GPT GROUP — Regulatory Filings 2003

Jul 29, 2003

Interim Financial Report General Property Trust and its Controlled Entities

Half-Year ended 30 June 2003

ABN 58 071 755 609

Statement of Financial Performance Half-Year ended 30 June 2003

		Consolidated
		30 Jun 2003	30 Jun 2002
	Note	\$m	\$m
Statements of Financial Performance
Revenue
Rents		295.6	274.8
Interest - Joint venture investment arrangements		2.1	6.7
Interest - Cash and short term money market securities		1.7	1.6
Proceeds on disposal of units in listed property trust		41.2
Share of net profits of associates	19	30.2	27.6
Other Income		1.3	$\overline{\phantom{a}}$
Revenue		372.1	310.7
Expenses
Rates, taxes and other property outgoings		65.5	61.3
Repairs and maintenance		4.6	4.4
Provision for doubtful debts		0.4	0.5
Audit and accounting fees	3	0.3	0.3
Borrowing costs		37.3	32.6
Responsible Entity's fee	3	12.6	16.6
Book value of units in listed property trust		41.2	u.
Other expenses		1.6	2.5
Expenses		163.5	118.2
Net Operating Income		208.6	192.5
Increase in asset revaluation reserve	15	37.7	39.1
Total revenues, expenses and valuation adjustments attributable
to members of the parent entity recognised directly in equity		37.7	39.1
Total changes in equity other than those resulting from transactions with unitholders as owners
		246.3	231.6
		Cents	Cents
Basic earnings per unit	18	10.7	10.1

The above Statement of Financial Performance should be read in conjunction with the accompanying notes.

		\$m	\$m
Distribution
Net Operating Income		208.6	192.5
Undistributed income at the beginning of the reporting period		0.7	0.5
Total available for distribution		209.3	193.0
Distribution paid and payable	2	(204.7)	(191.8)
Undistributed income at the end of the reporting period		4.6	1.2

Statement of Financial Position As at 30 June 2003

		Consolidated
		30 Jun 2003	31 Dec 2002
	Note	\$m	\$m
Current Assets
Cash		46.4	45.6
Receivables Other	4 5	82.1 9.8	39.7 13.2
		138.3	98.5
Non-current Assets
Investment properties	6	6,734.6	6,528.1
Other financial assets	8	70.0	70.0
		6,804.6	6,598.1
Total Assets		6,942.9	6,696.6
Current Liabilities
Payables	9	129.4	160.6
Interest bearing liabilities	10	515.0	356.0
Provisions	11	103.3	101.4
		747.7	618.0
Non-current Liabilities
Interest bearing liabilities	12	1,080.0	1,005.0
		1,080.0	1,005.0
Total Liabilities		1,827.7	1,623.0
Net Assets		5,115.2	5,073.6
Equity
Contributed equity	13	4,400.8	4,400.8
Asset revaluation reserve	15	709.8	672.1
Undistributed income		4.6	0.7
Total Equity	16	5,115.2	5,073.6

Statement of Cash Flows Half-Year ended 30 June 2003

			Consolidated
	Note	30 Jun 2003 \$m	30 Jun 2002 \$m
Cash flows from operating activities
Cash receipts in the course of operations		292.5	281.2
Cash payments in the course of operations		(97.2)	(96.7)
Interest received		3.2	8.4
Distributions received from associates		29.2	27.9
		227.7	220.8
Borrowing costs		(43.3)	(32.6)
Net cash inflow from operating activities	17	184.4	188.2
Cash flows from investing activities
Payments for property investments		(173.6)	(179.3)
Investment in units in listed property trust		(41.2)
Net cash outflow from investing activities		(214.8)	(179.3)
Cash flows from financing activities		159.0
Net Short Term Notes (repaid)/issued			(250.0)
Commercial Bill Facilities (repaid)/issued Net Medium Term Notes issued		75.0	(173.0) 510.0
Distributions paid		(202.8)	(96.2)
Net cash inflow/(outflow) from financing activities		31.2	(9.2)
Net decrease in cash		0.8	(0.3)
Cash at the beginning of the reporting period		45.6	69.0
Cash at the end of the reporting	17	46.4	68.7
Non-cash financing and investing activities	17	0.0	91.7

Notes to Financial Statements Half-Year ended 30 June 2003

Summary of accounting policies 4.

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the Annual Report for the year ended 31 December 2002 and any public announcements made in respect of General Property Trust during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

(a) Basis of preparation

This general purpose financial report for the interim half year ended 30 June 2003 has been prepared in accordance with the Trust Constitution, Accounting Standard AASB 1029: Interim Financial Reporting, other mandatory professional reporting requirements (Urgent Issues Group Consensus Views), other authoritative pronouncements of the Australian Accounting Standards Board, and the Corporations Act 2001. It is prepared on the basis of the going concern and historical cost conventions and has not been adjusted to take account of either changes in the general purchasing power of the dollar or changes in the values of specific assets, except to the extent that General Property Trust property investments have been revalued. The accounting policies adopted are consistent with those of the previous period unless otherwise specified. Comparative information has been reclassified where appropriate to enhance comparability.

(b) Principles of consolidation

The consolidated Financial Statements incorporate all the assets, liabilities and net operating results of the controlled entities. General Property Trust ('GPT') and its controlled entities together are referred to in this Financial Report as the Trust. The effects of all transactions between controlled entities in the Trust have been eliminated in full.

Certain property investments are held via ioint ownership arrangements (refer Note 24). These joint ownership arrangements include the ownership of units in single purpose unlisted trusts over which GPT exercises significant influence but does not control ('Associates').

The Trust has adopted the equity method of accounting for its property investments held via Associates in accordance with Accounting Standard AASB 1016: Accounting for Investments in Associates. The Responsible Entity believes that including this information in the Trust Investment Properties note (Note 6) appropriately reflects the nature and substance of the Trust's operations.

(c) Accounting for acquisitions

On the acquisition of property trusts, the fair value of the consideration is compared with the fair value of the assets acquired. Any discount or goodwill arising on acquisition is accounted for in accordance with AASB 1013: Accounting for Goodwill.

(d) Investment properties

The Trust Compliance Plan requires that all Trust property investments be valued at intervals of not more than three years and that such valuations be reflected in the Financial Report of the Trust. It is the policy of the Responsible Entity to review the carrying value of each property every six months. Independent valuations of the individual investments are carried out each three years in accordance with the Corporations Act 2001 and the Trust Constitution, or earlier where the Responsible Entity believes there may be a material change in the carrying value of the property.

A revaluation increment is credited directly to the asset revaluation reserve, unless it is reversing a previous decrement charged as an expense in the Statement of Financial Performance in respect of that same class of assets, in which case the increment is credited to the Statement of Financial Performance

A revaluation decrement is recognised as an expense in the Statement of Financial Performance, unless it is reversing a revaluation increment previously credited to, and still included in the balance of, the asset revaluation reserve in respect of that same class of assets, in which case it is debited directly to the asset revaluation reserve.

Some property investments are held through the ownership of units in single purpose unlisted trusts where GPT exerts significant influence but does not have a controlling interest. The Trust has adopted the equity method for these Associates (refer Note 1(b)). The property and other property related net assets of the Associates have been disclosed separately in Note 6.

Interests held by GPT in controlled trusts and associated trusts are brought to account at valuation based on the net tangible asset backing at the end of each quarter.

Land and buildings have the function of an investment and are regarded as a composite asset. The applicable Accounting Standards do not require that investment properties be depreciated. Accordingly, the buildings and any component thereof (including plant and equipment) are not depreciated.

