ASX Release - Macquarie Goodman Group ("Macquarie Goodman")

Macquarie Goodman achieves key targets Results for announcement to the market

The past six months has seen Macquarie Goodman evolve into a truly international business. The group has clearly demonstrated its ability to deliver its objectives with the achievement of a number of key milestones in Australia, Asia and Europe.

The results for the half year ended 31 December 2005 are in accordance with ASX Listing Rule 4.2A. The attached ASX Appendix 4D for Macquarie Goodman has been reviewed by KPMG. The "Results for announcement to the market" for the half year ended 31 December 2005 for Macquarie Goodman are detailed both herein and the attached Annexures. This release and the respective ASX Appendix 4D should be read in conjunction with the Macquarie Goodman Annual Report 2005.

Macquarie Goodman's Chief Executive Officer, Gregory Goodman, said, "The past six months" has been an exciting period for Macquarie Goodman. In Australia, we continued to organically grow our business through the roll out of our development pipeline and the introduction of a new wholesale fund. In Hong Kong, we are on target to launch a wholesale fund in the first half of 2006. Finally, we established a significant platform in Europe with the acquisition of a \$17 billion funds management and property services business."

Importantly, Macquarie Goodman's strong performance for the half year ended 31 December 2005 resulted in a profit of \$239.9 million. Distributions to securityholders for the six months of 13.75 cents per security and adjusted earnings of 12.92 cents per security are both in line with the forecasts contained in the Product Disclosure Statement and Prospectus dated 12 April 2005.

Mr Goodman added, "Achieving these key targets provides an increase in distributions of 12.8% to underlying MGI Unitholders over the previous corresponding period. With an increase in the security price of 17% to \$4.78 over the six months to 31 December 2005. Macquarie Goodman securityholders have enjoyed a total return of approximately 20.8%."

The team has remained focussed on driving the underlying business, delivering the following highlights: The Contract of the su no _da i da ji ndewleta wa shi

$\rightarrow$ secured \$21.6 million of new lease transactions at an increase of 3.2% over passing rents on the core Australian portfolio:
committed \$384 million in new development product across Macquarie Goodman's → platform at an average yield of 8.5% and lease term of 11.7 years;
$\rightarrow$ successfully established the Macquarie Goodman Wholesale Fund in Australia with an initial portfolio totalling \$1.0 billion;
-> continued growth in funds under management for the Singapore and New Zealand businesses with an increase of 59% and 160% respectively over the previous corresponding period; $\mathcal{C}_{\alpha}$ .

$\mathcal{L}$

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Macquarie Goodman group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621

Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001

+61 2 9230 7400 Telephone Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com

$\gamma$ , $\alpha_1$ , $\alpha_3$

$\sim 1000$ $M_{\odot}$

Macquarie Goodman

$\rightarrow$ secured a high quality portfolio in Hong Kong totalling \$788 million (\$830 million post balance date) in preparation for the establishment of a third party managed fund; and
$\rightarrow$ established a significant platform in Europe through the acquisition of Arlington Securities Ltd ("Arlington"), taking the group's business space assets under management to \$16.0 billion and total assets under management to \$26.2 billion.

Property Investment

Macquarie Goodman's core portfolio in Australia consists of 92 warehouse/distribution centres, industrial estates, business parks and office parks located across the country. The portfolio is valued at over \$4.0 billion and houses 479 customers across 2.6 million sqm of lettable area.

Mr Goodman commented, "Our focus remains on maintaining our historically high occupancy rate and customer retention rates. Our Australian property portfolio underpins the financial security of the group and is the cornerstone of our property investment activity."

Strong management of the core Australian portfolio has produced the following impressive leasing outcomes:

→ net annual rental of \$21.6 million;
→ occupancy rate maintained at 98%;
-> previous passing rentals increased by 3.2%;
-> customer retention rate of 87%; and
$\rightarrow$ weighted average lease expiry of 5.1 years.

Macquarie Goodman's dedicated property services team has built valuable partnerships with both existing and new customers. The top 25 customer base is characterised by leading corporations that provide over 41% of the group's net property income, with no one customer providing more than 4% of total net property income.

Over the past six months the existing portfolio continued to grow in value, with property revaluations providing an increase of \$55.6 million over previous book values. This result confirms the continued strong investment demand for quality industrial properties in well located areas. Following these revaluations, the portfolio reflects an average capitalisation rate of $8.3\%$ . Que.

Property Development

The property development division continued to perform strongly during the period, completing \$419 million of new development product and committing a further \$384 million of new projects across Macquarie Goodman's platform. The new commitments have been secured at an average initial yield of 8.5% and, with a weighted average lease term of 11.7 years. Importantly, 62% of the new projects were precommitted to existing customers which (1) 2005年7月 highlights the strength of our Customer Service Model.

Of the above developments, \$382 million were completed for Macquarie Goodman on an initial yield of 8.6%. Further, of the new commitments \$220 million was secured at an initial yield of 8.9%. $\mathcal{A}_{\mathcal{L}}$

Macquarie Goodman group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621

Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001

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+61 2 9230 7400 Telephone Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com

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Macquarie Goodman

During the period, Macquarie Goodman formed a number of important property partnerships with some of its large corporate customers. For example, Macquarie Goodman strengthened its existing relationship with Toll, forming a partnership to develop approximately 19.3 hectares of land across Australia. This land will be used to build approximately \$60 million of new facilities for Toll.

"We are pleased with the level of new commitments secured over the first six months of the financial year. Our development pipeline remains strong with 3.3 million sqm in developable land throughout Australia and New Zealand. The pipeline is designed to satisfy the future space requirements of customers, facilitating their expansion into new markets and providing industrial and business space in well located areas, close to major infrastructure," Mr Goodman said.

In addition to the stabilised assets that it owns directly in New Zealand, Macquarie Goodman is actively undertaking joint developments with NZX-listed Macquarie Goodman Property Trust ("MGP") at Savill Link and Westney Industry Park in Auckland. These 27 and 34 hectare development sites have significant levels of pre-commitments with strong demand continuing.

Macquarie Goodman also has a 75% interest in Highbrook Business Park, a 153 hectare greenfield development in East Tamaki, Auckland. The group has recently secured New Zealand Post on a 12 year lease, which is the third pre-commitment at Highbrook Business Park.

Funds Management

Considerable progress was made over the past six months in expanding Macquarie Goodman's funds management platform. The establishment and management of third party funds is a vital component of the group's strategy, providing secure income streams and increasing distributions for its securityholders.

Following strong support from institutional investors. Macquarie Goodman launched its Australian wholesale property fund in December 2005. Macquarie Goodman Wholesale Fund's ("MGW") initial portfolio had a total committed value of \$1.0 billion and comprises 32 industrial properties located in Australia's major industrial markets. Subsequent to the successful launch, MGW secured a further \$150 million in committed development product and acquisitions providing a forecast total portfolio of \$1.2 billion on completion of the antické chorit (1) 大学校 (1) committed projects. 一大阪かいりょうどう Contractor ta ma

Mr Goodman commented that, "We are delighted by the successful launch of MGW which was one of our stated objectives for the period. We look forward to working with our equity partners in this venture to enhance the portfolio through the introduction of newly constructed development product and value-add acquisitions." Service and

Macquarie Goodman has retained a 32.6% cornerstone investment in MGW. Securityholders will benefit from distributions received from the fund as a result of the cornerstone investment, together with the additional revenue streams which Macquarie Goodman receives from managing MGW's portfolio.

Together with its joint venture partner, Macquarie Bank Limited, the group continues to acquire properties in Hong Kong in preparation for the establishment of a third party

asx ease

Macquarie Goodman group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621

Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001

+61 2 9230 7400 Telephone Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com

investment vehicle in the first half of 2006. During the period, Macquarie Goodman secured an additional \$472 million (\$514 million post balance date) of high quality property, increasing the Hong Kong portfolio to date to \$830 million.

Marketing of the proposed Macquarie Goodman Hong Kong Wholesale Fund ("MGHKWF") has commenced. The initial feedback from investors has been positive and the group remains confident that the fund will be launched in the coming months in line with expectations.

In New Zealand, MGP had an active six months of portfolio management to deliver a 6% increase in distributions and a six month return of 14.8% to MGP's Unitholders. This activity coupled with positive revaluations during the six months to 30 September 2005 has seen total assets reach NZ\$639 million.

In Singapore, Ascendas Real Estate Investment Trust ("A-REIT") acquired S\$399 million of new properties bringing Macquarie Goodman's total assets under management in this region to S\$2.7 billion. A-REIT achieved a solid investment performance over the past six months providing unitholders with growth in distributions per unit of 29% compared to the previous half vear.

In December 2005, Macquarie Goodman purchased Arlington, which is one of the largest independent property managers in the United Kingdom. Arlington has a 24 year history of successful operations and has over 270 employees with offices in London, Reading, Amsterdam, Glasgow, Paris and Madrid.

Arlington has a strong cultural fit with Macquarie Goodman with similar customer service philosophies, an award winning team and a high quality business space portfolio. Arlington operates under a similar model with revenue generated from funds management, property services and development management.

As at 31 December 2005, Arlington managed 323 industrial properties and business parks valued in excess of \$7.2 billion across the United Kingdom and Continental Europe. In addition, Arlington manages a portfolio of assets valued at \$10.2 billion which is diversified across a number of asset classes, taking its total assets under management to \$17.4 billion.

"The integration of the Arlington business has commenced and is progressing in line with our expectations. We have commenced reviewing a number of asset acquisition opportunities across the United Kingdom and Continental Europe with a view to launching a new third party managed fund during the 2006 calendar year," Mr Goodman said.

Capital Management

Macquarie Goodman maintained a conservative capital management strategy with headline gearing of 34.5% or 37.8% once adjusted for off-balance sheet items. The current gearing level is consistent with the group's long term target range of 35% to 40%.

The major capital management activities over the past six months include the:

establishment a new bank debt facility worth \$1.4 billion; →

$\rightarrow$ issuance of a \$115 million Commercial Backed Mortgage Securities programme;

Macquarie Goodman group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621

Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001

Telephone +61 2 9230 7400 Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com

$\rightarrow$ conversion of 453,517 reset preference units to 15,568,735 Macquarie Goodman securities; and
→ raising of \$135.6 million through the Distribution Reinvestment Plan.

In accordance with ASX Listing Rule 3.20, Macquarie Goodman provides notice that it will pay quarterly distributions for the following record dates, 31 March, 30 June, 29 September and 31 December 2006. Distribution payments to security holders will be made within eight weeks after each record date.

Outlook

The objectives for Macquarie Goodman in the short and medium term remain clear. The group will continue to focus its local team on maximising the value from the underlying portfolio as well as securing new development precommitments at yields superior to valuation rates.

The strong organic growth of the New Zealand and Singapore businesses will be maintained through a solid pipeline of acquisitions and developments.

Mr Goodman explained, "The group will increase its presence in the Hong Kong market through the establishment of MGHKWF and will continue to pursue new opportunities throughout this region."

"The integration of the Arlington team is progressing in line with expectations and we look forward to realising the full potential of the business with the backing of Macquarie Goodman's balance sheet."

Macquarie Goodman will use these initiatives coupled with its Customer Service Model to maintain its position as one of the largest industrial and business space managers globally.

The group reiterates its previously announced earnings per security estimate for the period from 1 January 2006 to 30 June 2006 of 13.75 cents per security (adjusted for the effect of AIFRS), which closes the differential between the Groups' earnings and distributions per security for this period.

David Clarke, the Group Chairman welcomed the recently appointed independent director, James Sloman to the Board, he also noted the retirement of Lynn Wood and Patrick Allaway during the period and thanked them for their outstanding contribution to the group.

Macquarie Goodman is confident that it can maintain this positive momentum and looks forward to delivering continued strong returns to security holders.

For further information, please contact Macquarie Goodman:

Gregory Goodman Chief Executive Officer Tel: +61 2 9230 7400

David van Aanholt Chief Executive Officer - Australia Tel: +61 2 9230 7400

Anthony Rozic Chief Financial Officer Tel: +61 2 9230 7400

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Macquarie Goodman group Macquarie Goodman Management Limited ABN 69 000 123 071 Macquarie Goodman Funds Management Limited ABN 48 067 796 641; AFSL Number 223621

Level 10, 60 Castlereagh Street Sydney NSW 2000 GPO Box 4703 Sydney NSW 2001

+61 2 9230 7400 Telephone Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com

Annexure to Macquarie Goodman Group ("MGQ") 31 December 2005 half year results - ASX Announcement

Acquisitions and Disposals

Acquisitions

Naajor Transactiens Exchanged during the Periud

ng "Mannapagitang Ta ni se i compos	ET KANSAS KANSAS TAHUN 1997 (PANGANGAN)
	Sillista yy
Part Evergain Plaza, Hong Kong (40%)	130.5
Part Dynamic Cargo Centre, Hong Kong (70%)	108.3
Tsuen Wan International Centre & Lung Wah International Godown, Hong Kong	94.7
Fountain Set Buildings, Hong Kong	80.0
Viaduct Corporate Centre, New Zeafand (50%)	65.4
Toll Portfolio, Australia*	64 O
Part Evergain Plaza, Hong Kong (18%).	58.2
Eden Commercial Corporate Centre, New Zealand	57.3

* For further details on Toll portfolio please refer to announcement made on 9/8/05

Disposals

Major Transactions

	a Chambridge a chambridge 3331133
Wholesale Fund Portfolio*	1.029.6
50% of Hong Kong Portfolio	292.5
Additional wholesale fund properties - West Avenue Industrial Estate, Edinburgh Parks, SA - Purling Distribution Centre, Edinburgh Parks, SA	14 7 24.5
Acacia Ridge Business Park, Stage 2, Acacia Ridge, Old	23 O

* For further details on wholesale fund portfolio please refer to announcement made on 17/11/05

Completed Developments

			E SERVANIS SI JA JA SERVENE TE TA E TE SERVENE JA SERVE E TE TA E NEGO JUSTE E TE TA PARA "SI RAMANI MARIA NEG E TE E E E E POLITIKANISMO E E E E E E E E ESTA MANI MARIA E E E E E E E E E E E E E E E E E E E 887774488000877780047778908908909	a kan kan kan kan kan kan kan kan kan ka	ang sepertamang , and a family e ganaarayayaa giyo
MGQ (Australia)	185.256	83	251	60	90
MGQ (New Zealand)	130.281	92	130	31	57
MGP (New Zealand)	82.313	94	38	9	74
TOTAL	397,850	8.7	419	100	78

(* 1488)

1997 - Andrew Carl March, england argentinar production HAT 2-23 (18 (28 (29 (22 ) 32 - 22 - 22 - 22 - 22 - 22 - 22 -	e guerra est el guerr		9979997449999979999999799979979997947999999 Kalendaria katika katika da mana ya matu ya matu katika katika katika katika katika katika katika katika kati Marson (1998)
MGQ (Australia)	87.539	84	111	29	95
MGQ (New Zealand)	53,447	-9.1	77	20	9.6
MGQ (Asia)	35.605	10.3	32	8	50
MG Wholesale Fund (Australia)	108.081	7.9	154	40	16.9
MGP	18.424	8.7	10	3	7.2
TOTAL	303.096	8.5	384	100	11.7

Den vel oprttaant flienaliste

ng Tawasang mga mga	A. S. S. A. W.	637338888	осовершилось приняденного действия уческих воздорожених представил учествующему поддержать названия поддержать В 1999 году 1999 года принядки политических принядованиях политических поддержаваниях политических продолжений E. S. S. B. E. BARK A COURT		83 T. T. B
	CO CON	863.9.100	8	EARLAND YN GEOGRAFI	8. III. 11. ZZ
Sydney South	72.260	55.355	77	16.905
Sydney West	1.324.162	703.562	53	620.600	19
Sydney Outer West	829.463	623.402	75	206.061	6
Sydney North	93.705	49.485	53.	44.220
Victoria	1.403.919	355.130	61	548.789	17
Queensiand	553,776	238,329	43.	315,447	9
South Australia	473,605	283.000	60	190,605	6
Auckland	1.840.845	468.981	27	1.351.864	41
Total	6,591,735	3.297.244	50	3,294,491	100

Major Leesing Transactions

RASA SA SA	GRAMMAN NA MARAGARAN	E STANDARD a , arawanggayayang yuuunaa	MANA KATU ng amamang ga EL SALAR SENARA 333913333	e est anno 1999. DI SANTO MA 813323
Smithfield Distribution Centre	Coca Cola Amatil	34.388	2.6	3
Villawood Distribution Centre	Kimberly Clark	17,810	1.5	З
Holroyd Distribution Centre	Ramset Fasteners	13,051	1.2	2
Homebush Corporate Centre	1ª Fleet.	14.616	1.2	2
Federation Distribution Centre	Australian Arrow	9.288	0.6	10
Abbott Industrial Estate	Sonopress	5.314	0.6	8
Seville Business Park	Supply-ling	5,662	0.5	5
Transtech Business Park	W.A. Flick & Co.	3,296	0.5	10
Brodie Industrial Estate	Foxteg Australia	4,108	0.5	4
Burrows Industrial Estate	Sydney Bond Australia	3.929	0.5	5

APPENDIX 4D

MACQUARIE GOODMAN MANAGEMENT LIMITED

RESULTS FOR ANNOUNCEMENT TO THE MARKET

FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The Condensed Consolidated Interim Financial Report has been reviewed by KPMG.

$\bar{1}$

Highlights of results	$31 - Dec - 05$	31-Dec-04	Change

Revenue and other income (\$M)	330.3	40.0	up	725.8%
Profit after tax (\$M)	239.9	12.9	up	1759.7%
Basic earnings per security (cents)	16.9	4.7	up	259.6%
Diluted earnings per security (cents)	16.8	4.6	up	265.2%
Adjusted basic earnings per security (cents)	12.9	4.7	up	174.5%
Proposed/paid distribution/dividend per security (cents)	13.75	4,5	up	205.6%
Franked amount per security (cents)		1.35
Record date for determining entitlements to the distributions/dividends	30-Dec-05	31-Dec-04
Distribution payment date	7-Feb-06	$2-Feb-05$
	31-Dec-05	30-Jun-05	Change

Total assets (\$M)	5,640.5	5,142.4	up	9.7%
Total liabilities (\$M)	2,440.1	2,090.1	up	16.7%
Net assets (\$M)	3,200.4	3,052.3	up	4.9%
Net tangible asset per security (cents)	1.89	2.13	down	$-11.3%$
Total borrowings/equity ratio	60.7%	61.0%	down	$-0.5%$
Issued Capital (\$M)	3,091.1	2,956.2	up	4.6%
Security price (\$)	4.78	4.08	up	17.2%
Number of securities on issue on the ASX	1,455.1	1,405.0	up	3.6%
Number of securities on issue, net of Treasury Securities	1,435.8	1,396.3	up	2.8%
Market capitalisation (\$M)	6,955	5,732	up	21.3%

$\cdot$

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005

Directors' Report Lead Auditor's Independence Declaration Income Statement Balance Sheet Statement of Changes in Equity Cash Flow Statement Notes to the Financial Statements Directors' Declaration Independent Review Report

This Condensed Consolidated Interim Financial Report has been prepared in accordance with Australian equivalents to International Financial Reporting Standards ("AIFRS") including the requirements of AASB 1 Firsttime Adoption of Australian Equivalents to International Financial Reporting Standards. This Interim Financial Report does not include all the notes of the type normally included in an annual financial report. A summary of Macquarie Goodman Management Limited's revised accounting policies adopted under AIFRS has been included in this report together with a reconciliation with the previous Australian Generally Accepted Accounting Principles ("Previous GAAP") and AIFRS.

The Annual Report of Macquarie Goodman Management Limited for the year ended 30 June 2005 was prepared based on Previous GAAP. This Interim Financial Report should be read in conjunction with Macquarie Goodman Management Limited's Annual Report for the year ended 30 June 2005. In addition, reference should be made to any public announcements made by Macquarie Goodman Management Limited during the half year in accordance with the continuous disclosure requirements of the Corporations Act 2001.

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS' REPORT

The Directors of Macquarie Goodman Management Limited ("Company" or "Parent Entity") present their Directors' Report on the Consolidated Entity consisting of the Company and the entities it controlled ("Macquarie Goodman") at the end of, or during, the six months ended 31 December 2005 ("period") and the review report thereon.

Directors

The Directors of the Company at any time during or since the end of the period are:

Mr David Clarke, AO (Chairman)	Appointed 26 October 2000
Dr David Teplitzky (Independent Deputy Chairman)	Appointed 21 November 1990
Mr Gregory Goodman (Chief Executive Officer)	Appointed 7 August 1998
Mr lan Ferrier, AM (Independent Director)	Appointed 1 September 2003
Mr Patrick Goodman (Non-Executive Director)	Appointed 14 April 1998
Mr John Harkness (Independent Director)	Appointed 23 February 2005
Mr James Hodgkinson (Non-Executive Director)	Appointed 21 February 2003
Ms Anne Keating (Independent Director)	Appointed 23 February 2005
Mr James Sloman (Independent Director)	Appointed 1 February 2006
Mr Stephen Girdis (Alternate Director for Messrs David Clarke and James Hodgkinson).	Appointed 21 February 2003
Mr Patrick Allaway (Non-Executive Director)	Appointed 23 February 2005, Resigned 18 November 2005
Ms Lynn Wood (Independent Director)	Appointed 23 February 2005, Resigned 18 November 2005

Review and Results of Operations

The Interim Financial Report for the half year ended 31 December 2005 is prepared in accordance with Australian equivalents to International Financial Reporting Standards ("AIFRS").

Prior to the half year ended 31 December 2005, the financial reports of the Consolidated Entity were prepared in accordance with previous Australian Generally Accepted Accounting Principles ("Previous GAAP"). In preparing the Consolidated Entity's Interim Financial Report for the half year ended 31 December 2005, certain accounting and valuation methods adopted under Previous GAAP have been amended to comply with AIFRS. With the exception of financial instruments, the comparative figures have been restated to reflect these adjustments. The Consolidated Entity has taken the exemption available under AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards to apply AASB 132 Financial Instruments: Disclosure and Presentation and AASB 139 Financial Instruments: Recognition and Measurement only from 1 July 2005.

