CHARTER HALL GROUP — Interim / Quarterly Report 2009

Feb 23, 2009

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APPENDIX 4D – HALF YEAR REPORT HALF YEAR ENDED 31 DECEMBER 2008

Charter Hall Group (CHC) – comprising the stapling of ordinary shares in

Charter Hall Limited (ACN 113 531 150) and units in Charter Hall Property Trust (ARSN 113 339 147)

1. Reporting period

Half year report for the half ended 31 December 2008.

2. Results for announcement to the market

Revenue from ordinary activities Profit/(loss) from ordinary activities after tax attributable to members Net profit/(loss) for the period after tax attributable to members Underlying profit Distribution / dividend Interim distribution in respect of a CHPT unit Interim dividend in respect of a CHL share Total Record date for determining entitlements to distributions - 31 December 2008.	Consolidated 2008 $000’s Consolidated 2007 $000’s % change
	35,967 42,687 (16%) (16,633) 46,482 (136%) (16,633) 46,482 (136%) 20,909 26,308 (16%) 2008 (Cents) 2007(Cents) % change
	3.96 6.30 (37%) nil nil n/a
	3.96 6.30 (37%)

The interim distribution is expected to be paid on 27 February 2009.

Earnings per security Basic earnings per stapled security Basic underlying* earnings per stapled security	2008 (Cents) 2007(Cents) % change
	(3.82) 11.09 (134%) 4.80 6.28 (21%)

• Underlying earnings excludes fair value adjustments, gains / losses on sale of investments and non cash AIFRS charges such as share based payments expense and amortisation. Previously Underlying earnings included income tax benefit. Given the Group currently forecasts a non-cash tax benefit, tax has been excluded from the calculation of Underlying earnings.

3. Net tangible assets per security

NTA per security	31 December 2008 31 December 2007 % change
	$1.09 $1.18 (8%)

The number of securities on issue is 496.8m (2007: 436.7m). For the calculation of NTA the number of securities is reduced to 446.5m (2007: 419.8m). The difference represents securities issued under the employee share scheme which are unable to be recognised for accounting purposes under AASB 2 Share Based Payments . The corresponding loan receivable and interest income is also unable to be recognised.

4. Entities over which control has been gained or lost during the period

Charter Hall Property Trust sold down its investment in Charter Hall Core Plus Retail Fund (CPRF) and it’s sub-trusts on 30 July 2008 when equity was raised. CHPT has a co-investment of 62%, however it does not govern the financial and operating policies of CPRF and therefore does not control the Fund and therefore does not consolidate CPRF.

5. Distribution Reinvestment Plan (“DRP”)

The DRP is currently in operation.

6. Associates & Joint venture entities

The Group holds a 50% interest in Commercial & Industrial Property Pty Ltd.

The Group holds a 3% interest in Charter Hall Opportunity Fund No 4 and a 15% interest in Charter Hall Opportunity Fund No 5 which are both unlisted opportunity funds managed by Charter Hall.

The Group holds a 20% interest in Charter Hall Diversified Property Fund, a 23% interest in Charter Hall Core Plus Office Fund, a 25% interest in Charter Hall Core Plus Industrial Fund, a 62% interest in Charter Hall Core Plus Retail Fund and a 25% interest in Charter Hall Umbrella Fund.

7. Accounting standards applied to foreign entities

Not applicable.

8. Audit dispute or qualification

None.

CHARTER HALL GROUP

FINANCIAL REPORT

COMPRISING CHARTER HALL LIMITED AND ITS CONTROLLED ENTITIES

FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Contents

DIRECTORS’ REPORT.................................................................................................................1 CONSOLIDATED INCOME STATEMENT ....................................................................................6 CONSOLIDATED BALANCE SHEET...........................................................................................7 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY........................................................8 CONSOLIDATED CASH FLOW STATEMENT.............................................................................9 NOTES TO THE FINANCIAL STATEMENTS .............................................................................10 DIRECTORS’ DECLARATION....................................................................................................15 INDEPENDENT AUDITOR’S REVIEW REPORT .......................................................................16

Charter Hall Group

Directors’ Report

Charter Hall Group (the Group or CHG) comprises Charter Hall Limited (the Company or CHL) and its controlled entities, which include Charter Hall Funds Management Limited as the Responsible Entity of Charter Hall Property Trust (the Trust or CHPT). Charter Hall Limited and Charter Hall Funds Management Limited have identical Boards of Directors. The term Board hereafter should be read as a reference to both these Boards.

The Directors of the Board present their Report, together with the consolidated Financial Report of the Group, for the half year ended 31 December 2008, and the Independent Auditor’s Review Report thereon.

The units in the Trust are ‘stapled’ to the shares in the Company. A stapled security comprises one Company share and one Trust unit. The stapled securities cannot be traded or dealt with separately.

