
Interest bearing liabilities		166,945	155,220
Total non-current liabilities		167,020	155,220
Total liabilities		192,633	180,013
Net assets		434.583	395,329
Unitholders funds
	12 ₁₂
Contributed equity Asset revaluation reserve.		330,232 104,335	329,249
Undistributed income reserve	9,13 - 34	16	75,079
Total unitholders' funds		434.583	395,329
Net tangible asset backing per unit		\$1.44	\$1.34
The statement of financial pool ion should be read in conjunction with the econopanying potes.

Statement of cash flows

For the year ended 30 $\Delta\mu\approx 2605$
en el segundo

		04
Note	\$000	\$909
Cash flows from operating activities
Rent received	56,670	49,956
Payments to creditors.	(7,547)	${6,302}$
Payments to the responsible entity	[3,398]	[42,864]
Interest received	-86	- 139
Borrowing costs paid	${10,449}$	${8,450}$
Net cash flows from operating activities	35,362	32,479

Cash flows from investing activities.
Payments for purchase of, and additions to, the Trust's property investments	(20, 771)	[51, 135]
Proceeds from sale of property investments		1,500
Net cash flows used in investing activities	[20,771]	(49,635)
Cash flows from financing activities
Proceeds from the issue of units		125,000
Issue costs paid		[186]
Proceeds from interest bearing liabilities.	11,725	39,668
Distributions paid	[25, 930]	(33, 017)
Repayments of non-interest bearing liabilities		[13, 726]
Net cash flows (used in)/from financing activities	(14, 205)	17,739
Net increase in cash held.	386	-583
Cash held at the beginning of the financial year.	5,366	4,783
Cash held at the end of the financial year.	5,752	5,366

an Sa_ra Sa

For the year ended 30 June 2003

Summary of significant accounting policies

.
The financial report is a general purpose financial report made out in accordance with the requirements of the Constitution of 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 based on independent valuations conducted at intervals of not more than three years, $\mathbb{Z}^{\mathbb{Z}}$

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.

(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. [1111-411]

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) Payables

, Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Trust. These liabilities are normally settled on 30 day terms.

fel 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. las 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.

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.

(f) Contributed equity

issued and paid up capital is recognised at the fair value of the consideration received by the Trust.

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 represented in accordance with AASB 1021: Depreciation, and are 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 accroes.

For the year ended 30 Bone 2005

Summary of significant accounting policies (continued)

(i) Property outgoings

Under 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 Pty Ltd except for land tax in relation to properties located in Queenstand where legistation prohibits recovery of land tax from tenants, and at the properties at Bayswater and Thornleigh, where land tax paid by the tenant is calculated on the basis that each of those properties is the only property owned by the Trust. .

(j) Property investments

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.

Investment properties are carried at fair value, 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 capitatised 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 deferred and amortised over the lease period to . which they relate...

Where assets have been revatued, 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 CGI in respect of assets.

[k] Rounding

In accordance with ASIC Class Order 98/100, these reports have been rounded to the nearest thousand dollars. The Trust is an entity to which the Class Order applies.

[1] 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,

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

Imi 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. I

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 items, are included in the determination of the operating profit in equal instalments over the lease term.

(n) Distribution payable

The Constitution of the Trust provides that its Distributable Profit is to be distributed to unitholders at 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 jeach batance date.

(o) Derivative financial instruments

The Trust enters into interest rate swap agreements that are used to convert the variable interest rate of short-term borrowings to medium-term fixed interest rates. The swaps are entered into with the objective of reducing the impact of the volatility in short-term interest rates. Here was a regular management of the

It is the Trust's policy not to recognise interest rate swaps in the financial statements. Net receipts and payments are recognised as an adjustment to interest expense.

For the year ended 30 June 2805

Summary of significant accounting policies (continued)

(p) Capitalisation of interest

Interest charges on funds invested in properties with a substantial development and construction phase are capitalised to the property until such time as construction work is complete.

(q) 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 elergent. The difuted EPU is not materially different from the basic EPU,

2 Responsible entity's fee

The responsible entity, Bunnings Property Management Limited, 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 a 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.

	[ ] ⊢	04


Auditors remuneration
Auditing on review of the financial statements	27,935	25,037
Other services.	11,346	18,243
	39,281	43,260

	\$91	500
Borrowing costs.
Interest expense - other persons/corporations	10,377	8.511
Interest expense capitalised	${259}$	(145)
	10,118	8,366
Distributions paid and payable
5.79 cents (2004: 5.51 cents) per ordinary unit, interim distribution paid	17,453	-14,941
6.17 cents (2004: 5.87 cents) per unit, final distribution provided	18,599	17.314
	36,052	32,255
Earnings per unit
Net earnings used in calculating basic and diluted earnings per unit	36,067	32,249
Basic and diluted earnings per unit	12,0 cents	11.4 cents
Weighted average number of units on issue used in the calculation of basic and
dituted earnings per unit	300,423,182	284.090.785
Cash assets
Cash at bank.	5,752	5,366
Weighted average effective interest rates	4.8%	4.1%

Other - current assets Prepayments	1,029
		714

9 Investment properties (non-current)

(a) Investments
	Acquisition	Valuation	Valuation		Fair value -
Property	date	date	\$009	2005. \$000	2004 \$000

