for personal use only 2013 - australian securities …2014/03/17 · ma, fca, maicd, sa fin term of...

financialreport

2013

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Australand Property GroupAustraland Holdings Limited (ABN 12 008 443 696) Australand Property Limited (ABN 90 105 462 137 AFS Licence No. 231130) as the responsible entity of: – Australand Property Trust (ARSN 106 680 424); and – Australand ASSETS Trust (ARSN 115 338 513). Australand Investments Limited (ABN 12 086 673 092 AFS Licence No. 228837) as the responsible entity of: – Australand Property Trust No.4 (ARSN 108 254 413); – and – Australand Property Trust No.5 (ARSN 108 254 771).

Level 3, 1C Homebush Bay Drive Rhodes NSW 2138

CONTENTS

1Australand Property Trust Financial Report

57Australand Property Trust No.4 Financial Report

95Australand Property Trust No.5 Financial Report

133Corporate Directory

Australand Property Trusts

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AustralandProperty TrustFinancial Report 31 December 2013ARSN 106 680 424

Financial Report 2013 1 1

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DIRECTORS REPORTFOR THE YEAR ENDED 31 DECEMBER 2013

The Directors of Australand Property Limited (ABN 90 105 462 137) ( Responsible Entity ) as the ResponsibleEntity of Australand Property Trust ( Trust ) present their report, together with the consolidated financial report ofthe consolidated entity, being the Trust and its controlled entities, for the financial year ended 31 December 2013,and the Independent Auditor s Report thereon.

The Responsible Entity of the Trust is an entity incorporated in New South Wales. The parent entity of theResponsible Entity is Australand Holdings Limited (ABN 12 008 443 696), incorporated in New South Wales.

DIRECTORS

The following persons were Directors of the Responsible Entity during the year ended 31 December 2013 and upto the date of this report:

Olivier Lim (Chairman)Paul Dean Isherwood, AO (Deputy Chairman and Lead Independent Director)Robert William Johnston (Managing Director)Beth May LaughtonLui Chong CheeNancy Jane Milne, OAMStephen Eric NewtonRobert Edward Prosser

The names, qualifications and experience of each person holding the position of Director of the Responsible Entityat the date of this report are:

Olivier LimB. Eng (Civil) (Honours 1)

Term of Office:Non-Executive Director since 18 December 2007 and Chairman from 14 April 2011. Mr Lim was re-elected at the 2013 Annual and General Meetings.

Independent:No

Board Committee membership:Chair of the Investment Committee

Skills and experience:Appointed Group Deputy CEO of Capitaland Limited on 3 January 2013. Held the position of Chief InvestmentOfficer between February 2012 and January 2013 and was Head of Strategic Corporate Development from August2011 up until his appointment as Chief Investment Officer. He was Group Chief Financial Officer of CapitaLandLimited between July 2005 and July 2011 and, prior to that, was Deputy Chief Financial Officer. He first joinedCapitaLand as Senior Vice President, Corporate Finance in September 2003. Prior to joining the CapitaLandGroup, he was Director and Head of Real Estate Unit, Corporate Banking in Citibank, Singapore. He joinedCitibank in Singapore in August 1989.

Directorships of listed entities within the last three years include:Director of CapitaMalls Asia Limited (appointed 1 July 2005) Formerly a director of Raffles Medical Group Limited (appointed 1 October 2009, resigned 29 June 2013)Formerly a director of Neptune Orient Lines Limited (appointed 12 April 2012, resigned 16 September 2013)Formerly a director CapitaMall Trust Management Limited (the manager of a listed REIT in Singapore) (appointed 1 July 2005, resigned 1 November 2012) Formerly a director of CapitaCommercial Trust Management Limited (the manager of a listed REIT in Singapore) (appointed 1 July 2005, resigned 1 January 2013)

2 Australand Property Trusts

Australand Property Trust and its controlled entitiesF

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Other current Directorships / Offices: Member of the Board of Sentosa Development CorporationChairman of Mount Faber Leisure Group Pte Ltd (a wholly owned subsidiary of SentosaDevelopment Corporation) Director of Singapore International Chamber of Commerce

Paul Dean Isherwood, AO FCA

Term of Office:Non-Executive Director since 15 December 2005. Appointed Deputy Chairman and Lead Independent Director on 1 January 2011. Mr Isherwood was re-elected at the 2012 Annual and General Meetings.

Independent:Yes

Board Committee membership:Chair of the Audit Committee and the Remuneration & Nomination Committee, Member of the InvestmentCommittee.

Skills and experience:An experienced company director with a strong finance and accounting background. Proven leadership experiencefrom a career with Coopers & Lybrand that spanned 38 years. Held the position of National Chairman andManaging Partner of Coopers & Lybrand (Australia) from 1985 to 1994. Served on the International Board andExecutive Committee of the firm from 1985 to 1994. Has extensive corporate governance experience acrossdifferent industry sectors, and mostly with listed companies.

Directorships of listed entities within the last three years include:Chairman of Globe International Limited (appointed 30 March 2001)

Other current Directorships / Offices:Nil

Robert William JohnstonB. Eng (Electrical) (Honours 1)

Term of Office:Managing Director since 1 August 2007. In accordance with the Company s Constitution, the Managing Director isexempt from retirement by rotation in accordance with clause 12.28.

Independent:No

Board Committee membership:Member of Investment Committee. Attends all other Board Committee meetings by invitation.

Skills and experience:Mr Johnston was appointed Managing Director of Australand in August 2007 and has extensive experience in theproperty sector. He has been involved in all facets of the sector including Funds Management, PropertyDevelopment, Project Management and Construction. Prior to joining Australand, Mr Johnston spent 20 years withthe Lend Lease Group in various roles in Australia, Asia, US and the UK.

Directorships of listed entities within the last three years include:Nil

Other current Directorships / Offices:Director of Property Industry Foundation

Financial Report 2013 3

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Beth May LaughtonBEc, FCA, FAICD

Term of Office:Non-Executive Director since 7 May 2012. Ms Laughton was elected at the 2013 Annual and General Meetings.

Independent:Yes

Board Committee membership:Member of the Audit Committee.

Skills and experience:Ms Laughton is a chartered accountant with a strong background in corporate finance, having held senior roles atWilson HTM, TMT Partners, KPMG, HSBC Securities and Ord Minnett, where she provided merger and acquisition advice and arranged equity funding across a range of industries.

Directorships of listed entities within the last three years include: Director of JB Hi-Fi Limited (appointed May 2011)

Other current Directorships / Offices:Director of CRC CARE Pty Ltd Member of the Defence SA Advisory Board

Lui Chong CheeBSc, MBA

Term of Office:Non-Executive Director since 11 December 2001 and Chairman from 1 June 2007 until 14 April 2011. Mr Lui was re-elected at the 2012 Annual and General Meetings.

Independent:Yes

Board Committee membership:Member of the Remuneration & Nomination Committee.

Skills and experience:Currently Chief Financial Officer of Raffles Medical Group Limited. He previously held the position of CEO,CapitaLand Financial Limited up until his resignation on 31 May 2010. During his time with CapitaLand Limited, heheld a succession of senior financial and operational management positions across the Group. Prior to joining theCapitaLand Group, he was Managing Director of Citicorp Investment Bank (Singapore) Limited. He joined Citibank, Singapore in July 1986.

Directorships of listed entities within the last three years include: Nil




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Nancy Jane Milne, OAMLLB

Term of Office:Non-Executive Director since 1 October 2010. Ms Milne was last elected at the 2011 Annual and General Meetings and, in accordance with Australand s Constitution, is retiring by rotation and standing for re-election in 2014.

Independent:Yes

Board Committee membership:Chair of the Risk & Compliance Committee and Member of the Remuneration & Nomination Committee

Skills and experience:An experienced company director with extensive business experience. A consultant at Clayton Utz, (formerly aSenior Partner of the firm) specialising in the areas of insurance and risk. Previously a member and Chairperson of Australand s Risk & Compliance Committee from 2003 until April 2009.

Directorships of listed entities within the last three years include:Director of Crowe Horwath Australasia (appointed 28 November 2013)Director of Commonwealth Property Office Fund (appointed 1 January 2009) Director of CFS Retail Property Trust Group (appointed 1 January 2009)

Other current Directorships / Offices:Director of Colonial Mutual Life Assurance Society Limited (retired 30 June 2013)Director of Commonwealth Insurance Limited (retired 30 June 2013)Director of Commonwealth Managed Investments Limited Chair of Securities Exchanges Guarantee Corporation LimitedAustralian International Disputes Centre LimitedGood Beginnings Australia

Stephen Eric NewtonBA (Econ & Actg), CA, MCom

Term of Office:Non-Executive Director since 18 December 2007. Mr Newton was re-elected at the 2013 Annual and GeneralMeetings.

Independent:Yes

Board Committee membership:Member of the Investment Committee and the Risk & Compliance Committee

Skills and experience:An experienced company director in the real estate and infrastructure sectors. Currently Joint Managing Directorand co-founder of Arcadia Funds Management Limited. Prior to establishing the Arcadia Group in December 2002,he was a senior executive with the Lend Lease Group, a member of its global senior executive management groupand a director of a number of Lend Lease entities and managed funds (November 1980 to December 2002). Hasover thirty years experience in the real estate sector both in Australia and internationally with extensive involvement in all aspects of asset management, development management, real estate investment management and mergers,acquisitions and dispositions of publicly listed and private (wholesale) real estate investment trusts and companies.



