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BDO A-REIT SURVEY 2009

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Page 1: bdo A-REIT SuRvEy 2009 - Australian Securities Exchange · AbouT bdo bdo IS A mEmbER of bdo InTERnATIonAl – ThE woRld’S 5Th lARgEST AccounTIng And AdvISoRy fIRm wITh A pRESEncE

bdo A-REIT SuRvEy 2009

Page 2: bdo A-REIT SuRvEy 2009 - Australian Securities Exchange · AbouT bdo bdo IS A mEmbER of bdo InTERnATIonAl – ThE woRld’S 5Th lARgEST AccounTIng And AdvISoRy fIRm wITh A pRESEncE
Page 3: bdo A-REIT SuRvEy 2009 - Australian Securities Exchange · AbouT bdo bdo IS A mEmbER of bdo InTERnATIonAl – ThE woRld’S 5Th lARgEST AccounTIng And AdvISoRy fIRm wITh A pRESEncE

InTRoducTIon

Dear Colleagues,

BDO Corporate Finance is pleased to present the fifteenth edition of the BDO A-REIT Survey (“the BDO Survey”).

The BDO Survey covers the financial year ended 30 June 2009 (“FY09’) – a period in which volatility and concerns continued to permeate the A-REIT Sector (“the Sector”). Nevertheless by the end of the year the first signs of recovery were emerging.

The S&P/ASX Property 300 Index (“Property Index”) had fallen 44% from its peak in October 2007 to 1,388 at 30 June 2008. This significant decline has continued over the past year with the Property Index reaching a low of 533 on 6 March 2009 (representing a total fall of 79% from the October 2007 high). As at 30 June 2009 the Property Index had recovered to close at 739.

The correction in market prices of A-REITs resulted in many entities trading at considerable discounts to their asset backing. As the equity markets recovered and debt markets thawed insolvency and default risks diminished. In response to this the market prices of a number of these entities experienced significant rebounds from their low bases.

Key findings of the BDO Survey include:

• Only4ofthe58entitiessurveyedrecordedapositivetotalreturnfortheyear;

• Over91%oftheentitieshaverecordedafallinpropertyvaluesoverthe12months;

• 95%ofentitiestradedatadiscounttonettangibleassets(“NTA”) and for the first time since the 2002 BDO Survey, entitiesarenowpricedonaveragebelowtheirNTA(amedianshare/unitpricediscounttoNTAof55%);

• 8entitiessuspendeddistributionsduringtheperiod;and

• Entitieswithinternationalassetscontinuetounder-performthosewhichmainlyowndomesticproperties.

Following on from positive feedback in relation to our 2008 Survey, (where we accounted for the diversity of the A-REITs by classifying each as either a traditional unit trust or a stapled entity/company), we have again ranked the entities in each classification. We believe that this more appropriately distinguishes the results of those entities that have embarked upon a strategy of earnings diversification through utilising a stapled or corporate structure, from those that remain essentially as passive investors in property. We hope readers find this classification useful.

Our in depth knowledge of, and interest in, Australian listed and unlisted property funds has established us as leading independent advisers to the industry and we remain committed to following and analysing the trends in both the A-REIT Sector and the growing global property market.

On behalf of our national corporate finance team, we hope you find the BDO Survey to be a valuable tool for benchmarking the performance of the A-REIT Sector in Australia.

Best Regards,

Sebastian Stevens National Director, Corporate Finance

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bdo IS A mEmbER of bdo InTERnATIonAl – ThE woRld’S 5Th lARgEST AccounTIng And AdvISoRy fIRm wITh A pRESEncE In ovER 110 counTRIES And moRE ThAn 1,095 offIcES woRldwIdE.In Australia we have offices in every state and territory and have over 140 Directors and 1,200 staff. BDO offers a unique blend of services, including corporate, indirect and international taxation, corporate finance and valuations, business consulting, internal audit, specialist IT assurance and forensic services as well as the more traditional audit, accounting and advisory services.

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Page 5: bdo A-REIT SuRvEy 2009 - Australian Securities Exchange · AbouT bdo bdo IS A mEmbER of bdo InTERnATIonAl – ThE woRld’S 5Th lARgEST AccounTIng And AdvISoRy fIRm wITh A pRESEncE

IndEx

1 2009 TOP PERFORMERS 7

1.1 Top 3 unit trusts for 2009 8

1.2 Top 3 stapled entities/companies for 2009 10

2 CONTENDERS & CRITERIA 13

2.1 The contenders 14

2.2 Name changes 16

2.3 Scoring summary 16

2.4 Survey period 17

3 GENERAL FINDINGS 18

3.1 Summary of performance measures & benchmarks 20

3.2 Financial criteria 21

3.3 Investment criteria 22

3.4 Make-up performance of the Australian listed property sector 23

3.5 Market performance of A-REIT sector to 30 June 2009 25

3.6 Market performance of A-REIT sector year to October 2009 27

3.7 Asset values and write-downs 28

3.8 Capital raisings 31

3.9 Gearing analysis 32

3.10 Location of property assets 34

3.11 Weighted average investment rates 36

3.12 Weight average lease expiry 37

4 FULL RANKINGS 38

5 DETAILED SURVEY RESULTS 42

6 EXPLANATION OF CRITERIA AND RANKING 61

6.1 Financial criteria 62

6.2 Investment criteria 63

6.3 Method of ranking 64

6.4 Newcomers 66

6.5 Removals & small cap exclusions 66

7 BDO CORPORATE FINANCE PROPERTY EXPERTISE 68

8 DISCLAIMER 74

9 CONTACT US 75

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1 2009 Top pERfoRmERS

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2009 BDO A-REIT Survey8

2009 Top pERfoRmERS

1.1 Top 3 unit trusts for FY09

These traditional unit trusts typically include stand-alone trusts which provide investors with pure exposure to the underlying real estate portfolio. Management of the properties is generally contracted out to external professional property managers. Historically, these entities have made up the majority of the Sector.

Top 3 trusts Ranking

Overall Financial Investment

ING Real Estate Healthcare 1 7 5

CFS Retail Property Trust 5 27 2

Bunnings Warehouse Property Trust 6 32 1

#1 ING Real Estate Healthcare

Year Listed 2006

Trust background:

ING Real Estate Healthcare Fund invests in healthcare related properties including hospitals, specialist medical office buildings, medical centres, rehabilitation facilities, residential aged-care, medical related laboratories and other purpose-built healthcare facilities. ING Real Estate Healthcare Fund has an Australian portfolio of seven healthcare assets located in Queensland and Victoria.

Performance highlights:

• Toppedtheoneyearreturncategorywithapositivereturnof8%(theaverage of all entities for FY09 was negative 50%)

• Aboveaveragethreeyearreturnofnegative5%(theaverageofallentitieswas negative 33%)

• Aboveaveragedividendyieldof12%(theaverageofallentitieswas9%)

• RelativelysmalldeclineinNTAof15%(theaverageofallentitieswas46%)

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2009 BDO A-REIT Survey 9

#2 CFS Retail Property Trust

Year Listed 1994

Trust background:

The CFS Retail Property Trust’s portfolio comprises interests in regional and sub-regional shopping centres across Australia. At 30 June 2009 the Trust had 24 retail assets and total gross assets of $7.3 billion.

Performance highlights:

• RelativelystrongOne-yearreturnofnegative5%(theaverageofallentities was negative 50%)

• Achievedapositivethreeyearreturnof2%(relativetotheaverageofallparticipants of negative 33%)

• RelativelysmalldeclineinNTAof13%(theaverageofallentitieswas46%)

#3 Bunnings Warehouse Property Trust

Year Listed 1998

Trust background:

The Bunnings Warehouse Property Trust was established in 1998 with a focus on warehouse retailing properties, in particular, warehouses leased to Bunnings. The Trust’s portfolio has grown to a total of 60 properties as at June 2009 (53 established Bunnings warehouses, 1 Bunnings distribution centre, 1 development site for a Bunnings warehouse, 4 office/warehouse industrial properties, and a bulky goods showroom complex) with a total value of approximately $956 million.

Performance highlights:

• Thirdintheone-yearreturncategorywith5%(theaverageofallentitieswas negative 50%)

• Relativelystrongthreeyearreturnof1%(theaverageofallentitieswasnegative 33%)

• RelativelysmalldeclineinNTAof16%(averageofallentitieswas46%)

The top 3 unit trusts were in the top 5 entities overall in BDO’s Half Year 2009 survey.

Their ranking in the current BDO Survey indicates they were able to continue their strong performance in the second half of FY09.

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2009 BDO A-REIT Survey10

1.2 Top 3 stapled entities/companies for FY09

Stapled securities typically consist of a unit in a property trust and a share in a management or operating company that cannot be traded separately. We also include in this category those entities that operate only as companies. As discussed in previous BDO Surveys, the majority of the growth in the Sector in recent years has been driven by an increase in the number of stapled securities.

Top 3 stapled entities/companies Ranking

Overall Financial Investment

Ardent Leisure Group 2 9 3

ALE Property Group 3 3 6

Cromwell Group 4 5 15

#1 Ardent Leisure Group

Year Listed 2003

Company background:

Ardent Leisure Group (formerly Macquarie Leisure Group) is owner and operator of leisure assets including Dreamworld, WhiteWater World, d’Albora Marinas, AMF and Kingpin Bowling, Goodlife Health Clubs, as well as a growing portfolio of family entertainment assets in the USA through Main Event.

Performance highlights:

• Secondintheone-yearreturncategorywithapositive8%result(theaverageof all entities was negative 50%)

• Seventhinthethree-yearreturncategorywithanegative9%result(theaverage of all entities was negative 33%)

• Strongoperatingcashyieldof14%(11thoverall)versusanaverageforallentities of 10%

• Aboveaveragedividendyieldof11%(averageforallentitieswas9%)

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2009 BDO A-REIT Survey 11

#3 Cromwell Group

Year Listed 2006

Company background:

Formed in 2006 following the merger of Cromwell Corporation Limited and several unlisted property trusts, the Cromwell Group is engaged in property investment, property management and property development. Cromwell currently has over $1.7 billion in assets under management and services over 240 tenants throughout Australia.