Albany, WA	$-03.11.99$	04.03.05	$-5,700$	5,706	4,500
Alfona, VIC	24.09.98	-01.03.04	10,250	10,259	30,250
Artarmon, NSW	10.02.03	24.10.02	14,100	14,897	- 14,889
Balcatta, WA	24.09.98	31.01.04	,35,500	15,503	$-15,500$ .
Bayswater, VIC.	(11.02.03)	- 16.04.04	18,600	19,282	19,300
Belrose, NSW	10.02.03	$24.10.02$ .	16,900	18,204	38,189
Bibra Lake, WA	29.12.98	$-04.03.05$	12,700	12,703	8,651
Broadmeadows, VIC	24.09.98	30.06.04	-10,700-	10,966	10,700.
Burleigh Heads, QLD.	22.10.98	$-29.10.03$	$-12,350$	12,359.	.12,350.
Cairns, QLD -	10.02.03	24.10.02	10,000	10,448	40,445
Cannon Hill, QLD	24.12.98	23.06.04	12,600	$-12,600$ .	12,600
Cannon Hill Distribution Centre, QLD	$-03.11.99$	.06.10.02	3,500	3,508	13,500
Coffs Harbour, NSW	05.09.01	30.09.04	7,800	7,803	6,509
Croydan, ViC.	24.09.98	30.06.04	10,500	10,567	30,500
Dandenong, VIC.	19.04.02	01.04.05	43,000	13,000	10,915
. Epping, VIC	12.03.99	-30.06.04	11,400	11,408	11,400
Fountain Gate, VIC Frankston, VIC	24.09.98 26.06.01	$-01.03.04$ 30.06.04	12,100 20,000	13,680 20,008	12,100 20,000.
Fyshwick, ACT		24.09.02	10,000
Geraldton, WA	23.12.02 (0.12.01)	141.12.04	$\lesssim 8,650$	10,703 8,652	10,695 6,824
Hemmant, QLD	07.05.03	02.04.03	13,250	13,393	43,393
Hervey Bay, QLD	12.07.02.	30.06.05.	10,000	10,000	19.351
Hoppers Crossing, VIC	11.01.99	30.06.05	11,800	11,800	0.8,80
Jeondalup, WA	24.09.98	$-31.01.04.$	10,800	10,993	10,800.
Lismore, NSW	21.04.04 -	02.07.03	17,800	8,195	8,193
Maitland, NSW	20.08.03	30.07.03	10,800	11,146	-9,566
Mandurah, WA	24.09.98	-31.01.04.	- 9,100-	9,103	9,100
Maribyrnong, ViC	28.06.01	30.06.04	8,000	8,000,	8,000
∙Mentone, VIC-	24.09.98	30.06.04	12,400	12,413	12,400
Midland, WA	06.03.01	31.03.04.	11,900	11,901	-11,900
-Mile End, SA .	22.03.00	30.06.05	18,000.	.18,000	12,700
Minchinbury, NSW	131.12.98	31.12.03	15,750	15,758	-15,750
Mindarie, WA Morayfield, QLD	03.03.00	41.03.03	10,600	10,601	40,600
	22.03.00	30.06.05.	10,900.	10,900	18,800
Mornington, VIC Moarlunga, SA .	.29.12.98 -13.04.99	-28.02.05 30.06.05	45,500 10,200	15,500 10,200	10,700 -6,946-
Northland, VIC +	24.09.98	30.06.04	13,400	13,406	13,400
Nunawading, VIC	24.09.98	-01.03.04	$-18,100$	-21,211	18,100
Dakleigh South, VIC	ຍຽ.ຍ4.ຍາ	30.06.04	19,000	19.004	19,000
Port Macquarie, NSW	15.11.02	22.05.02	7,550	7,641	-7,641
Rockingham, WA	30.06.00	30.06.03	:10,400	10,401	30,400
Rocklea, QLD	23.10.02	28.04.03	33,650	13,995	13,995
Sandown, VIC	24.09.98	$-01.03.04$	9.900	9,909	9,900
Scoresby, VIC	24.09.98	30.06.04	11,800	11,808	.11,800 .
Southpart, QLD Sunshine, VIC	109.11.98 24.09.98	29.10.03 30.06.04	12,350	12,358 8,913	12,350 8,900.
Ťhornleigh, NSW	07.09.04	31.05.04	18,900 13,300	14,112
Tuqqeranong, ACT	01.12.98	31.12.03	12,610	12,864	12,611
Underwood, QLD	22.10.98	29.10.03	11,300	11,308	11,300
Vermont South, VIC	14.05.03	30.12.02	10,000	10,631	10,630
Wollangang, NSW	10.02.03	28.10.02	11,600	12,735	12,619
			607,010	620,435	569,262

$28$

For the year ended 30 Aure 2005

9. Investment properties (non-current) (continued)

(a) Investments (continued)

Where the fair value of a property exceeds the valuation, it is generally 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 the difference. It is a construction of ing p a a a agus is.

Valuations of the properties at Fountain Gate, Nunawading, and Tuggeranong were completed prior to the completion of property upgrades during the 2005 financial year.

(b) Cost of investments

			Capital improvements		Fair value
	Purchase	Acquisition	since	Revaluation	зо Јипе
Property	price	costs	acquisition	increment	2005
	\$000	SOOO	5090	\$000	Sooo
Albany, WA	4,100	206		1,400	Province 5,706.
Altona, VIC -	6,800	391		3,068	10,259
Ártarmon, NSW	14,033	864.			14,897
Balcatta, WA	11,200.	555		3,745	15,503
Bayswater, VIC	7,335	689.	11,338		19,282
Belrose, NSW	17,150	1,054.			18,204
Bibra Lake, WA	1,899.	- 95.	6,350	4,359	12,703
Broadmeadows, VIC	7,200	431.	240.	3,095.	10,966.
Burleigh Heads, QLD.	9.700	196.		2,463.	12,359
Cairns, QLD -	10,000	.448 -			10,448
Cannon Hill, QLD ト	2,500.	·176 ·	6,350	3,574	12,600
Cannon Hill Distribution
Centre, QLD --	3,300.	134		274	3,508
Coffs.Harbour, NSW	1,900	112	4,500	1,291	7,803
Croydan, ViC.	7,800.	496.		2,263	10,567
Dandenong, VIC-	4,000.	255	6,660	2,085	13,000
Epping, VIC - ~-	~7,800.	463.		3,145	11,408
Fountain Gale, VIC	8,300	505.	4,573	3,302	13,680
Frankston, VIC	7,300	302	9,400.	3,006	20,008
Fyshwick, ACT	30,00B	703.			10,703
Geraldton, WA	1,250	351	5,225	1,826	8,652
Hemmant, QLD	3,000	143	10,250.		13,393
Hervey Bay, QLD	2,778.	.152	6,425	645	10,000
Hoppers Crossing, VIC	2,075	134	5,925	3,666	11,800
Joondalup, WA	18,100	592		2,301	10,993
Lismore, NSW	7,750	445			-8,195
Maitland, NSW	. 898	450	9,798		11,146
Mandurah, WA	3,050.	159	4,046	1,848	9,103
Maribyrnong, VIC	-7,100	462		438	8,000
Mentone, VIC	9,400	538		2,475	12,413
Midland, WA	4,600	256	4,930	-2,116	11,901
Mile End, SA.,	11,250	625	259.	5,866	18,000
Minchinbury, NSW	9,200	504.		6,054	15,758
Mindarie, WA	4,184	207	5,598	-612	10,601
Morayfield, QLD.	8,000.	330		2,570.	10,900
Mornington, VIC,	3,400	204	4,481	5,415.	15,500
Noartunga, SA	2,304	124.	3.750	4,022	10,200
Northland, VIC	8,600.	487		4,319.	13,406

