20 February 2004

Half Year Report - Six Months to 31 December 2003

Bunnings Property Management Limited, the responsible entity for the Bunnings Warehouse Property Trust (the "Trust"), advises that the attached Half Year Report for the six months to 31 December 2003 will be mailed to unitholders on Wednesday 25 February 2004.

For further information please contact:

Mr Andrew Hopkins Manager, Bunnings Property Management Limited

Telephone: (08) 9327 4318 E-mail: [email protected] Website: www.bunningspropertytrust.com.au

THE TRUST PERFORMED STRONGLY IN THE SIX MONTH PERIOD TO 31 DECEMBER 2003, WITH INCOME UP 30 PER CENT TO \$21.1 MILLION AND NET PROFIT UP 23 PER CENT TO S14.9 MILLION.

DAME TANK TAN

Glandas Warerouse Property Trust ARSN 088 581 097

Elshandlin Fally Bushings Property Manage mestat ABN 26 082 856 424

49 PROPERTIES OWNED, AND STILL ACQUIRING

The Bunnings Warehouse Property Trust is focused on warehouse retailing properties and, in particular, Bunnings Warehouses tenanted by Bunnings Pty Ltd, a whollyowned subsidiary of Wesfarmers Limited.

Bunnings Property Management Limited, the responsible entity for the Trust, is committed to maximising value for all unitholders by providing a secure, growing income stream and capital growth.

FINANCIAL PERFORMANCE

TOTAL ASSETS

Half-year ended 31 December 2003 2002 Total income $21.1$ 16.2 $\mathbb{S}$ m $12.1$ Operating profit 14.9 \$m Distribution per ordinary unit $5.51$ 5.15 cents Tax advantaged component 27.27 32.45 $\frac{dy}{dx}$ Total assets $\mathbb{S}$ m 501.8 385.9 Borrowings $\sin$ 140.2 79.8 Unitholders' equity $$m$ 341.3 293.1 % $20.7$ Gearing (debt to total assets) 28.0 Number of units on issue 289 261 m Number of unitholders $11.077$ 10,310 Net tangible asset backing per unit S $1.18$ 1.12 Unit price at 31 December \$ $1.52 -$ 1.33 Management expense ratio (annualised) ₩ 0.74 0.73

FOUR PURCHASED ONE NEW DEVELOPMENT SITE AND COMPLETED TWO WAREHOUSE STORES AND A BUNNINGS DISTRIBUTION CENTRE

HALF YEAR DISTRIBUTION INCREASED FROM 5.15 CENTS TO 5.51 CENTS PER ORDINARY UNIT

S1.18

NET TANGIBLE ASSET BACKING PER UNIT INCREASED BY FOUR CENTS TO \$1.18 SINCE 30 JUNE 2003

REPORT TO UNITHOLDERS

A solid financial result in

The directors of Bunnings Property Management Limited, the responsible entity for the Bannings Warehouse Property Trust, are pleased to present this interim report to unitholders covering the financial results of the Trust for the six months to 31 December 2003 and a brief overview of the activities of the Trust.

An active six months for the Trust was highlighted by the successful completion of market rent reviews on 10 Trust properties which resulted in an average 12.0 per cent rental uplift, strong uptake in a unit purchase plan which raised \$25.0 million, the completion of several new developments, the upward revaluation of three properties, and the acquisition of a new development site.

These factors, along with solid financial results, have been reflected in the improved performance of the Trust's unit price on the Australian Stock Exchange and have combined to strengthen the position of the Trust in the property trust sector of the market.

Financial results

Total income for the period was \$21.1 million, up by 30 per cent from last year's \$16.2 million due to the additional income received from three new property developments and a new development site, the programmed rental escalation of a number of properties in the portfolio, and market rent reviews that were completed on 10 properties.

The Trust reported a net profit of \$14.9 million for the half-year, an increase of 23 per cent on the profit of \$12.1 million earned in the comparative period last year.

Borrowing costs of \$4.2 million were 55 per cent higher than the comparative six months due to an increased level of debt and higher interest rates during the period. However, the gearing level of 28 per cent is comfortably within the target gearing range of the Trust.

