BWP GROUP — Interim / Quarterly Report 2015

Feb 10, 2015

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HALFYEAR REPORT 2014/15 SIX MONTHS TO 31 DECEMBER 2014

OVERVIEW

CONTENTS

OVERVIEW > HALF-YEAR SUMMARY BUSINESS REVIEW > FINANCIAL & MARKET PERFORMANCE > OUR PROPERTY PORTFOLIO > REPORT TO UNITHOLDERS FINANCIAL REPORT > FINANCIAL STATEMENTS UNITHOLDER INFORMATION >DIRECTORY >INVESTOR INFORMATION					04 05 06 08 16 33 34

BWP TRUST

ARSN 088 581 097

RESPONSIBLE ENTITY

BWP Management Limited ABN 26 082 856 424

AUSTRALIAN FINANCIAL SERVICES LICENCE No. 247830

bwptrust.com.au

BWP TRUST HALF-YEAR REPORT 2014/15

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BWP Trust aims to provide a premium commercial real estate investment product, delivering unitholders a secure and growing income stream and long-term capital growth.

SPRINGVALE, VIC

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BWP TRUST HALF-YEAR REPORT 2014/15

OVERVIEW

HALF-YEAR SUMMARY

• Income of $71.2 million for the six months – up 19.1 per cent on the previous corresponding period

• Distributable profit of $49.1 million for the six months – up 14.6 per cent on the previous corresponding period

• Interim distribution of 7.67 cents per unit – up 12.3 per cent on the previous corresponding period

• Completed the development of three Bunnings Warehouse stores at Manly West, West Ipswich and Brendale in Queensland

• Agreed to acquire from Bunnings, a Bunnings Warehouse development site in Australind in Western Australia, and to upgrade the Lismore Bunnings Warehouse store in New South Wales

• Market rent reviews on 13 tenancies were completed during the six months – at a weighted average 8.8 per cent increase in annual rent; this included market rent reviews concluded on 12 Bunnings Warehouses during the period (nine of which were due in the previous financial year) – at a weighted average 8.6 per cent increase in annual rent

• Like-for-like rental growth of 2.7 per cent for the 12 months to 31 December 2014, compared to 3.8 per cent for the previous year

• Repriced existing bank facilities and reduced unused facilities by $45 million, resulting in a weighted average cost of debt of 5.79 per cent for the six month period – down from 6.65 per cent in the previous corresponding period

• Weighted Average Lease Expiry of 6.8 years at 31 December 2014 (30 June 2014: 6.9 years), with 99.4 per cent occupancy

• Net revaluation gain on the property investment portfolio of $68.2 million

• Net Tangible Assets of $2.18 per unit at 31 December 2014 (30 June 2014: $2.07)

• Gearing (debt/total assets) 23.4 per cent at 31 December 2014 (30 June 2014: 24.4 per cent)

DISTRIBUTION PER UNIT (CENTS)

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----- Start of picture text -----

10/11 6.18 [1] 5.80
11/12 6.63 8.04 [2]
12/13 7.00 7.14 Interim distribution
13/14 6.83 7.83 [3]
14/15 7.67
Final distribution
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• 1 FY10/11 interim distribution includes a distribution of capital profits of

• 0.09 cents per unit, resulting from the sale of an investment property.

• 2 FY11/12 final distribution includes a distribution of capital profits of

• 1.17 cents per unit, resulting from the sale of an investment property.

• 3 FY13/14 final distribution includes a partial distribution of capital profits of

• 0.13 cents per unit, resulting from the sale of investment properties.

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BWP TRUST HALF-YEAR REPORT 2014/15

BUSINESS REVIEW

FINANCIAL PERFORMANCE

Half-year ended 31 December		2014	2013
Total income	$m	71.2	59.8
Net proft	$m	117.3	66.7
Less: net unrealised gains in fair
value of investmentproperties	$m	(68.2)	(23.8)
Distributableproft for theperiod	$m	49.1	42.9
Distribution per ordinary unit	cents	7.67	6.83
Total assets	$m	1,926.0	1,658.8
Borrowings	$m	451.2	327.7
Unitholders’ equity	$m	1,392.2	1,263.9
Gearing (debt to total assets)	%	23.4	19.8
Number of units on issue	m	640	627
Number of unitholders		23,974	22,072
Net tangible asset backing per unit	$	2.18	2.02
Unit price at 31 December	$	2.79	2.19
Management expense ratio	%	0.63	0.66
(annualised)

MARKET PERFORMANCE

BWP Trust (“the Trust”) outperformed the broader Australian Real Estate Investment Trust (“A-REIT”) sector during the half-year, with a 15.5 per cent total return for the six months to 31 December 2014, compared with 12.7 per cent for the benchmark S&P/ASX 200 A-REIT index (source: UBS Australia).

The Trust also outperformed the A-REIT sector for total returns over one, three, five and ten year periods, as shown in the following table:

Total returns[1] compared to market (source: UBS Australia)

Periods ended	1 year	3 years	5 years	10 years
31 Dec 2014	(%)	(%)2	(%)2	(%)2
BWP	34.7	25.5	16.1	11.8
S&P / ASX 200 A-REIT
Accumulation Index	27.0	21.9	12.2	2.0

1 Total returns include movement in security price and distributions (which are assumed to be reinvested).

2 Annual compound returns.

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BWP TRUST HALF-YEAR REPORT 2014/15