Reconciliations and descriptions of the effect of the transition from Previous GAAP to AIFRS are provided in note 26 to the financial statements.

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS' REPORT

Review and Results of Operations (continued)

The performance of the Consolidated Entity, as represented by the results of its operations for the period, was as follows:

	Consolidated
	31 Dec 05	31 Dec 04
Revenue and other income (\$M)	330.3	40.0
Profit attributable to Security holders of Macquarie Goodman (\$M)	239.9	12.9
Basic earnings per Company share $(e)$	1.2	4.7
Basic earnings per stapled security $(e)$	16.9
Basic earnings per Company share as disclosed under Previous GAAP (¢)		5.8
Dividends and distributions provided for or paid by Macquarie Goodman (\$M)	195.4	22.1
Weighted average number of stapled securities on issue (M)	1,416.3	275.7
	31 Dec 05	30 Jun 05
Net assets (\$M)	3,200.4	3,052.3
Number of stapled securities on issue (M)	1,435.8	1,396.3
Net tangible assets per stapled security (\$)	1.89	2.13

Dividends and Distributions

The Company did not declare any dividends during the six months ended 31 December 2005 or up to the date of this report (half year ended 31 December 2004: 12.5 cents per share).

Distributions declared by a controlled entity, Macquarie Goodman Industrial Trust ("MGI"), directly to Securityholders during the period are as follows:

Distribution cpu	Total amount \$M	Date of payment

6.875	96.8	$3$ Nov 05
6.875	98.6	7 Feb 06
13.750	195.4

State of Affairs

Key changes in Macquarie Goodman's state of affairs during the period were as follows:

a) Arlington Acquisition

Macquarie Goodman acquired Arlington Securities Plc ("Arlington"), a property funds management business located in Europe, on 23 December 2005 for an enterprise value of \$452.8 million (GBP 195 million). In addition, Macquarie Goodman acquired investments in Arlington managed funds for approximately \$86 million (GBP 37 million).

b) Launch of Macquarie Goodman Wholesale Fund

Effective from 20 December 2005, Macquarie Goodman launched the Macquarie Goodman Wholesale Fund ("Wholesale Fund" or "MGWF"). Macquarie Goodman retains a 32.6% equity interest in the Wholesale Fund and provides property management and other services to the fund. This transaction resulted in net cash inflows of \$407.6 million from new equity issued to outside investors.

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS' REPORT

c) Interest in Hong Kong

As at 31 December 2005, Macquarie Goodman continued to acquire property investments in Hong Kong for the launch of a third party investment vehicle in Hong Kong.

In the opinion of the Directors, there were no other significant changes in the state of affairs of Macquarie Goodman that occurred during the period.

Strategy and Outlook

Looking forward, we will continue to strengthen our presence in Australia, New Zealand, Asia and Europe. The focus for these regions is on growing third party funds management businesses and pursuing vield-accretive properties that are well located and provide stability through the diversification of our customer base and asset and geographic mix.

Likely developments in the near future include seeding a property fund in Hong Kong in the first half of 2006 with a view to expanding Macquarie Goodman's third party funds management operations.

Further information as to other likely developments in the operations of the Consolidated Entity and the expected results of those operations in future periods have not been included in the Financial Report because disclosure of the information would be likely to result in unreasonable prejudice to the Consolidated Entity.

Events Subsequent to Reporting Date

Subsequent to 31 December 2005 Macquarie Goodman exchanged and/or settled contracts for the purchase of properties in Hong Kong for \$214.1 million (HK\$1.219.2 million). The Consolidated Entity also entered into interest rate swap contracts to hedge borrowings denominated in British pounds.

In the opinion of the Directors, other than the matter discussed above, there has not arisen in the interval between the end of the period and the date of the Directors' Report, any item, transaction or event of a material and unusual nature which has significantly affected the operations of the Consolidated Entity, the results of those operations, or the state of affairs of the Consolidated Entity, in the period subsequent to 31 December 2005.

Rounding

Macquarie Goodman is an entity of a kind referred to in Australian Securities and Investments Commission ("ASIC") Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, amounts in the Financial Report and Directors' Report have been rounded to the nearest hundred thousand dollars, unless otherwise stated.

The Directors' Report is made in accordance with a resolution of the Directors.

David Clarke, AO Chairman

Sydney, 28 February 2006

égorγ Goodmán actor

Lead auditor's independence declaration under Section 307C of the Corporations Act 2001

The Directors of Macquarie Goodman Management Limited To:

I declare that, to the best of my knowledge and belief, in relation to the review for the half year ended 31 December 2005 there have been:

no contraventions of the auditor independence requirements as set out in the Corporations Act $\ddot{\phantom{0}}$ 2001 in relation to the review; and
no contraventions of any applicable code of professional conduct in relation to the review. $\omega$

$\overline{\Omega}$

P M Reid Partner

Sydney, 28 February 2006

		Consolidated
		31 Dec 05	31 Dec 04
	Note	SM	\$M.
REVENUE AND OTHER INCOME
Gross property income		224.0
Net gains from fair value adjustments on investment properties
- Realised during the period		18.3
- Unrealised during the period		56.6
Net gain on disposals of investment properties	6	5.1
Share of net results of equity accounted investments	13	11.9	1.7
Net gain on disposal of equity investments		4.2
Funds management		3.3	10.8
Property services		1.0	93
Development management		3.0	14.7
Distributions from listed investments		3.9	3.5
Total revenue and other income		330.3	40.0
EXPENSES
Property expenses
Employee expenses		(36.3)
Finance costs - net	6	(6.1)	(11.6)
Other expenses		(42.0)	(1.4)
Total expenses		(2.7)	(6.1)
		(87.1)	(19.1)
Profit before income tax	6	243.2	20.9
Income tax expense	7	(3.8)	(8.0)
Profit after income tax		239.4	12.9
Amount attributable to minority interests		0.5
Profit attributable to Securityholders of Macquarie Goodman		239.9	12.9

Profit attributable to Shareholders of the Company		16.4	12.9
Profit attributable to Unitholders of Macquarie Goodman Industrial Trust		223.5
Profit attributable to Securityholders of Macquarie Goodman	21	239.9	12.9

Basic earnings per Company share (¢)	2	1.2	4,7
Basic earnings per stapled security (¢)	$\boldsymbol{2}$	16.9
Diluted earnings per Company share $\langle \phi \rangle$	$\boldsymbol{2}$	1.1	4.6
Diluted earnings per stapled security (¢)	$\boldsymbol{2}$	16.8
Distribution/dividend per stapled security $(\phi)$	2	13.8	4.5

The Income Statement is to be read in conjunction with the accompanying notes.

$\bar{z}$

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES BALANCE SHEET AS AT 31 DECEMBER 2005

		Consolidated
		31 Dec 05	30 Jun 05
	Note	\$M	\$Μ
CURRENT ASSETS Cash assets
Receivables		52.7	7.2
Inventories	9	107.0	50.3
Current tax receivables	10	11.2	13.5
Other assets	11	5.3	6,3
Total current assets		30.1	46.6
		206.3	123.9
NON-CURRENT ASSETS
Receivables	9	29.4	4.8
Investment properties	12	4,345.6	4,758.4
Inventories	10	13.6	17.2
Investments accounted for using the equity method	13	335.4	120.0
Deferred tax assets		6.5	7.0
Other financial assets	14	231.0	101.0
Other assets	11	2.3	0.8
Property, plant and equipment		11.4	3,3
Intangible assets	15	459.0	6.0
Total non-current assets		5,434.2	5,018.5
Total assets		5,640.5	5,142.4

CURRENT LIABILITIES
Payables	16	360.5	91.7
Interest bearing liabilities Provisions	17	941.0	1,000.9
Total current liabilities	18	100.6	92.9
		1,402.1	1,185.5
NON-CURRENT LIABILITIES
Payables	16
Interest bearing liabilities	17	17.2 1,002.3	28.5
Deferred tax liabilities		18.1	862.3
Provisions	18	0.4	13.4
Total non-current liabilities		1,038.0	0.4 904.6
Total liabilities		2,440.1	2,090.1
Net assets		3,200.4	3,052.3

EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE COMPANY
Issued capital	19	99.7	140.5
Reserves	20	53.5	37.7
Accumulated losses	21	(87.9)	(109.0)
Total equity attributable to Shareholders of the Company		65.3	69.2

EQUITY ATTRIBUTABLE TO UNITHOLDERS OF MGI
Issued capital	19	2,991.4	2,815.7
Reserves Retained earnings	20	64.8	9.0
	21	56.1	89.2
Total equity attributable to Unitholders of MGI		3,112.3	2,913.9
MINORITY INTERESTS	22	22.8	69.2
Total equity		3,200.4	3,052.3

The Balance Sheet is to be read in conjunction with the accompanying notes.

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2005

		Consolidated
		31 Dec 05	31 Dec 04
	Note	SM	\$M.
Total equity at the beginning of the half year	26	3,052.3	133.7
PROFIT AFTER TAX
Profit attributable to Securityholders for the period		239.9	12.9
Total recognised income and expenses for the half year		239.9	12.9
TRANSACTIONS WITH EQUITYHOLDERS IN THEIR CAPACITY AS EQUITYHOLDERS
Distributions provided for or paid to Unitholders		(195.4)
Movement in minority interests	22	4.6
Dividends recognised during the period			(22.1)
Changes in accounting policy:
Amortisation of deferred finance costs relating to RePS		(0.9)
Total transactions and adjustments recognised directly in equity		(191.7)	(22.1)
MOVEMENTS IN RESERVES
Net movement in Asset Revaluation Reserve		11.2
Changes in fair value of interest rate swap derivatives during the period		6.1
Net movement in Foreign Currency Translation Reserve		(2.4)
Net movement in Capital Profits Reserve		0.6
Increase in RePS Repurchase Reserve on conversion of RePS		14.8
Decrease in Employee Compensation Reserve		(0.3)
Changes in accounting policy:
Fair value of interest rate swap derivatives recognised in reserves at 1 July 2005		(14.0)
Net changes recognised directly in equity	20	16.0
ISSUED CAPITAL
Increase due to Distribution Reinvestment Plan		135.6
Treasury securities issued under the ESAP		(49.0)
Increase in Issued Capital on conversion of RePS		45.8
Other increases in Issued Capital			2.3
Other increases due to the conversion of options		4.2	2.7
Issue costs		(1.7)
Changes in accounting policy:
Reclassification of RePS from equity to debt at 1 July 2005		(51.0)
Total increase in issued capital	19	83.9	5.0
Total equity at the end of the half year		3,200.4	129.5

The Statement of Changes in Equity is to be read in conjunction with the accompanying notes.

31 Dec 05 Note \$M CASH FLOWS FROM OPERATING ACTIVITIES Property income received 208.5 Other cash receipts from services provided 7.7 33.5 GST collected (net of GST paid) 3.9 Property expenses paid (44.1) Other cash payments in the course of operations (8.8) (15.1) Dividends and distributions received 7.8 3.5 Interest received 1.2 0.2 Finance costs paid (40.4) (2.2) Income taxes paid (net of refunds) (2.3) (4.3) Net cash provided by operating activities 133.5 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from deferred settlement and sale of investment properties 76.1 10.0 Proceeds from sale of equity investments (net of cash disposed) 4 880.5 Payments for equity investments (381.9) (31.7) Payments for investment properties and developments (788.0) Payments for property, plant and equipment (1.5) (0.5) Payments for intangible assets (3.6) Net cash used in investing activities (214.8) (25.8) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of securities 0.7 2.3 Transaction costs from issue of securities (0.7) Loans to related entities (16.4) Proceeds from borrowings 1,226.2 29.0 Repayment of borrowings (1,030.2) (8.2) Dividends and distributions paid (52.8) (9,6) Net cash provided by financing activities 126.8 13.5 Net increase in cash held 45.5 3.3 Cash at the beginning of the period 7.2 10.4 Cash at the end of the period 52.7 13.7		Consolidated
			31 Dec 04
			SM.










			15.6

Details of non-cash transactions are set out in note 23 to the financial statements.

The Cash Flow Statement is to be read in conjunction with the accompanying notes.

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies which have been adopted in the preparation of the Financial Report are set out below.

aì Basis of Preparation of Interim Financial Report

This Condensed Consolidated Interim Financial Report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting, the recognition and measurement requirements of applicable Australian Accounting Standards, Urgent Issues Group Consensus Views, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. This interim financial report is to be read in conjunction with the 30 June 2005 Annual Financial Report and any public announcements by Macquarie Goodman during the half year in accordance with continuous disclosure obligations arising under the Corporations Act 2001.

The accounting policies adopted are consistently applied by each entity in the Consolidated Entity. As a result of the implementation of Australian equivalents to International Financial Reporting Standards ("AIFRS"), the basis of presentation of the interim financial report is different to that of the 30 June 2005 Annual Report.

This Interim Financial Report does not include full note disclosure of the type normally included in an annual financial report. It has been prepared on the basis of historical costs except that the following assets and liabilities are stated at fair value; investment properties, derivative financial instruments and financial instruments classified as available for sale.

The Condensed Consolidated Interim Financial Report was authorised for issue by the Directors on 28 February 2006.

Application of AASB 1 First-time Adoption of Australian Equivalents to International Financial b) Reporting Standards ("AIFRS")

This Interim Financial Report is the first interim financial report to be prepared by Macquarie Goodman Management Limited ("Macquarie Goodman") in accordance with AIFRS. AIFRS are based on International Financial Reporting Standards ("IFRS") and these financial statements comply with IFRS. AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards has been applied in preparing these financial statements.

In preparing these financial statements, certain accounting and valuation methods have been amended from those adopted under Australian GAAP ("Previous GAAP"). With the exception of financial instruments, the comparative figures were restated to reflect these adjustments. Macquarie Goodman has elected to apply AASB 132 Financial Instruments: Disclosure and Presentation and AASB 139 Financial Instruments: Recognition and Measurement from 1 July 2005.

An explanation of how the transition to AIFRS has affected the financial position and financial performance of the Consolidated Entity is provided in note 26. This note includes reconciliations of equity and profit reported under Previous GAAP to equity and profit reported under AIFRS for comparative periods. There was no material effect on the presentation of the Cash Flow Statement as a result of the change from Previous GAAP to AIFRS.

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c) Principles of Consolidation

Accounting for the Acquisition of Macquarie Goodman Industrial Trust ("MGI")

The merger of Macquarie Goodman Management Limited and MGI was approved at separate meetings of the respective Shareholders and Unitholders on 25 January 2005. Following approval of the merger, shares in the Company and units in MGI were stapled to one another and are quoted as a single security on the Australian Stock Exchange ("ASX").

Australian Accounting Standards require an acquirer to be identified and an in-substance acquisition to be recognised. In relation to the merger of the Company and MGI, the Company is identified as having acquired control over the assets of MGI. To recognise the in-substance acquisition, the following accounting principles have been applied:

i) no goodwill is recognised on acquisition of MGI because there is no direct ownership interest by Macquarie Goodman in MGI:
ii) the equity issued by Macquarie Goodman Management Limited to MGI Unitholders to give effect to the transaction is recognised at the dollar value of the consideration payable by the MGI Unitholders. This is because the issue of shares by Macquarie Goodman was administrative in nature rather than for the purposes of the Company acquiring an ownership interest in MGI: and
iii) the issued units of MGI are not owned by the Company and are presented as minority interests in the Consolidated Entity notwithstanding that the Unitholders of MGI are also the Shareholders of the Company by virtue of the stapling arrangement. Accordingly the net assets of MGI and the profit arising from those net assets have been separately identified in the Income Statement and Balance Sheet.

Joint Ventures

A joint venture is either an entity or operation that is jointly controlled by the Consolidated Entity.

Joint Venture Entities

In the consolidated financial statements, investments in joint venture entities are accounted for using equity accounting principles. Investments in joint venture entities are carried at the lower of the equity accounted amount and recoverable amount.

The Consolidated Entity's share of the joint venture entity's net profit or loss is recognised in the consolidated Income Statement from the date joint control commences. Other movements in reserves are recognised directly in consolidated reserves.

Joint Venture Operations

The Consolidated Entity's interests in unincorporated joint ventures are brought to account by including its proportionate share of joint venture operations' assets, liabilities and expenses and the Consolidated Entity's revenue from the sale of its share of output on a line-by-line basis from the date joint control commences to the date joint control ceases.

Transactions Eliminated on Consolidation

Unrealised gains and losses and inter-entity balances resulting from transactions with or between controlled entities are eliminated in full on consolidation.

Unrealised gains resulting from transactions with associates and joint ventures, including those relating to contributions of non-monetary assets on establishment, are eliminated to the extent of the Consolidated Entity's interest. Unrealised gains relating to associates and joint venture entities are eliminated against the carrying amount of the investment. Unrealised losses are eliminated in the same way as unrealised gains, unless they evidence a recoverable amount impairment.

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ď) Revenue Recognition

Rental Income

Rental income entitlements under operating leases are recognised on a straight-line basis over the term of the lease contract. Where operating lease rental income is recognised relating to fixed increases in rentals in future periods, an asset is recognised. This asset is a component of the relevant investment property carrying amount. The cost of lease incentives provided to tenants is recognised on a straight-line basis as a reduction of gross operating lease rental income.

Asset Sales

The net gains on disposals of investment properties are included as other income of the Consolidated Entity when contracts for the sale have been unconditionally exchanged and the risks and rewards of ownership have been transferred. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.

$e)$ Foreign Currency Translation

Transactions

Foreign currency transactions are translated to Australian currency being the presentation currency of Macquarie Goodman, at the rates of exchange ruling at the dates of the transactions. Amounts receivable and payable in foreion currencies at reporting date are translated at the rates of exchange ruling on that date. Resulting exchange differences are recognised in the Income Statement.

Translation of Controlled Foreign Operations

Exchange differences arising on monetary items that form part of the net investment in a foreign operation are taken to the Income Statement in the Parent Entity and against the Foreign Currency Translation Reserve on consolidation.

Non-monetary assets and liabilities of foreign operations that are measured in terms of historical cost are translated at rates of exchange ruling at the date of the initial transaction. Non-monetary items which are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

The Income Statement is translated at weighted average rates for the period. Exchange differences arising on translation are taken directly to the Foreign Currency Translation Reserve until the disposal or partial disposal of the operations. Goodwill and fair value adjustments arising on the acquisition of foreign entities are treated as assets of the foreign entities and translated at the closing rate.

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Investment Properties Ð

Investment properties comprise investment interests in land and buildings held for the purpose of leasing to produce rental income. Investment properties are carried at their fair value.

Components of Investment Properties

Land and buildings (including integral plant and equipment) comprising investment properties, are regarded as composite assets and are disclosed as such in the Financial Report.

Investment property carrying values include the costs of acquiring the properties. Where a contract of purchase includes a deferred payment arrangement, the acquisition value is determined as the cash consideration payable in the future, discounted to present value at the date of acquisition.

Amounts provided to customers as lease incentives and assets relating to fixed increases in operating lease contracts are included within investment property values. Lease incentives are amortised over the lease term.

Revaluations of Investment Properties

An independent valuation of investment properties is obtained at least every three years to use as a basis for measuring the fair value of the properties.

The independent registered valuer determines the market value based on a willing, but not anxious, buyer and seller, a reasonable period to sell the property, and that the property is reasonably exposed to the market.

At reporting dates occurring between obtaining independent valuations, the Directors review the carrying value of the Consolidated Entity's investment properties to be satisfied that, in their opinion, the carrying value of the investment properties reflects the fair value of the investment properties at that date.

Changes in fair value are recognised directly in the Income Statement.

Disposal of Investment Properties

The gain or loss on disposal of investment properties is calculated as the difference between the carrying amount of the property at the time of the disposal and the proceeds on disposal and is included in the Income Statement in the period of disposal.

Redevelopment Projects

Where a property is undergoing redevelopment works, the cost of redevelopment works is added to its previously stated fair value. The carrying amounts of redevelopment projects are reviewed to determine whether they are in excess of their recoverable amount at each reporting date. If the carrying amount of a redevelopment project exceeds its recoverable amount, the project is written down to the lower amount. The Consolidated Entity's policy is to revalue redevelopment properties to their fair value at the date of their practical completion.

Development Costs of Investment Properties

Costs of development include the costs of all materials used in construction, costs of managing the project, holding costs and borrowing costs incurred during construction.

The costs of development are included within investment properties. The carrying amounts of non-current assets valued on the cost basis are reviewed to determine whether they are in excess of their recoverable amount at the balance date. If the carrying amount of a non-current asset exceeds its recoverable amount, the asset is written down to the lower amount. The write-down is recognised as an expense in the profit or loss in the reporting period in which it occurs.

The Consolidated Entity's policy is to revalue development properties to their fair value at the date of their practical completion.

g) Deferred Leasing and Tenancy Costs

Expenditure on direct leasing and tenancy costs is deferred and amortised over the lease term in proportion to the rental income recognised in each financial year.

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

h1 -Finance Costs

Expenditure incurred in obtaining debt finance is deferred and written off over the period of the finance facility. Finance costs relating to a qualifying asset are capitalised as part of the cost of that asset using a weighted average cost of debt. Qualifying assets are assets which take more than twelve months to get ready for their intended use or sale. All other finance costs are expensed as incurred.

$\ddot{\mathbf{n}}$ Invastments

Investments in listed entities which are designated as available for resale (other than investments in listed associates) are measured at fair value which is determined with reference to quoted market values at reporting date. Changes in the fair value of such investments are recognised in equity. When investments classified as available for sale are sold, the accumulated fair value adjustments are included in the Income Statement as gains or losses from disposals of investment securities.