9 Investment properties (non-current) (continued)

(b) Cost of investments (continued)

		capital improvements		Fair value
Purchase Property price	Acquisition 21203	since acquisition	Revaluation increment	30 June 2005
\$000	\$000	\$000	\$000	SGDO.
Nunawading, ViC- \$3,700	785	3,100	3,626.	$-21,211$
Oakleigh South, VIC 6,650.	374.	9,143	2,837	19,004
Port Macquarie, NSW 2,100	141.	5,400		7,641
Rockingham, WA 3,320	166	5,830	1,085	10,401
Rocklea, QLD -6,225	295.	7.475		13,995
Sandown, ViC. .7.800-	446-		1,663	9,909
Scoresby, VIC 8,300	473		3,035	11,808
Southpart, QLD 2,800.	-189	6,600	2,769.	12,358
Sunshine, VIC 7,008.	407		3,506	8,913
Thornleigh, NSW 13,333.	779.			14,112
:Tuqqeranong, ACT 7,900	431	245	4,288	12,864.
Underwood, QLD 3,000	378.	5,850	·2,280	11,308,
Vermont South, VIC 40,000	-631.			10,631
Wollangang, NSW 12,000	628	87		12,715
343,184	20,080	152,836	104,335	620,435

c) Valuers
Property	Valuation date	Valuer
Albany, WA	04.03.05	उ Fenner, AAPI and S Nutfall, AAPI ASIA – C.B Richard Ellis
Altona, VIC -	01.03.04	D Gowing, FAPI - C B Richard Ettis ~
Artarmon, NSW	$-24.10.02$	J.E Burdekin, FAPI and B.R.Stewart, AARI – Jones Lang LaSalle
Balcatta, WA	31.01.04	5 Nuttall, AAPI ASIA - C B Richard Ellis.
Bayswater, VIC.	36.04.04.	.B F Sweeney, AAPI – Jones Lang LaSalle
Belrose, NSW	$24.30.02 \cdot$	J E Burdekin, FAPI and B.R Stewart, AAPI – Jones Lang LaSalle
Bibra Lake, WA	04.03.05	J Fenner, AAPI and S Nuttall, AAPI ASIA - C B Richard Ellis -
Broadmeadows, VIC	30.06.04	D Gowing, FAPI - C.B. Richard Ellis
Burleigh Head, QLD	29.10.03	J Porter, FAPF.- C B Richard Ellis.
[Cairns, QLD ∴	24.10.02	'C J Chatwood, AAPI – Jones Lang LaSatte
Cannon Hill, QLD	23.06.04.	J Porter, FAPL - C B Richard Ellis
Cannon Hill Distribution
Centre, QLD	06.10.02	:C J Chatwood, AAPJ – Jones Lang LaSalle
Coffs Harbour, NSW	30.09.04	M Steur, AARFFNZPF - C B Richard Ettis.
-Croydan, VIC.	30.06.04 -	D Gowing, FAPI - C B Richard Ellis.
-Dandenong, VIC.	01.04.05	B F.Sweeney, AAPI - Jones Lang LaSalle
Epping, VIC >> Fountain Gate, VIC	30.06.04	D Gowing, FAPI - C B Richard Ellis
Frankston, VIC	01.03.04 30.06.04	'D Gowing, FAPI – C B Richard Ellis. … B F Sweeney, AAP! – Jones Lang LaSalle
Fyshwick, ACT	24.09.02	-B F Sweeney, AAPI – Jones Lang LaSalle.
Geraldton, WA-	$-11.12.04$	3 Fenner, AAPI and S Nuttall, AAPI ASIA - C B Richard Ellis
Hemmant, QLD	02.04.03	C J Chatwood, AAPI - Jones Lang LaSalle
Hervey Bay, QLD	30.06.05	D Porter, FAP{ and T Irving, AAP! – C B Richard Ellis.
Hoppers Crossing, ViC	30.06.05	D.Gowing, FAPI - C.B Richard Ettis
Joondalup, WA	31.01.04	S Nuttall, AAPFASIA - C B Richard Ellis.
Lismore, NSW	$-02.07.03$	M Steor, AAPEFNZPLand C.Motony, B.Land Economics, GAPL - C.B Richard E
Maitland, NSW	30.07.03	C.Sutton, AAPEAN2R and J.Waugh, FARL- Colliers Internationa
Mandurah, WA	31.01.04	S Nuttall, AAPI ASIA - C B Richard Ellis
Maribyrnong, VIC,	30.06.04	.,B F Sweeney, AAPI – Jones Lang EaSalle.
Mentone, VIC	30.06.04	D Gowing, FAPI - C.B Richard Eths

$30^°$

For the year excled 30 June 2005 -

9. Clnvestment properties (non-current) (continued)

(c) Valuers (continued)

rngeny	rauaanon daus	vatuer
Midland, WA.	31.03.04	S Nuttall, AAPI ASIA - C B Richard Ellis
Mile End, SA:	30.06.05	≅S Hickin, AAPI – Jones Lang LaSalle ·
Minchinbury, NSW	131.12.03	M Steur, AAPI FNZPI and C Molony, B. Land Economics, GAPI - C B Richard Ellis
Mindarie, WA -	31.03.03.	6 R Ettipt, FAPI - FPD Savitts
Moraγfield, QLD.	30.06.05.	`J Porter, FAPI FRICS ≂.C B Richard Ellis
Mornington, VIC	28.02.05.	LD Gowing, FAPI .- C B Richard Ellis .
Noartunga, SA-	30.06.05	S Hickin, AAPI - Jones Lang LaSalle
Northland, VIC -	30.06.04	D Gowing, FAPI - C B Richard Ellis
∙Nunawading, ViÇ-	[01.03.04]	D Gowing, FAPI – C B Richard Ellis.
Oakleigh South, VIC	30.06.04	- B F Sweeney, AAP) – Jones Lang LaSalle j
Port Macquarie, NSW	$-22.05.02$	$E$ Watts, FAPI $\in$ Colliers International
Rockingham, WA	-30.06.03	.G R Etliott, FAPI - FPD Savills -
:Rocklea, QLD.	28.04.03	∬K Dillon, AAP! – Jones Lang LaSalle.
Sandown, ViC.	01.03.04	D Gowing, FAPI - C B Richard Ellis .
Scoresby, VIC	30.06.04.	-D Gowing, PAPI – C B Richard Ellis – .
Southpart, QLD	29.10.03.	U Porter, FAPI FRICS - C B Richard Ellis.
Sunshine, VIC	130.06.04.	D Gowing, FAPI - C B Richard Ellis -.
Thomleigh, NSW	$-31.05.04$	IM Steur, AAPHFNZPL - C B Richard Ellis -
Tuggeranong, ACT	131.12.03	[M Shadbolt, AAPI – C B Richard Ellis]
Underwood, QLD	29.10.03	U.Porter, FAPI – C B Richard Ellis I
Vermont Sauth, VIC.	30.12.02	B.F.Sweeney, AAPi – Jones Lang LaSalie .
Wollangang, NSW-	28,10.02	J E Burdekin, FAPI and B R Stewart, AAPI – Jones Lang LaSalle.
		Promotivations assembles to the moment value of fully finds and calibration in the control of the mother's