BUSINESS REVIEW

OUR PROPERTY PORTFOLIO

PORTFOLIO SUMMARY

		Gross
	Land	lettable	Annual
As at 31 December 2014	area	area1	rental2	Valuation
	ha	sqm	$000	$000
Western Australia
Albany3	3.2	13,660	848	13,200
Balcatta	4.3	25,439	2,235	33,100
Belmont	2.2	10,381	1,366	19,500
Bibra Lake	3.2	13,977	1,647	22,000
Cockburn	2.6	12,839	1,530	21,900
Ellenbrook	3.2	15,337	1,766	25,200
Geraldton	3.3	17,874	1,299	16,200
Geraldton Showrooms	1.2	1,511	241	3,000
Harrisdale	3.7	16,455	2,020	26,000
Joondalup	2.5	13,358	1,458	17,700
Mandurah	2.5	12,097	1,517	20,200
Midland	2.4	13,694	1,611	22,200
Mindarie	3.1	14,479	1,611	22,200
Morley	1.8	9,852	1,290	16,100
Port Kennedy	2.8	11,675	1,437	18,500
Rockingham	3.3	17,179	1,634	22,500
Total - WA	45.3	219,807	23,511	319,500
Victoria
Altona4	3.4	9,254	1,155	16,357
Bayswater	4.9	17,677	2,133	29,500
Blackburn (Industrial)	4.1	20,401	947	17,000
Broadmeadows	1.8	12,765	1,755	24,800
Caroline Springs	3.0	14,319	1,584	22,600
Coburg	4.9	24,728	4,704	60,400
Craigieburn	4.6	16,764	1,485	21,200
Croydon	3.8	13,292	1,841	26,300
Dandenong	3.1	12,313	1,572	19,600
Epping	3.1	12,027	1,235	15,000
Fountain Gate	3.2	12,624	1,469	21,000
Frankston	3.7	13,843	2,013	27,800
Hawthorn	0.8	7,462	3,105	44,300
Maribyrnong (land)5	3.4	-	-	7,562
Mentone	2.5	11,814	1,584	21,800
Mornington	4.0	13,324	1,608	22,200
Northland	3.3	14,460	1,877	26,800
Nunawading6	3.4	14,766	2,290	35,487
Oakleigh South	4.4	16,949	1,898	23,000
Pakenham	3.5	14,867	1,783	22,800
Port Melbourne	3.0	13,846	1,975	28,400
Scoresby	3.4	12,515	1,833	25,300
Springvale	3.2	13,458	1,906	27,200
Sunbury	3.4	15,185	1,661	23,700
Vermont South	4.8	16,634	2,167	28,900
Total - VIC	86.7	345,287	45,580	639,006
Australian Capital Territory
Fyshwick7	2.8	6,648	1,209	18,900
Tuggeranong	2.8	11,857	1,765	25,200
Total - ACT	5.6	18,505	2,974	44,100
South Australia
Mile End	3.3	14,888	2,286	30,400
Noarlunga	2.6	15,054	1,482	18,500
Total - SA	5.9	29,942	3,768	48,900

BWP TRUST HALF-YEAR REPORT 2014/15

6

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		Gross
	Land	lettable	Annual
As at 31 December 2014	area	area1	rental2	Valuation
	ha	sqm	$000	$000
New South Wales
Artarmon	0.7	5,746	1,611	23,000
Belmont North	4.0	12,640	939	10,700
Belrose	2.5	8,888	1,995	28,500
Blacktown (Industrial)	1.3	8,346	708	6,600
Coffs Harbour	2.5	8,657	883	7,210
Dubbo	4.5	16,344	1,444	17,700
Greenacre	2.2	14,149	2,403	34,300
Hoxton Park	3.7	26,508	3,500	43,100
Lismore	2.1	10,076	935	11,000
Maitland	3.7	12,797	1,287	16,100
Minchinbury8	3.6	12,048	1,766	27,757
Port Macquarie	2.0	8,801	989	12,400
Rydalmere	4.7	16,645	2,810	41,600
Thornleigh	1.2	5,301	1,321	17,600
Villawood	2.6	10,886	1,591	20,500
Wagga Wagga	3.6	13,774	1,311	16,900
Wallsend	5.6	16,863	1,859	26,600
Wollongong	2.7	10,811	1,388	17,400
Total - NSW Queensland Arundel Bethania Brendale Browns Plains Burleigh Heads Cairns Cannon Hill Fairfeld Waters Gladstone Hervey Bay Manly West Morayfeld Mount Gravatt North Lakes Rocklea Smithfeld Southport Townsville North Underwood West Ipswich Total - QLD Grand Total	53.2 3.7 3.2 4.4 4.7 3.3 2.4 3.6 2.9 5.5 3.0 2.1 3.2 2.7 4.1 3.2 3.1 3.5 3.4 2.9 2.2 67.1 263.8	219,280 15,661 13,494 14,879 18,398 12,428 12,917 16,556 13,645 21,511 11,824 12,870 12,507 11,824 18,861 14,404 13,095 12,431 14,038 12,245 14,977 288,564 1,121,385	28,740 2,184 1,776 1,878 2,767 1,698 1,241 2,045 1,519 3,010 1,218 2,050 1,676 1,163 2,493 2,036 1,421 1,698 1,591 1,574 2,275 37,310 141,883	378,967 28,300 23,300 26,800 30,800 17,900 12,000 27,700 19,800 32,200 14,100 28,100 22,100 13,600 33,400 27,200 18,300 22,400 21,200 19,000 31,400 469,600 1,900,073

Note: Totals and Grand Total adjusted for rounding

• 1 For Bunnings Warehouses this comprises the total retail area of the Bunnings Warehouse.

• 2 Annual rental figures do not include access fees detailed below.

• 3 Includes adjoining land (1.2 hectares) for which Bunnings Group Limited pays the Trust an access fee of $211,882 per annum.

• 4 Includes additional land (1.0 hectare) for which Bunnings Group Limited pays the Trust an access fee of $221,636 per annum.

• 5 Development site for which Bunnings Group Limited pays the Trust an access fee of $602,482 per annum.

• 6 Includes adjoining properties (0.1 hectares) for which Bunnings Group Limited pays the Trust an access fee of $126,935 per annum.

• 7 Includes adjoining property (1.0 hectare) for which Bunnings Group Limited pays the Trust an access fee of $301,020 per annum.

• 8 Includes adjoining property (0.5 hectares) for which Bunnings Group Limited pays the Trust an access fee of $340,551 per annum.

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BWP TRUST HALF-YEAR REPORT 2014/15

BUSINESS REVIEW

REPORT TO UNITHOLDERS

The directors of BWP Management Limited, the responsible entity for the BWP Trust, are pleased to present this interim report to unitholders covering the financial results and activities of the Trust for the six months to 31 December 2014.

Activities during the period included; completion of three Bunnings Warehouse developments in Queensland, announcement of the acquisition of a Bunnings Warehouse development site in Australind in Western Australia, agreement to upgrade the Bunnings Warehouse store in Lismore in New South Wales, completion of 13 market rent reviews, repricing of existing bank facilities and revaluation of the fair value of the property investment portfolio.

On 27 January 2015, the proposed appointments of Erich Fraunschiel and Michael Steur as non-executive directors of the responsible entity were announced. The appointments became effective on 1 February 2015.