Recoverable Amount of Non-Current Assets Valued on Cost Basis j)

The carrying amounts of non-current assets valued on the cost basis are reviewed to determine whether they are in excess of their recoverable amount at reporting date. If the carrying amount of a non-current asset exceeds its recoverable amount, the asset is written down to the lower amount. The write-down is expensed in the reporting period in which it occurs.

Where a group of assets working together supports the generation of cash inflows, recoverable amount is assessed in relation to that group of assets.

In assessing recoverable amounts of non-current assets, the relevant cash flows have been discounted to their present value.

k) Interest Bearing Liabilities

Bank loans are recognised on inception at their fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing liabilities are stated at amortised cost with any difference being recognised in the Income Statement over the period of the borrowings on an effective interest basis, subject to set-off arrangements. Interest expense is accrued at the contracted rate and included in the Balance Sheet under current "Payables".

I) Hedging

(i) Policy from 1 July 2005 Onwards

Transactions are designated as a hedge of the anticipated specific purchase or sale of goods or services, purchase of qualifying assets, or an anticipated interest transaction, only when they are expected to reduce exposure to the risks being hedged, are designated prospectively so that it is clear when an anticipated transaction has or has not occurred and it is probable the anticipated transaction will occur as designated.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is ultimately recognised in the Income Statement. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is transferred to the income Statement.

(a) Cash Flow Hedge

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognised directly in equity. The gain or loss relating to any ineffective portion is recognised in the Income Statement.

(b) Hedge of Net Investment in Foreign Operation

The portion of the gain or loss on an instrument used to hedge a net investment in a foreign operation that is determined to be an effective hedge is recognised directly in equity. The ineffective portion is recognised immediately in the Income Statement.

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(ii) Comparative Period Policies - Periods up to 30 June 2005

Gains or losses on the hedge arising up to the date of the anticipated transaction, together with any costs or gains arising at the time of entering into the hedge, are deferred and included in the measurement of the anticipated transaction when the transaction has occurred as designated. Any gains or losses on the hedge transaction after that date are included in the Income Statement.

The net amounts receivable and payable under interest rate swap arrangements are accounted for on an accruals basis and are included in the interest expense.

The net amounts receivable or payable under forward foreign exchange contracts and the associated deferred gains or losses are recorded on the Balance Sheet from the date of inception of the hedge transaction. When recognised, the net receivables or payables are revalued using the foreign currency current at the reporting date.

Where a hedge is redesignated as a hedge of another transaction, gains or losses arising on the hedge prior to its redesignation are only deferred where the original anticipated transaction is still expected to occur as designated. When the original anticipated transaction is no longer expected to occur as designated, any gains or losses relating to the hedge instrument are included in the Income Statement for the period.

m) Intangible Assets

Goodwill

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is tested annually for impairment. No amortisation is provided.

Management Rights

Management rights are carried at the lower of cost or recoverable amount. Management rights are tested annually for impairment. Where management rights are for an indefinite term and/or where renewal of rights is routinely renewed, no amortisation is provided. Where management rights are for a finite period, they are amortised on a straight-line basis over that term.

n) Income Tax

Income tax is recognised in the Income Statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the period and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not accounted for: goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities.

o) Employee Benefits

Employee Securities Acquisition Plan ("ESAP")

Securities granted to employees under the terms of the ESAP are reguired to be accounted for as options. The fair value of options is expensed to the Income Statement with a corresponding increase in the Employee Compensation Reserve. The options expense is calculated on a straight-line basis over the period to the vesting date and assumes that all conditions of the grant and employee service will be met. The fair value of options is measured at grant date using the Black-Scholes option-pricing model.

Where the Company has issued or purchased securities in advance of ESAP vesting conditions being met by employees, these securities are recognised as a debit balance in equity and classified as "Treasury Securities". These securities are treated as ordinary issued securities only when the vesting conditions of these securities under the ESAP have been met.

The above accounting policy has not been applied to options issued prior to 7 November 2002 but vested before 1 January 2005.

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

p) Segment Reporting

Segment revenues, expenses, assets and liabilities are those that are directly attributable to a segment and the portion that can be allocated to the segment on a reasonable basis. Segment assets and liabilities include all assets and liabilities used by a segment which can be directly attributed to segment activity, including tax assets and liabilities.

Prior to the current accounting period, business segments were presented as the primary reporting segment of the Consolidated Entity. As a result of the expansion in overseas operations of the Consolidated Entity geographical segments are now presented as the primary reporting segment. This change does not have any impact on the consolidated result for the current period or the previous period.

a) – Rounding

In accordance with ASIC Class Order 98/100, the amounts shown in the Financial Report and Directors' Report have been rounded to the nearest hundred thousand dollars, unless otherwise stated.

$\mathbf{r}$ Comparative Figures

Where applicable, certain comparative figures have been restated to conform with the presentation in the current period's Financial Report.

NOTE 2 - EARNINGS PER STAPLED SECURITY

	Consolidated
	31 Dec 05	31 Dec 04
	cents	cents
ATTRIBUTABLE TO SECURITYHOLDERS OF MACQUARIE GOODMAN
Basic earnings per security	16.9	4.7
Basic earnings per security as disclosed under Previous GAAP		5.8
Adjusted basic earnings per security – refer to note 2(i)	12.9	4.7
Diluted earnings per security	16.8	4.6
Diluted earnings per security as disclosed under Previous GAAP		5.7
Distribution/dividend per security - refer to note 2(ii)	13.8	4.5

	Number of securities
	31 Dec 05	31 Dec 04
Weighted average number of securities used in calculating
basic earnings per Company share, stapled security and distribution/dividend
per security	1,416,288,155	275,684,797
Effect of shares issued under the ESAP accounted for as options	9,810,072
Weighted average number of securities used in calculating adjusted basic earnings per security	1,426,098,227	275,684,797
Effect of Executive options on issue and RePS conversion	3.075.922	7,102,357
Weighted average number of securities used in calculating diluted earnings per Company share and stapled security	1,429,174,149	282,787.154

(i) Profit after Tax Used in Calculating Earnings per Security

	31 Dec 05	31 Dec 04
	SM	SM.
Profit after tax used in calculating basic and diluted earnings per security	239.9	12.9
Less: Unrealised gains on investment property revaluations	(55.6)
Profit after tax used in calculating adjusted basic earnings per security	184.3	12.9

(ii) Dividends and Distributions for the Period Used in Calculating Dividend/Distribution per Security

	195.4	12.5 12.5
31 December 2005 distribution of 6.875 cents (2004: dividend of 4.5 cents)	98.6
30 September 2005 distribution of 6.875 cents (2004; nil)	96.8

NOTE 3 - ACQUISITIONS OF SUBSIDIARIES

Macquarie Goodman acquired all of the issued share capital of Arlington Securities Plc ("Arlington") on 23 December 2005. The Consolidated Entity also acquired 60% of the issued equity of Ascendas Global Gateway Pte Limited, a Singapore company, and all of the issued share capital of Growth Link Limited, a Hong Kong company, during the period.

The effect of the acquisitions on the Consolidated Entity's assets and liabilities is as follows:

	Arlington	Other	Total
	\$M	\$M	\$M
Cash	37.3	1.1	38.4
Receivables	56.2	0.2	56.4
Investments in unlisted funds	98.4		98.4
Investments accounted for using the equity method	10.8		10.8
Investment properties		76.5	76.5
Property, plant and equipment	7.2		7.2
Intangible assets	98.5		98.5
Other assets	11.3		11.3
Payables	(56.5)	(1.2)	(57.7)
Interest bearing liabilities	(67.9)	(12.9)	(80.8)
Deferred tax liabilities		(0.3)	(0.3)
Net identifiable assets and liabilities	195.3	63.4	258.7
Less: Minority interests		(2.6)	(2.6)
Add: Intangible assets on acquisition	354.3		354.3
Less: Deferred consideration	(224.6)		(224.6)
Gross cash outflow	(325.0)	(60.8)	(385.8)
Cash held by subsidiaries on acquisition	37.3	1.1	38.4
Net cash outflow	(287.7)	(59.7)	(347.4)

The fair value shown for each of the separately identified assets, liabilities and contingent liabilities of Arlington has been determined on a provision basis at the reporting date. The fair value for each item is subject to adjustment once the initial accounting for the acquisition has been completed.

NOTE 4 - DISPOSALS OF INTERESTS IN SUBSIDIARIES

Launch of the Macquarie Goodman Wholesale Fund a)

On 20 December 2005, two wholly owned subsidiaries of MGI, Macquarie Goodman Wholesale Trust No. 1 (formerly Macquarie Goodman Thomas Trust) and Macquarie Goodman Wholesale Trust No. 2 (collectively known as "Wholesale Fund" or "MGWF") redeemed 67.4% of their issued equity held by the Consolidated Entity. The Wholesale Fund subsequently issued equity to third parties reducing the Consolidated Entity's equity interest to 32.6% of the Wholesale Fund. Proceeds from the unit redemption of \$409 million were paid to the Consolidated Entity. Subsequent to the transaction, the Consolidated Entity accounts for its interest in the Wholesale Fund using the equity accounting method.

Up to the date of disposal of the equity, the Wholesale Fund contributed profit of \$48.9 million to the consolidated profit for the period.

The principal effect of the disposal was a decrease in investment properties of the Consolidated Entity of \$834.2 million, a decrease in interest bearing liabilities of \$233 million. The net cash inflow on disposal was \$407.6 million.

b) Reduction of MGI's interest in MGI HK Investments ("MGIHK")

On 14 November 2005, the Consolidated Entity sold 50% of its equity interest in MGIHK to Macquarie Bank Limited for consideration of A\$0.3 million (HK\$1.6 million). Subsequent to the transaction, the Consolidated Entity accounts for its interest in MGIHK using the equity accounting method.

Up to the date of disposal of the equity, MGIHK contributed profit of A\$0.7 million to the consolidated profit for the interim period.

The principal effect of the disposal was a decrease in investment properties of the Consolidated Entity of A\$475 million and a decrease in interest bearing liabilities of A\$481 million. The net cash outflow on disposal was AS8.4 million (HK\$47.8 million).

NOTE 5 - SEGMENT REPORTING

Macquarie Goodman is based in Australia and has operations in New Zealand, Asia and Details of the products and services undertaken by Macquarie Goodman in each region
are as follows:

Geographical Segments	Products and Services
Australia and New Zealand	Direct and indirect ownership of investment properties, funds management, property management, leasing services, due diligence works and development management
Asia	Direct and indirect ownership of investment properties, funds management, property management, leasing services and due diligence works
Europe	Indirect ownership of investment properties, funds management, property management, leasing services, due diligence works and development management
of the assets.	Geographical segment revenue and expenses are presented based on the geographical location of customers serviced. Segment assets and liabilities are classified based on the location

Primary Segment Reporting - Geographical Segments

	Australia		New Zealand		Asia		Europe		Consolidated
	2005	2004	2005	2004	2005	2004	2005	2004	2005	2004
	Σã	Ξ ij,	i G	ξ,	Σ,	蓄好	ia S	ta Sa	ä	is S
HALF YEAR ENDED 31 DECEMBER
Revenue (gross property income, funds management,
property services and development management)	216.1	ო ्र N	ය ර	မှာ ကိ	6.8	b	$\ddot{\bullet}$	E	231.3	34.8
Net gains from fair value adjustments on investment
properties	73.9	ı		ı		ı		E	73.9
Net gain on disposals of investment properties	ก ค่	ı	ه ۳	ı		ŧ		ŋ	$\frac{1}{5}$
Share of net results of equity accounted investments	တို့	L	is G	ł	$\mathbf{e}$	ΓJ		ŧ	11.9	2
Net gain on disposal of equity investments	ر په	,		ı		1			$\frac{2}{4}$
Distributions from listed investments		ı		።	on M	$\frac{4}{3}$	ı	ı	ශ ෆ	မှာ
Total revenue and other income	301.0	m oj N	15.2	၆ ဝ	12.5	្ន	¢		330.3	40.0
LIDSBE LZWEGES
Profit before income tax	230.8	O) $\overline{4}$	$\frac{8}{1}$	28 24	င္ဘာ	ر وي	$\frac{6}{1}$	t	243.2	20.9
Income tax expense									(3.8)	(8.0)
Profit after income tax									239.4	12.9

$\mathbb{S}$

NOTE 5 - SEGMENT REPORTING (CONTINUED)

Primary Segment Reporting - Geographical Segments

	Australia		New Zealand		Asia		Europe			Consolidated
	31 Dec	30 Jun 05	31 Dec	30 Jun	31 Dec	30 Jun		ສຸດ ປຸເກ	31 Dec	$30 \text{ Jun}$
	8		ő	S	8	မ္မ	31 Dec 05	8	ö	50
	医研	Ξ	三体	Σő	SA	الا تاريخ	Σç	芝の	ξã	ing Sida
ASSETS
Investment properties	4,003.5	e. C 4,490	321.8	141.8	20.3	126.3			4,345.6	4,758.4
Investments accounted for using the equity method	199.3		118.2	113.7	न र	63	10.5		335.4	120.0
Other investments					132.6	101.0	98.4		231.0	101.0
Intangible assets			م ق	ွ			452.8		459.0	6.0
Inventories	24.8	నె							24.8	30.7
Other assets	61.6	P, G	17.4	27.9	42.2	30.7	123.5		244.7	126.3
Total assets	4,289.2	4,588.7	463.6	289.4	202.5	264.3	685.2	¥	5,640.5	5,142.4

LIABILITIES
Payables	(42.8)	(72.2)	(52.2)	(45.4)	(1.4)	(2.6)	(281.3)	ŧ	(377.7)	(120.2)
Interest bearing liabilities	(1,007.0)	(1,419.0)	(361.4)	(191.6)	(172.4)	(252.6)	(402.5)	ï	(1, 943.3)	(1,863.2)
Provisions	(100.9)	(93.2)	(0, 1)	ี อิ อ					(101.0)	(93.3)
Deferred tax liabilities	$\overline{c}$		$\overline{6}$	$\widetilde{e}$	(17.8)	(12.7)			(18.1)	(13.4)
Total liabilities	(1,150.6)	(1,584.4)	(414.1)	(237.8)	(191.6)	(267.9)	(683.8)		(2,440.1)	(2,090.1)
Sephindully stosses to N	3,138.6	4 3,003	49.5	51.6	10.9	ີ ຕູ້	$\mathbf{r}$		3,200.4	3,052.3

Change in Accounting Policy

Macquarie Goodman previously identified business segments as its primary reporting segment. As the Consolidated Entity continues to expand into new geographical locations, the
geographical segment has been identified as th reported financial result for the comparative period.

NOTE 6 - PROFIT BEFORE INCOME TAX

		Consolidated
	31 Dec 05	31 Dec 04
	SM.	\$M
Profit before Income Tax has been Arrived at after (Charging)/Crediting the Following Items:
Interest income	1.2	0.7
Bank loans and overdraft interest	(67.9)	(2.0)
Amortisation of borrowing costs	(2.2)	(0.1)
Capitalised borrowing costs	26.9
	(43.2)	(2.1)
Finance costs - net	(42.0)	(1.4)
Proceeds from sale of investment properties	46.2
Carrying value of investment properties sold	(41.1)
Net gain on disposals of investment properties	5.1
Depreciation of property, plant and equipment	(0.6)	(0.3)
Amortisation of leasehold improvements	(0.1)	(0.1)
Amortisation of management rights		(0.8)
Total depreciation and amortisation	(0.7)	(1.2)
NOTE 7 - TAXATION
		Consolidated
	31 Dec 05 \$M	31 Dec 04 \$Μ
Income Tax Expense
Current Tax Expense
Current period	2.3 ₂	7.5
Adjustment for prior periods	(0.2)
	2.1	7.5
Deferred Tax Expense recognised in the Income Statement
Movements in deferred tax assets	1.2	0.5
Other	0.5
	1.7	0.5
Total	3.8	8.0

NOTE 8 - DIVIDENDS AND DISTRIBUTIONS

a) Dividends Declared by the Company

No dividends were declared or paid by the Company during the half year ended 31 December 2005 or up to the date of this report. The following information is provided in respect of the comparative period:

2 Feb 05
Partly franked 30.0

b) Distributions Declared by MGI during the period

Distributions from MGI	Distribution CDU	Total Amount \$M	Date of Payment
2005 distributions for the quarters ended:
30 September	6.875	96.8	3 Nov 05
31 December	6.875	98.6	7 Feb 06
	13.750	195.4

Details of distributions paid or declared by MGI for the comparative period are not included as MGI did not form part of Macquarie Goodman prior to the stapling effective 1 February 2005.

NOTE 9 - RECEIVABLES

	Consolidated
31 Dec 05	30 Jun 05
SM	\$M

13.9	20.2
90.0	27.3
3.1	$2.2\,$
	0,6
107.0	50.3

0.8
1.7	4.8
26.9	$\ddot{}$
29.4	4.8

NOTE 10 - INVENTORIES

		Consolidated
	31 Dec 05 \$M	30 Jun 05 \$M
CURRENT
Work in progress	11.2	13.5
NON-CURRENT
Work in progress	13.6	17.2

Inventories relate to the Brickworks Joint Venture and the Moorabbin Airport Corporation Pty Limited projects.

NOTE 11 - OTHER ASSETS

		Consolidated
	31 Dec 05	30 Jun 05
	\$M	\$Μ
CURRENT
Refundable deposits for the purchase of investment properties	23.5	33.4
Prepayments	2.9	11.2
Other	3.7	2.0
	30.1	46.6
NON-CURRENT
Other	2.3	0.8

NOTE 12 - INVESTMENT PROPERTIES

	31 Dec 05	31 Dec 05	31 Dec 05	31 Dec 05	30 Jun 05	30 Jun 05	30 Jun 05	30 Jun 05
	Investment Properties Completed	Projects Redevelopment	under Development Properties Investment	Properties HEDELWOOD Total	Investment Properties Completed	Projects Redevelopment	SOPIEDIOLE Development Investment under	Properties Total Investment
	ī.	嘉	嘉好	Ξã	2	ī,	Z.	嘉好
Carrying amount at the beginning of the period	4,030.4	186.3	541.7	4,758.4
Cost of acquisition:
on acquisition of MGI					3,857.4	225.1	368.2	4,250.7
- on acquisition of other subsidiaries	75.9			75.9	126.3			126.3
- other acquisitions	357.5		109.1	466.6	203.2		169.0	372.2
Costs capitalised	39.5	174	263.5	320.4	54.8	ာ ၁	164.0	228.4
Transfers in/(out)	230.0	$\overline{3}$	(250.1)		200.9	(48.4)	(152.5)
Disposals:
- carrying value of properties sold	(18.5)		(21.9)	(40.4)	(235.2)		(7.0)	(242.2)
- on disposal of interests in subsidiaries	(1, 249.1)		(60.7)	(1,309.2)				ł
Changes in fair value	73.9			73.9	23.0			$\frac{23.0}{23}$
Carrying amount at the end of the
period	3,539.6	223.8	582.2	4,345.6	4,030.4	186.3	541.7	4,758.4

Redevelopment projects represent properties previously included within completed investment properties but now undergoing redevelopment works with the intention of
continued use as investment properties.

As at 31 December 2005, investment properties with a carrying value of \$4,015.6 million were subject to charges to secure bank loans.

