BWP GROUP — Annual Report 2007

Aug 7, 2007

==> picture [218 x 29] intentionally omitted <==

==> picture [218 x 30] intentionally omitted <==

ARSN 088 581 097

8 August 2007

The Manager Company Announcements Office Australian Securities Exchange Limited Level 4, 20 Bridge Street SYDNEY NSW 2000

Dear Sir

RESULTS FOR YEAR ENDED 30 JUNE 2007

In accordance with ASX Listing Rule 4.3A, the following documents are attached for release to the market:

• Full year results announcement

• Appendix 4E – Preliminary Final Report

• Financial statements for the year ended 30 June 2007

==> picture [131 x 41] intentionally omitted <==

A M NIARDONE COMPANY SECRETARY

11[th] Floor, “Wesfarmers House” 40 The Esplanade, Perth Western Australia 6000 GPO Box M978, Perth Western Australia 6843 Telephone (08) 9327 4318 Facsimile (08) 9327 4344 www.bunningspropertytrust.com.au

ARSN 088 581 097

8 August 2007

==> picture [194 x 26] intentionally omitted <==

==> picture [194 x 27] intentionally omitted <==

Steady growth for 2006/07

The Directors of Bunnings Property Management Limited, the responsible entity for the Bunnings Warehouse Property Trust, today announced a distributable profit for the year ended 30 June 2007 of $39.1 million up from $38.0 million last year.

The net profit for the year was $207.0 million, including $167.9 million unrealised gain in fair value of investment properties.

Total income was $59.8 million, up by 8.4 per cent from last year due to additional income received from new properties, property upgrades and annual rent reviews.

Final distribution

A final distribution of 6.56 cents per unit has been declared. This exceeds the distribution estimate of 6.47 released to the Australian Stock Exchange on 14 June 2007 due to adjustments resulting from market rent reviews finalised in June, lower than expected borrowing costs for the month of June and a land tax adjustment. The final distribution will be made on 29 August 2007 to unitholders on the Trust’s register as at 5.00 pm on 29 June 2007.

This brings the total distribution for the 2006/07 year to 12.98 cents per unit, a 2.9 per cent increase on last year’s distribution of 12.61 cents per unit. The tax advantaged component for the 2006/07 distribution is 23.62 per cent. The Distribution Reinvestment Plan remains suspended until further notice.

Property acquisitions, developments and upgrades

In a very competitive environment for acquiring investment grade assets, the Trust has added five new quality properties to its portfolio, namely: an established Bunnings Warehouse, a development site on which a Bunnings Warehouse is being built and three established office/warehouse properties acquired from and leased back to Wesfarmers subsidiary, J Blackwood and Son Limited.

The acquisition of the Blackwoods properties is the first acquisition by the Trust of nonBunnings tenanted properties and reflects the board’s view that, while the Trust’s predominant focus will remain centered on Bunnings Warehouses, other growth opportunities will be considered where they meet the investment criteria of the Trust and promote the interests of unitholders.

2

The board’s view that the Trust should pursue other growth opportunities has been reinforced recently by the sale and lease back of a portfolio of 11 Bunnings Warehouses in Australia and New Zealand by Bunnings Group Limited. This transaction demonstrated the current strong demand for Bunnings properties and the level of competition for securing them. Although the Trust submitted a carefully considered and detailed offer for all 11 properties at a price and on terms considered to be very competitive, it was not successful in acquiring any of these properties.

While the board is disappointed at not having acquired this portfolio, it considers that the lease terms on which these properties were being offered and the price at which they were sold would not have been in the best interests of unitholders.

In order to continue to grow the Trust without unduly compromising the quality of the investment portfolio and returns to unitholders other acquisition opportunities will be considered. The acquisition from Blackwoods has provided three well located properties leased to a substantial tenant, which were immediately accretive to earnings and offer potential for capital and rental growth. The board will continue to pursue such opportunities actively provided they meet the Trust’s investment criteria.

During the year the Trust also acquired, from third parties, an established Bunnings Warehouse at North Belmont, New South Wales, and a development site at Hawthorn, Victoria, on which a Bunnings Warehouse is currently being constructed. The board will continue to actively pursue opportunities such as these to build on the Trust’s existing portfolio of quality Bunnings Warehouses.

The property activity undertaken during the year has enhanced or is expected to enhance the future value and geographic diversification of the Trust’s portfolio. At 30 June 2007, the weighted average lease expiry of the Trust’s portfolio was 7.9 years.

Finance

At 30 June 2007, the Trust had total assets of $963.4 million, with unitholders’ equity of $675.4 million and total liabilities of $288.0 million.

The Trust currently has a total of $280 million debt facilities with three major Australian banks, with borrowings under the facilities at 30 June 2007 being $258.6 million. The gearing ratio (debt to total assets) at 30 June 2007 was 26.8 per cent, within the Trust’s preferred range of 20 to 40 per cent.

At 30 June 2007, 82.0 per cent of the Trust’s interest bearing debt was hedged at a weighted average rate excluding margins of 5.99 per cent and the weighted average term to maturity of the hedged debt was 2.8 years.

Capital expenditure

Capital expenditure on acquisitions, developments and upgrades during the year amounted to $62.0 million, including the acquisition of five new quality properties and completion of two major upgrades to existing Bunnings Warehouse properties.

3

Market rent reviews

In accordance with the majority of Trust leases, the rent of properties is reviewed annually in line with movements in the Consumer Price Index except on each fifth anniversary of the lease commencement date when rent is reviewed to market rental. The market rental is determined according to generally accepted rent review criteria. During the year, there were five market rent reviews completed and one currently being determined. The results are shown in the table below.

