Appendix 4E Preliminary Final Report

APPENDIX 4E - Results for announcement to the market

Full Year Report For the year ended 30 June 2017

Name of Entity: Shopping Centres Australasia Property Group (SCA Property Group)

Shopping Centres Australasia Property Group comprises Shopping Centres Australasia Property Management Trust ARSN 160 612 626 (Management Trust) and Shopping Centres Australasia Property Retail Trust ARSN 160 612 788 (Retail Trust). The Responsible Entity of Shopping Centres Australasia Property Trust and Shopping Centres Australasia Property Retail Trust is Shopping Centres Australasia Property Group RE Limited (ABN 47 158 809 851; AFSL 426603)

For the year ended	30 June 2017$m	30 June 2016$m	Variance
Revenue from continuing and ordinary activities	211.4	186.9	13.1%
Revenue from discontinuing activities	2.9	18.8	(84.6)%
Net profit after tax from ordinary and continuing activitiesattributable to members	320.9	149.2	115.1%
Net profit after tax attributable to members from continuingand discontinued activities	319.6	184.7	73.0%
Funds from Operations (FFO)1	108.4	100.1	8.3%

For the year ended	30 June 2017	30 June 2016	Variance
Basic earnings per security (cents per security)	43.3	25.4	70.5%
Weighted average FFO per security1 (cents per security)	14.70	13.75	6.9%

Distributions

For the year 1 July 2016 to 30 June 2017	Record date	Amountper unit	Frankedamount perunit
Final distributionInterim distribution	30 June 201730 December 2016	6.7 cents6.4 cents	0.0 cents0.0 cents
The total distribution per stapled unit is 13.1 cents. The Final distribution of 6.7 cents was declared on 16June 2017 and will be paid on or about 31 August 2017. The Interim distribution of 6.4 cents was declaredon 14 December 2016 and paid on 30 January 2017.

Net Tangible Assets

For the year ended	30 June 2017	30 June 2016	Variance
Net tangible asset backing per stapled unit ($ perstapled unit)	2.20	1.92	14.6%

Notes:

The Group reports net profit attributable to members in accordance with Australian Accounting Standards (AAS). Funds from operations (FFO) is a non-AAS measure that represents the Directors' view of underlying earnings from ongoing operating activities for the period, being statutory net profit/loss after tax adjusted to exclude certain items including unrealised gains and losses and non recurring items.

Details of entities over which control has been gained or lost during the period:

During the year Shopping Centres Australasia Property NZ Retail Trust was wound up. Prior to the wind up of the entity, Shopping Centres Australasia Property Group owned 100%. Refer Financial Report, note 24.

Details of any associates and Joint Venture entities required to be disclosed:

SCA Property Group has a 24.4% interest in SCA Unlisted Retail Fund 1. On 2 June 2017 SCA Property Group acquired 28.6% of SCA Unlisted Retail Fund 2. Refer Financial Report, note 27.

Accounting standards used by foreign entities

International Financial Reporting Standards.

Audit

The accounts have been audited with an unqualified report conclusion. Refer attached financial report.

Distribution Reinvestment Plan (DRP)

The Group has a Distribution Reinvestment Plan (DRP) under which unitholders may elect to have all or part of their distribution entitlements satisfied by the issue of new units rather than being paid in cash. The DRP applied both to the Interim distribution and the Final distribution. The issue price was calculated as the arithmetic average of the daily volume weighted average price of all sales of Stapled Units sold through a Normal Trade recorded on ASX for the first 10 ASX Trading Days following the business day after the record date, less 1.0% (1.0% being the Board approved DRP discount for this distribution) and rounded to the nearest whole cent. Additional details are below.

Interim distribution: The DRP applied to the Interim distribution for the half year ended 31 December 2016, paid on 30 January 2017. The cut-off for electing to participate or change an existing election to participate in the DRP was 5.00pm on 3 January 2017.

Final distribution: The DRP applied to the Final distribution for the year ended 30 June 2017, paid on or about 31 August 2017. The cut-off for electing to participate or change an existing election to participate in the DRP was 5.00pm on 3 July 2017.

Other significant information and commentary on results including a brief explanation of the figures above

See attached ASX announcement and materials referred to below.

For all other information required by Appendix 4E including a results commentary, please refer to the following attached documents:

Directors' report
Financial Report
Results presentation

Mark Lamb Company Secretary 7 August 2017

Shopping Centres Australasia Property Group

Financial Report for the year ended 30 June 2017

Shopping Centres Australasia Property Group comprises Shopping Centres Australasia Property Management Trust ARSN 160 612 626 and Shopping Centres Australasia Property Retail Trust ARSN 160 612 788

Shopping Centres Australasia Property Group has been formed by the stapling of the units in two Australian managed investment schemes, Shopping Centres Australasia Property Management Trust (ARSN 160 612 626) and Shopping Centres Australasia Property Retail Trust (ARSN 160 612 788). Shopping Centres Australasia Property Group RE Limited (ABN 47 158 809 851; AFSL 426603) is the Responsible Entity of both schemes and is incorporated and domiciled in Australia. The registered office of Shopping Centres Australasia Property Group RE Limited is Level 5, 50 Pitt Street, Sydney, New South Wales.

Directors' Report

Shopping Centres Australasia Property Group (SCA Property Group (SCP) or the Group) comprises the stapled units in two Trusts, Shopping Centres Australasia Property Management Trust (Management Trust) and Shopping Centres Australasia Property Retail Trust (Retail Trust) (collectively the Trusts) and their controlled entities.

The Responsible Entity for the Trusts is Shopping Centres Australasia Property Group RE Limited, which now presents its report together with the Trusts' Financial Reports for the year ended 30 June 2017 and the auditor's report thereon.

The Trusts' Financial Report for the year ended 30 June 2017 includes, where required, comparatives to the prior period.

In accordance with Accounting Standard AASB 3 Business Combinations, the stapling arrangement discussed above is regarded as a business combination and the Management Trust has been identified as the Parent for preparing Consolidated Financial Reports.

The Directors' report is a combined Directors' report that covers both Trusts. The financial information for the Group is taken from the Consolidated Financial Reports and notes.

1. Directors

The Directors of the Responsible Entity at any time during or since the end of the financial year are:

Mr Philip Marcus Clark AM (appointed 19 September 2012)

Non Executive Director and Chair

Directorships held in last 3 years:

Independent:	Yes.
Other listedDirectorships heldin last 3 years:	Non-Executive Director of Ingenia Communities Group and Chair of Remuneration and NominationCommittee (June 2012 to date) and Chair and Non-Executive Director of Hunter Hall Global Value Limited(July 2013 to December 2015).
Special	Other Group positions held during the year include member of the Nominations Committee.
responsibilities andother positionsheld:	Other positions held unrelated to the Group include member of the JP Morgan Australia Advisory Council.Chairs a number of Government and private company boards and advisory boards.
Other Experience:	Mr Clark was formerly Managing Partner of the law firm Minter Ellison from 1995 to 2005. Prior to joiningMinter Ellison, Mr Clark was a Director and Head of Corporate with ABN Amro Australia, and prior to that hewas the Managing Partner of the law firm Mallesons Stephen Jaques for 16 years. Mr Clark was made amember of the Order of Australia in June 2007 for service to the legal profession and business. Mr Clark hasbeen a Director of responsible entities of several listed AREITs, in addition to the Group and IngeniaCommunities Group, and is an expert in university and research infrastructure and real estate.
	Mr Clark brings specific skills in the following areas:
	•M & A and capital markets;•Audit, risk management and compliance;•Corporate governance;•Real estate, including property management, portfolio and investment management, assetmanagement and funds management;•Remuneration;•Workplace health and safety; and•Stakeholder engagement.
Qualifications:	BA, LLB, and MBA (Columbia University).
	Dr Kirstin Ferguson (appointed 1 January 2015)
Non Executive Director
Independent:	Yes.
Other listed	CIMIC Group Limited (July 2014 to November 2016).

Specialresponsibilities andother positions	Other Group positions held during the year are member of the Audit, Risk Management and ComplianceCommittee (until 31 March 2016), member of the Remuneration Committee and appointed Chair of theRemuneration Committee from 1 January 2016.
held:	Other positions currently held unrelated to the Group include as a Non-Executive Director of theAustralian Broadcasting Corporation (November 2015 to date), Non-Executive Director of Hyne & SonsPty Limited (August 2013 to date) and the Layne Beachley Aim for the Stars Foundation (November2016 to date). Dr Ferguson is also the creator of the global, online #CelebratingWomen campaign.
Other experience:	Dr Ferguson is an experienced Non-Executive Director on ASX100, ASX200 and private company andgovernment boards. Dr Ferguson has a PhD in leadership and governance from QUT Business Schoolwhere she is also an Adjunct Professor (April 2015 to date). Dr Ferguson was formerly the global CEOof the workplace health and safety organisation, Sentis, and Director Corporate Services at Deacons(now Norton Rose Fulbright). Dr Ferguson has listed company experience including roles as a NonExecutive Director of CIMIC Group Limited (July 2014 to November 2016) and Dart Energy Limited(November 2012 to March 2013), as well as board roles with SunWater Limited (October 2008 to August2015), the Queensland Rugby Union (April 2011 to April 2013) and Queensland Theatre Company (May2013 to May 2016). Dr Ferguson was also the Independent Chair of the Thiess Advisory Board(February 2013 to June 2014).
	Dr Ferguson brings specific skills in the following areas:
	•Remuneration;•Organisational culture;•Diversity;•Risk and compliance;•Workplace health and safety;•Stakeholder engagement; and•Social media.
Qualifications:	PhD, LLB (Honours), BA (Honours) and FAICD.
	Mr James Hodgkinson OAM (appointed 26 September 2012)
Non Executive Director
Independent:	Yes.
Other listedDirectorships held inlast 3 years:	None.
Specialresponsibilities andother positions held:	Other Group positions held during the year are Chair of the Nominations Committee, member of theRemuneration Committee, and member of the Audit, Risk Management and Compliance Committee andfrom 1 April 2016 member of the Investment Committee.
Other experience:	Other positions held unrelated to the Group include a Founding Governor of the Cerebral PalsyFoundation and Founder and Chair of the Cerebral Palsy Alliance of New South Wales 20/TwentyChallenge. Also an advisor to the Ray White Group and the Blue Sky Funds Management Group.Formerly an Executive Director of the Macquarie Group and a division head within Macquarie's RealEstate Group. In his career at the Macquarie Group he gained broad real estate and funds management

Executive and Senior Management experience as a business and transaction leader, Listed entity Executive Director and CEO. Other real estate experience includes a Non-Executive Director of Goodman Group from February 2003 to September 2011. Additionally he has initiated and assisted in the fund raising initiatives and strategic support of a number of community based organisations. Formerly served as a member of the Advisory

Committee of the Macquarie Foundation.

Mr Hodgkinson brings specific skills in the following areas:

Real estate, including property and development management, portfolio and investment management, asset management and funds management;
M & A and capital markets;
Investment banking and corporate finance;
Staff management;
Marketing and investor relations; and
Stakeholder engagement.

Qualifications: BEcon, CPA, FAPI, and FRICS.

Dr Ian Pollard (appointed 26 September 2012)

Independent:	Yes.
Other listedDirectorships heldin last 3 years:	Non-Executive Director and Chair of Billabong International Limited (October 2012 to date) and Director ofMilton Corporation Limited (1998 to date).
Specialresponsibilities andother positionsheld:	Other Group positions held during the year are Chair of the Audit, Risk Management and ComplianceCommittee and from 1 April 2016 member of the Nomination Committee.
Other experience:	Dr Pollard has been a company Director for over 30 years and author of a number of books on bothCorporate Finance and growth in human capital. In addition Dr Pollard is an actuary, Rhodes Scholar andan Adjunct Professor at UTS Business School.
	Other positions held unrelated to the Group include Chair of RGA Reinsurance Company of AustraliaLimited, Director of the Wentworth Group of Concerned Scientists, and an Executive coach withForesight's Global Coaching. Formerly a Director and Chair of a number of listed companies including:Corporate Express Australia (Chair) (listed until 2010), Just Group Limited (Chair) (listed until 2008),OPSM Group Limited (Director) (listed until 2003) and DCA Group Limited (Director) (listed until 2006).
	Dr Pollard brings specific skills in the following areas:
	•Listed company CEO experience;•Investment banking and corporate finance;•Strategic investment;•Retail experience with over 20 years experience as a director of substantial listed retailcompanies;•M &A and capital markets;•Audit, risk management and compliance;•Capital management; and•Corporate governance.
Qualifications:	BA, MA (First Class Honours) (Oxon), DPhil, D.Bus (Hon) (Macq), FIAA, FAICD.

Mr Philip Redmond (appointed 26 September 2012)

Non Executive Director

Independent:	Yes.
Other listedDirectorships held inlast 3 years:	Non-Executive Director Galileo Funds Management Limited the Responsible Entity for Galileo Japan Trust(2006 to date).
Specialresponsibilities andother positions held:	Other Group positions held during the year are member of the Audit, Risk Management and ComplianceCommittee and Remuneration Committee and from 1 April 2016 Chair of the Investment Committee.
Other experience:	Mr Redmond has over 30 years of experience in the real estate industry including over five years with AMP'sreal estate team and over 12 years with the investment bank UBS in various roles including as ManagingDirector - Head of Real Estate Australasia.
	Mr Redmond brings specific skills in the following areas:
	•Real estate, including property and development management, portfolio and investmentmanagement, asset management and funds management;•M&A and capital markets;•Equity placements and entitlement offers;•Valuations;•Development of strategy and policy for real estate investment funds; and•Risk management.
Qualifications:	Bachelor of Applied Science (Valuation), Master of Business Administration (AGSM) and MAICD.

				Ms Belinda Robson (appointed 27 September 2012)
--	--	--	--	-------------------------------------------------	--

Non Executive Director
Independent:	Yes.
Other listedDirectorships held inlast 3 years:	None.
Specialresponsibilities and	Member of Remuneration Committee from 1 January 2016, member of the Investment Committee from 1April 2016 and member of the Audit, Risk Management and Compliance Committee from December 2016.
other positions held:	Other positions held unrelated to the Group include Non-Executive Director of several Lendlease AsianRetail Investment Funds and a Non-Executive Director of GPT Funds Management Limited.
Other experience:	Ms Robson is an experienced real estate executive and people leader, having previously worked withLendlease for over 22 years. At Australian Prime Property Retail Fund, Ms Robson was responsible forportfolio and fund management and the development and implementation of the fund strategy, as well asreporting to the Fund Board and its Investor Advisory Board. Ms Robson's previous roles with Lendleaseincluded Head of Operations, Australian Prime Fund Series, and Portfolio Manager, Australian PrimeProperty Fund Retail as well as multiple senior roles in the retail management business.
	Ms Robson brings specific skills in the following areas:
	•Real estate, in particular retail assets, spanning all aspects of real estate including property anddevelopment management, portfolio and investment management, asset management and fundsmanagement;•Retail industry, investor and consumer sentiment experience and the way in which retail formatsshould and can evolve to capitalise on sector opportunities;•M & A and capital markets;•Corporate governance;•Remuneration; and•Secured international experience.
Qualifications:	BComm (Honours).

Mr Anthony Mellowes (appointed Director 2 October 2012)

Executive Director and CEO

Independent:	No.
Other listedDirectorships held inlast 3 years:	None.
Specialresponsibilities andother positions held:	In addition to be being an Executive Director and CEO, Mr Mellowes is also a member of the InvestmentCommittee.
Other experience:	Mr Mellowes is an experienced property executive. Prior to joining SCA Property Group as an ExecutiveDirector, Mr Mellowes worked at Woolworths Limited from 2002 to 2012 and held a number of seniorproperty related roles including Head of Asset Management and Group Property Operations Manager. Priorto Woolworths Limited, Mr Mellowes worked for Lend Lease Group and Westfield Limited.
	Mr Mellowes was appointed Chief Executive Officer of SCA Property Group on 16 May 2013 after previouslyacting as interim Chief Executive Officer since the Group's listing on 26 November 2012. Mr Mellowes was akey member of the Woolworths Limited team which created SCA Property Group.Mr Mellowes brings specific skills in the following areas:
	•Real estate, in particular retail assets, spanning all aspects of real estate including property anddevelopment management, portfolio and investment management and funds management;•Retail experience spanning all retail asset classes;•M&A and capital markets; and•Equity placements.
Qualifications:	Bachelor of Financial Administration and completion of Macquarie Graduate School of Management'sStrategic Management Program.

Mr Mark Fleming (appointed CFO 20 August 2013, appointed Executive Director 26 May 2015)

Executive Director and CFO
Independent:	No.
Other listed Directorships heldin last 3 years:	None.
Special responsibilities andother positions held:	In addition to be being an Executive Director and CFO, Mr Fleming is also a member of theInvestment Committee.
Other experience:	Mr Fleming worked at Woolworths Limited from 2003 to 2011, firstly as General ManagerCorporate Finance, and then as General Manager Supermarket Finance. After WoolworthsLimited, Mr Fleming was CFO of Treasury Wine Estates from 2011 to 2013. Prior toWoolworths Limited, Mr Fleming worked in investment banking at UBS, Goldman Sachs andBankers Trust.
	Mr Fleming was appointed Chief Financial Officer of SCA Property Group on 20 August 2013and as an Executive Director of SCA Property Group on 26 May 2015.
	Mr Fleming brings specific skills in the following areas:
	•Investment banking, M&A, capital markets, strategy, law and corporate finance;•Capital management, including debt, derivatives and equity raising•Retail industry expertise across a range of retail categories including supermarketsand experience in fast moving consumer goods•Real estate expertise, particularly in retail asset classes, including valuations andfunds management•Listed company CFO experience, including treasury, tax, accounting/financialcontrol/audit, corporate governance/risk management/compliance, stakeholderengagement/investor relations.
Qualifications:	LLB, B.Econ (First Class Honours), CPA.
Company Secretary
Mr Mark Lamb (appointed 26 September 2012)
General Counsel and Company Secretary
Experience:	Mr Lamb is an experienced transaction lawyer with over 25 years experience in private practiceas a Partner of Corrs Chambers Westgarth (and subsequently Herbert Geer) and in the listedsector as General Counsel and Company Secretary of ING Real Estate.
	Mr Lamb has extensive experience in retail shopping centre developments, acquisitions, sales

and major leasing transactions having acted for various REITs and public companies during his career.

Qualifications: LLB.

Directors' relevant interests

The relevant interest of each Director in ordinary stapled units (or securities) in the Group as at the date of signing this report are shown below.

Director	Number of stapled unitsat 30 June 2016	Net Movementincrease / (decrease)	Number of vestedstapled units at date ofthis report	Number of unvestedperformance rights atdate of this report
P Clark AM	52,000	-	52,000	-
K Ferguson	10,000	-	10,000	-
J Hodgkinson OAM	184,285	-	184,285	-
I Pollard	103,571	-	103,571	-
P Redmond	67,500	-	67,500	-
B Robson	7,142	10,000	17,142	-
A Mellowes	106,069	878,873	984,942	1,268,805
M Fleming	20,000	156,564	176,564	539,261

Directors' attendance at meetings

The number of Directors' meetings, including meetings of committees of the Board of Directors, held during the year and the number of those meetings attended by each of the Directors at the time they held office are shown below.