Mr Fraunschiel, a professional non-executive director since 2002, has held board positions with a number of listed and unlisted companies. He is currently a director of WorleyParsons Limited, a global engineering, project management and advisory company. Past directorships include Woodside Petroleum Limited, Wesfarmers General Insurance Limited, Rabobank Australia Limited, Rabobank New Zealand Limited, West Australian Newspaper Holdings Limited and Foodland Associated Limited. Until his retirement in 2002, Mr Fraunschiel was a senior executive of Wesfarmers Limited, including Executive Director and Chief Financial Officer. Prior to this he was involved in investment banking, project lending and venture capital investment. It is intended that Mr Fraunschiel will succeed Mr John Austin as Chairman following Mr Austin’s retirement in late 2015.

Mr Steur, an experienced valuer by background, has over 30 years general property services experience, primarily in New Zealand and Australia, and more recently in Asia, including Hong Kong, China, Japan, Malaysia and Singapore. Between 1988 and 2009, he was director of Richard Ellis Ltd New Zealand (now CBRE). He moved to Sydney in 2001 to take control of CBRE’s Australian and New Zealand valuation and advisory business. In 2009, he was appointed Executive Managing Director of CBRE’s Asia Pacific Valuation and Advisory service business. He retired from this role in June 2014 to pursue non-executive Board opportunities. Mr Steur has been a non-executive director of the New Zealand listed Kiwi Property Group Limited since 2010.

FINANCIAL RESULTS

FINANCIAL PERFORMANCE

Total income for the period was $71.2 million, an increase of 19.1 per cent over the previous corresponding period. The increase in income was due to growth of the property portfolio, mainly from net acquisitions and improvements to investment properties (collectively adding approximately $9.7 million) and rent reviews (adding approximately $1.9 million). Refer to Property portfolio and Rent reviews sections for further details.

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BWP TRUST HALF-YEAR REPORT 2014/15

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Finance costs of $13.3 million were 40.2 per cent higher than the previous corresponding six months, due to higher borrowing levels, partially offset by a lower weighted average cost of debt. The average level of borrowings was 64.8 per cent higher than the previous corresponding period ($451.6 million compared with $274.1 million). The weighted average cost of debt for the half-year (finance costs less finance income as a percentage of average borrowings) was 5.79 per cent, compared to 6.65 per cent for the previous corresponding period. The lower cost of debt was the result of higher utilisation of debt facilities and reductions in the rate of bank fees and margins during or since the previous corresponding period. Average utilisation of debt facilities (average borrowings as a percentage of average facility limits) for the period was higher than for the previous corresponding period (75.3 per cent compared with 63.7 per cent).

Other operating expenses of $3.3 million were in line with the previous corresponding period.

FINANCIAL POSITION

At 31 December 2014, the Trust’s total assets were $1,926.0 million, with unitholders’ equity of $1,392.2 million and total liabilities of $533.8 million.

The underlying net tangible asset backing of the Trust’s units increased by 11 cents per unit during the period, from $2.07 per unit at 30 June 2014, to $2.18 per unit at 31 December 2014. This increase was the result of the net unrealised gains on revaluation of investment properties (refer to the Revaluations section), and capital expenditure incurred during the period.

INTERIM DISTRIBUTION

For the half-year the Trust reported a distributable profit of $49.1 million, an increase of 14.6 per cent on the previous corresponding period, primarily due to increased property revenue from completed development properties acquired in September 2013 and a lower average cost of debt.

An interim distribution of 7.67 cents per ordinary unit has been declared. This is 12.3 per cent higher than the previous corresponding period (6.83 cents per unit), reflecting the increase in property income over the previous corresponding period and the dilutive impact on the prior corresponding distribution, of the equity raising part way through that period.

There were approximately 2.0 per cent more units on issue at 31 December 2014 than at 31 December 2013.

The interim distribution will be made on 26 February 2015 to unitholders on the Trust’s register at 5:00 pm on 31 December 2014.

Units issued under the Trust’s distribution reinvestment plan (“DRP”) in respect of the interim distribution will be issued at $2.8137 per unit, representing the volume weighted average price of the Trust’s units for the 10 trading days following the record date, without the application of a discount.

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BWP TRUST HALF-YEAR REPORT 2014/15

BUSINESS REVIEW

REPORT TO UNITHOLDERS CONTINUED

PROPERTY PORTFOLIO

CAPITAL EXPENDITURE

Total capital expenditure on the portfolio during the half-year amounted to $59.2 million, comprising the items outlined below:

Completion of development of Bunnings Warehouse Brendale, Queensland

In December 2014, construction of the Trust’s Bunnings Warehouse at Brendale, Queensland, was completed at a cost of $19.2 million. The net annual rental income of the property is approximately $1.9 million.

Completion of development of Bunnings Warehouse Manly West, Queensland

In September 2014, construction of the Trust’s Bunnings Warehouse at Manly West, Queensland, was completed at a cost of $21.3 million. The net annual rental income of the property is approximately $2.1 million.

Completion of development of Bunnings Warehouse West Ipswich, Queensland

In September 2014, construction of the Trust’s Bunnings Warehouse at West Ipswich, Queensland, was completed at a cost of $17.9 million. The net annual rental income of the property is approximately $2.3 million.

Harrisdale, Western Australia

The Trust incurred a further $0.4 million in development works to complete the additional showrooms at the Harrisdale property. The Trust has tenant commitments for all the showrooms.

Non-income producing capital expenditure

Non-income producing capital improvements made by the Trust to investment properties during the half-year totalled $0.4 million. These improvements comprised minor works at various properties.