Performance highlights:

• Seventhofallentitiesindistributionreturnwithdistributionyieldof14%

• Ninthofallentitiesinone-yearreturncategorywithareturnofnegative21%(relative to the average of all entities of negative 50%)

• Eleventhinthree-yearreturncategorywithanegative13%return(averageofall entities was negative 33%)

#2 ALE Property Group

Year Listed (stapling) 1998

Company background:

ALE Property Group is Australia’s largest listed freehold owner of pubs, owning over 100 pubs across Australia. All of the pubs in the portfolio are leased to the Australian Leisure and Hospitality Group Limited for an average initial term of around a further 20 years.

Performance highlights:

• Sixthintheone-yearreturncategorywithnegative15%(averageofallentities was negative 50%)

• Secondinthethreeyearreturncategorywithapositive4%return(averageofall entities was negative 33%)

• Aboveaverageoperatingcashyieldanddividendyield(12%and13%respectively)

• NochangeinNTA(averagedeclineofallentitiesinNTAof46%)

Strong operating cash and dividend yields have supplemented relatively good investment returns to elevate these entities above the pack.

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2conTEndERS & cRITERIA

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2009 BDO A-REIT Survey14

2.1 The contenders

The BDO Survey is based on the annual reports of entities within the real estate investment and development sector of Australia as at 30 June 2009. Fifty-eight entities (twenty-five unit trusts and thirty-three stapled entities/companies) with combined total assets of $190 billion have been included in the 2009 Edition. This compares to fifty-eight entities with combined total assets of $217 billion included in the 2008 Edition. Each year the eligibility of participants for inclusion in the BDO Survey is reassessed.

Entity name Size (1) Sector

Abacus Property Group 1,446 Multi sector

ALE Property Group 921 Hotels, pubs and entertainment precincts

APN UKA European Retail Trust 1,112 Retail shopping centres

Ardent Leisure Group 745 Hotels, pubs and entertainment precincts

Aspen Group 621 Multi sector

Astro Japan Property Trust 1,820 Multi sector

Australand Property Group 3,662 Development

Australian Education Trust 462 Office buildings

AV Jennings Limited 480 Development

Becton Property Group Limited 546 Development

Bunnings Warehouse Property Trust 1,000 Retail shopping centres

Carindale Property Trust 451 Retail shopping centres

Cedar Woods Properties Limited 163 Development

Centro Properties Group 18,235 Retail shopping centres

Centro Retail Trust 2,925 Retail shopping centres

CFS Retail Property Trust 7,322 Retail shopping centres

Challenger Diversified Property Group 850 Multi sector

Challenger Kenedix Japan Trust 841 Retail shopping centres

Challenger Wine Trust 266 Industrial estate

Charter Hall Group 524 Multi sector

Commonwealth Property Office Fund 3,157 Office buildings

Cromwell Group 1,309 Multi sector

Devine Limited 673 Development

Dexus Property Group 8,351 Multi sector

FKP Property Group 3,773 Development

Galileo Japan Trust 1,051 Multi sector

GEO Property Group 393 Office buildings

conTEndERS & cRITERIA

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2009 BDO A-REIT Survey 15

Entity name Size (1) Sector

Goodman Limited 8,583 Industrial estate

GPT Group 9,660 Multi sector

Growthpoint Properties Australia Trust 672 Development

Hedley Leisure & Gaming Property Fund 962 Hotels, pubs and entertainment precincts

ING Industrial Fund 3,629 Industrial estate

ING Office Fund 2,969 Office buildings

ING Real Estate Community Living Group 632 Office buildings

ING Real Estate Entertainment Fund 413 Hotels, pubs and entertainment precincts

ING Real Estate Healthcare Fund 208 Office buildings

Lend Lease Corporation 8,319 Development

Macquarie CountryWide Trust 2,126 Retail shopping centres

Macquarie DDR Trust 1,898 Retail shopping centres

Macquarie Office Trust 4,434 Office buildings

Mirvac Group 7,374 Multi sector

Mirvac Industrial Trust 565 Industrial estates

Mirvac Real Estate Investment Trust 1,021 Multi sector

Multiplex European Property Fund 510 Retail shopping centres

Peet Limited 648 Development

Prime Retirement & Aged Care Property Trust 1,384 Office buildings

Rabinov Property Trust 252 Multi sector

Real Estate Capital Partners USA Property Trust 363 Multi sector

RNY Property Trust 186 Office buildings

Stockland Corporation 14,461 Multi sector

Sunland Group Limited 897 Development

Thakral Holdings Group 1,205 Retail shopping centres

Tishman Speyer Office Fund 1,249 Office buildings

Trafalgar Corporate Group 302 Office buildings

Trinity Group 330 Multi sector

Valad Property Group 1,268 Multi sector

Westfield Group 49,322 Retail shopping centres

Westpac Office Trust 1,202 Office buildings

Note 1: Total assets as at 30 June 2009 ($ Millions)

Of the fifty-eight entities participating in the BDO Survey, 43% are traditional unit trusts, with the remaining entities either having stapled or corporate structures.

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2009 BDO A-REIT Survey16

2.2 Name changes

The following entities have changed names since the 2008 BDO Survey.

old name new name date of change

Babcock and Brown Japan Property Trust Astro Japan Property Trust 28 July 2008

Orchard Industrial Property Fund Growthpoint Properties Australia 19 August 2009

Macquarie Leisure Trust Ardent Leisure Trust 28 August 2009

Australian Commercial Property Trust Rabinov Property Trust 27 April 2009

2.3 Scoring summary

Explanation of the criteria used in this survey together with the and methods of weighting and ranking is included at Section 6. A summary of the scoring for the 2009 BDO Survey is as follows.

Total overall score of survey weighted score 2009 %

Financial criteria 300 60

Investment criteria 200 40

Total overall 500 100

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2009 BDO A-REIT Survey 17

2.4 Survey period

The BDO Survey only takes into account information disclosed in each entity’s annual report for the year ended 30 June 2009. For those entities with 31 December year ends, half year reports to 30 June 2008 and 2009 have been used together with the annual report to 31 December 2008 to create comparable results for the year ended 30 June 2009.

$14 bIllIonThe total assets of the thirty-three participants in the inaugural 1995 BDO A-REIT Survey. This has grown to the fifty-eight entities with total assets of $190 billion in the 2009 BDO Survey.

This is the fifteenth edition of the BDO A-REIT Survey which has tracked changing dynamics of the listed Australian property industry.

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3gEnERAl fIndIngS

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2009 BDO A-REIT Survey20

3.1 Summary of performance measures and benchmarks

financial criteria high low Average

Cash yield on weighted average net assets 46% (3)% 10%

Distribution return on investment 26% 0% 9%

Tax advantaged distributions 100% 0% 33%

Movement in NTA 6% (423)%1 (46)%

Premium/(Discount) to NTA 53% (84)% (46)%

Investment criteria high low Average

Total rate of return on investment (one year) 8% (90)% (50)%

Total rate of return on investment (three year) 5% (75)% (33)%

Volume of trading on ASX (liquidity) 335% 0% 86%

benchmarks Average all participants

Gearing ratio 46%

Weighted average interest rate on borrowings 5%

Average property valuation movement (on gross assets)

(16)%

Average lease term to expiry (years) 7

1 Centro Properties Group’s NTA per share fell from positive $0.69 at 30 June 2008 to negative $2.23 at 30 June 2009.

gEnERAl fIndIngS

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2009 BDO A-REIT Survey 21

3.2 Financial criteria

financial criteria median 2009 median 2008

Operating cash yield 7.6% 6.9%

Distribution return on investment 8.6% 7.1%

Tax advantaged distributions 20% 47%

Movement in NTA (40)% (4)%

Premium to NTA (54)% 0%

Not surprisingly, 2009 presented some interesting results in the financial criteria:

• WenotedlastyearthatitwasthefirsttimeinthehistoryoftheBDOSurveythemedianNTAhadfallen(medianNTAfellby4% during FY08). Further declines in property values and write-downs of other assets during FY09 have caused a significant reduction in NTA of 40%. As with last year, declines in property values have a compound effect on NTA, due to the effect of gearing.

• ThemedianoperatingcashyieldanddistributionreturnoninvestmenthaveincreasedslightlyduringFY09.Thishasbeencaused by reductions in the denominators of those criteria (average unitholder funds and average share price respectively).

• Wenotethateightentities(14%ofparticipants)havenotpaidadistributionduringFY09(comparedwithonefromtheprevious year). Entities are choosing not to distribute profits in order to improve gearing ratios and otherwise stabilise their operations.

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2009 BDO A-REIT Survey22

3.3 Investment criteria

Investment criteria median 2009 median 2008

1 Year return (55)% (47)%

3 Year return (31)% (1)%

Liquidity 76% 55%

With a median Sector return of negative 55% (compared with 47% for the previous year) it is not surprising that the investment returns for Sector entities experienced during the year were poor.

• Onlyfourentities(INGRealEstateHealthCare,BunningsWarehousePropertyTrust,CarindalePropertyTrustandArdent Leisure Group) achieved positive returns. 10 entities returned greater than negative 80% during the year.

• TherehasbeenasignificantdeclineinthreeyearreturnforFY09,astheeffectoftwoyearsofpoorperformancenow constitute a more significant portion of the three year timeframe. The median three year return has fallen from negative 1% to negative 31%.

• LiquidityhasimprovedduringFY09,howeverconsideringthesignificantoneyearnegativereturnthisindicatesthevolume has been driven by sellers. Liquidity may also have increased during the period as a result of significant capital raisings undertaken during FY09 (please refer to Section 3.8).

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2009 BDO A-REIT Survey 23

3.4 Make-up of the Australian listed property sector

We have included a summary of the make up of the Australian listed property sector to provide readers with an understanding of what and who are the key sectors and players. In the first graph is the number of entities in each category covered in our survey and their respective gross assets.

The dominant sector is retail shopping centres, driven by the scale of Westfield Group as displayed in the graph of entities constituting the Property Index. The diversified (or “multi sector”) sector has the highest number of participants (16) and the next largest total assets to the retail sector.

Make-up of the Australian listed property sector

-

10

20

30

40

50

60

70

80

90

100

0

2

4

6

8

10

8

12

14

16

Retail shopping centres

Industrial estates

Hotels, pubs & entertainment

precincts

Office buildings

Multi sector Development

Tota

l ass

ets

($ b

illio

ns)

Num

ber o

f ent

itie

s

Total assets Number of entities

The most represented sector in terms of number of entities is the diversified sector. The retail sector has the highest total assets.

