MIRVAC GROUP — Interim / Quarterly Report 2014

Feb 19, 2014

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MPT REPORT

INTERIM REPORT

For the half year ended 31 December 2013

• 01 Directors’ report

• 03 Auditor’s independence declaration

• 04 Financial statements

• 04 Consolidated statement of comprehensive income 05 Consolidated statement of financial position

• 06 Consolidated statement of changes in equity 07 Consolidated statement of cash flows 08 Notes to the consolidated financial statements

24 Directors’ declaration

25 Independent auditor’s review report to the unitholders of Mirvac Property Trust

The consolidated entity comprises Mirvac Property Trust (ARSN 086 780 645) and its controlled entities.

This interim 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 financial report for the year ended 30 June 2013 and any public announcements made by Mirvac Property Trust during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

DIRECTORS’ REPORT

The Directors of Mirvac Funds Limited (ABN 70 002 561 640, AFSL 233121), the Responsible Entity of Mirvac Property Trust (“MPT” or “Trust”) present their report, together with the consolidated report of MPT and its controlled entities (“consolidated entity”) for the half year ended 31 December 2013.

MPT and its controlled entities together with Mirvac Limited and its controlled entities form the stapled entity, Mirvac Group (“Mirvac” or “Group”).

RESPONSIBLE ENTITY

The Responsible Entity of the Trust is Mirvac Funds Limited, an entity incorporated in New South Wales. The immediate parent entity of the Responsible Entity is Mirvac Woolloomooloo Pty Limited (ABN 44 001 162 205), incorporated in New South Wales, and its ultimate parent entity is Mirvac Limited (ABN 92 003 280 699), incorporated in New South Wales.

DIRECTORS

The following persons were Directors of Mirvac Funds Limited during the half year and up to the date of this report, unless otherwise stated:

• John Mulcahy

• James MacKenzie (resigned as a Director on 30 January 2014)

• Susan Lloyd-Hurwitz

• Marina Darling (resigned as a Director on 24 January 2014)

• Peter Hawkins

• James Millar AM

• John Peters

• Elana Rubin.

OPERATING AND FINANCIAL REVIEW

The statutory profit after tax attributable to the stapled unitholders of the Trust for the half year ended 31 December 2013 was $273.6m (December 2012: $269.2m). The operating profit (profit before specific non-cash and significant items) was $209.5m (December 2012: $208.1m).

Operating profit is a financial measure which is not prescribed by Australian Accounting Standards (“AAS”) and represents the profit under AAS adjusted for specific non-cash items and significant items. The Directors consider operating profit to reflect the core earnings of the consolidated entity.

The following table summarises key reconciling items between statutory profit after tax attributable to the stapled unitholders of MPT and operating profit. The operating profit information included in the table below has not been subject to any specific review procedures by the consolidated entity’s auditor but has been extracted from note 3 of the accompanying financial statements for the half year ended 31 December 2013, which have been subject to review; refer to pages 25 and 26 for the auditor’s report on the financial statements.

review; refer to pages 25 and 26 for the auditor’s report on the fnancial statements.
	31 December31 December
	2013	2012
	$m	$m
Proft attributable to the stapled unitholders of MPT	273.6	269.2
Specifc non-cash items
Net gain on fair value of investment properties	(70.2)	(65.1)
Net loss on fair value of investment properties under construction (“IPUC”)	3.6	1.0
Loss/(gain) on fnancial instruments	1.8	(0.7)
Straight-lining of lease revenue1	(4.8)	(6.6)
Amortisation of lease ftout incentives2	6.0	6.6
Foreign exchange loss/(gain)	0.6	(0.3)
Net (gain)/loss on fair value of investment properties, derivatives and other specifc non-cash items included in the share of net proft of associates and joint ventures3	(1.4)	1.7
Signifcant items
Net loss on sale of non-aligned assets	0.3	2.3
Operating proft (proft before specifc non-cash items and signifcant items)	209.5	208.1

1) Included within Investment properties rental revenue in the consolidated Statement of Comprehensive Income (“SoCI”).

2) Included within Amortisation expense in the consolidated SoCI.

3) Included within Share of net profit of associates and joint ventures accounted for using the equity method in the consolidated SoCI.

01

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ REPORT

FINANCIAL, CAPITAL MANAGEMENT AND OPERATIONAL HIGHLIGHTS

Key financial highlights for the half year ended 31 December 2013 were:

• profit attributable to the stapled unitholders of MPT of $273.6m an increase of 1.6 per cent from $269.2m (December 2012);

• operating profit after tax of $209.5m[ 1] (December 2012: $208.1m) representing 5.7 cents per stapled unit (“CPSU”);

• $300.0m capital reallocation from MPT to Mirvac Limited; and

• half year distributions of $161.3m, representing 4.4 CPSU.

Key operational highlights for the half year ended 31 December 2013 were:

• achieved 3.3 per cent like-for-like net operating income growth;

• maintained high occupancy at 97.8 per cent;[ 2]

• total investment property revaluations provided a net uplift of $66.6m over the previous book value for the six months to 31 December 2013;

• leased 91,251 square meters (6.8 per cent of net lettable area)[ 3]

• acquired two Melbourne CBD office assets (367 Collins Street, Melbourne, VIC and 477 Collins Street, Melbourne, VIC), one Sydney CBD retail asset (Harbourside Shopping Centre, Sydney, NSW) and one industrial asset (60 Wallgrove Road, Eastern Creek, NSW) for a total value of $606.8m. The acquisitions are aligned with Mirvac’s strategy of acquiring quality assets in core locations with value add potential;

• exchanged contracts on one non-core industrial asset (54-60 Talavera Road, North Ryde, NSW) realising $48.0m in gross sale proceeds[ 4] ;

• exchanged contracts on two non-core retail assets (Orange City Centre, Orange, NSW and Gippsland Centre, Sale, VIC) realising $100.0m in gross sale proceeds[ 4] .

Key capital management[ 5] highlights for the half year ended 31 December 2013 were:

• maintained strong liquidity with $800.9m of cash and undrawn committed bank facilities held;

• significantly increased the weighted average debt maturity to 4.8 years;

• reduced average borrowing costs to 5.6 per cent per annum as at 31 December 2013 (including margins and line fees), despite significantly increasing the tenure and diversity of the Group’s debt;

• continued to comfortably meet all debt covenants; and

• Standard & Poor’s upgraded the Group’s credit rating from BBB to BBB+ with stable outlook.

• 1) Excludes specific non-cash items and significant items.

• 2) By area, excludes IPUC, based on 100 per cent of net lettable area.

• 3) Includes 8 Chifley Square, Sydney, NSW.

Outlook[ 6]

The Group’s capital position continued to be robust. Mirvac remains focused on prudently managing its capital position by monitoring and accessing diversified sources of capital, including equity, domestic and international debt and wholesale capital. This focus will ensure Mirvac can continue to meet its strategic objectives without increasing its overall capital management risk profile.

MATTERS SUBSEQUENT TO THE END OF THE HALF YEAR

On 19 February 2014 the Group announced it had signed a relationship deed with US based financial services organisation TIAA-CREF. Under the Deed, TIAA-CREF has an exclusive first right to acquire 50 per cent of co-investment opportunities in prime-grade Australian office assets sourced or developed by Mirvac for the next three years. The exclusive first right will apply to stable assets and development opportunities acquired by Mirvac after 19 February 2014, but not to Mirvac’s existing portfolio, acquisitions of additional interests in assets under pre-existing rights, or future assets acquired as part of a portfolio transaction. Mirvac and TIAA-CREF will each hold a 50 per cent interest in assets acquired under the Alliance. The financial effects of this transaction have not been brought to account at 31 December 2013. Any assets acquired under the agreement will be accounted for in the future periods to which they relate.

No other circumstances have arisen since the end of the half year which have significantly affected or may significantly affect the operations of Mirvac, the results of those operations, or the state of affairs of Mirvac in future years.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration required under section 307C of the Corporations Act 2001 is set out on page 03.

AUDITOR

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

ROUNDING OF AMOUNTS

The Trust is an entity of the kind referred to in Class Order 98/0100 issued by the Australian Securities Investment Commission, relating to the rounding off of amounts in the Directors’ report and financial statements. Amounts in the Directors’ report and financial statements have been rounded off to the nearest tenth of a million (“m”) dollars in accordance with that class order.

This statement is made in accordance with a resolution of the Directors.

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Susan Lloyd-Hurwitz Director Sydney 20 February 2014

• 4) Settlment expected to take place in March 2014.

• 5) The consolidated entity’s capital structure is monitored at the Group level; all items referred to relate to Mirvac Group.

• 6) These future looking statements should be read in conjunction with future releases to the Australian Stock Exchange (“ASX”).