Directors

The Directors of the Board in office at any time during the half year and up to the date of this report are as follows:

K Roxburgh Chairman and Non-Executive Independent Director R Woodhouse Deputy Chairman and Non-Executive Independent Director P Derrington Non-Executive Independent Director G Fraser Non-Executive Independent Director C McGowan Non-Executive Independent Director C Fuchs Executive Director D Harrison Joint Managing Director D Southon Joint Managing Director

Distributions

Distributions paid or declared by Charter Hall Group to securityholders since the end of the previous financial year were:

Interim distribution for the 31 December 2008 period of 3.96 cents per security declared and payable 27 February 2009.	2008 2007 $’000 $’000
	17,679 26,448

Distribution Re-investment Plan (DRP)

The DRP is currently in operation. The DRP price, which is calculated as a 2% discount on the 15 day VWAP (Volume Weighted Average Price), being 5 January 2009 to 23 January 2009, is $0.2879. The distribution /DRP issuance will occur on 27 February 2009. The participation rate was 35%.

1

Charter Hall Group Directors’ Report (continued)

Results

The 31 December 2008 half year financial results can be summarised as follows:

		Dec 2008		Dec 2007
Revenue ($m)	1	36.0		42.7
Net profit /(loss) after tax ($m)		(16.6)		46.5
Underlying earnings ($m)	2	20.9		26.3
Distribution ($m)		17.7		26.5
Underlying earnings per stapled security (cents)	2	4.80		6.28
Distribution per stapled security (cents)		3.96		6.30
Interest Cover (before sales of investments and fair value adjustments)		7.09 times		3.80 times
		Dec 2008		June 2008
Total Assets ($m)		610		802
Total Liabilities ($m)		122		310
Net Assets ($m)		488		492
NTA per security ($)	3	1.09		1.19
Gearing – borrowings to total assets	4	10.9%		31.2%
Assets under Management ($bn)		3.9		3.9

• 1 – Gross revenue does not include gains on sale of investments of $4.6m (2007: gain of $5.0m) or share of net profits of associates of $0.6m (2007: profit of $4.5m)

• 2 – Excludes fair value adjustments on investment property, financial assets and financial instruments, gains on sale of investments and non-cash AIFRS charges such as share based payments expense and amortisation. Previously Underlying earnings included income tax benefit. Given the Group currently forecasts a non-cash tax benefit, tax has been excluded from the calculation of Underlying earnings.

• 3 – Excludes stapled securities issued under LTI Plan in accordance with AASB 2 Share-Based Payment .

• 4 – Gearing is calculated by using debt and total assets net of cash

The reported Group statutory result is a loss after tax for the half year of $16.6m (2007: profit of $46.5m). The loss after tax includes gains on sale of investments of $4.6m (2007: gain of $5.0m) and a fair value decrement of $41.6m (2007: increment of $16.8m) comprising property investments $31.8m and derivatives $9.8m. The fair value adjustments are a result of write downs in the value of units in unlisted funds and negative movements in financial instruments (mark to market of hedges). Fair value movements do not have an impact on the Group’s operating cashflow or distributable income.

The decrease in underlying profit to $20.9m, from $26.3m in the previous corresponding period, is due mainly to the following:

• Decreased performance and transaction fees as a result of the deterioration in market conditions and global financial crisis.

2

Charter Hall Group

Directors’ Report

(continued)

• Reduced distribution income mainly due to increased interest expense in Charter Hall managed funds.

• Lower contribution from CIP.

• Offset of increased asset management income due to growth in assets under management (from $3.2bn to $3.9bn) in existing funds and CPRF external equity raised.

• Increased development management income due to increased projects under management.

• Lower interest expense as a result of reduced debt using proceeds from CPRF equity raising.

Review of operations

Charter Hall Property Trust (CHPT) sold down its investment in Charter Hall Core Plus Retail Fund (CPRF) and it’s sub-trusts on 30 July 2008 when equity was raised. CHPT now has a co-investment of 62%, however it does not govern the financial and operating policies of CPRF and therefore does not control the Fund and therefore does not consolidate CPRF.

CPRF was established as the third Fund in a series of sector specific core plus investment vehicles managed by Charter Hall. CPRF follows the successful establishment of the Core Plus Office Fund (CPOF) in 2006 and the Core Plus Industrial Fund (CPIF) in 2007.

The Group has used the proceeds from the sell down of CPRF assets and the off balance sheet financing of CPRF to reduce its debt. The Group’s debt facility with NAB has accordingly been resized to $100 million from $350 million and extended to a three year term expiring July 2011 which is hedged for 2.2 years.

The portfolio of investments held by CHPT now comprises co-investments in 5 high quality unlisted property funds with a WALE of 8.6 years, a 99% occupancy level and a strong tenant list, dominated by Telstra, Bunnings, Mercer, Woolworths, Coles, Harvey Norman, BHP and Government or related entities.

CPRF, in which CHPT holds a 62% interest, owns 17 assets with a total asset value of $433m.

CPOF, in which CHPT holds a 23% interest, owns 18 assets with a total asset value of $1.5bn which has increased from $1.4bn at 1 July 2008 with a combination of acquisitions and progression of assets under development.

CPIF, in which CHPT holds a 25% interest, owns 13 assets with a total asset value of $378m which has increased from $325m at 1 July 2008.

DPF, in which CHPT holds a 20% interest, owns 12 assets which are in total valued at approximately $191m.