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2009 BDO A-REIT Survey24

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Westfield group

Stockland Trust group

GPT Group Dexus Property group

CFS Retail property trust

Mirvac Group Other

Perc

enta

ge o

f Pro

pert

y In

dex

Westfield Group (the largest real estate investment trust in the world) represented nearly 45% of the Property Index as at 30 June 2009, the next largest entity was Stockland Group representing 14%. The top 6 entities comprising the Property Index constitute 84%, of the Property Index.

Make-up of the Property Index by entity

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2009 BDO A-REIT Survey 25

3.5 Market performance of A-REIT sector to 30 June 2009

The five year period from 1 July 2004 to 30 June 2009 has seen the returns of the Property Index underperform relative to the All Ordinaries.

In the chart below comparing the Property Index performance versus the All Ordinaries performance, we have also included the returns of Westfield Group. As discussed previously Westfield Group comprises a significant portion (45%) of the Property Index. Westfield Group has outperformed relative to the Property Index for the five year period ended 30 June 2009 with a 26% decline. The sector as a whole (inclusive of Westfield Group) has ended the five year period 55% lower. The implication therefore is that the Property Index return would have been significantly less if it was not for the performance of the Westfield Group.

All Ordinaries vs Property Index – 1 July 2004 to 30 June 2009

200

180

160

140

120

100

80

60

40

20

0

All Ordinaries Property Index Westfield Group Indexed

2004 2005 2006 2007 2008

45%The amount of the Property Index represented by Westfield Group at 30 June 2009.

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2009 BDO A-REIT Survey26

The one year performance to 30 June 2009 relative to the All Ordinaries is graphed below. As mentioned in the 2008 Survey, whereas the Property Index was has historically been a defensive sector in difficult times, property related enterprises have been punished far more than the broader market.

Again, Westfield Group has outperformed the Property Index and for the first half of FY09 also outperformed the All Ordinaries. We have outlined below some key reasons why Westfield Group has performed so resiliently.

Westfield Group:

• ishighlygeographicallydiversified,thestrongperformanceoftheAustralianretailsectorhasoffsetthedecliningfundamentalsintheUKandUSAregions;

• hasstrongbargainingpowerduetoitsscalewhichfacilitatesfavourabletermswithtenantsleadingtorelativelymorestablecashflows;

• hasgearing(35%)belowthemarketaverage(46%);and

• hasaleaseexpiry(10years)wellabovethemarketaverage(6-8years).

All Ordinaries vs Property Index – 1 July 2008 to 30 June 2009

130

120

110

100

90

80

70

60

50

40

All Ordinaries Property Index Westfield Group Indexed

Jul2008

Aug2008

Sep2008

Oct2008

Nov2008

Dec2008

Jan2009

Feb2009

Mar2009

Apr2009

May2009

Jun2009

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2009 BDO A-REIT Survey 27

3.6 Market performance of A-REIT sector year to October 2009

Both the All Ordinaries and the Property Index have rallied since 30 June 2009. At the time of writing the BDO Survey the Property Index had outperformed the All Ordinaries over the four months to 22 October 2009, increasing by 32% relative to the 24% increase in the All Ordinaries.

The Property Index has recovered partly as a result of the significant capital raisings undertaken during FY09 and generally improving economic confidence, particularly in Australia. The capital raisings have somewhat “de-risked” many Property Index members relative to their position prior to the capital raisings due to lower gearing levels and resolving covenant breaches.

All Ordinaries vs Property Index – July 2009 to October 2009

90

95

100

105

110

115

120

125

130

135

140

All Ordinaries Property Index

Jul2009

Aug2009

Sep2009

Oct2009

32%The appreciation of the Property Index over the period from 1 July 2009 to 22 October 2009.

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2009 BDO A-REIT Survey28

3.7 Asset values and write downs

Over 90% of the entities covered in the BDO Survey have seen their property valuations fall over the year. This has led to a decline in value of the gross property assets of the Sector as a whole of 9% since 30 June 2008.

Gross property assets including by region for the five years to 30 June 2009

Europe AsiaAustralia US NZ

160

140

120

100

80

60

40

20

FY05 FY06 FY07 FY08 FY09

Gro

ss p

rope

rty

asse

ts ($

bill

ion)

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2009 BDO A-REIT Survey 29

The ranges in size of percentage write-downs of property values are expressed below. Approximately 40% of entities reported a write-down in property value of greater than 20%. The largest write-down as a percentage of property values was Macquarie DDR Trust (44%) whereas only four entities, (all developers), recorded no write-down (AV Jennings Limited, Becton Property Group, Devine Limited and Lend Lease Corporation).

Property write-downs ranges (by percentage of property value written down)

0

5

10

15

20

25

0-(10)% (10) - (20)% (20) - (30)% (30) - (40)% (40) - (50)%

Num

ber o

f ent

ities

40%The number of entities reporting write downs of greater than 20% for FY09.

Over 90% of entities covered in the BDO Survey have reported a fall in property value during FY09. As discussed further at Section 3.8 significant capital raisings have been undertaken to dilute the effects of these devaluations.

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2009 BDO A-REIT Survey30

We have provided the average percentage size of the write-downs by sector. The average percentage write-down was approximately 16% and most sectors were around this level except for development (10%) and industrial estates (28%).

The large decline in Industrial Estates was a product of large write-downs by Mirvac Industrial Estate 43%, Challenger Wine Trust 30% and the ING Industrial Fund 25%. We note there are only four entities in the Industrial Estates sector.

Average percentage property write-down by sector

30%

25%

20%

15%

10%

5%

0%Overall average

Retail shopping centres

Industrial estates

Hotels, pubs & entertainment

precincts

Office buildings

Multi sector Development

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2009 BDO A-REIT Survey 31

GPT Group Westfield Group

Stockland Corporation

Mirvac Group Dexus Property Group

Goodman Limited

Other

3,500

3,000

2,500

2,000

1,500

1,000

500

-

($) b

illio

n

3.8 Capital raisings

FY09 has been characterised by a significant number of capital raisings. We have collated data based on those entities who increased their contributed equity by greater than 10% during FY09 and present the findings below. The total amount of capital raised during FY09 by those entities was $15.6 billion.

The funds were used by the entities primarily to reduce debt and gearing ratios (which had been affected by property devaluations and falls in the value of other assets) and otherwise strengthen their financial positions.

Capital raisings by entity

$15.6 bIllIonCapital raised by entities who increased contributed equity by greater than 10% during FY09. The proceeds have been used to offset the effects of property value write-downs and stabilise gearing levels.

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2009 BDO A-REIT Survey32

3.9 Gearing analysis

Gearing (defined as total borrowings divided by total assets) has continued to increase during FY09 with the average gearing of survey participants increasing to 46% from the FY08 level of 44%. The increase has been caused by significant property devaluations and write-downs in the value of other assets, as opposed to increased borrowing by survey participants. Had it not been for the capital raisings discussed at Section 3.8 gearing would have increased further.

Survey participants average gearing history

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 200915%

20%

25%

30%

35%

40%

45%

50%

With the exception of 2007 gearing has increased every year since 1998, when it was less than 20%

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2009 BDO A-REIT Survey 33

We have also analysed average gearing by sector. Average gearing increased in the more traditional property trust sectors, including retail, industrial estates and commercial. These were the sectors that experienced the largest write downs in property asset values.

The Multi sector entities experienced a slight increase in gearing whereas the developers have seen a marked reduction from c43% to c36%. Notable decreases in gearing in this sector include AV Jennings Limited (from 46% to 21%), Cedar Woods Properties Limited (from 96% to 51%), FKP Property Group (from 40% to 28%) and Sunland Group Limited (from 8% to 5%). These developers reduced debt levels throughout the year (an average of 33% reduction) in order to achieve the lower gearing reflected below.

Average gearing by sector with prior year comparison

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Overall Retail shopping centres

Industrialestates

Hotels, Pubs & Entertainment

precincts

Officebuildings

Mul� sector Development

30-Jun-08 30-Jun-09

2%Increase in simple average gearing of survey participants compared with previous year.

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2009 BDO A-REIT Survey34

3.10 Location of property assets

A majority of property assets owned by the BDO Survey participants are located in Australia (63%). The next largest geographical concentration is the USA, with approximately 27% of entities owning some property assets there. Six entities continue to own property assets in the USA totalling greater than $1bn, these are Centro Properties Group, Dexus Property Group, Macquarie DDR Trust, Macquarie Office Trust, Tishman Speyer Office Trust and Westfield Group.

Location of property assets

Europe AsiaAustralia US NZ

FY07 FY08 FY09

Europe AsiaAustralia US NZ

Europe AsiaUS NZAustralia (63%) (27%) (7%) (2%) (1%)

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2009 BDO A-REIT Survey 35

We have also included the breakdown of the international property assets and the total value of international assets over the five years to 30 June 2009. There was a decline in the value of the international assets during FY09, driven mainly by a decline in USA property assets.

Location and value of international assets for the five years to 30 June 2009

60

50

40

30

20

10

-FY05 FY06 FY07 FY08 FY09

Europe NZUS Asia

63%Percentage of property assets located in Australia

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2009 BDO A-REIT Survey36

3.11 Weighted average interest rates

The weighted average interest rate on borrowings (“WAIR”) reflects a number of factors including the lender’s assessment of the borrower’s risk and of the quality and location of assets securing the borrowings, and the borrower’s gearing and interest coverage. Overall during FY09 the average WAIR fell from 6.49% to 5.37%, a result of a reduction in the Reserve Bank of Australia’s cash rate target over that approximate period from 7.25% at the beginning of FY09 to 3.00% at the end of FY09. This would indicate that as a result of hedging and fixed interest borrowings, interest rates are not as sensitive to movements in cash rates.

The Development sector again recorded the highest weighted average interest rate of 6% (nearly a percentage lower than the previous year WAIR of 7%).

Consistent with previous years the retail and hotels, pubs and entertainment precincts are the sectors that recorded the lowest results.

Weighted average interest rate by sector with prior year comparison

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Overall Retail shoppingcentres

Industrialestates

Hotels, Pubs &Entertainment

precincts

Officebuildings

Multi sector Development

30-Jun-08 30-Jun-09

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2009 BDO A-REIT Survey 37

3.12 Weighted average lease expiry

The weighted average term to expiry for leases (“WALE”) is a measure of the security and stability of future tenure and income, however, a shorter term to expiry in some situations may be viewed as a positive as it allows for earlier rental re-negotiations to take advantage of any market movements.