	State	$m
Developments
Manly West	QLD	21.3
West Ipswich	QLD	17.9
Brendale	QLD	19.2
Harrisdale showrooms1	WA	0.4

Other expenditure

Non-income producing	0.4
Total capital expenditure	59.2

1 Development of additional showrooms.

10 BWP TRUST HALF-YEAR REPORT 2014/15

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DIVESTMENTS

The Trust completed the sale of four of its properties during the period as detailed in the table below:

		Sale price
Property	State	$m	Settlement
Regency Park	SA	3.9	July 2014
Hemmant	QLD	21.3	September 2014
Sandown	VIC	8.6	October 2014
Sunshine	VIC	13.0	December 2014

CAPITAL COMMITMENTS

Agreement to expand Bunnings Warehouse Lismore, New South Wales

In November 2014, the Trust committed to expand its Lismore Bunnings Warehouse, New South Wales, at a cost of $4.6 million. The annual rental will increase by approximately $0.3 million. Following completion of the expansion, the parties will enter into a new 12 year lease of the Bunnings Warehouse with four, five year options, exercisable by Bunnings. The rent will increase by a fixed three per cent per annum. At the end of the initial term and at the exercise of each option by Bunnings, the rents are subject to a market review. Market rent reviews are subject to a 10 per cent cap, meaning the rent cannot increase more than 10 per cent above the preceding year’s rent, and a 10 per cent collar, meaning that the rent cannot fall more than 10 per cent below the preceding year’s rent.

Agreement to acquire Bunnings Warehouse development site, Australind, Western Australia

In November 2014, the Trust committed to acquire a Bunnings Warehouse development site in Australind, Western Australia for a purchase price of $8.3 million (plus acquisition costs of approximately $0.5 million). Settlement of the property is expected to occur in April 2015, following subdivision and the issue of the certificate of title. The development is expected to be completed by 30 June 2015 at a cost of $9.6 million. The commencing annual rental income of the property will be approximately $1.3 million.

OCCUPANCY AND AVERAGE LEASE EXPIRY

At 31 December 2014, the portfolio was 99.4 per cent occupied with a weighted average lease expiry term of 6.8 years (30 June 2014: 6.9 years, 31 December 2013: 7.0 years).

RENT REVIEWS

The rent payable for each leased property is increased annually, either by a fixed percentage or by the Consumer Price Index (“CPI”), except when a property is due for a market rent review.

ANNUAL ESCALATIONS

Fifty two of the leases of Trust properties were subject to annual fixed or CPI reviews during the period. The weighted average increase in annual rent for these 52 leases was 3.0 per cent.

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BWP TRUST HALF-YEAR REPORT 2014/15

BUSINESS REVIEW

REPORT TO UNITHOLDERS CONTINUED

MARKET RENT REVIEWS

During the period, market rent reviews were concluded on 12 Bunnings Warehouses and the showroom occupied by Pets West Online at Gladstone, Queensland. Market rent reviews for three Trust-owned Bunnings Warehouses, due during the year ended 30 June 2014, are being determined by an independent valuer and remain unresolved as at 31 December 2014. Market rent reviews for three Trust-owned Bunnings Warehouses due during the period are still being negotiated. The market rent reviews completed during the half-year are shown in the following table:

		Passing	Market
		rent	review1	Uplift	Effective
Property location	Customer	($pa)	($pa)	(%)	date
Balcatta, WA2	Bunnings	1,841,264	2,170,000	+17.9	24 Sep 13
Altona, VIC2	Bunnings	1,089,650	1,122,339	+3.0	24 Sep 13
Burleigh Heads, QLD2	Bunnings	1,479,587	1,648,000	+11.4	22 Oct 13
Underwood, QLD2	Bunnings	1,369,988	1,527,500	+11.5	22 Oct 13
Southport, QLD2	Bunnings	1,457,667	1,648,000	+13.1	10 Nov 13
Port Macquarie, NSW2	Bunnings	876,852	960,000	+9.5	17 Nov 13
Tuggeranong, ACT2	Bunnings	1,527,708	1,725,000	+12.9	1 Dec 13
Epping, VIC2	Bunnings	1,181,865	1,235,000	+4.5	12 Mar 14
Lismore, NSW2	Bunnings	890,979	935,000	+4.9	20 Apr 14
Thornleigh, NSW	Bunnings	1,320,622	1,320,622	-	6 Sep 14
Albany, WA	Bunnings	824,016	848,000	+2.9	1 Nov 14
Bibra Lake, WA	Bunnings	1,647,203	1,647,203	-	1 Nov 14
Gladstone, QLD Weighted Average	Pets West Online	114,252	154,275	+35.0 +8.8	16 Dec 14

• 1 All market rent reviews were negotiated between the Trust and the Customer except Balcatta which was determined by an independent valuer.

• 2 The market rent review was due during the year ended 30 June 2014, but the outcome was only finalised during the half-year ended 31 December 2014.

LIKE-FOR-LIKE RENTAL GROWTH

Twenty eight market rent reviews were finalised during the last 12 months (13 since 30 June 2014), of which 19 related to the 2013 calendar year, collectively resulting in an average increase of 5.5 per cent.

Excluding rental income from properties acquired or expanded during or since the previous corresponding period, rental income increased by approximately 2.7 per cent for the 12 months to 31 December 2014 (compared to 3.8 per cent for the 12 months to 31 December 2013). The result for the previous corresponding period was disclosed as a 2.8 per cent increase and this has been updated following the finalisation of 19 market rent reviews during the 12 month period to 31 December 2013.

The six unresolved market reviews at 31 December 2014 are not included in the calculation of like-for-like rental growth for the year.

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BWP TRUST HALF-YEAR REPORT 2014/15

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REVALUATIONS

During the half-year the Trust’s entire investment property portfolio was revalued. Property revaluations were performed by independent valuers for 12 properties during the period. The remaining 71 properties were subject to directors’ revaluations. Following the revaluations, the Trust’s weighted average capitalisation rate for the portfolio at 31 December 2014 was 7.41 per cent (30 June 2014: 7.59 per cent; December 2013: 7.71 per cent).

The value of the portfolio increased by $81.1 million to $1,900.1 million during the half-year, following capital expenditure of $59.2 million, the sale of four properties for net sale proceeds of $46.3 million and a net revaluation gain of $68.2 million at 31 December 2014. The net revaluation gain was due to growth in rental income and an average decrease in capitalisation rates across the portfolio during the half-year.

CAPITAL MANAGEMENT

The Trust’s debt facilities as at 31 December 2014 are summarised below:

		Amount
	Limit	drawn1
	$m	$m	Expiry date
Bank debt facilities
Australia and New Zealand
Banking Group Limited	110.0	79.5	1 July 2017
Commonwealth Bank of
Australia2	110.0	92.0	31 July 2017
Westpac Banking Corporation	135.0	80.0	31 December 2017
Corporate bonds
Fixed term fve-year
corporate bond	200.0	200.0	27 May 2019
	555.0	451.5

• 1 Amount drawn includes accrued interest and borrowing costs of $0.3 million as at 31 December 2014 on bank debt facilities.