(d) Operating leases

(i). With the exceptions of Trust properties at Maribyrnong and Vermont South, 0.4 hectares of surplus land on the Hervey Bay property, and 0.8 hectares of tand on the Bayswater property, all of the properties listed in Note 9(a), (b) and (c) with a fair value of \$600.0 million are leased by Bunnings Pty Ltd (the tengnt).
[ii] . Key lease terms are as follows: [iii]
e. The majority of leases are for a term of five years with four option terms of five years each. The responsible entity or the tenant can exercise the first two options but only the tenant can exercise the last two options. The following are variations to the above, $\left\langle \cdots ,\cdots ,\cdots ,\cdots \right\rangle$ g - Alban Bellin
Barbert en Belling المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل ال
والمستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل المستقبل ا
- Artarmon, Belrose, Cairns, Maitland, Wollongong a term of five years with five option terms of five years each. The responsible entity or the tenant can exercise the first two options but only the tenant can exercise the last three options, $\langle$ والمحارب والمستحيل والمستعمل والمستحيل والمستحيل والمتحارب والمتحارب والمتحارب والمتحارب in Secolul I
- Bayswater, Fountain Gate, Fyshwick, Nunawading a term of ten years with four option terms of five years each exercisable only by the tenant; $\mathbb{E}[\mathbb{E}[\mathbb{E},\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\mathbb{E}[\math$ ولأربع والمترين والمعارف ويتواطأ in sala
- Hemmant, Lismore a term of five years with four option terms of five years. The responsible entity or the tenant can exercise the first option but only the tenant can exercise the last three options, and $\Box\Box\Box$
- Thornleigh a term of five years with five option terms of five years each. The responsible entity or the tenant can exercise the first option but only the tenant can exercise the last four options.

For the year ended 30 hote 2005.

9. Clnvestment properties (non-current) (continued)

(d) Operating leases (continued)

(ii) (Key lease terms are as follows: (continued).

Subject to the variations set out below, rental is reviewed annually in line with movements in Consumer Price Indices compiled by the Australian Bureau of Statistics 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 Artermon, Belrose, Cairns, Maitland and Wollongong, on a market review there is a restriction on the rental degreasing below the commencement rent...
The following are variations to the above: $\mathbb{C}$
Bayswater, Thornleigh the market rent review may be no greater than 115 per cent nor less than 85 per cent of. the rent in the preceding year, though the market review cannot be below the commencement rent. . Coffs Harbour - the market rent review on the fifth anniversary of the commencement date may not be tess than \$671,000...
Lismore the market rent review may be no greater than 120 per cent nor less than 80 per cent of the rent in the preceding year, though the market rent cannot be below the commencement rent. ·
Mile End the rent is comprised of a reviewable rent as well as a fixed rent of \$235,000 per annum. The fixed rent terminates 15 years from the lease commencement date, and is not subject to rearket review. . . . .
With the exception of land tax for properties in Queensland and the properties at Bayswater and Thornleigh, the tenant is responsible for payment of all outgoings, which include all normal rates, taxes and assessments including land tax and metropolitan region tax at the amount assessed. In Queensland, land tax is not recoverable from a tenant. In regard to the properties at Bayswater and Thornleigh, land tax paid by the tenant is calculated on the basis that each of those properties is the only property owned by the Trust. The tenant is responsible for payment of all utilities utilised by it from all premises. ...
Th regard to the Bayswater property, should the lessor and the tenant cease to be related bodies corporate, the tenant has the option to purchase the property at market value from the lessor at the expiration of the lease term. For the Thornleigh property, the tenant has the option to purchase the property from the lessor, should the lessor and tenant cease to be related bodies corporate. In the U.S. $\mathbb{C}$
(iii) There are no lease commitments receivable as at the reporting date.
(iv) There were no contingent rentals recognised as revenues in the financial year.
(v) The future minimum non-cancellable rentat revenues are:

	Sonn	5000
Not later than one year.	- 50,435	:46,179
Later than one year not tater than five years	201,738	184,714
Later than five years.	249,270	268,114
	501,443	499,007
(e) Reconciliation
Carrying amount at the beginning of the financial year	569,262	466,539.
Capital additions.	$-21,917$	-52,247.
-Capital disposats .		$-[1,250]$
Net revaluation increments.	29.256	51,726
Carrying amount at the end of the financial year.	620,435	569,262

		04
	Sooo	\$600
Interest bearing liabilities
Non-current bank loans.	166,945	155,220

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)
$\beta$ or the year ended 30 June 2005 was 6.0 per cent (2004; 6.0 per cent) and includes interest rate hedging adjustments since the inception of the hedges (see Note 17).

Payables
Current.
Trade creditors and accruats Responsible entity's fees payable	1,390 887	2,404 800,
Related parties - associated entities (see Note 19)		252
	2,277	3,516
Non-current.
Retention monies withheld	75
Terms and conditions:
Liabilities are recognised for amounts to be paid in future for goods or services
received, whether or not billed to the Trust. These liabilities are normally settled on 30 day terms except for the responsible entity's fees payable which are settled
quarterly in arrears, and retention monies withheld on construction projects which
are settled according to the terms of the construction contracts.
Contributed equity
(a) Value of units on issue
Value at the beginning of the financial year.	320,249	279,282
Value of units issued during the financial year.	9,983	, 41, 152
Equity raising costs		{190}
Value at the end of the financial year	330,232	320,249

	Units ĐĐƠ	Units


(b) Number of ordinary units on issue.
Number of units on issue at the beginning of the financial year	294,953 6,483	266,043 28,910
Number of units issued during the financial year. Number of units on issue at the end of the financial year	301,436	294,953

under the Distribution Reinvestment Plan

.
For the year ended 30 Jane 2005

		04
	Sooo	\$609
Reserves and undistributed income 13
Asset revaluation	104.335	75,079
Undistributed income. [see Note 14]	16
	104,351	75,080
Asset revaluation
(a) Nature and purpose of reserve
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.
(b) Movements in reserve
Balance at the beginning of the financial year.	75,079	23,353
Revaluation increments arising from the revaluation of investment properties	29,256	51,726
Balance at the end of the financial year	104,335	75.079
Distributions 14
Undistributed income at the beginning of the financial year
Net profit altributable to unitholders in Bunnings Warehouse Property Trust	36,067	32,249
Distributions paid and payable (see Note 5).	(36,052)	[32, 255]
Undistributed income at the end of the financial year	16
Statement of cash flows 15
(a) Reconciliation of operating profit to the net cash flows from operations
Net operating profit from ordinary activities	36.067	32,249
Increase in receivables.	[315]	(470)
(Decrease)/increase in accounts payable	[390]	700
Net cash provided by operating activities	35,362	32,479
(b) Reconciliation of cash
Cash balance comprises:
Cash assets (see Note.7)	5.752	5,366
${c}$ Non cash financing activities $\sim$
e destato de sua conseguidade de la provincia de la

Under the terms of the Distribution Reinvestment Plan, \$9,983,261 (2004: \$16,156,530) of distribution to unitholders was paid by way of the issue of 6,482,637 units (2004: 10,660,049 units)...

16. Einancing arrangements.

The Trust has access to bank bill lines totalling \$250 million (2004: \$175 million) through facility agreements with AN2 Banking Group Limited, National Australia Bank Limited and Westpac Banking Corporation. The amount of credit unused at 30 June .2005 was \$82,2 million (2004; \$19,2 million). The agreements with ANZ Banking Group Limited and National Australia Bank Limited expire in March 2007, and the agreement with Westpac Banking Corporation expires in November 2006.