02 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

AUDITOR’S INDEPENDENCE DECLARATION

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As lead auditor for the review of Mirvac Property Trust for the half-year ended 31 December 2013, I declare that to the best of my knowledge and belief, there have been:

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

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

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

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Matthew Lunn Partner

Sydney 20 February 2014

PricewaterhouseCoopers

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Liability limited by a scheme approved under Professional Standards Legislation

03

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

For the half year ended 31 December 2013

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		31 December31 December	31 December31 December
		2013	2012
	Note	$m	$m
Revenue from continuing operations
Investment properties rental revenue	9(b)	311.9	281.9
Interest revenue		15.4	19.5
Other revenue		—	0.2
Total revenue from continuing operations		327.3	301.6
Other income
Net gain on fair value of investment properties		70.2	65.1
Share of net proft of associates and joint ventures accounted for usingthe equitymethod	8	10.6	5.7
Total other income		80.8	70.8
Total revenue from continuing operations and other income		408.1	372.4
Investment properties expenses	9(b)	79.3	66.4
Amortisation expenses		10.0	10.9
Finance costs	4	32.5	19.5
Net loss on fair value of IPUC		3.6	1.0
Net loss on sale of non-aligned assets		0.3	2.3
Other expenses		6.2	3.9
Foreign exchange loss/(gain)		0.6	(0.3)
Loss/(gain)on fnancial instruments		1.8	(0.7)
Proft from continuing operations before income tax		273.8	269.4
Income tax expense		(0.2)	(0.2)
Proft for the half year		273.6	269.2
Other comprehensive income for the half year
Items that may be reclassifed to proft or loss
Gain/(loss)on translation of foreign operations		0.5	(0.2)
Other comprehensive income/(loss)for the halfyear		0.5	(0.2)
Total comprehensive income for the halfyear		274.1	269.0
Proft for the half year is attributable to:
– Stapled unitholders of MPT		273.6	269.2
Total comprehensive income for the half year is attributable to:
– Stapled unitholders of MPT		274.1	269.0
Earnings per stapled unit for proft attributable to the
stapled unitholders of MPT
		Cents	Cents
Basic earnings per stapled unit	5	7.5	7.9
Diluted earnings per stapled unit	5	7.5	7.9

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

04 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

At 31 December 2013

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		31 December	30 June
		2013	2013
	Note	$m	$m
Current assets
Cash and cash equivalents	17(a)	31.5	5.2
Receivables		31.3	25.0
Other fnancial assets at fair value through proft or loss	6	12.2	12.0
Other assets		10.8	10.7
Assets classifed as held for sale	7	148.0	49.5
Total current assets		233.8	102.4
Non-current assets
Receivables		4.0	355.5
Investments accounted for using the equity method	8	212.7	201.2
Derivative fnancial assets	6	8.9	10.9
Other fnancial assets	6	155.6	145.1
Investment properties	9	6,533.4	6,232.9
Intangible assets	10	69.5	69.5
Total non-current assets		6,984.1	7,015.1
Total assets		7,217.9	7,117.5
Current liabilities
Payables		144.5	120.4
Borrowings	11	—	114.7
Provisions		161.3	164.9
Total current liabilities		305.8	400.0
Non-current liabilities
Borrowings	11	1,337.8	957.1
Total non-current liabilities		1,337.8	957.1
Total liabilities		1,643.6	1,357.1
Net assets		5,574.3	5,760.4
Equity
Contributed equity	12	4,707.1	5,006.0
Reserves		7.9	7.4
Retained earnings		859.3	747.0
Equity, reserves and retained earnings attributable
to the stapled unitholders of MPT		5,574.3	5,760.4

The above consolidated statement of financial position (“SoFP”) should be read in conjunction with the accompanying notes.

05

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

For the half year ended 31 December 2013

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Note	Attributable to the stapled unitholders of MPT Contributed Retained equity Reserves earnings Total $m $m $m $m
Balance 1 July 2013	5,006.0 7.4 747.0 5,760.4
Proft for the half year Other comprehensive income for the halfyear	— — 273.6 273.6 — 0.5 — 0.5
Total comprehensive income for the halfyear	— 0.5 273.6 274.1
Long term performance (“LTP”), long term incentive plan (“LTIP”) and employee incentive scheme (“EIS”) units converted, sold, vested or forfeited Contributions of equity, net of transaction costs Recapitalisation Distributionsprovided for orpaid 13	1.5 — — 1.5 (0.4) — — (0.4) (300.0) — — (300.0) — — (161.3) (161.3)
Total transactions with owners in their capacity as owners	(298.9) — (161.3) (460.2)
Balance 31 December 2013	4,707.1 7.9 859.3 5,574.3
Balance 1 July2012	5,110.8 6.4 597.9 5,715.1
Proft for the half year Other comprehensive income for the halfyear	— — 269.2 269.2 — (0.2) — (0.2)
Total comprehensive income for the halfyear	— (0.2) 269.2 269.0
LTI and EIS units converted, sold, vested or forfeited Distributionsprovided for orpaid 13	10.8 — — 10.8 — — (143.9) (143.9)
Total transactions with owners in their capacityas owners	10.8 — (143.9) (133.1)
Balance 31 December 2012	5,121.6 6.2 723.2 5,851.0

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

06 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

For the half year ended 31 December 2013

CONSOLIDATED STATEMENT OF CASH FLOWS

		31 December31 December	31 December31 December
		2013	2012
	Note	$m	$m
Cash fows from operating activities
Receipts from customers (inclusive of goods and services tax)		330.2	299.6
Payments to suppliers(inclusive ofgoods and services tax)		(104.4)	(91.1)
		225.8	208.5
Interest received		11.9	17.7
Associates and joint venture distributions received		5.7	5.4
Borrowing costs paid		(34.2)	(20.0)
Income taxpaid		(0.2)	(0.2)
Net cash infows from operating activities	17(b)	209.0	211.4
Cash fows from investing activities
Payments for investment properties		(364.1)	(22.8)
Proceeds from sale of investment properties and assets classifed as held for sale		49.9	141.0
Proceeds from/(payments for) loans to entities related to the Responsible Entity		350.0	(147.0)
Contributions to associates and joint ventures		(7.6)	(5.0)
Payments for purchase of other fnancial assets		(10.5)	(11.4)
Proceeds from fnancial assets at fair value throughproft or loss		—	0.1
Net cash infows/(outfows) from investing activities		17.7	(45.1)
Cash fows from fnancing activities
Proceeds from borrowings		705.0	1,110.0
Repayments of borrowings		(1,540.1)	(1,186.4)
Proceeds from loans from entities related to the Responsible Entity		1,100.0	—
Proceeds from issue of stapled units		—	8.3
Payments for contributions of equity, net of transaction costs		(0.4)	—
Payments for recapitalisation		(300.0)	—
Distributionspaid		(164.9)	(82.0)
Net cash outfows from fnancing activities		(200.4)	(150.1)
Net increase in cash and cash equivalents		26.3	16.2
Cash and cash equivalents at the beginningof the halfyear		5.2	—
Cash and cash equivalents at the end of the half year	17(a)	31.5	16.2

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

07

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This condensed consolidated interim report for the half year reporting period ended 31 December 2013 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 . The financial statements of the consolidated entity consist of the consolidated financial statements of MPT and its controlled entities. A Mirvac stapled security comprises one Mirvac Limited share “stapled” to one MPT unit to create a single listed entity traded on the ASX. The stapled securities cannot be traded or dealt with separately.

This condensed consolidated interim 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 financial report for the year ended 30 June 2013 and any public announcements made by MPT during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 . The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except as set out below.

Net current asset deficiency

As at 31 December 2013, the Trust is in a net current liability position of $72.0m. The Trust repays its borrowings with excess cash, but had access to $742.7m of unused borrowing facilities at 31 December 2013. Accordingly, the Directors of the Responsible Entity expect that the Trust will have sufficient cash flows to meet all financial obligations as and when they fall due.

a) Changes in accounting policy

The consolidated entity changed one of its accounting policies as the result of new or revised accounting standards which became effective from the annual reporting period commencing on 1 July 2013. The affected policy and standard are:

• Principles of consolidation – new standards AASB 10 Consolidated Financial Statements and AASB 11 Joint Arrangements .

Other new standards that are applicable for the first time for the December 2013 half year report are AASB 13 Fair Value Measurement , AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities and AASB 2012-5 A mendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 Cycle . These standards have introduced new disclosures for the interim report but did not affect the consolidated entity’s accounting policies or any of the amounts recognised in the financial statements.

i) Principles of consolidation – subsidiaries and joint arrangements

AASB 10 was issued in August 2011 and replaces the guidance on control and consolidation in AASB 127 Consolidated and Separate Financial Statements and in Interpretation 112 Consolidation – Special Purpose Entities . Under the new principles, the consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The consolidated entity has reviewed its investments in other entities to assess whether the consolidation conclusion in relation to these entities is different under AASB 10 than under AASB 127. No differences were found and therefore no adjustments to any of the carrying amounts in the financial statements are required as a result of the adoption of AASB 10.