• 2 In January 2015 the $110 million Commonwealth Bank of Australia facility was extended for a further year to 31 July 2018.

The weighted average duration of the facilities at 31 December 2014 was 3.3 years.

The Trust’s gearing ratio (debt to total assets) at 31 December 2014 was 23.4 per cent (30 June 2014: 24.4 per cent, December 2013: 19.8 per cent) which is in the Board’s preferred range of 20 to 30 per cent. Covenant gearing (debt and non-current liabilities as a percentage of total assets) was 24.1 per cent (30 June 2014: 25.0 per cent, December 2013: 20.4 per cent), well below the 45 per cent maximum allowable under banking facilities.

The Trust has a policy of hedging the majority of its borrowings against interest rate movements, to ensure stability of distributions. At 31 December 2014, the Trust’s interest rate hedging cover was 90.8 per cent of gross borrowings (excluding accrued interest and borrowing costs), with $210.0 million interest rate swaps and the $200.0 million fixed rate corporate bond against gross borrowings of $451.5 million. The weighted

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BWP TRUST HALF-YEAR REPORT 2014/15

BUSINESS REVIEW

REPORT TO UNITHOLDERS CONTINUED

average term to maturity of hedging was 3.25 years (30 June 2014: 3.75 years, December 2013: 3.32 years) including delayed start swaps.

The Trust’s distribution reinvestment plan was active for the interim distribution and applied to approximately 15.3 per cent of issued units.

OUTLOOK

Property income for the second half of 2014/15 will include a full six months’ rental income from the three Bunnings Warehouse developments completed during the first half of 2014/15.

Rent reviews are expected to contribute incrementally to property income for the half-year to 30 June 2015. There are 43 leases to be reviewed to the CPI or by a fixed percentage increase during the second half of 2014/15. There are also 10 market rent reviews of Bunnings Warehouses, of which three relate to the year ending 30 June 2014, to be completed by the end of this financial year.

The second half distribution is expected to be approximately 8.1 cents per unit, depending on rent review outcomes for the balance of the financial year.

As a result of more competitively priced debt funding and increased utilisation of existing facilities, the Trust’s average cost of debt (being the net finance costs, including interest and bank fees and margins, as a percentage of average borrowings) should reduce further to approximately 5.4 per cent for the six months ending 30 June 2015 on the basis of interest rates remaining at around current levels.

The responsible entity will continue to look to acquire quality investment properties that are value accretive for the Trust. As part of ongoing active portfolio management, the responsible entity will also continue to assess potential divestments where properties have reached optimum value.

For BWP Management Limited

John A Austin Chairman 11 February 2015

Michael J Wedgwood Managing Director

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BWP TRUST HALF-YEAR REPORT 2014/15

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WEST IPSWICH, QLD

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

Rental income Other property income Finance income Total revenue Finance costs Responsible entity’s fees Other operating expenses Proft before unrealised gains in fair value of investment properties Unrealised gains in fair value of investment properties Proft for the period attributable to unitholders of BWP Trust Other comprehensive (loss)/ income Items that may be reclassifed subsequently to proft or loss Effective portion of changes in fair value of cash fow hedges: - Realised losses transferred to proft or loss - Unrealised losses on cash fow hedges Total comprehensive income for the period attributable to the unitholders of BWP Trust Basic and diluted earnings (cents per unit) resulting from proft	Note	Dec 2014 $000 Dec 2013 $000
	2	69,566 57,290 1,475 2,161 139 305
		71,180 59,756
		(13,318) (9,496) (5,435) (4,123) (3,306) (3,275)
		49,121 42,862 68,203 23,835
		117,324 66,697
		2,700 2,717 (3,433) (1,133)
		116,591 68,281
		18.39 11.18

The statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

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BWP TRUST HALF-YEAR REPORT 2014/15

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STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2014

ASSETS Current assets Cash Deposits for purchases of investment properties Receivables and prepayments Assets held for sale Total current assets Non-current assets Derivative fnancial instruments Investment properties Total non-current assets Total assets LIABILITIES Current liabilities Payables and deferred income Derivative fnancial instruments Distribution payable Total current liabilities Non-current liabilities Interest-bearing loans and borrowings Derivative fnancial instruments Total non-current liabilities Total liabilities Net assets UNITHOLDERS’ EQUITY Issued capital Hedge reserve Undistributed income Total unitholders’ equity	Note	Dec 2014 $000 Jun 2014 $000 Dec 2013 $000
	3 4 5 6 7	21,119 12,045 13,207 - - 2,850 4,848 6,351 7,403 7,210 53,496 3,800
		33,177 71,892 27,260
		- - 553 1,892,863 1,765,480 1,630,986
		1,892,863 1,765,480 1,631,539
		1,926,040 1,837,372 1,658,799
		20,868 15,647 12,845 401 1,244 - 49,066 49,991 42,835
		70,335 66,882 55,680
		451,156 448,332 327,689 12,379 10,803 11,485
		463,535 459,135 339,174
		533,870 526,017 394,854
		1,392,170 1,311,355 1,263,945
		938,076 924,786 908,654 (12,780) (12,047) (10,932) 466,874 398,616 366,223
		1,392,170 1,311,355 1,263,945

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

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

STATEMENT OF CASH FLOWS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

Cash fows from operating activities Rent received Payments to suppliers Payments to the responsible entity Finance income Finance costs Net cash fows from operating activities Cash fows from investing activities Payments of deposits for purchases of investment properties Payments for purchase of, and additions to, investment properties Receipts from the sale of the Trust’s investment properties Net cash fows used in investing activities Cash fows from fnancing activities Proceeds of borrowings Proceeds from issue of units via pro-rata entitlement offer Expenses incurred in pro-rata entitlement offer Distributions paid Net cash fows (used in)/from fnancing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period	Dec 2014 $000 Dec 2013 $000
	80,987 66,976 (9,010) (13,986) (4,926) (3,831) 139 305 (12,827) (8,957)
	54,363 40,507
	- (2,850) (57,698) (229,605) 46,286 -
	(11,412) (232,455)
	2,824 31,197 - 200,157 - (4,449) (36,701) (32,813)
	(33,877) 194,092
	9,074 2,144 12,045 11,063
	21,119 13,207