Hotels, pubs and entertainment precincts again had the highest average lease expiry of 16 years, a result of Ale Property Group (19 years), Hedley Leisure and Gaming Property Fund (16 years) and the ING Real Estate Entertainment Fund (12 years) having above average WALEs.

The sector with the shortest WALE is industrial estates at 4 years, a reduction from the 7 years for FY08.

Weighted average lease expiry by sector with prior year comparison

-

2

4

6

8

10

12

14

16

18

Overall Retail shoppingcentres

Industrialestates

Hotels, Pubs &Entertainment

precincts

Officebuildings

Multi sector Development

30-Jun-08 30-Jun-09

6.8 yEARSThe average weighted average lease expiry of all participants.

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4full RAnkIngS

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2009 BDO A-REIT Survey40

full RAnkIngS

Entity current year rank prior year rank

ING Real Estate Healthcare Fund 1 N/A

Ardent Leisure Group 2 46

ALE Property Group 3 7

Cromwell Group 4 3

CFS Retail Property Trust 5 9

Bunnings Warehouse Property Trust 6 31

Westfield Group 7 8

Lend Lease Corporation 8 14

Carindale Property Trust 9 30

Westpac Office Trust 10 37

Macquarie CountryWide Trust 11 40

GEO Property Group 12 50

Stockland Corporation 13 24

Cedar Woods Properties Limited 14 29

Challenger Diversified Property Group 15 18

Real Estate Capital Partners USA Property Trust 16 33

Commonwealth Property Office Fund 17 15

Devine Limited 18 1

Challenger Wine Trust 19 2

Astro Japan Property Trust 20 20

Dexus Property Group 21 22

ING Office Fund 22 28

Australand Property Group 23 4

Charter Hall Group 24 36

Peet Limited 25 N/A

Sunland Group Limited 26 10

Mirvac Industrial Trust 27 53

Australian Education Trust 28 34

RNY Property Trust 29 49

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2009 BDO A-REIT Survey 41

Entity current year rank prior year rank

Abacus Property Group 30 13

Challenger Kenedix Japan Trust 31 19

Multiplex European Property Fund 32 17

Trafalgar Corporate Group 33 54

Rabinov Property Trust 34 6

AV Jennings Limited 35 56

Goodman Limited 36 11

Aspen Group 37 12

Growthpoint Properties Australia 38 35

GPT Group 39 41

Hedley Leisure & Gaming Property Fund 40 52

Mirvac Group 41 32

Macquarie Office Trust 42 39

ING Real Estate Community Living Group 43 44

Mirvac Real Estate Investment Trust 44 47

Thakral Holdings Group 45 23

ING Real Estate Entertainment Fund 46 38

Centro Properties Group 47 58

ING Industrial Fund 48 16

Becton Property Group Limited 49 5

Macquarie DDR Trust 50 43

Galileo Japan Trust 51 26

Prime Retirement & Aged Care Property Trust 52 21

Centro Retail Trust 53 57

Valad Property Group 54 48

Tishman Speyer Office Fund 55 25

FKP Property Group 56 27

APN UKA European Retail Trust 57 55

Trinity Group 58 42

Four entities that ranked 30th or below last year have made the top ten this year - a great achievement.

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5dETAIlEd SuRvEy RESulTS

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2009 BDO A-REIT Survey44

opERATIng cASh yIEld

Entity nameoperating cash yield

Rank Entity nameoperating cash yield

Rank

Abacus Property Group 7% 32 Growthpoint Properties Australia Trust 8% 25

ALE Property Group 12% 13 Hedley Leisure & Gaming Property Fund 8% 28

APN UKA European Retail Trust 8% 26 ING Industrial Fund 5% 44

Ardent Leisure Group 14% 11 ING Office Fund 4% 50

Aspen Group 4% 46 ING Real Estate Community Living Group 12% 14

Astro Japan Property Trust 8% 29 ING Real Estate Entertainment Fund 9% 21

Australand Property Group 10% 18 ING Real Estate Healthcare Fund 9% 20

Australian Education Trust 7% 33 Lend Lease Corporation 14% 10

AV Jennings Limited 26% 6 Macquarie CountryWide Trust 11% 15

Becton Property Group Limited 33% 3 Macquarie DDR Trust 5% 42

Bunnings Warehouse Property Trust 7% 37 Macquarie Office Trust 7% 30

Carindale Property Trust 5% 41 Mirvac Group 1% 55

Cedar Woods Properties Limited 37% 2 Mirvac Industrial Trust 6% 38

Centro Properties Group 25% 7 Mirvac Real Estate Investment Trust 4% 49

Centro Retail Trust 3% 53 Multiplex European Property Fund 15% 9

CFS Retail Property Trust 5% 43 Peet Limited 3% 52

Challenger Diversified Property Group 9% 22 Prime Retirement & Aged Care Property Trust 4% 47

Challenger Kenedix Japan Trust 10% 16 Rabinov Property Trust 5% 45

Challenger Wine Trust 8% 24 Real Estate Capital Partners USA Property Trust 14% 12

Charter Hall Group 8% 23 RNY Property Trust 5% 40

Commonwealth Property Office Fund 7% 34 Stockland Corporation 8% 27

Cromwell Group 9% 19 Sunland Group Limited 27% 5

Devine Limited 27% 4 Thakral Holdings Group 3% 51

Dexus Property Group 7% 35 Tishman Speyer Office Fund -1% 57

FKP Property Group 2% 54 Trafalgar Corporate Group 10% 17

Galileo Japan Trust 18% 8 Trinity Group -3% 58

GEO Property Group 46% 1 Valad Property Group -1% 56

Goodman Limited 7% 31 Westfield Group 7% 36

GPT Group 4% 48 Westpac Office Trust 6% 39

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2009 BDO A-REIT Survey 45

Trinity Group

Tishman Speyer Office Fund

Valad Property Group

Mirvac Group

FKP Property Group

Centro Retail Trust

Peet Limited

Thakral Holdings Group

ING Office Fund

Mirvac Real Estate Investment Trust

GPT Group

Prime Retirement & Aged Care Property Trust

Aspen Group

Rabinov Property Trust

ING Industrial Fund

CFS Retail Property Trust

Macquarie DDR Trust

Carindale Property Trust

RNY Property Trust

Westpac Office Trust

Mirvac Industrial Trust

Bunnings Warehouse Property Trust

Westfield Group

Dexus Property Group

Commonwealth Property Office Fund

Australian Education Trust

Abacus Property Group

Goodman Limited

Macquarie Office Trust

Astro Japan Property Trust

Hedley Leisure & Gaming Property Fund

Stockland Corporation

APN UKA European Retail Trust

Growthpoint Properties Australia

Challenger Wine Trust

Charter Hall Group

Challenger Diversified Property Group

ING Real Estate Entertainment Fund

ING Real Estate Healthcare Fund

Cromwell Group

Australand Property Group

Trafalgar Corporate Group

Challenger Kenedix Japan Trust

Macquarie CountryWide Trust

ING Real Estate Community Living Group

ALE Property Group

Real Estate Capital Partners USA Property Trust

Ardent Leisure Group

Lend Lease Corporation

Multiplex European Property Fund

Galileo Japan Trust

Centro Properties Group

AV Jennings Limited

Sunland Group Limited

Devine Limited

Becton Property Group Limited

Cedar Woods Properties Limited

GEO Property Group

-5.00% 5.00% 15.00% 25.00% 35.00% 45.00%

Units Stapled Entities/Companies

10%Average operating cash yield of all participants

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2009 BDO A-REIT Survey46

dISTRIbuTIon RETuRn on InvESTmEnT

Entity namedistribution

return on investment

Rank Entity namedistribution

return on investment

Rank

Abacus Property Group 14% 8 Growthpoint Properties Australia Trust 14% 10

ALE Property Group 13% 15 Hedley Leisure & Gaming Property Fund 10% 22

APN UKA European Retail Trust 0% 58 ING Industrial Fund 9% 30

Ardent Leisure Group 11% 20 ING Office Fund 12% 19

Aspen Group 14% 11 ING Real Estate Community Living Group 10% 23

Astro Japan Property Trust 20% 2 ING Real Estate Entertainment Fund 8% 33

Australand Property Group 14% 12 ING Real Estate Healthcare Fund 12% 16

Australian Education Trust 12% 18 Lend Lease Corporation 5% 41

AV Jennings Limited 0% 57 Macquarie CountryWide Trust 14% 9

Becton Property Group Limited 0% 56 Macquarie DDR Trust 0% 54

Bunnings Warehouse Property Trust 7% 39 Macquarie Office Trust 9% 27

Carindale Property Trust 8% 35 Mirvac Group 5% 42

Cedar Woods Properties Limited 5% 44 Mirvac Industrial Trust 18% 4

Centro Properties Group 0% 55 Mirvac Real Estate Investment Trust 8% 31

Centro Retail Trust 3% 47 Multiplex European Property Fund 19% 3

CFS Retail Property Trust 7% 38 Peet Limited 4% 46

Challenger Diversified Property Group 13% 13 Prime Retirement & Aged Care Property Trust 4% 45

Challenger Kenedix Japan Trust 12% 17 Rabinov Property Trust 5% 40

Challenger Wine Trust 18% 5 Real Estate Capital Partners USA Property Trust 26% 1