Under AASB 11, investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations each investor has, rather than the legal structure of the joint arrangement. The consolidated entity has assessed the nature of its joint arrangements and determined to have only joint ventures. As a result of this assessment, two of the consolidated entity’s interests in associates had been reclassified as interests in joint ventures; however, there is no material impact to the consolidated entity’s SoFP during the interim reporting period.

The accounting for the consolidated entity’s joint ventures has not changed as a result of the adoption of AASB 11. The consolidated entity continues to recognise its interests in joint ventures by using the equity method. Under this method, the interests are initially recognised in the consolidated SoFP at cost and adjusted thereafter to recognise the consolidated entity’s share of the post-acquisition profits or losses and movements in other comprehensive income in profit or loss and other comprehensive income respectively. When the consolidated entity’s share of losses in a joint venture equals or exceeds its interests in the joint ventures (which includes any long term interests that, in substance, form part of the consolidated entity’s net investment in the joint ventures), the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the joint ventures.

Unrealised gains on transactions between the consolidated entity and its joint ventures are eliminated to the extent of the consolidated entity’s interest in the joint ventures. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been changed where necessary, to ensure consistency with the policies adopted by the consolidated entity.

As required under AASB 11, the change in policy has been applied retrospectively; however, there is no impact to the entity’s consolidated SoFP at 30 June 2013.

08 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

b) Impact of standards issued but not yet applied by MPT

i) AASB 9 Financial Instruments

This standard addresses the classification, measurement and derecognition of financial assets and financial liabilities. The standard is not applicable until 1 January 2015 but is available for early adoption. When adopted, the standard will affect in particular the consolidated entity’s accounting for its available-for-sale financial assets, since AASB 9 only permits the recognition of fair value gains and losses in other comprehensive income if they relate to equity investments that are not held for trading. Fair value gains and losses on availablefor-sale debt investments, for example, will therefore have to be recognised directly in profit or loss. In the current reporting period, the consolidated entity did not recognise any such gains in other comprehensive income and did not hold any available-for-sale debt investments.

There will be no impact on the consolidated entity’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the consolidated entity does not have any such liabilities. The derecognition rules have been transferred from AASB 139 Financial Instruments: Recognition and Measurement and have not been changed. The consolidated entity has not yet decided when to adopt AASB 9.

There are no other standards with effective dates in the future that are expected to have a material impact on the consolidated entity in the current or future reporting periods and on foreseeable future transactions.

2 CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES

Judgements and estimates are continually evaluated, based on historical experience and other factors, including expectations of future events that may have a financial impact and are believed to be reasonable under the circumstances.

a) Critical judgements in applying MPT’s accounting policies

The following are the critical judgements that management has made in the process of applying the consolidated entity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

i) Fair value estimation

Where financial assets and liabilities are carried at fair value, the fair value is based on assumptions of future events and involves significant estimates. The fair values of derivatives reported at the end of the reporting period may differ if there is volatility in market rates, indexes, equity prices or foreign exchange rates in future periods.

b) Key sources of estimation uncertainty

In preparing the financial statements, management is required to make estimations and assumptions. The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next period:

i) Impairment of goodwill

The consolidated entity annually tests whether goodwill has suffered any impairment. Determining whether goodwill is impaired requires an estimation of the value in use of the cash generating units (“CGU”) to which goodwill has been allocated. The value in use calculation requires the consolidated entity to estimate the future cash flows expected to arise from each CGU and a suitable discount rate in order to calculate the net present value (“NPV”). The carrying amount of goodwill at the end of the reporting period is $69.5m (June 2013: $69.5m). There was no impairment loss recognised during the half year (December 2012: $nil).

ii) Estimated impairment of investments accounted for using the equity method

The investments are tested for impairment, by comparing recoverable amounts (higher of value in use and fair value less costs to sell) with the carrying amounts, whenever there is indication that the investment may be impaired. In determining the value in use of the investment, the consolidated entity estimates the present value of the estimated future cash flows expected to arise from distributions to be received from the investment and from its ultimate disposal.

iii) Fair value of investments not traded in active markets The fair value of investments not traded in an active market is determined by the unit price as advised by the fund manager. The unit price is determined by the NPV calculations using future cash flows and an appropriate post-tax discount rate. The carrying value of investments not traded in an active market determined using the above techniques and assumptions at the end of the reporting period was $12.2m (June 2013: $12.0m) and is disclosed as other financial assets at fair value through profit or loss.

iv) Valuation of investment properties

The consolidated entity uses judgement in respect of the fair values of investment properties. Investment properties are revalued by external valuers on a rotation basis with approximately one-half of the portfolio being valued annually. Investment properties which are not subject to an external valuation at the end of the reporting period are fair valued internally by management. The assumptions used in the estimations of fair values include expected future market rentals, discount rates, market prices and economic conditions. The reported fair values of investment properties reflect the market conditions at the end of the reporting period. While this represents the best estimation of fair value at the reporting date, actual sale prices achieved (should the investment properties be sold) may be higher or lower than the most recent valuation. This is particularly relevant in periods of market illiquidity or uncertainty. The carrying value at the end of the reporting period for investment properties was $6,533.4m (June 2013: $6,232.9m).

09

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2 CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTINUED)

v) Valuation of IPUC

IPUC are valued at fair value. There are generally no active markets for IPUC and fair value is considered to be the estimated market price that would be paid for the partially completed property, reflecting the expectations of market participants of the value of the property when complete less deductions for the estimated costs to complete with appropriate adjustments for risk and profit. The fair value is determined on the basis of either discounted cash flow (“DCF”) or residual methods. Both methods require consideration of the project risks which are relevant to the development process, including but not limited to construction and letting risks. The estimated value of future assets is based on the expected future income from the project, using current yields of similar completed properties. The net loss on fair value of IPUC was $3.6m (December 2012: $1.0m). The carrying value of $83.4m (June 2013: $74.9m) at the end of the reporting period is included in investment properties (refer to note 9).

vi) Valuation of derivatives and other financial instruments

The consolidated entity uses judgement in selecting the appropriate valuation technique for financial instruments not quoted in an active market. Valuation of derivative financial instruments involves assumptions based on quoted market rates adjusted for specific features of the instrument. The valuations of any financial instrument may change in the event of market volatility.

3 SEGMENTAL INFORMATION

Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise financing and other borrowing costs, indirect investments, other income and expenses. The consolidated entity operates predominantly in one geographic segment, Australia.

Segment results are now reported in a manner that is consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”). The CODM that makes strategic decisions for the consolidated entity has been identified as the Chief Executive Officer Investment. The CODM allocates resources to and assesses the performance of the operating segments of the consolidated entity. Net operating income is considered a key indicator of analysis when evaluating the consolidated entity’s ability to pay distributions to stapled unitholders.

a) Description of business segments

Individual business segments have been identified on the basis of grouping individual products or services subject to similar risks and returns. The main business segments of the consolidated entity are the investment in properties which are leased to third parties for the following uses:

• office – office accommodation;

• retail – retail accommodation;

• industrial – factories and other industrial use accommodation;

• other – hotel and car park facilities accommodation; and

• unallocated – not attributed directly to one of the above segments.

b) Inter-segment transfers

Segment revenues, expenses and results include transfers between segments. Such transfers are on an arm’s length basis and eliminated on consolidation.

c) Comparative information

When necessary, comparative information has been reclassified to achieve consistency in disclosure in current half year amounts and other disclosures.

d) Operating profit

Operating profit is a financial measure which is not prescribed by AAS and represents the profit under AAS adjusted for specific non-cash items and significant items which management considers to reflect the core earnings of the consolidated entity.

e) Segment liabilities

The amounts provided to the CODM with respect to total liabilities are measured in a manner consistent with that of the financial statements. These liabilities are allocated based on the operations of the segment. The consolidated entity’s borrowings and derivative financial instruments are not considered to be specific segment liabilities and are included in unallocated in note 3.

f) Geographical analysis

The consolidated entity operates predominantly in Australia, with investments in the United States of America.

g) Customer analysis

In total, 74.6 per cent of the consolidated entity’s revenue is derived from Australian Government, ASX listed and multinational tenants (December 2012: 72.8 per cent). In the current period, Westpac Banking Corporation provides 12.1 per cent of the consolidated entity’s revenue (December 2012: 14.1 per cent).