Expenses capitalised to properties may include the cost of acquisition, additions, refurbishments, redevelopments, borrowing costs and fees incurred

Summary of accounting policies (Continued) $\blacktriangleleft$

(e) Financial instruments

Bank bill and money market investments are reported at historic cost. As it is the intention to hold these instruments to maturity they are not revalued to market. Interest accrued at balance date is included in the accounts as a receivable. Interest rate swaps may be entered into to protect the Trust from variable interest rates. These transactions are accounted for on an accruals basis over the life of the facility that they are hedging. The Trust has classified as current liabilities short term note borrowings and medium term notes expiring within one year, notwithstanding that the Trust may hedge the interest rate exposure beyond one year and the fact that the Trust maintains stand-by facilities to provide liquidity backup for the short term/medium term note programme as described in Note 20.

(f) Revenue

Revenue from rents and interest is brought to account on an accruats basis. Revenue not received at balance date is included in the accounts as a receivable. The Trust's proportionate share of net operating results of Associates is included in the net income available for distribution when earned. Such income has been separately disclosed in the Statement of Financial Performance.

(g) Expenditure

Expenditure, including rates, taxes, interest and other outgoings is brought to account on an accruals basis.

(h) Income tax

Under current tax legislation the Trust is not liable for income tax, provided its taxable income and taxable realised gains are fully distributed to Unitholders each vear.

(i) Cash flows

For the purposes of the Statement of Cash Flows, cash includes cash at bank, deposits at call and short term money market securities which are readily converted into cash.

(j) Rounding

The Financial Report of the Trust has been prepared in accordance with Class Order 98/0100 issued by the Australian Securities & Investments Commission, relating to the 'rounding off' of amounts in the Financial Report to the nearest tenth of a million dollars, unless otherwise stated. Amounts have been rounded off in the Financial Report in accordance with that Class Order.

	Consolidated
	30 Jun 2003	30 Jun 2002
	\$m	$\mathbf{Sm}$
2. Distributions
In respect of the six months ended 30 June 2003
Distribution of 5.2 cents per unit paid on 23 May 2003
(22 May 2002: 5.0 cents)	101.4	94.5
Distribution of 5.3 cents per unit to be paid on 25 Aug 2003
(21 Aug 2002: 5.1 cents)	103.3	97.3
Distribution for the six months ended 30 June 2003
10.5 cents per unit (30 Jun 2002: 10.1 cents)	204.7	191.8
Undistributed income at 30 June	4.6	1.2
	\$'000	\$'000
3. Expenses
Expenses have been arrived at after charging the following items:
Auditors' remuneration:
Auditing the financial report	282.3	248.4
Other audit related work	60.2	71.0
Total audit and audit related work	342.5	319.4
Other assurance services	73.7
Total auditors' remuneration	416.2	319.4
Other assurance services in 2003 includes due diligence reviews on acquisitions completed and considered.
Responsible Entity's fee	12,562.4	16,622.4

From 1 January 2003, the base management fee payable by GPT has been reduced from 0.55% to 0.40% per annum of gross assets and a performance component has been introduced. The performance component, if applicable, is 5% of GPT's outperformance compared to the S&P/ASX Property 200 Accumulation Index. The total fee payable each six months is capped at 0.275% of the gross assets of the Trust. Based on GPT's performance for the six months to 30 June 2003, there is no performance fee payable in respect of the six months to 30 June 2003.

	Consolidated
	30 Jun 2003	31 Dec 2002
	\$m	\$m
4. Receivables
Trade debtors	21.1	24.3
Provision for doubtful debts	(1.2)	(1.2)
	19.9	23.1
Distributions receivable from associates	4.1	3.1
Other debtors	58.1	13.5
	82.1	39.7

Other debtors includes \$41.2 million due from the disposal of units in a listed property trust.

5. Other current assets

6.

Prepayments	9.8	13.2
Investment properties
Retail	3,407.4	3,265.9
Office	2,595.8	2,550.8
Hotel and Tourism	518.0	507.3
Industrial	213.4	204.1
	6,734.6	6,528.1

The mixed class of assets has been allocated in the table above as follows:

Melbourne Central : 45% Retail (\$237.0 m) and 55% Office (\$286.9 m) (Dec 2002: 42% Retail and 58% Office) Due to the departure of Daimaru and anticipated redevelopment of Melbourne Central, the allocation of the current value has been reviewed.

Brisbane Transit Centre: 83% Office and 17% Hotel and Tourism

		Half-Year
	30 Jun 2003 \$m	31 Dec 2002 \$m
Reconciliation
Reconciliations of the carrying amounts of investment properties at the beginning and end of the current and previous financial year are set out below.
Carrying amount at start of the reporting period	6.528.1	6.151.1
Additions	168.8	575.6
Disposals	٠	(193.0)
Net increase/(decrease) in revaluation of investment	37.7	(5.6)
Carrying amount at end of the reporting period	6,734.6	6.528.1

6. Investment properties (Continued)

Name	Ownership %(1)	Acquisition Date	Acquisition Price \$m	Total Cost including Additions Sm.	Date of Latest Valuation	Independent Valuer	Latest Independent Valuation \$m	Additions Since Valuation \$m	Book Value 30 Jun 2003 \$m (5)
RETAIL
Casuarina Square NT	100	Oct 1973	4.5	141.5	Sep 2002	Knight Frank KL Goddard, FAPI	264.0	0.5	264.5
Charlestown Square NSW	100	Dec 1977	7.3	175.7	Mar 2001	Knight Frank KL Goddard, FAPI	270.0	3.1	273.1
Pacific Highway, Charlestown NSW	100	Oct 2002	7.1	7.1				J.	7.1
Dandenong Plaza VIC	100	Dec 1993 Dec 1999	60.2 60.3	190.7 60.3	Sep 2002	JLL Advisory BF Sweeney, AAPI	203.0	÷,	203.0
Erina Fair NSW	33.3. Freehold 16.7, Units in Trust	Jun 1992	55.1	219.2	Sep 2002	JLL Advisory JE Burdekin, FAPI	224.7	50.1	184.2 90.6 274.8	(3)
Penrith Plaza NSW	100	Jun 1971 Oct 2002	16.7 362.9	398.9	Sep 2001	Knight Frank KL Goddard, FAPI	96.4 (2)	370.3 Refer Notes 6 and 8	466.7
Borec House NSW	100	Jul 2002	10.6	10.7					10.7
Penrith Cinemas NSW	100	Apr 1998	17.4	17.5	Sep 2001	Knight Frank KL Goddard, FAPI	19.0	J.	19.0
High Street, Penrith NSW	100	Nov 2002 Jan 2003	5.2 0.8	6.0				ä,	6.0
Riley Square NSW	100	Jun 1994	11.6	17.1	Sep 2001	Knight Frank KL Goddard, FAPI	15.0	÷,	15.0
Sunshine Plaza QLD	50 Freehold, JVIA	Dec 1992	32.8	49.9	Sep 2002	FPDSavills (NSW) A Johnston, AAPi	73.8 (2)	3.5	77.3
Plaza Parade QLD	50	Jun 1999	4.7	11.7	Sep 2002	FPDSavills (NSW) A Johnston, AAPi	9.8	0.3	10.1
Horton Parade QLD	50 Units in Trust	Jun 1998	3.8	7.4	Sep 2002	FPDSavills (NSW) A Johnston, AAPI	6.8	0.2	7.0	(3)
Maroochydore Superstore Plaza QLD		Feb 1999	5.5	5.5 12.9	Sep 2002	FPDSavills (NSW) A Johnston, AAPI	6.0		6.0 13.0 0.3	(3) (3)
Woden Plaza ACT	100 Leasehold	Feb 1986	74.8	244.9	Mar 2003	Knight Frank KL Goddard, FAPI	375.0	0.4	375.4
Bonner House ACT	100 Leasehold	Oct 2001	9.1	9.3	Mar 2003	Knight Frank KL Goddard, FAPI	11.0	1.7	11.0
General Property Trust									2,027.0
Carlingford Court NSW	100	Jul 1996	80.1	135.1	Mar 2002	Knight Frank KL Goddard, FAPI	133.0	0.7	133.7
Chirnside Park VIC	100	Jul 1996	80.5	136.0	Mar 2003	JLL Advisory BF Sweeney, AAPI CB Richard Ellis	132.0	÷,	132.0
Wollongong Central NSW Floreat Forum	100 100	Jul 1996 Oct 1998 Jul 1996	54.0 34.8 33.3	108.8 85.7	Mar 2001 Jun 2002	NF Proudlove, AAPI FPDSavills	130.0 72.4	6.6 21.9	136.6 94.3
WA	100	Jul 1996	27.0	33.7	Sep 2001	AD Johnston, AAPi Knight Frank	39.0	4.2	43.2
Forestway Shopping Centre NSW Macarthur Square	50	Dec 1999	135.0	140.2		KL Goddard, FAPI Mar 2003 FPDSavills	151.0	0.9	151.9
NSW Parkmore Shopping Centre	100	Jul 1996	120.0	130.0	Mar 2001	AD Johnston, AAPI JLL Advisory	95.0	5.8	100.8
VIC Aspley Homemaker Centre	100	Nov 2001	43.2	43.7	Jun 2002	B Sweeney, AAPI JLL Capital Markets	43.5	0.4	43.9
QLD Banksfown Homemaker	100	Nov 2001	38.2	38.5	Jun 2002	WR Wiemann, AAPI FPDSavills	39.0	$\overline{\phantom{a}}$	39.0
Centre, NSW Cannon Hill Homemaker	100	(4) Nov 2001	0.3 13.9	13.9	Jun 2002	AD Johnston, AAPi Knight Frank	14.0	$\overline{\phantom{a}}$	14.0
Centre, QLD Castle Hill Homemaker	100	Nov 2001	25.4	34.8	Mar 2002	IL Gregory, AAPI WK Wolton	26.5	9.4	35.9
Centre, NSW Fortitude Valley Homemaker	100	Jan-03 Dec 2001	8.7 7.2	31.1		W Wolton, FAPI		÷,	31.1
Centre, QLD