Number of meetings held	Number
Board of Directors (Board)	15
Audit, Risk Management and Compliance Committee (ARMCC)	5
Remuneration Committee (Remuneration)	5
Nomination Committee (Nomination)	3
Investment Committee (Investment)	8

		Board			ARMCC			Remuneration			Nomination			Investment
Director	A	B	C	A	B	C	A	B	C	A	B	C	A	B	C
P Clark AM	15	15	-	-	-	3	-	-	2	3	3	-	-	-	1
K Ferguson	15	15	-	-	-	1	5	5	-	-	-	1	-	-	-
J Hodgkinson OAM	15	13	-	5	5	-	5	5	-	3	2	-	8	8	-
I Pollard	15	14	-	5	5	-	-	-	1	3	3	-	-	-	-
P Redmond	15	15	-	5	5	-	5	5	-	-	-	1	8	8	-
B Robson	15	15	-	2	2	2	5	5	-	-	-	1	8	8	-
A Mellowes	15	15	-	-	-	5	-	-	4	-	-	-	8	8	-
M Fleming	15	15	-	-	-	5	-	-	4	-	-	-	8	8	-

Note: During the year there was a restructure of the sub committees of the Board such that some Directors were not members of the relevant committee for the whole year.

A: Number of meetings held while a member of the Board or a member of the committee during the financial year.

B: Number of meetings attended while a member of the Board or a member of the committee during the financial year.

C: Number of meetings attended as a guest. No Executive Director attended the part or all of a Remuneration Committee meeting or Board meeting where their own remuneration was discussed.

2. Principal activities

The principal activity of the Group during the year was investment in, and management of, shopping centres.

3. Property portfolio

The investment portfolio as at 30 June 2017 consisted of 75 shopping centres in Australia (30 June 2016: 69 shopping centres in Australia and 14 in New Zealand). All 14 shopping centres in New Zealand were sold during the period. The investment portfolio consists of sub-regional and neighbourhood retail shopping centres, with around half the portfolio located in new growth corridors and regions, and a strong weighting toward non-discretionary retail segments.

Additionally the Group has a funds management business comprising the management of SCA Unlisted Retail Fund No 1 (SURF 1) and SCA Unlisted Retail Fund No 2 (SURF 2). As a result the Group manages 5 properties for SURF 1 valued at $67.3 million and 2 properties for SURF 2 valued at $55.1m at 30 June 2017.

Investment properties - acquisitions

During the year the Group completed 8 property acquisitions for $274.9 million. Details of these properties include:

Property	Type	State	Settlement	Cost1	Value at 30 Jun 17
			Date	$m	$m
Muswellbrook Fair	Neighbourhood	NSW	Jul-16	29.3	29.3
Jimboomba Junction	Neighbourhood	QLD	Jul-16	27.5	27.5
Belmont Central	Neighbourhood	NSW	Jul-16	28.5	28.5
Lillybrook Shopping Village	Neighbourhood	QLD	Oct-16	25.5	26.5
Annandale Central	Neighbourhood	QLD	Dec-16	33.5	33.5
Clemton Park Village	Neighbourhood	NSW	Mar-17	48.5	55.5
Mudgeeraba Market	Neighbourhood	QLD	May-17	35.8	35.8
Worongary Town Centre	Neighbourhood	QLD	Jun-17	46.3	46.3
				274.9	282.9

Cost excludes transaction costs.

Investment properties - disposals

New Zealand – On 10 June 2016 the Group announced it entered into a sale contract with Stride Property Group (NZX: STR) for the sale of SCP's New Zealand properties. This sale was completed during the year ended 30 June 2017. The sale is consistent with the Group's strategy of divesting freestanding properties, as 9 of the 14 New Zealand centres were freestanding.

Funds management – On 2 June 2017 the Group sold Katoomba Marketplace and Mittagong Shopping Village for $55.1 million to SCA Unlisted Fund No 2 (SURF 2). The Group provided a rental guarantee of $0.2 million and the amount of $54.9 million has been recognised as the net disposal proceeds after disposal costs. The Group considers freestanding stores or stores with relatively few specialities to be "non-core". Katoomba Marketplace is a freestanding property and Mittagong Shopping Village has only 6 specialities and as such are regarded as "non-core". SURF 2 is the second fund managed by the Group. The Group has an interest of 28.6% in SURF 2.

Revaluations

During the year a number of properties were independently valued including 22 investment properties as at 30 June 2017. All of the remaining investment properties were internally valued. The weighted average capitalisation rate as at 30 June 2017 was 6.47% (30 June 2016: 7.07%).

Australian property

The total value of Australian investment properties as at 30 June 2017 was $2,364.6 million (30 June 2016: $1,888.0 million). The change in value during the year of the Australian investment properties was due principally to:

The acquisition of the properties discussed above (refer Investment properties acquisitions) less the properties disposed (refer Investment properties – disposals); and
Firming of the Australian portfolio capitalisation rate by 66bps to 6.47% (30 June 2016: 7.13%) which resulted in a $211.6 million favourable unrealised fair value movement (30 June 2016: $26.9 million).

4. Operational and financial review

Operational review

The Group remains focused on:

Specialty tenant management: this includes maximising specialty occupancy while ensuring that the retail shopping properties secure the right tenant for the right location in order to create a sustainable and long-term tenant mix to optimise the performance of the portfolio.
Property management: this includes appropriate capital expenditure programs to maximise sales turnover and occupancy.
Portfolio management: this includes the acquisition of suitable properties that will add to the Group's ability to provide a solid income base to support distributions, selective developments to provide an opportunity for greater growth of earnings and divestments of properties that are considered non-core.
Capital management: investment returns are managed and where applicable maximised through prudent and disciplined capital management. This includes consideration of:
- o Debt management: maintaining diversified debt maturity and sources of debt including appropriate management of exposure to changes in interest rates; and
- o Equity management: maintaining the ability to raise equity from retail and institutional investors, or to buy back equity where appropriate.

Financial review

A summary of the Group and Retail Trust's results for the year is set out below:

	SCA Property GroupRetail Trust
	30 Jun 2017$m	30 Jun 2016$m	30 Jun 2017$m	30 Jun 2016$m
Net profit after tax including discontinued operations1($m)	319.6	184.7	319.4	184.2
Basic earnings per security (weighted for securities on issue durig theyear) for net profit after tax including discontinued operation1 (cents persecurity)	43.3	25.4	43.3	25.3
Diluted earnings per security for net profit after tax including discontinuedoperation1(cents per unit)	43.2	25.3	43.1	25.2
Funds from operations ($m)	108.4	100.1	108.2	99.6
Funds from operations per security (weighted for securities on issueduring the year) (cents per security)	14.70	13.75	14.67	13.68
Distributions paid and payable to security holders ($m)	96.8	89.0	96.8	89.0
Distributions (cents per security)	13.1	12.2	13.1	12.2
Net tangible assets ($ per security)	2.20	1.92	2.19	1.91

Funds from Operations and Adjusted Funds from Operations

The Group reports net profit after tax (statutory) attributable to unitholders in accordance with Australian Accounting Standards (AAS). The Responsible Entity considers the non-AAS measure, Funds from Operations (FFO) an important indicator of the underlying earnings of the Group. Regard is also given to Adjusted Funds from Operations (AFFO).

For the year ended 30 June 2017 adjustments to determine FFO have included:

Whitsunday (insurance) In March 2016 the Whitsunday shopping centre was partially destroyed by fire. A total of $12.1 million has been recovered from the insurers of which $7.1 million was received during the year ended 30 June 2017. Of this amount $1.2 million represents loss of income for the year ended 30 June 2017. For financial reporting purposes the receipt of the $7.1 million is treated as part of profit. The amount of $1.2 million which is that part that relates to the loss of income for the year ended 30 June 2017 has been included in FFO and AFFO.
Realised foreign exchange gain As discussed above at Disposals Investment properties New Zealand, the properties previously owned by the Group in New Zealand were sold and settled during the period. Prior to this time exchange differences arising on translation of the Group's interest in the New Zealand properties were taken directly to the foreign currency translation reserve. As a result of the sale and settlement, the foreign currency translation reserve gain of $17.0 million has been recognised in profit but excluded from FFO and AFFO.
Debt restructure costs – The proceeds from the settlement of the sale of the New Zealand properties in July 2016 and September 2016 were used to reduce New Zealand $ denominated debt to nil, with the remainder used to reduce Australian $ denominated debt. As a consequence $3.0 million was incurred to terminate certain fixed interest rate swaps. This amount has been excluded from FFO and AFFO.

	SCA Property Group		Retail Trust
	30 Jun 2017$m	30 Jun 2016$m	30 Jun 2017$m	30 Jun 2016$m
Net profit after tax (statutory) including discontinued operation1Adjustments for non cash items included in statutory profit	319.6	184.7	319.4	184.2
Reverse: Straight-lining of rental income and amortisation of incentivesReverse: Fair value unrealised adjustments	3.1	(0.9)	3.1	(0.9)
- Investment properties	(211.6)	(26.9)	(211.6)	(26.9)
- Derivatives	24.4	(31.2)	24.4	(31.2)
- Share of net profit from associate (SURF)	(1.3)	(0.6)	(1.3)	(0.6)
- Foreign exchange	(6.6)	7.5	(6.6)	7.5
Other Adjustments
Whitsunday Insurance Funds
- Reverse amount received included in statutory profit	(7.1)	(5.0)	(7.1)	(5.0)
- Add: insurance for loss of income	1.2	0.3	1.2	0.3
Reverse: Realised foreign exchange gain	(17.0)	-	(17.0)	-
Discontinued operation:
- Reverse: Straight-lining of rental income and amortisation ofincentives of discontinued operation	-	(0.4)	-	(0.4)
- Reverse: Fair value unrealised adjustments investment properties ofdiscontinued operation	-	(28.0)	-	(28.0)
- Reverse: Debt restructure costs	3.0	-	3.0	-
Add: Distribution received / receivable from associate (SURF 1)	0.7	0.5	0.7	0.5
Reverse: Transaction costs	-	0.1	-	0.1
Funds from Operations	108.4	100.1	108.2	99.6
Less: Maintenance capital expenditure	(3.1)	(3.7)	(3.1)	(3.7)
Less: Incentives (including fit-out incentives) and leasing costs provided	(5.2)	(4.1)	(5.2)	(4.1)
Adjusted Funds from Operations	100.1	92.3	99.9	91.8

5. Contributed equity

Distribution Reinvestment Plan (DRP): The Group has a DRP under which security holders may elect to have their distribution entitlements satisfied by the issue of new securities at the time of the payment of the distribution rather than being paid in cash. The DRP was in place for the distribution declared in December 2016 (paid in January 2017) but was suspended for the distribution declared in June 2016 (paid in August 2016). The DRP will be in operation for the distribution declared on 16 June 2017 (payable on 31 August 2017).

Equity issued during the year was as follows:

August 2016 - Executive security based compensation: On 24 August 2016, the Group issued 734,092 securities at nil consideration to Executives.
December 2016 – Staff security based compensation: On 20 December 2016, the Group issued 11,112 securities at nil consideration to Staff.
January 2017 - Distribution Reinvestment Plan (DRP): The DRP applied to the distribution declared on 14 December 2016 and paid on 30 January 2017. Under this DRP, which was partially underwritten, $18.8 million was raised from the issue of 8,616,851 securities at a price of $2.18.

6. Significant changes and developments during the year

Investment properties - acquisitions and disposals

During the year ended 30 June 2017, SCP completed the acquisition of 8 properties and the disposal of 2 properties in Australia and 14 properties in New Zealand. Details of these are above under the Property Portfolio section.

Funds management

The Group started its funds management business with the commencement of SURF 1 in October 2015. On 2 June 2017 SURF 2 commenced operations by purchasing Katoomba Marketplace and Mittagong Shopping Village from the Group for $55.1 million. The Group has an interest of 28.6% in SURF 2. Additional details are above under the Property Portfolio section.

Investment properties – other

Masters - On 24 August 2016 Woolworths Limited (ASX: WOW) (Woolworths) announced that it had agreed terms to facilitate its exit from Home Improvement (Masters) and that Masters would cease trading at all stores on or before 11 December 2016. The Group's only lease to a Masters was in its subregional centre at Mt Gambier (South Australia). The Group has signed an Agreement for Lease with Bunnings to occupy the former Masters premises at Mount Gambier for an initial term of 12 years at a commencing annual net rental of $0.3 million less than Masters. Additionally the Group has also entered into separate agreements with Home Consortium and with Woolworths Limited which provide for a rental top up for the shortfall in base rent until expiry of the original Masters lease in 2035 or sale of the centre by the Group (whichever occurs first), irrespective of whether Bunnings exercises its options to renew.

The premises are currently being converted to a Bunnings store and the Masters lease will be terminated on the date of commencement of the new Bunnings lease.

Whitsunday – In March 2016 the Whitsunday shopping centre was partially destroyed by fire. The final insurance proceeds have been received and a total of $12.1 million has been recovered from the insurers of which $7.1 million was received during the year ended 30 June 2017 (30 June 2016: $5.0 million).

Kwinana - During the year the Group commenced the redevelopment of Kwinana to establish a third anchor (Coles). Coles is due to commence trading in late October 2017.

Acquisition – 4.9% interest in Charter Hall Retail Trust (ASX: CQR)

During the year the Group also acquired 19.9 million units (which is equivalent to a 4.9% interest) in CQR for $83.8 million. This interest is valued at $81.0 million as at 30 June 2017 (based on the ASX closing share price of CQR on the last trading day in June 2017 of $4.07). Additionally during the year ended 30 June 2017 the Group has received a distribution of $2.8 million in January 2017 and the Group is entitled to a further distribution on its investment of 14.0 cents per unit or $2.8 million in respect of the period ended 30 June 2017. At 30 June 2017 for financial reporting purposes this investment is treated in the balance sheet as an Investment – available for sale.

Capital management - debt

A$ medium term notes (A$MTN) – During the year the Group issued AUD denominated unsecured medium term notes with aggregate face value of $225.0 million (A$ MTN). These notes were part of two separate series. The first series notes are fixed rate notes with a coupon of 3.75% and expire in April 2021. With respect to these notes $50.0 million was issued. The second series are fixed rate notes with a coupon of 3.90% and expire in June 2024. With respect to these notes $175.0 million was issued.

Swap termination costs – The proceeds from the settlement of the sale of the New Zealand properties in July 2016 and September 2016 were used to repay New Zealand $ denominated debt, with the remainder converted to Australian $ and repatriated to Australia where it was initially used to reduce Australian $ denominated debt. As a consequence $3.0 million was incurred to terminate certain fixed interest rate swaps.

Gearing - The Group's gearing ratio is determined by:

Finance debt, where the US$ denominated debt is recorded as the A$ amount received and economically hedged in A$, net of cash, divided by;
Total tangible assets net of cash and derivatives.

The Group maintains a prudent approach to managing the balance sheet with gearing of 31.8% as at 30 June 2017 (30 June 2016: 34.0%). The Group's target gearing range is 30% to 40%, however the Group has a preference for gearing to remain below 35% at this point in the cycle.

Facility limit and undrawn facilities

The total undrawn debt and cash available to the Group at 30 June 2017 was $264.6 million (30 June 2016: $93.2 million).

The average debt maturity at 30 June 2017 was 5.0 years (30 June 2016: 5.7 years).

7. Major business risk profile

Risk	Description	Mitigation
Anchor tenant concentration	A decline in credit quality of anchortenants; change in anchor tenants'network plans e.g. store closures, rateof new store rollouts; and/or reductionin anchor tenant sales growth maylead to decrease in earnings stability.	Actively manage concentration risk within the portfoliowith a targeted acquisition and divestment program.Adapt to changing market dynamics, including: onlineshopping; and click & collect, with directed assetrefurbishment and/or re-development plans.
Speciality leasing	Negative impact on rental incomefrom increase in lease vacancies,defaults or non-renewals.	Actively manage the portfolio by: continuing to remixtenancies towards non-discretionary categories;continuing to ensure diversified sources of specialtytenant income; building annual rental increases intoleases; and utilising technological developments eg dataanalytics to support centre marketing strategies
Capital and valuemanagement	Lack of availability of capital or debt tofund acquisitions, inability to refinancedebt and/or material increase in costsassociated with debt funding maynegatively impact on financialperformance. Decrease in propertyvaluations may impact on financingcovenants.	The availability of capital for acquisitions and refinancingis managed by: a conservative gearing policy;diversification of funding sources eg bank debt, corporatenote program; maintain and build new equityrelationships; development of key banking relationships;staggered debt maturities across multiple years; andactively managed debt maturities to ensure debtmaturities can be funded. Interest rate exposures aremanaged via the Group's hedging policy and strategy.Risk of breaching financing covenants is managed viaforecasting of compliance with covenants includingscenario testing for expected changes in key covenantinputs. Debt markets are also monitored including forcurrent debt pricing and availability.
Poor performing acquisitions	Acquisitions to grow the portfolio donot fit with core strategy and/or arenot value accretive.	A highly experienced management team ensures thatacquisitions of new retail centres fit with the core businessstrategy and are value accretive. The Board's InvestmentCommittee oversees the rigorous due diligence andvaluation process which is undertaken for each proposedacquisition. All acquisitions are approved by the Board.

8. Business strategies and prospects for future financial years

The Group's core strategy is to invest in, manage, and develop, a geographically diverse portfolio of quality neighbourhood and sub-regional retail assets, anchored by long-term leases to quality tenants with a strong bias towards the non-discretionary retail sector.

The Group is focused on achieving growing and resilient cash flows from non-discretionary and defensive retailing sectors. This is to support, secure and grow distributions to the Group's securitiesholders. It intends to achieve this by:

Maximising the net operating income from its existing properties. This will include increasing the average rent per square metre from specialty tenants over time.
Pursuing selected property refurbishment, development and acquisition opportunities, consistent with its core strategy.
Diversifying and developing other sustainable income streams such as from funds management. (The second managed fund (SURF 2) commenced on 2 June 2017.)
Maintaining an appropriate capital structure to balance cost of capital and risk profile.

It is noted that property valuation changes, movements in the fair value of derivative financial instruments and in foreign exchange, availability of funding and changes in interest rates may have a material impact on the Group's results in future years, however, these cannot be reliably measured at the date of this report.

9. Environmental regulations

The Directors of the Responsible Entity are satisfied that adequate systems are in place for the management of the Group's environmental responsibility and compliance with various licence requirements and regulations. Further, the Directors of the Responsible Entity are not aware of any material breaches to these requirements and, to the best of their knowledge, all activities have been undertaken in compliance with environmental requirements.

10. Indemnification and insurance of Directors, Officers and Auditor

The Trusts have paid premiums for Directors' and Officers' liability insurance in respect of all Directors, Secretaries and Officers. In accordance with usual commercial practice, the insurance contract prohibits disclosure of details relating to the nature of the liabilities covered by the insurance, the limit of indemnity and the amount of the premiums paid under the policy.

The Trusts' constitutions provide that in addition to any indemnity under any law, but subject to the Corporations Act 2001, the Responsible Entity has a right of indemnity out of the assets of the Trusts on a full indemnity basis in respect of any liability incurred by the Responsible Entity in properly performing any of its powers or duties in relation to the Trusts.

The auditor of the Group is not indemnified out of the assets of the Group.

11. Auditor's Independence Declaration

A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 13.