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Other current Directorships / Offices: Director of Newcastle Airport Limited (resigned 29 November 2013)Advisory Board Member representing Alberta Investment Management Corporation (Canada) for Forestry Investment TrustDirector of Broadcast Australia Group Director of Athllon Trustees Pty LimitedDirector of University of Notre Dame Australia Member of the Finance Committee and Property Committee for the Catholic Archdiocese of Sydney

Robert Edward ProsserMA, FCA, MAICD, SA Fin

Term of Office:Non-Executive Director since 9 February 2011. Mr Prosser was last elected at the 2011 Annual and GeneralMeetings and, in accordance with Australand s Constitution, is retiring by rotation and standing for re-election in2014.

Independent:Yes

Board Committee membership:Member of the Audit Committee and the Risk & Compliance Committee

Skills and experience:Mr Prosser has a strong finance and accounting background having retired in June 2008 as aPricewaterhouseCoopers ( PwC ) Partner in Sydney where he was responsible for due diligence in relation tomergers, acquisitions, equity raisings and divestments. At the time of his resignation, he was chair of PwC s publicreports panel, with responsibility for the quality control of all public documents and liaison with regulators.

Directorships of listed entities within the last three years include:Moly Mines Limited (appointed 20 October 2010, resigned 22 December 2011)

Other current Directorships / Offices:Director of National Breast Cancer Foundation

COMPANY SECRETARIESCompany secretaries of the Board in office at the date of this report, and each company secretary s experience andqualifications are as shown below.

Beverley Ann Booker (Group Company Secretary)BBus, FCPA, FCIS, FGIA, FAICDCompany Directors Advanced Diploma

Ms Booker was appointed Company Secretary of the Responsible Entity on 25 October 2006.

Ms Booker joined Australand as Group Company Secretary in October 2006. Her previous positions includedGroup Company Secretary / General Manager Risk & Compliance for the Australian Agricultural Company Limitedand Group Company Secretary of AMP Limited. Ms Booker has over 25 years experience across a wide range ofbusiness areas including governance, compliance, risk management and strategic and operational planning.



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Michael Bowden Newsom (General Counsel)BA, LLB, FCIS, MAICD

Mr Newsom was appointed a Company Secretary of the Responsible Entity on 29 January 2004 and acts asCompany Secretary in Ms Booker s absence.

Mr Newsom joined Australand in August 2000 as General Counsel. Prior to joining Australand, Mr Newsom heldpositions of Company Secretary and General Counsel for Pioneer International Limited and Ampol Limited. He hasover 30 years experience in commercial and corporate law, dispute resolution, capital markets, mergers andacquisitions and corporate administration both in private legal practice and in large publicly listed companies across the property, building materials, petroleum and financial services sectors.

Meetings of Directors

The number of meetings of directors (including committee meetings) held during the year and the number of meetings attended by each director or committee member is as follows:

Director BoardAudit

CommitteeInvestmentCommittee

Remuneration& Nomination

Committee

Risk & ComplianceCommittee

Olivier Lim (Chairman) 18 (18) 1 (1)Paul Dean Isherwood (Deputy Chairman and Lead Independent Director) 18 (18) 6 (6) 1 (1) 6 (6)Bob Johnston 18 (18) 1 (1)Beth Laughton 17 (18) 6 (6)Lui Chong Chee 16 (18) 5 (6)Nancy Milne 18 (18) 6 (6) 4 (4)Stephen Newton 18 (18) 1 (1) 4 (4)Bob Prosser 18 (18) 6 (6) 4 (4)

Notes:1. Figures in brackets indicate the number of meetings held during the time the director held office or was a member of the Board or the Board Committee during the year.2. There were 3 Board Sub-Committee meetings held during the year in addition to the meetings shown in the above table.3. Mr Johnston is a member of the Investment Committee and attends all other Committee meetings by invitation.4. One Independent Board Committee meeting was held during the year.

DIRECTORS BENEFITS AND INTERESTS IN CONTRACTS

Since 31 December 2012, no director or an associate of a director, has received or become entitled to receive abenefit (other than a benefit included in the total amount of emoluments received or due and receivable by directors or their associates shown in the consolidated financial statements) because of a contract that the director, or a firmof which the director is a member, or an entity in which the director has a substantial interest has made (duringthat, or any other, financial year) with the Trust or an entity that the Trust controlled, or a body corporate that wasrelated to the Trust when the contract was made or when the director or associate received or became entitled toreceive the benefit.


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PRINCIPAL ACTIVITIES

The principal activity of the Trust is investment in income producing commercial and industrial properties withinAustralia.

The Responsible Entity holds an Australian Financial Services Licence (No. 231130) issued pursuant to section913B of the Corporations Act 2001 and the Trust is registered as a Managed Investment Scheme.

REVIEW OF OPERATIONS

The net profit of the consolidated entity for the year ended 31 December 2013 was $242,150,000 (2012: net profitof $247,687,000). The investment property portfolio comprises 68 properties with an aggregate value of$2,387,883,000 (2012: $2,286,043,000).

The net tangible asset backing of the consolidated entity as at 31 December 2013 was $3.50 (2012: $3.29) per fullypaid unit.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

There were no significant changes in the state of affairs of the Trust during the financial year.

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

Other than the extension of the $350 million debt tranche to July 2018, there have been no significant events ortransactions that have arisen since the end of the financial year, which in the opinion of the directors, would affectsignificantly the operations of the consolidated entity, the results of those operations, or the state of affairs of theconsolidated entity.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

Despite the sale of several assets during 2013 and 7% of the portfolio s income being subject to lease maturitiesduring the next 12 months, the portfolio is expected to deliver modest growth in Rental Income for 2014. This issupported by fixed rent increases across 87% of the portfolio s income, additions from the Australand HoldingsLimited development pipeline and anticipated leasing of existing vacancies.

ENVIRONMENTAL REGULATION

The consolidated entity, as owner of properties in the Trust, regularly monitors its environmental exposures toensure that it has complied with environmental regulations. The directors are not aware of any material breaches of environmental regulations during the year covered by this report.



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DISTRIBUTIONS

Distributions paid or declared by Australand Property Trust, Australand Property Trust No.4 and AustralandProperty Trust No.5 to securityholders since the end of the previous financial year were:

Type Distributions per unitTotal amount

$ 000 Date of payment

Final for 2012 11.0 cents 63,453 8-Feb-13

Interim for 2013 10.5 cents 60,724 7-Aug-13

Final for 2013 11.0 cents 63,616 7-Feb-14

The Record Date to determine entitlements to the final 2013 distribution was 5.00pm, 31 December 2013. The final2013 distribution of 11 cents per unit (comprising a 8.42 cents per unit distribution from Australand Property Trust,a 1.83 cents per unit distribution from Australand Property Trust No.4 and a 0.75 cents per unit distribution fromAustraland Property Trust No.5), was paid on 7 February 2014.

DIRECTORS AND OFFICERS INDEMNITY AND INSURANCE

Australand Property Trust

Clause 18 of Australand Property Trust s constitution provides: The Manager is entitled to be indemnified out ofthe assets of the Trust for any liability incurred by it in properly performing or exercising any of its powers or dutiesin relation to the Trust. To the extent permitted by the Corporations Act 2001, this indemnity includes any liabilityincurred as a result of any act or omission of a delegate or agent appointed by the Manager. This indemnity is inaddition to any indemnity allowed by law. It continues to apply after the Manager retires or is removed from theoffice it holds in relation to the Trust.

Australand Property Limited in its capacity as the Responsible Entity of Australand Property Trust has executeddeeds of access, insurance and indemnity in terms of Clause 18 in favour of each director of the Company.

Australand Property Trust No.4

Clause 19 of Australand Property Trust No.4 s constitution provides:

The Manager is entitled to be indemnified out of the assets of the Trust for any liability incurred by it in properlyperforming or exercising any of its powers or duties in relation to the Trust. To the extent permitted by theCorporations Act 2001, this indemnity includes any liability incurred as a result of any act or omission of a delegateor agent appointed by the Manager. This indemnity is in addition to any indemnity allowed by law. It continues toapply after the Manager retires or is removed from the office it holds in relation to the Trust.

Australand Investments Limited in its capacity as the Responsible Entity of Australand Property Trust No.4 hasexecuted deeds of access, insurance and indemnity in terms of Clause 19 in favour of each director of theCompany.


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DIRECTORS AND OFFICERS INDEMNITY AND INSURANCE (continued)

Australand Property Trust No.5




NON-AUDIT SERVICES

Details of the assurance services undertaken by the Trust s external auditor, PricewaterhouseCoopers, includingthe amounts paid or payable to the external auditor for non-audit services, are set out below and in Note 4 to thefinancial statements.

2013$

2012$

Assurance servicesFees paid or payable to PricewaterhouseCoopers Australian firm:Audit ServicesAudit and review of financial reports and other audit work under the Corporations Act 2001 156,800 150,800Total remuneration for audit services 156,800 150,800Other assurance servicesFees paid or payable to PricewaterhouseCoopers Australian firm:Compliance plan audit services 51,300 49,350Audit of regulatory returns 104,800 105,470Total remuneration for other assurance services 156,100 154,820Total auditor s remuneration 312,900 305,620

No non-audit services were provided by PricewaterhouseCoopers during the year to 31 December 2013 (2012: Nonon-audit services).

AUDITOR S INDEPENDENCE DECLARATION

A copy of the auditor s independence declaration as required under section 307C of the Corporations Act 2001 isset out on page 12.