	Passing rent ($pa) Market review ($pa) Uplift Effective date
Midland (WA) Mindarie (WA) Coffs Harbour (NSW) Geraldton (WA) Frankston (VIC)	967,383 1,235,000 +28% 5 Sep 06 997,925 1,195,000 +20% 5 Sep 06 679,003 735,000 +8% 26 Nov 06 759,020 830,000 +9% 10 Dec 06 1,696,635 1,696,635 0% 20 Dec 06
WEIGHTED AVERAGE	12%

Revaluations

As required by the Australian Equivalents to International Financial Reporting Standards the entire Trust portfolio was revalued at 31 December 2006 and again at 30 June 2007. Twenty property revaluations during the year were performed by independent valuers (11 at 31 December 2006 and 9 at 30 June 2007). Properties not independently revalued at each balance date are subject to directors’ revaluations. Directors’ revaluations are subject to review by an independent valuer.

The value of the portfolio increased to $950.2 million, following net revaluation gains of $167.9 million and capital expenditure of $62.0 million during the year. This represents an increase of 31.8 per cent on the fair value at 30 June 2006 and contributed to an increase in the underlying net tangible asset backing of the Trust’s units from $1.67 per unit at 30 June 2006 to $2.24 per unit at 30 June 2007.

Outlook

Current expectations are for continued growth in the 2007/08 financial year through acquisitions, developments and rent reviews. Bunnings Warehouses will continue to be the primary focus for growth, however, other acquisition opportunities will be considered where they meet the Trust’s investment criteria and are considered to be in the best interests of unitholders.

Growth opportunities are expected from the following sources:

• acquisition of new and established Bunnings Warehouses owned or being developed by third parties for lease to Bunnings Group Limited or direct from Bunnings Group Limited, subject to acceptable lease terms and conditions;

• improve existing Trust properties, primarily through upgrades and other developments based on the needs of existing tenants, particularly Bunnings Group Limited;

• grow rental income from the existing portfolio. There are seven market rent reviews scheduled for the 2007/08 financial year;

4

• acquire or develop single or multiple tenanted bulky goods outlets anchored by national or international retailers; and

• consider other properties that meet the Trust’s investment criteria by being well located, having long-term leases to substantial tenants and that complement the existing Trust portfolio.

Earnings will be affected in the short to medium term by low yields derived from properties acquired in the current market, funding costs, the impact of management fees and increased land tax. The responsible entity will endeavour to ensure that the Trust continues to grow in a sustainable manner.

For further information please contact:

Mr Grant Gernhoefer

General Manager, Bunnings Property Management Limited

Telephone: (08) 9327 4318 E-mail: ggernhoefer@bpml.wesfarmers.com.au Website: www.bunningspropertytrust.com.au

BUNNINGS WAREHOUSE PROPERTY TRUST PRELIMINARY FINAL REPORT

ARSN 088 581 097

APPENDIX 4E

Financial year ended 30 JUNE 2007

Results for announcement to the market

Results for announcement to the market
.	$000
Revenues from ordinary activities up 8.4% to 59,774 Profit from ordinary activities attributable to members up 175.1% to 206,978 Net profit for the year attributable to members up 175.1% to 206,978 Distributions Amount per ordinary security Interim distribution 6.42 cents Final distribution 6.56 cents Previous corresponding year Interim distribution 6.22 cents Final distribution 6.39 cents Record date for determining entitlements to the final distribution 29 June 2007 Date the final distribution is payable 29 August 2007 Has the distribution been declared? Yes Current year $’000 Previous corresponding year $’000 Final distribution amount 19,774 19,262 Distribution Plan The Bunnings Warehouse Property Trust Distribution Reinvestment Plan remains suspended.

BUNNINGS WAREHOUSE PROPERTY TRUST PRELIMINARY FINAL REPORT

Ratios

	2007	2006
Net Tangible Asset Backing
Net tangible asset backing per unit	$2.24	$1.67
Profit/Revenue
Net profit as a percentage of revenue	346%	137%
Profit/Equity Interests
Net profit attributable to unitholders as a percentage of equity
(similarly attributable) at the end of the year	31%	15%

Related Party Disclosure

Number of units held by the management company or responsible entity or their related parties. Management fees paid and payable to the management company, Bunnings Property Management Limited, a wholly owned subsidiary of Wesfarmers Limited.	68,250,435
	$4,681,912

Segment Reporting

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

Commentary on the results for the year

The commentary on the results for the year is contained in the press release dated 8 August 2007 accompanying this statement.

Subsequent Event

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

Audit

This report is based on accounts that have been audited.

BUNNINGS WAREHOUSE PROPERTY TRUST

Financial statements

for the year ended 30 June 2007

Bunnings Warehouse Property Trust Income & Distribution Statement For the year ended 30 June 2007

		2007	2006
	Note	$000	$000
CONTINUING OPERATIONS
Rental income		58,047	53,891
Other property income		1,454	1,084
Interest income		231	131
Other income		42	13
		59,774	55,119
Unrealised gain in fair value of investment properties	9	167,861	37,180
Responsible entity’s fees	2	(4,682)	(3,962)
Other operating expenses		(1,772)	(1,225)
Net profit from continuing operations before finance costs		221,181	87,112
Finance costs	4	(14,203)	(11,866)
Net profit from continuing operations attributable to
unitholders of Bunnings Warehouse Property Trust		206,978	75,246
DISTRIBUTION STATEMENT
Net profit attributable to unitholders of Bunnings
Warehouse Property Trust		206,978	75,246
Undistributed income at the beginning of the financial year		171,199	133,964
Distributions paid or payable	5	(39,126)	(38,011)
Undistributed income at the end of the financial year		339,051	171,199
Basic and diluted earnings (cents per unit)	6	68.7	25.0
Distribution (cents per unit)	5	12.98	12.61
The income and distribution statement should be read in conjunction with			the
accompanying notes.