12. Audit and non-audit fees

Details of the amounts paid or payable to the auditor (Deloitte Touche Tohmatsu) for audit and non-audit services provided are detailed in note 30 of the Financial Reports.

The Directors are satisfied that the provision of non-audit services, during the year, by the auditor is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.

The Directors are of the opinion that the services disclosed in note 30 of the Financial Report do not compromise the external auditor's independence, based on the following reasons:

All non-audit services have been reviewed and appropriately approved to ensure that they do not impact the integrity and objectivity of the auditor.
None of the services undermine the general principles relating to auditor independence as set out in APES 110 'Code of Ethics for Professional Accountants' issued by the Accounting Professional & Ethics Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the Group, acting as advocate for the Group or jointly sharing risks and rewards.

13. Subsequent events

Since the end of the period, the Directors of the Responsibility Entity are not aware of any matter or circumstance not otherwise dealt with in this report or the consolidated financial statements that has significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial periods.

14. Rounding of amounts

In accordance with Legislative Instrument 2016/191 issued by the Australian Securities and Investments Commission relating to the rounding off of amounts in the financial statements, amounts in the financial statements have been rounded to the nearest hundred thousand dollars in accordance with that Legislative Instrument, unless otherwise indicated.

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

Chair Sydney 7 August 2017

Deloitte Touche Tohmatsu A.C.N. 74 490 121 060

Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1217 Australia

DX 10307SSE Tel: +61 (0) 2 9322 7000 Fax: +61 (0) 2 9322 7001 www.deloitte.com.au

7 August 2017

The Board of Directors Shopping Centres Australasia Property Group RE Limited as Responsible Entity for Shopping Centres Australasia Property Management Trust and Shopping Centres Australasia Property Retail Trust Level 5, 50 Pitt Street Sydney NSW 2000

Dear Directors

Shopping Centres Australasia Property Management Trust and Shopping Centres Australasia Property Retail Trust

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Shopping Centres Australasia Property Group RE Limited as Responsible Entity for Shopping Centres Australasia Property Management Trust and Shopping Centres Australasia Property Retail Trust.

As lead audit partner for the audit of the financial statements of Shopping Centres Australasia Property Management Trust and Shopping Centres Australasia Property Retail Trust for the year ended 30 June 2017, I declare that to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii) any applicable code of professional conduct in relation to the audit.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

AG Collinson Partner Chartered Accountants

Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu Limited.

Shopping Centres Australasia Property Group Consolidated Statements of Profit or Loss

For the year ended 30 June 2017

		SCA Property Group		Retail Trust
	Notes	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016
		$m	$m	$m	$m
Continuing operations
Revenue
Rental income		194.0	180.7	194.0	180.7
Other income		3.4	-	3.4	-
Fund management revenue		1.3	1.2	-	-
Insurance income	5	7.1	5.0	7.1	5.0
Distribution income	29	5.6	-	5.6	-
		211.4	186.9	210.1	185.7
Expenses
Property expenses		(61.7)	(56.0)	(61.7)	(56.0)
Corporate costs		(12.0)	(9.9)	(11.5)	(9.6)
		137.7	121.0	136.9	120.1
Unrealised gain/(loss) including change in fair
value through profit or loss
- Investment properties	10	211.6	26.9	211.6	26.9
- Derivatives		(24.4)	31.2	(24.4)	31.2
- Foreign exchange		6.6	(7.5)	6.6	(7.5)
- Share of net profit from associate	27	1.3	0.6	1.3	0.6
Realised Gain - Foreign Exchange		17.0	-	17.0	-
Transaction costs		-	(0.1)	-	(0.1)
Earnings before interest and tax (EBIT)		349.8	172.1	349.0	171.2
Interest income		0.3	0.2	0.3	0.2
Finance costs	6	(28.6)	(22.7)	(28.6)	(22.7)
Net profit before tax		321.5	149.6	320.7	148.7
Tax	7	(0.6)	(0.4)	-	-
Net profit after tax from continuing operations		320.9	149.2	320.7	148.7
Discontinued operations
Net profit after tax from discontinued operation	8	(1.3)	35.5	(1.3)	35.5
Net profit after tax		319.6	184.7	319.4	184.2
Net profit after tax attributable to security holders of:
SCA Property Management Trust		0.2	0.5
SCA Property Retail Trust (non-controlling interest)		319.4	184.2
		319.6	184.7

Distributions per stapled security (cents)
Distributions per unit	3	13.1	12.2	13.1	12.2
Basic earnings per stapled security (cents)	4
Continuing operations		43.5	20.5	43.5	20.4
Discontinued operation		(0.2)	4.9	(0.2)	4.9
Continuing and discontinuing		43.3	25.4	43.3	25.3
Diluted earnings per stapled security (cents)	4
Continuing operations		43.3	20.4	43.3	20.3
Discontinued operation		(0.2)	4.9	(0.2)	4.9
Continuing and discontinuing		43.2	25.3	43.1	25.2
Basic earnings per security (cents)	4
SCA Property Management Trust		-	0.1

Diluted earnings per unit of (cents)	4
SCA Property Management Trust		-	0.1

Shopping Centres Australasia Property Group Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the year ended 30 June 2017

		SCA Property Group		Retail Trust
	Notes	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016
		$m	$m	$m	$m
Net profit after tax for the year		319.6	184.7	319.4	184.2
Other comprehensive income
Items that may be classified subsequentlyto profit or loss
Movement in foreign currency translationreserves:
Net exchange differences on translationof foreign operations up to date ofdisposal		1.7	11.5	1.7	11.5
Reclassification of foreign currencytranslation reserve		(17.0)	-	(17.0)	-
Movement on revaluation of Investment -available for sale	14	(2.8)	-	(2.8)	-
Total comprehensive income		301.5	196.2	301.3	195.7
Total comprehensive income for the periodattributable to unitholders of:
SCA Property Management Trust		0.2	0.5
SCA Property Retail Trust (noncontrolling interest)		301.3	195.7
Total comprehensive income		301.5	196.2

The above Consolidated Statements of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

Shopping Centres Australasia Property Group Consolidated Balance Sheets

As at 30 June 2017

		SCA Property Group		Retail Trust
	Notes	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016
		$m	$m	$m	$m
Current assets
Cash and cash equivalents	28	3.6	3.8	2.0	2.4
Receivables	9	22.4	13.3	21.4	13.2
Derivative financial instruments	25	0.3	3.3	0.3	3.3
Other assets	26	1.5	5.7	1.5	5.5
		27.8	26.1	25.2	24.4
Assets of disposal group held for sale	8	-	254.0	-	254.0
Total current assets		27.8	280.1	25.2	278.4
Non-current assets
Investment properties	10	2,364.6	1,888.0	2,364.6	1,888.0
Derivative financial instruments	25	56.5	82.5	56.5	82.5
Investment in associates	27	17.2	8.1	17.2	8.1
Investment - available for sale	29	81.0	-	81.0	-
Total non-current assets		2,519.3	1,978.6	2,519.3	1,978.6
Total assets		2,547.1	2,258.7	2,544.5	2,257.0
Current liabilities
Payables	11	43.4	23.0	50.0	29.2
Distribution payable	3	49.8	45.5	49.8	45.5
Derivative financial instruments	25	0.1	1.2	0.1	1.2
Provisions		2.4	1.5	-	-
Liabilities of disposal group held for sale	8	-	140.2	-	140.2
Total current liabilities		95.7	211.4	99.9	216.1
Non-current liabilities
Derivative financial instruments	25	-	3.5	-	3.5
Interest bearing liabilities	12	817.4	634.7	817.4	634.7
Provisions		0.3	0.2	-	-
Total non-current liabilities		817.7	638.4	817.4	638.2
Total liabilities		913.4	849.8	917.3	854.3
Net assets		1,633.7	1,408.9	1,627.2	1,402.7
Equity
Contributed Equity	13	7.5	7.4	1,235.3	1,216.6
Reserves	14	-	-	0.2	17.0
Accumulated profit/(loss)	15	(1.0)	(1.2)	391.7	169.1
Non-controlling interest		1,627.2	1,402.7	-	-
Total Equity		1,633.7	1,408.9	1,627.2	1,402.7

The above Consolidated Balance Sheets should be read in conjunction with the accompanying notes.

Shopping Centres Australasia Property Group Consolidated Statements of Changes in Equity

For the year ended 30 June 2017

		SCA Property Group
		Contributedequity1	Accumulatedprofit/(loss)	Attributable toowners of parent	Non-controllinginterests	Total
	Notes	$m	$m	$m	$m	$m
Balance at 1 July 2016		7.4	(1.2)	6.2	1,402.7	1,408.9
Net profit after tax		-	0.2	0.2	319.4	319.6
Other comprehensive income for the period, net of tax		-	-	-	(18.1)	(18.1)
Total comprehensive income		-	0.2	0.2	301.3	301.5
Transactions with unitholders in their capacity as equityholders:
Employee share based payments	14	-	-	-	1.3	1.3
Equity issued	13	0.1	-	0.1	18.7	18.8
Distributions paid and payable	3	-	-	-	(96.8)	(96.8)
		0.1	-	0.1	(76.8)	(76.7)
Balance at 30 June 2017		7.5	(1.0)	6.5	1,627.2	1,633.7
Balance at 1 July 2015		7.3	(1.7)	5.6	1,271.2	1,276.8
Net profit after tax for the period		-	0.5	0.5	184.2	184.7
Other comprehensive income for the period, net of tax		-	-	-	11.5	11.5
Total comprehensive income for the period		-	0.5	0.5	195.7	196.2
Transactions with unitholders in their capacity as equityholders:
Employee share based payments	14	-	-	-	0.7	0.7
Equity issued	13	0.1	-	0.1	24.2	24.3
Distributions payable	3	-	-	-	(89.0)	(89.0)
		0.1	-	0.1	(64.1)	(64.0)
Balance at 30 June 2016		7.4	(1.2)	6.2	1,402.7	1,408.9

	Retail Trust






















Balance at 30 June 2016	1,216.6	-	15.3	1.7	169.1	1,402.7

1 Contributed equity is net of equity raising costs

The above Consolidated Statements of Changes in Equity should be read in conjunction with the accompanying notes.

Shopping Centres Australasia Property Group Consolidated Statements of Cash Flows

For the year ended 30 June 2017

Continuing and discontinued operation		SCA Property Group		Retail Trust
	Notes	30 Jun 2017$m	30 Jun 2016$m	30 Jun 2017$m	30 Jun 2016$m
Cash flows from operating activities
Property and other income received (inclusive of GST)		222.9	215.7	221.6	214.4
Insurance proceeds		7.1	5.0	7.1	5.0
Property expenses paid (inclusive of GST)		(64.5)	(60.0)	(64.5)	(60.0)
Corporate costs paid (inclusive of GST)		(11.8)	(12.8)	(10.8)	(11.4)
Interest received		0.3	0.2	0.3	0.2
Finance costs paid		(28.7)	(29.8)	(28.7)	(29.8)
Transaction costs paid		-	(0.1)	-	(0.1)
Taxes paid including GST		(12.9)	(15.9)	(12.7)	(15.7)
Net cash flow from operating activities	16	112.4	102.3	112.3	102.6
Cash flows from investing activities
Payments for investment properties purchased andcapital expenditure		(314.4)	(172.3)	(314.4)	(172.3)
Net proceeds from investment properties sold		311.0	60.9	311.0	60.9
Payments for other assets		(83.8)	-	(83.8)	-
Distribution received from associate		0.6	0.3	0.6	0.3
Investments in associates		(8.5)	(8.0)	(8.5)	(8.0)
Distribution received from available for sale investment		2.8	-	2.8
Net cash flow from investing activities		(92.3)	(119.1)	(92.3)	(119.1)
Cash flow from financing activities
Proceeds from equity raising		18.8	24.3	18.7	24.2
Net proceeds from borrowings		583.2	93.2	583.2	93.2
Repayment of borrowings		(530.1)	(15.0)	(530.1)	(15.0)
Distributions paid		(92.5)	(85.3)	(92.5)	(85.3)
Net cash flow from financing activities		(20.6)	17.2	(20.7)	17.1

Net (decrease) / increase in cash and cash equivalents held		(0.5)	0.4	(0.7)	0.6
Cash and cash equivalents at the beginning of the year		4.1	3.7	2.7	2.1
Cash and cash equivalents at the end of the year		3.6	4.1	2.0	2.7

The above Consolidated Statements of Cash Flows should be read in conjunction with the accompanying notes.

1. Corporate information

Shopping Centres Australasia Property Group (the Group) comprises the stapling of the units in two Australian managed investment schemes, Shopping Centres Australasia Property Management Trust (Management Trust) (ARSN 160 612 626) and Shopping Centres Australasia Property Retail Trust (Retail Trust) (ARSN 160 612 788) (collectively the Trusts).

The Responsible Entity of both Trusts is Shopping Centres Australasia Property Group RE Limited (ABN 47 158 809 851; AFSL 426603) (Responsible Entity).

The Financial Statements of the Group comprise the consolidated Financial Statements of the Management Trust and its controlled entities including the Retail Trust and its controlled entities. The Financial Statements of the Retail Trust comprise the consolidated Financial Statements of the Retail Trust and its controlled entities. The Directors of the Responsible Entity have authorised the Financial Report for issue on 7 August 2017.

2. Significant accounting policies

(a) Basis of preparation

In accordance with AASB 3 Business Combinations, the stapling arrangement discussed above is regarded as a business combination and Shopping Centres Australasia Management Trust has been identified as the Parent for preparing consolidated Financial Statements.

These Financial Statements are combined financial statements and accompanying notes of both Shopping Centres Australasia Property Group and the Shopping Centres Australasia Property Retail Trust Group. The Financial Statements have been presented in Australian dollars unless otherwise stated.

Historical cost convention

The Financial Statements have been prepared on the basis of historical cost, except for certain non-current assets and financial instruments that are measured at fair value.

Going concern

These consolidated financial statements are prepared on the going concern basis. In preparing these consolidated financial statements the Directors note that the Group and Retail Trust are in a net current asset deficiency position, due to minimal cash and cash equivalents, as it is the policy of the Group and Retail Trust to use surplus cash to repay debt. At 30 June 2017 the Group and Retail Trust have the ability to drawdown sufficient funds to pay the current liabilities and the capital commitments (refer note 18), having available cash and non-current undrawn debt facilities of $264.6 million.

Rounding

i. Statement of compliance

The Financial Report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (the Board or AASB) and the Corporations Act 2001.

The Financial Report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

For the purposes of preparing the financial statements, the Group is a for-profit entity. The Financial Report has been presented in Australian dollars unless otherwise stated.

ii. New and amended accounting standards and interpretations

In the current year, the Group has applied amendments to AASBs issued by the Australian Accounting Standards Board (AASB) that are mandatorily effective for an accounting period that begins on or after 1 July 2016, and therefore relevant for the current year end. These amendments are below. The application of these amendments does not have any material impact on the disclosures or the amounts recognised in the Group's consolidated financial statements.

AASB 2015-3 'Amendments to Australian Accounting	The amendment completes the withdrawal of references to AASB
Standards arising from the Withdrawal of AASB 1031	1031 in all Australian Accounting Standards and Interpretations,
Materiality'	allowing that Standard to effectively be withdrawn.

For the year ended 30 June 2017

Application of new and revised Accounting Standards not yet effective

At the date of authorisation of the financial statements, the Standards and Interpretations that were issued but not yet effective are listed below. The Group does not intend to adopt any of these announcements before their effective dates.

Standard/Interpretation and nature of the change and impact	Effective forannual reportingperiods beginningon or after	Expected to beinitiallyapplied in thefinancial yearending
AASB 9 'Financial Instruments' (and the relevant amending standards) (AASB 9): Thestandard introduces a number of new and revised classifications of financial assetsand liabilities compared to AASB 139 'Financial Instruments: Recognition andMeasurement' and addresses the classification, measurement and de recognition ofthese financial assets and financial liabilities. AASB 9 introduces new rules for hedgeaccounting and a new methodology for measurement of impairment of financial assetsincluding accounting for expected credit loss.	1 January 2018	30 June 2019
The Group does not apply hedge accounting, recognises financial assets and liabilitiesto which AASB 9 will apply at amortised cost under AASB 139, derivatives at fair valuethrough profit or Loss, and investments - available for sale at fair value through OtherComprehensive Income. The Group has commenced an assessment of the impact ofthis change on the recognition and measurement of financial assets and liabilities andrelated disclosures in the financial statements. At the date of this report thisassessment is not complete.
AASB 15 'Revenue from Contracts with Customers', AASB 2014-5 'Amendments toAustralian Accounting Standards arising from AASB 15', AASB 2015-8 'Amendmentsto Australian Accounting Standards – Effective date of AASB 15' (AASB 15): AASB 15will replace AASB 118 'Revenue' which covers revenue arising from the sale of goodsand the rendering of services and AASB 111 'Construction Contracts' which coversconstruction contracts. The new standard introduces a five-step model to determinewhen and how much revenue should be recognised. The standard permits either a fullretrospective or a modified retrospective approach for the adoption. The Group hascommenced an assessment of the impact of this change on the recognition andmeasurement of revenues of the Group and related disclosures in the financialstatements. At the date of this report this assessment is not yet complete. Thepreliminary assessment of the existing contractual arrangements that deal withrevenue indicate that the changes from the new standard are not expected to have amaterial impact on the Group.	1 January 2018	30 June 2019
AASB 16 'Leases' (AASB 16): AASB 16 introduces new requirements in relation tolease classification and recognition, measurement and presentation and disclosures ofleases for lessees and lessors. For lessees a (right-of-use) asset and a lease liabilitywill be recognised on the balance sheet in respect of all leases subject to limitedexceptions. The accounting for lessors will not significantly change. Given that theGroup is not a party to any significant lease agreements (as lessee), and on the basisthat this remains the same, the new standard is not expected to have a material impacton the recognition and measurement of lease-related revenues, assets or liabilities.	1 January 2019	30 June 2020

At the date of report, there are no pronouncements approved by the IASB/IFRIC that have yet to be issued by the AASB.

(b) Basis of consolidation

The consolidated Financial Statements of Shopping Centres Australasia Property Group incorporate the assets and liabilities of Shopping Centres Australasia Property Management Trust (the Parent) and all of its subsidiaries, including Shopping Centres Australasia Property Retail Trust and its subsidiaries. Shopping Centres Australasia Property Management Trust has been identified as the parent entity in relation to the stapling. The results and equity of Shopping Centres Australasia Property Retail Trust (which is not directly owned by Shopping Centres Australasia Property Management Trust) have been treated and disclosed as a non-controlling interest. Whilst the results and equity of Shopping Centres Australasia Property Retail Trust are disclosed as a non-controlling interest, the unit holders of Shopping Centres Australasia Management Trust are the same as the unit holders of Shopping Centres Australasia Property Retail Trust.

These Financial Statements also include a separate column representing the Financial Statements of Shopping Centres Australasia Property Retail Trust, incorporating the assets and liabilities of Shopping Centres Australasia Property Retail Trust and all of its subsidiaries.

Subsidiaries are all entities over which the Group has control. Control is defined as having rights to variable returns from involvement in the investee and having the ability to affect those returns through its power over the investee.

Where an entity began or ceased to be a controlled entity during the reporting year, the assets, liabilities and results are consolidated only from the date control commenced or up to the date control ceased.

In preparing the consolidated Financial Statements, all intra-group transactions and balances, including unrealised profits arising thereon, have been eliminated in full.