(1) Freehold, unless otherwise stated.

(2) Present value of termination right and land at latest valuation.
(2) Present value of termination right and land at latest valuation.
(3) Share of Associate's property assets. The value of the Trust's interest in the A

(4) Acquisition costs.

(5) Properties that have been independently valued in the last twelve months are carried at that valuation, except where capital expenditure has been incurred

(5) Properties that have been independ

JVIA = Joint Venture Investment Amangement

The basis of valuation of investment properties is fair value being the amounts for which the assets could be exchanged between willing parties in an arm's length transaction.

6. Investment properties (Continued)

Name	Ownership 8(1)	Acquisition Date	Acquisition Price \$m	Total Cost including Additions Sm	Date of Latest Valuation	Independent Valuer	Latest Independent Valuation \$เท	Additions Since Valuation \$m	Book Value 30 Jun 2003 \$m (5)
RETAIL (Continued)
Jindalee Homemaker Centre	100	Nov 2001	38.7	39.3	Mar 2002	Knight Frank	40.0	0.6	40.6
QLD Maribyrnong Homemaker	100	Nov 2001	35.5	35.5	Jun 2002	IL Gregory, AAPI FPDSavills	38.5	÷,	38.5
Centre, VIC Moorabbin Homemaker	100	Jul 2002	33.3	33.3		CD Mason, AAPI	$\overline{a}$	÷,	33.3
Centre, VIC
Mt Gravatt Homemaker	100	Nov 2001	17.9	17.9	Mar 2002	JLL Capital Markets	19.4	$\overline{a}$	19.4
Centre, QLD						WR Wiemann, AAPI
IKEA Building, Prospect NSW	100	Nov 2001	6.9	6.9	Mar 2002	WK Wotton W Wolton, FAPI	6.0	÷,	6.0
Springwood Homemaker Centre, QLD	100	Nov 2001	15.7	15.7	Mar 2002	JLL Capital Markets WR Wiemann, AAPI	16.0	×.	16.0
IKEA Homemaker Centre	100	Nov 2001	10.5	10.5	Jun 2002	JLL Capital Markets	12.6	$\overline{\phantom{a}}$	12.6
Underwood, QLD						WR Wiemann, AAPI
Windsor Homemaker Centre QLD	100	Nov 2001	20.0	20.1	Jun 2002	JLL Capital Markets CJ Chatwood, AAPI	20.5	0.1	20.6
GEM Retail Property Trust									1,143.4
Total Retail									3,170.4
OFFICE
2 Park Street NSW	50 Units in Trusts	Jul 2001 Dec 2001	51.2 212.4	268.4
		$\langle 4 \rangle$	0.8
				268.4					269.2 (2) (0.8) (3)
Australia Square	50	Sep 1981	42.5	130.7	Jun 2002	Colliers International	176.2	1.2	177.4
NSW						W Doherty, AAPi
MLC Centre NSW	50	Apr 1987	233.5	311.5	Mar 2001	CB Richard Ellis (N2) S Fairfax, AAPI	298.5	7.2	305.7
Riverside Centre	100	Apr 1984	250.7	294.4	Sep 2002	CB Richard Ellis (C)	245.0	5.0	246.0
QLD						J Porter, FAPI
Black Ink House QLD	100	Apr 1984	9.1	15.5	Sep 2002	CB Richard Ellis (C) J Porter, FAPI	14.4		14.4
General Property Trust									1,011.9
Tattersalls Building	100	Sep 1998	59.4	61.5	Oct 2000	Arthur Andersen	68.8	3.7	70.5
NSW						P Dempsey, FAPI
10 & 12 Mort Street ACT	100 Leasehold	Jul 1996	58.6	59.9	Mar 2001	Arthur Andersen P Dempsey, FAPI	50.7	0.3	51.0
530 Collins Street &	100	Jul 1996	310.0	318.8	Sep 2000	JLL Advisory	315.6	7.2	322.8
120 King Street МC						GR Longden, AAPI
580 George Street NSW	100	Jul 1996	180.0	210.9	Mar 2001	Arthur Andersen P Dempsey, FAPI	214.0	7.6	221.6
Darling Park Complex	50	Jun 2000	289.1	461.7
NSW	Units in Trusts	Mar 2001	100.0
		(4)	12.0
				461.7	Apr 2003	Colliers International D Hillier, AAP1	465.0	0.1	465.1 (2) (3) (1.7)
The National, Building 1 Victoria Harbour, VIC	100	Feb 2002	7.4	94.3			$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	94.3
The National, Building 2	100	Feb 2002	6.3	31.0		$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	31.0
Victoria Harbour, VIC GEM Commercial Property Trust									1,254.6
Total Office									2,266.5

(1) Freehold, unless otherwise stated.

(2) Share of Associate's property assets. The value of the Trust's interest in the Associate's property assets is included in the valuation.

(3) Share of Associate's other property related net assets/(iabilities) which have been included as property (refer Note 1(b)).

(4) Acquisition costs.

(5) Properties that have been independently valued in the last twelve months are carried at that valuation, except where capital expenditure has been incurred

subsequent to valuation. Properties on which such capital expenditure has been incurred and properties which have not been independently valued in the last twelve months are carried at Directors' valuation

The basis of valuation of investment properties is fair value being the amounts for which the assets could be exchanged between willing parties in an arm's length transaction.