For the year ended 30 Jane 2005

17 Financial instruments.

Recognised financial instruments

The Trust has recognised certain financial instruments in the accounts. These financial instruments are disclosed in Notes 7, 10, and 11. June 1997

Unrecognised financial instruments

(a) Interest rate risk exposure

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 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 2005 the fixed rates varied from 4.970 per cent to 6.615 per cent (2004: 4.970 per cent to 6.615 per cent) and the floating rates were at bank bill rates. Will will be

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	4 to E years	Over 5 years	interest bearing	Total -
2005	\$000	5000	\$000	\$009	\$000	\$000
Financial assets
∙Çash assets j	5.752					5,752
	5.752					5,752
Financial liabilities
Interest bearing liabilities	166,945					166,945
Payables					2,277	2,277
	166,945				2,277	169,222
interest swaps	(222,000)	5,000	172,000	$-45,000$

2004
Financial assets
Cash assets j	5,366					5,366
	5.366					5,366
Financial liabilities
Interest bearing liabilities	155,220					155,220.
Payables					3,516	3.516
	155,220				3,516	158,736
interest swaps		{164,000}	97,660	60,000

$\setminus$ {164,000} $\sim$ $\cdots$ $\sim$ 7,000 $\cdots$ 97,600 60.000

(b) Concentration of credit risk

The credit risk associated with the rental income is with one tenant, Bunnings Pty Ltd, a wholly owned subsidiary of Wesfarmers Limited. Bunnings 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

The carrying amounts of financial assets and financial liabilities recorded in the financial statements represent 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.

For the year ended 30 Jane 2005

04 \$600

17 Financial instruments (continued)

(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.

	Carrying amount	2005 Met fair. value	Carrying amount	2004 Net fair value -
	\$600	\$000	\$000	\$000
Financial liability
.interest rate swaps		1,204
Financial asset Interest rate swaps.				1.37
Capital expenditure commitments
Estimated capital expenditure contracted for at balance date, but not provided for, payable:
Not later than one year.
Associated entities			34,712	13,333
'Other.				2,129
Later than one year and not later than five years.
Associated entities			6,700	6,700
			41,412	22,362

Maribyrnong, Victoria

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

Northland, Victoria

in August 2004 the Trust committed to a \$2.9 million upgrade of the Northland property. Upon completion of the works, Bunnings Pty Ltd will enter into a new ten year lease with the Trust with a commencement rent of \$1,289,113 per annum.

Lismore, New South Wates.

In November 2004 the Trust committed to upgrade works at the Lismore property with a cost of \$0.4 million. Upon completion of the works, the incremental rent for the property will be \$35,788 per annum.

Croydon, Victoria

In February 2005 the Trust committed to a \$5.6 million redevelopment of the Croydon property. Upon completion of the development, Bunnings Pty Ltd will enter into a new ten year lease with a commencement rent of \$1,400,000 per annum.

Vermont South, Victoria

In March 2005 the Trust committed to a \$14.2 million development of the 5.3 hectare site purchased by the Trust in May 2003. Upon completion of the development, Bunnings Pty Ltd will purchase 0.4 hectares of surplus land trom the Trust for \$0.8 million and enter into a ten year lease with a commencement rent of \$1,750,000 per annum.

Cairns, Queensland

In June 2005 the Trust committed to the purchase from Bunnings Pty Ltd of a 2,400 square metre property adjacent to the Trust property at Cairns, and to a property upgrade for a total cost of \$0.7 million. Upon completion of the development, the Trust will receive an incremental rent of \$60,848 per annum.

Morley, Western Australia -

In June 2005 the Trust exchanged contracts with BBC Hardware Limited, a subsidiary of Wesfarmers Limited, for the purchase of an established Bunnings Warehouse at Morley in Western Australia for \$11.1 million. Settlement of the transaction occurred in July 2005, and stamp duty and other costs associated with the transaction are estimated to be \$0.7 million.

For the year ended 30 June 2005

19. Director and executive disclosures and related party disclosures

(a) Details of specified directors .

.
The following persons were specified directors of the responsible entity, Bunnings Property Management Limited, during the financial years $\mathbb{R}$

Chairman - non-executive W H Cairns ---

Non-executive directors

J A Austin (appointed 10 September 2004).

P.J Mansell -

R W McCuaig (resigned 9 September 2004) G I Tilbrook :

(b) Remuneration policy

The right of the responsible entity to be remunerated and indemnified by the Trust is set out in the Constitution of the Trust and summarised in Note 2. The Constitution is available from ASIC and is available to unitholders on request.

Remuneration expenses of the responsible entity are not borne by the Trust. Directors are remunerated by the responsible entity and management services are provided to the responsible entity by Wesfarmers Limited.

For the financial year ended 30 June 2005, each director was entitled to director's fees and/or superannuation for their services and the reimbursement of reasonable expenses. The fees paid reflect the demands on, and the responsibilities of, those directors. The advice of independent remuneration consultants is taken to establish that the fees are in line with market standards. Directors do not receive option or bonus payments, nor do they receive retirement benefits in connection. with their directorships. There are no equity incentive schemes in relation to the Trust. .

Details of the remuneration of directors are tabled below.

	Primary .	Post employment	Equity ~	Other.	Totat
Specified directors	Salary & Cash Non-monetary fees bonus benefits	Superannuation Other benefits - benefits	Value of shares/options
		5		g.
J A Austin, Director (non-executive) Appointed to September 2004 2005	40,417			6,333	46,750
2004
W H Cairns, Chairman (non-executive) 2005 2004	75,000 72,347			7,600 9,000	82,600 81,147
P J Mansell, Director -{non-executive}- 2005 2004		45.000 43,288		7,600 9,000	52,600 52,288
R W McCuaig, Director [non-executive]] Resigned 9 September 2004 2005	12,512	1.238		1,900	15,650
2004	47,853	4,733		9,000	61,586
G T Tilbrook Director - [non-executive]*-. 2005 2004	37,865 18,826 4,019 21,535 17,473 4,188	1,608 3.385 3.173	15,696 14,807	$-338$ 381	81,737 61,557
Total remuneration: Specified directors
2005 2004	165,794 18,826 4,019 4,188 141,535 17,473	47,846 3.385 51,194	15,696 14,807	23,771 27,381	279.337 256,578

*Mr G T Tilbrook is an executive director of Westamners Limited and as such is not remunerated by the responsible entity in fulfilting his rate as a director of the responsible entily. The amount included show relects an ellocation of the remoneration he receives from Westermers Limited for work performed in relation to the Bunnings Warehouse Property Brasil.