Investments in associates

Associates are entities over which the Group has significant influence but not control. Investments in associates are accounted for in the consolidated balance sheet by using the equity method of accounting after initially being recognised at cost. Under the equity accounted method, the Group's share of the associates' post acquisition net profit after income tax expense is recognised in the consolidated statement of comprehensive income. Distributions received or receivable from associates are recognised in the consolidated financial report as a reduction of the carrying amount of the investment.

(c) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and can be reliably measured. Rental income from investment properties is accounted for on a straight line basis over the lease term. Contingent rental income is recognised as income in the period in which it is earned. If not received at balance sheet date, revenue is reflected in the balance sheet as receivable and carried at its recoverable value. Recoveries from tenants are recognised as income in the year the applicable costs are accrued.

Certain tenant allowances that are classified as lease incentives are recorded as part of investment properties and amortised over the term of the lease. The amortisation is recorded against property income.

Where revenue is obtained from the sale of properties, it is recognised when the significant risks and rewards have transferred to the buyer. For conditional exchanges, sales are recognised when the conditions are satisfied.

All other revenues are recognised on an accruals basis.

(d) Finance costs

Finance costs include interest payable on bank overdrafts and short-term and long-term borrowings, payments on derivatives and amortisation of ancillary costs incurred in connection with arrangement of borrowings.

Finance costs are expensed as incurred except to the extent that they are directly attributable to the acquisition, construction or production of a qualifying asset. Qualifying assets are assets that necessarily take a substantial period of time to reach the stage of their intended use or sale.

In these circumstances, borrowing costs are capitalised to the cost of the assets until the assets are ready for their intended use or sale. Total interest capitalised within the Group must not exceed the net interest expense of the Group in any year, and project values, including all capitalised interest attributable to projects, must continue to be recoverable. In the event that development is suspended for an extended period of time, the capitalisation of borrowing costs is also suspended.

(e) Taxation

The Group comprises taxable and non-taxable entities. A liability for current and deferred taxation is only recognised in respect of taxable entities that are subject to income tax and potential capital gains tax as detailed below.

The Retail Trust is the property owning trust and is treated as a trust for Australian tax purposes. Under current Australian income tax legislation, the Retail Trust is not liable to Australian income tax, including capital gains tax, provided that members are presently entitled to the income of the Trust as determined in accordance with the Trust's constitution. The Retail Trust's New Zealand entities are subject to New Zealand tax on their earnings. Distributions paid by the New Zealand entity to the Retail Trust will not be subject to New Zealand withholding tax (or if there is any reduction in Australian receipts because of any withholding tax it will be reimbursed by way of a supplementary dividend) to the extent the distributions are paid out of earnings that have been subject to New Zealand tax.

Management Trust is treated as a company for Australian tax purposes.

Deferred tax is provided on all temporary differences on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

(f) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST (or equivalent tax in overseas locations) except where the GST incurred on purchases of goods and services is not recoverable from the tax authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable.

Receivables and payables are stated with the amounts of GST included. The net amount of GST receivable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified within operating cash flows.

(g) Discontinued operation and disposal group held for sale

The Group has classified the New Zealand business as a discontinued operation. A discontinued operation represents a separate major line of business, or geographical area of operations, which is a component of the entity that has been disposed of or is classified as held for sale. The New Zealand business was disposed of during the year. The results of the discontinued operation are presented separately on the face of the Income Statement.

(h) Foreign currency

The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purposes of the consolidated financial statements, the results and financial position of each group entity are expressed in Australian dollars. Australian dollars is the presentation currency for the consolidated financial statements.

Foreign currency transactions are converted to Australian dollars at the prevailing exchange rates at the date of those transactions. Amounts payable and receivable in foreign currency at balance sheet date are translated to Australian dollars at the prevailing exchange rates at that date. Exchange differences arising from amounts receivable and payable are recognised in profit and loss in the period in which they arise, except as noted below.

The balance sheets of foreign subsidiaries are translated at the prevailing exchange rates at balance sheet date and the income statement of foreign subsidiaries are translated at average exchange rates for the period. Exchange differences arising on translation of the interest in foreign operations are taken directly to the foreign currency translation reserve. On consolidation, exchange differences and the related tax effect on foreign currency loans denominated in foreign currency, which hedge net investments in foreign operations and equity accounted entities, are taken directly to the foreign currency translation reserve.

(i) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand and short term deposits with an original maturity of 90 days or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(j) Trade and other receivables

Trade and other receivables are carried at original invoice amount, less provision for doubtful debts, and are usually due within 30 days. Collectability of trade and other receivables is reviewed on an ongoing basis. Individual debts that are determined to be uncollectable are written off when identified. An impairment provision for doubtful debts is recognised when there is evidence that the Group will not be able to collect the receivables.

(k) Investment properties

Investment properties comprise investment interest in land and buildings (including integral plant and equipment) held for the purpose of letting to produce rental income, including properties that are under construction for future use as investment properties.

Initially, investment properties are measured at cost including transaction costs. Subsequent to initial recognition, the investment properties are stated at fair value. Fair value of investment properties is the price at which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction. A "willing seller" is neither a forced seller nor one prepared to sell at a price not considered reasonable in the current market. The best evidence of fair value is given by current prices in an active market suitable for similar property in the same location and condition. Gains and losses arising from changes in the fair values of investment properties are recognised in profit and loss in the period in which they arise.

At each reporting date, the carrying values of the investment properties are assessed by the Directors and where the carrying value differs from the Directors' assessment of fair value, an adjustment to the carrying value is recorded as appropriate.

The Directors' assessment of fair value of each investment property takes into account latest independent valuations, with updates taking into account any changes in estimated yield, underlying income and valuations of comparable properties. In determining the fair value, the capitalisation of net income method and / or the discounting of future net cash flows to their present value have been used, which are based upon assumptions and judgements in relation to future rental income, property capitalisation rate or estimated yield and make reference to market evidence of transaction prices for similar properties.

Investment properties under development are classified as investment property and stated at fair value at each reporting date. Fair value is assessed with reference to reliable estimates of future cash flows, status of the development and the associated risk profile.

Land and buildings are considered as having the function of an investment and therefore are regarded as a composite asset, the overall value of which is influenced by many factors, the most prominent being income yield, rather than by the reduction in value of the building content due to the passing of time. Accordingly, the buildings and all components thereof, including integral plant and equipment for the building, are not depreciated.

Incentives such as cash, rent-free periods, lessee or lessor owned fit outs may be provided to lessees to enter into an operating lease. Leasing fees may also be paid for the negotiation of leases. These incentives and lease fees are capitalised to the investment property and are amortised on a straight-line basis over the lesser of the term of the lease and the useful life of the fit out, as a reduction of rental income. The carrying amounts of the lease incentives and leasing fees are reflected in the fair value of investment properties.

(l) Recoverable amount of assets

At each reporting date, an assessment is made as to whether there is any indication that an asset may be impaired. Where an indicator of impairment exists, the recoverable amount is estimated and if the carrying amount of that asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

(m) Payables

Trade and other payables are carried at amortised cost and due to their short term nature they are not discounted.

Distribution

Distributions payable are recognised in the reporting period in which they are declared, determined or publicly recommended by the Directors. Where such distributions have not been paid at reporting date they are recognised as a distribution payable.

All distributions will be paid out of retained earnings / accumulated losses, whether they are capital or income in nature from a tax perspective.

(n) Provisions

A provision is recognised when a present legal or constructive obligation exists as a result of a past event and it is probable that a future sacrifice of economic benefit will be required to settle the obligation, the timing or amount of which is uncertain.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (where the effect of the time value of money is material).

(o) Employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave when it is probable that settlement will be required and they are capable of being measured reliably. Liabilities recognised in respect of long term employee benefits are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to reporting date.

Equity based compensation arrangements

Equity based payments to employees are measured at the fair value of the equity instrument at the grant date. The fair value determined at the grant date is expensed on a straight line basis over the vesting period, based on the Group's estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest and adjusts for non-market vesting conditions. The impact of the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity settled employee benefits reserve.

(p) Interest bearing liabilities

Borrowings are initially recognised at fair value, net of transaction costs incurred, and subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit and loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are deferred and expensed over the term of the respective agreement.

(q) Derivative and other financial instruments

The Group holds derivative financial instruments to hedge foreign currency and interest rate risk exposures arising from operational, financing and investing activities.

The Group has set defined policies and has implemented a comprehensive hedging program to manage interest and exchange rate risk. Derivative financial instruments are transacted to achieve the economic outcomes in line with the Group's treasury policy. Derivative instruments are not transacted for speculative purposes. Derivative financial instruments are recognised initially at cost and remeasured at fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. The Group does not designate any derivative financial instrument as hedging instruments.

Where applicable, the fair value of currency and interest rate options and cross currency interest rate swaps are calculated by reference to relevant market rates for contracts with similar maturity profiles. The fair value of interest rate swaps are determined by reference to applicable market yield curves and include counterparty risk.

Changes in fair value of derivatives is recognised in the profit and loss.

(r) Contributed equity

Issued and paid up capital is recognised at the fair value of the consideration received. Any transaction costs arising on the issue of ordinary units are recognised in equity as a reduction of the proceeds received.

(s) Earnings per security

Basic earnings per unit or stapled unit (or security) is calculated as profit after tax attributable to unit or security holders divided by the weighted average number of ordinary units or securities issued.

Diluted earnings per unit or security is calculated as profit after tax attributable to security holders divided by the weighted average number of ordinary securities and dilutive potential ordinary securities.

(t) Segment reporting

Segment information is presented on the same basis as that used for internal reporting purposes. The segments are reported in a manner that is consistent with internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Board of Directors of the Responsible Entity.

(u) Investment – Available for sale

Investment Available-for-sale assets are initially measured at cost at date of acquisition, which include transaction costs, and subsequent to initial recognition, they are carried at fair value. Unrealised gains and losses arising from changes in the fair value of non-monetary securities classified as available-for-sale are recognised in equity in the available-for-sale investments revaluation reserve. When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in profit or loss as gains and losses from the sale or impairment of investment securities.

(v) Use of estimates and judgements

The preparation of consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

The significant judgements and estimates used in the preparation of these financial statements are outlined below.

Judgement – Classification and carrying value of investments

The SCA Property Group controls an entity when the Group 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. Critical judgements are made in assessing whether an investee entity is controlled or subject to significant influence or joint control. These judgements include an assessment of the nature, extent and financial effects of the Group's interest in joint arrangements and associates, including the nature and effects of its contractual relationship with the entity or with other investors. Associates are entities over which the Group has significant influence but not control.

Judgement - Selection of parent entity

In determining the parent entity of the Shopping Centre Australasia Property Group, the Directors considered various factors including asset ownership, debt obligation, management and day to day responsibilities. The Directors concluded that management activities were more relevant in determining the parent.

Shopping Centres Australasia Property Management Trust has been determined as the parent of the Shopping Centres Australasia Property Group.

Estimate - Valuation of property investments

Critical judgements are made by the Directors in respect of the fair value of investment properties including properties under construction and those that are classified as assets held for sale. The fair value of these investments are reviewed regularly by management with reference to independent property valuations, recent transactions and market conditions existing at reporting date, using generally accepted market practices.

For the year ended 30 June 2017

The major critical assumptions underlying estimates of fair values are those relating to the capitalisation rate and to a lesser extent the discount rate. Other assumptions of lesser importance include net passing rent, gross market rent, net market rent, average market rental growth, and terminal yield. If there is any change in these assumptions or economic conditions, the fair value of the investment properties may differ. See further disclosure regarding assumptions used in valuation of investment properties in note 10.

Estimate - Valuation of financial instruments

The fair value of derivatives assets and liabilities are based on assumptions of future events and involve significant estimates. The basis of valuation for the Group's derivatives are set out in note 25. The value of derivatives may differ in future reporting periods due to the passing of time and / or changes in market rates including interest rates, foreign exchange rates and market volatility.

Estimate – Valuation of investment – available for sale

In the case of quoted traded listed equity securities classified as available for sale, the fair values are based on the closing price. A significant or prolonged decline in fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for investment available-for-sale assets, the cumulative loss measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss is removed from equity and recognised in profit or loss.

3. Distributions paid and payable

	Cents per unit	Total amount$m	Date of payment or expecteddate of payment
2017 SCA Property Group & Retail Trust
Interim distribution1	6.4	47.0	30 January 2017
Final distribution2	6.7	49.8	31 August 2017
	13.1	96.8
2016 SCA Property Group & Retail Trust
Interim distribution	6.0	43.5	29 January 2016
Final distribution	6.2	45.5	31 August 2016
	12.2	89.0

1 The interim distribution of 6.4 cents per security was declared on 14 December 2016 and was paid on 30 January 2017.

2 The 2017 final distribution of 6.7 cents per security was declared on 16 June 2017 and is expected to be paid on or about 31 August 2017. The tax components will be advised on or about that time.

The Management Trust has not declared or paid any distributions. The Group has a Distribution Reinvestment Plan (DRP) in place. The DRP was in place for the distribution declared in December 2016 (paid in January 2017) and for the distribution declared in June 2017 (expected to be paid on or about 31 August 2017).

Under the DRP Plan Rules the DRP issue price was determined at a discount of 1.0% to the arithmetic average of the daily volume weighted average market price of security traded on the ASX during the 10 business days commencing on the business day after the record date. The equity raised through the DRP on 30 January 2017 was $18.8 million by the issue of 8,616,851 securities at a price of $2.18.

For the year ended 30 June 2017

4. Earnings per security

	SCA Property Group			Retail Trust		Management Trust
	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016
Per stapled unit (security) or unit
Profit from continuing operations	320.9	149.2	320.7	148.7	0.2	0.5
Profit from discontinued operation	(1.3)	35.5	(1.3)	35.5	-	-
Net profit after tax for the period ($ million)	319.6	184.7	319.4	184.2	0.2	0.5
Weighted average number of securities or unitsused as the denominator in calculating basicearnings per security below	737,609,884	727,933,192	737,609,884	727,933,192	737,609,884	727,933,192
Basic earnings per security or unit for net profit after tax (cents per unit)
Continuing operations	43.5	20.5	43.5	20.4	-	0.1
Discontinued operation	(0.2)	4.9	(0.2)	4.9	-	-
Continuing and discontinued earningsper security	43.3	25.4	43.3	25.3	-	0.1
Weighted average number of securities or unitsused as the denominator in calculating dilutedearnings per security below	740,245,731	730,769,785	740,245,731	730,769,785	740,245,731	730,769,785
Diluted earnings per securitiy or unit for net profit after tax (cents)
Continuing operations	43.3	20.4	43.3	20.3	-	0.1
Discontinued operation	(0.2)	4.9	(0.2)	4.9	-	-
Continuing and discontinued earningsper security or unit	43.2	25.3	43.1	25.2	-	0.1

5. Insurance income

	SCA Property Group		Retail Trust
	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016
	$m	$m	$m	$m
Insurance income	7.1	5.0	7.1	5.0

In March 2016 the Whitsunday shopping centre was partially destroyed by fire. A total of $12.1 million has been recovered from the insurers of which $7.1 million was received in the current year (30 June 2016: $5.0 million).

6. Finance costs

		SCA Property Group & Retail Trust
	30 Jun 2017	30 Jun 2016
Interest expenseSwap termination	$m	$m
	25.6	22.7
	3.0	-
	28.6	22.7

The proceeds from the sale of the New Zealand portfolio were used to extinguish the New Zealand dollar denominated debt with the remainder used to reduce Australian dollar denominated debt. Swap termination costs relate to terminating certain fixed interest rate swaps resulting from the sale of the New Zealand portfolio.

For the year ended 30 June 2017

7. Taxation

	SCA Property Group		Retail Trust
	30 Jun 2017$m	30 Jun 2016$m	30 Jun 2017$m	30 Jun 2016$m
Profit before income tax - continuing operations	321.5	149.6	320.7	148.7
Profit before income tax - discontinued operation	(1.3)	37.6	(1.3)	37.6
	320.2	187.2	319.4	186.3
Prima facie tax (expense) at 30%	(96.1)	(56.2)	(95.8)	(55.8)
Tax effect of income that is not assessable/ deductible indetermining taxable profit	95.5	53.5	95.8	53.5
Tax effect of difference between Australian and foreign tax rates	-	0.2	-	0.2
	(0.6)	(2.5)	-	(2.1)
Tax expense is attributable to:
Profit from continuing operations	(0.6)	(0.4)	-	-
Profit from discontinued operation	-	(2.1)	-	(2.1)
	(0.6)	(2.5)	-	(2.1)

8. Discontinued operation and disposal group held for sale

On 10 June 2016 the Group announced it entered into a sale contract with Stride Property Group (NZX: STR) for the sale of SCP's New Zealand properties. This sale was completed during the year ended 30 June 2017 such that there were no NZ$ assets (including NZ$ cash) or NZ$ liabilities (including NZ$ debt) at 30 June 2017. At 30 June 2016 the assets of the disposal group held for sale totalled $254.0 million (made up of $253.1 million recognised in respect of the New Zealand investment properties and $0.9 million in respect of other assets), and the liabilities of the disposal group held for sale totalled $140.2 million (made up of $135.9 million of interest bearing liabilities and $4.3 million in respect of other liabilities).

Financial performance

The financial performance of the component of the Group classified as a discontinued operation at 30 June 2017 was:

	SCA Property Group & Retail Trust
	30 Jun 2017$m	30 Jun 2016$m
Revenue	2.9	18.6
Other Income	-	0.2
Property expenses	(0.2)	(2.1)
NZ Management Fee	(2.9)	(2.0)
Fair value adjustments on investment properties	-	28.0
Earnings before interest and tax (EBIT)	(0.2)	42.7
Finance costs	(1.1)	(5.1)
Net profit before tax	(1.3)	37.6
Tax	-	(2.1)
Net (loss)/profit after tax from discontinued operation	(1.3)	35.5
Cash flows from discontinued operation
Net cash flows from operating activities	(1.3)	7.5
Net cash flows from investing activities	0.1	0.1
Net cash flows from financing activities	1.2	(7.2)
Net cash flows	-	0.4

For the year ended 30 June 2017

9. Receivables

	SCA Property Group		Retail Trust
	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016
	$m	$m	$m	$m
Current
Rental receivable	2.7	5.4	2.7	5.4
Provision for doubtful debts	(0.7)	(0.5)	(0.7)	(0.5)
	2.0	4.9	2.0	4.9
Other receivables	20.4	8.4	19.4	8.3
Total receivables	22.4	13.3	21.4	13.2

Ageing of rental receivable1

	SCA Property Group		Retail Trust
	30 Jun 201730 Jun 2016		30 Jun 2017	30 Jun 2016
	$m	$m	$m	$m
Current	1.2	2.8	1.2	2.8
30 days	0.7	1.1	0.7	1.1
60 days	0.3	0.6	0.3	0.6
90 days	0.2	0.3	0.2	0.3
120 days	0.3	0.6	0.3	0.6
Rental receivable	2.7	5.4	2.7	5.4

1 Rental and other amounts due are receivable within 30 days.

There is no interest charged on any receivables. All receivables are current other than the receivables past due included in ageing above.