$\mathbb{R}^2$

NOTE 12 - INVESTMENT PROPERTIES (CONTINUED)

Properties	Redevelopment Development Investment/ Property	Acquisition Date	including Acquisition Price Costs	Capital Cost including Expenditure	es Date Valuation	Valuation	Cost since Acquisition	Disposal during the Period	Increment (Decrement) Revaluation	Book Value 31 Dec 05
			š	蓋		ξ,	\$N	₹\$	₹.	ă
AUSTRALIA
Werehouse/Distribution Centres
Greystames Park, Prospect, NSW
- East Stage 1	$\overline{6}$	1 Feb 05	61.7	109.5	1 Feb 05	617	47.8	p	ċ	109.5
$-$ West Stage $2$		1 Feb 05	53.9	73.3	31 Dec 05	74.5	$\frac{3}{4}$	٠	$\ddot{.}$	74.5
			115.6	182.8		136.2	67.2	$\blacksquare$	$\frac{2}{1}$	184.0
MFive Industry Park, Moorebank, NSW	$\overline{a}$	1 Feb 05	108.7	131.7	31 Dec 05	132.0	23.0		0.3	132.0
Centenary Distribution Centre, Moorebank, NSW
- Stage 1	∸	$1$ Feb 05	46.5	46.6	1 Feb 05	46.5	$\overline{\circ}$	$\pmb{\ast}$	$\pmb{\ast}$	46.6
$-$ Stage 2	$\triangleq$	1 Feb 05	19.8	20.9	1 Feb 05	19.8	Ţ	t	ł,	20.9
			66.3	67.5		66.3	$\frac{2}{\pi}$	$\overline{\mathbf{1}}$	$\pmb{\ast}$	67.5
Roberts Distribution Centre, Chullora, NSW
- Building A		1 Feb 05	25.2	25.3	1 Feb 05	25.2	$\overline{\mathsf{G}}$	ŧ	$\mathbf{r}$	25.3
- Building B		1 Feb 05	36.4	36.7	31 Dec 05	10 R	ွ	٠	œ $\mathbf{r}$	38.5
			61.6	62.0		63.7	ु	÷	$\frac{1}{2}$	63.8
Forrester Distribution Centre, St Mary's, NSW
- Stage 1		1 Feb 05	55.3	55.4	1 Feb 05	55.3	5	٠	٠	55.4
$-$ Stage 2	$\overline{a}$	1 Feb 05	5.7	73	Feb 05 ٣	6.7	s O	\$	,	$\overline{r}$ .
			62.0	62.7		62.0	G	٠	٠	62.7
Northgate Distribution Centre, Somerton, Vic
-Stages 1 and 2	$\supseteq$	1 Feb 05	45.1	46.0	30 Jun 05	53.6	o s	ı		$\frac{1}{3}$
- Stage 3	$\,\Omega$	$1$ Feb 05	$\frac{4}{3}$	$\frac{4}{3}$	1 Feb 05	2.4		×	$\,$	$\ddot{ }$
			47.5	48.4		56.0	39	$\blacksquare$	$\overline{\phantom{a}}$	55.8

$\chi_0$

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES FOR THE HALF YEAR ENDED 31 DECEMBER 2005 NOTES TO THE FINANCIAL STATEMENTS
---------------------------------------------------------------------------------------------------------------------------------------------------

Properties	Redevelopment Development/ Investment Property	Acquisition Date	Price Acquisition Costs including	including Capital Expenditure Cost	Date Valuation	Valuation	Cost since Acquisition	the during Period Disposal	Increment/ Revaluation (Decrement)	Book Value 31 Dec 05
			š	Z,		医桥	ä	\$M	SR	즗
Smithfield Distribution Centre, Smithfield, NSW		1 Feb 05	38.3	39.6	31 Dec 05	45.5	ူ		បា ហ	្ជុំ
Great West Distribution Centre, Arndell Park, NSW		$1$ Feb 05	5.18	38.2	31 Dec 05	41.9	5.0		37	$\frac{3}{41.9}$
Wyndham Distribution Centre, Laverton, Vic		$1$ Feb 05	38.5	39.0	31 Dec 05	41.2	G.B		$\frac{2}{3}$	41.2
Angliss Distribution Centre, Laverton North, Vic		$1$ Feb 05	19.2	32.9	30 Jun 05	36.4	$\overline{2}$			36.4
Southend Distribution Centre, Mascot, NSW		$1$ Feb $65$	35.2	35.2	$1$ Feb 05	35.2				35.2
Kingston Distribution Centre, Brasside, Vic		1 Feb 05	30.2	$\overline{\mathbf{R}}$	31 Dec 05	34.2	io O		LΩ, m	भ २
Laverton Distribution Centre, Laverton North, Vic		1 Feb 05	30.8	31.2	31 Dec 05	33.8	$\overline{a}$		ю ۲Ý	33.8
Prestons Distribution Centre, Preston, NSW	Ë	4 Mar 05	24.8	29.2	23 Nov 04	22.6	4		٠	29.2
Fitzgerald Distribution Centre, Laverton North, Vic		$1$ Feb 05	25.4	25.9	31 Dec 05	27.2	5		$\frac{1}{2}$	27.2
Berkeley Distribution Centre, Berkeley Vale, NSW		1 Feb 05	22.3	2.3	Feb 05	22.3				22.3
Miller Distribution Centre, Villawood, NSW		1 Feb 05	21.3	21.5	Feb 05 ÷	្អ	្ង			21.5
Sheffield Distribution Centre, Walshpool, WA

- Stage 1		1 Feb 05	127	12.9	31 Dec 05	14.0	$\alpha$		Ξ	14.0
$-$ Stage 2		$1$ Feb 05	្នុ	4.3	1 Feb 05	्री	$\overline{5}$			$\ddot{4}$
			6.9	17.2		18.2	e.		Ξ	18.3
Tranzport Distribution Centre, Port Melbourne, Vic		1 Feb 05	$\frac{1}{4}$	14.6	31 Dec 05	$\frac{1}{2}$	35
Boundary Distribution Centre, Laverton, Vic		1 Feb 05	17.6	17.7	1 Feb 05	17.6	នី		Г.,	$\frac{18}{2}$ 17.7
Sunshine Distribution Centre, Sunshine, Vic.		1 Feb 05	$\frac{4}{2}$	13.6	31 Dec 05	$\frac{1}{12}$	$\frac{3}{2}$		ű,	15.1
Britton Distribution Centre, Smithfield, NSW		S o T Fel	3.3	38	$1$ Feb 05	33				13.8
Westlink Distribution Centre, Laverton, Vic		S 1 Feb	e 7	12.0	31 Dec 05	13.1	S.		።	13.1
Federation Distribution Centre, Laverton North, Vic		5 1 Feb	12.3	12.4	1 Feb 05	23	$\overline{5}$			12.4
Keysborough Distribution Centre, Keysborough, Vic
fegas -		1 Feb 05	G	88	1 Feb 05	6.7	$\mathbf{r}$			ယ္ပ
$-$ Stage 2		1 Feb 05	2.8	2.8	$1$ Feb 05	2.8				œ.
			9.5	$\frac{4}{11}$		යූ	1.9			11.4

$\overline{27}$

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES FOR THE HALF YEAR ENDED 31 DECEMBER 2005 NOTES TO THE FINANCIAL STATEMENTS
---------------------------------------------------------------------------------------------------------------------------------------------------

$\ddot{\phantom{a}}$

NOTE 12 - INVESTMENT PROPERTIES (CONTINUED)

Properties	Acquisition Date	Price Costs including Acquisition	Capital Expenditure Cost including	Date Valuation	Valuation	Cast since Acquisition	during the Period Disposal	Increment (Decrement) Revaluation	Book Value 31 Dec 05
		磊	ă		Σ,	高さ	5M	÷,	즗
Lytton Distribution Centre, Lytton, Old	1 Feb 05	7.6	2.6	30 Jun 05	လဲ့ လ				8.8
Holbeche Distribution Centre, Amdell Park, NSW	1 Fob 05	83	as So	$1$ Feb $05$	$\frac{8}{3}$				8.8
Montague Distribution Centre, West End, Old	1 Feb 05	83	್ಲೆ	Feb 05	္မ	នី			र्जु छ
Beverley Distribution Centre, Beverley, SA	28 Jun 05	5,7	e S			3			თ
Bradford Distribution Centre, Cavan, SA	1 Feb 05	eg M	3.8	30 Jun 05	43				্ব
Wodongs Distribution Centre, Baranduda, Vic	1 Feb 05	ខ្លួ	$\frac{4}{3}$	$1$ Feb 05	33	5			3.4
Reservoir Distribution Centre, Wetherill Park, NSW	$1$ Feb 05	49.7	50.4	30 Sep 05	$\overline{\mathbf{2}}$ .	G	(62.1)	Ξ
Portside Distribution Centre, Banksmeadow, NSW	1 Feb 05	48.6	48.7	30 Sep 05	$\overline{8}$	5	(50.1)	$\frac{4}{1}$
Holroyd Distribution Centre, Smithfield, NSW	1 Feb 05	17.3	17.4	30 Sep 05	18.3	5	(18.3)	e.g
Port Wakefield Distribution Centre, Gepps Cross, SA	1 Feb 05	$\frac{a}{b}$	17.8	30 Sep 05	18.0		(18.0)	3
Hampton Park Distribution Centre, Hampton Park, Vic	1 Feb 05	23.8	23.9	30 Sep 05	25.0	5	(25, 0)	Ξ
Gippsland Distribution Centre, Dandenong, Vic	$1$ Feb $05$	P	$\tilde{r}$	30 Sep 05	7.5		្រុក្ខ	្ងឺ
Davis Distribution Centre, Wetherill Park, NSW
-Building A	1 Feb 05	16.5	33	30 Sep 05	18.9	$\frac{4}{3}$	(18.7)	(0.2)
-Building B	1 Feb 05	n 7	8.5	30 Sep 05	28	$\frac{6}{9}$	(8.2)	$\frac{3}{2}$
		26.4	27.4		26.5	$\frac{1}{1}$	(26.9)	0.5
Dandenong Industrial Estate, Dandenong, Vic	30 Jun 05	29.9	29.9	30 Jun 05	28.3	4	[29.9]	ı
Crestmead Distribution Centre, Crestmead, Old	$1$ Feb 05	30.0	30.7	30 Sep 05	31.4	G	(31.4)	$\overline{0}$
Wingfield Distribution Centre, Wingfield, SA	30 Jun 05	္ပ	$\frac{2}{3}$	30 Jun 05	a,		(9.2)
Campbellfield Distribution Centre, Campbellfield, Vic	9 Dec 05	$\frac{3}{4}$	守			5	$\frac{4}{4}$
Chullore Distribution Centre, Chullora, NSW
-Stage 1	1 Feb 05	25.4	25.5	30 Sep 05	273	3	$\widetilde{\mathbb{Z}}$	$\frac{8}{11}$
$-$ Stage $2$	1 Feb 05	$\frac{9}{1}$	$\frac{9}{11}$	30 Sep 05	12.4		(12.4)	5
		37.3	374		39.7	៊	(39.7)	្សិ

Properties	Redevelopment Development/ investment Property	Acquisition Date	Costs Price including Acquisition	Capital Expenditure including ă	Date Valuation	Valuation	Cost since Acquisition	the during Períod Disposal	Increment/ Revaluation (Decrement)	Book Value 31 Dec 05
			芸の	ä		즗	ä	ë	ä	E.
Myatt Distribution Centre, Edinburgh, SA		17 Aug 05	g, g	$\frac{1}{21}$	17 Aug 05	io.3	$\overline{2}$	$\frac{1}{2}$		1
Nestall Distribution Centre, Clayton, Vic		Feb 05	33.3	33.3	30 Sep 05	ន្ល	F	(35.0)	Ë
Noodlands Distribution Centre, Braeside, Vic		$1$ Feb $05$	10.8	10.9	30 Sep 05	13	ă	(1.3)	$\vec{a}$
Allawood Distribution Centre, Villawood, NSW		Feb 05	16.3	16.7	30 Sep 05	$\frac{5}{2}$	ु	(17.9)	$\frac{1}{2}$
industrial Estates
Erskine Park Industrial Estate, Erskine Park, NSW	9	Feb 05	48.2	107.0	1 Feb 05	48.2	58.8		5	107.1
Ascovery Cove Industrial Estate, Banksmeadow, NSW		Feb 05	72.2	75.6	30 Jun 05	80.0	त ले		5	$\overline{\mathbf{3}}$
Alexandria Industrial Estate, Alexandria, NSW		Feb 05	ស្ថ	66.1	30 Jun 05	S 13	S		S	64.6
Vitchall Industrial Estate, Alexandria, NSW		Feb 05	47.2	47.6	30 Jun 05	50.2	$\ddot{\circ}$		ā	50.4
Cingsford Smith Industrial Estate, Alexandria, NSW		Feb 05	41.3	41.4	1 Fab 05	$\frac{3}{4}$	ā			$\frac{4}{11}$
Smithfield Industrial Estate, Smithfield, NSW
Stage 1		Feb 05	15.8	$\frac{1}{2}$	31 Dec 05	17.5	3		$\ddot{a}$	17.5
- Stage 2		Feb 05	14.4	147	31 Dec 05	16.3	3		٩ì	16.2
- Stage 3		Feb 05	s.	55	1 Feb 05	a) M	នី			e.
			अ अ	34.7		37.6	$\overline{0}$		9a	37.6

$29$

NOTE 12 - INVESTMENT PROPERTIES (CONTINUED)

Properties	Redevelopment Development/ Transport	iition Acquis	entuding Price Acquisition	Cost including Capital	Valuation		Cost since	garius å Disposal	Revaluation increment	Book Value
	Property	Date	Costs Z4	Expenditure Ā	Date	Valuation ä	Acquisition	Peried ă	(Decrement) \$M	31 Dec 05
Burrows Industrial Estate, Alexandria, NSW		eb 05	32.0	$\frac{2}{3}$	30 Jun 05	33.5	$\frac{2}{1}$ Σ\$			is S
Gateway Industrial Estate, Arndell Park, NSW		0 _b 0 _b	34.1	34.3	Feb 05	$\frac{1}{15}$	$\ddot{\circ}$			34.5 34.3
MoLaren Industrial Estate, North Rocks, NSW	9	eb 05	$\frac{1}{5}$	32.8	Feb 05	$\frac{1}{2}$	Ξ			32.8
Portside Industrial Estate, Port Melbourne, Vic		9b 05	$\frac{3}{2}$	32.4	Feb 05	32.4				32.4
Acacia Link Industrial Estate, Acacia Ridge, Old	≘	eb da	20.3	29.4	1 Feb 05	20.3	$\overline{3}$			29.4
Arcadia Industrial Estate, Coopers Plains, Old		eb 05	23.0	23.7	80 Jun 05	25.0	$\overline{5}$			25.5
Brodie Industrial Estate, Rydalmere, NSW		90 de	23.5	23.6	31 Dec 05	25.2	္မ		ιņ	25.3
Mitchell Industrial Estate, Alexandria, NSW		eb 05	20.7	23.0	1 Feb 05	20.7	23			23.0
Biloela Industrial Estate, Villawood, NSW		Feb 05	19.9	20.4	31 Dec 05	22.0	5		e.	22.0
Tingalpa Industrial Estate, Tingalpa, Old		eb 05 Ë	13.8	13.9	30 Jun 05	15.6	5			16.7
West Averue Industrial Estate, Edinburgh, SA		QD 10 28 A	9.1	13.8	1 Dec 05	14.7	22		3 ^o	글
Westcove Industrial Estate, Lane Cove, NSW		eb 05	12.9	12.9	$1$ Feb 05	12.9				12.9
Abbott Industrial Estate, Chester Hill, NSW		-ab 05	$\frac{2}{12}$	12.6	1 Feb 05	$\overline{121}$	G.			12.5
Greensquare Industrial Estate, Alexandria, NSW		Feb 05	11.6	11.6	1 Feb 05	ិ៍				$\frac{6}{11}$
Homebush Bay Industrial Estate, Homebush, NSW		ab 05	$\frac{3}{11}$	ti T	$1$ Feb 05	្ទិ	$\overline{0}$			$\frac{5}{11}$
Pavesi Industrial Estate, Smithfield, NSW		eb 05	5	ងូ	1 Feb 05	্ব ত				دی යා
Woodpark Industrial Estate, Smithfield, NSW		$1$ Feb 05	23	76	30 Jun 05	7.9	ું			m ωŝ
Kaurna Industrial Estate, Edinburgh, SA		190 QU si Ai	त क	7.5	31 Aug 05	5.6	።			75
Healey Industrial Estate, Dendenong, Vic		1 Feb 05	20	56	1 Feb 05	7.0				20
Botany Bay Industrial Estate, Botany, NSW		Feb 05	$\frac{1}{3}$	្ត អូ	30 Sep 05	36.5	ë	(35.5)	$\sigma^4$
Brisbane Gate Industrial Park, Hendra, Old		Feb 05	30.7	30.9	30 Sep 05	3	្ម	(34.3)	्ये रा
Citiport Industrial Estate, Eagle Farm, QId		Feb 05	12.2	12.2	30 Sep 05	$\frac{3}{4}$		(14.3)	2.3
Cumberland Industrial Estate, Smithfield, NSW		Feb 05	37.8	40.7	30 Sep 05	41.0	$\frac{3}{2}$	(41.0)	C,
Ferntree Industrial Estate, Notting Hill, Vic		eb 05	$\frac{1}{4}$	14.2	30 Sep 05	17.0	$\overline{5}$	(17.0)	2.8
Reserve Industrial Estate, Ermington, NSW		ab 05	19.9	19.9	30 Sep 05	$\overline{\phantom{a}}$ :		(21.0)	Ξ
Riverside Centre, Parramatta, NSW		eb 05	22.8	23.4	30 Sep 05	24.2	0.6	(24.2)	0.8

ន្ល

				NUK TIHE MALIF YEAK ENUCED 31 DECEMBER 2005
NOTE 12 - INVESTMENT PROPERTIES (CONTINUED)
Properties	Redevelopment Development Investment Property	Acquisition Date	Price Costs including Acquisition	Cost Expenditure Capital including	Valuation Date	Valuation	Cost since Acquisition	during Disposal tile Period	Increment (Decrement) Revaluation	Book Value 31 Dec 05
			ē.	壽		E.	₹.	Ž,	Ξ,	叢
Business Parks
Lidcombe Business Park, Lidcombe, NSW		ab 05	142.9	145.7	30 Jun 05	150.0	e. N			152.6
Campus Business Park, Hornebush, NSW	$\overline{a}$	1 Feb 05	125.2	145.8	1 Feb 05	125.2	20.6		C3	146.1
Stough Business Park, Silverwater, NSW		1 Feb 05	101.1	104.7	I Feb 05	101.1	38		$\ddot{\circ}$	104.8
Clayton Business Park, Clayton, Vic	뜨	1 Feb 05	57.7	100.5	I Feb 05	1.18	12.8			100.5
Chifley Business Park, Mentone, Vic	힟	Feb 05	56.6	$\frac{0}{31}$	Feb 05	56.6	24.4		S	81.1
Airgate Business Park, Mascot, NSW
- Stage 1	$\overline{a}$	1 Feb 05	23.4	23.0	1 Feb 05	23.4	$\vec{p}$			23.0
-Stage 2	$\supseteq$	Fab 05	30.0	31.0	1 Feb 05	30.0	$\frac{0}{1}$			$\frac{1}{3}$
$-$ Stage 3	$\circ$	30 de ^-	$\frac{4}{3}$	11.5	1 Feb 05	$\frac{3}{4}$	$\overline{\mathcal{S}}$			11.5
			61.8	65.5		61.8	$\overline{3.7}$			65.5
Botany Grove Business Park, Botany, NSW
-Stage 1		80 de	17.5	17.6	$1$ Feb 05	17.5	5			17.6
-Stage 2		Feb 05	20.8	20.5	1 Feb 05	20.8	$\overline{6}$		þ	20.9
e abeig -		Feb 05	17.5	17.5	I Feb 05	17.5			$\overline{5}$	17.6
$-$ Stage $4$		30 de	$\frac{2}{3}$	62	1 Feb 05	$\frac{2}{3}$	$\frac{1}{2}$			$\frac{2}{3}$
			61.0	62.2		S ₁₀	$\frac{5}{2}$		$\overline{5}$	62.3
Euston Business Park, Alexandria, NSW		1 Feb 05	49.7	49.7	1 Feb 05	49.7				49.7
Acacia Ridge Business Park, Acacia Ridge, Cld · Stage 1		1 Feb 05	$\frac{1}{4}$	44.5	1Feb 05	44.1	$\ddot{\circ}$			44.5

$\overline{\mathbb{S}}$

44.5 ä,

$(21.9)$ $(21.9)$

$\frac{16}{1}$ $2.0$

20.3 64.4

$1$ Feb $05$

$21.9$ 66.4

1 Feb 05

$\ddot{\mathbf{c}}$

$-$ Stage 2

84.4 20.3

Properties	Redevelopment Development investment/ Property	ittion Date Acquis	Price including Costs Acquisition	Cost including Capital	Valuation		Cost since	ŧe during Disposal	Increment Revaluation	Book Value
			医鼻	Expenditure Z€	Date	Valuation m S	Acquisition es S	Period 某の	(Decrement) Z#	31 Dec 05 \$M
TransTech Business Park, Lane Cove, NSW		80 de	41.0	42.4	1 Feb 05	41.0	् न			42.4
Talavera Business Park, North Ryde, NSW
- Building A		-60.05	17.5	17.7	31 Dec 05	19.4	0.2		1,7	19.4
- Building B		eb ₀₅	21.4	21.9	31 Dec 05	22.3	95		उँ	Î
			38.9	39.6		41.7	5		$\overline{\mathbf{z}}$	41.7
Regal Business Park, Roweville, Vic	₿	1 Feb 06	37.6	39.9	Feb 05	37 S	$\frac{3}{2}$			39.9
Forestridge Business Park, Frenchs Forest, NSW		eb 05	34.7	37.8	1 Feb 05	34.7	a,			37.8
Enterprise Business Park, Gladesville, NSW		1 Feb 05	31.7	31.8	I Feb 05	31.7	ā			$\frac{8}{31}$ .8
Queensport Quays Business Park, Murarrie, Qld		i Feb 05	17.3	36.5	1 Feb 05	17.3	19.2			$\frac{1}{30}$
Toyotagreen Business Park, Port Melbourne, Vic
- Parcel A		Apr 05 $\frac{4}{4}$	16.7	$\overline{121}$	17 Mar 05	16.0	$\vec{c}$			$\overline{1}$
Parcel B	≘	far 05 M ps	10.7	10.8	17 Mar 05	10.1	5		4	10.8
			$\frac{4}{3}$	27.9		26.1	5g			27.9
Waterloo Business Park, North Ryde, NSW		1 Feb 05	24.2	25.3	31 Dec 05	26.0	Ţ		$\overline{0}$	26.0
Link Business Park, North Ryde, NSW
-Building A		Feb 05	14.5	14.7	30 Sep 05	14.5	$\ddot{\circ}$	(14.5)	(0,2)
- Building B		t Feb 05	21.0	21.9	31 Dec 05	21.9	$\ddot{\circ}$			21.9
			35.5	36.6		36.4	$\ddot{ }$	(14.5)	ិ	21.9

$\overline{32}$

ł,

Properties	Redevelopment Development lnvestment/ Property	Acquisition ate ٥	including Acquisition Costs Price	Capital Expenditure including Cost	bate Date Valuation	Valuation	Cost since Acquisition	during the Period Disposal	Increment (Decrement) Revaluation	Book Value 31 Dec 05
			i.	ä		2	嘉桥	ξ,	嘉物	葛坊
Seville Business Park, Villawood, NSW		8 1 Feb	17.9	S.	1 Feb 05	17.9	21			19.2
Pacific View Business Park, Frenchs Forest, NSW		5 $1$ Feb $1$	5.9	i63	30 Jun 05	16.3	3			16.4
Orion Business Park, Lane Cove, NSW		έ 1 Feb	12.8	12.9	30 Jun 05	$\frac{6}{20}$	5			13.0
Chase Business Park, Chatswood, NSW		8 1 Feb	$\frac{1}{2}$	10.2	$1$ Feb 05	$\overline{9}$	5			25
Chullora Business Park, Chullora, NSW		1 Feb 05	64.4	64.6	30 Sep 05	65.2	$\frac{2}{9}$	(65.2)	0.6
Citylink Business Park, Port Melbourne, Vic		8 1 Feb	\$ô	10.3	30 Sep 05	$\frac{1}{1}$	G	(11.4)	Ξ
Ferntree Business Park, Notting Hill, Vic		1 Feb 05	នឹ	25.3	30 Sep 05	24.0	$\frac{5}{1}$	(24.4)	$\overline{0}$
M7 Business Hub, Eastern Creek, NSW		S 26 Jul	35.2	50.3	30 Sep 05	41.8	15.7	(50.9)
Peninsula Business Park, Brookvale, NSW		₽ $1$ Feb	17.7	is S	$1$ Feb 05	17.5	3	(18.5)
Showground Business Park, Castle Hill, NSW		1 Feb 05	32.0	32.7	30 Sep 05	32.6	ွ	(32, 6)	$\overline{0}$
St Peters Business Park, St Peters, NSW		S $1$ Fab	39.2	39.3	30 Sep 05	43.3	ā	(43.3)	$\frac{3}{40}$
Kerry Business Park, Archerfield, Old		S 9 Dec	7.2	$\frac{5}{2}$		J,		$\tilde{c}$