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

18 BWP TRUST HALF-YEAR REPORT 2014/15

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STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

		Undis-
	Issued	tributed	Hedge
	capital	income	Reserve	Total
	$000	$000	$000	$000
Balance at 1 July 2013	707,363	342,361	(12,516)	1,037,208
Proft for the period attributable
to unitholders of BWP Trust	-	66,697	-	66,697
Other comprehensive income
Effective portion of changes in
fair value of cash fow hedges	-	-	1,584	1,584
Total comprehensive income
for the period	-	66,697	1,584	68,281
Distributions to unitholders	-	(42,835)	-	(42,835)
Issue of units - Pro-rata
entitlement offer	200,157	-	-	200,157
Issue of units - Distribution
Reinvestment Plan	5,583	-	-	5,583
Expenses incurred in pro-rata
entitlement offer	(4,449)	-	-	(4,449)
Total transactions with
unitholders of BWP Trust	201,291	(42,835)	-	158,456
Balance at 31 December 2013	908,654	366,223	**(10,932) **	1,263,945
Balance at 1 July 2014	924,786	398,616	(12,047)	1,311,355
Proft for the period attributable
to unitholders of BWP Trust	-	117,324	-	117,324
Other comprehensive loss
Effective portion of changes in
fair value of cash fow hedges	-	-	(733)	(733)
Total comprehensive income
for the period	-	117,324	(733)	116,591
Distributions to unitholders	-	(49,066)	-	(49,066)
Issue of units - Distribution
Reinvestment Plan	13,290	-	-	13,290
Total transactions with
unitholders of BWP Trust	13,290	(49,066)	-	(35,776)
Balance at 31 December 2014	938,076	466,874	**(12,780) **	1,392,170

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

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

1. BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL STATEMENTS

2. The financial statements of BWP Trust (“the Trust”) for the half-year ended 31 December 2014 were authorised for issue in accordance with a resolution of the directors on 11 February 2015. The Trust was constituted under a Trust Deed dated 18 June 1998 as amended and is managed by BWP Management Limited. Both the Trust and the responsible entity are domiciled in Australia.

The half-year financial statements are a general purpose financial report which:

• has been prepared in accordance with the requirements of the Trust’s constitution, the Corporations Act 2001 and AASB 134 Interim Financial Reporting;

• has been prepared by applying the same significant accounting policies as those applied by the Trust in its financial statements for the year ended 30 June 2014;

• has been prepared on an historical cost basis, except for investment properties and derivative financial instruments, which have been measured at their fair value;

• is presented in Australian dollars, the Trust’s functional currency, and all values are rounded to the nearest thousand dollars ($’000) under the option available to the Trust under ASIC Class Order 98/100, unless otherwise stated; and

• does not include all notes of the type normally included within the annual financial statements and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Trust as the full financial statements.

It is recommended that the half-year financial statements be read in conjunction with the annual financial statements of the Trust as at 30 June 2014 which are available upon request from the Trust’s registered office at Level 11, 40 The Esplanade, Perth WA 6000 or at bwptrust.com.au and considered together with any public announcements made by the Trust during the half-year ended 31 December 2014 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001 .

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BWP TRUST HALF-YEAR REPORT 2014/15

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

2. INTERIM DISTRIBUTION PER UNIT

In accordance with the Trust’s constitution, the unrealised gains or losses on the revaluation of the fair value of investment properties are not included in the profit available for distribution to unitholders. The following shows the effect on earnings per unit of excluding unrealised gains or losses and the resulting distribution per unit:

Basic and diluted earnings per unit (cents per unit) Basic and diluted earnings per unit excluding unrealised gains in fair value of properties (cents per unit) Interim distribution per unit (cents per unit) Weighted average number of units on issue used in the calculation of basic and diluted earnings per unit NVESTMENT PROPERTIES Balance at the beginning of the period Acquisitions during the period Capital improvements since acquisition Net unrealised gains from fair value adjustments Balance at the end of the period	Dec 2014 Dec 2013 18.39 11.18 7.70 7.18 7.67 6.83 638,015,868 596,616,145 Dec 2014 $000 Dec 2013 $000
	1,765,480 1,374,444 58,417 227,123 763 5,584 68,203 23,835
	1,892,863 1,630,986

3. INVESTMENT PROPERTIES

(a) Fair value

Investment properties are carried at fair value. Fair value for individual properties is determined by a full 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. During the six months to 31 December 2014, twelve independent property valuations were performed.

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

All investment properties of the Trust have been categorised on a Level 3 fair value basis under AASB 13 Fair Value Measurement, as some of the inputs required to value the properties are not based on “observable market data”. For full details of the methodology and the significant assumptions/inputs used please refer to the 30 June 2014 annual financial statements.

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

3. INVESTMENT PROPERTIES (CONTINUED)

(b) Capital expenditure

During the half-year the Trust’s capital expenditure on investment properties totalled $59.2 million, comprising:

Bunnings Warehouse developments

Property West Ipswich, Queensland Manly West, Queensland Brendale, Queensland	Cost ($m) 17.9 21.3 19.2	Completed
		September 2014 September 2014 December 2014

Other

Other capital improvements made by the Trust to investment properties during the half-year totalled $0.8 million.

(c) Divestments

The Trust completed the sale of four of its properties during the period as detailed below:

Property Regency Park, South Australia Hemmant, Queensland Sandown, Victoria Sunshine, Victoria	Sale price ($m) 3.9 21.3 8.6 13.0	Settlement
		July 2014 September 2014 October 2014 December 2014

4. DISTRIBUTION PAYABLE

In accordance with the Trust’s constitution, the unrealised gains or losses on the revaluation of the fair value of investment properties are not included in the profit available for distribution to unitholders. A reconciliation is provided below:

	Dec	Dec
	2014	2013
	$000	$000
Proft for the period attributable to
unitholders of BWP Trust	117,324	66,697
Net unrealised gains in fair value of
investment properties	(68,203)	(23,835)
Distributable proft for the period	49,121	42,862
Opening undistributed proft	1	34
Closing undistributed proft	(56)	(61)
Distributable amount	49,066	42,835
Distribution (cents per unit)	7.67	6.83

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BWP TRUST HALF-YEAR REPORT 2014/15

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NOTES TO THE FINANCIAL STATEMENTS

FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

5. INTEREST-BEARING LOANS AND BORROWINGS

As at 31 December 2014 the Trust has the following borrowings:

Bank debt facilities Australia and New Zealand Banking Group Limited Commonwealth Bank of Australia Westpac Banking Corporation Corporate bonds Fixed term fve-year corporate bond Less: accrued interest and borrowing costs	Limit $000 Amount drawn $000 Expiry date
	110,000 79,500 1 July 2017 110,000 92,000 31 July 2017 135,000 80,000 31 December 2017 200,000 200,000 27 May 2019 - (344) 555,000 451,156

6. ISSUED CAPITAL

During the period 5,329,631 units (2013: 2,387,450 units) were issued under the Trust’s distribution reinvestment plan, bringing the number of ordinary units on issue as at 31 December 2014 to 639,724,826. The distribution reinvestment plan remained active for the interim distribution for the half-year ended 31 December 2014.