CHOF4, in which CHL hold a 3% interest, has 8 projects with 2 completed. Equity of $131m representing 80% of the total has been called to date.

CHOF5, in which CHL holds a 15% interest, has 5 projects including 2 projects in New Zealand. Equity of $122m representing 41% of the total has been called to date.

CHUF, in which CHPT holds a 25% interest, owns investments in unlisted and listed real estate investment trusts totalling $196m.

3

Charter Hall Group Directors’ Report (continued)

Total assets under management as at 31 December 2008 remains unchanged at $3.9bn (30 June 2008: $3.9bn) with falling asset values offset by increased investment in underlying funds.

Auditor’s independence declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

Rounding off of amounts

The Group is of a kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the “rounding off” of amounts in the directors’ report and financial report. Amounts in the directors’ report and financial report have been rounded to the nearest thousand dollars, in accordance with that class order, unless otherwise indicated.

This report is made in accordance with a resolution of the directors.

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Kerry Roxburgh Chairman Sydney 23 February 2009

4

PricewaterhouseCoopers ABN 52 780 433 757

Auditor’s Independence Declaration

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

As lead auditor for the review of Charter Hall Limited for the half year ended 31 December 2008, I declare that, to the best of my knowledge and belief, there have been:

• (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

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

This declaration is in respect of Charter Hall Limited and the entities it controlled during the period.

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B K Hunter Partner PricewaterhouseCoopers

Sydney 23 February 2009

Liability limited by a scheme approved under Professional Standards Legislation.

5

Charter Hall Group

Consolidated Income Statement

For the half year ended 31 December 2008

Notes	31 December 2008 $’000 35,967 4,637 (1,562) (9,447) (124) (2,319) (4,460) 553 23,245 (31,776) (9,807) (18,338) 1,705 (16,633) (7,894) (8,739) (16,633) Cents per stapled security 3.96 (3.82) (3.09)	31 December 2007 $’000
Revenue Gains on sale of investments Investment property expenses Employee benefits expenses Depreciation Other expenses Finance costs Share of net profits of associates accounted for using the equity method Fair value adjustments - property investments Fair value adjustments - derivatives Profit/(loss) before income tax Income tax benefit Profit/(loss) for the period Attributable to: Equity holders of Charter Hall Limited Equity holders of Charter Hall Property Trust (minority interest) Profit/(loss) attributable to stapled securityholders of Charter Hall Group Distributions paid and payable Basic earnings per stapled security 2 Diluted earnings per stapled security 2		42,687 4,971 (4,267) (7,029) (86) (2,585) (8,842) 4,499
		29,348 16,329 465
		46,142 340
		46,482
		579 45,903
		46,482
		Cents per stapled security 6.30 11.09 10.90

The above consolidated income statement should be read in conjunction with the accompanying notes.

6

Charter Hall Group

Consolidated Balance Sheet As at 31 December 2008

Notes	31 December 2008 $’000 2,655 19,462 24,295 46,412 5,409 63,238 467,686 - 16,664 1,714 6,012 - 2,434 563,157 609,569 46,049 261 46,310 68,986 4,116 2,466 - 54 75,622 121,932 487,637 5,554 (45,105) (11,576) (51,127) 538,764 487,637	30 June 2008 $’000
ASSETS Current assets Cash and cash equivalents Trade and other receivables Assets available for sale Total current assets Non-current assets Trade and other receivables Investments accounted for using the equity method 7 Financial assets at fair value through the profit and loss 8 Other financial assets Investment properties Property, plant and equipment Deferred tax assets Derivative financial instruments Other assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Provisions Total current liabilities Non-current liabilities Borrowings Derivative financial instruments Deferred tax liabilities Financial liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Equity holders of Charter Hall Limited Contributed equity Reserves Accumulated losses Parent entity interest Equity holders of Charter Hall Property Trust and other minority interests Total equity		16,183 29,879 -
		46,062
		5,082 50,340 227,283 18,182 439,645 1,577 5,110 5,880 2,760
		755,859
		801,921
		42,491 109
		42,600
		260,981 - 3,408 2,462 150
		267,001
		309,601
		492,320
		5,272 (46,679) (3,683)
		(45,090) 537,410
		492,320

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

7

Charter Hall Group

Consolidated Statement of Changes in Equity For the half year ended 31 December 2008

	31 December 2008 $’000 492,320 (189) 887 698 (16,633) (15,935) 27,386 (17,679) - 1,545 11,252 487,637 (8,041) (7,894) (15,935)	31 December 2007 $’000
Total equity at the beginning of the half year Changes in the fair value of derivatives, net of tax Foreign currency reserve movement Net profit/(loss) recognised directly in equity Profit/(loss) for the half year Total recognised income and expense for the half year Transactions with equityholders in their capacity as equity holders: Contributions of equity, net of transaction costs Distribution provided for or paid Other Security based payments reserve Total equity at the end of the half year Total profit/(loss) for the half year and net profit recognised directly in equity attributable to: Equity holders of Charter Hall Limited Equity holders of Charter Hall Property Trust		461,011
		(189) (73)
		(262) 46,482
		46,220
		20,923 (26,448) (45) 1,109
		(4,461)
		502,770
		566 45,654
		46,220