Office Parks
Talavera Corporate Centre, North Ryde, NSW	으	1 Feb 05	110.8	53.1	Feb 05	110.8	42.3			153.1
Homebush Corporate Park, Homebush, NSW	$\Xi$	5 $1$ Feb $\overline{1}$	106.3	114.5	Feb 05	106.3	្ល		្ត	114.6
CityWest Office Park, Pyrmont, NSW	--	$1$ Feb 05	104.6	106.3	1 Feb 05	104.6	Φ		5	106.4
BC Business Estate, Homebush, NSW	$\overline{a}$	30 Jun 05	92.9	95.G	1 May 05	28	$\overline{2}$			95.6
Macquarie Corporate Park, North Ryde, NSW
- Building A		1 Feb 65	33.4	33.4	$1$ Feb 05	33.4			s,	33.4
-Building B		1 Feb 05	52.4	52.6	31 Dec 05	$\overline{2}$	0.2		5	52.7
- Building C		1 Feb 05	$\frac{4}{3}$	57	1 Feb 05	$\frac{4}{5}$	m o			္မြ
			$\frac{2}{5}$	ar 5		91.5	С5		$\overline{\mathbf{s}}$	91.8
St Leonards Corporate Centra, St Leonards, NSW		9 eM ₁₈	77.9	35.3	1 May 05	78.8	$\overline{7}$			85.3
Binary Centre, North Ryde, NSW		1 Feb 05	$\overline{5}$	81.6	1 Feb 05	$\frac{1}{6}$	S,			81.6

Properties	Redevelopment Development Transport Property	Acquisition Date	Acquisition Costs Price including	Cost including Expenditure Capital	Date Valuation	Valuation	Cost since	the during Disposal	Increment Revaluation	Book Value
			ă	嘉		en Si	Acquisition ž,	ä Period	(Decrement) 芝休	31 Dec 05 ă
Warringah Corporate Centre, Frenchs Forest, NSW
Stage 1		1 Feb 05	43.7	$\frac{4}{1}$	1 Feb 05	43.7	3		5	42
$-$ Stage 2	e	1 Feb 05	3.6	33	1 Feb 05	្ល	$\ddot{\circ}$			$\frac{5}{2}$
			47.3	48.0		47.3	GZ		5	ig.
Cambridge Office Park, Epping, NSW		1 Feb 05	46.1	47.0	31 Dec 05	49.4	3		2.4	49.4
Hurstville Office Park, Hurstville, NSW		1 Fab 05	29.9	32.2	31 Dec 05	35 S	2.3		33	35.5
Pinnacle Office Park, North Ryde, NSW
- Stage 1	鸟	I Feb 05	26.8	28.0	1 Feb 05	26.8	$\overline{1}$	f,	ı	28.0
-Stage 2	$\mathbb{R}$	Feb 05	24	6.6	1 Feb 05	54	$\tilde{ }$	$\,$	٠	66
			32.2	34.6		32,2	24	$\overline{\mathbf{1}}$	٠	34.6
The Frecinct Corporate Centre, North Ryde, NSW
-Stage 1	黑	1 Feb 05	16.4	19.9	1 Feb 05	16.4	is. C	ŀ	þ	19.9
$-$ Stage $2$	Œ	50 q $\overline{1}$	33	7.5	Feb 05	33	$\frac{a}{1}$	٠	٠	녧
Suburban Commercial Buildings			25.7	27.4		25.7	$\ddot{ }$ :	p	p	27.4
Ashfield Corporate Centre, Ashfield, NSW
iegene.	$\overline{a}$	1 Feb 05	28.2	$\overline{3}$	1 Feb 05	28.2	$\overline{0}$		0.2	28.3
-Stage 2	$\circ$	500 $\overline{1}$ Fel	12.7	13.6	1 Feb 05	12.7	3			13.6
			40.9	41.7		40.9	8.G		$\mathbf{S}$	41.9
Gordon Corporate Centre, Gordon, NSW		1 Feb 05	26.9	28.0	1 Feb 05	26.9	Ξ	٠		28.0
			4,341.2	4,780.8		4,529.7	439.6	(875.0)	73.9	4,003.4

$34$

$\frac{1}{2}$

Properties	Redevelopment Development hastment Property	Acquisition Date	Costs Price including Acquisition	Expenditure Cost Capital including	Date Valuation	Valuation	Cost since Acquisition	the during Period Disposal	Increment Revaluation [Decrement]	Book Value 31 Dec 05
			Σã	ä		ä	ξ,	ä	Σã	SM ₃
NEW ZEALAND
Industrial Estates
Savill Link, Otahuhu, Auckland	$\overline{a}$	$1$ Feb 05	17.7	31.6	1 Feb 05	17.7	13.9		ŀ	25.1
The Gate Industry Park, Penrose, Auckland	۵	1 Feb 05	39.0	43.7	1 Feb 05	39.0	47			75
Business Parks
Highbrook Business Park, East Tamaki, Auckland	ē	1 Feb 05	$\frac{1}{8}$	125.3	1 Feb 05	89.2	44.2			125.3
Eden Business Park, Mt Eden, Auckland	$\triangleq$	16 Aug 05	58.5	63.2	16 Aug 05	58.3	Ş			63.2
Office Parks
Millennium Centre, Phase II, Greenland, Auckland		16 Dec 05	53.2	53.2	16 Dec 05	23			٠	53.2
Millennium Centre, Phase III, Greenlane, Auckland	۵	8 Apr 05	Ō,	្ត	4 Mar 05	$\tilde{c}$	4		$\overline{\mathbf{1}}$	5
			53.9	55.3		u) M	4			56.3
Air New Zealand House, Auckland	≏	4 May 05	20.1	39.2	4 May 05	$\frac{1}{3}$	19.1			39.2
Central Perk Corporate Centre, Greenlane, Auckland	٥	1 Feb 05	46.6	an 13	1 Feb 05	46.6	7.3			u) M
Westney Industry Park, Mangere, Auckland	٥	1 Feb 05	8.0	$\frac{0}{4}$	T Feb 05	8.	٩,			$\frac{6}{1}$
Neilson Street, Penrose, Auckland	Ο	28 Jun 05	Ģ	$\frac{1}{2}$	12 May 05	20	5			$\ddot{ }$
			318.7	417.4		312.6	$\overline{\mathbf{3}}$		t	321.9
SINGAPORE
Warehouse/Distribution Centre
Ascendas Global Gateway, Singapore		19 Oct 05	t	20.3	15 Apr 05	23.7	5		ŧ	20.3

$20.3$ 20.3

$\overline{5}$ $\overline{a}$

20.3

NOTE 12 - INVESTMENT PROPERTIES (CONTINUED)

	Development Investment/		e Erice Including	Cost Including				during Disposal	Revaluation
Properties	Redevelopment Acquisition Property	Date	Costs Acquisition	Expenditure Capital	Date Valuation	Valuation	Cost Since Acquisition	Period the	Increment [Decrement]	31 Dec 05 Book Value
			医动	ā,		Z.	Š	i.	Š	ă
HONG KONG
Lower Global Gateway		31 Aug 05	137.2	137.2	27 Sep 05	138.2		(137.2)
Upper Global Gateway		20 Jun 05	128.7	130.7	1 Apr 05	129.1	С,	(130.7)
Ever Gain Plaza -- Kodera, Tsuen Wan		16 Aug 05	87.4	87.4	15 Jul 05	83.0		(87.4)
Ever Gain Plaza - Growth Link, Tsuen Wan		30 Aug 05	55.5	55.5	15 Jul 05	60.0		(55.5)
Ever Gain Plaza - Luck Eagle, Tsuen Wan		4 Nov 05	33,7	35.B	8 Aug 05	35 9	្ដ	(35.8)
Ever Gain Plaza - Part Floor, Tsuen Wan		30 Sep 05	28.0	28.0	8 Aug 05	E.		(28.0)
			470.5	474.6		474.3	$\frac{1}{4}$	(474.6)
Portfolio total			5,150.7	5,693.3		5,340.3	542.6	(1, 249.6)	73.9	4,345.6

Valuations dated 1 February 2005 represent Directors' fair valuation of investment properties at the date of acquisition of MGI. All other valuations are independent valuations.

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE FINANCIAL STATEMENTS	FOR THE HALF YEAR ENDED 31 DECEMBER 2005
-------------------------------------------------------------------------------------------------------	------------------------------------------

NOTE 13 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

$\overline{a}$

							Consolidated
						31 Dec 05	30 Jun 05
						嘉坊	ទី
Share of net assets of entities accounted for using the equity method
Associates (a)						325.4	120.0
Joint venture entities (b)						10.0
						335.4	120.0
Servestreements in Associated Name	Principal Activities	Incorporation/ Country of	Reporting Date	Consolidated Ownership Interest		Consolidated Investment Carrying Amount
		Establishment		31 Dec 05	30 Jun 05	31 Dec 05	30 Jun 05
				Ş	Ş	芝奶	ã
Ascendas-MGM Funds Management Limited	Funds management	Singapore	31 Mar	40.0	40.0	ም ኮ	ි
Macquarie Goodman Property Trust	Property investment	New Zealand	31 Mar	30.0	30.0	118.2	113.7
MGWF	Property investment	Australia	30 Jun	32.6		199.3
						325.4	120.0

$\overline{37}$

NOTE 13 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

	Consolidated
	31 Dec 05 Haif year ended \$M	30 Jun 05 Year ended $\frac{5}{9}$
MOVEMENTS IN CARRYING AND VIVENTS
Carrying amount at the beginning of the period	120.0	$\frac{8}{1}$
Share of net results after tax of associates		63
Investments in associates during the period	$12.0$ $197.3$ $(5.7)$	90.2
Distributions received and receivable
Foreign currency translation	1.8
Reclassification of Macquarie Goodman Property Trust units		26.4
Disposals of investments		(4.7)
Carrying amount at the end of the period	325.4	120.0

	As at	As at
	31 Dec 05	30 Jun 05
	芝の	SM.
SUMMARY OF FINANCIAL POSITION OF ASSOCIATES
of associates is as follows: The Consolidated Entity's share of the aggregate assets and liabilities
Assets	4772	172.1
Liabilities	(151.8)	(52.1)
Net asset equity adjusted	325.4	120.0

Name	Activities Principal	Establishment Incorporation/ Country of	Reporting Date	Ownership Interest Consolidated		Consolidated Investment Carrying Amount
				31 Dec 05	30 Jun 05	31 Dec 05	30 Jun 05
				Ş.	ž,	SM	ξÑ
MGIHK	Property investment	Hong Kong	31 Mar	50.0		ล 9
Macquarie Goodman (Hong Kong) Limited	Funds management	Hong Kong	31 Mar	50.0	50.0	$\overline{a}$
Colworth Business Park Partnership	Property investment	United Kingdom	31 Dec	50.0		10.5
						10.0
							Consolidated

						Half year
						ended	Year ended
						31 Dec 05	30 Jun 05
						ia G	5
MOVEMENTS IN CARRYING AMOUNT OF INVESTMENTS IN JOI		INT VENTURE ENTITIES
Carrying amount at the beginning of the period
Share of net results after tax of joint venture entities						(0.1)
Increase on acquisition of subsidiaries during the period						10.1
Carrying amount at the end of the period						10.0

						As at	As at
						31 Dec 05	30 Jun 05
						嘉林	\$
SUMMARY OF FINANCIAL POSITION OF JOINT VENTURE ENTITIES
The Consolidated Entity's share of the aggregate assets and liabilities of joint venture entities is as follows:
Assets						324.3
Liabilities						[314.3]
Net asset equity adjusted						10.0

NOTE 13 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (CONTINUED)

(b) Interests in Joint Venture Entities

NOTE 14 - OTHER FINANCIAL ASSETS

	Consolidated
	31 Dec 05	30 Jun 05
	SM	SM
Investments in listed securities, at fair value	132.6	101.0
Investments in unlisted securities, at fair value	98.4
	231.0	101.0

Investments in unlisted securities increased by \$98.4 million as a result of investments held by Arlington at the date of its acquisition by Macquarie Goodman.

NOTE 15 - INTANGIBLE ASSETS

	Consolidated
	31 Dec 05	30 Jun 05
	\$M	\$M.
Goodwill and management rights relating to European business, at
cost	452.8
Management rights relating to New Zealand, at cost less impairment	6.2	6.0.
	459.0	6.0

NOTE 16 - PAYABLES

	Consolidated
	31 Dec 05	30 Jun 05
	SM	SM.
CURRENT
Trade creditors	0.2	0.9
Other creditors and accruals ⁽¹⁾	340.2	38.2
Deferred settlements ⁽²⁾	20.1	52.6
	360.5	91.7
NON-CURRENT
Deferred settlements ⁽²⁾		19.2
Other creditors and accruals	17.2	9.3
	17.2	28.5

(1) Other creditors and accruals include \$224.6 million for the balance of the Arlington acquisition.

⁽²⁾ Deferred settlements include amounts for acquisition of ordinary shares in Highbrook Development Limited. Amounts payable after 12 months have been discounted at the Consolidated Entity's weighted average cost of debt.

NOTE 17 - INTEREST BEARING LIABILITIES

	Consolidated
	31 Dec 05	30 Jun 05
	SM	\$M
CURRENT
Bank overdraft	0.5
Bank loans – secured $(1)$	90.1	793.9
Other loans - Commercial Mortgaged Backed Securities ("CMBS") ⁽²⁾	602.7
Other loans – deferred payment ⁽³⁾	205.6	207.0
RePS ⁽⁴⁾	42.1
	941.0	1,000.9
NON-CURRENT
Bank loans – secured $(1)$	1,002.2	141.4
Other loans - CMBS ⁽²⁾		720.9
Lease liabilities	0.1
	1,002.3	862.3

$(1)$ Bank loans - secured

As at 31 December 2005

Facility			Amounts Drawn Down in A\$M Equivalents
	AUS	SING	ΝZ	НK	US	GBP	Γotal AS
Syndicated multi-currency	156.5	42.9	324.1	27.6	5.2	334.6	890.9
Bank loan - secured	$\overline{\phantom{0}}$	96.8	$\tilde{\phantom{a}}$	$\blacksquare$			96.8
Bank loan - secured			36.7	$\overline{\phantom{a}}$	۰		36.7
Bank loan – secured	$\overline{\phantom{a}}$	$\cdot$		$\cdot$	$\overline{\phantom{a}}$	67.9	67.9
	156.5	39.7،	360.8	27.6	5.2	402.5	1.092.3

The Syndicated Multi-currency Facility ("SMCF") comprises four revolving tranches, a \$50 million one year working capital facility, a \$350 million two year tranche, a \$600 million three year tranche and a \$400 million four year tranche.

Controlled entities have bank loans of A\$83.7 million and A\$13.1 million denominated in Singapore dollars. The former facility expires on 24 November 2007. Of the latter facility, the sum of A\$10.8 million of the facility expires on 16 February 2009 and A\$2.3 million expires on 21 March 2006. Any resulting foreign currency exposure is hedged by corresponding Singapore investments purchased with the proceeds.

Controlled entities have bank loans of A\$36.7 million which are denominated in New Zealand dollars. The sum of A\$19.9 million of the drawn facility expires on 31 January 2006 and A\$16.8 million on 28 February 2008. Any resulting foreign currency exposure is hedged by investments in New Zealand assets purchased with the proceeds.

Controlled entities have bank loans of A\$67.9 million denominated in British pounds. The sum of A\$67.9 million of the drawn facility expires on 31 May 2006.

Security for all loans is by way of first and second ranking charges over various assets of the Consolidated Entity.

NOTE 17 - INTEREST BEARING LIABILITIES (CONTINUED)

As at 30 June 2005

Facility	Expiry Date		Amounts Drawn Down in ASM Equivalents
		AUS	SING	ΝZ	ΗК	Total A\$
Syndicated multi-currency	30 Apr 06	237.1	34.9	144.8	85.2	502.0
Standby	30 Apr 06	158.6				158.6
Bridging	31 Jul 05	95.4	÷		٠	95.4
Multi-option facility	31 Dec 05	$\mathbf{r}$		31.9	٠	31.9
Bank Joan - secured	24 Nov 07	$\ddot{\phantom{1}}$	64.6		$\tilde{ }$	64.6
Bank loan – secured	31 Jan 06			6.0	$\overline{\phantom{0}}$	6.0
Bank loan - secured	28 Feb 08		$\bullet$	8.9	$\blacksquare$	8.9
Bank loan - secured	30 Jun 07				67.9	67.9
		491.1	99.5	191.6	153.1	935.3

The multi-option, standby and bridging facilities were refinanced on 29 July 2005 by the SMCF.

Any resulting foreign currency exposure from amounts denominated in foreign currencies is hedged by holding property assets of approximately the same value in the corresponding currencies.

⁽²⁾ Other loans - Commercial Mortgage Backed Securities ("CMBS") Details are as follows:

	\$M

Balance as at 1 July 2005	720.9
Additional tranche issued on 7 November 2005	115.0
Amount deconsolidated on launch of MGWF	(233.2)
Balance as at 31 December 2005	602.7

Security is by way of first registered mortgages and charges over various assets. The CMBS facilities mature on 7 November 2006 and have been reclassified as current liabilities.

(3) Deferred payment

Interest bearing deferred payments relate to the fair value of the deferred payment owed to Commonwealth Managed Investments Limited ("CMIL") on the acquisition of Colonial First State Industrial Property Trust in April 2003. CMIL can call for repayment by 1 April 2006.

NOTE 17 - INTEREST BEARING LIABILITIES (CONTINUED)

⁽⁴⁾ Reset Preference Units ("RePS")

As a result of the implementation of AIFRS, RePS instruments are treated as debt from 1 July 2005. RePS are a class of securities that provide preferred distributions fixed for an initial period. The first reset date on the RePS is scheduled to occur at the discretion of the Consolidated Entity during the twelve months ending 30 June 2007. The fixed return provides for a distribution rate of 7.5% per annum.

Upon expiry of the initial period, known as a reset date, the issuer may convert RePS holdings into Macquarie Goodman securities at a 3% discount at the Directors' discretion which will rank equally in all respects with existing Macquarie Goodman securities. Prior to the reset date, the RePS Holders can convert their securities into predetermined numbers of Macquarie Goodman securities.

Prior to the merger with the Company, MGI acquired 492,302 RePS from RePS Holders. The Company exercised its conversion rights over 349,158 RePS during the period resulting in the issue of Macquarie Goodman securities which have been provided to employees under the ESAP. The cost of repurchasing the RePS is offset against the balance of RePS outstanding to the extent of the nominal value on issue of the instruments. The remaining balance at 31 December 2005 of \$6.0 million is recognised in the RePS Repurchase Reserve in equity.

Exposure to Interest Rate Changes

The Consolidated Entity's exposure to interest rate changes at 31 December 2005, as adjusted for GBP interest rate swap agreements entered into subsequent to 31 December 2005, is as follows:

AUS	SING	NZ	нк	US	GBP	Total A\$
1.006.9	139.7	361.4	27.6	5.2	402.5	1.943.3
975.0	67.7	169.1	$\overline{\phantom{a}}$		$341.0^{(1)}$	1,552.8
96.8%	48.5%	46.8%			$84.7\%$ ⁽¹⁾	79.9%
						Amounts Drawn Down in ASM Equivalents

⁽¹⁾ Subsequent to 31 December 2005, the Consolidated Entity entered into additional interest rate swap agreements to hedge borrowings denominated in GBP. The amount hedged is A\$341 million (GBP 145 million) at an average rate of 4.56% per annum for approximately seven years.

NOTE 18 - PROVISIONS

		Consolidated
	31 Dec 05	30 Jun 05
	\$M	\$M
CURRENT
Provisions for distributions to Securityholders	98.6	90.4
Provisions for distributions to RePS Holders		1.0
Provisions for employee benefits	2.0	1.5
	100.6	92.9
NON-CURRENT
Provisions for employee benefits	0.4	0.4

NOTE 19 - ISSUED CAPITAL

		Consolidated
		31 Dec 05	30 Jun 05
		SM	\$М
Securities on issue
Number of securities on issue on the ASX
Less: Treasury Securities accounted for as options under the ESAP		1,455,091,430 (19, 286, 210)	1,404,967,533
Balance Included in Issued Capital		1,435,805,220	(8,650,000) 1,396,317,533

PARENT ENTITY
issued capital, fully paid		152.4	144.2
Treasury securities		(49.O)
Issue costs		(3.7)	(3.7)
		99.7	140.5
MGI
Issued capital, fully paid		3.054.1	2,876.7
Issue costs		(62.7)	(61.0)
		2,991.4	2.815.7
Total issued capital		3,091.1	2,956.2

Reconciliation of Movements in Macquarie Goodman Securities	Consolidated Entity	MGI	Parent Entity
	31 Dec 05	31 Dec 05	31 Dec 05
Balance at the beginning of the period	\$M	SM	\$M.
Securities on issue at 1 July 2005 - 1,396,317,533 securities	3,020.9	2,876.7	144.2
Treasury securities at 1 July 2005 - 8,650,000 securities
Movements during the period
- 33,988,496 securities issued under the Distribution
Reinvestment Plan	135.6	132.4	3.2
- 11,986,210 Treasury securities issued under the ESAP	(49.0)		(49.0)
- 5,499,191 securities issued on vesting of options - (1,350,000) Treasury securities converted to securities on	4.2	0.7	3.5
vesting of options
Increase in issued capital on conversion of RePS	45.8	44.3	1.5
Balance - 1,435,805,220 securities on issue	3,206.5	3,054.1	152.4
Balance - 19,286,210 Treasury securities	(49.0)		(49.0)
Less: Issue costs	(66.4)	(62.7)	(3.7)
	3,091.1	2,991.4	99.7

NOTE 20 - RESERVES

	Consolidated
	31 Dec 05	30 Jun 05
	\$M	\$М
Asset Revaluation Reserve ⁽¹⁾	117.1	50.3
Interest Rate Swap Revaluation Reserve ⁽²⁾	(7.9)
Foreign Currency Translation Reserve ⁽³⁾	(1.8)	0.6
Capital Profits Reserve ⁽⁴⁾	5.7	5.1
RePS Repurchase Reserve ⁽⁵⁾	(6.0)	(20.8)
Employee Compensation Reserve ⁽⁶⁾	11.2	11.5
Total reserves	118.3	46.7

The reserves of Macquarie Goodman are apportioned below between the amounts Securityholders of Macquarie Goodman are entitled by virtue of their shareholding in the Company and their unitholding in MGI.