7. HEDGE RESERVE

This reserve records the portion of the change in fair values of a hedging instrument in a cash flow hedge that is determined to be an effective hedge.

Balance at the beginning of the fnancial period Effective portion of changes in fair value of cash fow hedges: - Realised losses transferred to proft or loss - Unrealised losses on cash fow hedges Balance at the end of the fnancial period	Dec 2014 $000 Jun 2014 $000
	(12,047) (12,516) 2,700 5,421 (3,433) (4,952)
	(12,780) (12,047)

The movement in the half-year was due to the decrease in future variable interest rates during the half-year.

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

8. SEGMENT REPORTING

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

9. FINANCIAL INSTRUMENTS

(a) Fair value

The fair values and carrying amounts of the Trust’s financial assets and financial liabilities recorded in the financial statements are materially the same with the exception of the following:

Corporate bonds – book value Corporate bonds – fair value	Dec 2014 $000 Jun 2014 $000
	(199,656) (199,394) (207,385) (201,727)

The methods and assumptions used to estimate the fair value of financial instruments are as follows:

Loans and receivables, and payables and deferred income

Due to the short-term nature of these financial rights and obligations, their carrying amounts are estimates to represent their fair values.

Cash and short-term deposits

The carrying amount is fair value due to the liquid nature of these assets.

Bank loans and corporate bonds

Market values have been used to determine the fair value of corporate bonds using a quoted market price. The fair value of bank loans have been calculated discounting the expected future cash flows at prevailing interest rates using market observable inputs.

Interest rate swaps

Interest rate swaps are measured at fair value by valuation techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly (Level 2).

(b) Financial risk management - credit risk

During the period $nil (2013: $302,500) of rental income was deemed non-recoverable and has been written off. There are no other allowances for impairment in respect of receivables during the current or previous period.

Other aspects of the Trust’s financial risk management objectives and policies are consistent with those disclosed in the 30 June 2014 annual financial statements.

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BWP TRUST HALF-YEAR REPORT 2014/15

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

10. CAPITAL EXPENDITURE COMMITMENTS

Estimated capital expenditure contracted for at balance date, but not provided for in the fnancial statements, which is payable: Not later than one year Unrelated parties Related parties	Dec 2014 $000 Jun 2014 $000
	380 - 35,647 72,976
	36,027 72,976

(a) Capital commitments to unrelated parties

Harrisdale

In December 2013, the Trust committed to tenancy works to the showrooms totalling $0.4 million on its additional land adjoining its Bunnings Warehouse property at Harrisdale, Western Australia.

(b) Capital commitments to related parties

Portfolio acquisition

Following approval by unitholders in September 2013, the Trust agreed to acquire a property portfolio comprising 10 Bunnings Warehouse properties from Bunnings Group Limited, a controlled entity of Wesfarmers Limited, as well as committing to upgrading three of its existing Trust-owned Bunnings Warehouses. The total purchase price for the portfolio and upgrades is $289.8 million plus acquisition costs, of which $276.6 million has been paid to Bunnings Group Limited since September 2013. Subject to completion of the expansion of two Bunnings Warehouses a further $13.2 million is expected to be payable within the next 12 months.

Australind

In November 2014, the Trust committed to acquire a

Bunnings Warehouse development site in Australind, Western Australia for a purchase price of $8.3 million. The development, expected to be completed by 30 June 2015, will cost a further $9.6 million.

Lismore

In November 2014, the Trust committed to expand its Lismore Bunnings Warehouse, New South Wales, at a cost of $4.6 million.

11. RELATED PARTIES

Arrangements with related parties continue to be in place. For details on these arrangements refer to the 30 June 2014 annual financial statements, along with Notes 3 and 10 of these financial statements.

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

1. SUBSEQUENT EVENTS

2. (a) Extension of bank facility

In January 2015 the Trust extended its $110 million facility with the Commonwealth Bank of Australia for a further year to July 2018.

(b) Maribyrnong

In February 2015 the Trust agreed to acquire the completed development of the Bunnings Warehouse in Maribyrnong, Victoria for $32.0 million.

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SUNBURY, VIC

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BWP TRUST HALF-YEAR REPORT 2014/15

DIRECTORS’ REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

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In accordance with the Corporations Act 2001 , BWP Management Limited (ABN 26 082 856 424), the responsible entity for BWP Trust, provides this report for the financial half-year that commenced 1 July 2014 and ended 31 December 2014 and review report thereon. The information on pages 8 to 14 forms part of this directors’ report and is to be read in conjunction with the following information:

Directors

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

Mr J A Austin (Chairman) Mr M J Wedgwood (Managing Director) Mr J K Atkins Mr E Fraunschiel (appointed 1 February 2015) Ms F E Harris Mr R D Higgins Mr A J Howarth Mr M J G Steur (appointed 1 February 2015)

Directors were in office for the entire period unless otherwise stated.

Review and results of operations

The operations of the Trust during the six months to 31 December 2014 and the results of those operations are reviewed on pages 8 to 14 of this report and the accompanying financial statements.

Proft for the period attributable to unitholders of BWP Trust Net unrealised gains in fair value of investment properties Distributable proft for the period Opening undistributed proft Closing undistributed proft Distributable amount	Dec 2014 $000 Dec 2013 $000
	117,324 66,697 (68,203) (23,835)
	49,121 42,862 1 34 (56) (61)
	49,066 42,835

The interim distribution is 7.67 cents per ordinary unit (2013: 6.83 cents). This interim distribution will be paid on 26 February 2015.