AUDITOR

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



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ROUNDING OF AMOUNTS

The Trust and its controlled entities are an entity of the kind referred to in Class Order 98/100 issued by theAustralian Securities and Investments Commission, relating to the rounding of amounts in the directors report.Amounts in the directors report have been rounded off in accordance with that Class Order to the nearestthousand dollars, or in certain cases, to the nearest dollar.

Dated at Sydney this 27th day of February 2014.

Signed in accordance with a resolution of the directors.

Olivier Lim Bob JohnstonChairman Managing Director

Bob Johnston


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CONSOLIDATED INCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2013

2013 2012

Notes $ 000 $ 000

Rental income 199,961 181,265Recoverable outgoings 34,242 32,348Interest income 98,802 126,800Share of net profits of joint ventures and associates accounted for using the equity method 12,949 7,058Other income 500 1,711

Total revenue 346,454 349,182

Rates, taxes and other property outgoings (44,384) (38,864)Finance costs 3 (92,462) (107,597)Amortisation of lease incentives (4,245) (3,562)Trust management fees (5,060) (4,745)Professional fees (352) (172)

Other expenses (51) (15)

Total expenses (146,554) (154,955)Net gains from fair value adjustments on investment property 8 42,250 53,460

Net profit 242,150 247,687

Net profit attributable to non-controlling interests Australand Holdings Limited (AHL) 4,757 3,942

Net profit attributable to ASSETS Hybrid equity holders 21,061 23,856

216,332 219,889

Attributable to:Equity holders of Australand Property Trust 174,457 155,874Equity holders of other stapled entities (non-controlling interest):

- Australand Property Trust No. 4 (APT 4) 29,558 51,857

- Australand Property Trust No. 5 (APT 5) 12,317 12,158

216,332 219,889

Earnings per unit Australand Property Trust (Parent Entity)Basic and diluted earnings per unit 17 30.2 cents 27.0 cents

Earnings per unit Consolidated (including APT, APT 4 and APT 5)Basic and diluted earnings per unit 17 37.4 cents 38.1 cents

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


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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2013

2013 2012$ 000 $ 000

Net profit for the financial year 242,150 247,687

Other comprehensive incomeItems that may be reclassified to profit and loss

Changes in the fair value of cash flow hedges, net of tax 30,350 (39,994)Share of associate and joint venture changes in the fair value of cash flow hedges (net of tax) - 466

Total comprehensive income for the financial year 272,500 208,159

Total comprehensive income for the year is attributable to:

Equity holders of APT 204,807 116,346

Equity holders of other stapled entities (non-controlling interest):

- Australand Property Trust No. 4 (APT4) 29,558 51,857

- Australand Property Trust No. 5 (APT5) 12,317 12,158

- Equity holders of ASSETS 21,061 23,856

- Other non-controlling interests 4,757 3,942

272,500 208,159

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.



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CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2013

Notes

2013 2012$ 000 $ 000

Current assetsCash and cash equivalents 20(a) 12,889 11,730Receivables 5 1,379 1,417

Other assets 6 2,792 2,772

17,060 15,919

Investment properties held for sale 7 - 114,000

Total current assets 17,060 129,919

Non-current assetsReceivables 5 771,167 929,202Investment properties 8 2,387,883 2,286,043Investments accounted for using the equity method 9 82,575 102,909Derivative financial instruments 10 41,382 21,715

Other assets 6 2,131 3,398

Total non-current assets 3,285,138 3,343,267

Total assets 3,302,198 3,473,186

Current liabilitiesPayables 11 34,759 27,833

Provisions 12 71,215 72,046

Borrowings 13 210,000 100,000

Derivative financial instruments 10 26,774 33,764

Total current liabilities 342,748 233,643

Non-current liabilities

Borrowings 13 878,992 1,252,889

Derivative financial instruments 10 57,060 88,695

Other liabilities 14 1,854 2,805

Total non-current liabilities 937,906 1,344,389

Total liabilities 1,280,654 1,578,032

Net assets 2,021,544 1,895,154

EquityEquity holders of APT:Contributed equity 15 1,166,991 1,164,703Reserves 15 (53,028) (83,378)

Undistributed income 15 123,737 46,552

Equity holders of APT 1,237,700 1,127,877

Equity holders of APT 4 and APT 5 (non-controlling interests) 15 456,089 440,397

Unitholders interest in the Australand Property Trust 15 1,693,789 1,568,274

ASSETS hybrid equity and other non-controlling interests 16 327,755 326,880

Total equity 2,021,544 1,895,154

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


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CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2013

Notes2013 2012

$ 000 $ 000

Cash flows from operating activitiesReceipts from customers 232,371 214,635Payments to suppliers (47,952) (46,155)Interest received 98,802 121,186

Interest paid (97,919) (101,487)

Distributions received from joint ventures and associates 8,716 5,558

Net cash inflow from operating activities 20(b) 194,018 193,737

Cash flows from investing activitiesProceeds from sale of investment property 121,794 72,395

Payments for acquisition and improvement of investment properties (70,815) (176,862)

Net equity investments in joint ventures and associates (17,942) (28,448)

Proceeds from sale of units in associate 42,508 -

Net cash outflow inflow from investing activities 75,545 (132,915)

Cash flows from financing activitiesDistributions paid (124,177) (124,022)Proceeds from borrowings 355,000 849,400Repayment of borrowings (635,000) (885,000)Distributions paid to outside equity interest ASSETS (21,553) (23,856)Distributions paid to outside equity interest Other (3,882) (2,481)Proceeds from issue of stapled securities (net of transaction costs) 3,173 (23)

Repayment of related party borrowings 158,035 123,554

Net cash outflow from financing activities (268,404) (62,428)

Net (decrease) / increase in cash 1,159 (1,606)

Cash at the beginning of the financial year 11,730 13,336

Cash at the end of the financial year 20(a) 12,889 11,730

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



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CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2013

Contributedequity Reserves

Undistributedincome Total

Non-controlling

interest* Total

31 December 2013 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000

Balance at 1 January 1,164,703 (83,378) 46,552 1,127,877 767,277 1,895,154Total comprehensive income for the year attributable to:APT (parent) - 30,350 174,457 204,807 - 204,807APT 4 & APT 5 (non-controllinginterest) - - - - 41,875 41,875ASSETS (non-controlling interest) - - - - 21,061 21,061Other non-controlling interest - - - - 4,757 4,757Total comprehensive income for the year - 30,350 174,457 204,807 67,693 272,500Represented by:Profit for the year - - 174,457 174,457 67,693 242,150

Other comprehensive income - 30,350 - 30,350 - 30,350Total comprehensive income for the year - 30,350 174,457 204,807 67,693 272,500

Transactions with equity holders:Contributions of equity, net of transaction costs 2,288 - - 2,288 885 3,173Distributions provided for or paid - - (97,272) (97,272) (27,068) (124,340)Distributions provided for or paid to ASSETS hybrid equity holders - - - - (21,061) (21,061)

Distributions - other - - - - (3,882) (3,882)

Balance at 31 December 1,166,991 (53,028) 123,737 1,237,700 783,844 2,021,544

31 December 2012

Balance at 1 January 1,164,719 (43,850) (14,310) 1,106,559 729,786 1,836,345Total comprehensive income for the year attributable to:

APT (parent) - (39,528) 155,874 116,346 - 116,346APT 4 & APT 5 (non-controllinginterest) - - - - 64,015 64,015

ASSETS (non-controlling interest) - - - - 23,856 23,856

Other non-controlling interest - - - - 3,942 3,942Total comprehensive income for the year - (39,528) 155,874 116,346 91,813 208,159

Represented by:

Profit for the year - - 155,874 155,874 91,813 247,687

Other comprehensive income - (39,528) - (39,528) - (39,528)Total comprehensive income for the year - (39,528) 155,874 116,346 91,813 208,159

Transactions with equity holders:Contributions of equity, net of transaction costs (16) - - (16) (7) (23)Distributions provided for or paid - - (95,012) (95,012) (30,459) (125,471)Distributions provided for or paid to ASSETS hybrid equity holders - - - - (23,856) (23,856)

Balance at 31 December 1,164,703 (83,378) 46,552 1,127,877 767,277 1,895,154

* Includes APT4, APT5, AHL and ASSETS

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


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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2013

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies adopted in the preparation of the consolidated financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financialreport includes financial statements for the consolidated entity consisting of Australand Property Trust ( the Trustor APT ) and its subsidiaries and controlled entities as defined in note 1(b). Australand Property Trust and itssubsidiaries are part of the stapled group that belongs to the Australand Property Group ( the Group ).

a) Basis of preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards andInterpretations issued by the Australian Accounting Standards Board ( AASB ), and the Corporations Act 2001.

APT is a for profit entity for the purposes of preparing financial statements.

The accounting policies adopted are consistent with those of the previous and interim reporting period andcorresponding financial year.

RefinancingThe consolidated entity had an excess of current liabilities over current assets at 31 December 2013 of$323,817,000 (2012: $103,724,000). This excess of current liabilities was primarily due to a $350 million tranche of the Group s corporate debt facilities maturing in July 2014. This tranche was drawn to $210 million as at 31December 2013. The maturity of this tranche has subsequently been extended to July 2018.The consolidated entity had access to cash and undrawn facilities of $601 million as at 31 December 2013, which will enable it to pay itsdebts when they are due.

Compliance with International Financial Reporting Standards ( IFRS )

The financial report of the consolidated entity complies with IFRS as issued by the International AccountingStandards Board ( IASB ).

Changes in accounting policy

Several new or revised accounting standards became effective for the annual reporting period commencing on 1January 2013 as set out below.