6. Investment properties (Continued)

Name	Ownership 图 26	Acquisition Date	Acquisition Price \$m	Total Cost including Additions Sm	Date of Latest Valuation	Independent Valuer	Latest Independent Valuation \$m	Additions Since Valuation \$m	Book Value 30 Jun 2003 \$m $\langle \mathcal{G} \rangle$
MIXED
Brisbane Transit Centre	50
QLD	Units in Trust	Nov 1997	42.6	46.6	Dec 2002	Knight Frank			50.4	(2)
	Shares in Company	Nov 1997	0.7	0.7		PR Willington, FAPI			0.7
				47.3			51.0	0.1	51.1
Melbourne Central	100
VIC		May 1999	410.2
		Mar 2001	17.1
		(5)	3.5
			430.8	497.2	Sep 2001	Knight Frank JA Perillo, AAPI	465.0	58.9	523.9
Total Mixed									575.0
INDUSTRIAL
Harvey Road	100	May 1999	24.9	24.9	Mar 2002	JLL Capital Markets	24.9	÷,	24.9
Kings Park NSW						RJ Ewing, AAPI
Part Citi-West Industrial Park	100	Aug 1994	60.0	63.2	Mar 2003	FPDSavills	55.3	0.6	55.9
Grieve Pde & Dohertys Road						R Bowman, AAPI
Altona North VIC
Quad 1, Parkview Drive	100	Jun 2001	15.5	15.5	$\sim$	٠	$\overline{\phantom{a}}$	$\sim$	15.5
Homebush Bay NSW	Leasehold
Quad 2, Parkview Drive	100	Dec 2001	2.3	5.3			$\overline{a}$	10.5	15.8
Homebush Bay NSW	Leasehold
Quad 3, Parkview Drive	100	Mar 2003	2.7	0.3			$\overline{a}$	0.3	3.0 1	(20)
Homebush Bay NSW Samsung	Leasehold 100		16.1	16.1			L,	ä,	16.1
Homebush Bay NSW	Leasehold	May 2002
11 Grand Ave, Camellia	100	May 1998	9.9	53.4	Dec 2000	Knight Frank	15.5	37.9	53.4
Camellia NSW						WR Retallick, FAPI
15 Berry Street	100	Nov 2000	10.0	10.0		$\sim$	÷,	$\overline{\phantom{a}}$	10.0
Granville NSW
19 Berry Street Granville NSW	100	Dec 2000	18.8	18.8			÷,	÷,	18.8
General Property Trust									213.4
Total Industrial									213.4
HOTEL & TOURISM
Ayers Rock Resort	100	Dec 1997	231.9	340.5	Sep 2001	JLL Hofels			336.1
NT	Part leasehold					MA Cooper, AAPI
									7.0	(3)
							290.0	53.1	343.1
									11.9	(4)
Cape Tribulation QLD	100 Part leasehold	Mar 2002	11.5	16.7	÷,	$\overline{\phantom{a}}$	÷,	ä,	16.7
Wildman River	100	Jun 2001	0.5	0.8	$\overline{a}$	$\overline{\phantom{a}}$	$\overline{a}$	$\overline{a}$	0.8
NT	Part leasehold
Four Points Hotel, Sydney	100	May 2000	146.1	162.6	Mar 2002	Colliers International	136.0	5.5	$*41.5$
NSW	Leasehoid					R Molntosh, FAPI
	Security Deposit								(7.0) 134.5	(6)
161 Sussex St Pty Limited	Loan								2.8	$\langle \overline{z} \rangle$
	40								(0.5)	(8)
	Refer Note 6
Total Hotel & Tourism									509.3
Total Investment Properties									6,734.6

(1) Freehold, unless otherwise stated.

(2) Share of Associate's property assets. The value of the Trust's interest in the Associate's property assets is included in the valuation.

(3) Represents foan to Voyages Hotels & Resorts Pty Limited for the purchase of plant and equipment.

(4) Represents foan to Voyages Hotels & Resorts Pty Limited of \$6.9 million for the purchase of a 46% interest in Kings Canyon Resort and \$5.0 million for working capital.

(5) Acquisition costs.

(6) Security deposit held by GPT.

(7) Loan to 161 Sussex Street for purchase of business assets. Undrawn finance facilities of 161 Sussex Street at balance date total \$1.2 million (GPT share).

(8) Share of 161 Sussex Street property related net assets which have been included as property (refer Note 1(b)).

(9) Properties that have been independently valued in the last twelve months are carried at that valuation, except where capital expenditure has been incurred subsequent to valuation. Properties on which such capital expenditure has been incurred and properties which have not been independently valued in the last (welve months are carried at Directors' valuation.

(10) Leasehold life expected to issue in July 2003.

The basis of valuation of investment properties is fair value being the amounts for which the assets could be exchanged between willing parties in an arm's length transaction.

Consolidated - Half-Year
30 Jun 2003	31 Dec 2002
\$m	\$m

6. Investment properties (Continued)

Additions to existing investments

During the half-year ended 30 June 2003 the following additions were made to existing property investments:

Retail	52.9	70.1
Office	48.3	54.7
Mixed	36.2	8.8
Industrial	8.5	4.6
Hotel & Tourism	10.7	15.4
	156.6	153.6

Additions to property include capitalised interest on redevelopment of \$6.3 million using an interest rate of 6.77% (Half-year Dec 2002: \$6.3 million using 6.80%).

Avers Rock Resort

A number of projects were completed at the Resort this year. These included: the upgrade and expansion of the Resort's commercial laundry at a cost of \$6.7 million, the upgrade of the water and sewerage infrastruture at a cost of \$2.4 million. Sails in the Desert kitchen refurbishment at a cost of \$1.4 million and Winkiku Restaurant refurbishment at a cost of \$0.6 million. In addition, a \$1.7 million upgrade of the Outback Pioneer Hotel bathrooms is underway and will be completed in July 2003.

Australia Square

Work has commenced on a \$11.0 million (GPT's share \$5.5 million) upgrade of the public spaces and the Plaza Building. The works are forecast to complete in early 2004 to enhance the leasing campaign for the ex Lend Lease space.

Cape Tribulation

The resort's refurbishment and infrastructure upgrade was completed in May 2003 at a cost of approximately \$6.0 million.

Chirnside Park

The \$3.5 million foodhall remix which involved replacing Franklins with Aldi and associated specialty remixing was completed in May 2003.

Docklands NAB Campus, Melbourne

In February 2002, GPT acquired the site upon which the new National Australia Bank ('NAB') 56,000 sq m office development in Docklands. Melbourne is being constructed. This development will be delivered in two stages with completion in late 2003 and mid 2004 respectively. GPT paid \$13.7 million for the site including acquisition costs. The cost of the development, after enhancements agreed with the NAB, is forecast to be approximately \$242 million. GPT has executed an Agreement for Lease with NAB and executed a Development Agreement with Lend Lease Development. Costs of \$125.3 million has been expended to June 2003.

Erina

Construction commenced in January 2002 on the expansion of Erina Fair. The total development cost is \$210.0 million (GPT's share \$105.0 million) with forecast completion late 2003. Work to the value of \$165.4 million (GPT's share \$82.7 million) has been completed to June 2003.

Floreat Forum

Construction commenced in August 2001 on the \$46.0 million redevelopment. Stage 1, which includes the expansion of two supermarkets, specialty remixing and centre refurbishment, and additional carparking was completed in December 2002. Stage 2, which incorporates the Town Square precinct is scheduled to be completed in August 2003.

Forestway

Construction has commenced on the \$5.0 million centre upgrade which includes expanding Woolworths, introducing Franklins, and associated specialty remixing. The project is programmed for completion in late 2003.