10 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 SEGMENTAL INFORMATION (CONTINUED)

3 SEGMENTAL INFORMATION (CONTINUED)
						Consolidated
Halfyear ended 31 December 2013	Offce $m	Retail $m	Industrial $m	Other $m	Unallocated $m	SoCI $m
Revenue from continuing operations
Investment properties rental revenue	195.2	93.1	17.6	6.0	—	311.9
Interest revenue	—	—	—	—	15.4	15.4
Total revenue from continuing operations	195.2	93.1	17.6	6.0	15.4	327.3
Other income
Net gain on fair value of investment properties	37.3	32.0	0.9	—	—	70.2
Share of net proft of associates and joint ventures
accounted for usingthe equitymethod	—	—	—	—	10.6	10.6
Total other income	37.3	32.0	0.9	—	10.6	80.8
Total revenue from continuing operations and other income	232.5	125.1	18.5	6.0	26.0	408.1
Investment properties expenses	38.9	36.2	2.4	1.8	—	79.3
Amortisation expenses	7.0	2.7	0.3	—	—	10.0
Finance costs	—	—	—	—	32.5	32.5
Net loss on fair value of IPUC	—	3.6	—	—	—	3.6
Net loss on sale of non-aligned assets	—	0.3	—	—	—	0.3
Other expenses	—	—	—	—	6.2	6.2
Foreign exchange loss	—	—	—	—	0.6	0.6
Loss on fnancial instruments	—	—	—	—	1.8	1.8
Proft/(loss) from continuing operations before income tax	186.6	82.3	15.8	4.2	(15.1)	273.8
Income tax expense	—	—	—	—	(0.2)	(0.2)
Proft/(loss) attributable to the stapled unitholders of MPT	186.6	82.3	15.8	4.2	(15.3)	273.6
Halfyear ended 31 December 2013	Offce $m	Retail $m	Industrial $m	Other $m	Unallocated $m	Total $m
Proft attributable to the stapled unitholders of MPT	186.6	82.3	15.8	4.2	(15.3)	273.6
Specifc non-cash items
Net gain on fair value of investment properties	(37.3)	(32.0)	(0.9)	—	—	(70.2)
Net loss on fair value of IPUC	—	3.6	—	—	—	3.6
Loss on fnancial instruments	—	—	—	—	1.8	1.8
Straight-lining of lease revenue1	(4.0)	—	(0.8)	—	—	(4.8)
Amortisation of lease ftout incentives2	5.4	0.5	0.1	—	—	6.0
Foreign exchange loss	—	—	—	—	0.6	0.6
Net gain on fair value of investment properties, derivatives and other specifc non-cash items included in share of net proft of associates and joint ventures3	—	—	—	—	(1.4)	(1.4)
Signifcant items
Net loss on sale of non-aligned assets4	—	0.3	—	—	—	0.3
Operating proft/(loss) before specifc non-cash items and signifcant items)	150.7	54.7	14.2	4.2	(14.3)	209.5

1) Included within Investment properties rental revenue in the consolidated SoCI.

2) Included within Amortisation expense in the consolidated SoCI.

3) Included within Share of net profit of associates and joint ventures accounted for using the equity method in the consolidated SoCI.

4) Net loss on the sale of non-aligned assets in the consolidated SoCI.

4) Net loss on the sale of non-aligned assets in the consolidated SoCI.
						Consolidated
Halfyear ended 31 December 2013	Offce $m	Retail $m	Industrial $m	Other $m	Unallocated $m	SoCI $m
Operating proft
Investment properties rental revenue1	191.2	93.1	16.8	6.0	—	307.1
Investmentproperties expenses2	40.5	38.4	2.6	1.8	—	83.3
Netpropertyincome	150.7	54.7	14.2	4.2	—	223.8
Interest revenue	—	—	—	—	15.4	15.4
Share of net proft of associates and joint ventures accounted for using the equity method	—	—	—	—	9.2	9.2
Finance costs	—	—	—	—	(32.5)	(32.5)
Other expenses	—	—	—	—	(6.2)	(6.2)
Income tax expense	—	—	—	—	(0.2)	(0.2)
Operating proft/(loss) before specifc non-cash items and signifcant items)	150.7	54.7	14.2	4.2	(14.3)	209.5

• 1) Investment properties rental revenue reconciles to that in the consolidated SoCI after adjusting for straight-lining of lease revenue.

• 2) Investment properties expense reconciles to that in the consolidated SoCI when combined with amortisation expenses, after adjusting for amortisation of lease fitout incentives.

11

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 SEGMENTAL INFORMATION (CONTINUED)

3 SEGMENTAL INFORMATION (CONTINUED)
						Consolidated
Halfyear ended 31 December 2012	Offce $m	Retail $m	Industrial $m	Other $m	Unallocated $m	SoCI $m
Revenue from continuing operations
Investment properties rental revenue	164.5	92.5	19.1	5.8	—	281.9
Interest revenue	—	—	—	—	19.5	19.5
Other revenue	—	—	—	—	0.2	0.2
Total revenue from continuingoperations	164.5	92.5	19.1	5.8	19.7	301.6
Other income
Net gain/(loss) on fair value of investment properties	42.5	13.7	10.3	(1.4)	—	65.1
Share of net proft of associates and joint ventures
accounted for using the equity method	—	—	—	—	5.7	5.7
Foreign exchange gain	—	—	—	—	0.3	0.3
Gain on fnancial instruments	—	—	—	—	0.7	0.7
Total other income	42.5	13.7	10.3	(1.4)	6.7	71.8
Total revenue from continuingoperations and other income	207.0	106.2	29.4	4.4	26.4	373.4
Investment properties expenses	30.6	31.2	2.8	1.8	—	66.4
Amortisation expenses	7.8	2.8	0.3	—	—	10.9
Finance costs	—	—	—	—	19.5	19.5
Net loss on fair value of IPUC	—	1.0	—	—	—	1.0
Net loss on sale of non-aligned assets	1.6	0.1	0.6	—	—	2.3
Other expenses	—	—	—	—	3.9	3.9
Proft from continuing operations before income tax	167.0	71.1	25.7	2.6	3.0	269.4
Income tax expense	—	—	—	—	(0.2)	(0.2)
Proft attributable to the stapled unitholders of MPT	167.0	71.1	25.7	2.6	2.8	269.2
Halfyear ended 31 December 2012	Offce $m	Retail $m	Industrial $m	Other $m	Unallocated $m	Total $m
Proft attributable to the stapled unitholders of MPT	167.0	71.1	25.7	2.6	2.8	269.2
Specifc non-cash items
Net (gain)/loss on fair value of investment properties	(42.5)	(13.7)	(10.3)	1.4	—	(65.1)
Net loss on fair value of IPUC	—	1.0	—	—	—	1.0
Gain on fnancial instruments	—	—	—	—	(0.7)	(0.7)
Straight-lining of lease revenue1	(6.2)	—	(0.4)	—	—	(6.6)
Amortisation of lease ftout incentives2	5.8	0.7	0.1	—	—	6.6
Foreign exchange gain	—	—	—	—	(0.3)	(0.3)
Net loss on fair value of investment properties, derivatives and other specifc non-cash items included in share of net proft of associates and joint ventures3	—	—	—	—	1.7	1.7
Signifcant items
Net loss on sale of non-aligned assetss4	1.6	0.1	0.6	—	—	2.3
Operating proft (proft before specifc non-cash items and signifcant items)	125.7	59.2	15.7	4.0	3.5	208.1

1) Included within Investment properties rental revenue in the consolidated SoCI.

2) Included within Amortisation expense in the consolidated SoCI.

3) Included within Share of net profit of associates and joint ventures accounted for using the equity method in the consolidated SoCI.

4) Net loss on the sale of non-aligned assets in the consolidated SoCI.

4) Net loss on the sale of non-aligned assets in the consolidated SoCI.
						Consolidated
Halfyear ended 31 December 2012	Offce $m	Retail $m	Industrial $m	Other $m	Unallocated $m	SoCI $m
Operating proft
Investment properties rental revenue1	158.3	92.5	18.7	5.8	—	275.3
Investmentproperties expenses2	(32.6)	(33.3)	(3.0)	(1.8)	—	(70.7)
Netpropertyincome	125.7	59.2	15.7	4.0	—	204.6
Interest revenue	—	—	—	—	19.5	19.5
Other revenue	—	—	—	—	0.2	0.2
Share of net proft of associates and joint ventures accounted for using the equity method	—	—	—	—	7.4	7.4
Finance costs	—	—	—	—	(19.5)	(19.5)
Other expenses	—	—	—	—	(3.9)	(3.9)
Income tax expense	—	—	—	—	(0.2)	(0.2)
Operating proft (proft before specifc non-cash items and signifcant items)	125.7	59.2	15.7	4.0	3.5	208.1

1) Investment properties rental revenue reconciles to that in the consolidated SoCI after adjusting for straight-lining of lease revenue.