AASB 10 Consolidated Financial Statements ( AASB 10 ) and AASB 11 Joint Arrangements ( AASB 11 ) impact thepolicy dealing with the principles of consolidation.

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

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

Under AASB 11 investments in joint arrangements are classified as either joint operations or joint venturesdepending on the contractual rights and obligations each investor has, rather than the legal structure of the jointarrangement. The consolidated entity has assessed the nature of its joint arrangements and determined it has onlyjoint ventures.

The accounting for the consolidated entity s joint ventures has not changed as a result of the adoption of AASB 11.The consolidated entity continues to account for these using the equity method.



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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(a) Basis of preparation (continued)

Changes in accounting policy (continued)

Under this method, the interests are initially recognised in the consolidated balance sheet at cost and adjusted thereafter to recognise the consolidated entity s share of the post-acquisition profits or losses and movements in other comprehensive income in profit or loss and other comprehensive income respectively.

AASB 13 Fair Value Measurement ( AASB 13 ) was issued in September 2011 and provides a precise definition offair value and a single source of fair value measurement and disclosure requirements for application across allaccounting standards. While these requirements do not extend the use of fair value accounting, they provideguidance on how fair value accounting should be applied where its use is already required or permitted by otheraccounting standards. The application of the new standard has not resulted in any change to fair valuemeasurement. The additional disclosures required have been applied in Note 8.

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment properties, financial assets and liabilities (including derivative instruments) at fair value through profitor loss.

Prior year and current year classifications

Reclassifications of a number of immaterial balances have been made to the income statement and balance sheetin the current period to better reflect the underlying nature of these balances. These changes do not affect thecomparability of amounts from period to period.

Critical accounting estimates

The preparation of these financial statements requires the use of certain critical accounting estimates andassumptions concerning the future. It also requires management to exercise its judgement in the process ofapplying the consolidated entity s accounting policies. The resulting estimates will, by definition, seldom equal therelated actual results. It is reasonably possible that outcomes in subsequent reporting periods could requirematerial adjustment to the carrying amount of the asset/liability. The material estimates and assumptions in thesefinancial statements include:

(i) Investment Properties: All investment properties are valued at least every 2 years by externalindependent valuers. Values are based on active market prices, adjusted if necessary, for specificasset conditions. If this information is not available, the consolidated entity uses alternative valuationmethods such as the capitalisation approach and discounted cash flow projections.

(ii) Financial Instruments: A variety of methods are used to calculate the value of financial instruments and make assumptions that are based on market conditions existing at each balance date. Valuation ofderivative financial instruments involves assumptions based on quoted market rates adjusted forspecific features of the instrument. The valuations of any financial instrument may change in the eventof market volatility.

b) Principles of consolidation

i) Subsidiaries and controlled entities

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries and controlled entities of Australand Property Trust ( APT ), including Australand Property Trust No.4 ( APT4 ), and Australand PropertyTrust No.5 ( APT5 ) as at 31 December 2013 and the results of all subsidiaries and controlled entities for the yearthen ended. APT and its subsidiaries and controlled entities are referred to in this financial report as theconsolidated entity.


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b) Principles of consolidation (continued)

Subsidiaries and controlled entities are all those entities (including special purpose entities) over which theconsolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposedto, or has rights to variable returns from its involvement with the entity and has the ability to affect those returnsthrough its power over the entity. Control is generally associated with a shareholding of more than one-half of thevoting rights. The existence and effect of potential voting rights that are currently exercisable or convertible areconsidered when assessing whether the consolidated entity controls another entity.

Subsidiaries and controlled entities are fully consolidated from the date on which control is transferred to theconsolidated entity. They are de-consolidated from the date that control ceases.

Inter-entity transactions, balances and unrealised gains on transactions between consolidated entity entities areeliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. The accounting policies adopted by the subsidiaries, joint ventures and associates are consistent with those of the consolidated entity.

ii) Associates and joint venture entitiesAssociates are entities where the consolidated entity has significant influence but not control of those entities,generally accompanying a shareholding of between 20% and 50%.

Under AASB 11 Joint Arrangements ( AASB 11 ) investments in joint arrangements are classified as either jointoperations or joint ventures depending on the contractual rights and obligations each investor has, rather than thelegal structure of the joint arrangement. The consolidated entity has assessed the nature of its joint arrangementsand determined to have only joint ventures.

Joint VenturesInvestments in associates and joint ventures entities are accounted for using the equity method of accounting, after being initially recognised at cost.

Under this method, the consolidated entity s share of the entities profits or losses are recognised in theconsolidated income statement, and its share of the entities movements in reserves is recognised in theconsolidated reserves of the consolidated entity. The cumulative movements are adjusted against the carryingamount of the investment. Dividends/distributions receivable from associates and joint ventures reduce the carrying amount of the investment.

When the consolidated entity s share of losses equals or exceeds its interest in the entity, including any otherunsecured long-term receivables, the consolidated entity does not recognise any further losses, unless it hasincurred obligations or made payments on behalf of the entity.

Unrealised gains on transactions establishing joint ventures and transactions between the consolidated entity andits associates or joint ventures are eliminated to the extent of the consolidated entity s interest until such time asthey are realised by the entity through consumption or sale. Unrealised losses are also eliminated unless thetransaction provides evidence of an impairment of the asset transferred.

iii) Stapling arrangementsAustraland Property Trust ( APT ) has been identified as the acquirer in relation to the post date of transitionstapling with Australand Property Trust No. 4 ( APT4 ) and Australand Property Trust No. 5 ( APT5 ). Consequentlythe results and equity, not directly owned by APT, of APT4 and APT5 have been treated and disclosed as non-controlling interest. Whilst the results and equity of APT4 and APT5 are disclosed as non-controlling interest, thestapled security holders of APT are the same as the stapled security holders of APT4 and APT5.



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c) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised for the major business activities as follows:

Rental IncomeRental income from operating leases is recognised in income on a straight line basis over the lease term. An assetis recognised to represent the portion of operating lease income in a reporting period relating to fixed increases inoperating lease rentals in future periods. Such assets are recognised as a component of the carrying amount ofinvestment properties in the balance sheet.

Interest incomeInterest income is recognised under the effective interest rate method.

DistributionsDistributions are recognised as revenue when the right to receive payment is established.

d) Investment properties

Investment properties comprise investment interests in land and buildings held for long term rental yields and notoccupied by the consolidated entity. Investment properties are carried at fair value which is based on active market prices, given their highest and best use, adjusted if necessary, for any difference in the nature, location or condition of the specific asset. If this information is not available, the consolidated entity uses alternative valuation methodssuch as the capitalisation approach and discounted cash flow projections. The highest and best use of aninvestment property refers to the use of the investment property by market participants that would maximise thevalue of that property. Each property is valued at least every 2 years by external independent valuers. Anyresultant changes in fair value are shown separately in the consolidated income statement as net gains/(losses)from fair value adjustments on investment property.

The carrying amount of investment properties recorded in the balance sheet includes components relating to leaseincentives and assets relating to fixed increases in operating lease rentals in future periods.

Investment properties under constructionInvestment properties under construction are carried at fair value after allowing for the remaining expected costs ofcompletion plus an appropriate risk adjusted development margin.

e) Cash and cash equivalents

For cash flow statement purposes cash and cash equivalents includes cash on hand, deposits held at call withfinancial institutions, other short-term, highly liquid investments with original maturities of three months or less thatare readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value,and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.

f) Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using theeffective interest method, less provision for impairment.

Collectability of trade receivables is reviewed on an ongoing basis. Receivables which are known to beuncollectible are written off. A provision for any impairment of trade receivables is established when there isobjective evidence that the consolidated entity will not be able to collect all amounts due according to the originalterms of receivables. The amount of the provision is the difference between the asset s carrying amount and thepresent value of estimated future cash flows, discounted at the effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial.


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g) Business combinations

The acquisition method of accounting is used to account for all business combinations including businesscombinations involving entities or businesses under common control regardless of whether equity instruments orother assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fairvalues of the assets transferred, the liabilities incurred and the equity interests issued by the consolidated entity.The consideration transferred also includes the fair value of any contingent consideration arrangement and the fairvalue of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred.Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, withlimited exceptions, measured initially at their fair values at the acquisition date. On an acquisition-by-acquisitionbasis, the consolidated entity recognises any non-controlling interest in the acquiree either at fair value or at thenon-controlling interest s proportionate share of the acquiree s net identifiable assets.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and theacquisition-date fair value of any previous equity interest in the acquiree over the fair value of the consolidatedentity s share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fairvalue of the net identifiable assets of the subsidiary acquired and the measurement of all amounts has beenreviewed, the difference is recognised directly in the profit or loss as a bargain purchase.

h) Impairment of assets

Assets that have an indefinite useful life are not subject to amortisation or depreciation and are tested annually forimpairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes incircumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for theamount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is thehigher of an asset s fair value less costs to sell and value in use. For the purposes of assessing impairment, assetsare grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).

i) Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying value will be recovered principally through a sales transaction rather than through continuing use and a sale is considered highly probable. They are measured at thelower of their carrying value and the fair value less costs to sell, except for assets such as investment property thatare carried at fair value.

j) Trade and other payables

Trade and other payables represent liabilities for goods and services provided prior to the end of the financial yearand which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

k) Provisions

Provisions are recognised when the consolidated entity has a present legal or constructive obligation as a result ofpast events, it is probable that an outflow of resources will be required to settle the obligation and the amount hasbeen reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement isdetermined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management s best estimate of the expenditure required to settlethe present obligation at the balance sheet date. The discount rate used to determine the present value reflectscurrent market assessments of the time value of money and the risks specific to the liability. The increase in theprovision due to the passage of time is recognised as interest expense.