2

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Balance Sheet

As at 30 June 2007

Note Current assets Cash 7 Prepayments 8 Derivative financial instruments 16 Total current assets Non-current assets Investment properties 9 Receivables 8 Derivative financial instruments 16 Total non-current assets Total assets Current liabilities Payables 10 Interest bearing loans and borrowings 11 Derivative financial instruments 16 Distribution payable 5 Total current liabilities Non-current liabilities Interest bearing loans and borrowings 11 Total non-current liabilities Total liabilities Net assets Unitholders’ equity Units on issue 12 Reserves 13 Undistributed income Total unitholders’ equity Net tangible asset backing per unit	2007 $000 2006 $000 5,122 6,212 1,108 344 143 36
	6,373 6,592
	950,200 721,125 850 850 5,962 3,045
	957,012 725,020
	963,385 731,612
	9,691 6,918 - 149,430 - 34 19,774 19,262
	29,465 175,644
	258,552 51,469
	258,552 51,469
	288,017 227,113
	675,368 504,499
	330,233 330,233 6,084 3,067 339,051 171,199
	675,368 504,499
	$2.24 $1.67

The balance sheet should be read in conjunction with the accompanying notes.

3

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

For the year ended 30 June 2007

Bunnings Warehouse Property Trust Cash Flow Statement

Note Cash flows from operating activities Rent received Payments to suppliers Payments to the responsible entity Interest received Finance costs Net cash flows from operating activities 14 Cash flows from investing activities Payments for purchase of, and additions to, the Trust’s property investments Receipts from the sale of the Trust's property investments Loans to related parties Net cash flows used in investing activities Cash flows from financing activities Proceeds of borrowings Distributions paid Net cash flows from/(used in) financing activities Net (decrease)/ increase in cash Cash at beginning of the financial year Cash at the end of the financial year 7	2007 $000 2006 $000 67,063 60,353 (7,577) (6,685) (4,429) (3,710) 231 131 (14,203) (11,620)
	41,085 38,469
	(61,969) (33,765) 755 - - (850)
	(61,214) (34,615)
	57,653 33,954 (38,614) (37,348)
	19,039 (3,394)
	(1,090) 460 6,212 5,752
	5,122 6,212

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

4

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Statement of Changes in Equity For the year ended 30 June 2007

Balance at 1 July 2005 Movement in hedge derivatives Total income and expense for the year recognised directly in equity Net profit for the year Equity distributions Balance at 30 June 2006 Balance at 1 July 2006 Movement in hedge derivatives Total income and expense for the year recognised directly in equity Net profit for the year Equity distributions Balance at 30 June 2007	Note Units on issue $000 Undistributed income $000 Reserves $000 Total $000
	330,233 133,964 (1,204) 462,993
	13 - - 4,271 4,271
	- - 4,271 4,271 - 75,246 - 75,246 - (38,011) - (38,011)
	330,233 171,199 3,067 504,499
	330,233 171,199 3,067 504,499
	13 - - 3,017 3,017
	- - 3,017 3,017 - 206,978 - 206,978 - (39,126) - (39,126)
	330,233 339,051 6,084 675,368

The statement of changes in equity should be read in conjunction with the accompanying notes.

5

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The financial report has been prepared in accordance with the requirements of the Constitution of Bunnings Warehouse Property Trust (the Trust) and Australian Accounting Standards. The financial report has been prepared on an historical cost basis, except for investment properties and derivative financial instruments that have been measured at their fair value.

The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($000) under the option available to the Trust under ASIC Class Order 98/100.

(b) Statement of compliance

The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). The financial report also complies with International Financial Reporting Standards (IFRS).

The Trust has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB), that are relevant to its operations and effective for financial reporting periods beginning on or before 1 July 2006. The adoption of these standards has given rise to additional disclosure but did not have a material effect on the financial statements of the Trust.

There are Australian Accounting Standards that have recently been issued or amended but are not yet effective and have not been adopted for the annual reporting period ended 30 June 2007. The amendments when implemented are not expected to have a material effect on the financial statements.

(c) Significant judgements and estimates

In applying the Trust’s accounting policies management continually evaluates judgements, estimates and assumptions based on experience and other factors, including expectations about future events that may have an impact on the Trust. All judgements, estimates and assumptions made are believed to be reasonable based on the most current set of circumstances available to management. Actual results may differ from the judgements, estimates and assumptions. Significant judgements, estimates and assumptions made by management in the preparation of these financial statements are outlined below.

Investment properties – operating leases

The Trust has entered into commercial property leases on its investment portfolio. The Trust has determined that it retains all the significant risks and rewards of ownership of these properties and has thus classified the leases as operating leases (see Notes 1(e), 1(m), and 9(c)).

Investment properties – valuations

Investment properties are revalued each balance date to reflect their fair value according to the Trust’s policy on valuing assets and applying generally accepted valuation criteria, methodology and assumptions (see Notes 1(e) and 9(a)).

6

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(d) Finance costs

Finance costs are recognised as an expense when incurred with the exception of interest charges on funds invested in properties with substantial development and construction phases which are capitalised to the property until such times as the construction work is complete.

The capitalisation rate used to determine the amount of finance costs to be capitalised is the weighted average interest rate applicable to the Trust’s outstanding borrowings during the year.

(e) Investment properties

Initially, investment properties are measured at cost including transaction costs. Expenditure capitalised to properties includes the cost of acquisition, capital and refurbishment additions, and during development includes rates, taxes, financing charges and related professional fees incurred, net of sundry income. Subsequent to initial recognition investment properties are stated at fair value. Gains or losses arising from changes in the fair values of investment properties are included in the Income and Distribution Statement in the year in which they arise.