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

8

Charter Hall Group

Consolidated Cash Flow Statement For the half year ended 31 December 2008

Notes	31 December 2008 $’000 33,806 (22,261) (8,896) 14,220 4,436 21,305 (51) (605) - (111,897) 86,262 - 181,876 (2,083) 153,502 17,051 (192,073) (13,313) (188,335) (13,528) 16,183 2,655	31 December 2007 $’000
Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Interest paid Distributions and dividends from investments Interest received Net cash inflow from operating activities Cash flows from investing activities Payment for property, plant and equipment Payments for investment property Proceeds on disposal of investment property Payments for investments Receipts from sale of subsidiary net of cash Loans to employees Repayment of borrowings by related parties Loans to related parties Net cash outflow from investing activities Cash flows from financing activities Proceeds from issues of securities Proceeds from/(repayment of borrowings) Distributions paid to securityholders Net cash inflow/(outflow) from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the half year Cash and cash equivalents at the end of the half year		39,285 (17,461) (6,573) 4,420 1,410
		21,081
		(32) (80,141) 30,500 (104,109) 42,763 (4,178) - 205
		(114,992)
		20,917 104,488 (20,723)
		104,682
		10,771 26,507
		37,278

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

9

NOTES TO THE FINANCIAL STATEMENTS HALF YEAR ENDED 31 DECEMBER 2008

1. BASIS OF PREPARATION OF HALF YEAR REPORT

This general purpose financial report for the interim half year reporting period ended 31 December 2008 has been prepared in accordance with Accounting Standard AASB 134, Interim Financial Reporting and the Corporations Act 2001 . The Charter Hall Group financial report represents the consolidated financial report of Charter Hall Limited and its controlled entities including Charter Hall Property Trust. For the purposes of AASB Interpretation 1002 Post Date of Transition Stapling Arrangements , Charter Hall Limited has been identified as the Parent Entity in relation to the stapling. In accordance with AASB Interpretation 1002 the results and equity, not directly owned by CHL, of CHPT have been treated and disclosed as a minority interest. Whilst the results and equity of CHPT are disclosed as a minority interest, the stapled securityholders of CHL are the same as the stapled securityholders of CHPT.

The interim financial report does not include all notes normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2008 and any public announcements made by Charter Hall Group during the half year to 31 December 2008 in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial year and corresponding interim reporting period.

2. EARNINGS PER STAPLED SECURITY

The Responsible Entity does not consider it appropriate to use profit under Australian Accounting Standards to determine distributions to securityholders. The table below outlines the Responsible Entity’s adjustments to profit under Australian Accounting Standards to determine the amount the Responsible Entity believes should be available for distribution for the current year. The Responsible Entity uses this amount as guidance for determination.

Underlying earnings is a financial measure which is not prescribed by Australian Accounting Standards and represents the profit under Australian Accounting Standards adjusted for certain unrealised and non-cash items. Per the Trust Constitution, the adjustments, and therefore the amount distributed to securityholders, are at the discretion of the Responsible Entity. The Responsible Entity will use the underlying earnings calculated as a guide to assessing an appropriate distribution to declare.

The adjustments made to profit under Australian Accounting Standards in order to solely determine underlying earnings may change from time to time depending on future changes to accounting standards and the Responsible Entity’s assessment as to whether non-recurring or infrequent items (such as realised gains on the sale of properties) will be distributed to securityholders.

Basic – earnings per stapled security Diluted – earnings per stapled security Basic – underlying earnings per stapled security	Consolidated 31 December 2008 Consolidated 31 December 2007
	(3.82) 11.09 cents (3.09) 10.90 cents 4.80 6.28 cents

10

NOTES TO THE FINANCIAL STATEMENTS HALF YEAR ENDED 31 DECEMBER 2008

2. EARNINGS PER STAPLED SECURITY (CONTINUED)

Earnings reconciliation

Earnings reconciliation
Basic earnings per stapled security: Net profit/(loss) after tax Diluted earnings per stapled security: Net profit/(loss) after tax Basic underlying earnings per stapled security : Net profit/(loss) after tax Gains on sale of investments Fair value adjustment on investments Amortisation of lease incentives given to tenants Straight lining of lease incentives received Non-cash share based payments expense Tax benefit Other Fair value adjustments on derivatives Basic underlying earnings Diluted underlying earnings**	2008 $'000 2007 $'000
	(16,633) 46,482 (14,669) 47,521 (16,633) 46,482 (4,637) (4,971) 31,776 (16,329) - 213 - 216 1,446 1,109 (1,705) (340) 378 393 10,284 (465)
	20,909 26,308
	22,873 27,347

• Diluted earnings calculation includes securities and performance rights issued under the employee share plan which are derecognised for accounting under AASB 2 Share-Based Payments. Diluted earnings are higher than basic earnings as interest income on loans to employees for securities under the share plan would be recognised.

The weighted average number of stapled securities on issue used in the calculation of basic ordinary earnings per stapled security was 435,858,386 stapled securities (2007: 419,184,910).