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l) Lease incentives

Prospective lessees may be offered incentives as an inducement to enter into non-cancellable operating leases.These incentives may take various forms including, up front cash payments, rent free periods, or a contribution tocertain lessee costs such as fit out or relocation costs. As these incentives are repaid out of future lease payments, they are recognised as an asset in the consolidated balance sheet as a component of the carrying amount ofinvestment properties and amortised over the lease period.

m) Employee benefits

Security-based compensation benefits are provided to Australand Property Group employees via the AustralandPerformance Rights Plan and the Australand Tax Exempt Employee Security Plan. The fair value of optionsgranted is determined at grant date and recognised as an expense with a corresponding increase in equity overtheir vesting period.

n) Borrowings and borrowing costs

Borrowings are initially recognised at fair value including transaction costs incurred. Borrowings are subsequentlymeasured at amortised cost. Any difference between proceeds (net of transaction costs) and redemption isrecognised in the income statement over the period of the borrowings using the effective interest method. Feespaid on the establishment of loan facilities, which are not an incremental cost relating to the actual draw-down ofthe facility, are recognised as prepayments and amortised on a straight-line basis over the term of the facility.Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguishedor transferred to another party and the consideration paid, including any non-cash assets transferred or liabilitiesassumed, is recognised in the income statement as other income or finance costs.

Borrowing costs incurred for construction of any qualifying asset are capitalised during the period of time that isrequired to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed. Inextended periods where development of a qualifying asset is suspended borrowing costs are expensed asincurred.

The amount of borrowing costs eligible to be capitalised is calculated using the weighted average interest rateapplicable to the entity s outstanding borrowings during the year.


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o) Derivatives and hedging activities

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and aresubsequently remeasured to their fair value at each reporting date. The method of recognising the resulting gain orloss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the itembeing hedged. The consolidated entity designates certain derivatives as either:

- hedges of highly probable forecast transactions (cash flow hedges)- hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedges).

The consolidated entity documents at the inception of the hedging transaction the relationship between hedginginstruments and hedged items, as well as its risk management objective and strategy for undertaking varioushedge transactions. The consolidated entity also documents its assessment, both at hedge inception and on anongoing basis, of whether the derivatives that are used in hedging transactions have been and will continue to behighly effective in offsetting changes in cash flows of hedged items.

If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedgeditem for which the effective interest method is used is amortised to profit or loss over the period to maturity using arecalculated effective interest rate.

Fair value hedges

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in theprofit or loss, together with any changes in the fair value of the hedged asset or liability that are attributable to thehedged risk. The gain or loss relating to the effective portion of interest rate derivatives hedging fixed rateborrowings is recognised in profit or loss within finance costs, together with changes in the fair value of the hedgedfixed rate borrowings attributable to interest rate risk. The gain or loss relating to the ineffective portion isrecognised in profit or loss within finance costs.

Cash flow hedges

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in equity in the hedging reserve. The gain or lossrelating to the ineffective portion is recognised immediately in the income statement.

Amounts accumulated in equity are recycled in the income statement and disclosed as finance costs in the periodswhen the hedged item will affect profit or loss (for instance when the interest is payable on hedged variable ratesborrowings). However, when the forecast transaction that is hedged results in the recognition of a non-financialasset (for example, inventory) or a non-financial liability, the gains and losses previously deferred in equity aretransferred from equity and included in the measurement of the cost of the asset or liability. The deferred amountsare ultimately recognised in the profit or loss as costs of goods sold in the case of inventory.

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



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p) Foreign currency translation

Functional and presentational currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The consolidated financial statements are presented in Australian dollars, which is the functional and presentational currency of APT and its controlled entities.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at thedates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactionsand from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreigncurrencies are recognised in the income statement.

q) Income tax

Under current income tax legislation the consolidated entity is not liable for income tax, provided that the taxableincome is fully distributed each year including any taxable capital gain derived from the sale of an asset.

r) Earnings per unit

a. Basic earnings per stapled security parent entityBasic earnings per unit is determined by dividing the net profit attributable to the unit holders of Australand Property Trust and its controlled entities (excluding the non-controlling interest of APT4 and APT 5) by the weighted average number of units outstanding during the year, adjusted for bonus elements in units, if any, issued during the year.

b. Diluted earnings per stapled security parent entityDiluted earnings per unit adjusts the figures used in the determination of basic earnings per unit by taking intoaccount the effect of interest and other financing costs associated with dilutive potential ordinary units and theweighted average number of units assumed to have been issued for no consideration in relation to the dilutivepotential ordinary units.

c. Basic earnings per stapled securityBasic earnings per unit is determined by dividing the net profit attributable to Australand Property Trust, APT4 andAPT5 unitholders, excluding any costs of servicing equity other than ordinary units, by the weighted averagenumber of units outstanding during the year, adjusted for bonus elements in units, if any, issued during the year.

d. Diluted earnings per unit securityDiluted earnings per unit adjusts the figures used in the determination of basic earnings per unit for AustralandProperty Trust, APT4 and APT5 by taking into account the effect of interest and other financing costs associatedwith dilutive potential ordinary units and the weighted average number of units assumed to have been issued for no consideration in relation to the dilutive potential ordinary units.

s) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred isnot recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of theasset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable orpayable. The net amount of GST recoverable from, or payable to, the taxation authority is included within otherreceivables or payables in the balance sheet.

t) Trust distributions

Provision is made for the amount of trust distributions declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the financial year but not distributed at balance date.


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u) Contributed equity

Australand Property Group is a stapled group in which the securityholders hold direct interests and an equalnumber of shares in Australand Holdings Limited ( AHL ), and units in each of Australand Property Trust ( APT ),Australand Property Trust No.4 ( APT4 ) and Australand Property Trust No.5 ( APT5 ).

APT has been identified as acquirer in relation to the post-date of transition stapling with APT4 and APT5.Consequently the results and equity, not directly owned by APT, of APT4 and APT5 have been treated anddisclosed as non-controlling interest. Whilst the results and equity of APT4 and APT5 are disclosed as non-controlling interest,the stapled securityholders of AHL and APT are the same as the stapled securityholders ofAPT4 and APT5.

Incremental costs directly attributable to the issue of new units are shown in equity as a deduction, net of tax, fromthe proceeds.

v) Segment reporting

AASB 8 Operating Segments ( AASB 8 ) requires a management approach , under which segment information ispresented on the same basis as that used for internal reporting purposes by the Executive Management Team.

w) Rounding of amounts

The consolidated entity is of a kind referred to in Class Order 98/100 issued by the Australian Securities andInvestments Commission, relating to the rounding off of amounts in the financial report. Amounts in the financialreport have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certaincases, to the nearest dollar.

x) Consolidated financial statements

ASIC Class Order 13/1644 has been relied upon and consolidated financial statements continue to be preparedincorporating the results and financial position of each entity in the stapled group.

y) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for31 December 2013 reporting periods. These are not expected to have any material effect on the consolidatedentity.

z) Parent entity financial information

The financial information for the parent entity, Australand Property Trust, disclosed in Note 26 has been preparedon the same basis as the consolidated financial statements, except for investments in subsidiaries and joint venture entities, which are accounted for at cost.



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2. FINANCIAL RISK MANAGEMENT

Australand Property Group ( Group ) comprises Australand Holdings Limited, Australand Property Trust, Australand Property Trust No.4 and Australand Property Trust No.5 and their respective controlled entities.

The Group's activities expose it to a variety of financial risks including liquidity risk, market risk, credit risk andinterest rate risk. It is the responsibility of the Board and Management to ensure that adequate risk identification,assessment and mitigation practices are in place for the effective oversight and management of these risks. TheGroup's overall management program as it relates to these risks is managed centrally to ensure alignment offinancial risk management with corporate objectives and seeks to minimise potential adverse effects on thefinancial performance of the Group.

The Group uses derivative financial instruments such as interest rate swaps and cross currency interest rate swaps to hedge certain financial risk exposures. Interest rate swaps are exclusively used for hedging purposes, i.e. not as trading or other speculative instruments. The Group uses different methods to measure different types of risk towhich it is exposed. These methods include sensitivity analysis in the case of interest rate and foreign exchangerisk and aging analysis for credit risk.

The Group also uses other derivative instruments such as callable swaps to manage the cost of funding. Theseinstruments provide the group with a fixed interest rate for a period but are callable by the swap counterparty.

Group Treasury identifies, evaluates and mitigates the above financial risks under policies approved by the Boardof Directors.

(a) Credit Risk

Credit risk is the risk that a counterparty will default on their financial obligations resulting in a financial loss to theconsolidated entity.

The consolidated entity s maximum exposure to credit risk at 31 December 2013 is limited to the carrying amountof the financial assets disclosed in Note 21.

Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks andfinancial institutions, as well as credit exposures to receivables from tenants.

Derivative counterparties and cash transactions are limited to high credit quality financial institutions. Theconsolidated entity has policies that limit the amount of credit exposure to any one financial institution.

The consolidated entity has policies in place to ensure that the leasing of investment properties are made tocustomers with an appropriate credit history. Ongoing checks are performed by management to ensure thatsettlement terms detailed in individual contracts are adhered to.

There is no concentration of credit risk with respect to the receivables from tenants as they consist of a largenumber of customers that are geographically dispersed. The consolidated entity does not have any significantcredit risk exposure to a single customer or group of customers.

(b) Market risk

(i) Foreign exchange risk

Foreign exchange risk arises when future commerical transactions and recognised assets and liabilities aredenominated in a currency that is not the entity s functional currency.