10. Investment properties

	SCA Property Group & Retail Trust
	30 Jun 2017	30 Jun 2016
	$m	$m
Movement in total investment properties
Opening balance	1,888.0	1,895.4
Acquisitions, and development expenditure 1	313.7	164.4
Disposals 2	(54.9)	-
Additions including tenant incentives, leasing fees and straight-lining of rental	6.2	9.3
income net of amortisation
Unrealised movement recognised in Profit or Loss on property valuations	211.6	26.9
Discontinued Operation	-
- Additions including tenant incentives, leasing fees and straight-lining of rental	-	1.5
income net of amortisation on discontinued operation
- Unrealised movement recognised in Profit or Loss on property valuations of	-	28.0
disposal group held for sale
- Effect of foreign currency exchange differences	-	15.6
- Assets classified as discontinued operation	-	(253.1)
Closing balance	2,364.6	1,888.0

1 Development expenditure for the year ended 30 June 2017 includes capitalised interest of $0.1 million based on the capitalisation interest rate of 3.7% and on qualifying assets (30 June 2016: nil).

2 On 2 June 2017 the Group sold Katoomba Marketplace and Mittagong Shopping Village for $55.1 million to SCA Unlisted Fund No 2 (SURF 2). The Group provided a rental guarantee of $0.2 million and the amount of $54.9 million has been recognised as the net disposal proceeds after disposal costs. $54.9 million was equal to the book value in December 2016 and the external valuation in March 2017.

For the year ended 30 June 2017

			Investment properties - Australia
Property	State	Property Type	Book value caprate130 Jun 2017	Book valuediscount rate30 Jun 2017	Book value 30Jun 2017$m	Book value 30June 2016$m

Sub-Regional
Lilydale	VIC	Sub-Regional	6.00%	7.00%	109.0	90.0
Pakenham	VIC	Sub-Regional	6.00%	7.00%	89.0	72.5
Central Highlands	QLD	Sub-Regional	7.00%	7.50%	66.0	61.7
Mt Gambier	SA	Sub-Regional	6.47%	7.68%	73.3	63.7
Murray Bridge	SA	Sub-Regional	6.75%	8.25%	70.5	61.0
Kwinana MarketplaceTotal Sub-Regional	WA	Sub-Regional	n/a	n/a	129.7537.5	98.0446.9
Neighbourhood
Belmont2	NSW	Neighbourhood	7.25%	8.25%	28.5	-
Berala	NSW	Neighbourhood	5.75%	6.75%	24.7	23.0
Cabarita	NSW	Neighbourhood	6.25%	7.50%	21.8	19.5
Cardiff	NSW	Neighbourhood	6.25%	7.00%	24.0	20.0
Clemton Park2	NSW	Neighbourhood	6.00%	7.25%	55.5	-
Goonellabah	NSW	Neighbourhood	6.75%	7.50%	21.4	19.3
Greystanes	NSW	Neighbourhood	6.00%	7.50%	52.6	48.0
Griffin Plaza	NSW	Neighbourhood	6.75%	7.75%	26.0	23.5
Lane Cove	NSW	Neighbourhood	5.75%	7.50%	58.5	48.5
Leura	NSW	Neighbourhood	5.75%	7.00%	18.0	15.1
Lismore	NSW	Neighbourhood	6.75%	7.25%	34.6	31.5
Macksville	NSW	Neighbourhood	6.00%	7.00%	13.0	11.8
Merimbula	NSW	Neighbourhood	6.50%	7.25%	18.7	15.7
Mittagong Village3	NSW	Neighbourhood	-	-	-	9.1
Moama Marketplace	NSW	Neighbourhood	7.00%	7.50%	13.8	11.6
Morisset	NSW	Neighbourhood	7.00%	7.25%	18.8	16.2
Muswellbrook2	NSW	Neighbourhood	6.75%	7.75%	29.3	-
Northgate	NSW	Neighbourhood	6.50%	7.25%	16.5	14.8
North Orange	NSW	Neighbourhood	6.50%	7.25%	29.5	27.0
Swansea	NSW	Neighbourhood	6.25%	6.75%	14.5	13.5
Ulladulla	NSW	Neighbourhood	6.50%	7.25%	20.3	19.0
West Dubbo	NSW	Neighbourhood	6.50%	7.25%	16.9	14.6
Albury	VIC	Neighbourhood	6.75%	7.00%	22.0	20.4
Ballarat	VIC	Neighbourhood	7.00%	6.50%	18.4	18.0
Cowes	VIC	Neighbourhood	6.75%	7.50%	19.2	17.5
Drouin	VIC	Neighbourhood	5.75%	5.25%	14.9	13.4
Epping North	VIC	Neighbourhood	5.50%	6.25%	30.4	26.0
Highett	VIC	Neighbourhood	5.50%	6.00%	30.0	25.0
Langwarrin	VIC	Neighbourhood	5.50%	6.50%	25.0	21.0
Ocean Grove	VIC	Neighbourhood	6.50%	7.00%	35.3	33.5
Warrnambool East	VIC	Neighbourhood	6.25%	6.75%	14.8	12.5
Warrnambool Target	VIC	Neighbourhood	7.75%	7.75%	18.2	18.6
Wonthaggi	VIC	Neighbourhood	6.75%	8.00%	45.4	45.4
Wyndham Vale	VIC	Neighbourhood	6.00%	7.00%	22.6	21.0
Annandale2	QLD	Neighbourhood	7.25%	8.50%	33.5	-
Ayr	QLD	Neighbourhood	7.00%	8.25%	19.4	18.0
Brookwater Village	QLD	Neighbourhood	6.25%	7.25%	35.2	32.0
Bushland Beach	QLD	Neighbourhood	6.75%	7.50%	12.8	7.1
Carrara	QLD	Neighbourhood	6.50%	7.50%	18.1	17.0
Chancellor Park Marketplace	QLD	Neighbourhood	6.25%	6.50%	44.4	38.5
Collingwood Park	QLD	Neighbourhood	6.50%	7.75%	11.2	10.5
Coorparoo	QLD	Neighbourhood	6.00%	7.00%	26.0	24.5
Gladstone	QLD	Neighbourhood	6.75%	7.00%	27.5	25.5
Greenbank	QLD	Neighbourhood	6.25%	7.75%	23.7	23.0
Jimboomba2	QLD	Neighbourhood	7.00%	8.00%	27.5	-
Lillybrook2	QLD	Neighbourhood	6.50%	7.50%	26.5	-
Mackay	QLD	Neighbourhood	7.00%	7.00%	23.6	23.0
Marian Town Centre	QLD	Neighbourhood	7.00%	8.00%	33.0	32.0
Mission Beach	QLD	Neighbourhood	6.75%	8.00%	11.4	10.4

Shopping Centres Australasia Property Group Directors Declaration

For the year ended 30 June 2017

Investment properties - Australia (continued)
Property	State	Property Type	Book value caprate130 Jun 2017	Book valuediscount rate30 Jun 2017	Book value 30Jun 2017$m	Book value 30June 2016$m
Neighbourhood
Mt Warren Park	QLD	Neighbourhood	6.25%	7.00%	16.4	14.7
Mudgeeraba2	QLD	Neighbourhood	6.00%	7.50%	35.8	-
The Markets	QLD	Neighbourhood	6.50%	8.25%	33.0	33.5
Whitsunday	QLD	Neighbourhood	7.00%	8.25%	38.3	33.6
Woodford	QLD	Neighbourhood	6.25%	7.00%	12.3	10.8
Worongary2	QLD	Neighbourhood	6.00%	7.00%	46.3	-
Blakes Crossing	SA	Neighbourhood	7.00%	7.75%	22.1	20.0
Walkerville	SA	Neighbourhood	6.00%	7.00%	24.0	20.7
Busselton	WA	Neighbourhood	6.25%	7.00%	24.9	22.5
Treendale	WA	Neighbourhood	6.50%	7.75%	34.4	30.9
Burnie	TAS	Neighbourhood	8.00%	8.00%	21.0	19.5
Claremont Plaza	TAS	Neighbourhood	6.78%	8.03%	34.0	31.2
Glenorchy Central	TAS	Neighbourhood	7.00%	7.50%	25.8	23.0
Greenpoint	TAS	Neighbourhood	7.50%	8.25%	15.0	13.5
Kingston	TAS	Neighbourhood	6.55%	8.27%	26.6	23.5
Meadow Mews	TAS	Neighbourhood	6.75%	8.00%	55.0	48.0
New Town Plaza	TAS	Neighbourhood	7.00%	7.50%	37.0	30.0
Prospect Vale	TAS	Neighbourhood	7.00%	8.50%	27.7	26.4
Riverside	TAS	Neighbourhood	7.50%	7.00%	8.3	7.6
Shoreline	TAS	Neighbourhood	6.50%	7.00%	35.9	30.5
Sorell	TAS	Neighbourhood	6.50%	7.75%	26.4	22.7
Total Neighbourhood					1,827.1	1,398.1
Freestanding
Katoomba Marketplace3	NSW	Freestanding	-	-	-	43.0
Total Freestanding					-	43.0
Total investment properties Australia					2,364.6	1,888.0

1 Capitalisation rate (or cap rate) is an approximation of the ratio between the net operating income produced by a property and its fair value.

2 Properties acquired during the year ended 30 June 2017.

3 Properties sold during the year ended 30 June 2017 to SURF 2.

Valuation process

The aim of the valuation process is to ensure that assets are held at fair value and that the Group is compliant with applicable regulations (for example Corporations Act and ASIC regulations) and the Trusts' Constitution and Compliance Plan.

All properties are required to be internally valued every six months with the exception of those independently valued during the current reporting period. The internal valuations are performed on a basis consistent with the external valuations. This includes using appropriate capitalisation rates, terminal yields and discount rates based on comparable market evidence and recent external valuation parameters to produce a capitalisation based valuation and a discounted cash flow valuation.

The internal valuations are reviewed by management who recommends each property's valuation to the Audit, Risk Management and Compliance Committee and the Board in accordance with the Group's internal valuation protocol.

The Retail Trust's Compliance Plan requires that each property in the portfolio is valued by an independent valuer at least every three years and the independent valuer is expected to change after three years. In practice, properties may be independently valued more frequently than every three years primarily as a result of:

A significant variation between book value and internal valuation
A major development project
A period where there is significant market movement
A significant change in circumstances at the property including a significant change in the trading of the location

Independent valuations are performed by independent external valuers who hold a recognised relevant professional qualification and have specialised expertise in the types of investment properties valued.

Fair value measurement, valuation technique and inputs

The key inputs used to measure fair values of investment properties are disclosed below along with their sensitivity to an increase or decrease.

Category	Fair valuehierarchy	Book value30 June 2017$m	Valuationtechnique	Key inputs used tomeasure fair value	Range ofunobservable inputs
Completed portfolio	Level 3	2,364.6	Incomecapitalisation andDCF1	Capitalisation rateDiscount rate	5.50% - 8.00%5.25% - 8.50%
Category	Fair valuehierarchy	Book value30 June 2016$m	Valuationtechnique	Key inputs used tomeasure fair value	Range of unobservableinputs
Completed portfolio	Level 3	1,888.0	Incomecapitalisation andDCF1	Capitalisation rateDiscount rate	6.25% - 8.50%7.00% - 9.25%

1 Discounted cash flow.

The investment properties fair values presented are based on market values, which are derived using the capitalisation and the discounted cash flow methods. The Group's preferred or primary method is the capitalisation method.

Capitalisation method

Capitalisation rate (or cap rate) is an approximation of the ratio between the net operating income produced by an investment property and its fair value. The net operating income is determined considering the estimated gross passing income after adjustment for anticipated operating costs, potential future income from existing vacancies and an on-going vacancy and bad debt allowance. This produces a net income on a fully leased basis which is capitalised in perpetuity from the valuation date at an appropriate investment yield. The adopted investment yield reflects the capitalisation rate (cap rate) and includes consideration of the property type, location and tenancy profile together with market sales.

Discounted cash flows (DCF)

Under the DCF method, a property's fair value is estimated using explicit assumptions regarding the benefits and liabilities of ownership over the asset's life including an exit or terminal value. The DCF method involves the projection of a series of cash flows on a real property interest. To this projected cash flow series, an appropriate discount rate is applied to establish the present value of the income stream associated with the real property. The discount rate is the rate of return used to convert a monetary sum, payable or receivable in the future, into a present value. The rate is determined with regards to market evidence.

All property investments are categorised as level 3 in the fair value hierarchy (refer note 25(c) for additional information in relation to the fair value hierarchy). There were no transfers between hierarchies.

Sensitivity information

The key inputs to measure fair value of investment properties are disclosed below along with sensitivity to a significant increase or decrease. The following sensitivity to significant inputs applies to investment properties (refer note 2(v)).

Significant inputs	Fair value measurement sensitivity tosignificant increase in input	Fair value measurement sensitivity tosignificant decrease in input
Capitalisation rate	Decrease	Increase
Discount rate	Decrease	Increase

Sensitivity analysis

When calculating the income capitalisation approach, the net market rent has a strong interrelationship with the adopted capitalisation rate given the methodology involves assessing the total net market income receivable from the property and capitalising this in perpetuity to derive a capital value. The impact on the fair value of an increase in the net market rent could potentially offset the impact of an increase (softening) in the adopted capitalisation rate. The same can be said for a decrease in the net market rent and a decrease (tightening) in the adopted capitalisation rate. A directionally opposite change in the net market rent and the adopted capitalisation rate would magnify the impact to the fair value.

For the year ended 30 June 2017

When assessing a discounted cash flow, the adopted discount rate and adopted terminal yield have a strong interrelationship in deriving a fair value given the discount rate will determine the rate at which the terminal value is discounted to the present value. The impact on the fair value of an increase (softening) in the adopted discount rate could potentially offset the impact of a decrease (tightening) in the adopted terminal yield. The same can be said for a decrease (tightening) in the discount rate and an increase (softening) in the adopted terminal yield. A directionally similar change in the adopted discount rate and the adopted terminal yield would magnify the impact to the fair value.

Other inputs or factors also impact a valuation. These factors are many and include: market rental reversion, current rental, property expenses, capital expenditure, and tenant incentives.

The Group has considered these factors and believes the most significant input to fair value of investment properties at balance date is the capitalisation rate as the capitalisation rate is in line with the Group's understanding of the market practice at which the price is determined for similar properties. Notwithstanding the Group's view that capitalisation rate is the most significant input, movements in one or more of other factors above may change the valuation.

Sensitivity analysis – capitalisation rate

A sensitivity analysis of the impact on the investment property valuations of movements in the capitalisation rate is disclosed below as the capitalisation rate method is the primary method for conducting the valuation. While other factors do also impact a valuation, at the current time, the Group considers that the valuations are most sensitive to movements in the capitalisation rate.

The following sensitivity analysis from the Australian investment properties (continuing operations and excluding the discontinued operation - refer note 8) shows the effect on profit/loss after tax and on equity of a 25 basis points (bps) increase/decrease in capitalisation rates at balance sheet date with all other variables held constant.

	Profit/loss after tax		Equity
	25 bpsincrease$m	25 bpsdecrease$m	25 bpsincrease$m	25 bpsdecrease$m
30 June 2017
SCA Property Group & Retail TrustInvestment properties	(84.2)	91.0	(84.2)	91.0
30 June 2016
SCA Property Group & Retail Trust
Investment properties	(64.8)	69.5	(64.8)	69.5

11. Trade and other payables

	SCA Property Group		Retail Trust
	30 Jun 2017$m	30 Jun 2016$m	30 Jun 2017$m	30 Jun 2016$m
Current
Payables and other creditors1	42.8	22.6	42.3	21.6
Income tax payable	0.6	0.4	0.2	0.2
Payables to related parties	-	-	7.5	7.4
	43.4	23.0	50.0	29.2

1 Payables and other creditors are generally payable within 30 days.

12. Interest bearing liabilities

	SCA Property Group & Retail Trust
	30 Jun 2017	30 Jun 2016
	$m	$m
Unsecured Bank Bilateral Facilities1
- A$ denominated	174.0	210.0
Unsecured A$ Medium term note
- A$ denominated	400.0	175.0
Unsecured US Notes
- A$ denominated	50.0	50.0
- US$ denominated (converted to A$)	195.4	202.0
Total unsecured debt outstanding	819.4	637.0
- Less: unamortised establishment fees	(2.0)	(2.3)
- Add: unamortised premium / (discount) on A$ MTN	-	-
Interest bearing liabilities	817.4	634.7
Add liabilities associated with disposal group held for sale 1:
- NZ$ denominated (converted to A$)	-	135.9
Total including liabilities associated with disposal group held for sale1	817.4	770.6

1 During the year ended 30 June 2017 the Group completed the sale of SCP's New Zealand properties such that there were no NZ$ assets (including NZ$ cash) or NZ$ liabilities (including NZ$ debt) at 30 June 2017.

Financing facilities and financing resources

The debt facilities are made up of Bank bilateral facilities, A$ medium term notes and US notes. The financing capacity available to the Group is under the Bank bilateral facilities as the A$ medium term notes and US notes are fully drawn. Debt facilities are carried at amortised cost. Additional details of these debt facilities are in the following table.

Bank bilateral facilities

To reduce liquidity risk, the Group has in place unsecured bilateral facilities with multiple banks. The bilateral terms have been negotiated to achieve a balance between capital availability and the cost of debt including unused debt. The bilateral facilities are unsecured, revolving, multi-use, and can be used interchangeably.

One of the bilateral facilities can also be used for bank guarantees. As at 30 June 2017, in addition to the bilateral facilities drawn above, $10.0 million of a bilateral facility available was used to support a $10.0 million bank guarantee (30 June 2016: $10.0 million). The bank guarantee assists with the Group's obligations under the Australian Financial Services Licence which is held within the Group.

The financing capacity available to the Group under the bilateral facilities, including cash, is in the following table.

For the year ended 30 June 2017

		SCA Property Group & Retail Trust
	30 Jun 2017$m	30 Jun 2016$m
Financing facilities and financing resources1Bilateral bank facilities
Committed Bilateral financing facilities availableLess: amounts drawn down	445.0	445.0
- Continuing operations (AUD)	(174.0)	(210.0)
- Discontinuing operations (NZD)	-	(135.9)
Less: amounts utilised for bank guarantee	(10.0)	(10.0)
Net Bilateral facilities available	261.0	89.1
Add: cash and cash equivalents
- Continuing operations (AUD) 2	3.6	3.8
- Discontinuing operations (NZD)	-	0.3
Financing resources available	264.6	93.2

1 On 10 June 2016 the Group announced it entered into a sale contract with Stride Property Group (NZX: STR) for the sale of SCP's New Zealand properties. Consequently the New Zealand assets (including NZ$ cash) and liabilities (including NZ$ debt) have been treated as a disposal group with the total assets and total liabilities of the disposal group shown separately to the other assets and liabilities of the Group for 30 June 2016. During the year ended 30 June 2017 the Group completed the sale of SCP's New Zealand properties such that there were no NZ$ assets (including NZ$ cash) or NZ$ liabilities (including NZ$ debt) at 30 June 2017.

2 SCA Property Group & Retail Trust financing resources available are the same except Cash and cash equivalents recognised by Retail Trust is $2.0 million. On this basis the Financing resources available to the Retail Trust is $263.0 million (30 June 2016: Cash and cash equivalents recognised by Retail Trust was $$2.6 million and Financing resources available were $91.7 million).

A$ medium term notes (A$ MTN)

The Group has issued A$ MTN with a face value of $400.0 million. Details of these notes are below.