Details of the impact of the implementation of AIFRS on reserves are set out in note 26.

NOTE 20 - RESERVES (CONTINUED)

	Shareholders of the				Securityholders of
	Company		Unitholders of MGI		Macquarie Goodman
	31 Dec 05	30 Jun 05	31 Dec 05	30 Jun 05	31 Dec 05	30 Jun 05
	妄の	ξã	E.	ξã	云の	Σã

1) Asset Revaluation Reserve
Balance at the beginning of period	26.2		24.1		50.3
Increases due to revaluation of listed investments	15.9	37.4			15.9	37.4
Deferred tax	त्र,	(11.2)			$\widetilde{A}$	(11.2)
Transfers (to)/from retained earnings	(2.6)		58.2	24.1	55.6	24.1
Balance at the end of the period	34.8	26.2	ន្ល	24.1	ו זאו	50.3
2) Interest Rate Swap Revaluation Reserve
Balance at the beginning of the period
Impact of change in accounting policy	23		(22.7)		(14.0)
	n. 0		(22.7)		(14.0)
Change in value of interest rate swaps	o. O		$\frac{2}{4}$		្ល
Transfers to Income Statement	ନ ତ		$\frac{3}{2}$		$\frac{6}{1}$
Balance at the end of the period	m Gi		(17.2)		(7.5)
3) Foreign Currency Translation Reserve ("FCTR")
Balance at the beginning of the period			6.6		0.6
Net exchange differences on conversion of foreign operations	(1.8)		(0.6)	G.G	(2.4)	င်္
Balance at the end of the period	ິສ ສ	ı	Ŧ	ت O	$\frac{3}{2}$	o. O
The foreign currency translation reserve records the foreign currency differences arising from the translation of foreign operations in New Zealand, Singapore, Hong Kong $\frac{1}{2}$

$\frac{1}{2}$

'n, 'n .
D and Europe. 46

	Shareholders of The Company		Unitholders of MGI		Macquarie Goodman Securityholders of
	31 Dec 05	30 Jun 05	31 Dec 05	30 Jun 05	31 Dec 05	30 Jun 05
	嘉好	ξã	Z\$	ē,	医统	ន្ត្
4) Capital Profits Reserve
Balance at the beginning of the period			5		្ត	Ì
Balance at acquisition of MGI				្ល		្ង
Transfers from retained earnings			o.g		G.G
Balance at the end of the period	ŧ		5	言	r,	្ល
5) RePS Repurchase Reserve
Balance at the beginning of the period			(20.8)		(20.8)
Transfer to Employee Compensation Reserve on conversion of RePS to securities			14.8		14.8
Premium paid on repurchase of RePS from minority interests				(20.8)		(20.8)
Balance at the end of the period	1	ł	(6.0	(20.8)	င်	(20.8)
Macquarie Goodman. The balance will reverse on conversion of the RePS instruments to Macquarie The RePS Repurchase Reserve arises on acquisition of RePS by Goodman securities.
6) Employee Compensation Reserve
Balance at the beginning of the period	11.5				11.5
Expense recognised in the Income Statement during the period	$\ddot{\bullet}$	21 22 22 24			$\ddot{\bullet}$	လေ့က ကိုလ
Amount due from employees for options not yet vested		60				$\overline{6}$
Amount transferred to Issued Capital on vesting of options	ິດ ດິ				(e.g
Balance at the end of the period	11.2	11.5			11.2	11.5

NOTE 20 - RESERVES (CONTINUED)

$\ddot{4}$

46.7

118.3

$\overline{6.0}$

64.8

$\overline{37.7}$

53.5
53.6

Total consolidated reserves

NOTE 21 - RETAINED EARNINGS/(ACCUMULATED LOSSES)

The retained earnings/(accumulated losses) of Macquarie Goodman are apportioned below between the amounts Securityholders of Macquarie Goodman are entitled to by virtue of their shareholding in the Company and their unitholding in MGI:

	Shareholders of the				Securityholders of
	Company		Unitholders of MGI		Macquarie Goodman
	31 Dec 05	30 Jun 05	31 Dec 05	30 Jun 05	31 Dec 05	30 Jun 05
	ES 6	5M	ίã	š	Z4	ŠΜ

(Accumulated losses)/retained earnings at the beginning of the period	(109.0)	្នុ	89.2		(19.8)	্ব
Changes in accounting policy $^{\rm 11}$			(0.9)		(0.9)
	(109.0)	ु	38.3		(20.7)	্র ব
Profit/(loss) for the period	16.4	(91.5)	223.5	158.2	239.9	66.7
Transfers from/(to) reserves	2.6		(58.2)	(24.1)	(55.G)	(24.1)
Dividends and distributions declared	្តរុ	(21.5)	(197.5)	(172.5)	195.4)	194.0
Balance at acquisition of MGI				127.6		127.6
Accumulated losses)/retained earnings at the end of the period	(87.9)	(0.901	ე ს	29.2	(31.8)	(19.8)

⁽ⁱ⁾ Details of the impact of the implementation of AIFRS on retained earnings are set out in note 26.

NOTE 22 - MINORITY INTERESTS

Minority interests in controlled entities comprise:

		_________
	31 Dec 05	30 Jun 05
	三の
ا PS¶ع	E	$\frac{2}{3}$
Other shareholders in Ascendas Global Gateway Pte Limited	٥.
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Other shareholders in Highbrock Development Limited	20.2
	22.8	ู∾∣่อ ู

Consolidated

⁽¹⁾ As set out in note 17 above, as a result of the implementation of AIFRS, RePS are classified as debt from 1 July 2005.

NOTE 23 - NOTE TO THE CASH FLOW STATEMENT

Non-Cash Financing and Investing Activities

During the period, the following non-cash transactions were undertaken:

(i) Settlement of Distribution Liabilities

During the period, 33,988,496 securities were allocated under the Distribution Reinvestment Plan for total consideration of \$135.6 million.

(ii) Issue of Securities under the ESAP

During the period, 11,986,210 securities were issued to employees under the ESAP. Securities issued under the ESAP are accounted for as options. The securities are held in trust as security for the loans.

(iii) Conversion of RePS

During the period, 15,568,735 securities were issued as a result of RePS Holders' conversion elections. The value of the securities issued was \$45.8 million. No cash was received as a result of these transactions.

NOTE 24 - COMMITMENTS

		Consolidated
	31 Dec 05	30 Jun 05
	\$M	SM.
CAPITAL EXPENDITURE COMMITMENTS
Contracted but not provided for and payable:
Within one year
- Capital expenditure on investment properties	318.8	160.6
NON-CANCELLABLE OPERATING LEASE COMMITMENTS Future operating lease commitments not provided for in the financial statements and payable: Within one year
	1.7	2.1
One year or later and no later than five years	8.5	5.0
Later than five years	6.3
	16.5	7.1

Acquisition of Investment Properties

Amounts contracted for the acquisition of investment properties not provided for is \$176.3 million (30 June 2006; \$211.8 million). Amounts contracted for the acquisition of other investments not provided for at 31 December 2005 is \$41.3 million (30 June 2005; nil).

Guaranteed Land Payments - M7 Business Hub Development

A commitment exists at 31 December 2005 in respect of a Heads of Agreement signed between MGI, MGM, MGV, Brickworks Limited and Austral. Austral has a put option which gives it the right to require MGV to take a transfer of unsold saleable lots of land. The consideration payable over the duration of the development will be the greater of:

a) the guaranteed land payments of unsold saleable lots; or
b) the revised retail price of the unsold saleable lots less a 2.5% discount if the revised retail price is less than \$10 million or a 5% discount if it is greater than \$10 million.

MGI has provided Austral with a guarantee for all amounts payable to Austral by MGV under the Heads of Agreement.

NOTE 25 - EVENTS SUBSEQUENT TO BALANCE DATE

Subsequent to 31 December 2005, Macquarie Goodman has exchanged and/or settled contracts for the purchase of properties in Hong Kong for \$214.1million (HK\$1,219.2 million).

As detailed in note 17 above, Macquarie Goodman entered into interest rate swap contracts to hedge borrowings denominated in British pounds.

NOTE 26 - EXPLANATION OF TRANSITION TO AIFRS

Reconciliation of Equity Reported under Previous GAAP to Equity under AIFRS.

			1 Jul 04			31 Dec 04			30 Jun 05
		GAAP Previous	nents UFRS ą Adjustm	AIFRS	GAAP Previous	Adjustments AIFRS	AIFRS	GAAP Previous	Adjustments AIFRS	AIFRS
	Note	ia S	三奶	三の	Σ\$	$\frac{5}{9}$	三の	Σã	Σë	ti S
CURRENT ASSETS
Cash assets		10.3		10.3	13.7		13.7	7.2		7.2
Receivables		42.4		42.4	36.3		36.3	80.7	(30.4)	50.3
Inventories		27		2.7	တိ		S.S	13.5		13.5
Current tax receivables		$\overline{\mathcal{S}}$		$\overline{\mathsf{G}}$				63		63
Other assets	€	$\frac{1}{2}$		$\overline{31}$	2.6	ı	26	48.0	(1.4)	46.6
Total current assets		58.6	٠	58.6	58.5	ŧ	58.5	155.7	(31.8)	123.9
NON-CURRENT ASSETS
Receivables		ı		ŧ	r			15.5	(10.7)	4.8
Investment properties	(iii)							4,739.9	18.5	4,758.4
Inventories		61		$\overline{6}$	3.0		္သ	17.2	þ	17.2
Investments accounted for using the equity method		$\frac{8}{1}$		$\frac{1}{2}$	34.2		34.2	120.0		120.0
Deferred tax assets		1.6		$\frac{6}{1}$	$\frac{3}{2}$		$\frac{3}{2}$	$\frac{5}{2}$		7.0
Other financial assets		72.0		72.0	91.8		81.8	101.0		101.0
Other assets	這			ŧ	S.C		$\frac{5}{2}$	io 10	(4,7)	$^{30}$
Property, plant and equipment		$\frac{8}{2}$		2.8	3.0		S.Q	33		్లి
Intangible assets		99.0		99.0	101.8	ı	101.8	$\frac{0}{2}$		6.0
Total non-current assets		183.3	J	183.3	235.6	٠	235.6	5,015.4	უ ო	5,018.5
Total assets		241.9	ŧ	241.9	294.1	I,	294.1	5,171.1	(28.7)	5,142.4

$\overline{5}$

NOTE 26 - EXPLANATION OF TRANSITION TO AIFRS (CONTINUED)

			1 Jul 04			31 Dec 04			30 Jun 05
		GAAP Previous	ies Er ants Adjustme ₹	AIFRS	GAAP Previous	Adjustments AIFRS	AIFRS	GAAP Previous	AIFRS Adjustments	AIFRS
	Note	동 하	Žθ,	$\frac{5}{9}$	Žβ,	芝の	喜め	三切	妄の	e G
CURRENT LIABILITIES
Payables		တ် တ		9.6	20.7		20.7	5. I.G		91.7
Current tax liabilities					24		24
Interest bearing liabilities	ξ							207.0	793.9	1,000.9
Provisions		ြ		$\overline{c}$	13.6		13.6	93.5	(0.6)	92.9
Total current liabilities		10.3	ı	10.3	36.7		36.7	392.2	793.3	1,185.5
NON-CURRENT LIABILITIES
Payables			I		10.5		$\overline{0.5}$	28.5		28.5
Interest bearing liabilities	Ξ	79.1		79.1	97.5		97.5	1,656.2	(793.9)	862.3
Deferred tax liabilities	Ξ	18.2	₫,	18.6	187	ွာ	19.6	C.C	12.7	13.4
Provisions		$\tilde{\circ}$		$\mathbb{S}^2$	ී		C3	ू		$\frac{4}{3}$
Total non-current liabilities		97.5	ुं	97.9	127.0	ය ර	127.9	1,685.8	(781.2)	904.6
Total liabilities		107.8	đ.	108.2	163.7	ီ	164.6	2,078.0	12.1	2,090.1
Net assets		134.1	0.4	133.7	130.4	ີດ. ອ	129.5	3,093.1	(40.8)	3.052.3

$\overline{5}$

NOTE 26 - EXPLANATION OF TRANSITION TO AIFRS (CONTINUED)

			1 Jul 04			31 Dec 04			30 Jun 05
		GAAP Previous	Adjustments AIFRS	AIFRS	GAAP Previous	Adjustments AIFRS	AIFRS	GAAP Previous	Adjustments AIFRS	AIFRS
	Note	동 の	三功	芝の	ξ	嘉好	喜祷	듅	i S	Ξã
EQUITY
Attributable to Shareholders of
the Company
Issued capital	Ξ	126.6		126.6	128.9		128.9	162.3	(21.8)
Reserves	$\widehat{\bar{z}}$	$\overline{5}$	3.Q	5		5.8	ဇ ္ဇ	37.5	$\frac{3}{2}$	140.5 37.7
Retained earnings/	這				$\frac{2}{1}$ .3	$\overline{6}$ .6)	(5.2)	(98.9)	(10.1)	(109.0)
(Accumulated losses)		74	न र	$\frac{6}{4}$
Total equity attributable to
Shareholders of the
Company		134.1	$\overline{6}$	133.7	130.4	$\overline{6}$ .9)	129.5	100.9	(31.7)	69.2
Attributable to Unitholders of
$\overline{\mathbf{s}}$
Issued capital								2,815.7		2,815.7
Reserves	$\widehat{\bar{z}}$							$\overline{\circ}$	$\frac{9}{2}$	9.Q
Retained earnings	(ii)			E				99.2	(10.0)	892
Total equity attributable to
Unitholders of MG			Ę	ŧ	٠	t	1	2,923.0	$\frac{1}{2}$	2,913.9
Minority interests			Ą					69.2	ŧ	69.2
Total equity		134.1	$\mathbf{a}$	133.7	130.4	(0.9)	129.5	3,093.1	(40.8)	3,052.3

$\ddot{\phantom{a}}$

ន

NOTE 26 - EXPLANATION OF TRANSITION TO AIFRS (CONTINUED)

(i) Financial Instruments - Changes In Accounting Policy

The Consolidated Entity has elected to apply AASB 139 Financial Instruments: Recognition and Measurement from 1 July 2005 onwards. The impact on the Balance Sheet for the comparative periods is adjusted in the opening balances at 1 July 2005 and is summarised as follows:

	Net assets	Equity
	SM	\$M
Total under AIFRS at 30 June 2005	3,052.3	3.052.3
Effects of changes in accounting policy:
Reclassification of RePS from equity to liabilities	(51.0)	(51.0)
Fair value derivatives - liability	(14.0)
Interest rate swap revaluation reserve		(14.0)
Amortisation of deferred borrowing costs	(0.9)	(0.9)
Total under AIFRS at 1 July 2005	2,986.4	2,986.4

Under Previous GAAP, the Consolidated Entity did not recognise derivatives at fair value on the Balance Sheet. In accordance with AIFRS, derivatives are now recognised at fair value. Deferred tax is applied to fair value movements as appropriate.

Under Previous GAAP, RePS were treated as equity and transaction costs incurred on the issue of equity were offset against the proceeds from the issue. Under AIFRS, RePS are reclassified to debt and transaction costs amortised over the period to the first reset date. Distributions paid to RePS Holders are treated as interest expense under AIFRS. Under Previous GAAP, these payments were treated as equity distributions.

(ii) Deferred Leasing Incentives and Deferred Leasing Costs

Subsequent to the implementation of AIFRS, deferred leasing incentives and deferred leasing costs are included within investment property carrying values.

(iii) Investment Properties

The sale of the Peninsula Business Park, Brookvale property ("Brookvale") was recognised by the Consolidated Entity at 30 June 2005 as it met the revenue recognition criteria under Previous GAAP. As a result of the implementation of AIFRS, this sale is derecognised at 30 June 2005 and the investment property restated on the Balance Sheet. The sale of the property is recognised on settlement which took place during the half year ended 31 December 2005.

The effect of this reversal is that the investment property is included in investment property line at its previous carrying value.

(iv) Reclassification of Bank Loan Facility

The Multi-option Facility was refinanced effective 29 July 2005 and replaced with the SMCF. Under Previous GAAP, the former facility was classified as non-current at the balance sheet date. Under AIFRS, this facility is reclassified as current at 30 June 2005.

(v) Carrying Value of Listed Investments

Under Previous GAAP, listed investments were carried at fair value. Deferred tax was not applied to the resulting increment or decrement. Under AIFRS, deferred tax is recognised on the change in carrying value. The balance of deferred tax recognised in the asset revaluation at 30 June 2005 was \$11.2 million.

NOTE 26 - EXPLANATION OF TRANSITION TO AIFRS (CONTINUED)

(vi) Share Based Payments

Under Previous GAAP, no expense was recognised for options issued to employees. In addition, the ESAP scheme was accounted for as a loan to employees.

Under AIFRS securities issued under the ESAP are accounted for as options. The fair value of options granted must be recognised in the Employee Compensation Reserve with a corresponding increase in Treasury Securities, a class of equity. The fair value of options provided is recognised in the Income Statement over the period to the vesting date when the employees become unconditionally entitled to the option. The fair value is measured at grant date taking into account market performance conditions. The amount recognised as an expense is adjusted to reflect the actual number of options that vest except where forfeiture is due to market related conditions.

(vii) Reserves

Under AIFRS the gains on revaluation of investment properties are recognised in the Income Statement. In order to distinguish between revaluations of properties which continue to be held by the Consolidated Entity and those which have been realised on sale and have not yet been distributed, the Asset Revaluation Reserves and Capital Profits Reserves will be maintained and transfers between reserves will be made as appropriate.

The effect of the above transactions on Retained Earnings and the Asset Revaluation Reserve is as follows:

	1 Jul 04	31 Dec 04	30 Jun 05
	SM	SM	\$M
RETAINED EARNINGS
Balance of Retained Earnings under Previous GAAP	7.4	1.3	0.3
Increase in property income as a result of fixed increases in lease contracts Reduction of property income for amortisation of deferred leasing incentives and deferred leasing costs	$\tilde{\phantom{a}}$		4.1 (3.7)
Adjustments to fair values of investment properties			25.5
Change in date of recognition of sale of Brookvale property			(1.8)
Increase in deferred tax liability	(0.4)	(0.9)	(1.5)
Share based payments	(3.0)	(5.6)	(8.7)
Interest income from loans to ESAP holders.			(0.7)
Distributions to ESAP holders			0.7
Transfer from Retained Earnings to Asset Revaluation Reserve			(34.1)
Transfer of opening FCTR balance to Retained Earnings			0.1
Net decrease in Retained Earnings	(3.4)	(6.5)	(20.1)
Balance of Retained Earnings under AIFRS	4.0	(5.2)	(19.8)

ASSET REVALUATION RESERVE

Balance of Asset Revaluation Reserve under AIFRS	$\blacksquare$	50.3
Recognition of deferred tax relating to revaluation of listed units		(11.2)
Balance of Asset Revaluation Reserve under Previous GAAP		61.5

NOTE 26 - EXPLANATION OF TRANSITION TO AIFRS (CONTINUED)

Reconciliation of Profit under Previous GAAP to Profit under AIFRS

			Half Year ended 31 Dec 04			Year ended 30 Jun 05
		Previous	AIFRS		Previous	AIFRS
		GAAP	Adjustments	AIFRS	GAAP	Adjustments	AIFRS
	Note	iβ S	三份	m S	磊	iς Σ	es S
REVENUE AND OTHER INCOME
Gross property income	$(i)$ , $(ii)$				154.5	d.	54.9
Net gains from fair value adjustments on investment property	(iii)					25.5	25.5
Net gain on disposals of investment properties	Ê					15.2	$\frac{2}{10}$
Proceeds on disposal of investment properties	Ê				278.0	(278.0)
Share of net results of equity accounted investments		Ľ,		1.7	ී		3
Funds management		10.8		10.8	13.6		136
Property services		9.3		ය. ග	10.5		10.5
Development management		14.7		147	22.8		22.8
Other revenue from operating activities	Ξ	$\frac{2}{4}$	(0.7)	3.5	15.1	្ទ្រ	12.6
Total revenue and other income		40.7	ic 9	40.0	500.8	(239.4)	261.4
Carrying value of investment properties sold	Ē				(261.0)	261.0
Property expenses					(27.4)		(27.4)
Employee expenses	Ξ	ම්	(2.7)	(1.6)	(17.4)	$\overline{6}$ .6)	(23.0)
Finance costs - net	Σ	$\overline{2.1}$	G	नि नि	(25.9)	$\frac{8}{1}$	(24.1)
Merger transaction expenses					(22.5)		(22.5)
Other expenses		(6.1)		$\overline{6}$	(17.6)		(17.6)
Diminutive in value of management rights					(95, 4)		(95.4)
Total expenses		(ד.ק כ	ិ ខ	(19.1)	(467.2)	257.2	(210.0)
Profit before income tax		23.6	(2.7)	20.9	33.G	17.8	51.4
Income tax (expense)/benefit	Ξ	$\overline{15}$	$\overline{0.5}$	(8.0)	18.1	Ξ Ξ	17.0
Profit after income tax		16.1	$\overline{3}$ .2)	12.9	51.7	16.7	68.4
Amount attributable to minority interests					$\overline{15}$		$\overline{1}$
Profit attributable to Securityholders		16.1	(3.2)	12.9	50.0	16.7	66.7

\$S

NOTE 26 - EXPLANATION OF TRANSITION TO AIFRS (CONTINUED)

(i) Fixed Increases in Lease Rentals

The Consolidated Entity has entered into lease arrangements with customers which allow for fixed annual increases in rental income. Under AIFRS, the Consolidated Entity is required to recognise the total lease rental income evenly over the life of the lease. As a result, lease rental income is increased by \$4.1 million for the year ended 30 June 2005.