As at 31 December 2013, the Group had on issue US$170m of guaranteed senior notes through the US Private Placement debt market (USPP). It is the Group's policy to fully protect debt sourced overseas from exposure to volatility in exchange rates. To remove any foreign exchange and US interest rate exposure, the Group entered into cross currency interest rate swaps (notional principal of US$170m) at the time of issue (May 2011). As a result,the proceeds under the note issue were swapped into Australian dollars and therefore 100% of anticipated US dollar cash flows are hedged for the term of the notes.


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2. FINANCIAL RISK MANAGEMENT (continued)

(b) Market risk (continued)

(i) Foreign exchange risk (continued)

The Group s exposure to foreign currency risk at the reporting date was as follows:2013USD

$ 000

2012USD

$ 000

Borrowings 170,000 170,000

Cross currency interest rate swaps (notional principal) (170,000) (170,000)

- -

(ii) Interest rate risk

The Group s interest rate risk arises from long term borrowings. Borrowings issued at variable rates expose theGroup to cash flow interest rate risk. Group policy is to maintain fixed interest rate hedging above a minimum of70% for 1 year maturities, reducing to 0% for maturities 7 years and beyond.

The Group hedges its interest rate risk by entering into floating-to-fixed interest rate swaps. Such interest rateswaps have the economic effect of converting borrowings from floating rates to fixed rates. Under the interest rateswaps, the Group agrees with other parties to exchange, at specified intervals (mainly quarterly), the differencebetween fixed contract rates and floating rate interest amounts calculated by reference to the agreed notionalprincipal amounts.

Furthermore, as a result of the issue of USPP notes, the Group hedges its US dollar cash flow interest rate risk byentering into cross currency interest rate swaps. The US dollar components of the cross currency swaps arestructured to provide US dollars necessary to pay the semi annual coupons on the US dollar Senior Notes tomaturity. The settlement dates coincide with the dates on which interest is payable on the underlying debt. TheAustralian dollar components of the cross currency swaps are paid on a floating rate basis every 90 days.

The Group s fixed interest rate hedge maturity was 3.2 years at 31 December 2013 (31 December 2012: 4.1years). This profile is longer than the debt maturity of the Group as the Group maintains a portfolio of hedges,some of which are forward start swaps, to protect future debt balances which will arise on the renewal of existingfacilities. At year end, 94% (2012: 81%) of the Group s borrowings were at fixed interest rates (including the effectof interest rate swaps).

The potential impact of a change in interest rates by +/-1% on profit and equity has been disclosed in a table inNote 21(e).

(c) Liquidity Risk

Prudent liquidity risk management implies that at all times the consolidated entity has access to sufficient cashresources to meet its financial obligations as they fall due. The Group manages liquidity risk by continuouslymonitoring forecast and actual cash flows and matching maturity profiles of financial assets and liabilities.

Due to the dynamic nature of the underlying businesses, Group Treasury aims at maintaining flexibility in fundingby keeping committed credit lines available with a variety of counterparties.

At 31 December 2013, the Group, excluding joint arrangements, had undrawn committed facilities of $540 million(2012: $360m) and cash of $61 million (2012: $76m).

At 31 December 2013 the debt maturity profile on the Group s interest bearing debt was 2.4 years (2012: 3.2years). Further information on the debt maturity profile of the Group s financial liabilities is disclosed in Note 13.



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(c) Liquidity risk (continued)

Maturities of financial liabilities

The tables on the following page analyses the consolidated entity s financial liabilities and derivative financial instruments into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows (including estimated interest payments). For interest rate swaps the cash flows have been estimated using forward interest rates applicable (including foreign exchange rates for cross currency interest rate swaps) at the reporting date.

31 December 2013

Within1 year$ 000

Between1 & 2 years

$ 000

Over2 years

$ 000

Totalcontractual

cash flows $ 000

Carryingamount assets/

(liabilities)$ 000

Non-derivativesNon-Interest bearing (34,759) (211) (1,643) (36,613) (36,613)Variable rate (257,162) (335,105) (663,181) (1,255,448) (1,088,992)Total non-derivatives (291,921) (335,316) (664,824) (1,292,061) (1,125,605)DerivativesNet settled (interest rate derivatives) (8,081) (90) (1,449) (9,620) (83,834)Gross settled (cross currency interest rate swaps):

- Outflow (9,076) (10,052) (233,022) (252,150) n/a- Inflow 10,739 10,739 224,551 246,029 n/a

Total 1,663 687 8,471 6,121 41,382

31 December 2012

Within1 year$ 000

Between1 & 2 years

$ 000

Over2 years

$ 000

Totalcontractual

cash flows $ 000

Carryingamount assets/

(liabilities)$ 000

Non-derivativesNon-Interest bearing (27,833) (37) (2,768) (30,638) (30,638)Variable rate (168,041) (403,020) (1,007,399) (1,578,460) (1,352,889)Total non-derivatives (195,874) (403,057) (1,010,167) (1,609,098) (1,383,527)DerivativesNet settled (interest rate swaps) (10,320) (2,611) (5,046) (17,977) (122,459)Gross settled (cross currency interest rate swaps):

- Outflow (10,103) (9,697) (233,817) (253,617) n/a- Inflow 9,237 9,237 226,509 244,983 n/a

Total (866) (460) (7,308) (8,634) 21,715For additional disclosure on the maturity of the consolidated entity s borrowing facilities refer to Note 13.

(d) Fair value estimation

The fair value of financial assets and financial liabilities must be estimated for recognition and measurementpurposes. The consolidated entity uses a variety of methods to calculate the value of financial instruments andmakes assumptions that are based on market conditions existing at each balance date. The fair value of interestrate swaps is calculated as the present value of the estimated future cash flows. The carrying value of trade andother receivables (less impairment provisions), payables and financial liabilities is a reasonable approximation oftheir fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the futurecontractual cash flows at the current market interest rate that is available to the consolidated entity for similarfinancial instruments.


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(d) Fair value estimation (continued)

AASB 13 Fair Value Measurement (AASB 13) requires disclosure of fair values, for each of the followingmeasurement categories:

a) where the fair value is measured using quoted prices (unadjusted in active markets for identical assets orliabilities (level 1));

b) where the fair value is measured using inputs other than quoted prices included within level 1 that areobservable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2);and

c) where the fair value is measured using inputs for the asset or liability that are not based on observablemarket data (unobservable inputs) (level 3).

Both counterparty credit risk and Group credit risk have been considered when valuing the derivatives held at 31December 2013. The impact of these risks on the fair value of the derivatives has been assessed to be immaterial.

The fair value of the Group s derivatives (interest rate derivatives and cross currency swaps) as at 31 December2013 is a net liability of $42.4 million (2012: $100.7m). These are classified as level 2 financial liabilities.

(e) Capital risk management

The consolidated entity s objective when managing capital is to safeguard it s ability to continue as a goingconcern, so that it can continue to provide returns for unitholders and benefits for other stakeholders and tomaintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capitalstructure, the consolidated entity may adjust the amount of distributions paid to unitholders, return capital tounitholders, issue new stapled securities or sell assets to reduce debt.

Gearing ratioThe consolidated entity monitors capital on the basis of the gearing ratio. Gearing is based on the drawn amountof debt excluding fair value adjustments and associated derivative financial instruments less the receivable fromAHL, divided by total tangible assets, excluding the receivable from AHL, net of cash and cash equivalents.

The gearing ratios at 31 December 2013 and 31 December 2012 were as follows:2013) 2012

$ 000) $ 000Total borrowings 1,088,992) 1,352,889Less: fair value adjustment associated with USPP (41,382) (25,232)Less: cash and cash equivalents (12,889) (11,730)Less: receivable from AHL (771,167) (939,532)Net debt 263,554) 376,395

Tangible assets 3,302,198) 3,473,187Less: derivative financial instruments (asset) (41,382) (21,715)Less: cash and cash equivalents (12,889) (11,730)Less: receivable from AHL (771,167) (939,532)Tangible assets net of cash and cash equivalents 2,476,760) 2,500,210

Gearing ratio 11%) 15%The consolidated entity continued to comply with all of its debt covenants during the year.



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3. EXPENSES2013 2012$ 000 $ 000

Finance costs:Interest paid or payable 101,453 101,584Finance charges relating to loan establishment and financing fees 3,663 12,055Unrealised losses on interest rate derivatives (11,839) 9,579Total gross finance costs 93,277 123,218Less: amounts capitalised to investment property under construction (815) (15,621)Finance costs per income statement 92,462 107,597

4. AUDITOR S REMUNERATION

During the year, the following fees were paid or payable for services provided by the auditor of the Trust and itscontrolled entities:

2013$

2012$

Assurance servicesFees paid or payable to PricewaterhouseCoopers Australian firm:Audit servicesAudit and review of financial reports and other audit work under the Corporations Act 2001 156,800 150,800Total remuneration for audit services 156,800 150,800Other assurance servicesFees paid or payable to PricewaterhouseCoopers Australian firm:Compliance plan audit services 51,300 49,350Audit of regulatory returns 104,800 105,470Total remuneration for other assurance services 156,100 154,820Total auditor s remuneration 312,900 305,620

No non-audit services were provided by PricewaterhouseCoopers in the year to 31 December 2013 (2012: Nil).

5. RECEIVABLES2013 2012$ 000 $ 000

CurrentRent debtors 783 1,379Other debtors 596 38

1,379 1,417

Non-currentAmounts owed by related entity Australand Holdings Limited 771,167 929,202

771,167 929,202TermsThe loan with the related entity, Australand Holdings Limited, bears interest monthly at fixed rate of 8.6%. The loanis repayable in June 2017.