Where assets have been revalued, the potential effect of the capital gains tax (CGT) on disposal has not been taken into account in the determination of the revalued carrying amount. The Trust does not expect to be ultimately liable for CGT in respect of the sale of assets as all realised gains would be distributed to unit holders.

(f) Cash

Cash in the Balance Sheet, and for the purposes of the Cash Flow Statement, comprises cash at bank.

(g) Interest bearing loans and borrowings

All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised costs using the effective interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of loans and borrowings.

Borrowings are classified as current liabilities unless the Trust has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

7

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(h) 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 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.

(i) Distribution payable

The constitution of the Trust provides that its distributable profit, which excludes fair value revaluations to investment properties, 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 each balance date.

(j) Revenue

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.

The following specific measurement criteria must also be met before revenue is recognised:

Rental and other property income

Rental and other property income is recognised on a straight-line basis over the lease term.

Interest income

Revenue is recognised as the interest accrues.

(k) Taxation

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

Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of Goods and Services Tax (GST) except where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from or payable to the taxation authority is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis and 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.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

8

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(l) Derivative financial instruments

The Trust enters into interest rate swap agreements that are used to convert the variable interest rate of its short-term borrowings to medium-term fixed interest rates. The swaps are entered into with the objective of reducing the risk of rising interest rates.

Derivative financial instruments are stated at fair value. The fair value of interest rate swap contracts is determined by reference to market values for similar instruments.

For the purpose of hedge accounting, hedges are classified as either fair value hedges when they hedge the exposure to changes in the fair value of a recognised asset or liability; or cash flow hedges where they hedge exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or a liability or a forecasted transaction.

In relation to cash flow hedges (interest rate swaps) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised directly in equity as a hedging reserve and any ineffective portion is recognised in the Income and Distribution Statement

The Trust manages its financial derivatives (interest rate swaps) to ensure they meet the requirements of a cash flow hedge.

(m) Leases

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

Operating leases

The minimum rental revenues of operating leases, where the lessor effectively retains substantially all of the risks and benefits of ownership of the leased items, are included in the determination of the net profit in equal instalments over the lease term.

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.

Lease incentives, which may take the form of up-front payments, contributions to certain lessees costs, relocation costs and fit-outs and improvements, are recognised on a straight line basis over the lease term as a reduction of rental income.

9

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(n) Units on issue

Units on issue are 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.

(o) Earnings per unit

Basic earnings per unit is calculated as net profit attributable to unitholders, adjusted to exclude costs of servicing equity (other than distributions), divided by the weighted average number of units, adjusted for any bonus element.

The diluted earnings per unit is equal to the basic earnings per unit.

10

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

2 Responsible entity’s fees

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 responsible entity may waive the whole or any part of the remuneration to which it would otherwise be entitled. (see Note 18 (d)1(v)).

3 Auditors’ remuneration Auditing or review of the financial statements Other services 4 Finance costs Interest expense – other persons/corporations Interest expense capitalised 5 Distributions paid or payable 6.42 cents (2006: 6.22 cents) per unit, interim distribution paid 6.56 cents (2006: 6.39 cents) per unit, final distribution provided 6 Earnings per unit Net earnings used in calculating basic and diluted earnings per unit Basic and diluted earnings per unit Basic and diluted earnings per unit excluding gain on revaluations Weighted average number of units on issue used in the calculation of basic and diluted earnings per unit	2007 $ 2006 $ 38,828 35,202 11,160 9,713
	49,988 44,915
	$000 $000 14,203 12,028 - (162)
	14,203 11,866
	19,352 18,749 19,774 19,262
	39,126 38,011
	206,978 75,246 68.7 cents 25.0 cents 13.0 cents 12.6 cents 301,435,539301,435,539

Basic and diluted earnings per unit excluding gain on revaluations of $167,861 (2006: $37,180)

11

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

		2006	2005
		$000	$000
7	Cash
	Cash at bank	5,122	6,212
	Weighted average effective interest rates	5.6%	5.0%
8	Prepayments and receivables
	Current
	Prepayments	1,108	344
	Non-current
	Loan to Bunnings Group Limited	850	850

Bunnings Group Limited is a controlled entity of Wesfarmers Limited. The terms and conditions of the loan are disclosed in Note 18(d)1(vi).