The management expense ratio, which is based on annualised expenses other than borrowing costs, was marginally higher than the comparative period. The increase resulted largely from expenses associated with market rent reviews conducted on a number of Trust properties.

Interim distribution

An interim distribution of 5.51 cents per ordinary unit has been declared, which exceeds the 5.15 cents per unit in the previous comparative period and the forecast of 5.41 cents per unit released to the Australian Stock Exchange in December 2003.

The difference is due fargely to a number of market rent reviews, determined after the release of the estimate.

New units issued as a result of the 2003 unit purchase plan do not qualify for an interim distribution, however they rank equally with ordinary units from 1 January 2004.

Interim distributions will be made on 25 February 2004 to unitholders on the Trust's register as at 5.00 pm on 31 December 2003. The estimated tax advantaged component of the distribution is 27.27 per cent.

Property acquisitions and developments

During the half-year, the Trust acquired a development site at Maitland in the Hunter Valley region of New South Wales. Development work commenced on site during the period.

The Trust also completed Bunnings Warehouse developments at Rocklea in Brisbane and at Port Macquarie in New South Wales, and a distribution centre for Bunnings at Hemmant, in Brisbane. Capital expenditure on the three developments was \$23.1 million.

Acquisition and development of these properties is consistent with the responsible entity's strategy of acquiring properties with long term leases to substantial tenants, ensuring that the properties are well located and the portfolio is geographically diversified. At 31 December 2003 the average lease expiry term of the portfolio was 11.3 years.

During the period the Trust disposed of one hectare of surplus land at the Oakleigh South property in Melbourne. The disposal was in accordance with the agreement between the Trust and Bunnings for purchase and development of the property, with proceeds to the Trust of \$1.25 million.

Capital raising

During the six month period the Trust issued 18.2 million units by way of an underwritten unit purchase plan to retail and institutional investors at an issue price of \$1.37. More than 39 per cent of unitholders participated in the unit purchase plan. The \$25.0 million in capital that was raised has been applied to reduce debt and fund property developments.

Market rent reviews

During the period, 10 market rent reviews were completed. The reviews resulted in an average 12.0 per cent uplift on the passing rent of the properties. These were the first reviews conducted on Trust properties, which all have leases which call for reviews on the fifth anniversary of the lease commencement date.

The rental reviews on properties at Burleigh Heads, Southport and Underwood in Queensland were negotiated with the tenant. Bunnings Pty Ltd, and the results were consistent with independent advice obtained by Bunnings Property Management Limited.

The rental reviews of properties at Altona, Fountain Gate, Nunawading and Sandown in Victoria, as well as Balcatta, Joondalup and Mandurah in Western Australia, were all determined by an independent valuer appointed by the Trust and Bunnings Pty Ltd.

Rent review notices have been served on Bunnings Pty Ltd on a further 10 properties, and results from those reviews will be released as they are completed.

Revaluations

In November 2003, three properties in the Trust's portfolio were revalued by an independent valuer. These properties, at Burleigh Heads, Southport and Underwood in Queensland, were revalued following the completion of market rent reviews. As a result of the revaluations, the average book value of the properties has been increased by 20.8 per cent. The revaluations have contributed to an increase in the underlying net tangible asset backing of the Trust's units of four cents to \$1.18 per unit.

Financial position

As at 31 December 2003 the Trust's total assets had grown to \$501.8 million with unitholders' equity of \$341.3 million and total liabilities of \$160.5 million.

The Trust's gearing ratio (debt to total assets) at 31 December 2003 was 28.0 per cent, and within the preferred range of 20 to 40 per cent.

Unitholder return

The Trust's unit price at 31 December 2003 was \$1.52, up from \$1.33 at the same time last year.

The Trust has performed strongly in comparison to other trusts in the S&P/ASX 200 Property Index for the 2003 calendar year, providing a total return to unitholders of 22.4 per cent.

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, taking additional cover to meet debt related commitments.

At 31 December 2003, 98 per cent of the Trust's interest bearing debt was hedged. The average interest rate paid on debt excluding margins for the six month period was 5.7 per cent.

Outlook

Continued growth in revenue and earnings is expected as a result of more properties being added to the portfolio, as well as programmed rental escalations and market rent reviews.