2) Investment properties expense reconciles to that in the consolidated SoCI when combined with amortisation expenses, after adjusting for amortisation of lease fitout incentives.

12 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

3 SEGMENTAL INFORMATION (CONTINUED)

3 SEGMENTAL INFORMATION (CONTINUED)
						Consolidated
	Offce $m	Retail $m	Industrial $m	Other $m	Unallocated $m	SoFP/SoCI $m
31 December 2013
Total assets	4,511.3	1,616.3	304.5	101.3	684.5	7,217.9
Total liabilities	6.2	52.7	6.7	—	1,578.0	1,643.6
Investments in associates and joint ventures	—	—	—	—	212.7	212.7
Acquisitions of investment properties including capital expenditures	347.4	45.4	2.2	0.9	—	395.9
Amortisation expenses	7.0	2.7	0.3	—	—	10.0
31 December 2012
Total assets	3,509.1	1,659.7	346.3	101.7	1,005.1	6,621.9
Total liabilities	7.1	17.4	6.6	—	739.8	770.9
Investments in associates and joint ventures	—	—	—	—	152.1	152.1
Acquisitions of investment properties including capital expenditures	26.8	19.8	2.4	2.5	—	51.5
Amortisation expenses	7.8	2.8	0.3	—	—	10.9

4 FINANCE COSTS

	31 December31 December	31 December31 December
	2013	2012
	$m	$m
Interest and fnance charges paid/payable	29.2	18.6
Borrowingcosts amortised	3.3	0.9
Total fnance costs	32.5	19.5

5 EARNINGS PER STAPLED UNIT

5 EARNINGS PER STAPLED UNIT
	31 December31 December
	2013	2012
	Cents	Cents
Earnings per stapled unit
Basic earnings per stapled unit	7.5	7.9
Diluted earningsper stapled unit	7.5	7.9
Basic and diluted earnings	$m	$m
Proft attributable to the stapled unitholders of MPT used in calculatingearningsper stapled unit	273.6	269.2
	Number	Number
Weighted average number of stapled units used as denominator1	m	m
Weighted average number of stapled units used in calculating basic earnings per unit	3,660.0	3,418.5
Units issued under EIS	4.9	6.1
Weighted average number of units used in calculating diluted earnings per stapled unit	3,664.9	3,424.6

• 1) Diluted units include units issued under EIS, but do not include the options and rights issued under the current LTI plans as the exercise of these equity instruments is contingent on conditions during the vesting period.

6 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS

a) Fair value hierarchy

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:

• quoted prices (unadjusted) in active markets for identical assets or liabilities (level one);

• inputs other than quoted prices included within level one that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level two); and

• inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level three).

13

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (CONTINUED)

The following table presents the consolidated entity’s assets measured and recognised at fair value at 31 December 2013 and 30 June 2013 on a recurring basis:

and 30 June 2013 on a recurring basis:
	Level one	Level two	Level three	Total
	$m	$m	$m	$m
At 31 December 2013
Assets
Other fnancial assets at fair value through proft or loss
– unlisted securities	—	—	12.2	12.2
Other fnancial assets1	—	—	155.6	155.6
Derivatives used for hedging	—	8.9	—	8.9
	—	8.9	167.8	176.7
At 30 June 2013
Assets
Other fnancial assets at fair value through proft or loss
– unlisted securities	—	—	12.0	12.0
Other fnancial assets1	—	—	145.1	145.1
Derivatives used for hedging	—	10.9	—	10.9
	—	10.9	157.1	168.0

1) Primarily relates to convertible notes associated with funding two joint ventures, Mirvac 8 Chifley Trust $97.2m (June 2013: $97.2m) and Mirvac (Old Treasury) Trust $58.4m (June 2013: $47.9m). Convertible notes have been issued to fund the development costs of IPUC held by the joint venture and will be converted into equity held by the consolidated entity at the end of the development.

There were no transfers between levels one, two and three for recurring fair value measurements during the half year.

The consolidated entity’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

The consolidated entity did not measure any financial assets at fair value on a non-recurring basis as at 31 December 2013.

b) Valuation techniques used to derive level two and level three fair values

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques. The consolidated entity uses a variety of methods and makes assumptions that are based on market conditions existing at the end of each reporting period. Quoted market prices or dealer quotes for similar instruments are used to estimate fair value for long term debt for disclosure purposes. Other techniques, such as estimated DCF, are used to determine fair value for the remaining financial instruments. The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows. The fair value of forward exchange contracts is determined using forward exchange market rates at the end of the reporting period. These instruments are included in level two and comprise debt investments and derivative financial instruments.

In the circumstances where a valuation technique for these instruments is based on significant unobservable inputs, such instruments are included in level three. This is the case for unlisted securities and other financial assets.

c) Fair value measurements using significant unobservable inputs (level three)

The following table presents the changes in level three instruments for the half-year ended 31 December 2013 held by the consolidated entity:

		Other
	Unlisted	fnancial
	securities	assets	Total
	$m	$m	$m
Opening balance 1 July 2013	12.0	145.1	157.1
Acquisitions	—	10.5	10.5
Gains recognised in other income1	0.2	—	0.2
Closing balance 31 December 2013	12.2	155.6	167.8
1)Unrealised gain for the year included in gain on fnancial instruments that relates to assets held at the end of the halfyear	0.2	—	0.2

There were no transfers between the levels of the fair value hierarchy in the six months to 31 December 2013. There were also no changes made to any of the valuation techniques applied as of 30 June 2013.

14 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (CONTINUED)

The main level three inputs used by the consolidated entity in measuring the fair value of financial instruments are derived and evaluated as follows:

• unlisted securities – fair value of the security unit price: these are determined based on the valuation of the underlying assets held by the fund. These valuations are based on discounted net cash inflows from expected future income and/ or comparable sales of similar assets;

• other financial assets – expected cash inflows: these are determined based on the development management

• agreement with fixed repayment terms based on fixed interest rate and agreed project costs.

Sensitivity on changes in fair value of level three financial instruments

For level three unlisted securities, the impact of an increase/decrease in unlisted security unit price on the consolidated entity’s profit for the half year end and on equity if the unit price had been five per cent higher or lower would have been $0.6m (30 June 2013: $0.6m) higher or lower.

d) Fair value of other financial instruments

The carrying value of the other financial assets is considered to approximate their fair value.

7 ASSETS CLASSIFIED AS HELD FOR SALE

	31 December	30 June
	2013	2013
	$m	$m
Non-current assets held for sale
54-60 Talavera Road, North Ryde NSW1	48.0	—
Gippsland Centre, Sale VIC1	50.5	—
Orange City Centre, Orange NSW1	49.5	—
Logan Megacentre, Logan QLD2	—	49.5
	148.0	49.5

1) Settlements expected to occur in March 2014.

2) Settlement occurred on 9 August 2013.

As part of the consolidated entity’s strategy, investment properties that no longer meet the investment criteria and are subject to a contract for sale, are reclassified as held for sale.

8 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

		31 December	30 June
		2013	2013
	Note	$m	$m
Consolidated SoFP
Investments accounted for using the equity method
Investments in associates	14	—	—
Investments injoint ventures	15	212.7	201.2
		212.7	201.2
		31 December31 December
		2013	2012
		$m	$m
Consolidated SoCI
Share of net proft of associates and joint ventures accounted for using equity method
Investments in associates		0.3	5.4
Investments injoint ventures		10.3	0.3
		10.6	5.7