Charter Hall Group 10% 24 RNY Property Trust 17% 6

Commonwealth Property Office Fund 8% 32 Stockland Corporation 9% 29

Cromwell Group 14% 7 Sunland Group Limited 9% 28

Devine Limited 5% 43 Thakral Holdings Group 2% 48

Dexus Property Group 7% 37 Tishman Speyer Office Fund 0% 53

FKP Property Group 2% 49 Trafalgar Corporate Group 9% 25

Galileo Japan Trust 0% 50 Trinity Group 0% 52

GEO Property Group 13% 14 Valad Property Group 0% 51

Goodman Limited 8% 34 Westfield Group 8% 36

GPT Group 9% 26 Westpac Office Trust 11% 21

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2009 BDO A-REIT Survey 47

9%Average distribution return on investment of all participants

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

APN UKA European Retail Trust

AV Jennings Limited

Becton Property Group Limited

Centro Properties Group

Macquarie DDR Trust

Tishman Speyer Office Fund

Trinity Group

Valad Property Group

Galileo Japan Trust

FKP Property Group

Thakral Holdings Group

Centro Retail Trust

Peet Limited

Prime Retirement & Aged Care

Cedar Woods Properties Limited

Devine Limited

Mirvac Group

Lend Lease Corporation

Rabinov Property Trust

Bunnings Warehouse Property

CFS Retail Property Trust

Dexus Property Group

Westfield Group

Carindale Property Trust

Goodman Limited

ING Real Estate Entertainment

Commonwealth Property Office

Mirvac Real Estate Investment

ING Industrial Fund

Stockland Corporation

Sunland Group Limited

Macquarie Office Trust

GPT Group

Trafalgar Corporate Group

Charter Hall Group

ING Real Estate Community

Hedley Leisure & Gaming

Westpac Office Trust

Ardent Leisure Group

ING Office Fund

Australian Education Trust

Challenger Kenedix Japan Trust

ING Real Estate Healthcare Fund

ALE Property Group

GEO Property Group

Challenger Diversified Property

Australand Property Group

Aspen Group

Growthpoint Properties Australia

Macquarie CountryWide Trust

Abacus Property Group

Cromwell Group

RNY Property Trust

Challenger Wine Trust

Mirvac Industrial Trust

Multiplex European Property Fund

Astro Japan Property Trust

Real Estate Capital Partners USA

Units Stapled Entities/Companies

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2009 BDO A-REIT Survey48

TAx AdvAnTAgEd dISTRIbuTIon

Entity nameTax

advantaged distribution

Rank Entity nameTax

advantaged distribution

Rank

Abacus Property Group 20% 30 Growthpoint Properties Australia Trust 0% 46

ALE Property Group 82% 13 Hedley Leisure & Gaming Property Fund 100% 2

APN UKA European Retail Trust 0% 58 ING Industrial Fund 27% 26

Ardent Leisure Group 43% 21 ING Office Fund 83% 11

Aspen Group 0% 57 ING Real Estate Community Living Group 100% 3

Astro Japan Property Trust 0% 56 ING Real Estate Entertainment Fund 44% 19

Australand Property Group 47% 17 ING Real Estate Healthcare Fund 100% 4

Australian Education Trust 100% 1 Lend Lease Corporation 0% 45

AV Jennings Limited 0% 55 Macquarie CountryWide Trust 15% 32

Becton Property Group Limited 0% 54 Macquarie DDR Trust 0% 44

Bunnings Warehouse Property Trust 28% 25 Macquarie Office Trust 1% 35

Carindale Property Trust 24% 27 Mirvac Group 1% 36

Cedar Woods Properties Limited 0% 53 Mirvac Industrial Trust 100% 5

Centro Properties Group 0% 52 Mirvac Real Estate Investment Trust 0% 43

Centro Retail Trust 0% 51 Multiplex European Property Fund 47% 16

CFS Retail Property Trust 53% 15 Peet Limited 0% 42

Challenger Diversified Property Group 43% 20 Prime Retirement & Aged Care Property Trust 20% 29

Challenger Kenedix Japan Trust 16% 31 Rabinov Property Trust 100% 6

Challenger Wine Trust 12% 33 Real Estate Capital Partners USA Property Trust 0% 41

Charter Hall Group 37% 22 RNY Property Trust 100% 7

Commonwealth Property Office Fund 7% 34 Stockland Corporation 24% 28

Cromwell Group 82% 12 Sunland Group Limited 0% 40

Devine Limited 0% 50 Thakral Holdings Group 94% 10

Dexus Property Group 34% 23 Tishman Speyer Office Fund 0% 39

FKP Property Group 0% 49 Trafalgar Corporate Group 100% 8

Galileo Japan Trust 0% 48 Trinity Group 0% 38

GEO Property Group 0% 47 Valad Property Group 0% 37

Goodman Limited 30% 24 Westfield Group 60% 14

GPT Group 45% 18 Westpac Office Trust 100% 9

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2009 BDO A-REIT Survey 49

33%Average tax advantaged distribution of all participants

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00%

APN UKA European Retail Trust

Aspen Group

Astro Japan Property Trust

AV Jennings Limited

Becton Property Group Limited

Cedar Woods Properties Limited

Centro Properties Group

Centro Retail Trust

Devine Limited

FKP Property Group

Galileo Japan Trust

GEO Property Group

Growthpoint Properties Australia

Lend Lease Corporation

Macquarie DDR Trust

Mirvac Real Estate Investment

Peet Limited

Real Estate Capital Partners USA

Sunland Group Limited

Tishman Speyer Office Fund

Trinity Group

Valad Property Group

Mirvac Group

Macquarie Office Trust

Commonwealth Property Office

Challenger Wine Trust

Macquarie CountryWide Trust

Challenger Kenedix Japan Trust

Abacus Property Group

Prime Retirement & Aged Care

Stockland Corporation

Carindale Property Trust

ING Industrial Fund

Bunnings Warehouse Property

Goodman Limited

Dexus Property Group

Charter Hall Group

Ardent Leisure Group

Challenger Diversified Property

ING Real Estate Entertainment

GPT Group

Australand Property Group

Multiplex European Property Fund

CFS Retail Property Trust

Westfield Group

ALE Property Group

Cromwell Group

ING Office Fund

Thakral Holdings Group

Westpac Office Trust

Trafalgar Corporate Group

RNY Property Trust

Rabinov Property Trust

Mirvac Industrial Trust

ING Real Estate Healthcare Fund

ING Real Estate Community

Hedley Leisure & Gaming

Australian Education Trust

Units Stapled Entities/Companies

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2009 BDO A-REIT Survey50

movEmEnT In nTA

Entity namemovement

in nTARank Entity name

movement in nTA

Rank

Abacus Property Group -55% 41 Growthpoint Properties Australia Trust -65% 48

ALE Property Group 0% 3 Hedley Leisure & Gaming Property Fund -62% 46

APN UKA European Retail Trust -59% 45 ING Industrial Fund -54% 39

Ardent Leisure Group -27% 17 ING Office Fund -45% 35

Aspen Group -52% 38 ING Real Estate Community Living Group -57% 44

Astro Japan Property Trust -33% 22 ING Real Estate Entertainment Fund -32% 20

Australand Property Group -45% 34 ING Real Estate Healthcare Fund -15% 10

Australian Education Trust -16% 12 Lend Lease Corporation -25% 16

AV Jennings Limited -8% 6 Macquarie CountryWide Trust -57% 43

Becton Property Group Limited -86% 57 Macquarie DDR Trust -64% 47

Bunnings Warehouse Property Trust -16% 11 Macquarie Office Trust -68% 51

Carindale Property Trust -2% 4 Mirvac Group -54% 40

Cedar Woods Properties Limited 5% 2 Mirvac Industrial Trust -66% 49

Centro Properties Group -423% 58 Mirvac Real Estate Investment Trust -34% 24

Centro Retail Trust -76% 55 Multiplex European Property Fund -68% 52

CFS Retail Property Trust -13% 9 Peet Limited -11% 7

Challenger Diversified Property Group -13% 8 Prime Retirement & Aged Care Property Trust -49% 36

Challenger Kenedix Japan Trust 6% 1 Rabinov Property Trust -32% 21

Challenger Wine Trust -39% 28 Real Estate Capital Partners USA Property Trust -34% 25

Charter Hall Group -40% 31 RNY Property Trust -21% 13

Commonwealth Property Office Fund -29% 19 Stockland Corporation -34% 26

Cromwell Group -25% 15 Sunland Group Limited -29% 18

Devine Limited -3% 5 Thakral Holdings Group -40% 29

Dexus Property Group -43% 33 Tishman Speyer Office Fund -70% 53

FKP Property Group -38% 27 Trafalgar Corporate Group -33% 23

Galileo Japan Trust -42% 32 Trinity Group -67% 50

GEO Property Group -40% 30 Valad Property Group -75% 54

Goodman Limited -57% 42 Westfield Group -22% 14

GPT Group -81% 56 Westpac Office Trust -52% 37

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2009 BDO A-REIT Survey 51

46%Average decline in NTA of all survey participants over FY09

-450.00% -400.00% -350.00% -300.00% -250.00% -200.00% -150.00% -100.00% -50.00% 0.00% 50.00%

Centro Properties Group

Becton Property Group Limited

GPT Group

Centro Retail Trust

Valad Property Group

Tishman Speyer Office Fund

Multiplex European Property Fund

Macquarie Office Trust

Trinity Group

Mirvac Industrial Trust

Growthpoint Properties Australia

Macquarie DDR Trust

Hedley Leisure & Gaming Property Fund

APN UKA European Retail Trust

ING Real Estate Community Living Group

Macquarie CountryWide Trust

Goodman Limited

Abacus Property Group

Mirvac Group

ING Industrial Fund

Aspen Group

Westpac Office Trust

Prime Retirement & Aged Care Property Trust

ING Office Fund

Australand Property Group

Dexus Property Group

Galileo Japan Trust

Charter Hall Group

GEO Property Group

Thakral Holdings Group

Challenger Wine Trust

FKP Property Group

Stockland Corporation

Real Estate Capital Partners USA Property Trust

Mirvac Real Estate Investment Trust

Trafalgar Corporate Group

Astro Japan Property Trust

Rabinov Property Trust

ING Real Estate Entertainment Fund

Commonwealth Property Office Fund

Sunland Group Limited

Ardent Leisure Group

Lend Lease Corporation

Cromwell Group

Westfield Group

RNY Property Trust

Australian Education Trust

Bunnings Warehouse Property Trust

ING Real Estate Healthcare Fund

CFS Retail Property Trust

Challenger Diversified Property Group

Peet Limited

AV Jennings Limited

Devine Limited

Carindale Property Trust

ALE Property Group

Cedar Woods Properties Limited

Challenger Kenedix Japan Trust

Units Stapled Entities/Companies

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2009 BDO A-REIT Survey52

pREmIum/(dIScounT) To nTA

Trust namepremium/

(discount) to nTA

Rank Trust namepremium/

(discount) to nTA

Rank

Abacus Property Group -46% 25 Growthpoint Properties Australia Trust -65% 42

ALE Property Group -23% 13 Hedley Leisure & Gaming Property Fund -74% 50

APN UKA European Retail Trust -80% 55 ING Industrial Fund -60% 33

Ardent Leisure Group -8% 5 ING Office Fund -40% 20

Aspen Group -38% 19 ING Real Estate Community Living Group -77% 52

Astro Japan Property Trust -61% 36 ING Real Estate Entertainment Fund -64% 41

Australand Property Group -66% 43 ING Real Estate Healthcare Fund -41% 21

Australian Education Trust -77% 51 Lend Lease Corporation 53% 1

AV Jennings Limited -62% 39 Macquarie CountryWide Trust -61% 38

Becton Property Group Limited -61% 37 Macquarie DDR Trust -79% 54

Bunnings Warehouse Property Trust -12% 6 Macquarie Office Trust -57% 32

Carindale Property Trust -37% 18 Mirvac Group -42% 22

Cedar Woods Properties Limited -4% 4 Mirvac Industrial Trust -70% 47

Centro Properties Group 0% 58 Mirvac Real Estate Investment Trust -63% 40

Centro Retail Trust -84% 57 Multiplex European Property Fund -52% 28

CFS Retail Property Trust -14% 9 Peet Limited 21% 2

Challenger Diversified Property Group -47% 26 Prime Retirement & Aged Care Property Trust -67% 44