For the year ended 30 June 2005

19 Director and executive disclosures and related party disclosures (continued)

(c) Unit holdings

$\sim$ Specified directors $\ldots$	beginning of the year	The company of the the vear	Batance at the Committee Acculred during Committee Sold during Committee Batance at the Committee Account Accu end of the vear
$\Box$ A Austin $\sim$			The Second Street of Persons and Street Street Street Street Street Street Street Street Street Street Street . W H Cairns W. M. Milletter (28,021 Methods March 21,068 Methods March 1998) 1990 1990 1990 1990 1990 1990 19	s, It
		JP J Mansell	. 198,000 11:00 A & STATE 101:00:00
∵G T Tilbrook l	-22.779		-22.779
Total specified directors	110.675	96.193	206,868 the property of the control of the the control search that the control and

199R W McCuaig held 209,033 units at the commencement of the year. Mc McCuaig resigned 9 September 2004, 1999 LL

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, $\,$

(d) Transactions with related parties

1. Relationship with the Wesfarmers Group
(i) Wesfarmers Investments Pty Ltd, a controlled entity of Wesfarmers Limited, holds 68,250,435 (2004; 65,744,461) units in the Trust, representing 22.64 per cent of the units on issue at 30 June 2005 (2004: 22.29 per cent). J
lii). During the year ended 30 June 2005 rent and other property income of \$51,308,986 (2004: \$44,910,075) was received from Bunnings Pty Ltd, a controlled entity of Wesfarmers Limited. The amount includes an amount received in advance of \$4,737,361 (2004: \$3,963,034), and all the
[iii] The responsible entity's fee of \$3,484,979 (2004: \$2,986,538) is paid/payable to the responsible entity.
(iv) During the year ended 30 June 2005 the Trust acquired a property from BBC Hardware Limited, a wholly owned subsidiary of Wesfarmers Limited, for \$13,333,333 (2004: \$7,750,000). The purchase price was consistent with an independent valuation, [[[[[[]]]]
(v) During the prior year, current payables included an amount of \$252,054 owing to Bunnings Pty Ltd.
(vi). During the year Mr G T Titbrook was Executive Director, Business Development of Wesfarmers Limited, and on-. 13 July 2005 was appointed as Finance Director of Wesfarmers Limited. [[[[[[[[[[[[[[[[[[[[[[[[[[[[
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 \$23,670 (2004: \$50,644) on an arms length basis to the Trust. $\sim$ , $\sim$ , $\sim$ , $\sim$ ekan jihar telah pada
1. During the year Freehills, of which Mr PU Mansell was Managing Partner of the Perth office until 29 February 2004 and subsequently has provided consultancy services, provided legal services on an arms length basis totalling \$26,182 (2004). \$72,418. . . . . . . . . . . . . . . . . . .
1. During the prior year Colliers International Consultancy & Valuation Pty Limited, of which Mr R W McCuaig is
-associated, provided valuation services on an arms length basis totalling \$4,750. $\sim$ and $\sim$ $\sim$ $\sim$ $\sim$
No other benefits have been received or are receivable by directors of the responsible entity or directors of a related entity.

20 Umpact of adopting Australian equivalents to international financial reporting -standards (AIFRS) -

The Bunnings Warehouse Property Trust is in the process of transitioning its accounting policies and financial reporting from .
current Australian Accounting Standards (AGAAP) to Australian equivalents of International Financial Reporting Standards. (AIFRS) which will be applicable for the financial year ending 30 June 2006. The Trust has prepared an opening balance sheet in accordance with AIFRS as at 1 July 2004 which will form the basis of accounting for AIFRS in the future, and is required when the Trust prepares its first fully compliant financial report for the year ending 30 June 2006. .

Set out below are the key areas where accounting policies are expected to change on adoption of AIFRS and the best estimate of the quantitative impact of the changes on total equity as at the date of transition and 30 June 2005 and on net profit for the year ended 30 June 2005.

The figures disclosed are the Trust's best estimates of the quantitative impact of the changes as at the date of preparing the 30 June 2005 financial report. The actual effects of transition to AIFRS may differ from the estimates disclosed due to (a) ongoing work being undertaken; (b) potential amendments to AIFRS and interpretations thereof being issued by the standardsetters and International Financial Reporting Interpretations Committee (IFRIC); and (c) emerging accepted practice in the interpretation and application of AIERS and Lirgent Issues Group (UIG) Interpretations.

-20 | Impact of adopting Australian equivalents to international financial reporting
| | | | standards [AIFRS] [continued] | | | | | | | | | | | | | | | | | | |

	\$980
Reconciliation of net profit as presented under AGAAP to that under AIFRS
Net profit under AGAAP	36,067
Revaluation of investment properties	29,256
Deferred expenditure recognised	[21]
Total net profit.under AIFRS	65,302


		O4
	\$000	\$900
Reconciliation of equity as presented under AGAAP to that under AIFRS
Total equity under AGAAP	434,583	395,329.
Deferred expenditure recognised	${52}$	{31}
Total equity under AIFRS -	434,531	395,298
* Cumulative adjustments as at the date of transition to AFRS and those for the year engled 30 June 2005
** Adjustments as at the date of transition to AfFRS at 1,20ly 2004.
Under AIFRS (AASB 140 Investment Properties) the fair value of investment properties must reflect market conditions at reporting date, and changes in fair value are recognised in the Statement of Financial Performance, NU, (ii) Under AGAAP, expenditure incurred in relation to the potential purchase of property is carried forward and written off over the period to which the benefit of the expenditure relates. $\mathbb{Z}_2$ Under AIFRS (AASB 138 Intangible Assets) research costs are to be expensed immediately. This change in accounting policy will result in research costs being recognised when incurred in the Statement of Financial Performance. - Other impacts
. [1] The Trust was constituted under a Trust Deed dated 18 June 1998. Under the Constitution, the term of the Trust ends on the .80th anniversary of the date of establishment less two days. $\Box\Box$
Under AIFRS (AASB 132 Financial Instruments: Presentation and Disclosure effective 1 July 2005) units on issue would be recognised as a financial liability rather than equity, because the Trust has a finite life.
The responsible entity plans to alter the Constitution by modifying the term of the Trust, such that units on issue would be recognised as equity under AIFRS. This issue will be considered at a meeting of unitholders scheduled for 14 December 2005.
Under AASB 139 Financial Instruments: Recognition and Measurement the Trust expects that its interest rate swap (m/s) agreements will qualify for hedge accounting, with the majority of fair value adjustments being reflected in the hedge reserve and the related hedge receivable or payable being recognised as an asset or liability. The financial impact of these changes at date of transition for this standard, being 1 July 2005, are as follows:
- increase in hedge payable by \$1,203,856
decrease in equity reserve by \$1,203,856

40 Notes to and forming part of the financial statements

For the year ended 30 June 2005

21^® 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 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 domicited 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 Euronings Property Management Limited became the responsible entity. «

The responsible entity plans to alter the Constitution by modifying the term of the Trust, such that units on issue would be, recognised as equity under AIFRS. This issue will be considered at a meeting of unitholders scheduled for 14 December 2005 (see Note 20).