A$ MTN	Tranche	Issue date	Maturity	Tenor at issue	Coupon	Face value	Issue	Discount / (premium)
							consideration	on issue
				(yrs)		$m	$m	$m
Series 1	Tranche 1	Apr-15	Apr-21	6.0	3.75%	175.0	174.8	0.2
	Tranche 2	Jul-16	Apr-21	4.8	3.75%	50.0	50.6	(0.6)
Series 2	Tranche 1	Jun-17	Jun-24	7.0	3.90%	175.0	174.5	0.5
						400.0		0.1

The discount or premium with respect to each Tranche is amortised from the issue date to the maturity.

US Notes

In August 2014 the Group issued unsecured notes with aggregate face value of US$150.0 million and A$50.0 million (equivalent at the date of issue in total to A$209.8 million) to US private investors (US Notes). The maturity profile of the notes is US$100.0 million expiring August 2027, and US$50.0 million and A$50.0 million expiring August 2029. The principal and coupon obligations have been fully economically swapped back to Australian dollars (floating interest rates) through cross currency interest rate swaps.

Debt covenants

The Group is required to comply with certain financial covenants or obligations in respect of the interest bearing liabilities. The major financial covenants or obligations which are common across all types of interest bearing liabilities are summarised as follows:

(a) Interest cover ratio (EBITDA to net interest expense) is more than 2.00 times;
(b) Gearing ratio (finance debt net of cash and cross currency swaps divided by total tangible assets net of cash and derivatives) does not exceed 50%;
(c) Priority indebtedness ratio (priority debt to total tangible assets) does not exceed 10%; and
(d) Aggregate of the total tangible assets held by the Obligors represents not less than 90% of the total tangible assets of the Group.

For the year ended 30 June 2017

The Group was in compliance with all of the financial covenants and obligations for the period ended and as at 30 June 2017.

Capital Management – management gearing

The Group manages its capital, including its debt, by having regard to a number of factors including the gearing of the Group. The Group's definition of gearing for management purposes is:

Net finance debt, where the US notes US$ denominated debt is recorded as the A$ amount received and economically hedged in A$, net of cash, divided by
Net total assets, being total assets net of cash and derivatives.

As the US notes USD denominated debt has been fully economically hedged, for the purpose of the management determination of gearing US$ denominated debt of US$150.0 million is recorded at its economically hedged value of A$209.8 million. This also results in management gearing being based on a constant currency basis.

The Group's gearing was 31.8% as at 30 June 2017 (30 June 2016: 34.0%). The Group's target gearing range is 30% to 40%, however the Group has a preference for gearing to remain below 35% at this point in the cycle. The Group's gearing calculation is below.

	Management	Management
Gearing (management)1	30 Jun 2017	30 Jun 2016
	$m	$m
Bilateral and A$ notes
Unsecured bilateral facilities drawn
- Continuing operations (AUD)	174.0	210.0
- Discontinued operation (NZD)	-	135.9
Unsecured bilateral facilities used for bank guarantee	10.0	10.0
Unsecured A$ medium term notes	400.0	175.0
	584.0	530.9
US Notes
US$ denominated notes - USD face value	150.0	150.0
Economically hedged exchange rate	0.9387	0.9387
US$ denominated notes - AUD equivalent	159.8	159.8
A$ denominated notes	50.0	50.0
Total US Notes	209.8	209.8
Total debt used and drawn AU$ equivalent	793.8	740.7
Less: cash and cash equivalents
- Continuing operations (AUD)	(3.6)	(3.8)
- Discontinuing operation (NZD)	-	(0.3)
Net finance debt for gearing	790.2	736.6
Total assets	2,547.1	2,258.7
Less: cash and cash equivalents
- Continuing operations (AUD)	(3.6)	(3.8)
- Discontinued operation (NZD)	-	(0.3)
Less: derivative value included in total assets	(56.8)	(85.8)
Net total assets for gearing	2,486.7	2,168.8
Gearing (management)	31.8%	34.0%

1 Unsecured bilateral facilities drawn and cash and cash equivalents, includes balances within the discontinued operation and disposal group held for sale (refer note 8).

For the year ended 30 June 2017

13. Contributed equity

		SCA Property GroupRetail Trust
	30 Jun 2017$m	30 Jun 2016$m	30 Jun 2017$m	30 Jun 2016$m
EquityIssue costs	1,271.2(28.4)	1,252.4(28.4)	1,263.6(28.3)	1,244.9(28.3)
	1,242.8	1,224.0	1,235.3	1,216.6
	Management Trust		Retail Trust
Opening balanceEquity raised through Distribution Reinvestment Plan January 2017	7.40.1	7.3-	1,216.618.7	1,192.4-
Equity raised through Distribution Reinvestment Plan August 2015	-	-	-	6.9
Equity raised through Distribution Reinvestment Plan January 2016Closing balance	-7.5	0.17.4	-1,235.3	17.41,216.6
Balance at the end of the period is attributable to unit holders of:
Shopping Centres Australasia Property Management TrustShopping Centres Australasia Property Retail Trust	7.51,235.3	7.41,216.6
	1,242.8	1,224.0

Units on Issue

	SCA Property Group & Retail Trust
	30 Jun 2017	30 Jun 2016
	No. of units	No. of units
Opening balance	733,390,134	721,488,543
Equity issued for executive security based compensation arrangements - 3 July 2015	-	100,000
Equity raised through Distribution Reinvestment Plan - 28 August 2015	-	3,278,549
Equity raised through Distribution Reinvestment Plan - 29 January 2016	-	8,523,042
Equity issued for executive security based compensation arrangements - 24 August 2016	734,092	-
Equity issued for staff security based compensation arrangements - 20 December 2016	11,112	-
Equity raised through Distribution Reinvestment Plan - 30 January 2017	8,616,851	-
Closing balance	742,752,189	733,390,134

As long as Shopping Centres Australasia Property Group remains jointly quoted, the number of units in each of the Trusts are equal and the unitholders identical. Holders of stapled units (or securities) are entitled to receive distributions as declared from time to time. SCA Property Group holds concurrent meetings of the Retail Trust and Management Trust. Subject to any voting restrictions imposed on a unitholder under the Corporations Act 2001 and the Australian Securities Exchange at a meeting of members, on a show of hands, each member has one vote. On a poll, each member has one vote for each dollar of the value of the total interest that they have in the relevant underlying Retail Trust or Management Trust respectively.

During the year new units were issued and equity raised as a result of the operation of the distribution reinvestment plan, and compensation arrangements. Additional information on the distribution reinvestment plan is below.

Issue of securities from distribution reinvestment plan (DRP)

The DRP was in place for the distribution declared in December 2016 (paid in January 2017) but was suspended for the distribution declared in June 2016 (paid in August 2016). The DRP is in operation for the distribution declared on 16 June 2017 (payable on 31 August 2017).

The DRP issue price was determined at a discount of 1.0% to the arithmetic average of the daily volume weighted average market price of securities traded on the ASX during the 10 business days commencing on the business day after the record date. The equity raised through the DRP on 30 January 2017 was $18.8 million by the issue of 8,616,851 securities at a price of $2.18.

14. Reserves (net of income tax)

	Retail Trust
	30 Jun 2017	30 Jun 2016
	$m	$m
Share based payment reserve	3.0	1.7
Foreign currency translation reserve	-	15.3
Available for sale reserve	(2.8)	-
	0.2	17.0
Movements in reserves
Share based payment reserve
Balance at the beginning of the year	1.7	1.1
Employee share based payments	1.3	0.7
Transfer to share capital	-	(0.1)
Closing balance	3.0	1.7
Foreign currency translation reserve
Opening balance	15.3	3.8
Translation differences arising during the year	1.7	11.5
Reclassification of foreign currency translation reserve	(17.0)	-
Closing balance	-	15.3
Available for sale reserve
Opening balance	-	-
Revaluation of investment - available for sale	(2.8)	-
Closing balance	(2.8)	-

Share based payment reserve: Refer note 21.

Foreign currency translation reserve: The foreign currency translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operation. Following the sale of the New Zealand properties and the proceeds used for repayment of the New Zealand denominated debt with the remainder repatriated to Australia the foreign currency translation reserve has been reclassed to Consolidated Statements of Profit or Loss. Refer note 8.

Available for sale reserve: Refer note 29.

15. Accumulated profit and loss

	SCA Property Group		Retail Trust
	30 Jun 17	30 Jun 16	30 Jun 17	30 Jun 16
	$m	$m	$m	$m
Opening balance	167.9	72.2	169.1	73.9
Net profit for the year	319.6	184.7	319.4	184.2
Distributions paid and payable (note 3)	(96.8)	(89.0)	(96.8)	(89.0)
Closing balance	390.7	167.9	391.7	169.1
Balance at the end of the year is attributableto unit holders of:
Shopping Centres Australasia PropertyManagement Trust	(1.0)	(1.2)
Shopping Centres Australasia PropertyRetail Trust	391.7	169.1
	390.7	167.9

16. Notes to statements of cash flows

Reconciliation of profit to net cash flow from operating activities is below. Cash flow from continuing and discontinued operations have been treated collectively.

SCA Property Group		Retail Trust
30 Jun 2017$m	30 Jun 2016$m	30 Jun 2017$m	30 Jun 2016$m
319.6	184.7	319.4	184.2
(211.6)	(54.9)	(211.6)	(54.9)
24.4	(31.2)	24.4	(31.2)
(23.6)	7.5	(23.6)	7.5
(3.1)	(1.3)	(3.1)	(1.3)
21.4	6.4	20.6	5.8
0.3	0.9	0.3	0.9
(5.9)	(4.0)	(5.9)	(4.0)
(9.1)	(5.8)	(8.2)	(4.4)
112.4	102.3	112.3	102.6

17. Operating leases

All the investment properties (refer note 10) are subject to operating leases.

The investment properties are leased to tenants under long term operating leases with rentals payable monthly. Significant types of tenants include supermarkets, discount department stores, liquor stores and specialty stores. Lease terms can vary for each lease.

For supermarkets and discount department stores, lease terms for new leases are commonly from 15 to 20 years and are typically followed by a number of optional lease extensions exercisable by the tenant. The lease for these tenants also generally includes provision for additional rent in the form of sales turnover rent. Where sales turnover rent applies, it is payable annually in arrears where the sum of the initial rent and the turnover rent percentage amount for a year exceeds the amount of the base rent. Additionally the base rent for some of these tenants is subject to fixed periodic increases of up to 5% at the rent review date. The rent review date is typically every 5 years from the lease start or renewal.

For other tenants lease terms would commonly be for shorter periods such as five years with provisions for annual reviews which typically comprise either CPI based increases, fixed percentage increases or market reviews. Optional lease extensions exercisable by the tenant are also relatively common. Specialty leases incorporate provisions for reporting of sales turnover and may include payment of turnover rent percentage rental if appropriate.

Minimum lease payments receivable under non-cancellable operating leases of investment properties (excluding those properties held in the disposal group – refer to note 8) are as follows.

SCA Property Group & Retail Trust
30 Jun 2017	30 Jun 2016
$m	$m
173.4	157.0
556.4	512.2
902.9	895.1
1,632.7	1,564.3

There was $1.3 million of percentage or turnover rent recognised as income in the current year (30 June 2016: $1.2 million).

18. Capital commitments

Estimated capital expenditure committed at balance sheet date but not provided for:

	SCA Property Group & Retail Trust
	30 Jun 17 ($m)	30 Jun 16 ($m)
Within one year	22.4

The 30 June 2017 balance relates to:

Bushland Beach (QLD) ($12.4 million): prior to 30 June 2016 the Group acquired a neighbourhood shopping centre and adjacent development land, known as Bushland Beach Plaza, for a purchase price of $7.1 million (excluding acquisition costs) and the Group entered into a development management agreement with a recognised developer to develop an expanded neighbourhood shopping centre anchored by a Coles supermarket for an additional $18.0 million. During the year ended 30 June 2017 $5.6 million was spent and the remaining $12.4 million is expected to be spent during the year to end 30 June 2018 (30 June 2016: $18.0 million).
Greenbank (QLD) ($10.0 million): During the prior year the Group entered into a conditional agreement to acquire Greenbank neighbourhood shopping centre for $23.0 million (excluding transaction costs). This transaction settled in January 2016. This acquisition includes a call option for the Group to acquire ten hectares of adjacent development land for $10.0 million exercisable at any time within 5 years from the date of acquisition. This exercise amount has been treated as current as the Group may exercise this option at its sole discretion at any time although there is no immediate expectation of exercise (and the vendor has a put option which is exercisable in December 2020 if the call option is not exercised by that time) (30 June 2016: $10.0 million). Refer also note 25(c).

The amount recognised at 30 June 2016 also included the estimated purchase price related to property acquisitions that had been contracted but were pre settlement. These properties were Muswellbrook Fair (NSW), Clemton Park (NSW) and Annandale (QLD). The acquisition of these properties was completed during the year ended 30 June 2017.

19. Segment reporting – continuing operations and discontinued operation

The Group and Retail Trust invest in shopping centres located in Australia and, until the completion of the sale of the properties located in New Zealand (completed during the year ended 30 June 2017), New Zealand. The chief decision makers of the Group base their decisions on these segments. The Management Trust operates only within one segment, Australia.

	Australia		New Zealand		Total
	30 Jun 2017 30 Jun 2016		30 Jun 2017 30 Jun 2016		30 Jun 2017 30 Jun 2016
	$m	$m	$m	$m	$m	$m
Revenue
Rental income1	194.0	180.7	2.9	18.8	196.9	199.5
Other income	0.5	-	-	-	0.5	-
Funds management income	1.3	1.2	-	-	1.3	1.2
Insurance income	7.1	5.0	-	-	7.1	5.0
Distribution income	5.6	-	-	-	5.6	-
NZ management fee	2.9	-	(2.9)	-	-	-
	211.4	186.9	-	18.8	211.4	205.7
Expenses
Property expenses	(61.7)	(56.0)	(0.2)	(2.1)	(61.9)	(58.1)
Corporate costs	(12.0)	(9.9)	-	(2.0)	(12.0)	(11.9)
	(73.7)	(65.9)	(0.2)	(4.1)	(73.9)	(70.0)
Segment result	137.7	121.0	(0.2)	14.7	137.5	135.7
Fair value adjustments on investment properties	211.6	26.9	-	28.0	211.6	54.9
Fair value adjustments on derivatives	(24.4)	31.2	-	-	(24.4)	31.2
Fair value adjustments from associate	1.3	0.6	-	-	1.3	0.6
Foreign exchange	23.6	(7.5)	-	-	23.6	(7.5)
Transaction costs	-	(0.1)	-	-	-	(0.1)
Interest income	0.3	0.2		-	0.3	0.2
Financing costs	(28.6)	(22.7)	(1.1)	(5.1)	(29.7)	(27.8)
Tax	(0.6)	(0.4)	-	(2.1)	(0.6)	(2.5)
Net profit/ (loss) after tax for the year attributable to unitholders	320.9	149.2	(1.3)	35.5	319.6	184.7
Assets and liabilities
Segment assets	2,547.1	2,004.7	-	254.0	2,547.1	2,258.7
Segment liabilities	(913.4)	(709.6)	-	(140.2)	(913.4)	(849.8)

1 For the purposes of segment reporting $84.7 million in rental income (30 June 2016: $96.9 million) was from a single customer.

20. Key management personnel compensation

The aggregate compensation made to the Directors and other key management personnel of the Group is set out below.

	30 Jun 2017	30 Jun 2016
	$	$
Short term benefits	3,495,471	3,163,458
Post-employment benefits	175,125	190,279
Share-based payment	979,813	875,819
Long term benefits	46,113	33,750
	4,696,522	4,263,306

The key management personnel during the year were:

Directors
Mr Lamb (Company Secretary and General Counsel)

21. Share based payments

During 2013 the Group established a Group Executive Incentive Plan that entitles key management personnel, subject to criteria, to become entitled to acquire stapled securities at nil cost to the employee. The Group Executive Incentive Plan was approved at the Group's Annual General Meeting in November 2013.

Rights pursuant to the Group Executive Incentive Plan have been issued for:

Special Performance Rights (SPRs)
Short Term Incentive Plan Rights (STIP)
Long Term Incentive Plan Rights (LTIP)

Under the Group Executive Incentive Plan grants of rights have been made to the following key management personnel:

Mr Mellowes (Director and Chief Executive Officer)
Mr Fleming (Director and Chief Financial Officer)
Mr Lamb (Company Secretary and General Counsel)

In addition certain non-key management personnel have also been granted 222,856 rights during the year (30 June 2016: 74,508).

The table below summarises the rights issued to key management personnel. These rights have a nil exercise price and awards are subject to meeting performance criteria. Where the performance criteria are met, details of the stapled securities that may be issued are below. Under the Group Executive Incentive Plan during the year ended 30 June 2017 stapled securities were issued and vested to Mr Mellowes (number of securities: 552,728) (30 June 2016: 100,000), Mr Fleming (139,692) (30 June 2016: nil) and Mr Lamb (41,672) (30 June 2016: nil). No securities were forfeited during the year.

Type and eligibility	VestingConditions1	Shareprice at agrant date		Grant Date Testing date	Vestingdate	Maximum number of stapledsecurities or maximum valueof securities to be issued	Fair vale at grantdate
STIP (FY17)(Mr Mellowes)	Non-market	$2.08	Nov-16	Nov-16	Jul-19	$334,688	$0.99 per $1.00
STIP (FY17)(Mr Fleming)	Non-market	$2.08	Nov-16	Nov-16	Jul-19	$153,000	$0.99 per $1.00
LTIP (FY17 - FY19) (tranche 1)(Messrs Mellowes, Fleming, Lamb)	Relative TSR2	$2.08	Nov-16	Nov-16	Jul-20	159,357	$1.18 per unit
LTIP (FY17 - FY19) (tranche 2)(Messrs Mellowes, Fleming, Lamb)	Non-market	$2.08	Nov-16	Nov-16	Jul-20	159,357	$2.31 per unit
LTIP (FY17 - FY19) (tranche 3)(Messrs Mellowes, Fleming, Lamb)	Non-market	$2.08	Nov-16	Nov-16	Jul-20	159,357	$2.31 per unit
STIP (FY16) (Mr Mellowes)	Non-market	$2.00	Oct-15	Oct-15	Jul-18	$328,125	$1.00 per $1.00
STIP (FY16) (Mr Fleming)	Non-market	$2.00	Oct-15	Oct-15	Jul-18	$150,000	$1.00 per $1.00
LTIP (FY16 - FY18) (tranche 1)(Messrs Mellowes, Fleming, Lamb)	Relative TSR2	$2.00	Oct-15	Oct-15	Jul-19	181,307	$1.00 per unit
LTIP (FY16 - FY18) (tranche 2)(Messrs Mellowes, Fleming, Lamb)	Non-market	$2.00	Oct-15	Oct-15	Jul-19	181,307	$2.00 per unit
LTIP (FY16 - FY18) (tranche 3)(Messrs Mellowes, Fleming, Lamb)	Non-market	$2.00	Oct-15	Oct-15	Jul-19	181,307	$2.00 per unit

1 Service and non-market conditions include financial and non-financial targets along with a deferred vesting period.

2 TSR is Total Shareholder Return measured against a comparator group.

For the year ended 30 June 2017

The Group recognises the fair value at the grant date of equity settled securities above as an employee benefit expense proportionally over the vesting period with a corresponding increase in equity. Fair value is measured at grant date using Monte-Carlo simulation and Binomial option pricing models where applicable, performed by an independent valuer, and models the future security price of the Group's securities.