Challenger Kenedix Japan Trust -74% 49 Rabinov Property Trust -36% 16

Challenger Wine Trust -36% 17 Real Estate Capital Partners USA Property Trust -60% 34

Charter Hall Group -47% 27 RNY Property Trust -83% 56

Commonwealth Property Office Fund -22% 12 Stockland Corporation -13% 8

Cromwell Group -29% 14 Sunland Group Limited -20% 10

Devine Limited -21% 11 Thakral Holdings Group -55% 29

Dexus Property Group -29% 15 Tishman Speyer Office Fund -61% 35

FKP Property Group -57% 31 Trafalgar Corporate Group -71% 48

Galileo Japan Trust -79% 53 Trinity Group -46% 24

GEO Property Group -67% 45 Valad Property Group -70% 46

Goodman Limited -13% 7 Westfield Group 6% 3

GPT Group -55% 30 Westpac Office Trust -42% 23

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2009 BDO A-REIT Survey 53

46%Average discount to NTA of all participants

-100.00% -80.00% -60.00% -40.00% -20.00% 0.00% 20.00% 40.00% 60.00%

Centro Retail Trust

RNY Property Trust

APN UKA European Retail Trust

Macquarie DDR Trust

Galileo Japan Trust

ING Real Estate Community Living Group

Australian Education Trust

Hedley Leisure & Gaming Property Fund

Challenger Kenedix Japan Trust

Trafalgar Corporate Group

Mirvac Industrial Trust

Valad Property Group

GEO Property Group

Prime Retirement & Aged Care Property Trust

Australand Property Group

Growthpoint Properties Australia

ING Real Estate Entertainment Fund

Mirvac Real Estate Investment Trust

AV Jennings Limited

Macquarie CountryWide Trust

Becton Property Group Limited

Astro Japan Property Trust

Tishman Speyer Office Fund

Real Estate Capital Partners USA Property Trust

ING Industrial Fund

Macquarie Office Trust

FKP Property Group

GPT Group

Thakral Holdings Group

Multiplex European Property Fund

Charter Hall Group

Challenger Diversified Property Group

Abacus Property Group

Trinity Group

Westpac Office Trust

Mirvac Group

ING Real Estate Healthcare Fund

ING Office Fund

Aspen Group

Carindale Property Trust

Challenger Wine Trust

Rabinov Property Trust

Dexus Property Group

Cromwell Group

ALE Property Group

Commonwealth Property Office Fund

Devine Limited

Sunland Group Limited

CFS Retail Property Trust

Stockland Corporation

Goodman Limited

Bunnings Warehouse Property Trust

Ardent Leisure Group

Cedar Woods Properties Limited

Centro Properties Group

Westfield Group

Peet Limited

Lend Lease Corporation

Units Stapled Entities/Companies

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2009 BDO A-REIT Survey54

onE yEAR RETuRn

Entity name1 year return

Rank Entity name1 year return

Rank

Abacus Property Group -61% 34 Growthpoint Properties Australia Trust -47% 25

ALE Property Group -15% 6 Hedley Leisure & Gaming Property Fund -56% 31

APN UKA European Retail Trust -81% 50 ING Industrial Fund -83% 52

Ardent Leisure Group 8% 2 ING Office Fund -50% 28

Aspen Group -65% 36 ING Real Estate Community Living Group -88% 56

Astro Japan Property Trust -41% 20 ING Real Estate Entertainment Fund -76% 47

Australand Property Group -40% 18 ING Real Estate Healthcare Fund 8% 1

Australian Education Trust -54% 29 Lend Lease Corporation -20% 8

AV Jennings Limited -49% 26 Macquarie CountryWide Trust -24% 12

Becton Property Group Limited -90% 58 Macquarie DDR Trust -68% 43

Bunnings Warehouse Property Trust 5% 3 Macquarie Office Trust -69% 44

Carindale Property Trust 5% 4 Mirvac Group -57% 32

Cedar Woods Properties Limited -46% 23 Mirvac Industrial Trust -60% 33

Centro Properties Group -62% 35 Mirvac Real Estate Investment Trust -47% 24

Centro Retail Trust -67% 42 Multiplex European Property Fund -67% 39

CFS Retail Property Trust -5% 5 Peet Limited -15% 7

Challenger Diversified Property Group -22% 10 Prime Retirement & Aged Care Property Trust -80% 49

Challenger Kenedix Japan Trust -49% 27 Rabinov Property Trust -65% 37

Challenger Wine Trust -40% 19 Real Estate Capital Partners USA Property Trust -42% 22

Charter Hall Group -42% 21 RNY Property Trust -67% 41

Commonwealth Property Office Fund -27% 14 Stockland Corporation -30% 15

Cromwell Group -21% 9 Sunland Group Limited -67% 40

Devine Limited -40% 17 Thakral Holdings Group -70% 45

Dexus Property Group -37% 16 Tishman Speyer Office Fund -80% 48

FKP Property Group -83% 53 Trafalgar Corporate Group -66% 38

Galileo Japan Trust -88% 55 Trinity Group -82% 51

GEO Property Group -55% 30 Valad Property Group -89% 57

Goodman Limited -86% 54 Westfield Group -25% 13

GPT Group -71% 46 Westpac Office Trust -22% 11

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2009 BDO A-REIT Survey 55

-50%Average one year return of all participants

-100.00% -80.00% -60.00% -40.00% -20.00% 0.00% 20.00%

Becton Property Group Limited

Valad Property Group

ING Real Estate Community Living Group

Galileo Japan Trust

Goodman Limited

FKP Property Group

ING Industrial Fund

Trinity Group

APN UKA European Retail Trust

Prime Retirement & Aged Care Property Trust

Tishman Speyer Office Fund

ING Real Estate Entertainment Fund

GPT Group

Thakral Holdings Group

Macquarie Office Trust

Macquarie DDR Trust

Centro Retail Trust

RNY Property Trust

Sunland Group Limited

Multiplex European Property Fund

Trafalgar Corporate Group

Rabinov Property Trust

Aspen Group

Centro Properties Group

Abacus Property Group

Mirvac Industrial Trust

Mirvac Group

Hedley Leisure & Gaming Property Fund

GEO Property Group

Australian Education Trust

ING Office Fund

Challenger Kenedix Japan Trust

AV Jennings Limited

Growthpoint Properties Australia

Mirvac Real Estate Investment Trust

Cedar Woods Properties Limited

Real Estate Capital Partners USA Property Trust

Charter Hall Group

Astro Japan Property Trust

Challenger Wine Trust

Australand Property Group

Devine Limited

Dexus Property Group

Stockland Corporation

Commonwealth Property Office Fund

Westfield Group

Macquarie CountryWide Trust

Westpac Office Trust

Challenger Diversified Property Group

Cromwell Group

Lend Lease Corporation

Peet Limited

ALE Property Group

CFS Retail Property Trust

Carindale Property Trust

Bunnings Warehouse Property Trust

Ardent Leisure Group

ING Real Estate Healthcare Fund

Units Stapled Entities/Companies

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2009 BDO A-REIT Survey56

ThREE yEAR RETuRn

Entity name3 year return

Rank Entity name3 year return

Rank

Abacus Property Group -31% 26 Growthpoint Properties Australia Trust -54% 50

ALE Property Group 4% 2 Hedley Leisure & Gaming Property Fund -70% 57

APN UKA European Retail Trust -63% 56 ING Industrial Fund -48% 46

Ardent Leisure Group -9% 7 ING Office Fund -22% 18

Aspen Group -31% 27 ING Real Estate Community Living Group -61% 55

Astro Japan Property Trust -30% 25 ING Real Estate Entertainment Fund -45% 41

Australand Property Group -26% 20 ING Real Estate Healthcare Fund -5% 5

Australian Education Trust -40% 36 Lend Lease Corporation -16% 15

AV Jennings Limited -34% 34 Macquarie CountryWide Trust -23% 19

Becton Property Group Limited -54% 49 Macquarie DDR Trust -48% 45

Bunnings Warehouse Property Trust 1% 4 Macquarie Office Trust -41% 37

Carindale Property Trust 5% 1 Mirvac Group -31% 32

Cedar Woods Properties Limited -29% 24 Mirvac Industrial Trust -50% 47

Centro Properties Group -75% 58 Mirvac Real Estate Investment Trust -32% 33

Centro Retail Trust -58% 52 Multiplex European Property Fund -58% 53

CFS Retail Property Trust 2% 3 Peet Limited -21% 17

Challenger Diversified Property Group -31% 31 Prime Retirement & Aged Care Property Trust -31% 28

Challenger Kenedix Japan Trust -31% 30 Rabinov Property Trust -28% 23

Challenger Wine Trust -16% 14 Real Estate Capital Partners USA Property Trust -37% 35