(ii) Amortisation of Lease Incentives

Under AIFRS, all lease incentives provided to customers are amortised over the life of the lease. Amortisation is shown as a reduction of gross rental income. As a result, the gross rental income for the year ended 30 June 2005 is reduced by \$3.7 million.

(iii) Gain on Disposal of Investment Properties

Under AIFRS, revenue and cost of sales arising on the sale of non-current assets are presented net and a net gain recognised on the face of the Income Statement.

In addition, the sale of the Brookvale property is derecognised at 30 June 2005 and the investment property restated on the Balance Sheet. The sale of the property is recognised on settlement which took place during the half year ended 31 December 2005.

(iv) Revaluation of Investment Properties

Under AIFRS, revaluation increments and decrements relating to investment properties are recognised in the operating results in the Income Statement. Under Previous GAAP the net increment was recognised directly in equitv.

(v) Reclassification of Interest Income

Under AIFRS, interest income and borrowing costs are presented net on the Income Statement.

In addition, interest from loans to employees under the ESAP is derecognised. The result of this change is a reduction of interest income of \$0.7 million for the year ended 30 June 2005.

(vi) Share Based Payments

As set out above, under AIFRS the fair value of options granted is recognised as an employee benefits expense. The result of this change is \$5.7 million for the year ended 30 June 2005.

(vii) Deferred Tax

Under AIFRS, deferred tax is calculated using the Balance Sheet liability method. The result of this change is \$1.5 million.

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS' DECLARATION

In the opinion of the Directors of Macquarie Goodman Management Limited:

a) the financial statements and the accompanying notes of the Consolidated Entity, are in accordance with the Corporations Act 2001, including:
giving a true and fair view of the financial position of the Consolidated Entity as at 31 December 2005 and î. of its performance, as represented by the results of its operations and its cash flows, for the six months ended on that date; and
ii. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and
b) there are reasonable grounds to believe that Macquarie Goodman Management Limited will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the Directors:

David Clarke, AO Chairman

Sydney, 28 February 2006

gory Goodman G Chief Executive Officer

INDEPENDENT REVIEW REPORT TO THE SECURITYHOLDERS OF MACQUARIE GOODMAN MANAGEMENT LIMITED

Scope

We have reviewed the financial report of Macquarie Goodman Management Limited ("the Company") for the half-year ended 31 December 2005, consisting of the consolidated interim statement of income, balance sheet, statement of changes in equity, statement of cash flows, accompanying notes 1 to 26 and the directors' declaration set out on page 58. The financial report includes the consolidated financial statements of the consolidated entity comprising the Company and the entities it controlled at the end of the half-year or from time to time during the half-year. The Company's directors are responsible for the financial report including the relevant reconciling Information regarding adjustments required under the Australian Accounting Standard AASB 1 First-Time Adoption of Australian equivalents to International Financial Reporting Standards.

We have performed an independent review of the financial report in order to state whether, on the basis of the procedures described, anything has come to our attention that would indicate that the financial report is not presented fairly in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and other mandatory financial reporting requirements in Australia and statutory requirements, so as to present a view which is consistent with our understanding of the consolidated entity's financial position, and performance as represented by the results of its operations and its cash flows and in order for the Company to lodge the financial report with the Australian Securities and Investments Commission.

Our review has been conducted in accordance with Australian Auditing Standards applicable to review engagements. A review is limited primarily to inquiries of company personnel and analytical procedures applied to the financial data. These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance is less than given in an audit. We have not performed an audit and, accordingly, we do not express an audit opinion.

Statement

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 Macquarie Goodman Management Limited is not in accordance with:

a) the Corporations Act 2001, including:
giving a true and fair view of the Consolidated Entity's financial position as at 31 December ì. 2005 and of its performance for the half year ended on that date; and
complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and Ħ. the Corporations Regulations 2001; and
b) other mandatory financial reporting requirements in Australia.

KPMG Sydney, 28 February 2006

P M Reid Partner

Macodart School (Stole)

(4)

lacquar

PHI Yearly Street Anderson Service

28 February 2006

Section 6

Gotion 1 Half Year Review
Section 2 Financial Performance
Regional Activities Section 3
Section 4 Capital Management
Sedion G Summary and Outlook
Appendices

Section en de la propieta de la

Koolastii

Macquarie

a katika ya Kanada ya Kasar

Highligh C

Macquarie Goodman Group profit after tax of \$239.9 million $\rightarrow$
Strong performance of core Australian property portfolio with 3.2% increase on $\rightarrow$ new lease transactions
Significant new development commitments totalling \$384 million at an average $\rightarrow$ yield on cost of 8.5%
Successful launch of the Australian Macquarie Goodman Wholesale Fund with $\rightarrow$ an initial portfolio value of \$1.0 billion**
Establishment of a UK/European platform $\rightarrow$
Increase in business space funds under management to \$16.0 billion (+125%) $\rightarrow$ and total funds under management of \$26.2 billion (+277%)
Distributions Per Security of 13.75 cents which is in line with forecast $\rightarrow$
Revised forecast adjusted Earnings Per Security* of 13.75 cents for H2FY06 $\rightarrow$ providing a forecast 14.8% increase in earnings (over H2FY05 EPS) and importantly parity between earnings and distributions

* Excludes unrealised investment property revaluation increases. ** Includes development properties on completion value

Oyacımatının al bitaninic

Australia $\rightarrow$

Successful launch of Macquarie Goodman Wholesale Fund ("MGW") with $\rightarrow$ an initial portfolio of \$1.0 billion*
Intensive management of \$4.0 billion core property portfolio $\rightarrow$
223,000 sqm of existing space leased $\rightarrow$
Like on like rental growth of 3.3% →
Customer retention of 87% $\rightarrow$
Completed developments of \$251 million providing an average yield of $\rightarrow$ 8.3% and committed new developments of \$265 million at an average yield of 8.1%

New Zealand $\rightarrow$

MGP DPU increase of 6% over pcp and 6 months total return of 14.8% $\rightarrow$
70,700 sqm of existing space leased (MGP) $\rightarrow$
Completed developments valued at A\$168 million providing average yield $\rightarrow$ of 9.2% and committed new developments of A\$87 million with an average yield of 9.0%

Opperations et lignation

Singapore $\rightarrow$

A-REIT DPU increase of 29% over pcp $\rightarrow$
Continued to grow acquiring an additional S\$399 million of new properties $\rightarrow$
Total FUM of S\$2.7 billion (+59% over pcp) $\rightarrow$

Hong Kong $\rightarrow$

Control a high grade portfolio of A\$830 million at an average yield of 6.4% $\rightarrow$
Initial marketing of the proposed Macquarie Goodman Hong Kong $\rightarrow$ Wholesale Fund has commenced
Established a management team and staff of 83 $\rightarrow$

UK/Europe $\rightarrow$

Established a significant platform in UK/Europe through the acquisition of $\rightarrow$ the Arlington business
Provides funds management, property services and development $\rightarrow$ management with 274 staff with offices across UK, France, Spain and the Netherlands
Reviewing a number of asset acquisition opportunities across the region $\rightarrow$

Section Explorate Particular Color

Kovanski p

, Gili

/lacquar

r inaamerian binginiiginta

	Listen man k Karaman Martin I	1919 - 1919 - 1920 INSBERGER KRY en alle E SAN ENGELANDI PARTI SERIES. E GAN II DE SAN SERIES (GA
Profit after tax (\$million)	239.9
Profit after tax (excluding AIFRS adjustments) (\$million)	184.3	186.6
Adjusted earnings per security*** (cents)	12.92	12.90
Distribution per security (cents)	13.75	13.75
Total return (%)	20.8
Payout ratio (%)	106.4	106.6
	, a change of the compa DI KABUPATÈN JELO	Saharne muhiin E WARANGE Y SI SA
Business space assets under management (\$million)	16,000	6,950
Total assets under management (\$million)	26,200	6,950
Total assets (\$million)	5,641	5,142
Gearing $*(\%)$	34.5	35.9
NTA(\$)	1.89	2.13
Market capitalisation (\$million) (closing price \$4.78 Dec 2005)	6,955	5,732

*The Explanatory Memorandum and PDS forecast provided represents 50% of the annualised forecast provided in those documents representing 6 months EPS and DPS figures. **Gearing is calculated as Total Interest Bearing Liabilities over Total Assets. *** Excluding unrealised investment property revaluations

Financial Performance

TICO LOCALIT	I SANGGANGANG KANANG PANG STAR MANAGEMENT AND STAR
	ETAN HAWA
Net property income	187.7
Management income	40.9
Investment income	9.8
	238.4
Unrealised gains on investment properties	55.6
Total income	294.0
Expenses from operations	(8.8)
Net interest expense	(42.0)
Tax	(3.8)
Minority interests	0.5
Profit after tax attributable to Securityholders	239.9
Less AIFRS adjustments	(55.6)
Adjusted profit after tax attributable to Securityholders	184.3
Transfer from reserves*	13.2
Total distributable income	197.5
Adjusted basic earnings per security (cents)**	12.92
Distribution per security (cents)	13.75
Weighted average number of securities - EPS (million)	1,426.1
Weighted average number of securities – DPS (million)	1,435.8

* Includes \$1.9m in pari-passu adjustments. **Adjusted EPS excludes unrealised gains on property revaluations and AIFRS adjustments

Key Impacts of AIFRS on Financial Performance

an sa a tengga	g , gansenses en 1992 given en 1992 1992 : 1993 de la distribució E MARTIN MARATINI
	KRIMA I RAMAN
Profit after tax attributable to Security holders	239.9
Less unrealised gains on investment property revaluations	(55.6)
	184.3
Add / (Subtract) other AIFRS adjustments:
Gain on disposals recognised in June 2005	(1.8)
Straight-line rental adjustments and incentives	(2.5)
Amortisation of RePS equity raising costs	0.6
Options expense relating to staff long-term incentive plans	3.3
Deferred tax	0.4
Adjusted profit after tax applicable to Securityholders	184.3

Revenue Analysis by Business Segment

San San San San San San San San San San	angguna CAMA TOWAY	ET HARMA , 1960), 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, 1970, www.crewin	TTMPPRPRPRPRPRPRP 83939339339	E MENTAN WATERAN. EEEE AA	Tina alaman tanah d S. S. S. S. M. W. S. S. a katalog ng Kabupatèn Ka Canada ay isa ay katalog asalang Calabahan di dinamakana ang mga mga mga mga mga mga mga mga mga mg
Gross property income	224.0	224.0
Net gain from fair value adjustment on investment properties:
- realised (wholesale fund 67.4%)	18.3		18.3
- unrealised	55.6				55.6
Net gain on disposal of investment properties	5.1		5.1
Share of net results from equity accounted investments	11.9		6.0	5.9
Net gain on disposal of equity investments	4.2		4.2
Funds management	3.3		3.3
Property services	1.0		1.0
Development management	3.0		3.0
Distributions from listed investments	3.9			3.9
Total revenue and other income	330.3	224.0	40.9	9.8	55.6
Less: Property expenses	(36.3)	(36.3)
Profit after tax attributable to Securityholders	294.0	187.7	40.9	9.8	55.6

Management Income Analysis by Geographic Segment

E AN CHRISTIAN CHRIST	E CARL CHART	RACH SING NGA PERSONAL PARA PARA PARA PARA PARA PARA PARA PA			E STILLE
Creation of wholesale fund	19.0	19.0
Fund management fees	5.5	0.1	2.0	$1.9*$	$(0.1)^{*}$	1.6
Development management fees	4.7	3.2	1.5
Property management fees	1.2		1.2
Development profits	7.3	5.4	1.9
Net gain on disposal of investment properties	3.2	3.2
Total	40.9	30.9	6.6	1.9	(0.1)	1.6

*Reflects the equity accounted net income brought to account for the half year

Financial Position

a a chung ann an an an an a	a sanggunan
	A MARANTINI I N
	KWA TERRA
Investment properties	4,345.6
Cornerstone investments in managed funds	548.5
Intangible assets	459.0
Other assets	287.4
Total assets	5,640.5
Interest bearing liabilities	1,943.3
Other liabilities and creditors	496.8
Total liabilities	2,440.1
Net assets	3,200.4
Issued capital	3,091.1
Reserves (includes retained earnings)	86.5
Minority interests	22.8
Total equity	3,200.4
Gearing	34.5%

Financial Position

Headline gearing of 34.5% $\rightarrow$
Adjusted gearing of 37.8% inclusive of "off balance sheet" financing (MGQ share $\rightarrow$ of Hong Kong seed assets)
Conservative balance sheet allocation to off shore operations $\rightarrow$

Gearing					34.5%		37.8%
Net assets	3,138.6	49.5	10.9	1.4	3,200.4	0.0	3,200.4
Total liabilities	1,150.6	414.1	191.6	683.8	2,440.1	312.5	2,752.6
Other liabilities	143.6	52.7	19.2	281.3	496.8	7.4	504.2
Interest bearing liabilities	1,007.0	361.4	172.4	402.5	1,943.3	305.1	2,248.4
Total assets	4,289.2	463.6	202.5	685.2	5,640.5	312.5	5,953.0
Other assets	86.4	23.6	49.6	576.3	735.9	10.6	746.5
Investments in managed funds	199.3	118.2	132.6	98.4	548.5		548.5
Investment properties	4,003.5	321.8	20.3	$10.5*$	4,356.1	301.9	4,658.0
WEBWETH HELL	Kalangan (Ka	E A CARD DAMNA HA	EN EN ANGELIA ANG KANSIMBANG KA	1974 E Managarangan		13333	ERRE BELLEVILLE

* The interest in the Colworth Property in the UK is included under "Investments accounted for using the Equity method" on the MGQ Balance Sheet

SACIONE ENGIO PROVINCI

Roombreig

enami
Sarah
Sarah
Sarah

sam
Citi

Macquarie

a ang pagkalang na kalalang na nag

Australian Investment Portfolio

92 properties located across all key Australian markets with a total value of $\rightarrow$ \$4.0 billion
98% occupancy and a weighted average lease expiry of 5.1 years $\rightarrow$
Strong portfolio performance over the half year $\rightarrow$
$\rightarrow$ 222,952 sqm in new lease transactions (\$21.6 million net annual rental)
$\rightarrow$ Average increases of 3.2% on passing rentals
$\rightarrow$ 87% retention rate
$\rightarrow$ Revaluations adding \$55.6 million in value for the 6 months

Asset Class Diversification

Development Portfolio

\$419 million of developments completed at an initial yield of 8.7% with an $\rightarrow$ average lease expiry of 7.8 years
\$384 million of new commitments secured across all groups at an initial yield of $\rightarrow$ 8.5% with an average lease term of 11.7 years
43% of development projects secured for third party managed funds $\rightarrow$
Significant pipeline of growth for both MGQ and third party managed $\rightarrow$ funds

SAAF SAARDE EEN STATISTIKE HET DE STATISTIKE VAN DIE STATISTIKE VAN DIE STATISTIKE OORLANDE DIE GEWALD DE STAT DIE STATISTIKE STATISTIKE VAN DIE STATISTIKE VAN DIE STATISTIKE VAN DIE STATISTIKE VAN DIE STATISTIKE GEWALD D	E. E. L E TAMBAYA KALE DIN	11111111 RATI I WA WA	MCCORRECT COMMUNICATION	Maria Maria de Continuado de Continuo de Continuo de Continuo de Continuo de Continuo de Continuo de Continuo S VI SA
MGQ (Australia)	87,539	8.4	111	29	9.5
MGQ (New Zealand)	53,447	9.1	77	20	9.6
MGQ (Asia)	35,605	10.3	32	8	5.0
MG Wholesale Fund (Australia)	108,081	7.9	154	40	16.9
MGP	18,424	8.7	10	3	7.2
TOTAL	303,096	8.5	384	100	11.7

Development Pipeline

3.3 million sqm of developable land $\rightarrow$

Group Development Pipeline

$\rightarrow$ Continue to provide high quality investment product for both MGQ and third party managed funds
Ability to provide "off-market" organic growth for third party funds $\rightarrow$ management activities
Strategically located in key development locations to meet current and $\rightarrow$ future expected demand

Sydney Development Pipeline

Funds Management - New Initiatives

Macquarie Goodman Wholesale Fund (Australia) $\rightarrow$
Successful launch of initial portfolio valued at \$1.0 billion* $\rightarrow$
Follow-on acquisitions and developments totalling \$150 million $\rightarrow$
Forecast funds under management of \$1.2 billion on completion of $\rightarrow$ committed projects
Forecast target gearing of 30% provides capacity for further acquisition $\rightarrow$ opportunities
MGQ retained a cornerstone investment of 32.6% $\rightarrow$
Macquarie Goodman Hong Kong Wholesale Fund $\rightarrow$
Secured a high grade portfolio of A\$830 million with an initial yield of 6.4% $\rightarrow$
$\rightarrow$ Marketing of the fund has commenced
MGQ to retain a significant cornerstone with final level subject to demand $\rightarrow$
Target fund launch of H2 FY06 remains on track $\rightarrow$
Solid pipeline of acquisition opportunities throughout the region $\rightarrow$

New Zealand Operations

MGQ owns property and development assets worth NZ\$345 million to provide $\rightarrow$ growth opportunities to the MGP fund
Funds Management MGP $\rightarrow$
Gross assets of NZ\$639 million $\rightarrow$
Market capitalisation of NZ\$480 million $\rightarrow$
Strong total returns to unitholders of 14.8% (6 months to September 05), $\rightarrow$ and 6% growth in DPU
Property Services MGP $\rightarrow$
70,700 sqm of new leases totalling NZ\$8.1 million annual net rental →
Occupancy rate of 97% →
WALE of 4.4 years →
Property Development →
A\$171 million in development projects currently underway with an initial $\rightarrow$ yield of 8.7% and weighted lease term of 9.1 years
1.4 million sqm of developable land in pipeline $\rightarrow$

* All figures are MGP half year results at 30 Sept 2005 unless otherwise stated

Singapore Operations

A-REIT has provided strong investment performance over the past 6 months $\rightarrow$ with 29% growth in distributions per unit (compared to $pc^{**}$ )
Assets under management of S\$2.7 billion (+59% over pcp) $\rightarrow$
Acquisition of 16 properties for S\$399 million $\rightarrow$
Raised S\$240 million worth of new equity $\rightarrow$
Market capitalisation S\$2.5 billion $\rightarrow$
5th largest LPT in Singapore, 33rd largest entity on the SGX-ST $\rightarrow$
Strong accretive acquisition pipeline $\rightarrow$

A-REIT Growth in assets under management

*MGQ holds 40% interest in the Ascendas-MGM JV sharing Fund Management, performance fees and acquisition fees. **Period represents A-REIT results at 31 Dec 2005

UK/European Platform

Successful acquisition of Arlington in December 2005 $\rightarrow$
Specialist in funds management, development management and $\rightarrow$ property services
Access to 274 people across the UK and Continental Europe $\rightarrow$
Significant funds under management platform $\rightarrow$
A\$7.2 billion business space assets under management $\rightarrow$
A\$17.4 billion total assets under management $\rightarrow$
Business integration has commenced and progressing to plan $\rightarrow$
Currently reviewing a number of asset acquisition opportunities to seed $\rightarrow$ new European investment funds

Total Funds Under Management

Sedron Gapta Managenjent

Exclosed

enami
Sarah
Sarah
Sarah

eann
Cliù the co

Macquarie

÷. Brnen am

Total group borrowings increased to \$1,943 million resulting in headline $\rightarrow$ gearing of 34.5% and adjusted gearing of 37.8% which is within the target range of 35%-40%
\$182.6 million in new equity raised during the period including $\rightarrow$
DRP \$135.6 million $\rightarrow$
RePS conversion \$45.8 million $\rightarrow$
Interest rates are hedged to 83% over the next 12 months at 5.31% with a $\rightarrow$ weighted average maturity of 7.5 years
All offshore operations are debt funded mitigating the need for $\rightarrow$ equity derivatives
MGQ's wholly owned sub-trust MGA has Reset Preference Units on issue, $\rightarrow$ which are now recognised as debt funds under AIFRS reporting requirements

enama
Alama
Alama
Alama essaa
Viittä Macquarie

Kovaleven

Summary and Outlook

Continue to extend our MGQ Customer Service Model across our expanded $\rightarrow$ international platform
Committed focus to the core Australian Investment portfolio $\rightarrow$
Continued strong organic growth in development commitments in Australia and $\rightarrow$ New Zealand at attractive yields
Significant opportunities for continued organic growth in Singapore and New $\rightarrow$ Zealand markets
Integration of UK/European platform and assess further growth opportunities in $\rightarrow$ third party managed fund platform across the region
On track to launch the Macquarie Goodman Hong Kong Wholesale Fund in 2nd $\rightarrow$ half 2006 financial year
Continue to assess growth markets and opportunities for our Asian business $\rightarrow$
Re-affirm our previous forecast of 13.75 cents earnings and distribution per $\rightarrow$ security for H2FY06 providing parity