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

DIRECTORS’ REPORT

FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

Units on issue

At 31 December 2014, 639,724,826 units of BWP Trust were on issue (30 June 2014: 634,395,195).

Events subsequent to reporting date

In January 2015 the Trust extended its $110 million facility with the Commonwealth Bank of Australia for a further year to July 2018.

In February 2015 the Trust agreed to acquire the completed development of the Bunnings Warehouse in Maribyrnong, Victoria for $32.0 million.

Auditor independence declaration

The lead auditor’s independence declaration is set out on page 30 and forms part of the directors’ report for the half-year ended 31 December 2014.

Rounding off

The responsible entity is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the financial statements and the directors’ report have been rounded off to the nearest thousand dollars, unless otherwise stated.

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

J A Austin

Chairman BWP Management Limited Perth, 11 February 2015

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BWP TRUST HALF-YEAR REPORT 2014/15

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DIRECTORS’ DECLARATION

FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

In accordance with a resolution of the directors of BWP Management Limited, responsible entity for the BWP Trust (“the Trust”), I state that:

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 31 December 2014 and of its performance for the half-year ended on that date; and

• (ii) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001 ; and

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

For and on behalf of the board of BWP Management Limited.

J A Austin

Chairman BWP Management Limited Perth, 11 February 2015

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

AUDITOR’S INDEPENDENCE DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To: the directors of BWP Management Limited, the responsible entity of BWP Trust.

I declare that, to the best of my knowledge and belief, in relation to the review for the half-year ended 31 December 2014 there have been:

• (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• (ii) no contraventions of any applicable code of professional conduct in relation to the review.

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KPMG

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Grant Robinson Partner

Perth, 11 February 2015

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BWP TRUST HALF-YEAR REPORT 2014/15

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE UNITHOLDERS OF BWP TRUST

FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

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REPORT ON THE FINANCIAL REPORT

We have reviewed the accompanying half-year financial report of BWP Trust (the Trust), which comprises the statement of financial position as at 31 December 2014, statement of profit and loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes 1 to 12 comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the Trust.

DIRECTORS’ RESPONSIBILITY FOR THE HALF-YEAR FINANCIAL REPORT

The directors of BWP Management Limited (the Responsible Entity) are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the halfyear financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Trust’s financial position as at 31 December 2014 and its performance for the half-year ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As auditor of BWP Trust, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

INDEPENDENCE

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

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BWP TRUST HALF-YEAR REPORT 2014/15

FINANCIAL REPORT

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE UNITHOLDERS OF BWP TRUST

FOR THE HALF-YEAR ENDED 31 DECEMBER 2014

CONCLUSION

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of BWP Trust is not in accordance with the Corporations Act 2001 , including:

• (a) giving a true and fair view of the Trust’s financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and

• (b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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KPMG

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Grant Robinson Partner

Perth, 11 February 2015

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BWP TRUST HALF-YEAR REPORT 2014/15

UNITHOLDER INFORMATION

DIRECTORY

RESPONSIBLE ENTITY

BWP Management Limited ABN 26 082 856 424

Level 11, Wesfarmers House 40 The Esplanade PERTH WA 6000 Telephone: +61 8 9327 4356 Facsimile: +61 8 9327 4344 bwptrust.com.au

DIRECTORS AND SENIOR MANAGEMENT

Mr J A Austin (Chairman)

Mr M J Wedgwood (Managing Director)

Mr J K Atkins (Director)

Mr E Fraunschiel (Director) (appointed 1 February, 2015)

Ms F E Harris (Director) Mr R D Higgins (Director) Mr A J Howarth (Director)

Mr M J G Steur (Director) (appointed 1 February, 2015) Ms K A Lange (Secretary)

REGISTRY MANAGER

Computershare Investor Services Pty Limited

Level 2, 45 St Georges Terrace

PERTH WA 6000

Telephone: 1300 136 972 (within Australia) Telephone: +61 3 9415 4323 (outside Australia) Facsimile: 1800 783 447 (within Australia Facsimile: +61 3 9473 2500 (outside Australia) computershare.com.au

AUDITOR

KPMG

235 St Georges Terrace

PERTH WA 6000

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BWP TRUST HALF-YEAR REPORT 2014/15

UNITHOLDER INFORMATION

INVESTOR INFORMATION

STOCK EXCHANGE LISTING

The BWP Trust is listed on the Australian Securities Exchange (“ASX”) and reported in the “Industrial” section in daily newspapers – code BWP.

UNITHOLDER ENQUIRIES

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

WEBSITE

The Trust’s website, bwptrust.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 also provides access to annual and half-year reports and releases made to the ASX.

COMPLAINTS HANDLING

Complaints made in regard to BWP Trust should be directed to The Managing Director – BWP Management Limited, Level 11, Wesfarmers House, 40 The Esplanade, Perth, Western Australia, 6000. The procedure for lodgement of complaints and complaints handling is set out under the Investors tab of the BWP Trust website at bwptrust.com.au.

Should a complainant be dissatisfied with the decision made by the Responsible Entity in relation to a complaint, the complainant is entitled to take the matter up with the Financial Ombudsman Service (“FOS”), an external and independent industry complaint handling scheme. FOS is located at Level 12, 717 Bourke Street, Docklands, Victoria, 3008. FOS can be contacted by telephone on 1300 780 808, by facsimile on +61 3 9613 6399, by mail at GPO Box 3, Melbourne, Victoria, 3001, by email at info@fos.org.au, or by visiting their website at fos.org.au.

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BWP TRUST HALF-YEAR REPORT 2014/15

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MANLY WEST, QLD

This Report is printed on Monza Recycled and is Certified Carbon Neutral by The Carbon Reduction Institute (CRI) in accordance with the global Greenhouse Protocol and ISO 14040 framework. Monza Recycled contains 55% recycled fibre (25% post consumer and 30% pre consumer) and is FSC Mix Certified, which ensures that all virgin pulp is derived from responsible sources. It is manufactured by an ISO 14001 certified mill. This is an environmentally responsible paper manufactured under the environmental management

35

BWP TRUST HALF-YEAR REPORT 2014/15

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HALFYEAR REPORT 2014/15 SIX MONTHS TO 31 DECEMBER 2014