Charter Hall Group -20% 16 RNY Property Trust -53% 48

Commonwealth Property Office Fund -9% 8 Stockland Corporation -16% 13

Cromwell Group -13% 11 Sunland Group Limited -28% 22

Devine Limited -14% 12 Thakral Holdings Group -27% 21

Dexus Property Group -12% 10 Tishman Speyer Office Fund -47% 44

FKP Property Group -44% 39 Trafalgar Corporate Group -43% 38

Galileo Japan Trust -31% 29 Trinity Group -46% 43

GEO Property Group -46% 42 Valad Property Group -59% 54

Goodman Limited -57% 51 Westfield Group -8% 6

GPT Group -44% 40 Westpac Office Trust -12% 9

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2009 BDO A-REIT Survey 57

-33%Average three year return of all participants

-80.00% -70.00% -60.00% -50.00% -40.00% -30.00% -20.00% -10.00% 0.00% 10.00%

Centro Properties Group

Hedley Leisure & Gaming Property Fund

APN UKA European Retail Trust

ING Real Estate Community Living Group

Valad Property Group

Multiplex European Property Fund

Centro Retail Trust

Goodman Limited

Growthpoint Properties Australia

Becton Property Group Limited

RNY Property Trust

Mirvac Industrial Trust

ING Industrial Fund

Macquarie DDR Trust

Tishman Speyer Office Fund

Trinity Group

GEO Property Group

ING Real Estate Entertainment Fund

GPT Group

FKP Property Group

Trafalgar Corporate Group

Macquarie Office Trust

Australian Education Trust

Real Estate Capital Partners USA Property Trust

AV Jennings Limited

Mirvac Real Estate Investment Trust

Mirvac Group

Challenger Diversified Property Group

Challenger Kenedix Japan Trust

Galileo Japan Trust

Prime Retirement & Aged Care Property Trust

Aspen Group

Abacus Property Group

Astro Japan Property Trust

Cedar Woods Properties Limited

Rabinov Property Trust

Sunland Group Limited

Thakral Holdings Group

Australand Property Group

Macquarie CountryWide Trust

ING Office Fund

Peet Limited

Charter Hall Group

Lend Lease Corporation

Challenger Wine Trust

Stockland Corporation

Devine Limited

Cromwell Group

Dexus Property Group

Westpac Office Trust

Commonwealth Property Office Fund

Ardent Leisure Group

Westfield Group

ING Real Estate Healthcare Fund

Bunnings Warehouse Property Trust

CFS Retail Property Trust

ALE Property Group

Carindale Property Trust

Units Stapled Entities/Companies

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2009 BDO A-REIT Survey58

lIQuIdITy

Entity name liquidity Rank Entity name liquidity Rank

Abacus Property Group 111% 19 Growthpoint Properties Australia Trust 36% 40

ALE Property Group 20% 44 Hedley Leisure & Gaming Property Fund 10% 53

APN UKA European Retail Trust 83% 28 ING Industrial Fund 146% 10

Ardent Leisure Group 51% 34 ING Office Fund 124% 15

Aspen Group 76% 29 ING Real Estate Community Living Group 103% 22

Astro Japan Property Trust 132% 14 ING Real Estate Entertainment Fund 39% 38

Australand Property Group 44% 36 ING Real Estate Healthcare Fund 17% 46

Australian Education Trust 47% 35 Lend Lease Corporation 87% 26

AV Jennings Limited 5% 57 Macquarie CountryWide Trust 164% 8

Becton Property Group Limited 115% 18 Macquarie DDR Trust 233% 4

Bunnings Warehouse Property Trust 54% 33 Macquarie Office Trust 173% 7

Carindale Property Trust 9% 55 Mirvac Group 159% 9

Cedar Woods Properties Limited 9% 54 Mirvac Industrial Trust 84% 27

Centro Properties Group 243% 3 Mirvac Real Estate Investment Trust 12% 52

Centro Retail Trust 138% 12 Multiplex European Property Fund 13% 51

CFS Retail Property Trust 104% 21 Peet Limited 14% 49

Challenger Diversified Property Group 30% 41 Prime Retirement & Aged Care Property Trust 14% 50

Challenger Kenedix Japan Trust 40% 37 Rabinov Property Trust 0% 58

Challenger Wine Trust 25% 42 Real Estate Capital Partners USA Property Trust 17% 45

Charter Hall Group 91% 23 RNY Property Trust 89% 25

Commonwealth Property Office Fund 119% 16 Stockland Corporation 140% 11

Cromwell Group 17% 47 Sunland Group Limited 89% 24

Devine Limited 9% 56 Thakral Holdings Group 15% 48

Dexus Property Group 132% 13 Tishman Speyer Office Fund 198% 5

FKP Property Group 75% 30 Trafalgar Corporate Group 39% 39

Galileo Japan Trust 117% 17 Trinity Group 68% 31

GEO Property Group 57% 32 Valad Property Group 335% 1

Goodman Limited 291% 2 Westfield Group 108% 20

GPT Group 192% 6 Westpac Office Trust 21% 43

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2009 BDO A-REIT Survey 59

86%Average liquidity of all participants.

0.00% 50.00% 100.00% 150.00% 200.00% 250.00% 300.00% 350.00%

Rabinov Property Trust

AV Jennings Limited

Devine Limited

Carindale Property Trust

Cedar Woods Properties Limited

Hedley Leisure & Gaming Property Fund

Mirvac Real Estate Investment Trust

Multiplex European Property Fund

Prime Retirement & Aged Care Property Trust

Peet Limited

Thakral Holdings Group

Cromwell Group

ING Real Estate Healthcare Fund

Real Estate Capital Partners USA Property Trust

ALE Property Group

Westpac Office Trust

Challenger Wine Trust

Challenger Diversified Property Group

Growthpoint Properties Australia

Trafalgar Corporate Group

ING Real Estate Entertainment Fund

Challenger Kenedix Japan Trust

Australand Property Group

Australian Education Trust

Ardent Leisure Group

Bunnings Warehouse Property Trust

GEO Property Group

Trinity Group

FKP Property Group

Aspen Group

APN UKA European Retail Trust

Mirvac Industrial Trust

Lend Lease Corporation

RNY Property Trust

Sunland Group Limited

Charter Hall Group

ING Real Estate Community Living Group

CFS Retail Property Trust

Westfield Group

Abacus Property Group

Becton Property Group Limited

Galileo Japan Trust

Commonwealth Property Office Fund

ING Office Fund

Astro Japan Property Trust

Dexus Property Group

Centro Retail Trust

Stockland Corporation

ING Industrial Fund

Mirvac Group

Macquarie CountryWide Trust

Macquarie Office Trust

GPT Group

Tishman Speyer Office Fund

Macquarie DDR Trust

Centro Properties Group

Goodman Limited

Valad Property Group

Units Stapled Entities/Companies

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6ExplAnATIon of cRITERIA & RAnkIng

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2009 BDO A-REIT Survey62

A brief explanation of each criteria used in the BDO Survey is provided below.

6.1 Financial criteria

Operating cash yield on weighted average net assets/security holders’ equity

Calculated by dividing operating cashflow by the total of weighted average shareholder’s/unitholders’ funds and the simple average of reserves and any undistributed income.

The financial year end of the entity has been used in all cases, except for 31 December entities where 30 June figures have been sourced from half year reports.

Distribution return on investment

Calculated by dividing the distribution per ordinary share/unit paid for the entity’s financial year by the average of the market price of ordinary shares/units in the entity. The average market price is calculated on a daily closing price basis with prices sourced from Bloomberg.

Tax advantaged distribution component

The total percentage of the distribution from each entity which is tax deferred.

Where this information was not disclosed in the annual report, BDO attempted to obtain the detail required from other sources.

Average market price v average NTA per security (premium/discount to NTA)

Calculated by subtracting the average NTA per security from the average market price per security, and dividing this by the average NTA per security.

We have ranked this criteria with entities trading at a premium to NTA as the highest ranking.

We have assigned a premium/(discount) to NTA of zero for those entities with negative NTA’s at year end.

Movement in the NTA per security

Calculated by assessing the percentage increase (or decrease) in NTA per security over the entities’ financial year by using the opening and closing figures for NTA per security.

Where entities were listed during the year, BDO has assessed the opening NTA as being equal to the opening issue price.

In all cases the financial year end of the entity has been used, except for 31 December year ends where we have used NTA per unit from the 30 June 2008 and 2009 half year reports.

ExplAnATIon of cRITERIA & RAnkIng

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2009 BDO A-REIT Survey 63

6.2 Investment criteria

Total rate of return on investment

This measure, over both the one year and three years ended 30 June 2009, records both the income return (i.e. distributions) and capital appreciation (i.e. movement in market price).

Information sourced from UBS and Bloomberg has been used to compile this criteria.

Entities which have traded for less than three years have been awarded a result based on a weighting of one third its one year return and two thirds the median sector three year return for this measure, and subsequently ranked accordingly.

Volume of trading on ASX (liquidity)

This liquidity measure is expressed as a percentage, and is calculated by dividing the total volume of units traded in each entity for the year ended 30 June 2009 by the weighted average total units on issue.

This provides an indication of relative liquidity, irrespective of entity size.

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2009 BDO A-REIT Survey64

6.3 Method of ranking

A total score of 500 (maximum) has been used, comprising 300 points for all financial criteria and 200 points for all Investment criteria. In determining the final rankings the scores on each component were aggregated (not the rankings) such that that relative performances within each criterion are maintained in determining the overall rankings.

Financial criteria

The tests used in the financial criteria and assigned weightings are as follows.

financial criteria weighted score 2009

Cash operating yield 90

Distribution return on investment 75

Tax advantaged distributions 35

Average market price vs. NTA per unit 50

Movement in NTA per security 50

PERFECT SCORE 300

In each of the above tests the scores were scaled so that the top performer in each test received the maximum available score for that criterion. Ranks were then assigned based on the scaled scores.

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2009 BDO A-REIT Survey 65

Investment criteria

The tests used in the investment criteria and assigned weightings are as follows.

Investment criteria weighted score 2009

Total rate of return on investment (one year) 100

Total rate of return on investment (three year) 50

Volume of trading on ASX 50

PERFECT SCORE 200

The above tests have been ranked using a variable points system for each test, based on the number and importance of aspects taken into account. In each of the tests the scores were scaled so that the top performer in each test received the maximum available score for that criterion. Ranks were then assigned based on the scaled scores.

Median results

For an entity which could not be scored equitably in a particular criteria, due to its recent listing, the unique nature of an entity’s activities, or lack of available information for the relevant criteria, that entity was allocated a median result for the purpose of ranking. This ranking was then weighted and scored as usual. For all such instances ‘N/A’ appears in the result column for the individual criteria tables. For those entities in which a three year investment return is not available, we have estimated a three year return based on the following: one third weighting to the one year investment return, and two thirds weighting to the median three year return.