(c) Segment reporting

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

(d) Economic dependency

opper cent (2004: 100 per cent) of the Trust's rental income is received from Bunnings Pty Ltd.

(e) Subsequent event.

On 4 July 2005 the Trust purchased an established Bunnings Warehouse at Morley, Western Australia, for \$11.1 million. The property is subject to a long term lease with Bunnings Pty Ltd at an annual commencement rent of \$860,000.

The financial effect of this subsequent event has not been recognised in the financial statements for the year ended 30 June 2005, but has been included in capital expenditure commitments (see Note 18).

Directors' report

.
For the year ended 30 June 2005.

In accordance with the Corporations Act 2001, Bunnings Property Management Limited (ABN 26 082 856 424), the responsible entity of Bunnings Warehouse Property Trust, provides this report for the financial year ended 30 June 2005. The information on pages 4 to 15 forms part of this directors' report and is to be read in conjunction with the following information; .

Results and distributions.
	Sooo	5200
Net profit : Distributions	36,067	32,249
The following distributions have been paid by the Trust or declared by the directors. since the commencement of the financial year ended 30 $\ell$ une 2005 .
[a] [Cold of the profits for the year ended 30 June 2004 on ordinary units] as disclosed in last year's directors report:
-Final distribution of 5.87 cents per ordinary unit paid on 27 August 2004.	17,314
(b). Tout of the profits for the year ended 30 June 2005 (see Note 5 of the notes to the financial statements). -
(i) Interim distribution of 5.79 cents per ordinary unit paid on 28 February 2005.	17.453
[ii] Final distribution of 6.17 cents per ordinary unit declared by the directors for - payment on 24 August 2005.	18.599
nite anticeus s

.
At 30 June 2005, 301,435,539 units of Bunnings Warehouse Property Trust were on issue (2004: 294,952,902). During the year 6,482,637 (2004: 28,909,463) units were issued by the Trust.

Principal activity [1]

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 2005, Bunnings Warehouse Property Trust held assets to a total value of \$627.2 million (2004: \$575.3 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 to the responsible entity and associates.

Management fees totalling \$3.5 million (2004: \$3.0 million) were paid to the responsible entity out of Trust property during 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 and holds an Australian Financial Services Licence. The responsible entity's parent company and ultimate parent company is Wesfarmers Limited.

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

The Trust had no employees during the financial year (2004: Nil).

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 were:

J A Austin (appointed 10 September 2004) [ W H Cairns

P J Mansell

R W McCuaig (resigned 9 September 2004)

(G T Tilbrook -

Details of the directors appear on pages 16 and 17.

No director is a former partner or director of the current auditor of the Trust.

Directors' report

For the year ended 30 June 2005

Company secretary

Anthony M Niardone, LLB Mr A M Niardone has been company secretary of the responsible entity since 16 February 2004. He is also the company secretary for a number of other Wesfarmers Limited subsidiary companies. Prior to joining Wesfarmers he was assistant company secretary at Woodside Petroleum Ltd. He was admitted to practice as a barrister and solicitor in 1994.

Directors' units

Units in the Trust or a related body corporate in which directors had a relevant interest at the date of this report were: -

Units in the Trust	Shares in Wesfarmers Limited
≅J A Austin ະຣະຕະຕ
`W H Cairns 49.089
``{P J Mansell 100.000	- 3.580
Bhrock	ong

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 conter a right to call for or deliver an interest in the Trust.

Insurance and indemnity 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 tiability 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 responsible entity is probibited from disclosing the premium paid under the contract. Directors and officers are indemnified by the responsible entity against the costs and expenses of defending civil or criminal proceedings in their capacity as directors and officers in which judgement is given in favour of, or acquittal is granted to, a director or officer.

Review and results of operations

The operations of the Trust during the financial year and the results of those operations are reviewed on pages 8 to 13 of this report. and in the accompanying financial statements. This incudes information on the financial position of the Trust and its business. strategies and prospects for future financial years.

Significant changes in the state of affairs

During the financial year, the Trust's investment in Bunnings Warehouse properties increased by \$51.2 million to \$620.4 million, increasing its portfolio of these properties to 51 at financial year end.

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

Significant events after the balance date.

.
On 4 July 2005 the Trust purchased an established Bunnings Warehouse at Morley, Western Australia, for \$11.1 million. The property is subject to a long term lease with Bunnings Pty Ltd at an annual rent of \$860,000.

No other 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.

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 8 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 comply with the majority of the ASX Principles of Good Corporate Governance and Best Practice Recommendations. The responsible entity's corporate governance statement is contained on pages 18 to 20 of this annual report.

Directors' report

For the year ended 30 Bine 2005

Environmental requlation 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.

Board committees

As at the date of this report, the responsible entity had an Audit and Risk Committee.

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 98/100. The Trust is an entity to which the Class Order applies.

Auditor independence and non-audit services

The directors received the following declaration from the external auditor:

EU ERNST & YOU INCT

The Ernst & Young Building 11 Mounts Bay Road Perth WA 6000 Australia

Tel 61 8 9429 2222 61894292436 Fax

GPO Box M939 Peath WA 6843

Auditor's Independence Declaration to the Directors' of Bunnings Property Management Limited

In refation to our audit of the financial report of Bunnings Warehouse Property Trust for the financial year ended 30 June 2005, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.

G H Meyerowitz DARYNSR Perth, 3 August 2005

Start

Ernst & Young

Non-audit services

~ Generał property advice.

Bunnings Property Management Limited

Perth, 3 August 2005

W H Cairns CHARMAN

The following non-audit services were provided to the Trust. The board has considered the nature of the non-audit services provided by the external auditor and has determined that the services provided and the amount paid for those services are compatible with the general standard of independence for auditors imposed by the Corporations Act and did not compromise the auditor's independence,

Ernst & Young received or is due to receive the following amounts for the provision of non-audit services;

\$11,346

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

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: -

1. In the opinion of the directors:
[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 2005 and of its performance for the year ended on -that date; and ---..
- (iii) complying with Accounting Standards and Corporations Regulations 2003; 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, 2. This declaration has been made after receiving the declaration required to be made to the directors in accordance with section. 295A of the Corporations Act 2001 for the financial period ended 30 June 2005. For and on behalf of the board of Bunnings Property Management Limited.

W H Cairns

.
Charman Bushings Property Management Limited Perth, 3 August 2005

Independent audit report to the unitholders of Bunnings Warehouse Property Trust

Scope

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 of the Responsible Entity for Bunnings Warehouse. Property Trust (the Trust), for the year ended 30 June 2005.

The directors of Bunnings Property Management Limited (the Responsible Entity) 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 and the Trust's Constitution. 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 quarantee 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 pudit opinion on the basis of these procedures, which included:

$\bullet$ $\mathord{\sim}$ examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
ó 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. $\mathbb{N}{\geq 0}$ , $\mathbb{N}{\geq 0}$

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 judgement 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. We have given to the director's of Bunnings Property Management Limited, responsible entity for the Trust, a written Auditor's Independence Declaration, a copy of which is included in the Director's Report. In addition to our statutory audit work, we were engaged to undertake the services disclosed in the notes to the financial statements. The provision of these, services has not impaired our independence.