The ongoing expansion of the Bunnings hardware business is expected to continue to provide the Trust with investment opportunities. It is likely that 8 to 12 Bunnings Warehouse stores per annum will be opened in the near future in Australia and New Zealand.

The Trust will also continue to explore the acquisition of established Bunnings Warehouse properties owned by Wesfarmers, as a result of the acquisition of a number of BBC Hardwarehouses, as well as Bunnings Warehouse properties owned by parties not related to Wesfarmers.

Market rent review results are scheduled on a further 10 properties prior to 30 June 2004, and on seven properties in the 2004/05 financial vear.

The Trust's programme of revaluing properties at least every three vears will continue, and under that programme a further four properties are due for revaluation by 30 June 2004, Additional revaluations may occur should they be warranted as a result of market rent review results, or property market conditions.

Internet site

The Bunnings Warehouse Property Trust internet site, www.bunningspropertytrust.com.au is a useful source of information for unitholders. It includes details of the Trust's property portfolio, current activities and future prospects.

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

Distribution Reinvestment Plan

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

New units are issued under this plan at a discount to the market price without brokerage fees or other costs. The directors have determined that the current discount of 2.5 per cent will remain for the interim distribution payable in February 2004, representing an issue price of \$1.53.

If you wish to have your distributions reinvested in this manner please contact our unit registry for more details and an application form.

Thank you for your ongoing support of the Bunnings Warehouse Property Trust.

For Bunnings Property Management Limited.

BILL CAIRNS CHAIRMAN

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ANDREW HOPKINS MANAGER

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: For the half-year ended 31 December 2003

	December 2003	December 2002
	\$000	\$000.

Statement of financial
performance
Revenue and expenses from
ordinary activities
Rental income	19,783	15,262
Other property income	1,201	$-854$
interest income	97	85
	21,081	16,201
Responsible entity's fees	1,425	1,068
Borrowing costs	4,237	2,728
Other operating expenses	480	299
Net profit attributable to unitholders of the
Bunnings Warehouse Property Trust	14,939	12,106
Net increase in asset revaluation reserve	6,200	474
Total changes in equity other than those
resulting from transactions with unitholders
as unitholders attributable to unitholders of the Bunnings Warehouse Property Trust	21,139	12.580

Statement of distribution
Net profit attributable to unitholders of the
Bunnings Warehouse Property Trust	14.939	12,106
Undistributed income at the beginning of the financial period	7
Total available for distribution.	14.946	12,107
Distribution paid and payable -	14,941	12,101
Undistributed income at the end
of the financial period	5	6
Basic and diluted earnings per unit .
(cents per unit)	5.4	$5.0\,$
Interim distribution per unit for the half-year, excluding units issued under the Unit
Purchase Plan (cents per unit)	5.51

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As at 31 December 2003

	December	June	December
	2003	2003	2002
	\$000	\$000	\$000

Current assets
Cash assets	4.429	4,783	1,070
Other	575	243	2,204
Total current assets	5,004	5,026	3,274

Non-current assets
Investment properties [1]	496,779	466,539	382,667
Total non-current assets	496,779	466,539	382,667
Total assets.	501,783	471,565	385,941

Current liabilities
Pavables	5.271	5,412	930
Distribution payable	14,941	14,233	12,101
Total current liabilities	20,212	19,645	13,031

Non-current liabilities
Payables	10,605	13,726
Interest bearing liabilities	129,636	135,552	79,772
Total non-current liabilities	140,241	149,278	79,772
Total liabilities	160,453	168,923	92,803
Net assets	341,330	302,642	293,138

Unitholders' funds
Contributed equity	311,772	279,282	272,787
Asset revaluation reserve	29,553	23,353	20,345
Undistributed income reserve	5
Total unitholders' funds	341,330	302,642	293,138

Net tangible asset backing	\$1.18		$- $1,12$
per unit		$$1.14$ .