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2009 BDO A-REIT Survey66

5.4 Newcomers

There are no new participants in the survey this year. There have been no IPOs in the sector for the twelve months ending 30 June 2009.

5.5 Removals and small capitalisation exclusions

Due to the significant number of entities that now have market capitalisations below the previous market capitalisation threshold ($50m) we have lowered the entry threshold to $15m for the 2009 Survey.

The following entities in the 2008 edition have been removed from the 2009 edition.

Entity name Reason for exclusion

Timbercorp Primary Infrastructure Results not released

Compass Hotel Group Results not released

Multiplex Prime Property Fund Market capitalisation below $15m at 30 June 2009

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7bdo coRpoRATE fInAncE

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BDO Corporate Finance has established itself as financial experts in the property sector and the general investment community.

The BDO Corporate Finance national team of 14 Directors and over 65 staff are the largest dedicated corporate finance team outside the Big 4. Recent achievements include:

• havingprovidedservicesonover$15billionofpropertytransactions;

• beingtheleadingaccountingadviserforIPOsin2007;and

• beingtheleadingproviderofIndependentExpert’sReportsforthelastthreeyears.

With our technical skills, independence and broad commercial experience we can provide an extensive range of services to the property sector that ensures our clients receive reports that assist key stakeholders in making decisions in relation to transactions.

Our service style sets us apart from our competitors, in that our service is delivered by a more experienced, senior professional team who not only specialise in providing high quality, timely advice but also offer individual solutions for our clients that exceed their expectations.

Through our extensive global network, we regularly work with our corporate finance specialists on cross border transactions. Our global network together with the distinctiveness of our local experience combine to help our achieve the desired results for our clients’ businesses.

BDO Corporate Finance has provided independent expert’s reports and independent accountant’s reports in the following property transactions.

Listed property experience

date client Transaction nature

Sep 2009 Macquarie DDR Trust Restructure

Sep 2009 Multiplex Prime Property Fund Corporate Advisory

Jun 2008 Pelorus Property Group Independent Expert Report

May 2008 Valad Property Group Valuation

Dec 2007 Valad Property Group Valuation

Oct 2007 MacarthurCook Industrial Property Fund Initial Public Offer

Sep 2007 WRF Securities Acquisition

Jan 2007 MacarthurCook Asian Real Estate Property Trust Initial Public Offer

bdo coRpoRATE fInAncE

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BDO Corporate Finance have been ranked number one in the Connect 4 Mergers and Acquisitions League Table for the provision of independent expert reports for the past three years.

date client Transaction nature

Jan 2007 SAI Capital Initial Public Offer

Jan 2007 Australian Unity Due Diligence

Jun 2006 Pelorus Property Investments Limited Capital Raising

Apr 2006 Lachlan Diversified Property Fund Restructure

Mar 2006 JF Meridian Management Limited Management Fee Restructure

Feb 2006 McLaughlins Financial Services Acquisition of Unlisted Trusts by MFS Diversified

Feb 2006 Telstra Stadium Valuation

Dec 2005 Austcorp TOWERS Trust Hybrid Security Offering

Oct 2005 MacarthurCook Property Securities Fund Rights Issue Rights Issue

Sep 2005 Pelorus Pipes – Bakehouse Fund Restructure

Aug 2005 MFS Diversified Trust Preferred Equity Raising

Jul 2005 Australand Property Group Further Stapling

Jul 2005 Australand Wholesale Property Trust #3, #4 Takeover

Jun 2005 Macquarie Bank/Medallist Joint Venture Valuation

Jun 2005 Over 50’s Group Due Diligence

Jun 2005 MacarthurCook Property Securities Fund Initial Public Offer

Apr 2005 Charter Hall Property Trust Stapling/Internalisation/Listing

Apr 2005 Macquarie Leisure Trust Group Management Fee Restructure

Nov 2004 McLaughlins Financial Services Limited Group Restructure

Oct 2004 GPT Management Ltd Takeover Offer

Sep 2004 FKP Limited Stapling/Restructure

Jun 2004 Macquarie Goodman Funds Management Limited Valuation – All FUM Rights

Jun 2004 Becton Property Group Initial Public Offer

May 2004 Australand Holdings Group Acquisition

Apr 2004 MFS Hotel Property Trust Restructure

Mar 2004 Australian Value Funds Management Acquisition

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Unlisted property experience

date client Transaction nature

Oct 2009 AMICI Property Fund Independent Accountant’s Report

Sep 2009 Macquarie DDR Trust Restructure

Jun 2009 Align Funds Management Independent Accountant’s Report

Mar 2009 Eureka Funds Management Valuations

Aug 2008 Mirvac Investment Management Management Fee Review

Aug 2007 Becton Investment Management Limited Fund Independent Accountant’s Report

Jun 2007 Orchards Funds Management Due Diligence / Independent Accountant’s Report

Mar 2007 Austock Property Funds Management Acquisition of Ceramic Funds Management Group

Jan 2007 Key Capital Property Trust No 2 Independent Accountant’s Report

Dec 2006 WRF Southern River Synidacte Independent Accountant’s Report and Tax Advice

Jun 2006 Pelorus Storage Fund Capital Raising

Jun 2006 Lachlan Office Property Fund Capital Raising

Jun 2006 Key Capital Property Trust Independent Accountant’s Report

May 2006 Trilogy Funds Management Capital Raising

Apr 2006 Hyperion Property Syndicate Limited Capital Raising

Feb 2006 MFS Diversified Trust – Acquisition of 3 Trusts Acquisition

Jan 2006 WRF X-One Syndicate Independent Accountant’s Report and Tax Advice

Dec 2005 Toga Accommodation Fund Capital Raising

Oct 2005 Lachlan Office Property Fund Capital Raising

Sep 2005 Abacus Storage Funds Management Limited Capital Raising

Sep 2005 Macquarie Direct Property – Stapling of seven Unlisted Trusts

Stapling

Sep 2005 WRF Henley Brook Syndicate Independent Accountant’s Report and Tax Advice

Sep 2005 MacarthurCook Office Property Trust Independent Accountant’s Report

Aug 2005 Mariner Property Trust – Miller Street Trust Capital Raising

Aug 2005 Flowers Group Valuation

Jun 2005 Grant Samuel – Wholesale Funds Capital Raising

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2009 BDO A-REIT Survey 73

date client Transaction nature

May 2005 WRF 9 to 5 Syndicate Independent Accountant’s Report and Tax Advice

Feb 2005 Becton Property Group Restructure

Jan 2005 Eureka Funds Management – Wholesale Funds Restructure

Dec 2004 Trilogy Capital Services Pty Limited Capital Raising

Nov 2004 Hyperion Property Syndicate Capital Raising

Nov 2004 Century Funds Management – Merger with Bankminister

Acquisition

Nov 2004 Mariner Property Group – Sydney Opera House Car Park

Capital Raising

Oct 2004 James Fielding Group – 4 Way Trust Merger

Oct 2004 Lachlan Office Property Fund Capital Raising

Oct 2004 Tankstream Capital – Tankstream Property Investment Fund

Capital Raising

Sep 2004 Investa Property Group – Collins Property Trust Capital Raising

Aug 2004 WRF VII Property Synducate Independent Accountant’s Report and Tax Advice

Feb 2004 Mariner Property Group – Mariner Property Trust #1 Capital Raising

Jan 2004 Domaine Property Group Capital Raising

The “Cornerstones of Our Success” are that we:

focus on what we do best•have expert skills•take global collaboration seriously•believe flexibility is important•

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This Survey has been prepared by BDO Securities (NSW-VIC) Pty Limited AFS Licence 222438 (“BDO”).

Although BDO has taken due care to ensure the accuracy of this Survey, no warranties are given in relation to the statements and. information contained herein.

7.1 Sources of information

• AnnualReportsandHalf-yearReports.

• AustralianStockExchange

• S&PUBSPropertyAccumulatedIndexData–returnoninvestmentdata

• Bloomberg

• Otherpubliclyavailabledata

BDO disclaims all liability arising from any person acting on information and statements made herein.

The contents of this Survey should not be treated as advice to acquire, hold or dispose of securities and readers are advised to obtain professional advice before making any investment decision based on information contained in this Survey.

From time to time BDO partners and staff may hold relevant interests in securities issued by the Entities reported upon. BDO has not received any commission, brokerage or other undisclosed benefit as a result of any statements made.

Liability limited by a scheme approved under Professional Standards Legislation.

At all times, BDO is committed to protecting the privacy of our clients, contacts, and that of their staff. Any personal information held by BDO for financial or accounting purposes will only be used by BDO to support your relationship with us and to ensure you receive the most appropriate range of information and services. (BDO’s Privacy Statement is available upon request).

dISclAImER

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2009 BDO A-REIT Survey 75

New South Wales

Sebastian Stevens - Director [email protected] Tel +61 2 9286 5555

South Australia

Gregory Wiese - Director [email protected] Tel +61 8 8223 1066

Western Australia

Sherif Andrawes - Chairman [email protected] Tel +61 8 9360 4200

Tasmania

Chris McTye - Director [email protected] Tel +61 3 6234 2499

Victoria

John Blight - Director [email protected] Tel +61 3 8320 2222

Queensland

Steven Sorbello - Partner [email protected] Tel +61 7 3237 5999

conTAcT uS

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AdElAIdE

bRISbAnE

cAIRnS

cAnbERRA

dARwIn

hobART

mElbouRnE

pERTh

SydnEy

1300 138 991 www.bdo.com.au

BDO International is a world wide network of public accounting firms, called BDO Member Firms. Each BDO Member Firm is an independent legal entity. The network is coordinated by BDO Global Coordination B.V., incorporated in the Netherlands with its statutory seat in Eindhoven (trade register registration number 33205251) and with an office at Boulevard de la Woluwe 60, 1200 Brussels, Belgium, where the International Executive Office is located.BDO is the brand name for the BDO International network and for each of the BDO Member Firms.BDO in Australia is a national association of separate entities (each of which has appointed BDO (Australia) Limited ACN 050 110 275 to represent it in BDO International). Liability of each Australian entity is limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.This publication is issued exclusively for the general information of clients and staff of BDO in Australia.