Impaired and past due receivablesThere were no material receivables at 31 December 2013 that were past due and impaired (2012: $Nil).

Fair value and credit riskDue to the nature of the current and non-current receivables, their carrying amount is assumed to approximate their fair value. The maximum exposure to credit risk at the reporting date is the carrying amount of each class ofreceivables mentioned above. Refer to Note 2 for more information on the financial risk management policies of the consolidated entity.


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6. OTHER ASSETS

2013 2012$ 000 $ 000

CurrentPrepayments 2,792 2,772

2,792 2,772

Non-CurrentDeferred charges 1,871 1,674Loan establishment fee 260 1,724

2,131 3,398

7. INVESTMENT PROPERTIES HELD FOR SALE

Description

2013Book Value

$ 000

2012Book Value

$ 00080 Alfred Street Milsons Point, NSW1 - 49,000111 Darlinghurst Road, Kings Cross, NSW1 - 65,000

Total investment properties held for sale - 114,0001 The sale of these properties completed during 2013.

8. INVESTMENT PROPERTIES

Details of the individual properties comprising Investment Properties are set out below. Investment properties are 100% owned unless otherwise stated.

DescriptionAcquisition

Date

IndependentValuation

DateIndependent

Valuation $ 000

31 Dec 13Book Value

$ 000

31 Dec 12Book Value

$ 000658 Church Street, Richmond, VIC

Oct-03 Dec-12 34,400 35,250 34,400690 Springvale Rd and 350 Wellington Rd, Mulgrave, VIC Oct-03 Jun-13 76,600 78,600 76,6005 Henry Deane Place, Railway Square, Sydney, NSW Oct-03 Jun-13 46,700 46,800 46,70057-71 Platinum Street, Crestmead, QLD

Oct-03 Jun-12 26,000 27,000 26,1005-7 Trade Street, Lytton, QLD

Oct-03 Jun-13 20,350 20,350 19,600Lot 102 Coghlan Rd, Outer Harbour, SA

Oct-03 Jun-13 7,000 7,000 7,80099 Shettleston Street, Rocklea, QLD

Oct-03 Dec-13 19,500 19,500 19,10051 Stradbroke Street, Heathwood, QLD

Oct-03 Dec-13 21,000 21,000 20,100227 Walters Road, Arndell Park, NSW

Oct-03 Jun-13 23,300 23,000 23,3008 Stanton Road, Seven Hills, NSW

Oct-03 Jun-13 15,000 15,200 15,00026-30 Lee Street, Gateway Building, Sydney, NSW Oct-03 Jun-12 73,000 75,400 74,00010 Butu Wargun Drive, Greystanes, NSW

May-04 Jun-12 32,000 33,000 32,3001B Homebush Bay Drive, Rhodes Corporate Park, Rhodes, NSW May-04 Jun-13 63,500 64,200 58,8001D Homebush Bay Drive, Rhodes Corporate Park, Rhodes, NSW May-04 Jun-13 92,000 92,500 92,000Tower A, 197-201 Coward Street, Mascot, NSW May-04 Dec-13 59,000 59,000 54,500



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8. INVESTMENT PROPERTIES (continued)


Date


Date


$ 000

31 Dec 13Book Value

$ 000

31 Dec 12Book Value

$ 000Lot 101,10 Stanton Rd, Seven Hills, NSW

May-04 Jun-12 10,700 11,250 10,80020 Thackray Road, Port Melbourne, VIC

Dec-04 Dec-12 15,500 14,700 15,50021-33 South Park Drive, Dandenong South, VIC May-05 Dec-12 17,250 18,400 17,25050 Southbank Blvd. Southbank, VIC

May-05 Jun-13 15,200 15,300 15,20023 Scanlon Drive, Epping, VIC

Jun-05 Jun-13 12,900 12,900 11,5006 Butu Wargun Drive, Greystanes, NSW

Jul-05 Dec-12 25,300 25,300 25,30064 West Park Drive, West Park, Derrimut, VIC Aug-05 Dec-13 19,000 19,000 18,70081-103 South Park Drive, Dandenong South, VIC Sep-05 Jun-12 9,100 9,300 9,20035 Huntingwood Drive, Huntingwood, NSW Oct-05 Dec-13 34,600 34,600 33,60080 Hartley Road, Smeaton Grange, NSW

Oct-05 Dec-13 57,500 57,500 53,000Tower B, 197-201 Coward St, Mascot, NSW Oct-05 Dec-13 39,000 39,000 39,900Freshwater Place Office Tower, 2 Southbank Boulevard, Southbank, VIC (50% interest) Oct-05 Jun-12 196,500 204,100 202,60063 South Park Drive, Dandenong, VIC

Oct-05 Jun-13 11,250 11,250 11,80047-59 Boundary Road, Carole Park, QLD

Oct-05 Dec-13 12,000 12,000 11,40022-28 Bam Wine Court, Dandenong South, VIC Oct-05 Dec-13 18,400 18,400 18,2002 Wonderland Drive, Eastern Creek, NSW

Oct-05 Dec-13 41,500 41,500 43,500286 Queensport Road, Murarrie, QLD

Oct-05 Jun-13 25,900 27,100 25,2008 Butu Wargun Drive, Greystanes, NSW

Nov-05 Jun-12 30,200 30,500 30,200Civic Tower, 66-68 Goulburn Street, Sydney, NSW (50% interest) Dec-05 Jun-13 63,000 63,000 63,0002 Douglas Street, Port Melbourne, VIC

Dec-05 Jun-12 23,000 23,000 23,000468 Boundary Road, West Park, Derrimut, VIC Jun-06 Jun-13 22,000 22,000 21,40098-126 South Park Drive, Dandenong, VIC

Oct-06 Dec-12 17,750 17,750 17,75097 School Street, Spring Hill, QLD

Feb-07 Dec-13 6,500 6,500 9,00044 Cambridge Street, Rocklea, QLD

Oct-07 Dec-13 15,750 15,750 16,00025-29 Jets Court, Melbourne Airport Business Park, Tullamarine, VIC Dec-07 Jun-12 11,250 11,400 11,265Vanessa Road, Cambellfield, VIC

Dec-07 Dec-10 6,850 - 6,95018-20 Butler Boulevard, Burbridge Business Park, Adelaide Airport, SA Jan-08 Jun-12 8,900 8,800 8,900Spring Valley Business Park, 610 Heatherton Road, Clayton South, VIC Apr-08 Jun-12 25,200 25,100 25,300115-121 South Centre Rd, Melb Airport, Tullamarine, VIC May-08 Jun-12 6,000 6,000 6,000

8 Distribution Place, Seven Hills, NSW May-08 Jun-12 18,500 19,000 18,600Rhodes Corporate Park (Childcare) 1 Homebush Bay Drive, Rhodes, NSW Jun-08 Jun-13 3,000 3,000 3,500Rhodes Corporate Park (Café & Car Wash)1 Homebush Bay Drive, Rhodes, NSW Jun-08 Jun-13 2,900 3,000 2,300Boundary Rd cnr. West Park Dr, Derrimut, VIC Aug-08 Dec-12 8,250 8,200 8,250


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Date


DateIndependent

Valuation $ 000

31 Dec 13Book Value

$ 000

31 Dec 12Book Value

$ 00028-32 Sky Road East, Melb Airport Bus Park, Melb Airport, Tullamarine, VIC Aug-08 Dec-12 8,000 8,000 8,000BBP2, 5 Butler Blvd, Adelaide Airport, SA Sep-08 Dec-13 7,600 7,600 7,90094 South Centre Rd, Melbourne Airport Business Park, East Tullamarine, VIC Sep-08 Dec-13 21,000 21,000 22,25028 Southbank Boulevard, Southbank, VIC FW28 (50% interest) Dec-08 Dec-13 119,600 119,600 116,00063 & 99 Sandstone Place, Parkinson, QLD Dec-08 Dec-12 165,500 176,600 165,500

Hudswell Road, Perth Airport, WA Feb-09 Dec-13 23,800 23,800 24,00017-23 Jets Court, Melb Airport Bus Park, Tullamarine, VIC Apr-09 Dec-13 7,300 7,300 7,200Greens Rd & South Park Dr, Dandenong, VIC Apr-09 Dec-13 13,000 13,000 12,00096-106 Link Road, Melbourne Airport Business Park, Tullamarine, VIC Jun-09 Dec-13 26,400 26,400 26,395BBP4, 20-24 Butler Blvd, Adelaide Airport, SA Aug-09 Jun-12 9,800 10,300 9,800

Lot 2, Inner Circle, Port Kembla, NSW Sep-09 Jun-12 21,800 21,850 21,800

260 Earnshaw Rd., Northgate, QLD Dec-09 Dec-12 46,500 47,600 46,500Part Lot 192 and 193 Cnr Robinsons Road, Sunline and Saintly Drives, West Park Industrial Estate, Derrimut, VIC Apr-11 Jun-13 24,700 24,700 24,400

99 Station Road, Seven Hills, NSW Mar-11 Jun-13 15,000 15,000 15,000144-166 Atlantic Drive, Keysborough, VIC Sep-11 Dec-13 28,600 28,600 27,500

49-71 Pacific Drive, Keysborough, VIC Dec-11 Jun-13 23,900 24,500 22,700

357 Collins Street, Melbourne, VIC Dec-12 Dec-12 180,868 198,914 180,868Rhodes F, Homebush Bay Drive, Rhodes, NSW1 Jan-13 Jun-13 91,500 86,433 -Pacific Drive & Greens Road, Keysbourough, Vic1 Feb-13 Jun-13 28,300 28,600 -Lot 1, 14-28 Flint St & 374 Boundary Rd, Inala, Qld1 Jan-13 Jun-13 20,700 21,500 -4 Kangaroo Ave, Eastern Ck, NSW (Eastern Creek Spec) Dec-13 Dec-13 24,000 24,000 -

Other properties Various Dec-11 220 186 1,224

Subtotal 2,387,883 2,173,4021 Under development in 2012.