Four Points Hotel, Sydney

The hotel's refurbishment will be complete in July 2003. A new PABX will be installed by September 2003 at a cost of approximately \$0.6 million.

Melbourne Central

Daimaru vacated the centre in July 2002. Under the terms of the early lease cessation, the Trust received a cash sum equivalent to five years gross rent. Of the early termination payment \$2.9 million has been recognised during the period to December 2002 and \$7.3 million to June 2003. Construction commenced in November 2002 with the total development cost being \$226.5 million and forecast completion late 2004. Costs to the value of \$55.8 million have been expended to June 2003.

In addition, work has commenced on the upgrade of the office tower lobby. As at 30 June 2003, \$0.5 million of a \$5.5 million total cost has been expended.

11 Grand Ave. Camellia

Work commenced on \$9.7 million Stage 2 of this development in January 2003. An agreement to lease has been signed with Cassons over 5.430 som of the 12,000 som development.

6. Investment properties (Continued)

Sunshine Plaza

The \$40.0 million (GPT's share \$20.0 million) Plaza Parade and Riverwalk development which incorporates a new supermarket, additional cinemas and a restaurant precinct was completed in December 2002.

Masterplanning

Works are continuing on the masterplans of a number of centres including Penrith Plaza. Macarthur Square. Charlestown Square and Wollongong Central

Purchase of Investments

High Street, Penrith

GPT acquired 557 High Street, Penrith (shop 6), opposite Penrith Plaza, for \$0.8 million including acquisition costs in January 2003.

Telstra land, Castle Hill

GPT acquired a site adjoining the Castle Hill Homemaker Centre for \$8.7 million including acquisition costs in January 2003.

The Quad, Parkview Drive, Homebush Bay

The right to acquire The Quad 3 leasehold title was acquired in March 2003. The leasehold title is expected to issue to GPT in July 2003. Construction of the Quad 3 building is anticipated to commence in the 6 months to December 2003.

Joint venture investment arrangements

Penrith Plaza

During the period all outstanding matters in relation to the Joint Venture Investment Arrangement ('JVIA') were finalised. Penrith Plaza freehold is now owned unencumbered.

Sunshina Plaza

GPT and Australian Prime Property Fund Retail ('APPFR') entered into a JVIA with the Commonwealth Bank of Australia ('CBA') in 1994. Under the terms of the JVIA:

• (a) A ground lease has been granted to the CBA for land owned by GPT and APPFR.
• (b) GPT and APPFR make deposits with the CBA and receive a return on those deposits based on the income of the Centre. These deposits are repayable in 2006 or on termination of the ground lease or at its expiry.
• (c) GPT has a right to terminate the ground lease each year over a five year period commencing June 2002. However, each party must agree to the termination if exercised in 2002 or 2003. When the right is exercised a payment is made to CBA under a formula based on the valuation of the Centre at development completion (\$284 million) and termination date and the CBA will refund the deposits made by GPT. GPT's obligations in the JVIA are limited to its 50 percent share.

Other information

Ayers Rock Resort

The property is owned by GPT. The hotel businesses are owned and operated by Voyages Hotels & Resorts Pty Limited, which is wholly owned by GPT Hotel Management Pty Limited. GPT has leased the resort to Voyages Hotels & Resorts Pty Limited. GPT Hotel Management Pty Limited is a company with A and B Class shares. The A Class shares of GPT Hotel Management Pty Limited carry only voting rights and they are owned by GPT Operating Company Trust on behalf of the unitholders of GPT. The B Class shares of GPT Hotel Management Pty Limited are owned by GPT and carry the income entitlement.

Cape Tribulation

These properties are owned by GPT and leased to Voyages Hotel & Resorts Pty Limited.

Four Points Hotel

The property is owned by GPT. GPT also has a 40% interest in an associated company. 161 Sussex Street Pty Limited ('the Company') which leases and operates the hotel. Starwood Pacific Hotels Pty Limited ('Starwood'), a wholly owned subsidiary of Starwood Hotels and Resorts Worldwide Inc. owns the remaining 60% interest.

In May 2000, the Company leased the hotel from GPT for ten years, with the Company having an option to extend the lease for a further term of five years. After May 2005 the lease may be terminated by GPT if the hotel is sold. The Company has provided a security deposit of \$7.0 million.

At the time of acquisition, GPT provided \$4.0 million by way of loan to the Company to fund its purchase of business assets, the payment of the security deposit and initial working capital requirements. In December 2001, GPT invested an additional \$1.6 million in the Company. The Company also repaid \$1.2 million of GPT's loan, hence the loan balance at June 2003 is \$2.8 million. During the year GPT invested an additional \$1.0 million in the Company.

General Property Trust and its Controlled Entities

Notes to Financial Statements

		Consolidated
	30 Jun 2003 \$m	31 Dec 2002 $\mathfrak{sm}$
7. Commitments
(a) Capital expenditure
At balance date capital expenditure approved but not provided for in the
Financial Report:
Directly held investment properties
Australia Square	6.1
Casuarina Square	0.8	1.4
Charlestown Square	2.2
Erina MLC Centre	14.9 4.4	36.3
Riverside Centre		6.1 3.7
	0.9 2.0
11 Grand Avenue, Camellia Woden	0.1	2.6
	0.5	4.8
Other properties Unlisted controlled entities
580 George St	2.6
530 Collins St	1.0	1.2
Avers Rock Resort	5.5	12.1
Cape Tribulation	$\blacksquare$	5.8
Chirnside	0.1	1.3
Docklands NAB Campus	116.7	160.8
Four Points Hotel	1.0	3.2
Floreat Forum	0.2	15.1
Forestway	5.2
Jindalee Homemaker	0.8
Melbourne Central	170.7	219.4
Parkmore	1.2	1.2
Wollongong Central	0.6	0.1
Other properties	2.2	1.5
Investments in associates
Darling Park	1.5	2.4
Erina Property Trust	7.4	18.1
Roma Street Trust	0.3	$\blacksquare$
	348.9	497.1
Due within 1 year	263.4	379.7
Due between 1 and 5 years	85.5	117.4
	348.9	497.1

(b) Investments

At balance date deposit commitments existed in respect of interests in Joint Venture Investment
Arrangements contracted but not provided for in the Financial Report (refer Notes 6 and 8):

	Sunshina Plaza

------------------- Due within 1 year	4.	4.
Due between 1 and 5 years	13.8	13.8
	18.5	18.5

(c) Operating leases

Estimated aggregate amount of operating lease expenditure agreed or contracted but not provided for
in the Financial Report:
Due within 1 year	0.2	0.2
Due between 1 and 5 years	0.9	o s
Due between 5 years and expiry date of leases	2.5	2.6
	3.6	3.7

	Consolidated
	30 Jun 2003 \$m	31 Dec 2002 \$m
8. Other financial assets
Deposits
Deposits at cost - Sunshine Plaza	70.0 70.0	70.0 70.0
Reconciliation Reconciliations of the carrying amounts of other financial assets at the beginning and end of the current and previous reporting period are set out below.
Carrying amount at start of the reporting period	70.0	305.9
Additions - Sunshine Plaza Refunds - Penrith Plaza		4.9 (240.8)
Carrying amount at end of the reporting period	70.0	70.0
Arrangement ('JVIA') in October 2002, which also resulted in an increase in Investment Properties (refer Note
9. Payables - Current
Trade creditors	117.8	146.1
Creditors - other	3.1	3.8
- related party	2.2	2.0
Responsible Entity's fee	6.3 129.4	8.7 160.6
10. Interest bearing liabilities - Current
Short and Medium Term Notes (refer Note 1(e) and Note 20)	515.0 515.0	356.0 356.0
11. Provisions
Distributions payable	103.3	101.4
12. Interest bearing liabilities - Non-current
Medium Term Notes (refer Note 1(e) and Note 20) CPI Coupon Indexed Bonds	955.0 125.0	880.0 125.0

	Consolidated
	30 Jun 2003	31 Dec 2002
	\$m	\$m
13. Contributed equity
1,949,716,610 (Dec 2002: 1,949,716,610) units	4,400.8	4.400.8
	4,400.8	4,400.8
No additional units have been issued in the six months to June 2003
	30 Jun 2003 \$m	30 Jun 2002 \$m
14. Equity securities issued
Distributions satisfied by the issue of ordinary units under the distribution reinvestment plan		91.7

(a) Distribution reinvestment plan

The Trust operated a distribution reinvestment plan ('DRP') under which holders of ordinary units elected to have all or part of their distribution entitlements satisfied by the issue of new ordinary units rather than being paid in cash. Units were issued under the plan at a 2% discount to the market price. The DRP was terminated and did not apply to the distribution for the December 2002 and March 2003 quarters. The DRP will not apply to the June 2003 quarter.