The weighted average number of stapled securities on issue used in the calculation of diluted ordinary earnings per stapled security was 474,987,070 stapled securities (2007: 435,967,244).

3. DISTRIBUTIONS

Distributions recognised in the current period are:

December 2008 Units Interim distribution Total distribution December 2007 Units Interim distribution Total distribution	Payment per Unit 3.96 cents 3.96 cents Payment per Unit 6.30 cents 6.30 cents	Total Amount $’000 Date of Payment 17,679 27.2.09 17,679 Total Amount $’000 Date of Payment 26,448 29.2.08 26,448

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NOTES TO THE FINANCIAL STATEMENTS HALF YEAR ENDED 31 DECEMBER 2008

4. EQUITY SECURITIES ISSUED

Issues of stapled securities during the period Opening balance Add back LTI’s reversed June 2008 CIP purchase Gift to employees Security purchase plan Distribution reinvestment plan Employee share scheme issue Less: transaction costs Less: reversal of LTI securities	1 July to 31 December 2008 Stapled Securities ’000 1 July to 31 December 2008 $’000 1 July to 31 December 2007 Stapled Securities ’000 1 July to 31 December 2007 $’000	1 July to 31 December 2008 Stapled Securities ’000 1 July to 31 December 2008 $’000 1 July to 31 December 2007 Stapled Securities ’000 1 July to 31 December 2007 $’000	1 July to 31 December 2008 Stapled Securities ’000 1 July to 31 December 2008 $’000 1 July to 31 December 2007 Stapled Securities ’000 1 July to 31 December 2007 $’000	1 July to 31 December 2008 Stapled Securities ’000 1 July to 31 December 2008 $’000 1 July to 31 December 2007 Stapled Securities ’000 1 July to 31 December 2007 $’000	1 July to 31 December 2008 Stapled Securities ’000 1 July to 31 December 2008 $’000 1 July to 31 December 2007 Stapled Securities ’000 1 July to 31 December 2007 $’000
		413,984 23,508 - - - 32,459 26,830 496,781 - (50,338) 446,443	526,822 45,311 - - - 27,555 27,903 627,591 (170) (73,214) 554,207	409,121 11,845 5,599 23 69 - 10,041 436,698 - (16,891) 419,807	513,597 14,598 15,000 66 207 - 27,713 571,181 (239) (36,421) 534,521

The total number of securities issued at 31 December 2008 including employee share plan securities is 496,781,239.

5. CONTINGENT LIABILITIES

Details and estimated maximum amounts of contingent liabilities (for which no amounts are recognised in the financial statements) are as follows:

The consolidated entity has obtained a bank guarantee of $3 million on behalf of Charter Hall Funds Management Limited to satisfy the net tangible asset requirements of its Australian Financial Services licence. Another bank guarantee of $0.8 million on behalf of Charter Hall Core Plus Retail Fund has since been cancelled. No liability is expected to arise.

12

NOTES TO THE FINANCIAL STATEMENTS HALF YEAR ENDED 31 DECEMBER 2008

6. SEGMENT REPORTING

The consolidated entity is organised into the following divisions:

• Property investment – has interests in investment properties and unlisted trusts

• Asset management and corporate – responsible for asset management, development management and property management

DECEMBER 2008

Business Segment Summary Revenue Net segment result after interest expense and before fair value adjustments Share of net profits of associates accounted for using the equity method Profit before income tax expense and fair value adjustments Fair value adjustments Loss before income tax Income tax benefit Loss for the period DECEMBER 2007 Business Segment Summary Revenue Net segment result after interest expense and before fair value adjustments Share of net profits of associates accounted for using the equity method Profit before income tax expense and fair value adjustments Fair value adjustments Profit before income tax Income tax benefit Profit for the period	Property investment Asset management and corporate Inter segment eliminations Consolidated $’000 $’000 $’000 $’000
	32,639 16,395 (13,067) 35,967
	31,525 (8,833) - 22,692 - 553 - 553
	31,525 (8,280) - 23,245 (40,264) (1,319) - (41,583)
	(8,739) (9,599) - (18,338) - 1,705 - 1,705
	(8,739) (7,894) - (16,633)
	Property investment Asset management and corporate Inter segment eliminations Consolidated $’000 $’000 $’000 $’000
	37,387 18,743 (13,443) 42,687
	28,608 (3,759) - 24,849 - 4,499 - 4,499
	28,608 740 - 29,348 17,295 (501) - 16,794
	45,903 239 - 46,142 - 340 - 340
	45,903 579 - 46,482

13

NOTES TO THE FINANCIAL STATEMENTS HALF YEAR ENDED 31 DECEMBER 2008

7. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Commercial and Industrial Property Pty Ltd Charter Hall Opportunity Fund No. 4 Charter Hall Opportunity Fund No. 5 Total	2008 $'000 2007 $'000
	42,654 43,837 3,085 3,214 17,499 3,289
	63,238 50,340

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS

Core Plus Office Fund Core Plus Retail Fund Core Plus Industrial Fund Charter Hall Umbrella Fund Charter Hall Diversified Property Fund Axiom Properties Limited Total	2008 $'000 2007 $'000
	187,468 143,178 144,956 - 56,725 57,698 54,202 71 23,650 24,332 685 2,004
	467,686 227,283

9. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

An interest rate hedge for $33 million was closed out on 30 January 2009 at a cost of $3.2 million.