9	Investment properties (non-current)
	(a) Cost of investments

				Capital
				improvements		Fair value	Fair value
		Purchase	Acquisition	since	Fair value	30 June	30 June	Last
Property	Acquisition date	price $000	costs $000	acquisition $000	adjustment $000	2007 $000	2006 $000	independent valuation
Albany, WA	01.11.99	4,100	206	-	2,794	7,100	6,000	04.03.05
Altona, VIC	24.09.98	6,800	391	-	6,309	13,500	11,400	31.12.06
Artarmon, NSW	10.02.03	14,033	864	-	8,003	22,900	18,100	31.12.05
Balcatta, WA	24.09.98	11,200	555	-	12,245	24,000	17,100	31.12.06
Bayswater, VIC	11.02.03	7,335	796	13,153	5,816	27,100	22,400	30.06.06
Belmont, NSW	04.12.06	10,850	634	73	443	12,000	-	17.10.06
Belrose, NSW	10.02.03	17,150	1,054	33	8,763	27,000	20,800	31.12.05
Bibra Lake, WA	29.12.98	1,899	95	6,350	8,556	16,900	13,700	04.03.05
Blacktown, NSW	24.01.07	8,235	542	-	23	8,800	-	30.05.06
Broadmeadows, VIC	24.09.98	7,200	431	240	6,529	14,400	11,600	30.06.07
Burleigh Heads, QLD	22.10.98	9,700	195	-	7,505	17,400	13,800	30.06.06
Cairns, QLD	10.02.03	10,000	453	958	3,989	15,400	12,100	31.12.05
Canning Vale, WA	24.01.07	6,467	430	-	103	7,000	-	30.05.06
Cannon Hill Distribution
Centre, QLD	01.11.99	3,100	138	-	1,362	4,600	4,000	30.09.05
Cannon Hill, QLD	24.12.98	2,500	176	6,350	7,974	17,000	14,000	30.06.07
Coffs Harbour, NSW	05.09.01	1,900	112	4,500	4,488	11,000	8,500	30.06.07
Croydon, VIC	24.09.98	7,800	518	5,614	7,568	21,500	11,800	31.12.06
Dandenong, VIC	19.04.02	4,000	255	6,660	5,085	16,000	13,400	01.04.05
Epping, VIC	12.03.99	7,800	463	-	7,137	15,400	12,500	30.06.07
Fountain Gate, VIC	24.09.98	8,300	505	1,573	8,022	18,400	15,400	31.12.05
Frankston, VIC	26.06.01	7,300	301	9,400	9,099	26,100	21,900	30.06.07
Fyshwick, ACT	23.12.02	10,000	942	3,525	3,533	18,000	15,325	31.12.05
Geraldton, WA	10.12.01	1,250	351	5,225	5,074	11,900	8,900	11.12.04
Hawthorn (land), VIC	18.04.07	19,337	1,210	-	(1,147)	19,400	-	01.05.07
Hemmant, QLD	07.05.03	3,000	143	10,258	8,499	21,900	17,400	31.12.05

12

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

9 Investment properties (non-current) (continued) (a) Cost of investments (continued)

Property Acquisition date Hervey Bay, QLD 12.07.02 Hoppers Crossing, VIC 11.01.99 Joondalup, WA 24.09.98 Lismore, NSW 21.04.04 Maitland, NSW 20.08.03 Mandurah, WA 24.09.98 Maribyrnong, (land) VIC 28.06.01 Mentone, VIC 24.09.98 Midland, WA 06.03.01 Mile End, SA 22.03.00 Minchinbury, NSW 31.12.98 Mindarie, WA 03.03.00 Morayfield, QLD 22.03.00 Morley, WA 01.07.05 Mornington, VIC 29.12.98 Noarlunga, SA 13.04.99 Northland, VIC 24.09.98 Nunawading, VIC 24.09.98 Oakleigh South, VIC 05.04.01 Port Macquarie, NSW 15.11.02 Regency Park, SA 24.01.07 Rockingham, WA 30.06.00 Rocklea, QLD 23.10.02 Sandown, VIC 24.09.98 Scoresby, VIC 24.09.98 Southport, QLD 09.11.98 Sunshine, VIC 24.09.98 Thornleigh, NSW 07.09.04 Tuggeranong, ACT 01.12.98 Underwood, QLD 22.10.98 Vermont South, VIC 14.05.03 Wollongong, NSW 10.02.03

Purchase price $000 Acquisition costs $000 Capital improvements since acquisition $000 Fair value adjustment $000 Fair value 30 June 2007 $000 Fair value 30 June 2006 $000 Last independent valuation 2,053 122 6,425 4,500 13,100 10,600 30.06.05 2,075 134 5,928 8,063 16,200 12,800 30.06.05 8,100 593 - 6,507 15,200 11,900 31.12.06 7,750 447 615 2,288 11,100 8,300 31.12.06 898 489 9,798 4,015 15,200 12,700 30.06.06 3,050 160 5,631 5,959 14,800 10,000 31.12.06 7,100 462 - 1,138 8,700 8,700 N/A 9,400 540 - 6,660 16,600 13,900 30.06.07 4,600 255 4,930 9,215 19,000 13,100 31.12.06 11,250 624 259 9,067 21,200 18,200 30.06.05 9,200 503 - 11,497 21,200 17,700 31.12.06 4,184 209 5,598 8,409 18,400 13,100 31.12.05 8,000 334 - 6,166 14,500 11,500 30.06.05 11,100 642 307 2,451 14,500 11,500 01.06.05 3,400 204 6,481 9,715 19,800 16,000 28.02.05 2,305 124 3,750 6,721 12,900 10,500 30.06.05 8,600 489 2,920 8,391 20,400 17,200 31.12.05 13,700 786 3,100 13,614 31,200 26,000 31.12.05 6,650 374 9,143 8,533 24,700 20,700 30.06.07 2,100 141 5,400 3,359 11,000 8,900 31.12.05 4,656 347 9 (312) 4,700 - 30.05.06 3,320 166 5,830 7,784 17,100 14,000 31.12.05 6,225 295 7,475 6,505 20,500 16,200 31.12.05 7,800 446 - 4,454 12,700 10,700 31.12.06 8,300 473 - 7,427 16,200 13,100 30.06.07 2,800 188 6,600 6,512 16,100 13,900 30.06.06 7,000 407 - 3,893 11,300 9,700 30.06.07 13,333 782 62 2,223 16,400 13,700 31.12.06 7,900 431 245 9,824 18,400 14,400 31.12.06 3,000 178 5,850 6,972 16,000 13,000 30.06.06 9,150 633 14,183 4,834 28,800 24,700 30.04.05 12,000 628 87 4,885 17,600 14,300 31.12.05 402,255 24,366 184,538 339,041 950,200 721,125

13

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

9 Investment properties (non-current) (continued)

(a) Cost of investments (continued)

(i) Valuation policy

Investment properties are carried at fair value.