15. Asset revaluation reserve

Nature and purpose of reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note 1(d). The reserve is predominantly comprised of unrealised gains resulting from the revaluation of the Trust's property investments. The balance, or any part of the balance, standing to the credit of the reserve may be transferred to the Trust's distributions. During the Half-year to December 2002 \$5.6 million of the net loss on sale of investment properties was transferred to distributions.

	Consolidated - Half-Year
	30 Jun 2003	31 Dec 2002
	\$m	\$m
15. Asset revaluation reserve (Continued)
Balance at the beginning of the reporting period	672.1	683.3
Increases/(decreases):
Directly held investment properties
Altona North & Brooklyn	(1.9)
Bonner House	1.7
Casuarina Square		4.6
Dandenong Plaza		0.5
Erina Fair		8.9
Plaza Parade		(1.6)
Riverside Centre		(32.1)
Black Ink House		0.1
Sunshine Plaza		11.4
Woden Plaza	31.0
Reserves attributable to controlled entities
Chirnside Park	10.4
Macarthur Square	4.2
Woolstore, Teneriffe		0.1
Reserves attributable to associates
Brisbane Transit Centre		(1.3)
Darling Park	(7.7)	0.2
Erina Horton Parade/Maroochydore Superstore		4.5 (0.9)
Net increase in valuations	37.7
		(5.6)
Transfer to Distribution:
Net book loss on sale of Bankstown		(5.6)
Net transfer to Distribution	$\,$	(5.6)
Balance at the end of the reporting period	709.8	672.1

	Consolidated 30 Jun 2003	31 Dec 2002
	\$m	\$m
16. Total equity
This represents amounts subscribed for units and options together with total reserves resulting in a net tangible asset backing of \$2.62 (Dec 2002:\$2.60) per unit based on the number of GPT current units.	5,115.2	5,073.6
	Consolidated 30 Jun 2003	30 Jun 2002
	\$m	\$m
17. Notes to the statement of cash flows
(a) Reconciliation of net operating income to net cash provided by operating activities
Net operating income	208.6	192.5
Responsible Entity's fee	(2.4)	0.8
Interest capitalised	(6.3)	(6.3)
Net cash provided by operating activities before
changes in assets and liabilities	199.9	187.0
(Increase)/decrease in receivables Increase/(decrease) in payables	3.0 (18.5)	(0.6) 1.8
Net cash provided by operating activities	184.4	188.2
(b) Reconciliation of Cash Disclosed in Statement of Financial Position as:
Cash	46.4	68.7
(c) Non-cash financing and investing activities
Units issued under the distribution reinvestment plan		91.7
		91.7
	Consolidated 30 Jun 2003	30 Jun 2002
18. Earnings per unit
Basic earnings per unit - (cents) (Net operating income divided by weighted average number of units)	10.7	10.1
Weighted average number of ordinary units on issue during the period used in the calculation of basic earnings per unit - (millions)	1,949.7	1.898.6

		Consolidated - Half-Year
		30 Jun 2003 \$m	30 Jun 2002 \$m
19. Investments in controlled entities and associates
Name of Entity	Interest ℅	Contribution to net operating income
Parent entity
General Property Trust		64.8	56.8
Controlled entities
GPT Hotel Trust	100
Ayers Rock Resort Trust	100	14.4	14.7
GPT Hotel (Darling Harbour) Trust	100	6.2	6.4
GPT Hotel (Hamilton Island) Trust	100
GPT Office Trust	100		2.2
GPT Pty Limited	100
GPT Subsidiary Holding Trust	100
GEM Retail Property Trust	100	29.7	27.8
Homemaker Retail Property Trust	100	15.3	11.7
GEM Commercial Property Trust	100	0.4	1.4
Growth Equities 530 Collins Street Trust	100	12.9	13.3
Growth Equities 580 George Street Trust	100	89	7.9
New Property Investment Trust No. 1	100	2.8	2.8
GEM Allendale Trust	100
GPT Victoria Harbour No 1B Trust	100
GPT Victoria Harbour No 1A Trust	100
GPT Victoria Harbour No 2B Trust	100
GPT Victoria Harbour No 2A Trust	100
Melbourne Central Holdings Pty Ltd	100
Melbourne Central Unit Trust	100	23.0	19.9
Melbourne Central Custodian Pty Ltd	100
GPT Industrial Trust (formerly Wales House Trust)	100
GPT Industrial (Somerton) Trust	100
		113.6	108.1
Associates
Erina Property Trust	50	2.2	2.0
Darling Park Trust	50	9.5	9.4
Darling Park Property Trust	50	7.0	6.9
Horton Trust	50	0.5	0.4
Roma Street Trust	50	2.5	2.3
2 Park Street Trust	50	9.4	7.4
161 Sussex St Pty Limited	40	(0.9)	(0.8)
		30.2	27.6
		208.6	192.5

All equity interests, as described in Note 6, issued by General Property Trust and its controlled entities are ordinary interests.

All associates have a reporting period of 30 June, except for Horton Trust and 161 Sussex St Pty Limited which have a reporting period of 31 December.

	Consolidated - Half-Year
	30 Jun 2003 $\mathsf{sm}$	31 Dec 2002 \$m.
19. Investments in controlled entities and associates (Continued)
Reserves attributable to associates
Balance at the beginning of the reporting period	33.5	30.8
Revaluations during the reporting period	(7.7)	2.7
Balance at the end of the reporting period	25.8	33.5
Movements in carrying amount of investments in associates
Carrying amount of investments at the beginning of the reporting period	882.9	860.2
Net operating income attributable to associates	30.2	31.4
Less: Distributions received/receivable	(30.2)	(31.4)
Issue of equity	10.4	20.0
Share of movements in asset revaluation reserve	(7.7)	2.7
Carrying amount of investments at the end of the reporting period	885.6	882.9
Summary of the financial position of associates
The recognised amounts of aggregate assets and liabilities
of associates are:
Assets	899.9	896.2
Liabilities	(15.3)	(14.3)
Share of net assets of associates	884.6	881.9
Incidental costs on acquisition prior to latest revaluation of associate's asset	1.0	1.0
Carrying amount of investments at the end of the reporting period	885.6	882.9

Share of associates' capital expenditure commitments - refer Note 7

Share of associates' financing facilities - refer Note 6

Consolidated
30 Jun 2003	31 Dec 2002
Sm.	\$m

20. Finance facilities

Bank stand-by facilities

400.0 400.0

The Trust has stand-by facilities of \$400 million (Dec 2002: \$400 million) to provide liquidity backup for the Short Term/Medium Term Note Programme which were not utilised at balance date. \$200 million matures on 30 October 2003 and a further \$200 million matures on 22 November 2003. It is anticipated that it will be possible to extend all facilities.