15

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9 INVESTMENT PROPERTIES

9 INVESTMENT PROPERTIES
				Book value	Capitalisation rate		Discount rate			Last
			31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun	Date of	external
		Date of	2013	2013	2013	2013	2013	2013	last external	valuation
		acquisition	$m	$m	%	%	%	%	valuation	$m
Mirvac Property Trust and its controlled entities
1 Castlereagh Street, Sydney NSW		Dec 1998	69.4	71.0	7.63	7.63	9.25	9.25	Jun 2012	72.0
1 Darling Island, Pyrmont NSW		Apr 2004	185.0	178.2	7.00	7.00	8.75	9.00	Dec 2012	175.0
1 Woolworths Way, Bella Vista NSW1		Aug 2010	250.0	248.0	7.75	7.75	8.88	8.88	Jun 2013	248.0
1-47 Percival Road, Smithfeld NSW		Nov 2002	31.0	30.5	8.00	8.25	9.50	9.75	Dec 2013	31.0
10 Julius Avenue, North Ryde NSW1		Dec 2009	51.4	51.2	8.18	8.50	9.18	9.50	Jun 2013	51.2
10-20 Bond Street, Sydney NSW (50% interest)1		Dec 2009	188.0	181.8	6.63	6.88	8.50	9.00	Dec 2013	188.0
101-103 Miller Street & Greenwood Plaza,
North Sydney NSW (50% interest)		Jun 1994	284.3	272.0	6.50-6.75	6.75-7.00	8.75-9.00	9.00-9.25	Dec 2012	267.5
12 Julius Avenue, North Ryde NSW1		Dec 2009	21.3	23.5	8.50	8.50	9.50	9.50	Jun 2013	23.5
189 Grey Street, Southbank QLD		Apr 2004	79.0	78.6	7.63	7.63	9.00	9.25	Dec 2013	79.0
1900-2060 Pratt Boulevard, Chicago Illinois USA		Dec 2007	36.0	35.0	7.25	7.50	8.50	9.25	Dec 2013	36.0
191-197 Salmon Street, Port Melbourne	VIC	Jul 2003	97.3	101.6	8.25	8.00	9.25	9.25	Jun 2012	102.5
210 George Street, Sydney NSW		May 2013	26.0	26.0	8.00	8.00	9.50	9.50	—	—
220 George Street, Sydney NSW		May 2013	57.0	57.0	8.00	8.00	9.50	9.50	—	—
271 Lane Cove Road, North Ryde NSW		Apr 2000	31.4	31.3	8.25	8.25	9.50	9.50	Jun 2012	31.3
275 Kent Street, Sydney NSW1		Aug 2010	855.0	830.0	6.75	6.75	8.50	9.00	Jun 2012	792.0
3 Rider Boulevard, Rhodes NSW1		Dec 2009	86.5	84.3	8.00	8.00	9.00	9.25	Jun 2013	84.3
33 Corporate Drive, Cannon Hill QLD1		Aug 2010	15.2	15.2	9.00	9.00	10.00	10.00	Jun 2013	15.2
340 Adelaide Street, Brisbane QLD1		Dec 2009	58.1	60.0	8.75	8.75	9.25	9.25	Dec 2012	60.0
367 Collins Street, Melbourne VIC2		Nov 2013	227.9	—	7.00	—	8.50	—	—	—
37 Pitt Street, Sydney NSW		May 2013	67.0	67.0	8.25	8.25	9.50	9.50	—	—
38 Sydney Avenue, Forrest ACT		Jun 1996	35.5	35.5	8.50	8.50	9.50	9.50	Dec 2012	35.5
40 Miller Street, North Sydney NSW		Mar 1998	105.6	105.5	7.25	7.25	9.00	9.25	Jun 2012	103.6
47-67 Westgate Drive, Altona North VIC1		Dec 2009	19.1	19.1	9.50	9.75	9.75	10.00	Dec 2013	19.1
477 Collins Street, Melbourne VIC2		Nov 2013	72.0	—	7.50	—	8.75	—	—	—
5 Rider Boulevard, Rhodes NSW		Sep 2011	126.9	126.9	8.00	8.00	9.00	9.25	Dec 2012	124.0
51 Pitt Street, Sydney NSW		May 2013	24.0	24.0	8.25	8.25	9.50	9.50	—	—
54 Marcus Clarke Street, Canberra ACT		Oct 1987	15.0	14.7	9.75	9.75	10.50	10.50	Dec 2012	14.7
54-60 Talavera Road, North Ryde NSW1,3		Aug 2010	—	47.0	—	7.50	—	9.25	Dec 2012	47.0
55 Coonara Avenue, West Pennant Hills	NSW1Aug 2010		100.5	100.5	8.50	8.50	9.50	9.50	Dec 2012	100.5
6-8 Underwood Street, Sydney NSW		May 2013	9.0	9.0	8.25	8.25	9.50	9.50	—	—
60 Marcus Clarke Street, Canberra ACT		Sep 1989	48.5	48.5	8.75	8.75	9.50	9.50	Jun 2013	48.5
90 Collins Street, Melbourne VIC		May 2013	171.0	170.0	7.00	7.25	8.50	8.75	—	—
Allendale Square, 77 St Georges
Terrace, Perth WA		May 2013	235.7	231.0	8.13	8.25	9.25	9.50	—	—
Aviation House, 16 Furzer Street, Phillip	ACT	Jul 2007	69.0	68.6	7.75	7.75	9.50	9.50	Dec 2013	69.0
Bay Centre, Pirrama Road, Pyrmont NSW		Jun 2001	110.0	109.2	7.50	7.65	8.75	9.25	Dec 2013	110.0
Broadway Shopping Centre, Broadway NSW
(50% interest)		Jan 2007	261.0	255.0	6.00	6.00	9.00	9.00	Jun 2012	245.0
Cherrybrook Village Shopping Centre,
Cherrybrook NSW1		Dec 2009	86.0	84.6	7.25	7.25	9.25	9.25	Jun 2013	84.6
City Centre Plaza, Rockhampton QLD1		Dec 2009	47.0	49.0	8.00	8.00	9.50	9.50	Jun 2013	49.0
Como Centre, Cnr Toorak Road & Chapel
Street, South Yarra VIC		Aug 1998	165.0	159.9	8.00-8.50	8.00-8.50	9.00-11.00	9.00-11.00	Jun 2013	159.9
Cooleman Court, Weston ACT1		Dec 2009	53.0	47.6	7.50	7.75	9.00	9.50	Dec 2013	53.0
Gippsland Centre, Sale VIC3		Jan 1994	—	48.5	—	8.50	—	9.50	Dec 2011	49.1
Hinkler Central, Bundaberg QLD		Aug 2003	91.5	92.0	7.75	7.75	9.50	9.50	Dec 2012	92.0
John Oxley Centre, 339 Coronation Drive,
Milton QLD		May 2002	53.7	56.1	9.00	9.00	10.00	10.00	Dec 2012	56.0
Kawana Shoppingworld,	Dec 1993 (50%) &
Buddina QLD	Jun 1998 (50%)		255.0	230.7	6.50	6.75	9.00	9.25	Dec 2013	255.0

16 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9 INVESTMENT PROPERTIES (CONTINUED)	9 INVESTMENT PROPERTIES (CONTINUED)	9 INVESTMENT PROPERTIES (CONTINUED)
				Book value	Capitalisation rate		Discount rate			Last
			31 Dec	30 Jun	31 Dec	30 Jun	31 Dec	30 Jun	Date of	external
		Date of	2013	2013	2013	2013	2013	2013	last external	valuation
		acquisition	$m	$m	%	%	%	%	valuation	$m
Mirvac Property Trust and its controlled entities
Metcentre & 60 Margaret Street,
Sydney NSW (50% interest)		Aug 1998	248.8	247.0	6.50-7.00	6.5-7.00	8.50-9.00	9.00	Dec 2012	238.5
Moonee Ponds Central (Stage II),
Moonee Ponds VIC		Feb 2008	38.0	41.5	8.50	8.50	9.75	9.75	Jun 2012	40.0
Moonee Ponds Central, Moonee Ponds	VIC	May 2003	28.9	25.3	7.75	7.75	9.50	9.50	Jun 2012	25.5
Nexus Industry Park (Building 1),
Lyn Parade, Prestons NSW		Aug 2004	19.9	19.2	8.00	8.00	9.25	9.25	Jun 2013	19.2
Nexus Industry Park (Building 2),
Lyn Parade, Prestons NSW		Aug 2004	14.7	14.6	8.00	8.00	9.50	9.50	Dec 2012	14.4
Nexus Industry Park (Building 3),
Lyn Parade, Prestons NSW		Aug 2004	25.9	25.3	8.00	8.00	9.25	9.25	Jun 2013	25.3
Nexus Industry Park (Building 4),
Lyn Parade, Prestons NSW		Aug 2004	35.8	35.0	8.00	8.00	9.25	9.50	Dec 2013	35.8
Nexus Industry Park (Building 5),
Lyn Parade, Prestons NSW		Aug 2004	18.0	17.1	8.00	8.00	9.25	9.50	Dec 2012	16.4
Orange City Centre, Orange NSW3		Apr 1993	—	48.0	8.50	8.50	9.50	9.75	Dec 2011	49.0
Orion Springfeld Town Centre, Springfeld QLD		Aug 2002	138.6	129.0	6.75	6.75	9.25	9.25	Dec 2012	128.0
Quay West Car Park, 109-111 Harrington
Street, Sydney NSW		Nov 1989	30.6	30.5	8.50	8.50	10.00	10.00	Jun 2013	30.5
Rhodes Shopping Centre, Rhodes NSW
(50% interest)		Jan 2007	128.2	125.0	7.00	7.00	9.25	9.25	Jun 2013	125.0
		Apr 2002 &
Riverside Quay, Southbank VIC		Jul 2003	199.3	194.7	7.75	7.75-8.00	9.00-10.25	9.25-10.00	Dec 2013	199.3
Royal Domain Centre,	Oct 1995 (50%) &
380 St Kilda Road, Melbourne VIC	Apr 2001 (50%)		124.6	118.0	8.00	8.00	9.00	9.00	Jun 2013	118.0
Sirius Building, 23 Furzer Street, Phillip ACT		Feb 2010	246.5	246.0	7.35	7.50	9.00	9.50	Dec 2013	246.5
St Marys Village Centre, St Marys NSW		Jan 2003	44.9	44.0	7.75	7.75	9.00	9.00	Dec 2012	44.0
Stanhope Village, Stanhope Gardens NSW		Nov 2003	97.0	87.0	7.25	7.50	9.00	9.25	Dec 2013	97.0
Waverley Gardens Shopping Centre,
Mulgrave VIC		Nov 2002	139.5	135.7	7.75	7.75	9.50	9.50	Dec 2013	139.5
Total investmentproperties			6,450.0	6,158.0
IPUC
200 George Street, Sydney NSW (50% interest) Dec 2012			52.6	44.1	6.50	6.50	8.75	8.75	Dec 2012	37.6
Orion Springfeld land, Springfeld QLD		Aug2002	30.8	30.8	6.50-9.50	6.50-9.50	9.25-10.25	9.25-10.25	Dec 2012	33.0
Total IPUC			83.4	74.9
Total investment properties and IPUC			6,533.4	6,232.9