Fair value is determined by a full independent valuation completed at least every three years by an independent valuer who holds a relevant professional qualification and has recent experience in the location and category of the investment property.

Properties that have not been independently valued as at balance date are carried at fair value by way of internal Directors’ valuation.

(ii) Methodology and significant assumptions

Independent valuations

The independent valuer determines the most appropriate valuation method for each property. Methods used for valuations during the year were the discounted cash flow and capitalisation of income valuation methods. Details of the independent valuations conducted as at 30 June 2007 are provided at Note 9(b).

Directors’ valuations

The directors adopt the capitalisation of income valuation method. The capitalisation rate used varies across properties. The methodology and assumptions of the internal Directors’ valuations are subject to an independent verification process by Jones Lang LaSalle.

Capitalisation of income valuation method

The capitalisation of income valuation method capitalises the current rent received, at a rate analysed from the most recent transactions of comparable property investments, adjusted to take into consideration a number of factors including:

• lease term remaining;

• the relationship of current rent to the market rent;

• the location;

• for Bunnings Warehouses, distribution of competing hardware stores;

• prevailing investment market conditions; and

• other property specific conditions.

14

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

9 Investment properties (non-current) (continued)

(b) Independent valuations – Valuers

	Valuation
Property	date	Valuer
Coffs Harbour, NSW	30.06.07	CB Richard Ellis, Mike Steur AAPI FNZPI
Cannon Hill, QLD	30.06.07	Knight Frank, Richard Nash MRICS AAPI
Frankston, VIC	30.06.07	CB Richard Ellis, Stephen Thomas APPI
Oakleigh South, VIC	30.06.07	CB Richard Ellis, Stephen Thomas APPI
Mentone, VIC	30.06.07	CB Richard Ellis, Stephen Thomas APPI
Epping, VIC	30.06.07	CB Richard Ellis, Stephen Thomas APPI
Broadmeadows, VIC	30.06.07	CB Richard Ellis, Stephen Thomas APPI
Scoresby, VIC	30.06.07	CB Richard Ellis, Stephen Thomas APPI
Sunshine, VIC	30.06.07	CB Richard Ellis, Stephen Thomas APPI

(c) Operating leases

• (i) With the exceptions of Trust properties at Maribyrnong, Blacktown, Canning Vale, Regency Park, Hawthorn, 0.4 hectares of surplus land on the Vermont South property, 0.1 hectares of land adjoining Nunawading, 1.0 hectare of land adjoining Fyshwick and the showroom complex on the Bayswater property, all of the properties listed in Note 9(a) are leased by Bunnings Group Limited.

• (ii) General information regarding the duration of leases is as follows:

• Bunnings Warehouse leases generally commit the tenant to an initial term of ten or fifteen years, followed by a number of optional terms of five years each exercisable by the tenant.

• Leases to J Blackwood and Son Limited at Blacktown, Canning Vale and Regency Park have an initial term of seven years, followed by two optional terms of five years each exercisable by the tenant. The Blacktown and Canning Vale leases allow the tenant to terminate the lease any time after three years, subject to providing 12 months’ prior notice.

• Leases of the Bayswater showrooms commit the tenant to an initial term of seven years, followed by one optional term of at least five years exercisable by the tenant.

• At 30 June 2007, the minimum lease expiry (being the duration until which the tenant’s committed term expires) for the Trust’s investment properties is 2.5 years and the maximum lease expiry is 12.3 years, with a weighted average lease expiry for the portfolio of 7.9 years.

15

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

9 Investment properties (non-current) (continued)

(c) Operating leases (continued)

• (iii) Generally, rents are reviewed annually in line with movements in Consumer Price Indices compiled by the Australian Bureau of Statistics except when a market rent review is due. Market rent reviews for Bunnings Warehouses are generally due each fifth anniversary of the commencement date and for other leases at the exercise of each option by the tenant. Generally, market rents are agreed by the landlord and tenant or if not agreed determined in accordance with generally accepted rent review criteria.

• (iv) The tenant is responsible for payment of all outgoings, which include all normal rates, taxes and assessments (other than land tax in some instances). The tenant is responsible for payment of all utilities utilised by it from all premises.

• (v) Some of the leases of Bunnings Warehouses allow for the tenant to repurchase the properties in specified circumstances:

• a. at Bayswater, Morley, Thornleigh and Vermont South properties, the tenant may repurchase the property from the landlord in the event that:

  • i. the tenant proposes a redevelopment of the relevant property for which the tenant and landlord cannot agree commercial terms and at the time the tenant and landlord are not related bodies corporate; or

  • ii. the landlord and tenant cease to be related bodies corporate.

• b. In respect to the Bunnings Warehouses at Bayswater and Vermont South properties, in the event that the tenant and landlord cease to be related bodies corporate, the tenant may only exercise the right to repurchase at the end of the initial lease term and at the end of each further option term.

If the right to repurchase is exercised in respect of any of these properties, the purchase price for the property will be a price to be agreed between the parties and failing agreement, a price determined by an appointed valuer based on the market value assuming vacant possession for the relevant property.

• (vi) There are no lease commitments receivable as at the reporting date.

• (vii) There were no contingent rentals recognised as revenues in the financial year.