There have been no other significant events or transactions that have arisen since the end of the financial period which, in the opinion of the Directors, would significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity.

14

Charter Hall Group Directors’ Declaration

For the half year ended 31 December 2008

In the directors’ opinion:

• (a) the financial statements and notes set out on pages 6 to 14 are in accordance with the Corporations Act 2001 , including:

• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and of its performance for the half year ended on that date; and

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

This declaration is made in accordance with a resolution of the directors.

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Kerry Roxburgh Chairman Sydney 23 February 2009

15

PricewaterhouseCoopers ABN 52 780 433 757

INDEPENDENT AUDITOR’S REVIEW REPORT to the stapled securityholders of Charter Hall Group

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

Report on the Half year Financial Report

We have reviewed the accompanying half year financial report of Charter Hall Group, which comprises the balance sheet as at 31 December 2008, and the income statement, statement of changes in equity and cash flow statement for the half year ended on that date, other selected explanatory notes and the directors’ declaration for the Charter Hall Group (the consolidated entity) . The consolidated entity comprises both Charter Hall Limited (the company), and the entities it controlled during that half year including Charter Hall Property Trust (the trust).

Directors’ Responsibility for the Half year Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

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 the Auditing Standard on Review Engagements ASRE 2410 Review of an Interim 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 financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and its performance for the half year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Charter Hall Group, 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. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. 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.

For further explanation of a review, visit our website http:/www.pwc.com/au/financialstatementaudit.

While we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.

Our review did not involve an analysis of the prudence of business decisions made by directors or management.

Liability limited by a scheme approved under Professional Standards Legislation

16

Independence

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

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 Charter Hall Group is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and of its performance for the half year ended on that date; and

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

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PricewaterhouseCoopers

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B K Hunter Partner

Sydney 23 February 2009

17

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CHARTER HALL PROPERTY TRUST ARSN 113 339 147 AND ITS CONTROLLED ENTITIES

FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Contents DIRECTORS’ REPORT.................................................................................................................2 CONSOLIDATED INCOME STATEMENT ....................................................................................4 CONSOLIDATED BALANCE SHEET...........................................................................................5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY........................................................6 CONSOLIDATED CASH FLOW STATEMENT.............................................................................7 NOTES TO THE FINANCIAL STATEMENTS ...............................................................................8 DIRECTORS’ DECLARATION....................................................................................................10 INDEPENDENT AUDITOR’S REVIEW REPORT .......................................................................11

Charter Hall Property Trust

Directors’ Report

The Directors of Charter Hall Funds Management Limited (the Responsible Entity), the responsible entity of Charter Hall Property Trust (the Trust or CHPT) present their Report, together with the Financial Report of the Trust for the half year ended 31 December 2008, and the Auditor’s Independent Review Report thereon.

DIRECTORS

The Directors of the Responsible Entity in office at any time during the whole of the half year and up to the date of this report are as follows:

K Roxburgh Chairman and Non-Executive Independent Director R Woodhouse Deputy Chairman and Non-Executive Independent Director P Derrington Non-Executive Independent Director G Fraser Non-Executive Independent Director C McGowan Non-Executive Independent Director C Fuchs Executive Director D Harrison Joint Managing Director D Southon Joint Managing Director

Distributions

Distributions paid or declared by the Trust to unitholders were:

Interim distribution for the 31 December 2008 period of 3.96 cents per unit declared and payable 27 February 2009	2008 2007 $’000 $’000 17,679 26,448

Review of operations

The consolidated net profit before fair value adjustments was $31.5m (2007: $28.6m). After fair value decrements of $40.3m (2007: increment of $17.3m) comprising property investments $30.5m and derivatives $9.8m the reported loss attributable to unitholders for the half year was $8.7m (2007: profit of $45.9m).

Auditor’s independence declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 3.

Rounding off of amounts

The Trust is of a kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the “rounding off” of amounts in the directors’ report and financial report. Amounts in the directors’ report and financial report have been rounded to the nearest thousand dollars, in accordance with that class order, unless otherwise indicated.

Auditor

PricewaterhouseCoopers continues in office in accordance with section 327 of the Corporations Act 2001 .

This report is made in accordance with a resolution of directors.

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Kerry Roxburgh Chairman Sydney 23 February 2009

2

PricewaterhouseCoopers ABN 52 780 433 757

Auditor’s independence declaration

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

As lead auditor for the review of Charter Hall Property Trust for the half year ended 31 December 2008, I declare that, to the best of my knowledge and belief, there have been:

• (a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

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

This declaration is in respect of Charter Hall Property Trust and the entities it controlled during the period.