Non-market vesting conditions are determined with reference to the underlying financial or non-financial performance measures to which they relate.

The total expense recognised during the year in relation to those eligible for equity settled share-based payments was $1.3 million (30 June 2016: $0.7 million).

Key inputs to the pricing models include:

	30 June 2017	30 June 2016
Volatility	18%	20%
Dividend yield	5.4%	6.0%
Risk-free interest rate	1.45% - 1.50%	1.79% – 1.94%

22. Other related party disclosures

The Retail Trust has a current payable of $7.5 million to the Management Trust (30 June 2016: $7.4 million). This is non-interest bearing and repayable at call. Additionally, Shopping Centres Australasia Property Group RE Limited (the Company), the Responsible Entity of the Retail Trust and a wholly owned subsidiary of Management Trust, makes payments on behalf of the Retail Trust from time to time. These payments are incurred by the Company in properly performing or exercising its powers or duties in relation to the Retail Trust. The Company has a right of indemnity from the Retail Trust, for any liability incurred by the Company in properly performing or exercising any of its powers or duties in relation to the Retail Trust. The amount reimbursed or reimbursable during the year under this agreement was $11.5 million (30 June 2016: $11.4 million).

23. Parent entity

	Management Trust1		Retail Trust1, 2
	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016
	$m	$m	$m	$m
Current assets	-	-	25.2	24.4
Non-current assets	7.5	7.4	2,519.3	1,978.6
Total assets	7.5	7.4	2,544.5	2,003.0
Current liabilities	-	-	99.9	75.9
Non-current liabilities	-	-	817.4	638.2
Total liabilities	-	-	917.3	714.1
Contributed equity	7.5	7.4	1,235.3	1,216.6
Reserves	-	-	0.2	17.0
Accumulated profit / (loss)	-	-	391.7	53.4
Total equity	7.5	7.4	1,627.2	1,287.0
Net profit/ (loss) after tax	-	-	436.9	169.4
Other comprehensive income	-	-	(2.8)	-
Total comprehensive income	-	-	434.1	169.4
Commitments for the acquisition of property by the parent	-	-	22.4	133.2

1 Head Trusts only. 2 The Retail Trust financial statements have been prepared on a going concern basis. In preparing the Retail Trust financial statements the Directors note that the Retail Trust has a net current asset deficiency position due to the provision for distribution and minimal cash and cash equivalents, as it is the policy of the Group and Retail Trust to use surplus cash to repay debt. At 30 June 2017 the Group and Retail Trust have the ability to drawdown funds to pay the distribution on 31 August 2017, having sufficient excess cash and undrawn financing facilities (refer note 12).

24. Subsidiaries

Name of subsidiaries	Place of	Ownership interest
	incorporationand operation	30 June 2017	30 June 2016
Subsidiaries of Shopping Centres Australasia Property Management Trust
Shopping Centres Australasia Property Operations Pty Ltd	Australia	100.0%	100.0%
Shopping Centres Australasia Property Holdings Pty Ltd	Australia	100.0%	100.0%
Shopping Centres Australasia Property Group RE Ltd	Australia	100.0%	100.0%
Shopping Centres Australasia Property Group Trustee NZ Ltd	New Zealand	100.0%	100.0%
Shopping Centres Australasia Property NZ Retail Trust1	New Zealand	-	0.1%
Shopping Centres Australasia Property Retail Trust	Australia	2-	-2
SCA Unlisted Retail Fund RE Limited	Australia	100.0%	100.0%
Subsidiaries of Shopping Centres Australasia Property Retail Trust
Shopping Centres Australasia Property NZ Retail Trust 1	New Zealand	-	99.9%

1 Shopping Centres Australasia Property NZ Retail Trust was wound up in June 2017.

2 Shopping Centres Australasia Property Retail Trust is considered a subsidiary of Shopping Centres Australasia Property Management Trust due to stapling even though there is no ownership or shareholding interest.

25. Financial instruments – continuing operations

(a) Capital management

The Group's objective when managing capital is to safeguard the ability to continue as a going concern, whilst providing returns for security holders and benefits for other stakeholders and maintaining a capital structure that will support a competitive overall cost of capital for the Group.

The capital structure of the Group consists of cash, interest bearing liabilities (including eight bilateral debt facilities with four banks and notes issued in the debt capital markets) and equity of the Group (comprising contributed equity, reserves and accumulated profit/loss).

The Group assesses the adequacy of its capital requirements, cost of capital and gearing (ie debt/equity mix) as part of its broader strategic plan. The Group continuously reviews its capital structure to ensure:

Sufficient funds and financing facilities, on a cost effective basis, are available to assist the Group's property investment and management business;
Sufficient liquid buffer is maintained; and
Distributions to security holders are in line with the stated distribution policy.

The Group can alter its capital structure by issuing new stapled units (or securities), adjusting the amount of distributions paid to security holders, returning capital to security holders, buying back securities, selling assets to reduce debt, adjusting the timing of capital expenditure and through the operation of a distribution reinvestment plan. Additionally the Group can alter its capital structure by the use of debt facilities including repaying debt and issuing debt via debt capital markets and derivative financial instruments.

The Group's debt financial covenants are detailed in note 12.

Management monitors the capital structure by the gearing ratio. The gearing ratio is calculated in line with the debt covenants as:

finance debt net of cash and excluding derivatives; divided by,
total tangible assets net of cash and excluding derivatives.

The Group's target gearing range is 30% to 40%, however the Group has a preference for gearing to remain below 35% at this point in the cycle.

The gearing ratio at 30 June 2017 was 31.8% (30 June 2016: 34.0%). Refer note 12 for additional information.

(b) Financial risk management

The Group's activities expose it to a variety of financial risk, including:

(i) credit risk
(ii) liquidity risk
(iii) market risk (foreign exchange and interest rate)

The Group seeks to minimise the effects of these risks by using derivative financial instruments to hedge or economically hedge certain risk exposures. The use of financial derivatives is governed by the Group's policies as approved by the Board. The Group does not enter or trade financial instruments including derivative financial instruments for speculative purposes.

(b)(i) Financial risk management - credit

Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has exposure to credit risk on its financial assets included in its statement of financial position. This includes cash and cash equivalents, derivative financial instruments (hedging) as well as credit receivables due from tenants and managing agents.

For financial investments or market risk hedging the Group manages this risk by investing and transacting derivatives with multiple counterparties to minimise the Group's exposure to any one counterparty. Wherever possible, for financial investments and economic hedging the Group only deals with investment grade counterparties.

Exposure to customer credit risk is also monitored. A significant share of the Group's revenue for the current and prior year is from Woolworths Limited which has a BBB Standard and Poor's credit rating.

The Group reviews the aggregate exposure of tenancies across its portfolio on a regular basis.

Derivative counterparties and cash deposits are currently limited to financial institutions with an appropriate credit rating.

The Group and Retail Trust's exposure to credit risk is in the table below.

	SCA Property Group		Retail Trust
	30 Jun 2017	30 Jun 2016	30 Jun 2017	30 Jun 2016
	$m	$m	$m	$m
Cash and cash equivalents	3.6	3.8	2.0	2.4
Receivables	22.4	13.3	21.4	13.2
Derivative financial instruments	56.8	85.8	56.8	85.8
	82.8	102.9	80.2	101.4

The maximum exposure of the Group to credit risk as at 30 June 2017 and 30 June 2016 is the carrying amount of the financial assets in its statement of Consolidated Balance Sheets.

Receivables relate to tenant and managing agent receivables. Receivables are reviewed regularly throughout the year. A provision for doubtful debts is made where collection is deemed uncertain. Part of the Group's policy is to hold collateral as security for tenants via bank guarantees (or less frequently collateral such as deposits or cash and personal guarantees). There were no significant financial assets from major tenants that were past due at 30 June 2017 or 30 June 2016. Refer also note 9.

(b)(ii) Financial risk management - liquidity

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group aims at having flexibility in funding by keeping sufficient cash and/or committed credit lines available whilst maintaining a low cost of holding these facilities. Management prepares and monitors rolling forecasts of liquidity requirements on the basis of expected cash flow.

The Group manages liquidity risk through monitoring its net expected funding needs including the maturity of its debt portfolio. The Group also manages liquidity risk by maintaining a liquidity buffer of cash and undrawn debt facilities.

The debt facilities are made up of Bank bilateral facilities, A$ medium term notes and US notes. Details of these debt facilities, including finance facilities available, are at note 12.

Refinancing risk, also part of liquidity risk, is the risk that the maturity profile of the debt makes it difficult to refinance maturing debt, and/or that the cost of refinancing exposes the Group to potentially unfavourable market conditions at any given time. The Group is exposed to refinancing risks arising from the availability of finance as well as the interest rates and credit margins at which

financing is available. The Group manages this risk, where appropriate, by refinancing borrowings in advance of the maturity of the borrowing and by securing longer term facilities.

Non-derivative financial instruments

The contractual maturities of the Group's and Retail Trust's non-derivative financial liabilities at reporting date are reflected in the following table. It shows the undiscounted contractual cash flows required to discharge the liabilities including principal, interest, margin, line fees and foreign exchange rates as at the reporting date. Foreign currencies have been converted at exchange rates at the reporting date. Interest rates are based on the interest rates as at the reporting date.

	1 year or less$m	2 - 3 years$m	4 - 5 years$m	More than 5 years$m	Total$m
30 June 2017
SCA Property Group
Payables	43.4	-	-	-	43.4
Distribution payable	49.8	-	-	-	49.8
Interest bearing liabilities	32.6	246.2	268.1	503.2	1,050.1
	125.8	246.2	268.1	503.2	1,143.3
Retail Trust
Payables	50.0	-	-	-	50.0
Distribution payable	49.8	-	-	-	49.8
Interest bearing liabilities	32.6	246.2	268.1	503.2	1,050.1
	132.4	246.2	268.1	503.2	1,149.9
30 June 2016
SCA Property Group
Payables	23.0	-	-	-	23.0
Distribution payable	45.5	-	-	-	45.5
Interest bearing liabilities	25.5	85.3	399.2	332.6	842.6
	94.0	85.3	399.2	332.6	911.1
Retail Trust
Payables	29.2	-	-	-	29.2
Distribution payable	45.5	-	-	-	45.5
Interest bearing liabilities	25.5	85.3	399.2	332.6	842.6
	100.2	85.3	399.2	332.6	917.3

Derivative financial instruments

The following tables show the undiscounted cash flows required to discharge the Group's and Retail Trust's derivative financial instruments in place at 30 June 2017 at the rates as at the reporting date. Foreign currencies have been converted at exchange rates at the reporting date.

	1 year or less$m	1 - 3 years$m	3 - 5 years$m	More than 5 years$m	Total$m
30 June 2017
SCA Property Group & Retail Trust
Interest rate swaps - net	0.7	3.6	3.1	5.0	12.4
Cross currency interest rate swaps - net	2.9	4.4	2.9	46.6	56.8
	3.6	8.0	6.0	51.6	69.2

30 June 2016
SCA Property Group & Retail Trust
Interest rate swaps - net	-	(0.3)	1.7	8.6	10.0
Cross currency interest rate swaps - net	2.8	5.9	5.4	57.0	71.1
	2.8	5.6	7.1	65.6	81.1

(b)(iii) Financial risk management – market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group's financial performance or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk within acceptable parameters, while optimising the return.

Foreign exchange risk

Foreign exchange risk arises when anticipated transactions or recognised assets and liabilities are denominated in a currency that is not the Group's presentation currency, being Australian dollars. The Group has currency exposure to the United States dollar (USD) and had currency exposure to the New Zealand dollar (NZD).

Foreign exchange risk - New Zealand dollar

The Group's and the Retail Trust's exposure to the NZD was through owning properties in New Zealand. On 10 June 2016 the Group announced it entered into a sale contract with Stride Property Group (NZX: STR) for the sale of SCP's New Zealand properties. This sale was completed during the year ended 30 June 2017.

At 30 June 2016 all of the New Zealand properties were classified for financial reporting purposes as a disposal group held for sale. During the year ended 30 June 2017 the Group completed the sale of SCP's New Zealand properties such that there were no NZ$ assets (including NZ$ cash) or NZ$ liabilities (including NZ$ debt) at 30 June 2017.

Foreign exchange risk - United States Dollar

The Group's and the Retail Trust's exposure to the United States dollar is through borrowing in USD denominated debt via the US notes issued during the year ended 30 June 2015. The debt and interest payments are fully economically hedged. Refer below and the US notes are discussed at note 12.

Cross currency interest rate swap contracts

The Group has reduced its future exposure to the foreign exchange risk inherent in the carrying value of its US dollar borrowings (refer US note issue discussed above and note 12) by using cross currency interest rate swaps.

Under cross currency interest rate swap contracts, the Group agrees to exchange specified principal and interest foreign currency amounts at agreed future dates at a specified exchange rate. Such contracts enable the Group to mitigate the risk of adverse movements in foreign exchange rates in relation to principal and interest payments arising under the US dollar note issue.

The Group receives fixed amounts in US dollars and pays both variable interest rates (based on Australian BBSW) and fixed interest rates based on agreed fixed interest rates. As a result of issuing the US notes denominated in USD the Group has entered into cross currency interest rate swaps which have fully economically hedged the US notes USD principal outstanding and also the obligation to pay fixed USD interest to floating AUD interest. The following table details the swap contracts principal and interest payments over various durations at balance sheet date.

		SCA Property Group & Retail Trust
	1 year or less$m	2 - 3years$m	4 - 5years$m	More than 5 years$m	Total$m
30 June 2017
Buy US dollar - interestAmount (AUD)Exchange rateAmount (USD)	6.70.93876.3	13.40.938712.6	13.40.938712.6	41.30.938738.8	74.80.938770.2
Buy US dollar - PrincipalAmount (AUD)Exchange RateAmount (USD)	-0.9387-	-0.9387-	-0.9387-	159.80.9387150.0	159.80.9387150.0
30 June 2016
Buy US dollar - interestAmount (AUD)Exchange rateAmount (USD)	6.70.93876.3	13.40.938712.6	13.40.938712.6	48.00.938745.1	81.60.938776.6
Buy US dollar - PrincipalAmount (AUD)Exchange RateAmount (USD)	-0.9387-	-0.9387-	-0.9387-	159.80.9387150.0	159.80.9387150.0

Sensitivity analysis – foreign exchange risk

The following sensitivity analysis shows the effect on profit/(loss) after tax and on equity if the Australian dollar had increased (strengthened) by 10% or decreased (weakened) by 10% at balance sheet date with all other variables held constant. Profit/(loss) after tax excludes discontinued operation.

	Profit/ loss after tax		Equity
	Effect of 10%increase in A$exchange rate$m	Effect of 10%decrease in A$exchange rate$m	Effect of 10%increase in A$exchange rate$m	Effect of 10%decrease in A$exchange rate$m
30 June 2017
SCA Property Group & Retail TrustA$ equivalent of foreign exchange balances denominated in USD	(3.4)	4.2	(3.4)	4.2
30 June 2016
SCA Property Group & Retail TrustA$ equivalent of foreign exchange balances denominated in USD	(5.7)	6.9	(5.7)	6.9

Interest rate risk

Interest rate risk is the risk that the fair value or cash flows of financial instruments will fluctuate due to changes in market interest rates.

The Group is exposed to interest rate risk as it can borrow funds at both fixed and floating interest rates. This risk is managed by maintaining an appropriate mix between fixed and floating rate borrowings and through the use of interest rate swap contracts.

Hedging activities are evaluated regularly.

The Group's exposures to interest rates on financial liabilities are detailed in the liquidity risk management section of this note. Exposure to cash and cash equivalents is limited to $3.6 million (30 June 2016: $3.8 million).

Interest rate swap contracts

The Group's interest rate risk arises from borrowings and cash holdings. Interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates or from fixed to floating. Under the interest rate swaps, the Group agrees with other parties to exchange, at specified intervals, the difference between fixed contract rates and floating-rate interest amounts (or visa versa) calculated by reference to an agreed notional principal amount.

The Group's bilateral borrowings are generally at floating rates. Borrowings with floating rates expose the Group to cash flow interest rate risk. The Group's preference is to be protected from interest rate movements in the two to five year term through appropriate risk management techniques. These techniques include using floating to fixed interest rate swaps. Such interest rate swaps have the economic effect of converting borrowings from floating rates to fixed rates.

Additionally the Group has fixed rate borrowings in the form of A$ and US$ US notes and the A$ medium term note.

The requirements under Australian accounting standards in respect of documentation, designation and effectiveness for hedge accounting cannot be met in all circumstances. As a result the Group does not apply hedge accounting for any derivatives as at 30 June 2017 or 30 June 2016.

The fair value of interest rate swaps at the reporting date is determined by discounting the future cash flows using the forward market interest rate curve at reporting date.

The Group's exposure to interest rate risk and the effective interest rates on financial assets and liabilities at reporting date are in the following table.

For the year ended 30 June 2017

	SCA Property Group
				Fixed interest rate
	Interest rate	Floatinginterest rate	Less than 1year	1 - 5 years	More than 5years	Total
	(%p.a.)	$m	$m	$m	$m	$m
30 June 2017
Financial assets
Cash and cash equivalents	1.3%	3.6	-	-	-	3.6
Financial liabilities
Interest bearing liabilities
Denominated in AUD - floating	3.7%	(174.0)	-	-	-	(174.0)
Denominated in AUD - fixed (MTN)	3.8%	-	-	(225.0)	(175.0)	(400.0)
Denominated in AUD - fixed (USPP)	6.0%	-	-	-	(50.0)	(50.0)
Denominated in USD - fixed (USPP)	4.2%	-	-	-	(195.4)	(195.4)
Total financial liabilities		(174.0)	-	(225.0)	(420.4)	(819.4)
Total net financial liabilities		(170.4)	-	(225.0)	(420.4)	(815.8)

The Retail Trust's exposure to interest rate risk and the effective interest rates on financial assets and liabilities at reporting date are in the table below.

	Retail Trust
				Fixed interest rate
	Interest rate	Floatinginterest rate	Less than 1year	1 - 5 years	More than 5years	Total
	(%p.a.)	$m	$m	$m	$m	$m
30 June 2017
Financial assets
Cash and cash equivalents	1.3%	2.0	-	-	-	2.0
Financial liabilities
Interest bearing liabilities
Denominated in AUD - floating	3.7%	(174.0)	-	-	-	(174.0)
Denominated in AUD - fixed	3.8%	-	-	(225.0)	(175.0)	(400.0)
Denominated in AUD - fixed (USPP)	6.0%	-	-	-	(50.0)	(50.0)
Denominated in USD - fixed (USPP)	4.2%	-	-	-	(195.4)	(195.4)
Total financial liabilities		(174.0)	-	(225.0)	(420.4)	(819.4)
Total net financial liabilities		(172.0)	-	(225.0)	(420.4)	(817.4)

The maturity profile and the weighted average interest rate of the fixed and floating derivatives (notional principal) held at reporting date by both the Group and the Retail Trust can be summarised in the table below.