Saajonie en kommunen

Macquarie

a ang pagkalalang ng pagkalang ng pag-pagkalang ng pag-pagkalang ng pag-pag-pag-pag-pag-pag-pag-pag-pag-pag-

MARK AND A REAL PROPERTY OF A REAL PROPERTY		CHATRY DESCRIPTION	r s sannog STATI 1919 MA
Net assets as at 30 June 2005 (Previous AGAAP)		3,093.1	2.15
AIFRS adjustments
Deferred tax	(12.7)
Employee Security Acquisition Plan (ESAP)	(19.6)
Deferred leasing costs and incentives	(6.1)
Other	(2.4)	(40.8)	(0.03)
Net assets at 30 June 2005 under AIFRS		3,052.3	2.12
AIFRS financial instruments adjustment at 1 July (AASB 132 and AASB 139)
Adjusted for RePS on 1 July (treated as debt under AIFRS)		(51.0)	(0.03)
Adjusted for fair value of derivatives and borrowing costs		(14.9)	(0.01)
Net assets at 1 July under AIFRS		2,986.4	2.08

LY OF A BANKE

a bawa

$\overline{c}$

DOG

a a comparable a construction of the comparable and construction of the comparable and construction of the com	CTITI MAR	i Ginningi	8 - 1919 8 - 1915 - 1927 - 193 C. Ginthingsanan manaz Saadadaan kiloloofi 1999
Net assets at 1 July under AIFRS		2,986.4	2.08
Revaluation of non-current investments during the period
Revaluation of wholesale properties (unrealised)	8.9
Revaluation of investment properties	46.7	55.6	0.04
Revaluation of AREIT		11.2	0.01
Movements in equity
Transfer from reserves (EPS/DPS gap)	(13.2)
Equity issues (DRP and RePS conversion, net of issue costs)	201.2
Issue of treasury securities (ESAP Receivable)	(49.0)	139.0	0.10
Other
Change in fair value of derivatives and foreign exchange losses		3.6
Amounts due to minority interests		4.6
Net assets at 31 December 2005		3,200.4	2.23
Less Intangibles (Arlington, MGP)		(459.0)	(0.32)
Less Minority interests		(22.8)	(0.02)
Net tangible assets at 31 December 2005		2,718.6	1.89

² Calculated on 1,435.8 million securities being closing securities on issue of 1,455.1 million less 19.3 million securities related to ESAP

ang pada taun

Refinanced bank debt facilities completed in July 2005 $\rightarrow$
$\rightarrow$ \$1.4 billion Syndicated Multi Currency Facility (SMCF)
Refinance existing facilities $\rightarrow$
Bring stapled group borrowings primarily under one facility $\rightarrow$
Platform for moving to unsecured debt capital markets over medium term $\rightarrow$

Currency Mix

Funding Diversification

Para

Gearing $\rightarrow$
Total interest bearing liabilities \$1,943.3 million $\rightarrow$
Target gearing range of 35% to 40% $\rightarrow$
$\rightarrow$ Headline gearing of 34.5%, adjusted gearing of 37.8%
Interest Cover $\rightarrow$
EBITDA to interest expense of 3.5 times $\rightarrow$

Hedging Profile $\rightarrow$

Weighted average hedge rate of 5.31% $\rightarrow$

AUD\$ - 5.89% NZD\$ - 7.42% SGD\$ - 2.58% GBP£ - 4.56%

Average interest rate hedge maturity of 7.5 years →
Fixed rate debt percentage of 83% $\rightarrow$

Interct Rate Radging Profile

yan
Yan Koriji Ya Ya Ya Ya

Final number of securities on issue 1,455.1 million $\rightarrow$
Weighted average number of securities 1,426.1 million* $\rightarrow$
Value of new equity raised \$182.6 million $\rightarrow$
Market capitalisation \$6,955.4 million $\rightarrow$

	Alexandria (Alexandria (Alexandria (Alexandria (Alexandria (Alexandria (Alexandria (Alexandria (Alexandria (
Dividend Reinvestment Plan	33,988,496
Conversion of RePS	15,568,735
Employee Security Acquisition Plan and Executive Options Plan	566,666

Geographic Coverage

Total industrial and business space assets under management of \$16 billion $\rightarrow$

Cartaign and the first prop

$\rightarrow$ Positive performance in most regions
WALE maintained at 5.1 years $\rightarrow$
$\rightarrow$ Occupancy maintained at 98%

Maria Maria	999: 13 19921996 1999 1999: 12 1992 22 1999 Talia kalendari p	800383 Killer i Star a propinsingen 16	TITE SE lin ya mamma 24 S S 27 a ministrativa yy	E të fillohet në të kalendari në ka EKRET I STA E VI TA ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	a ya manazarta ya matsa 8 TAWA 1987 E DI PRIMI
Sydney South	15	4.5	4.2	98	99
Sydney West	22	4.4	4.1	97	99
Sydney Outer West	19	6.2	6.4	100	100
Sydney North	22	4.4	4.7	96	96
Victoria	16	6.2	6.1	99	98
Queensland	4	5.5	4.8	100	100
Other	$\overline{2}$	6.4	7.0	100	100
Total	100	5.1	5.1	98	98

Calcionaer Koznikori

Solid retention in all key regions: $\rightarrow$
87% for six months $\rightarrow$
80% for rolling four years $\rightarrow$

Victoria Queensland	13 2	71 100
Sydney North	9	62
Sydney Outer West	19	100
Sydney West	33	95
Sydney South	24	81
n agus 2006 an	E SANTA PROVINCI INDIANA NA PARTIA DE LA PROVINCIA DE LA PROVINCIA DE LA PROVINCIA DE LA PROVINCIA DE LA PROVI DE LA PROVINCIA DE LA PROVINCIA DE LA PROVINCIA DE LA PROVINCIA DE LA PROVINCIA DE LA PROVINCIA DE LA PROVINCI *#####################################	E ^rm illeg en en de Karl (de Stadten) 2000 - Andre Stadten en de Stadten (de Stadten) a ilikuwa

Locativa Doci

Leased 222,952 sqm of existing space $\rightarrow$
\$21.6 million net annual rental $\rightarrow$
Average lease term on new deals of 4.0 years $\rightarrow$
Average rental increases of 3.2% on new lease transactions $\rightarrow$

YY TAARIE WAART	E. – SAMMANIA C. o. 3. 4. : 7. : MM Kittering	A START START E STATISTIKA	Kabupatèn Timber di Kabupatèn Bandaran Kabupatèn Bandaran Jama Bandaran Bandaran Bandaran Bandaran Bandaran B 88 (111 111 112	n yanying mga mga mga mg THE REPORT OF STREET AND RELEASED FOR THE RELEASED WA 19
Sydney South	15,014	1.9	4.6	5.6
Sydney West	95,171	10.0	3.6	3.3
Sydney Outer West	54,048	4.5	3.0	2.5
Sydney North	16,784	2.7	5.8	2.7
Victoria	41,935	2.5	4.7	2.4
Total	222,952	21.6	4.0	3.2

BRaijor Leaving Trancaction

a vypravanovny	E TENNESSE	E KANDA Y E SANTO EN S a na katika k	8333 E. KARAMANYA YA YA 111111 Chilliteir	i kompaning ia yawane a kang taong mga mga
Smithfield Distribution Centre	Coca Cola Amatil	34,388	2.6	3
Villawood Distribution Centre	Kimberly Clark	17,810	1.5	з
Holroyd Distribution Centre	Ramset Fasteners	13,051	1.2	2
Homebush Corporate Centre	1 ^st Fleet	14,616	1.2	2
Federation Distribution Centre	Australian Arrow	9,288	0.6	10
Abbott Industrial Estate	Sonopress	5,314	0.6	8
Seville Business Park	Supply-ling	5,662	0.5	5
Transtech Business Park	W.A. Flick & Co.	3,296	0.5	10.
Brodie Industrial Estate	Foxteg Australia	4,108	0.5	4
Burrows Industrial Estate	Sydney Bond Australia	3,929	0.5	5

VV olgintek Avarga kama makanginin

Stable lease expiry profile $\rightarrow$
41% of income expiring beyond five years $\rightarrow$

b yrin y Profile

Manageable lease expiry profile over the next 12 months $\rightarrow$

8.	Talik dan sebagai pengali dan menggunakan dalam pada tahun 1999. Sebagai pada tahun 1999 dan sebagai pada tah 1940 - 1940 - 1940 - 1950 PANDA BERKET KAN	Maria Salah Salah Sebagai di Badan Sebagai Seba MARKA KANADA MARKA YA MARKA FAR A CARD AN DIA AN AN AN AN AN AN AN AN AN AN AN AN AN
Sydney South	2.8	2.7
Sydney West	3.3	1.9
Sydney Outer West	1.6	1.9
Sydney North	1.9	2.2
Victoria	1.8	2.3
Queensland	0.4	0.4
Other	n/a	0.2
Total	11.8	11.6

Patometry Rose and iting

\$793 million of properties revalued at 31 December 2005 $\rightarrow$
5.6% increase over previous book values $\rightarrow$
Solid increases in Sydney West, Sydney Outer West and Victoria $\rightarrow$
Revalued portfolio weighted average capitalisation rate of 7.8% $\rightarrow$
MGQ portfolio weighted average capitalisation rate of 8.3% $\rightarrow$

Maria Martin Martin Martin Araba	lije verklaarde ontsje MARTING E SMARTINIAN	E KANADIAN KANADIA Kamat kawa	EN FERDEZIA ALDEA I Telling	KIN KERANGGAN PROPINSI KELAMATAN PROPINSI KA	TT PERM REMARK STRAN a si Taragang mang ESTALE STRAK SANA KALEMBAN M
Sydney West	113.1	121.3	8.2	7.3	8.1
Sydney Outer West	313.6	327.6	14.0	4.5	7.5
Sydney North	186.5	191.7	5.2	2.8	7.9
Victoria	167.1	182.7	15.6	9.3	8.0
Other	12.9	14.0	1.1	8.8	8.8
Total	793.2	837.3	44.1	5.6	7.8

Top 45 Augustiners (by ret income)

Top 25 customers contribute 41% of MGQ's net property income $\rightarrow$
50% of MGQ's net property income is sourced from the top 40 customers $\rightarrow$

ra
La característica por la característica de la característica

504,036 sqm of development product over 23 properties currently underway* $\rightarrow$
Estimated end value of \$808 million with an averaged initial yield of 8.1% and $\rightarrow$ 10.8 year weighted average lease term
\$305 million (38%) under development for third party funds $\rightarrow$

elle Salvania	ESTER E HAMARAS Y		NTER MELLER TERRETA UZA WEBEL CITTI TITTI T	ATT TILL AT ALL THE MARKET OF THE TABLE TO A MARK MARK AND DESCRIPTION	TI TANAHIRI KEPANDAN YANG MENJADI US – MARASANAS KANANGUNG Eusebald (Kanangung Kanangung Tanggayay na mga mga mga mga mga mga mga mga mga mg E TITULITA
MGQ (Australia)	159,557	8.0	321	40	6.2
MGQ (New Zealand)	97,300	8.7	150	18	9.3
MGO (Asia)	35,605	10.3	32	4	5.0
MG Wholesale (Australia)	172,806	7.7	284	35	18.3
MGP (New Zealand)	38,768	8.7	21	3	8.0
TOTAL	504,036	8.1	808	100	10.8

* Excludes Arlington (UK/Europe) development program

C-orneled Box of Doved openance

397,850sqm of projects completed across all groups* in the period $\rightarrow$
End value of \$419 million $\rightarrow$
8.7% initial yield on total project cost $\rightarrow$
Weighted average lease term of 7.8 years $\rightarrow$

Martin Martin	TANANG K	a ya kuwa wa mshindi wa 1979 ya 1979 a 1979 a 1979 a 1979 a 1979 a 1979 a 1979 a 1979 a 1979 a 1979 a 1979 a 1	Martin Maria a Che EMA MARCA ANTIQUES DE	A 1986 An Chaillimhead an Dùbhair an Ch Extremental Service	ETT PATER TERRET MA "KABANAHANGKANGKANG") KANGLIT KATUTAN E MANARA YA KUWA E MARKO KANTONIA KATALIA LAITA HAR
MGQ (Australia)	185,256	8.3	251	60	9.0
MGQ (New Zealand)	130,281	9.2	130	31	5.7
MGP (New Zealand)	82,313	9.4	38	9	7.4
TOTAL	397,850	8.7	419	100	7.8

C-official color Development of the C-line

Significant completions of \$382 million in the period $\rightarrow$
Average initial yield after all costs of 8.6% $\rightarrow$
Weighted average lease term of 7.8 years $\rightarrow$
38% of projects in New South Wales $\rightarrow$

en varattanna	ay sa mga mga mga TINGGRAPHI (R	A SANTO MAR E KARA DI 199	a sa tanàna amin'ny faritr'i Nor Maria Contentante EVAN MARK TINDA	,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, A DI SANTO COMPANDIARE NELLA	a takan waka wa Markula (1999) Karl Santa (1999) E MARINE DE LA LA E PARAMANA TIN
Sydney Outer West	97,669	8.4	145	38	8.2
Victoria	57,969	8.3	53	14	9.8
Queensland	21,959	8.2	39	10	10.6
South Australia	7,659	8.0	15	4	10.0
Auckland	130,281	9.2	130	34	5.7
Total	315,537	8.6	382	100	7.8

C-omnittat itanan

\$220 million of new projects committed in the period $\rightarrow$
Expected initial yield of 8.9% $\rightarrow$
Weighted average lease term of 8.7 years $\rightarrow$

Total	176,591	8.9	220	100	8.7
Asia	35,605	10.3	32	14	5.0
Auckland	53,447	9.1	77	35	9.6
Queensland	3,850	8.9	5	2	5.0
Victoria	24,114	8.7	24	11	5.8
Sydney South	4,645	9.2	9	4	5.0
Sydney Outer West	54,930	8.2	73	34	11.6
an Samarangan	5. SAPRA E JAYAHAN E. Y	II, ANTI ANG E TAN ET IN HITA	Hallin M E E CE SIMBOLI e dina k	E SAN DIE SOORTE GEBEURE VAN DIE SOORTE DE MOZONI PROPINSKI PR	ET TANAN MARKA a vangang E TENNIS SAN SALA E KATALOG KA

Den alle

3.3 million square metres of developable land in the portfolio $\rightarrow$
27% of pipeline located in core New South Wales market $\rightarrow$
19% of pipeline located in core Sydney West market $\rightarrow$

Total	6,591,735	3,297,244	50	3,294,491	100
Auckland	1,840,845	488,981	27	1,351,864	41
South Australia	473,605	283,000	60	190,605	6
Queensland	553,776	238,329	43	315,447	9
Victoria	1,403,919	855,130	61	548,789	17
Sydney North	93,705	49,485	53	44,220	1
Sydney Outer West	829,463	623,402	75	206,061	6
Sydney West	1,324,162	703,562	53	620,600	19
Sydney South	72,260	55,355	77	16,905
	E. Angelende JAKARA	E a Compositor del a an	U. Angles programas ing pagpag-ng ERRETT TILL	a sanannan isinis	a manara 1979 - 198
ang a marangangan	Karamatan Sanda	The commentary of the comment	E ANG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATAL KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG KATALOG NG	Sandara ya kuwa	N SANT SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA S TANGGARAN SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANTA SANT

Acquisitions and Disposals

Acquisitions $\rightarrow$

\$682 million in acquisitions for the half year $\rightarrow$
\$472 million in Hong Kong $\rightarrow$
\$123 million in New Zealand $\rightarrow$

Disposals $\rightarrow$

\$1,385 million in disposals for the half year $\rightarrow$
\$1,069 million to Australian wholesale fund $\rightarrow$
\$293 million of Hong Kong assets to Macquarie Bank $\rightarrow$

	a sa batan sa san RADIO COMPANY E PERSONAL DE LA PRODUCTIVA DEL	en ar an dùthchan an dùthchan an dùthchan an dùthchan an dùthchan an dùthchan an dùthchan an dùthchan an dùthc Beall an dùthchan an dùthchan an dùthchan an dùthchan an dùthchan an dùthchan an dùthchan an dùthchan an dùthc Antika Ma
Australia	87	1,092
New Zealand	123
Hong Kong	472	293
Total	682	1,385

Acquisitions

Whajor Transaction ("xchanged during the Periotic

	ERKEN BERGEN TERRE
WA MARAMARI WA	CHINERAL
Part Evergain Plaza, Hong Kong (40%)	130.5
Part Dynamic Cargo Centre, Hong Kong (70%)	108.3
Tsuen Wan International Centre & Lung Wah International Godown, Hong Kong	94.7
Fountain Set Buildings, Hong Kong	80.0
Viaduct Corporate Centre, New Zealand (50%)	65.4
Toll Portfolio, Australia*	64.0
Part Evergain Plaza, Hong Kong (18%)	58.2
Eden Commercial Corporate Centre, New Zealand	57.3

* For further details on Toll portfolio please refer to announcement made on 9/8/05

Disposals

1978 - 1979 - Transverse og at

11. juli 12. juli 12. juli 12. juli 12. Godine 12. juli 12. juli 12. juli	E ALD LLADI MALLED ESTERNOS (COMUNIMOS)
Wholesale Fund Portfolio*	1.029.6
50% of Hong Kong Portfolio	292.5
Additional wholesale fund properties - West Avenue Industrial Estate, Edinburgh Parks, SA - Purling Distribution Centre, Edinburgh Parks, SA	14.7 24.5
Acacia Ridge Business Park, Stage 2, Acacia Ridge, Qld	23.0

* For further details on wholesale fund portfolio please refer to announcement made on 17/11/05

Thankway

Disclaimer

a Killa
Karama
Karama

Jar

acal

This presentation for the half year ended 31 December 2005 has been prepared by Macquarie Goodman Group comprising Macquarie Goodman Funds Management Limited (ACN 067 796 641) (AFSL 223621) as Trustee and Responsible Entity of the Macquarie Goodman Industrial, Capital, Thomas and Ascendas Industrial Portfolio Trusts and Macquarie Goodman Management Limited (ACN 000 123 071). The details in this presentation provide general information only. It is not intended as investment or financial advice and must not be relied upon as such. You should obtain independent professional advice prior to making any decision. This Report is not an offer or invitation for subscription or purchase of securities or other financial products. Past performance is no indication of future performance. All values are expressed in Australian currency unless otherwise stated. $28$ February $2006$

AI assistant

GOODMAN GROUP — Interim / Quarterly Report 2006

64998_rns_2006-02-27_4c95cde5-81e4-4339-8ed8-55092179a8d7.pdf

ASX Release - Macquarie Goodman Group ("Macquarie Goodman")

Macquarie Goodman achieves key targets Results for announcement to the market

The past six months has seen Macquarie Goodman evolve into a truly international business. The group has clearly demonstrated its ability to deliver its objectives with the achievement of a number of key milestones in Australia, Asia and Europe.

asx rel

Macquarie Goodman

Property Investment

Property Development

Macquarie Goodman

Funds Management

asx ease

Capital Management

Outlook

Annexure to Macquarie Goodman Group ("MGQ") 31 December 2005 half year results - ASX Announcement

Acquisitions and Disposals

Acquisitions

Disposals

Completed Developments

(* 1488)

Den vel oprttaant flienaliste

Major Leesing Transactions

APPENDIX 4D

MACQUARIE GOODMAN MANAGEMENT LIMITED

RESULTS FOR ANNOUNCEMENT TO THE MARKET

FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2005

CONTENTS

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS' REPORT

Directors

Review and Results of Operations

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS' REPORT

Review and Results of Operations (continued)

Dividends and Distributions

State of Affairs

a) Arlington Acquisition

b) Launch of Macquarie Goodman Wholesale Fund

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS' REPORT

c) Interest in Hong Kong

Strategy and Outlook

Events Subsequent to Reporting Date

Rounding

Lead auditor's independence declaration under Section 307C of the Corporations Act 2001

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES BALANCE SHEET AS AT 31 DECEMBER 2005

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF CHANGES IN EQUITYFOR THE HALF YEAR ENDED 31 DECEMBER 2005

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

aì Basis of Preparation of Interim Financial Report

Application of AASB 1 First-time Adoption of Australian Equivalents to International Financial b) Reporting Standards ("AIFRS")

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

c) Principles of Consolidation

Accounting for the Acquisition of Macquarie Goodman Industrial Trust ("MGI")

Joint Ventures

Joint Venture Entities

Joint Venture Operations

Transactions Eliminated on Consolidation

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

ď) Revenue Recognition

Rental Income

Asset Sales

$e)$ Foreign Currency Translation

Transactions

Translation of Controlled Foreign Operations

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Investment Properties Ð

Components of Investment Properties

Revaluations of Investment Properties

Disposal of Investment Properties

Redevelopment Projects

Development Costs of Investment Properties

g) Deferred Leasing and Tenancy Costs

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

h1 -Finance Costs

$\ddot{\mathbf{n}}$ Invastments

Recoverable Amount of Non-Current Assets Valued on Cost Basis j)

k) Interest Bearing Liabilities

I) Hedging

(i) Policy from 1 July 2005 Onwards

(a) Cash Flow Hedge

(b) Hedge of Net Investment in Foreign Operation

GOODMAN GROUP Interim / Quarterly Report 2006

MACQUARIE GOODMAN MANAGEMENT LIMITED AND ITS CONTROLLED ENTITIES STATEMENT OF CHANGES IN EQUITY
FOR THE HALF YEAR ENDED 31 DECEMBER 2005

⁽²⁾ Other loans - Commercial Mortgage Backed Securities ("CMBS") Details are as follows:

⁽⁴⁾ Reset Preference Units ("RePS")