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

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ROMANISTA STAPERENT For the half-year ended 31 December 2003

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2003	2002
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(1,557)	(1,048)
(1, 376)	(1,041)
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For the half-year ended 31 December 2003

1 Basis of preparation of the condensed financial report

The half-year financial report is a general purpose financial report which has been prepared in accordance with the requirements of the Constitution of the Bunninos Warehouse Property Trust (the Trust), the Cornorations Act 2001, applicable Accounting Standards including AASB 1029: Interim Financial Reporting, and other mandatory professional reporting requirements (Brgent 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.

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period. The half-year financial report does not include notes of the type normally included in an annual report.

It is recommended that the half-year financial report is read in conjunction with the annual financial statements as at 30 June 2003 together with public announcements made by the Trust in accordance with the continuous disclosure obligations arising under the Australian Stock Exchange Listing Rules and the Corporations Act 2001.

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

2 Contingent liabilities

There have been no major changes since the last annual report.

3 Non cash financing activities

	December	. December
	2003	$-2002$

Unit capital issues
Distribution Reinvestment Plan	7,667		٠.

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4 Segment reporting

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

For the half-year ended 31 December 2003.

In accordance with the Corporations Act 2001, Bunnings Property Management Limited (ABN 26 082 856 424), as responsible entity for the Bunnings Warehouse Property Trust (the Trust), provides this report for the half-year ended 31 December 2003.

Directors

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

W H.Caims (Chairman)

P.J.Mansell (Director)

R W McCuaig (Director)

G T Tilbrook (Director)

Review and results of operations

	December	∵… December
	2003	2002
		\$000
Net profit	14,939	-12,106
Distributable Income	14,946	12,107

The interim distribution is 5.51 cents per ordinary unit (last year 5.15 cents). This interim distribution will be made on 25 February 2004.

Rounding

The amounts contained in this report and in the condensed financial statements for the half-year have been rounded to the nearest thousand dollars under the option available to the Trust under ASIC Class Order 98/0100.

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

W H Cairns

Chairman -

Perth, 13 February 2004

For the half-year ended 31 December 2003 In accordance with a resolution of the directors of Bunnings Property Management Limited, responsible entity for the Bunnings Warehouse Property Trust (the Trust), I state that in the opinion of the directors: how (a) the condensed financial statements and notes of the Trust are in accordance with the Corporations Act 2001, including: With 价。 giving a true and fair view of the Trust's financial position as at 31 December 2003 and of its performance for the half-year. ended on that date: and complying with Accounting Standard AASB 1029: Interim Financial 张): Reporting and Corporations Requlations 2001; and (b) there are reasonable grounds to believe that the Trust will be able to pay its debts as and when they become due and payable. For and on behalf of the board of Bunnings Property Management Limited. W H Cairns Chairman Perth, 13 February 2004

To the unitholders of Bunnings Warehouse Property Trust

Scope

The financial report

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the directors' declaration for the Bunnings Warehouse Property Trust (the Trust), for the half-year ended 31 December 2003. .

Responsibility of directors

The directors of Bunnings Property Management Limited are responsible for preparing a financial report that gives a true and fair view of the financial position and performance of the Trust, and that complies with Accounting Standards AASB 1029 "interim Financial Reporting", in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

Review approach

We conducted an independent review of the financial report in order to make a statement about it to the unitholders of the Trust and in order for the Trust to lodge the financial report with the Australian Stock Exchange and the Australian Securities and Investments Commission. All and the control of والمرابي أيهادوه

Our review was conducted in accordance with Australian Auditing Standards applicable to review engagements, in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with the Corporations Act 2001, Accounting Standard AASB 1029 "Interim Financial Reporting" and other mandatory financial reporting requirements in Australia, so as to present 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. ......

A review is limited primarily to inquiries of Bunnings Property Management Limited's personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Independence We are independent of the Trust, and have met the independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001, Statement Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the financial report of the Bunnings Warehouse Property Trust is not in accordance with: (a) the Corporations Act 2001, including: (i) giving a true and fair view of the financial position of the Trust at 31 December 2003 and of its performance for the half-year ended. on that date; and (ii) complying with Accounting Standard AASB 1029 "Interim Financial Reporting" and the Corporations Regulations 2001; and (b) other mandatory financial reporting requirements in Australia. کمایستان ۲۰ ربم Ernst & Young G H Meyerowitz Partner Perth, 13 February 2004

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