Short Term Note / Medium Term Note Programme	2.000.0	2,000.0
Maximum amount of Short Term Notes on issue during the reporting period	625.0	548.0
Amount of Short Term Notes outstanding at the end of the reporting period	515.0	356.0
Maximum amount of Medium Term Notes on issue during the reporting period	955.0	1,040.0
Amount of Medium Term Notes outstanding at the end of the reporting period	955.0	880.0

The Short Term/Medium Term Note Programme ('the Programme') is a revolving, non-underwritten, floating rate programme. The Programme provides flexible short term and medium term funding to enable the Trust to fund commitments and to act promptly on investment opportunities. The Programme can be terminated at the discretion of the Trust and is unsecured. The Trust issued \$60 million 2 year callable Medium Term Notes in February 2002 which the Trust called and cancelled in August 2002.

CPI Coupon Indexed Bonds

On 10 December 1999, the Trust issued CPI Coupon Indexed Bonds totalling \$125 million. The securities will expire on 10 December 2029 and have a current coupon of 6.76%. The coupon compounds quarterly at the rate of CPI.

Finance Facilities as at 30 June 2003

						Fixed interest maturing in
	Notes	Total	Non-Interest bearing	Floating interest rate	1 year or less	Over 1 year to 5 years	More than 5 years
		\$m	\$m	\$m	\$m	\$m	\$m
Financial assets
Cash and deposits		46.4	$\overline{a}$	46.4	$\overline{a}$	÷
Receivables	4	82.1	82.1	$\mathbf{v}$	$\mathbf{r}$	$\overline{\phantom{a}}$	۰
		128.5	82.1	46.4	$\overline{r}$	$\overline{\phantom{a}}$
Weighted average interest rate				4.7%
Financial liabilities
Interest bearing liabilities	10, 12	1.595.0		1,195.0		400.0
Trade and other payables	9	129.4	129.4			$\overline{\phantom{a}}$
Interest rate swaps		×		(830.0)	240.0	410.0	180.0
Forward start interest rate swaps		(485.0)	$\overline{r}$		(285.0)	(150.0)	(50.0)
Forward start interest rate swap maturities		485.0	$\overline{a}$	$\bullet\bullet$		185.0	300.0
		1,724.4	129.4	365.0	(45.0)	845.0	430.0
Weighted average interest rate				5.2%	5.6%	6.0%	5.6%
Net financial (liabilities)/assets		(1.595.9)	(47.3)	(318.6)	45.0	(845.0)	(430.0)

Unrealised losses on interest rate swaps totalling \$28.8 million (Dec 2002: \$10.3 million unrealised losses) have not been recognised in the financial statements as it is intended the Trust will retain these swaps to maturity.

The net fair value of all other financial assets and liabilities approximates their carrying value.

20. Finance facilities (Continued)

Finance facilities as at 31 December 2002

						Fixed interest maturing in
	Notes	Total	Non-Interest bearing	Floating interest rate	1 year or less	Over 1 year to 5 years	More than 5 years
		\$m	\$m	\$m	\$m	\$m	\$m
Financial assets
Cash and deposits		45.6		45.6	$\overline{a}$	$\overline{\phantom{a}}$
Receivables	4	39.7	39.7	$\bullet$	$\overline{r}$	$\mathbf{v}$
		85.3	39.7	45.6	$\overline{r}$	$\overline{\phantom{a}}$
Weighted average interest rate				4.4%
Financial liabilities
Interest bearing liabilities	10, 12	1.361.0		961.0		400.0
Trade and other payables	9	160.6	160.6		$\overline{r}$
Interest rate swaps			$\overline{a}$	(730.0)		450.0	280.0
Forward start interest rate swaps		(50.0)	$\tilde{\phantom{a}}$		(50.0)	$\blacksquare$	$\overline{r}$
Forward start interest rate swap maturities		50.0				50.0
		1,521.6	160.6	231.0	(50.0)	900.0	280.0
Weighted average interest rate				5.4%	$\tilde{\phantom{a}}$	5.9%	6.5%
Net financial (liabilities)/assets		(1, 436.3)	(120.9)	(185.4)	50.0	(900.0)	(280.0)

Consolidated
30 Jun 2003	- 30 Jun 2002

23.0%

$6.6\,$

20.3%

$6.9$

Key Financing Measures

Debt to Total Assets Interest Cover Ratio

General Property Trust and its Controlled Entities

Notes to Financial Statements Half-Year ended 30 June 2003

	Retail $s_{\rm m}$	Office $\mathbf{m}$	Industrial s m	Hotel and Tourism $\mathbf{m}$	Consolidated \$m
21. Segment information
Primary reporting - business segments
Half-Year Ended 30 June 03
Total segment revenue Share of net profit of associates Unallocated revenue Revenue from ordinary activities	175.2 2.6	91.2 28.2	10.3	21.7 (0.6)	298.4 30.2 43.5 372.1
Segment result Responsible Entity's fee and other Borrowing costs Net operating income	132.8	97.1	8.6	20.8	259.3 (13.4) (37.3) 208.6
Half-Year Ended 30 June 2002
Total segment revenue Share of net profit of associates Unallocated revenue Revenue from ordinary activities	164.7 2.5	88.7 25.7	6.9	21.9 (0.6)	282.2 27.6 0.9 310.7
Segment result Responsible Entity's fee and other Borrowing costs Net operating income	125.4	92.3	5.7	21.1	244.5 (19.4) (32.6) 192.5

22. Transactions with Lend Lease Group

The Responsible Entity of the Trust is GPT Management Limited, a wholly owned subsidiary of Lend Lease Corporation Limited.

Details of the Responsible Entity's fee are disclosed in Note 3. The Responsible Entity's immediate and ultimate holding company is Lend Lease Corporation Limited.

All dealings between the Trust and Lend Lease Corporation Limited and its controlled entities and related parties ('Lend Lease') are on normal commercial terms and conditions and material dealings are reviewed by the Audit and Risk Management Committee. All contracts are subject to commercial appraisal, on a basis acceptable to the Responsible Entity, by an external valuer or a qualified external party approved by the Responsible Entity.

The following transactions have taken place with the Lend Lease Group during the period:

	Consolidated
	30 Jun 2003 \$m	30 Jun 2002 \$m.
Capital expenditure in relation to contracts for development. refurbishment and upgrades	122.0	84.2
Purchase of property right	0.9
Property management including property maintenance and insurance	13.8	12.3
Rental income from Lend Lease Group	4.1	3.8
Income quaranteed by Lend Lease under development and sale agreements	0.2	0.3
GPT's Share of Associate's Responsible Entity Fee	0.9	0.9

Lend Lease Group companies or trusts managed by a Lend Lease Group company held units in the Trust at 30 June, 2003 as follows:

	30 Jun 2003 Units	31 Dec 2002 Units
GPT Management Ltd as Trustee and Responsible Entity for the GPT Split Trust	22,293,700	22.613.175

23. Matters subsequent to the end of the reporting period

Citiwest Business Park, Altona

In July 2003. GPT acquired a site adjoining it's current site at Altona for \$1.5 million including acquisition costs. A 10 year pre-lease with the Just Jeans Group has been agreed for a 12,200 sqm complex on the new site. Construction is expected to commence in July 2003 at a cost of \$5.3 million.

24. Other information

Commencement date of the Trust

The Trust was constituted on 27 November 1970

Life of the Trust

The life of the Trust is not limited by a term of years. The Trust shall continue whilst the units are listed on the Australian Stock Exchange Limited.