1) Date of acquisition represents business combination acquisition date.

2) Investment property acquired during the period.

3) Investment property disposed of or reclassified to held for sale during the period.

17

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9 INVESTMENT PROPERTIES (CONTINUED)

a) Reconciliation of carrying amounts of investment properties

9 INVESTMENT PROPERTIES (CONTINUED) a) Reconciliation of carrying amounts of investment properties
		31 December	30 June
		2013	2013
At fair value	Note	$m	$m
Balance 1 July		6,232.9	5,659.3
Additions		79.4	124.4
Acquisitions		316.5	619.0
Disposals		(0.6)	(142.7)
Net gain on fair value of investment properties	17	70.2	55.3
Net loss on fair value of IPUC	17	(3.6)	(5.3)
Net gain from foreign currency translation		1.4	2.9
Assets classifed as held for sale		(148.0)	(49.5)
Amortisation of ftout incentives, leasingcosts and rent incentives		(14.8)	(30.5)
Balance 31 December/30 June		6,533.4	6,232.9

b) Amounts recognised in profit or loss for investment properties

	31 December31 December	31 December31 December
	2013	2012
	$m	$m
Investment properties rental revenue	311.9	281.9
Investmentproperties expenses	(79.3)	(66.4)
	232.6	215.5

c) Valuation basis

i) Investment properties

Investment properties are carried at fair value. Valuation methods used to determine the fair value include market sales comparison, DCF and capitalisation rate (“CR”). The fair value for a property may be determined by using a combination of these and other valuation methods.

Market sales comparison: The sales comparison approach utilises recent sales of comparable properties, adjusted for any differences including the nature, location and lease profile, to indicate the fair value of a property. Where there is a lack of recent sales activity, adjustments are made from previous comparable sales to reflect changes in economic conditions.

DCF: DCF projections derived from contracted rents, market rents, operating costs, lease incentives, lease fees, capital expenditure and future income on vacant space are discounted at a rate to arrive at a value. The discount rate is a market assessment of the risk associated with the cash flows, and the nature, location and tenancy profile of the property relative to returns from alternative investments, Consumer Price Index rates and liquidity risk. It is assumed that the property is sold at the end of the investment period at a terminal value. The terminal value is determined by using an appropriate terminal CR. The consolidated entity’s terminal CR is in the range of an additional nil to 75 basis points above the respective property’s CR.

CR: An assessment is made of fully leased net income based on contracted rents, market rents, operating costs and future income on vacant space. The adopted fully leased net income is capitalised in perpetuity from the valuation date at an appropriate CR. The CR reflects the nature, location and tenancy profile of the property together with current market investment criteria, as evidenced by current sales evidence. Various adjustments including incentives, capital expenditure, and reversions to market rent are made to arrive at the property value.

ii) IPUC

There are generally no active markets for IPUC; therefore, a lack of comparable transactions for IPUC usually requires the use of estimation models. The two main estimation models used to value IPUC are residual and DCF valuations. The residual method of determining the value of a property uses the estimated total cost of the development, including construction and associated expenditures, finance costs, and an allowance for developer’s risk and profit is deducted from the end value of the completed project. The resultant figure is then adjusted back to the date of valuation to give the residual value.

18 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9 INVESTMENT PROPERTIES (CONTINUED)

d) Property portfolio

The consolidated entity’s property portfolio is made up as follows:

9 INVESTMENT PROPERTIES (CONTINUED) d) Property portfolio The consolidated entity’s property portfolio is made up as follows:
	31 December	30 June
	2013	2013
	$m	$m
Investment properties per consolidated SoFP	6,533.4	6,232.9
Investmentproperties classifed as assets held for sale	148.0	49.5
	6,681.4	6,282.4

10 INTANGIBLE ASSETS

		31 December	30 June
		2013	2013
		$m	$m
Balance	1 July	69.5	69.5
Balance	31 December/30 June	69.5	69.5

a) Allocation of goodwill by business segments

A segment level summary of the goodwill allocations is presented below:

			Offce $m	Industrial $m	Unallocated $m	Total $m
Balance	31	December 2013	44.5	7.6	17.4	69.5
Balance	30	June 2013	44.5	7.6	17.4	69.5

b) Key assumptions used for value in use calculations for goodwill

Goodwill is allocated to the consolidated entity’s CGU identified according to business segments.

The recoverable amount of CGU is determined using the higher of fair value less cost to sell, and their value in use. The value in use calculation is based on financial forecasts approved by management covering a 10 year period. For each business segment CGU, no forecast growth rate is assumed as the value in use calculations are based on forecast cash flows from existing investment properties and other investments. The discount rates used are post-tax and reflect specific risks relating to the relevant segments.

	Growth rate1Discount rate	Growth rate1Discount rate	Growth rate1	Discount rate
	31 December	31 December	30 June	30 June
	2013	2013	2013	2013
CGU	%	%	%	%
Offce	—	9.5	—	9.5
Retail	—	9.5	—	9.5
Industrial	—	9.5	—	9.5
Other	—	9.5	—	9.5

1) The value in use calculation is based on financial budgets and forecasts approved by management covering a 10 year period. No forecast growth rate is assumed as the value in use calculations are based on forecast cash flows from existing investment properties.

The recoverable amount of goodwill exceeds the carrying value at 31 December 2013. Management considers that for the carrying value to exceed the recoverable amount, there would have to be unreasonable changes to key assumptions. Management considers the chances of these changes occurring as unlikely.

c) Impairment of goodwill

There was no impairment of goodwill recognised during the half year (December 2012: $nil).

19

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11 BORROWINGS

11 BORROWINGS
	31 December	30 June
	2013	2013
	$m	$m
Current
Unsecured
Bank loans	—	114.7
	—	114.7
Non-current
Unsecured
Bank loans	15.2	735.0
Domestic medium term notes (“MTN”)	200.0	200.0
Loan from relatedparty	1,122.6	22.1
	1,337.8	957.1

a) Borrowings

i) Unsecured bank loans

The consolidated entity has access to unsecured bank facilities totalling $1,700.0m (June 2013: $1,410.0m). The facility contains three tranches: a $680.0m tranche maturing in September 2015, a $510.0m tranche maturing in September 2017 and a $510.0m tranche maturing in September 2018.

ii) Domestic MTN

The consolidated entity has a total of $200.0m (June 2013: $200.0m) of domestic MTN outstanding maturing in March 2015. Interest is payable semi-annually in arrears in accordance with the terms of the notes.

iii) Loan from related party

The consolidated entity has access to unsecured loan facilities from a related party of $2,027.6m (June 2013: $26.5m). As of 18 December 2013, the majority of unsecured bank loans were repaid and it is the Trust’s intention to borrow directly from the related party. The facilities now consist of two individual loans: $27.6m is held in US dollars and translated into Australian dollars on a monthly basis, which expires on 7 December 2017 and $2,000.0m held in Australian dollars, which expires on 18 December 2023.

b) Financing arrangements

b) Financing arrangements
	31 December	30 June
	2013	2013
	$m	$m
Total facilities
Unsecured bank loans1	1,700.0	1,410.0
Domestic MTN	200.0	200.0
Loan from relatedparty	2,027.6	26.5
	3,927.6	1,636.5
Used at end of the reporting period
Unsecured bank loans1	957.3	1,022.1
Domestic MTN	200.0	200.0
Loan from relatedparty	1,122.6	22.1
	2,279.9	1,244.2
Unused at end of the reporting period
Unsecured bank loans1	742.7	387.9
Domestic MTN	—	—
Loan from relatedparty	905.0	4.4
	1,647.7	392.3

• 1) Total bank loan facility relates to Mirvac; this facility is available to the consolidated entity and Mirvac Limited. The consolidated entity had drawn down $15.2m at 31 December 2013 (June 2013: $849.7m).