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B K Hunter Partner PricewaterhouseCoopers

Sydney 23 February 2009

Liability limited by a scheme approved under Professional Standards Legislation

3

Charter Hall Property Trust

Consolidated Income Statement

For the half year ended 31 December 2008

Notes	31 December 2008 $’000 32,640 4,637 (1,563) 228 (4,417) 31,525 (30,457) (9,807) (8,739) Cents per unit 3.96 (2.01) (1.84)	31 December 2007 $’000
Revenue Gains on sale of investments Investment property expenses Other expenses Finance costs Fair value adjustments – property investments Fair value adjustments – derivatives Net profit/(loss) after income tax attributable to unitholders of Charter Hall Property Trust Earnings per unit for profit attributable to the ordinary unitholders of the Trust: Distributions paid and payable Basic earnings per unit 2 Diluted earnings per unit 2		37,388 4,971 (4,267) (642) (8,842)
		28,608 16,830 465
		45,903
		Cents per unit 6.30 10.95 10.53

The above consolidated income statement should be read in conjunction with the accompanying notes.

4

Charter Hall Property Trust

Consolidated Balance Sheet As at 31 December 2008

Notes	31 December 2008 $’000 1,178 8,575 23,525 33,278 138,285 467,001 - 16,664 - - 621,950 655,228 43,362 43,362 68,986 - 4,116 - 73,102 116,464 538,764 548,653 310 (10,199) 538,764	30 June 2008 $’000
ASSETS Current assets Cash and cash equivalents Trade and other receivables Assets available for sale Total current assets Non-current assets Trade and other receivables Financial assets at fair value through profit and loss 7 Other financial assets Investment properties Deferred tax assets Derivative financial instruments Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Total current liabilities Non-current liabilities Borrowings Deferred tax liabilities Derivative financial instruments Interest bearing liabilities Total non-current liabilities Total liabilities Net assets Equity Contributed equity Reserves Accumulated profits / (losses) Total equity		12,904 6,034 -
		18,938
		129,008 225,279 18,182 440,121 152 5,880
		818,622
		837,560
		36,420
		36,420
		260,981 288 - 2,462
		263,731
		300,151
		537,409
		521,550 (359) 16,218
		537,409

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

5

Charter Hall Property Trust

Consolidated Statement of Changes in Equity For the half year ended 31 December 2008

	31 December 2008 $’000 537,409 (189) 858 669 (8,739) (8,070) 27,104 (17,679) - 9,425 538,764	31 December 2007 $’000
Total equity at the beginning of the half year Changes in the fair value of derivatives, net of tax Foreign currency reserve movement Net profit/(loss) recognised directly in equity Profit/(loss) for the half year Total recognised income and expenses for the half year Transactions with unitholders in their capacity as unitholders: Contributions of equity, net of transaction costs Distribution provided for or paid Other Total equity at the end of the half year		506,625
		(189) (60)
		(249) 45,903
		45,654
		20,706 (26,448) (46)
		(5,788)
		546,491

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

6

Charter Hall Property Trust

Consolidated Cash Flow Statement For the half year ended 31 December 2008

	31 December 2008 $’000 954 (6,524) (8,854) 11,534 17,168 14,278 - 640 (96,967) 86,262 - 181,876 (9,277) 162,534 16,770 (191,995) (13,313) (188,538) (11,726) 12,904 1,178	31 December 2007 $’000
Cash flows from operating activities Receipts from customers (inclusive of goods and services tax) Payments to suppliers and employees (inclusive of goods and services tax) Interest paid Distributions from investments Interest received Net cash inflow from operating activities Cash flows from investing activities Payments for investment property Proceeds on disposal of investment property Payments for investments Receipts from sale of subsidiary net of cash Proceeds from sale of financial assets Repayment of borrowings Loans to related parties Net cash outflow from investing activities Cash flows from financing activities Proceeds from issue of units Proceeds from/(repayment of borrowings) Distributions paid to unitholders Net cash inflow/(outflow) from financing activities Net increase/(decrease) in cash and cash equivalents held Cash and cash equivalents at the beginning of the half year Cash and cash equivalents at the end of the half year		21,424 (6,048) (6,573) 4,061 13,651
		26,515
		(80,127) 30,499 (70,923) - 42,764 - (45,169)
		(122,956)
		20,706 104,488 (20,723)
		104,471
		8,030 23,402
		31,432

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

7

NOTES TO THE FINANCIAL STATEMENTS HALF YEAR ENDED 31 DECEMBER 2008

1. BASIS OF PREPARATION OF HALF YEAR REPORT

This general purpose financial report for the interim half year reporting period ended 31 December 2008 has been prepared in accordance with Accounting Standard AASB 134, Interim Financial Reporting and the Corporations Act 2001 . The Charter Hall Property Trust financial report represents the consolidated financial report of Charter Hall Property Trust and its controlled entities.

The interim financial report does not include all notes normally included in an annual financial report. Accordingly, this report should be read in conjunction with any public announcements made by Charter Hall Property Trust during the half year to 31 December 2008 in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial year and corresponding interim reporting period.

Deficiency in working capital

Although the Trust is in a net current liability position as at 31 December 2008, there is no reason to believe that it will not be able to pay its liabilities as and when they fall due. The Trust has a $100m NAB facility of which $30.6m is undrawn at 31 December 2008.