• (viii) The future minimum non-cancellable rental revenues are:

Not later than one year Later than one year not later than five years Later than five years	2007 $000 2006 $000 60,556 54,745 242,224 218,980 238,681 218,483
	541,461 492,208

16

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

9 Investment properties (non-current) (continued) (d) Reconciliation Opening balance at the beginning of the financial year Capital additions Capital disposals Net gain from fair value adjustments Closing balance at the end of the financial year 10 Payables Current Trade creditors and accruals Responsible entity’s fees payable Rent received in advance (see Note 18(d)1(ii))	2007 $000 2006 $000 721,125 650,100 61,969 33,845 (755) - 167,861 37,180
	950,200 721,125
	3,074 1,310 1,392 1,139 5,225 4,469
	9,691 6,918

11 Interest bearing loans and borrowings Current Bank loans Non-current Bank loans	- 149,430
	258,552 51,469

The Trust has access to bank bill lines totalling $280 million (2006: $250 million) through facility agreements with ANZ Banking Group Limited, National Australia Bank Limited and Westpac Banking Corporation. The amount of credit unused at 30 June 2007 was $19.9 million (2006: $49.1 million). At 30 June 2007 the minimum duration of the facilities was 13 months and the maximum was 21 months with a weighted average duration of 18.7 months.

17

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

		2007	2006
12	Units on issue	$000	$000
	(a) Book value of units on issue
	Book value at the beginning of the financial year	330,233	330,233
	Book value at the end of the financial year	330,233	330,233
		000	000
	(b) Number of ordinary units on issue
	Number of fully paid units on issue at the beginning
	of the financial year	301,436	301,436
	Number of fully paid units on issue at the end of the
	financial year	301,436	301,436
	The Distribution Reinvestment Plan was suspended from February		2005
	until further notice.

13 Reserves

This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge. Opening balance at the beginning of the financial year Amounts recognised in net profit for the year Net gains on cash flow hedges for the year Closing balance at the end of the financial year	2007 2006 $000 $000 3,067 (1,204) (736) 77 3,753 4,194 6,084 3,067

18

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

2007	2006
$000	$000

		$000	$000
14	Cash flow statement
	(a) Reconciliation of operating profit to the net cash flows from		operations
	Net profit	206,978	75,246
	Net fair value change on investment properties	(167,861)	(37,180)
	(Increase)/decrease in receivables	(765)	633
	Increase/(decrease) in payables	2,733	(230)
	Net cash flows from operating activities	41,085	38,469
	(b) Reconciliation of cash
	Cash balance comprises:
	Cash (see Note 7)	5,122	6,212

15 Financial risk management objectives and policies

The Trust’s principal financial instruments, other than derivatives, comprise of bank loans.

The main purpose of these financial instruments is to raise finance for the Trust’s operations. The Trust has various other financial assets and liabilities such as other receivables and payables, which arise directly from its operations. The Trust also enters into derivative transactions (interest rate swaps) to manage the interest rate risks arising from the Trust’s operations. It is the Trust’s policy that no trading in financial instruments shall be undertaken. The main risk arising from the Trust’s financial instruments is cash flow interest rate risk. The Board reviews and agrees policies for managing this risk and this is summarised below.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements.

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 2007 the fixed rates varied from 5.09 per cent to 6.67 per cent (2006: 4.97 per cent to 6.14 per cent) and the floating rates were at bank bill rates.

16 Financial instruments

The Trust has recognised certain financial instruments in the accounts. These financial instruments are disclosed in Notes 7, 8, 10 and 11.

19

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

16 Financial instruments (continued)

(a) Interest rate risk exposure

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

2007 Financial assets Cash Loan to Bunnings Group Limited Derivative financial instruments Financial liabilities Interest bearing liabilities Payables Weighted average effective interest rate Active swaps Delayed start swaps 2006 Financial assets Cash Loan to Bunnings Group Limited (Note 8) Derivative financial instruments Financial liabilities Interest bearing liabilities Derivative financial instruments Payables (Note 10) Weighted average effective interest rate Active swaps Delayed start swaps	Fixed interest maturing in: Non- Variable interest $000 1 year or less $000 1 to 2 years $000 2 to 3 years $000 3 to 4 years $000. 4 to 5 years $000 Over 5 years $000 interest bearing $000 Total $000 5,122 - - - - - - - 5,122 - - - - - - - 850 850 6,105 - - - - - - - 6,105
	11,227 - - - - - - 850 12,077
	258,552 - - - - - - - 258,552 - - - - - - - 4,466 4,466
	258,552 - - - - - - 4,466 263,018
	6.07% 6.07% (212,000) 35,000 37,000 125,000 5,000 - 10,000 - - (60,000) - - - - 20,000 40,000 - - 6,212 - - - - - - - 6,212
	- - - - - - - 850 850 3,081 - - - - - - - 3,081
	9,293 - - - - - - 850 10,143
	200,899 - - - - - - - 200,899 34 - - - - - - - 34 - - - - - - - 2,449 2,449
	200,933 - - - - - - 2,449 203,382
	5.89% 5.89% (177,000) 20,000 35,000 37,000 75,000 - 10,000 - - (70,000) - - - 5,000 - 65,000 - -

20

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

16 Financial instruments (continued)

(b) Concentration of credit risk

The credit risk associated with 99.4 percent of the rental income is with two tenants, Bunnings Group Limited 96.8 percent, and J Blackwoods and Son Limited 2.6 percent, wholly owned subsidiaries of Wesfarmers Limited. Bunnings Group Limited, J Blackwood and Son Limited, 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.

(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.

	2007	2007	2006	2006
	Carrying	Net fair	Carrying	Net fair
	amount	value	amount	value
	$000	$000	$000	$000
Current asset
Interest rate swaps	143	143	36	36
Non-current asset
Interest rate swaps	5,962	5,962	3,045	3,045
Current liability
Interest rate swaps	-	-	34	34

21

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

17 Capital expenditure commitments

Capital expenditure commitments
Estimated capital expenditure contracted for at balance date, but not provided for, payable: Not later than one year Related Parties Later than one year and not later than five years Related Parties	2007 $000 2006 $000 7,450 6,709 30,700 6,700
	38,150 13,409

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 Group Limited 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.