20 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12 CONTRIBUTED EQUITY

a) Paid up equity

12 CONTRIBUTED EQUITY a) Paid up equity
	31	December	30 June
		2013	201331 December		30 June
		Units	Units	2013	2013
		m	m	$m	$m
Mirvac Property Trust – ordinary units issued		3,660.4	3,659.9	4,707.1	5,006.0

b) Movements in paid up equity

Movements in paid up equity of MPT for the half year ended 31 December 2013 were as follows:

	Units
	m	$m
Balance 1 July 2013	3,659.9	5,006.0
LTP, LTIP and EIS units converted, sold, vested or forfeited	0.5	1.5
Recapitalisation	—	(300.0)
Less: Transaction costs arisingon issues of units	—	(0.4)
Balance 31 December 2013	3,660.4	4,707.1

c) Reconciliation of units issued on the ASX

Under AAS, units issued under the Mirvac employee LTI plans are required to be accounted for as an option and are excluded from total issued equity, until such time as the relevant employee loans are fully repaid or the employee leaves the Group. Total ordinary units issued as detailed above are reconciled to units issued on the ASX as follows:

	31 December	30 June
	2013	2013
	Units	Units
	m	m
Total ordinary units disclosed	3,660.4	3,659.9
Stapled units issued under LTIplan and EIS disclosed	4.6	5.1
Total units issued on the ASX	3,665.0	3,665.0

13 DISTRIBUTIONS

13 DISTRIBUTIONS
	31 December31 December
	2013	2012
Ordinary stapled units	$m	$m
Half yearly ordinary distributions payable/paid as follows:
4.40 CPSU payable on 27 February 2014	161.3	—
4.20 CPSUpaid on 25 January2013	—	143.9
Total distribution 4.40 (December 2012: 4.20) CPSU	161.3	143.9

In November 2013, the Group announced the distribution reinvestment plan (“DRP”) would be reactivated for the December 2013 half year distribution. Distributions paid/payable or satisfied by issue of stapled units under the Group’s DRP are as follows:

Group’s DRP are as follows:
	31 December31 December
	2013	2012
	$m	$m
Payable in cash	115.2	143.9
To be satisfed bythe issue of stapled units	46.1	—
Total distribution	161.3	143.9

21

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14 INVESTMENTS IN ASSOCIATES

a) Associates accounted for using the equity method

Investments in associates are accounted for using the equity method of accounting. Information relating to associates is set out below:

is set out below:
			Interest
	31	December	30 June	31 December	30 June
		2013	2013	2013	2013
Name of entity	Principal activities	%	%	$m	$m
Mirvac Industrial Trust1	Listed propertyinvestment trust	14.1	14.1	—	—

1) The consolidated entity equity accounts for this investment as an associate even though it owns less than 20 per cent of the voting or potential voting power due to the fact that the Responsible Entity is Mirvac Funds Management Limited, a related party of the Responsible Entity of the Trust.

15 INVESTMENTS IN JOINT VENTURES

a) Joint ventures accounted for using the equity method

Investments in joint ventures include those in corporations, partnerships and other entities and accounted for in the consolidated financial statements using the equity method of accounting. All joint ventures were established in Australia. Information relating to joint ventures is set out below:

			Interest
		31 December	30 June	31 December	30 June
		2013	2013	2013	2013
Name of entity	Principal activities	%	%	$m	$m
Australian Sustainable Forestry	Forestry and environmental
Investors 1&21	asset manager	25.2	25.2	3.8	4.4
Mirvac 8 Chifey Trust	Property investment	50.0	50.0	42.7	42.1
Mirvac (Old Treasury) Trust	Property investment	50.0	50.0	43.2	35.1
Tucker Box Hotel Group1	Hotel investment	49.0	49.0	123.0	119.6
				212.7	201.2

1) Due to AASB 11 assessment, these investments have been reclassified from associates to joint ventures.

16 CONTINGENT LIABILITIES

a) Contingent liabilities

The consolidated entity had contingent liabilities at 31 December 2013 in respect of the following:

	31 December	30 June
	2013	2013
	$m	$m
Claims for damages in respect of injury sustained due to health and safety issues have been made during the half year. The potential effect of these claims indicated by legal advice is that if the claims were to be successful against the consolidated entity,
theywould result in a liability.	0.9	1.2

As part of the ordinary course of business of the consolidated entity, disputes can arise with suppliers, customers and other third parties. Where there is a present obligation, a liability is recognised. Where there is a possible obligation, which will only be determined by a future event and it is considered probable that a liability will arise, they are disclosed as a contingent liability. Where the possible obligation is remote, no disclosure is given. The consolidated entity does not provide details of these as to do so may prejudice the consolidated entity’s position.

b) Associates and joint ventures

There are no contingent liabilities relating to associates and joint ventures.

22 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

17 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
		31 December31 December
		2013	2012
	Note	$m	$m
a) Reconciliation of cash
Cash at the end of the period as shown in the consolidated statement of cash fows is the same as consolidated SoFP, the detail of which follows:
Cash at bank and on hand		31.3	15.9
Deposits at call		0.2	0.3
Cash and cash equivalents		31.5	16.2
b) Reconciliation of proft attributable to the stapled unitholders of MPT to net cash infows from operating activities
Proft attributable to the stapled unitholders of MPT		273.6	269.2
Net gain on fair value of investment properties	9	(70.2)	(65.1)
Net loss on fair value of IPUC	9	3.6	1.0
Amortisation expenses		10.0	10.9
Non-cash lease incentives		(8.2)	(8.8)
Loss/(gain) on fnancial instruments		1.8	(0.7)
Foreign exchange loss/(gain)		0.6	(0.3)
Net loss/(gain) on sale of investment properties		0.3	(1.8)
Share of net proft of associates and joint ventures not received as distributions		(10.6)	(5.2)
Changes in operating assets and liabilities:
– Decrease in receivables		4.0	9.1
– Decrease in other assets		2.2	3.5
– Increase/(decrease)inpayables		1.9	(0.4)
Net cash infows from operating activities		209.0	211.4

18 EVENTS OCCURRING AFTER THE END OF THE REPORTING PERIOD

On 19 February 2014 the Group announced it had signed a relationship deed with US based financial services organisation TIAA-CREF. Under the Deed, TIAA-CREF has an exclusive first right to acquire 50 per cent of co-investment opportunities in prime-grade Australian office assets sourced or developed by Mirvac for the next three years. The exclusive first right will apply to stable assets and development opportunities acquired by Mirvac after 19 February 2014, but not to Mirvac’s existing portfolio, acquisitions of additional interests in assets under pre-existing rights, or future assets acquired as part of a portfolio transaction. Mirvac and TIAA-CREF will each hold a 50 per cent interest in assets acquired under the Alliance. The financial effects of this transaction have not been brought to account at 31 December 2013. Any assets acquired under the agreement will be accounted for in the future periods to which they relate.

No other circumstances have arisen since the end of the half year which have significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future years.

23

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

DIRECTORS’ DECLARATION

In the Directors’ opinion:

• a) the financial statements and notes set out on pages 04 to 23 are in accordance with the Corporations Act 2001 , including:

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

• ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2013 and of its performance for the financial half year ended on that date; and

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

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

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Susan Lloyd-Hurwitz

Director

Sydney 20 February 2014

24 MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

To the unitholders of Mirvac Property Trust

INDEPENDENT AUDITOR’S REVIEW REPORT

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Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Mirvac Property Trust, which comprises the statement of financial position as at 31 December 2013, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors’ declaration for the Mirvac Property Trust Group (the consolidated entity). The consolidated entity comprises both Mirvac Property Trust (the trust) and the entities it controlled during that half-year, including Mirvac Funds Limited as responsible entity for Mirvac Property Trust and the entities it controlled during that half-year.

Directors’ responsibility for the half-year financial report

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

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2013 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Mirvac Property Trust, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

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Liability limited by a scheme approved under Professional Standards Legislation

25

MIRVAC PROPERTY TRUST AND ITS CONTROLLED ENTITIES INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

to the unitholders of Mirvac Property Trust

INDEPENDENT AUDITOR’S REVIEW REPORT

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Independence

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

Conclusion

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

• a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2013 and of its performance for the half-year ended on that date; and

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

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PricewaterhouseCoopers

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Matthew Lunn Partner

Sydney 20 February 2014