Audit opinion

In our opinion, the financial report of 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 Bunnings Warehouse Property Trust at 30 June 2005 and of its

Ernst & Young

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.

to theast

G H Meyerowitz Perth, 3 August 2005,

Unitholder information

Substantial unitholders

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

-Wesfarmers.Limited, its subsidiaries and their associates $\mathbb{C}$			58,955,942
Distribution of unitholders
- As at 3 August 2005
Range of holding	Holders	Units	℅
$1 - 3,000$	$-1,042$	- 562.250	1泊今
$-1,001 - 5,000$	- 3.376	.30.399,494	34
$5,001 - 30,000$	13,146.	$-23,438,840$	7.8.
$\sim$ 10,001 = .100,000.	4,729	104.100.584	34.5
100,001 - over - - -	139	162,934,371	54.1
Total	12,432	301,435,539	100.0
Unitholders holding less than a marketable parcel (269 units).	230	25,292.

Voting rights.

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

Twenty largest unitholders

The twenty largest holders of ordinary units in the Trust as at 3 August 2005 were: units	Number of Percentage of capítal held
Wesfarmers Investments Pty Ltd 68,250,435	-22.6
. J.P Morgan Nominees Australia Limited . 17,843,168	59
RBC Global Services Australia Nominees Pty Limited -13,459,435	-4.5
Westpac Custodian Nominees Limited - - 8,836,392.	$-2.9$
Australian Foundation Investment Company Limited 17,300,000	'2.h
ANZ Nominees Limited -5,341,502	- 1.8
Invia Custodian Rty Limited .5.097.515	1.7
National Nominees Limited .3.957.034	-1.3
:Cogent Nominees Pty Limited 2,687,422	$-0.07$
Citicorp Nominees Pty Limited 2,548,438	0.8 ₁
Kowloon Nominees Pty Limited 12,300,266.	0.7
Dierriwarrh Investments Limited 3,700,000.	6.6
Bond Street Custodians Limited 1,660,527	.O.S
ANZ Managed Investments Ltd. 1,448,453	$-0.5$
AMP Life Limited ጎ,401,799	$0.5 -$
Argo Investments Limited 1,000,000	-0.3 -.
Australian Executor Trustees Limited 850,378	- 0.3
Health Super Pty Ltd ,820,000.	-0.3
Mr Robin Halbert & Mr David Johnston & Mr John Maldney 581,250	0.2
Cantala Pty Ltd 571,703	0.2
:Total 147,455,717	48.9

46 Investor information

Stock exchange listing

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

Distribution reinvestment plan

The directors resolved in February 2005 to suspend the Distribution Reinvestment Plan until further notice.

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 malled payment advice.

Unitholders wishing to take advantage of payment by direct credit should contact the registry manager 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 J covering matters of relevance to investors.

Website

The Bunnings Warehouse Property Trust internet site, www.bunningspropertytrust.com.au, is a useful source of information for anitholders. It includes details of the Trust's property portfolio, currentactivities and future prospects. The site also provides access to annual and half-year reports and releases made to the Australian Stock Exchange.

Annual tax statements

Accompanying the final distribution. payment in August or September each, year will be an appual 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.

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...

On 3 August 2005 the board amounced that a meeting of unitholders would be held at the Freshwater Bay Room, Hyatti Regency Perth on 14 December 2005 at 10.30 am. At the meeting, the board will. seek unitholder approval to amend the Trust's constitution...

A copy of the Notice of Meeting will be distributed in due course and made available to download from the Trust's website.

Unitholder enquiries

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

Computershare Investor Services Pty Limited ~ Level 2, 45 St George's Terrace Perth WA 6000 Tel: {08} 9323 2000 Fax: [08] 9323 2033 www.computershare.com.au

Responsible entity

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

Directors and senior management

W H Cairns (Chairman) J A Austin (Director) PJ Mansell (Director) G T Tilbrook (Director) A J Hopkins (General Manager). A.M.Niardone (Secretary).

Registry manager-

Computershare Investor Services Pty Limited. Level 2, 45 St George's Terrace. PERTH WA 6000 Telephones (08) 9323 2000 -Facsimile: (08) 9323 2033 .
www.computershare.com.au

Auditor

Ernst & Young The Ernst & Young Building 11 Mounts Bay Road PERTH WA 6000

visit us at

www.bunningspropertytrust.com.au

aka kecimian 200-200

the contract of the contract of the contract of the contract of the contract of the contract of the

AI assistant

BWP GROUP — Annual Report 2005

64592_rns_2005-08-23_194bfc21-f092-480e-b974-00d045f72e61.pdf

2005 Annual Report

annual report 20

NNNes

total land area =

Contents

$128$ ha

Performance summary

total retail area =

$\sum$

Distribution

BWP closing unit price

BWP total return

Property portfolio

total properties =

Australian Capital Territory

2005 highlights

solid growth in earningsfor unitholders

Dear unitholder

continued growth

Financial results

Final distribution

Market performance

Market rent reviews

Revaluations

Gearing

Interest rate management.

Funding

Market rent reviews completed during 2004/05

Property acquisition, development, and upgrades

A summary of property activities during the financial year is presented below.

THORNLEIGH ** NEW SOUTH WALES

MAITLAND NEW SOUTH WALES

MI F END SOUTH AUSTRALIA

TUGGERANONG AUSTRALIAN CAPITAL TERRITORY

FOUNTAIN GATE VICTORIA.

NUNAWADING VICTORIA

outlook

Current expectations are for continued growth in the 2005/06 financial year.

Investment approach

objectives

strategies

The tenant

The sites

The stores

Directors and senior management

Corporate governance

Relationship between the responsible entity and Wesfarmers Limited

Roles of the board and management

Board structure

Director independence

Selection and appointment of directors

Independent professional advice

Trading in units

Financial reporting

General Manager declaration

International Financial Reporting Standards

Audit and risk committee

Risk control and compliance

Review of board and committee performance

Remuneration policies

Remuneration committee

Continuous disclosure and communications with unitholders

Ethics and conduct

Contents

financialstatements

Statements of financial performance and distribution

Statement of financial position

Statement of cash flows

Summary of significant accounting policies

(a) Changes in accounting policies.

(b) Revenue recognition

Specific revenues are recognised as follows:

(c) Expenditure

fel Taxation.

Goods and Services Tax

(f) Contributed equity

(g) Depreciation

BWP GROUP Annual Report 2005

solid growth in earnings
for unitholders

financial
statements

-20 | Impact of adopting Australian equivalents to international financial reporting
| | | | standards [AIFRS] [continued] | | | | | | | | | | | | | | | | | | |

21^® Additional information