Mile End, South Australia

In October 2006, the Trust committed to upgrade works at the Mile End property with a cost of $2.4 million. The incremental rent for the property will be $188,000 per annum or 8% of the final development cost.

Morayfield, Queensland

In December 2006, the Trust committed to upgrade works at the Morayfield property with a cost of $3.4 million. The incremental rent for the property will be $272,000 per annum or 8% of the final development cost.

Hawthorn, Victoria

In April 2007 the Trust acquired for $20.5 million inclusive of acquisition costs, a 0.84 hectare development site in Hawthorn, Victoria.

A Bunnings Warehouse is to be developed on the site, with completion due by the middle of 2009 at a cost to the Trust of $24.0 million, to be paid on completion. Under the terms of the development agreement, the developer will be responsible for outgoings and pay the Trust land rent to cover holding costs until the Bunnings Warehouse is completed. Upon completion of the development, Bunnings Group Limited will pay the Trust an annual rental of $2,710,000 per annum.

22

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

Mechanical Ventilation

The Trust has committed to fund $1.5 million for the installation of various mechanical ventilation systems into seven of the existing Trust-owned Bunnings Warehouse stores.

Regency Park, South Australia

The trust has committed to fund a minor expansion of the J Blackwood and Son Limited premises at Regency Park at a cost of $150,000. Upon completion of the works, Blackwoods will pay the Trust an additional $11,000 per annum.

23

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

18 Director and executive disclosures and related party disclosures

(a) Details of key management personnel

The following persons were key management personnel of the responsible entity, Bunnings Property Management Limited, during the financial year:

Chairman – non-executive

W H Cairns

Non-executive directors

J A Austin P J Johnston P J Mansell

General manager

G W Gernhoefer

(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 lodged with ASIC and is available to unitholders on request.

For the financial year ended 30 June 2007, 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.

Remuneration expenses of the directors and executives 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.

(c) Unit holdings

(c) Unit holdings	(c) Unit holdings
Key management		Balance at the	Acquired	Sold	Balance at
personnel		beginning of the	during	during	the end of
		year	the year	the year	the year
J A Austin		35,000	-	-	35,000
W H Cairns		49,089	-	-	49,089
P J Johnston		45,303	-	-	45,303
P J Mansell		100,000	-	-	100,000
Total key personnel	management	229,392	-	-	229,392

24

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

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

(c) Unit holdings (continued)

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

2. (i) Wesfarmers Investments Pty Ltd, a controlled entity of Wesfarmers Limited, holds 68,250,435 (2006: 68,250,435) units in the Trust, representing 22.64 per cent of the units on issue at 30 June 2007 (2006: 22.64 per cent).

3. (ii) During the year ended 30 June 2007 rent and other property income of $58,493,469 (2006: $57,494,898) was received from Bunnings Group Limited, a controlled entity of Wesfarmers Limited. The amount includes an amount received in advance of $4,939,512 (2006: $4,469,204).

4. (iii) During the year ended 30 June 2007 the Trust acquired three properties from J Blackwood and Son Limited, a controlled entity of Wesfarmers Limited, for $19,358,000. The purchase price was consistent with independent valuations.

5. (iv) During the year ended 30 June 2007 rent of $698,884 (2006 $0) was received from J Blackwood and Son Limited, a controlled entity of Wesfarmers Limited.

6. (v) The responsible entity’s fee of $4,681,912 (2006: $3,962,210) is paid/payable to the responsible entity. During the year the responsible entity waived its entitlement to fees in respect of a development site at Hawthorn Victoria, acquired in April 2007. For the period from the date of acquisition to 30 June the amount of fee the responsible entity has waived is $19,791.

7. (vi) During the year ended 30 June 2006 the Trust provided a loan of $850,000 to Bunnings Group Limited to fund the purchase of a parcel of land adjacent to the Vermont South Bunnings Warehouse. The land was exchanged at fair value and the terms of the agreement include charging Bunnings Group Limited an access fee (8.0 per cent annually) and management fee (0.6 per cent), until such time as the parcel of land can be sold to an external party, at which time Bunnings Group Limited will repay the loan.

8. During the year Freehills, of which Mr P J 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 $7,565 (2006: $4,047).

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

25

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007

Bunnings Warehouse Property Trust Notes to the Financial Statements

19 Additional information

(a) Principal activities and investment policy of the Trust

To invest in well located geographically diversified properties with long term leases to substantial tenants, predominantly in the bulky goods retail sector with the purpose of providing unitholders with a secure, growing income stream and capital growth.

(b) Commencement and life of the Trust

The Trust is a unit trust of no fixed duration and was constituted under a Trust Deed dated 18 June 1998 as amended. The Trust is managed by Bunnings Property Management Limited. Both the Trust and the responsible entity are domiciled in Australia.

(c) Segment Reporting

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

(d) Economic dependency

99.4 per cent (2006: 100 per cent) of the Trust’s rental income received during the year was from Bunnings Group Limited and J Blackwood and Son Limited, both controlled entities of Wesfarmers Limited.

(e) Subsequent events

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.

(f) Contingent assets and liabilities

No contingent assets or liabilities exist at balance date.

(g) Corporate information

The financial report of Bunnings Warehouse Property Trust (the Trust) for the year ended 30 June 2007 was authorised for issue in accordance with a resolution of the directors on 8 August 2007.

26

N:\BPML\BWPT\Annual Reports\30 Jun 07\Financials\Stat Accounts Draft v0_10.2 8 Aug 07 - ASX Version.doc

8 August 2007