The principal activities of the Trust

General Property Trust was established to provide a vehicle for investors to own a share in a diversified portfolio of Australian property. During the period the Trust principally invested in property investments.

Policies for investments and borrowings by the Trust

The Trust invests in investment grade property to achieve income combined with the opportunity for capital growth for investors over a period of vears. Investments in land and buildings are purchased at independent valuation plus acquisition costs. Investments in refurbishments and upgrades are at cost.

Deposits made under development agreements are at normal commercial money market terms.

Under the terms of the Trust Constitution, the Trust may borrow money unsecured or secured by the investments of the Trust. Trust borrowings at 30 June 2003 totalled \$1,595.0 million which is approximately 23.0% (Dec 2002: 20.3%) of total assets.

Hamilton Island

On 27 June 2003, GPT Management Limited and Voyages Hotels and Resorts Pty Ltd entered into an Implementation Agreement with Hamilton Island Limited in relation to the proposed acquisition of Hamilton Island by GPT and Voyages. The Directors of Hamilton Island Limited, subject to the findings of the Independent Expert, have indicated they intend to recommend that shareholders support the proposal for Voyages to acquire the shares in Hamilton Island Limited at \$2.83 per share, in the absence of a higher bid.

Should this proposal be successful, GPT would acquire the real estate assets of the resort from Voyages. GPT's total investment in the resort is estimated to be approximately \$186 - \$188 million. Completion is estimated to occur in September 2003.

Rouse Hill

On 28 February 2003, Landcom announced that a joint venture between GPT and Lendlease has been named as preferred tenderer to create a new \$1 billion regional centre at Rouse Hill in Sydney's north-west by the NSW Government. This project, which includes a large scale residential, retail and town centre development, is proposed to be undertaken jointly by GPT and Lend Lease's urban communities business in partnership with Planning NSW and Landcom who will retain ownership of the site.

24. Other information (Continued)

Property jointly owned

Retail

Erina Fair is owned 50% by the Trust, through its interest in the property and its 50% interest in Erina Property Trust. The other 50% is owned by Lend Lease Real Estate Investments Limited ('LLREI'), on behalf of the Unitholders in the Australian Prime Property Fund Retail ('APPFR').

Macarthur Square is owned 50% by the Trust. The remaining 50% of Macarthur Square is held by LLREI on behalf of the Unitholders in the APPFR.

The Trust and LLREI have an equal interest in the Sunshine Plaza Joint Venture Investment Arrangement. LLREI holds the interest on behalf of the Unitholders in the APPFR.

Horton Parade and the Maroochydore Superstore Plaza are owned 50% by the Trust through its 50% interest in Horton Trust. The remaining 50% of Horton Trust is held by LLREI on behalf of the Unitholders in the APPFR.

Plaza Parade in Maroochydore is owned 50% by the Trust. The remaining 50% of Plaza Parade is held by LLREI on behalf of the Unitholders in the APPFR.

Office

Australia Square is owned 50% by the Trust. The remaining 50% is owned by Paladin Australia Limited on behalf of the Unitholders in the Deutsche Office Trust.

The Trust has a 50% interest in the Darling Park complex. This interest comprises a 50% interest in the Darling Park Trust which holds a 60% interest in the complex and a 50% interest in Darling Park Property Trust which holds a 40% interest in the complex. An additional 50% interest in the complex is held by AMP funds comprising the remaining 50% interest in the Darling Park Trust owned by AMP Henderson Global Investors Limited on behalf of the Unitholders in the AMP Office Trust, and the remaining 50% interest in Darling Park Property Trust owned by AMP Life Limited on behalf of the AMP Statutory Fund Number 2.

The MLC Centre is owned 50% by the Trust. The remaining 50% is owned by Queensland Investment Corporation.

2 Park Street is owned 50% by the Trust through its 50% interest in the 2 Park Street Trust. The remaining 50% is owned by Macquarie Office Management Limited on behalf of the Unitholders in the Macquarie Office Trust.

Mixed

The Brisbane Transit Centre is owned by the Roma Street Trust. Roma Street Trust and the B class shares of Roma Street Operations Pty Limited are owned 50% by the Trust. The remaining 50% interest in Roma Street Trust is held by Lend Lease Real Estate Investments Limited on behalf of the Unitholders of Australian Prime Property Fund Commercial.

Hotel & Tourism

The Trust owns a 40% interest in 161 Sussex Street Pty Limited. The remaining 60% interest is held by Starwood Pacific Hotels Pty Limited.

Buyback arrangement

As the Trust is listed buy-back arrangements are not required.

Bonus issues

No bonus issues were made during the reporting period.

Directors' Declaration

The directors of the Responsible Entity declare that the financial statements and notes of the Trust set out on pages 1 to 25:

• (a) comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
• (b) give a true and fair view of the Trust's financial position as at 30 June 2003, and of its performance as represented by the results of its operations and its cash flows, for the half-year ended on that date.

In the directors opinion:

Sydney

29 July 2003

• (a) the financial statements and notes are in accordance with the Corporations Act 2001, and
• (b) there are reasonable grounds to believe that the Trust will be able to pay its debts as and when they become due and payable.

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

Richard Longes	Brian Norris
Director	Director
GPT Management Limited

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Independent Audit Report to the Unitholders of General Property Trust

PricewaterhouseCoopers ABN 52 780 433 757

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

Audit opinion

In our opinion, the financial report, set out on pages 1 to 26:

• presents a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the General Property Trust Group (defined below) as at 30 June 2003 and of its performance for the half-year ended on that date.
• is presented in accordance with the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements in Australia, and the Corporations Regulations 2001.

This opinion must be read in conjunction with the following explanation of the scope and summary of our role as auditor.

Scope and summary of our role

The financial report – responsibility and content

The preparation of the financial report for the half-year ended 30 June 2003 is the responsibility of the directors of GPT Management Limited (the 'Responsible Entity'). It includes the financial statements for the General Property Trust Group (the Group) which incorporates General Property Trust and the entities it controlled during the half-year ended 30 June 2003.

The auditor's role and work

We conducted an independent audit of the financial report in order to express an opinion on it, so as to enable the Trust to lodge the financial report with the Australian Securities & Investments Commission. Our role was to conduct the audit in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the financial report is free of material misstatement. Our audit did not involve an analysis of the prudence of business decisions made by the directors or management.

In conducting the audit, we carried out a number of procedures to assess whether in all material respects the financial report presents fairly a view in accordance with the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory professional reporting requirements in Australia, and the Corporations Regulations 2001, which is consistent with our understanding of the Group's financial position, and its performance as represented by the results of its operations and cash flows.

PRICEWATERHOUSE COPERS

The procedures included:

• selecting and examining evidence, on a test basis, to support amounts and disclosures in the financial report. This included testing, as required by auditing standards, certain internal controls, transactions and individual items. We did not examine every item of available evidence
• evaluating the accounting policies applied and significant accounting estimates made by the directors in their preparation of the financial report
• obtaining written confirmation regarding material representations made to us in connection with the audit
• reviewing the overall presentation of information in the financial report.

Our audit opinion was formed on the basis of these procedures.

Independence

As auditor, we are required to be independent of the Group and free of interests which could be incompatible with integrity and objectivity. In respect of this engagement, we followed the independence requirements set out by The Institute of Chartered Accountants in Australia, the Corporations Act 2001 and the Auditing and Assurance Standards Board.

In addition to our statutory audit work, we were engaged to undertake other services for the Group. These services are disclosed in note 3 to the financial statements. In our opinion the provision of these services has not impaired our independence.

PricewaterhouseCoopers

R D Deutsch Partner

Sydney 29 July 2003