As at 30 June 2017	June 2018	June 2019	June 2020	June 2021	June 2022	June 2023
	$m	$m	$m	$m	$m	$m
Denominated in AU$Interest rate swaps (fixed)	275.0	275.0	275.0	100.0	50.0	50.0
Average fixed rate	1.9%	1.9%	1.9%	1.8%	1.8%	1.8%
Interest rate swaps (floating)	50.0	50.0	50.0	50.0	50.0	50.0

The Group's exposure to interest rate risk and the effective interest rates on financial assets and liabilities at 30 June 2016 are in the following table.

For the year ended 30 June 2017

	SCA Property Group
		Floating	Fixed interest rate
	Interest rate	interest rate	Less than 1year	1 - 5 years	More than 5years	Total
	(%p.a.)	$m	$m	$m	$m	$m
30 June 2016
Financial assets
Cash and cash equivalents	1.7%	3.8	-	-	-	3.8
Financial liabilities
Interest bearing liabilities
Denominated in AUD - floating	3.3%	(210.0)	-	-	-	(210.0)
Denominated in AUD - fixed (MTN)	3.8%	-	-	(175.0)	-	(175.0)
Denominated in AUD - fixed (USPP)	6.0%	-	-	-	(50.0)	(50.0)
Denominated in USD - fixed (USPP)	4.2%	-	-	-	(202.0)	(202.0)
Total financial liabilities		(210.0)	-	(175.0)	(252.0)	(637.0)
Total net financial liabilities		(206.2)	-	(175.0)	(252.0)	(633.2)

The Retail Trust's exposure to interest rate risk and the effective interest rates on financial assets and liabilities at 30 June 2016 are in the table below.

	Retail Trust
		Fixed interest rateFloating
	Interest rate	interest rate	Less than 1year	1 - 5 years	More than 5years	Total
	(%p.a.)	$m	$m	$m	$m	$m
30 June 2016
Financial assets
Cash and cash equivalents	1.7%	2.4	-	-	-	2.4
Financial liabilities
Interest bearing liabilities
Denominated in AUD - floating	3.3%	(210.0)	-	-	-	(210.0)
Denominated in AUD - fixed	3.8%	-	-	(175.0)	-	(175.0)
Denominated in AUD - fixed (USPP)	6.0%	-	-	-	(50.0)	(50.0)
Denominated in USD - fixed (USPP)	4.2%	-	-	-	(202.0)	(202.0)
Total financial liabilities		(210.0)	-	(175.0)	(252.0)	(637.0)
Total net financial liabilities		(207.6)	-	(175.0)	(252.0)	(634.6)

The maturity profile and the weighted average interest rate of the fixed derivatives (notional principal) held at 30 June 2016 by both the Group and the Retail Trust can be summarised below.

As at 30 June 2016	June 2017$m	June 2018$m	June 2019$m	June 2020$m	June 2021$m	June 2022$m
Denominated in AU$Interest rate swaps (fixed)	325.0	325.0	325.0	175.0	-	-
Average fixed rate	2.0%	2.0%	2.0%	2.0%	-	-
Interest rate swaps (floating)	50.0	50.0	50.0	50.0	50.0	50.0

Sensitivity analysis – interest rate risk

The following sensitivity analysis shows the effect on profit/(loss) after tax and equity if market interest rates at balance sheet date had been 100 basis points higher/lower with all other variables held constant. Profit/(loss) after tax excludes discontinued operation.

	Profit/loss after tax1		Equity
	100bp higher	100bp lower	100bp higher	100bp lower
	$m	$m	$m	$m
30 June 2017
SCA Property Group & Retail Trust
Effect of market interest rate movement	(16.7)	16.8	(16.7)	16.8
30 June 2016
SCA Property Group & Retail Trust
Effect of market interest rate movement	(22.7)	22.9	(22.7)	22.9

1 The aim of the Group's interest rate hedging strategy is to reduce the impact on Funds from Operations (cash) of movements in interest rates. Changes in interest rates include changes to the non-cash mark-to-market valuations of the swaps which flow through the Group's IFRS profit and loss but which are excluded from Funds from Operations.

(c) Accounting classifications and fair values

The fair value of interest rate derivatives is determined using a generally accepted pricing model based on discounted cash flow analysis using assumptions supported by observing market rates.

Except as disclosed below, the Directors consider that the carrying amounts of financial assets and financial liabilities recognised at amortised cost in the consolidated financial statements approximate their fair values.

The Directors consider that the carrying amounts of other financial assets and financial liabilities, which are recognised at amortised cost in the Consolidated Financial Statements, approximates their fair values other than the US notes and the A$ medium term notes. The amortised cost of the US notes, converted to AUD for the USD denominated notes at the prevailing foreign exchange rate at 30 June 2017 (which was AUD 1.00 = USD 0.7678 (30 June 2016: 0.7425), is $245.4 million (30 June 2016: $252.0 million) (refer note 12). The amortised cost of the A$ medium term notes, including the $225.0 million issued during the financial year, is $400.0 million (30 June 2016: $175.0 million). The fair value of the US notes and A$ medium term notes can be different to the carrying value. The fair value, additionally, takes into account movements in the underlying base interest rates and credit spreads for similar financial instruments including extrapolated yield curves over the tenor of the notes. On this basis the estimated fair value of the US notes and the A$ medium term notes is $257.1 million and $398.4 million (30 June 2016: $223.0 million and $177.2 million respectively). The estimated fair value of the A$ medium term notes includes the $225.0 million of A$ medium notes issued during the year.

Fair value hierarchy

The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

There were no transfers between levels during the year.

For the year ended 30 June 2017

	SCA Property Group & Retail Trust
	Level 1	Level 2	Level 3	Total
	$m	$m	$m	$m
30 June 2017
Financial assets carried at fair value
Investment - available for sale	81.0	-	-	81.0
Interest rate swaps	-	10.2	-	10.2
Cross currency interest rate swaps	-	46.6	-	46.6
	81.0	56.8	-	137.8
Financial liabilities carried at fair value
Interest rate swaps	-	0.1	-	0.1
30 Jun 2016
Financial assets carried at fair value
Interest rate swaps	-	13.0	-	13.0
Cross currency interest rate swaps	-	72.8	-	72.8
	-	85.8	-	85.8
Financial liabilities carried at fair value
Interest rate swaps	-	4.7	-	4.7

For financial instruments not quoted in active markets, the Group uses valuation techniques such as present value, comparison to similar instruments for which market observable prices exist and other relevant models used by market participants. These valuation techniques use both observable and unobservable market inputs.

Interest rate derivatives are financial instruments that use valuation techniques with only observable market inputs and are included in Level 2 above.

The Group's only level 3 financial instrument is the option described in note 18. This option is classified as a derivative valued at fair value through profit or loss. No revaluations occurred since initial recognition of this option. The fair value of the option adopted included consideration of a number of unobservable inputs. Revaluations in future periods will also involve a fair value method based on unobservable inputs. Unobservable inputs are categorised as level 3 in the fair value hierarchy.

26. Other assets

Other assets recognised of $1.5 million at 30 June 2017 include predominantly property related prepayments. Other assets recognised at 30 June 2016 of $5.7 million include property related prepayments, a deposit of $1.5 million paid for the Muswellbrook Fair (NSW) property which settled during the year ended 30 June 2017, and an amount of $2.4 million paid for an option to acquire the Clemton Park (NSW) property (Clemton Park was acquired during the year ended 30 June 2017).

27. Investment in associates

The Group and Retail Trust's Investment in associates comprises of:

SURF 1: 7,959,000 units in SCA Unlisted Retail Fund 1 (SURF 1) at $1.00 each acquired on 1 October 2015. The total units on issue of SURF 1 are 32,600,000; and
SURF 2: 8,447,000 units in the SCA Unlisted Retail Fund 2 (SURF 2)1 at $1.00 each acquired on 2 June 2017. The total units on issue of SURF 2 are 29,500,000.

SURF 1 and 2 are unlisted closed end property funds. The Group recognises its 24.4% interest in SURF 1 and its 28.6% in SURF 2 as Investment in associates using the equity method of accounting.

	SCA Property Group & Retail Trust
	30 Jun 2017	30 Jun 2016$m
	$m
Movement in investment in associates
Opening balance	8.1	-
Additions to equity accounted investment	8.5	8.0
Share of profits after income tax	1.3	0.6
Distributions received or receivable	(0.7)	(0.5)
Closing balance	17.2	8.1

1 On 2 June 2017 SCA Unlisted Retail Fund 2 (SURF 2) commenced operations with the allotment of 29,500,000 on units at $1.00 each. Shopping Centres Australasia Property Retail Trust was allotted 8,447,000 units or 28.6% units on this date and this investment is classified as an associate.

28. Cash and cash equivalents

	SCA Property Group		Retail Trust
	30 June 2017$m	30 June 2016$m	30 June 2017$m	30 June 2016$m
Cash and cash equivalents	3.6	3.8	2.0	2.4
Reconciliation to consolidated statements of cashflows
Cash and cash equivalents - continuing operations	3.6	3.8	2.0	2.4
Cash and cash equivalents - discontinued operation	-	0.3	-	0.3
Cash and cash equivalents at the end of the year as per consolidatedstatements of cashflows	3.6	4.1	2.0	2.7

29. Investment – available for sale

Investment – available for sale relates to the acquisition by the Group and the Retail Trust during the period of a 4.9% interest in Charter Hall Retail Trust (CHRT) (ASX: CQR). This interest equates to 19.9 million units. The cost of this interest (including transactions costs) was $83.8 million. As at 30 June 2017 this interest is valued at $81.0 million (based on the ASX closing share price of CHRT on the last trading day in June 2017 of $4.07). The difference between the cost of $83.8 million and the valuations at 30 June 2017 of $81.0 million is $2.8 million which is recorded in the Available for sale reserve (refer note 14).

The Investment – available for sale is classified as a level 1 fair value measurement financial asset being derived from inputs based on quoted prices that are observable. Refer also to the fair value hierarchy at note 25(c).

Additionally during the year ended 30 June 2017 the Group has received a distribution of $2.8 million in January 2017 and the Group is entitled to a further distribution on its investment of 14.0 cents per unit or $2.8 million in respect of the period ended 30 June 2017. This distribution was declared by the Responsible Entity of CHRT on 13 June 2017. These distributions totalling $5.6 million are included in the Group's and Retail Trust's Consolidated Statements of Profit and Loss as Distribution income.

30. Auditors' remuneration – continuing and discontinued operation

	SCA Property Group & Retail Trust
	30 Jun 201730 Jun 2016
	$'000	$'000
Audit and review of the financial statements	236.0	243.0
Assurance and compliance services	36.0	36.0
Other (including audit of the Australian Financial Service Licence(which is held by the Group) and other services)	14.0	12.0
	286.0	291.0

The auditor of the Group is Deloitte Touche Tohmatsu.

31. Subsequent events

* * *

In the opinion of the Directors of Shopping Centres Australasia Property Group RE Limited, the Responsible Entity of Shopping Centres Australasia Property Management Trust and Shopping Centres Australasia Property Retail Trust (the "Retail Trust"):

(a) The Financial Statements and Notes, of Shopping Centres Australasia Property Management Trust and its controlled entities, including Shopping Centres Australasia Property Retail Trust and its controlled entities, (the "Group"), set out on pages 14 to 51 are in accordance with the Corporations Act 2001, including:
- (i) giving a true and fair view of the Group's and the Retail Trust's financial position as at 30 June 2017 and of their performance, for the year ended 30 June 2017; and
- (ii) complying with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Regulations 2001;
(b) there are reasonable grounds to believe that both the Group and the Retail Trust will be able to pay their debts as and when they become due and payable.

Note 2 confirms that the Financial Statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board.

The Directors have been given the declaration required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer for the period ended 30 June 2017.

Signed in accordance with a resolution of the Directors.

Chair Sydney 7 August 2017

Deloitte Touche Tohmatsu A.B.N. 74 490 121 060

Grosvenor Place 225 George Street Sydney NSW 2000 PO Box N250 Grosvenor Place Sydney NSW 1220 Australia

DX 10307SSE Tel: +61 (0) 2 9322 7000 Fax: +61 (0) 2 9322 7001 www.deloitte.com.au

Independent Auditor's Report to the Stapled Security Holders of Shopping Centres Australasia Property Management Trust and Shopping Centres Australasia Property Retail Trust

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of:

Shopping Centres Australasia Property Management Trust ("SCA Property Management Trust") and its controlled entities ("SCA Property Group") which comprises the consolidated balance sheet as at 30 June 2017, the consolidated statement of profit or loss, the consolidated statement of other comprehensive income, the consolidated statement of cash flows, the consolidated statement of changes in equity for the year then ended and notes to the financial statements, including a summary of significant accounting policies and the directors' declaration; and
Shopping Centres Australasia Property Retail Trust and its controlled entities ("SCA Property Retail Trust") comprising the consolidated balance sheet as at 30 June 2017, the consolidated statement of profit or loss, the consolidated statement of other comprehensive income, the consolidated statement of cash flows, the consolidated statement of changes in equity for the year then ended and notes to the financial statements including a summary of significant accounting policies and the directors' declaration.

In our opinion, the accompanying financial report of SCA Property Group and SCA Property Retail Trust is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of SCA Property Group's and SCA Property Retail Trust's financial positions as at 30 June 2017 and of their financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of SCA Property Group and SCA Property Retail Trust in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Shopping Centres Australasia Property Group RE Limited (the "Responsible Entity"), would be in the same terms if given to the directors as at the time of this auditor's report.

Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Touche Tohmatsu.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter	How the scope of our audit responded to the KeyAudit Matter
Investment property valuation	Our procedures included, but were not limited to:
As at 30 June 2017, SCA Property Grouprecognisedinvestmentpropertiesvaluedat$2,364.6m (2016: $1,888.0m) as disclosed in note	Assessing management's process over propertyvaluations and the oversight applied by thedirectors;
10.The fair value of investment property is calculatedin accordance with the valuation policy set out inNote 2 (k) and Note 10 which outline two valuationmethodologies used by SCA Property Group.	Assessing the independence, competence andobjectivity of the internal and external valuers;
	Performing an overall analytical review and riskassessment of the portfolio, analysing the keyinputs and assumptions;
Thevaluationprocessrequiressignificantjudgment in the following key areas:forecast cash flows,capitalisation rates, anddiscount rates.	Assessing the assumptions used in the portfolio,with particular focus on the capitalisation rate anddiscount rate with reference to external markettrends and transactions and challenging thoseassumptions where appropriate;
The capitalisation of net income method applies acapitalisation rate to normalised market netoperating income. The discounted cash flowmethod uses a ten year cash flow forecast andterminal value calculation discounted to presentvalue. In addition, internal and external valuersapply professional judgement concerning marketconditionsandfactorsimpactingindividualproperties.The internal and external valuations are reviewedby management who recommends each property'svaluation to the Audit, Risk Management andComplianceCommitteeandtheBoardinaccordance with SCA Property Group's internalvaluation protocol.	Holding discussions with management (and theexternalvaluersasneeded)toobtainanunderstanding of portfolio movements and theiridentification of any additional property specificmatters; and
	Testing on a sample basis of properties, bothexternally and internally valued, of the following;
	othe integrity of the information in thevaluation by agreeing key inputs such asnet operating income to underlying recordsand source evidence;
	othe forecasts used in the valuations withreference to current financial results suchasrevenuesandexpenses,capitalexpenditure requirements, vacancy ratesand lease renewals; and
	othe mathematical accuracy of the models.
	We also assessed the appropriateness of the related

disclosures included in Note 10 to the financial statements.

Other Information

The directors of the Responsible Entity ("the directors") are responsible for the other information. The other information comprises the Directors' Report, which we obtained prior to the date of this auditor's report. The other information also includes the other documents which will be included in the Annual Report (but does not include the financial report, the remuneration report and our audit reports thereon).

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

When we read the other information in the Annual Report which we have not yet received, if we conclude that there is a material misstatement therein, we are required to communicate the matter to the directors and use our professional judgement to determine the appropriate action.

Directors' Responsibilities for the Financial Report

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

In preparing the financial report, the directors are responsible for assessing SCA Property Group's and SCA Property Retail Trust's ability to continue as going concerns, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate SCA Property Group and/or SCA Property Retail Trust or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of SCA Property Group's and/or SCA Property Retail Trust's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern bases of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on SCA Property Group's and/or SCA Property Retail Trust's ability to continue as a going concerns. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause SCA Property Group and/or SCA Property Retail Trust to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

DELOITTE TOUCHE TOHMATSU

AG Collinson Partner Chartered Accountants Sydney, 7 August 2017

AI assistant

REGION GROUP — Annual Report 2017

65695_rns_2017-08-07_85504160-6e5e-4eb7-b50d-65929f95075d.pdf

APPENDIX 4E - Results for announcement to the market

Full Year Report For the year ended 30 June 2017

Distributions

Net Tangible Assets

Details of entities over which control has been gained or lost during the period:

Details of any associates and Joint Venture entities required to be disclosed:

Accounting standards used by foreign entities

Audit

Distribution Reinvestment Plan (DRP)

Other significant information and commentary on results including a brief explanation of the figures above

Shopping Centres Australasia Property Group

Directors' Report

1. Directors

Mr Philip Marcus Clark AM (appointed 19 September 2012)

Dr Ian Pollard (appointed 26 September 2012)

Mr Philip Redmond (appointed 26 September 2012)

Mr Mark Fleming (appointed CFO 20 August 2013, appointed Executive Director 26 May 2015)

Directors' relevant interests

Directors' attendance at meetings

2. Principal activities

3. Property portfolio

Investment properties - acquisitions

Investment properties - disposals

Revaluations

Australian property

4. Operational and financial review

Operational review

Financial review

Funds from Operations and Adjusted Funds from Operations

5. Contributed equity

6. Significant changes and developments during the year

Investment properties - acquisitions and disposals

Funds management

Investment properties – other

Acquisition – 4.9% interest in Charter Hall Retail Trust (ASX: CQR)

Capital management - debt

Facility limit and undrawn facilities

7. Major business risk profile

8. Business strategies and prospects for future financial years

9. Environmental regulations

10. Indemnification and insurance of Directors, Officers and Auditor

11. Auditor's Independence Declaration

12. Audit and non-audit fees

13. Subsequent events

14. Rounding of amounts

Shopping Centres Australasia Property Management Trust and Shopping Centres Australasia Property Retail Trust

Shopping Centres Australasia Property Group Consolidated Statements of Profit or Loss

Shopping Centres Australasia Property Group Consolidated Statements of Profit or Loss and Other Comprehensive Income

Shopping Centres Australasia Property Group Consolidated Balance Sheets

Shopping Centres Australasia Property Group Consolidated Statements of Changes in Equity

Shopping Centres Australasia Property Group Consolidated Statements of Cash Flows

1. Corporate information

2. Significant accounting policies

(a) Basis of preparation

Historical cost convention

Going concern

Rounding

i. Statement of compliance

ii. New and amended accounting standards and interpretations

Application of new and revised Accounting Standards not yet effective

(b) Basis of consolidation

Investments in associates

(c) Revenue recognition

(d) Finance costs

(e) Taxation

(f) Goods and services tax (GST)

(g) Discontinued operation and disposal group held for sale

(h) Foreign currency

(i) Cash and cash equivalents

(j) Trade and other receivables

(k) Investment properties

(l) Recoverable amount of assets

(m) Payables

Distribution

(n) Provisions

(o) Employee benefits

Equity based compensation arrangements

REGION GROUP Annual Report 2017