The cash flow statement shows net cash outflows from operating activities of $14.3m.

2. EARNINGS PER UNIT

Basic - earnings per unit Diluted - earnings per unit Earnings reconciliation	Consolidated 31 December 2008 Consolidated 31 December 2007
	(2.01) cents 10.95 cents (1.84) cents 10.53 cents

Basic earnings per unit: Net profit/(loss) after tax Diluted earnings per unit*: Net profit/(loss) after tax	2008 $'000 2007 $'000
	(8,739) 45,903 (8,739) 45,903

• Diluted earnings calculation includes units and performance rights issued under the employee share plan which are derecognised for accounting under AASB 2 Share Based Payment .

435,858,386 units (2007: 419,184,910).

The weighted average number of units on issue used in the calculation of diluted ordinary earnings per unit was 474,987,070 units (2007: 435,967,244).

3. DISTRIBUTIONS

Distributions recognised in the current period are:

December 2008 Interim distribution December 2007 Interim distribution	Payment per Unit Total Amount $’000 Date of Payment 3.96 cents 17,679 27.2.09 6.30 cents 26,448 29.2.08

8

NOTES TO THE FINANCIAL STATEMENTS HALF YEAR ENDED 31 DECEMBER 2008

4. EQUITY UNITS ISSUED

Issues of Units during the period Opening balance Add back LTI’s reversed June 2008 CIP purchase Gift to employees Security purchase plan Distribution reinvestment plan Employee share scheme issue Less: transaction costs Less: reversal of LTI securities	1 July 2008 to 31 December 2008 Units ’000 1 July 2008 to 31 December 2008 $’000 1 July 2007 to 31 December 2007 Units ’000 1 July 2007 to 31 December 2007 $’000
	413,984 526,822 409,121 508,466 23,508 45,311 11,845 14,451 - - 5,599 14,849 - - 23 64 - - 69 204 32,459 27,555 - - 26,830 27,903 10,041 27,434
	496,781 627,591 436,698 565,468 - (170) - (239) (50,338) (73,214) (16,891) (36,057)
	446,443 554,207 419,807 529,172

5. CONTINGENT LIABILITIES

Details and estimated maximum amounts of contingent liabilities (for which no amounts are recognised in the financial statements) are as follows:

The consolidated entity has obtained a bank guarantee of $3 million on behalf of Charter Hall Funds Management Limited to satisfy the net tangible asset requirements of its Australian Financial Services licence. Another bank guarantee of $0.8 million on behalf of Charter Hall Core Plus Retail Fund has since been cancelled. No liability is expected to arise.

6. SEGMENT REPORTING

The consolidated entity’s only business is investing in property assets in Australia and New Zealand. Consequently there are no separately reportable segments.

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS

Core Plus Office Fund Core Plus Retail Fund Core Plus Industrial Fund Charter Hall Umbrella Fund Charter Hall Diversified Property Fund Total	2008 $'000 2007 $'000
	187,468 143,178 144,956 - 56,725 57,698 54,202 71 23,650 24,332
	467,001 225,279

8. EVENTS OCCURING AFTER THE BALANCE SHEET DATE

An interest rate hedge for $33 million was terminated on 30 January 2009 at a cost of $3.2 million.

There have been no other significant events or transactions that have arisen since the end of the financial period which, in the opinion of the Directors, would significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity.

9

Charter Hall Property Trust Directors’ Declaration

For the half year ended 31 December 2008

In the directors’ opinion:

• (a) the financial statements and notes set out on pages 4 to 9 are in accordance with the Corporations Act 2001 , including:

• (i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and of its performance for the half year ended on that date; and

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

This declaration is made in accordance with a resolution of the directors.

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Kerry Roxburgh Chairman Sydney 23 February 2009

10

PricewaterhouseCoopers ABN 52 780 433 757

INDEPENDENT AUDITOR’S REVIEW REPORT to the unitholders of Charter Hall Property Trust

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

Report on the Half Year Financial Report

We have reviewed the accompanying half year financial report of Charter Hall Property Trust, which comprises the balance sheet as at 31 December 2008, and the income statement, statement of changes in equity and cash flow statement for the half year ended on that date, other selected explanatory notes and the directors’ declaration for the Charter Hall Property Trust Group (the consolidated entity). The consolidated entity comprises both Charter Hall Property Trust (the trust) and the entities it controlled during that half year.

Directors’ Responsibility for the Half Year Financial Report

The directors of Charter Hall Funds Management Limited (the responsible entity) are responsible for the preparation and fair presentation of the half year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

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 the Auditing Standard on Review Engagements ASRE 2410 Review of an Interim 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 financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and its performance for the half year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Charter Hall Property 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. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. 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.

For further explanation of a review, visit our website http:/www.pwc.com/au/financialstatementaudit.

While we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.

Our review did not involve an analysis of the prudence of business decisions made by directors or management.

Liability limited by a scheme approved under Professional Standards Legislation

11

Independence

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

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 Charter Hall Property Trust is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2008 and of its performance for the half year ended on that date; and

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

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PricewaterhouseCoopers

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B K Hunter Partner

Sydney

23 February 2009

12