Properties under Development

Description31 Dec 13 Book

Value $ 00031 Dec 12 Book

Value $ 000

357 Collins Street, Melbourne, VIC - -

Rhodes F, Homebush Bay Drive, Rhodes Corporate Park, Rhodes, NSW - 72,722

Pacific Drive, Keysborough, VIC - 26,457

Lot 1, 14-28 Flint St & 374 Boundary Rd, Inala, Qld - 13,462

Subtotal - 112,641

Total investment properties 2,387,883 2,286,043



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Fair Value Measurement

The value of investment properties is measured on a fair value basis The highest and best use of investmentproperties is taken into consideration when determining their fair value. The highest and best use of an investment property refers to the use of the investment property by market participant that would maximise the value of thatproperty. For all the consolidated entity s investment properties, the current use is considered to be the highestand best use. The best evidence of fair value is given by current prices in an active market for similar property inthe same location and condition and subject to similar leases.

The fair value of investment property has been updated to reflect market conditions at the end of the reporting period. While this represents best estimates as at the balance sheet date if investment property is sold in the future the price achieved may be higher or lower than the most recent valuation.

AASB 13: Fair Value Measurement ( AASB 13 ) requires the disclosure of fair values for each of the followingmeasurement categories:

(i) where the fair value is measured using quoted prices (unadjusted in active markets for identical assets orliabilities (level 1));

(ii) where the fair value is measured using inputs other than quoted prices included within level 1 that areobservable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2); and

(iii) where the fair value is measured using inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).

All of the investment properties in the Group s portfolio are included within the level 3 category described above. Asa result, the significant unobservable inputs associated with the valuation of the Group s investment properties areas follows:

Class Input Range Weighted average

Office Annual Net Property Income ($ 000)

Capitalisation rate (%)

WALE (year)

Discount rate1 (%)

Occupancy (%)

1 14,583

6.75% - 9.50%

0 - 9.9 years

8.75% - 10.50%

0% - 100%

7,859

7.51%

4.8 years

9.21%

93.6%

Industrial Annual Net Property Income ($ 000)


WALE (year)

Discount rate1 (%)

Occupancy (%)

109 - 12,989

7.50% - 10.72%

0 18.5 years

9.25% - 11.00%

0% - 100%

3,827

8.44%

5.8 years

9.70%

96.1%1Discount rates are based on the latest independent valuations.

Relationship between Significant Unobservable Inputs and Fair ValueAnnual Net Property Income: the higher the income the higher the valuation Capitalisation Rate: the lower the capitalisation rate the higher the valuationWALE: the longer the WALE the higher the valuationDiscount Rate: the lower the discount rate the higher the valuation Occupancy: the higher the occupancy the higher the valuation


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At 31 December 2013, the consolidated entity had a portfolio of 68 properties. Independent valuations wereundertaken on approximately 56% of income producing assets (by value) in the twelve months to 31 December2013. The independent valuers are professionally qualified who hold a recognised relevant professionalqualification and have recent experience in the locations and segments of the investment properties valued. Inassessing the value of the investment properties, the independent valuers considered valuations using both thecapitalisation approach and discounted cash flows. Properties that are not independently valued at 31 December2013 are carried at fair value determined by directors valuations

The Australand Property Group has a valuation team that reviews the valuations performed by the independent valuers and perform the underlying valuations that support the directors valuations. Each member of this team areprofessionally qualified and accredited property valuers.

The valuation processes and results of the independent and directors valuations are reviewed at least bi-annually(in line with the Group s reporting periods) by the Chief Financial Officer, Managing Director and Audit Committee.

The average market capitalisation rate of the investment property portfolio at 31 December 2013 was 7.98%(Industrial properties: 8.44%; Office properties: 7.51%) and at 31 December 2012 was 8.09% (Industrial properties: 8.59%; Office properties: 7.58%). These metrics exclude assets classified as held for sale or under development.

Reconciliation of the carrying amounts of investment properties at beginning and end of the current financial year is set out below:

Reconciliation of investment properties: Office Industrial 2013 2012$ 000 $ 000 $ 000 $ 000

Opening balance at 1 January 1,143,315 1,142,728 2,286,043 2,165,143Acquisition and development of investment properties 32,345 34,623 66,968 169,065Disposal of investment properties (794) (7,000) (7,794) (330)Transfer from / (to) investment properties held for sale - - - (114,000)Net movement in lease incentives (89) 505 416 12,705Net gains from fair value adjustments 15,967 26,283 42,250 53,460Closing balance at 31 December 1,190,744 1,197,139 2,387,883 2,286,043

Non-current assets pledged as securityNone of the properties are pledged as security for the Group s borrowings (2012: Nil).



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Amounts recognised in profit and loss for investment property:2013 2012$ 000 $ 000

Rental income (including recoverable outgoings) 234,203 213,613Direct operating expenses from property that generated rental income (44,384) (38,866)

189,819 174,747

Leasing arrangements

The investment properties are leased to tenants under long term operating leases. Rentals are receivable from thetenants monthly.

Minimum lease payments under non-cancellable operating leases of investment properties not recognised in the financial statements are receivable as follows:

2013 2012$ 000 $ 000

Within one year 178,718 167,562Later than one year but not later than 5 years 652,496 597,145Later than 5 years 467,390 449,354

1,298,604 1,214,061

9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in material joint ventures and associates

Set out below are the beneficial interests of the consolidated entity in material joint ventures and associates.Principal activities of the below entities were investment in income producing properties.

2013 2012 2013 2012% % $ 000 $ 000

Australand Wholesale Property Trust No. 61 - 27.9 - 38,111Australand Logistics Joint Venture 19.9 19.9 74,414 56,930Australand Retail Trust 50.0 50.0 8,161 7,868

82,575 102,9091 Investment in associate disposed of on 6 December 2013.

(a) Movement in the carrying amount of investments in joint ventures and associates

Carrying amount at the beginning of the financial year 102,909 72,495New capital invested 17,941 28,448Disposal of investment in associate (42,508) -Share of operating profit / (loss) before tax 12,949 7,058Distributions (8,716) (5,558)Share of movement in hedging reserves - 466Carrying amount at the end of the financial year 82,575 102,909


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9. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD (continued)

(b) Share of assets and liabilities in joint venture entities and associates2013 2012$ 000 $ 000

Current assets 4,902 2,604Non-current assets 78,088 127,619Total assets 82,990 130,223

Current liabilities (158) (2,195)Non-current liabilities (257) (25,119)Total liabilities (415) (27,314)

Net assets 82,575 102,909

(c) Share of revenues, expenses and results of joint venture entities and associates2013 2012$ 000 $ 000

Revenues* 18,131 12,219Expenses (5,182) (5,161)

Operating profit accounted for using the equity method 12,949 7,058

* Revenue includes share of investment property revaluation gain of $4,334,000 (2012: $362,000).

For all joint ventures and associates, the country of residence is Australia.

10. DERIVATIVE FINANCIAL INSTRUMENTS2013 2012$'000 $'000

Non-current assetsCross currency interest rate swaps fair value hedges 41,382 21,715Current liabilitiesInterest rate swap contracts - cash flow hedges (2,543) -Interest rate derivatives fair value through profit or loss (24,231) (33,764)Total current derivative financial instruments (26,774) (33,764)Non-current liabilitiesInterest rate swap contracts - cash flow hedges (53,936) (86,632)Interest rate derivatives fair value through profit or loss (3,124) (2,063)Total non-current derivative financial instruments (57,060) (88,695)Total derivative financial instruments (42,452) (100,744)

Derivative financial instruments are used by the consolidated entity to hedge exposure to interest rate riskassociated with movements in interest rates, and to foreign exchange risk associated with movements in the USdollar, which impact on the borrowings of the consolidated entity. Other interest rate derivatives such as callableswaps are used to manage the cost of funding.



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10. DERIVATIVE FINANCIAL INSTRUMENTS (continued)

Cross currency interest rate swaps

As at 31 December 2013, the consolidated entity had on issue US$170m of guaranteed senior notes through theUS Private Placement debt market (USPP). It is the consolidated entity's policy to fully protect debt sourcedoverseas from exposure to volatility in exchange rates. Accordingly, the Consolidated entity had entered into crosscurrency interest rate swap contracts, at the time the USPP was issued (May 2011), under which it is obliged topay interest at variable rates in Australian dollars (AUD) and to pay interest at fixed rates in United States dollars(USD). This debt is hedged by a combination of fair value and cash flow hedges.

The USD components of the cross currency interest rate swaps are structured to provide USD necessary to paythe semi annual coupons on the USPP to maturity. The settlement dates coincide with the dates on which interestis payable on the underlying debt. The AUD components of the cross currency interest rate swaps are paid on afloating rate basis every 90 days.

The fair value of the cross currency interest rate swaps at 31 December 2013 was a non-current asset of$41,382,000 (2012: $21,715,000), which offsets the fair value adjustments included in the carrying value of the USPrivate Placement borrowings (refer to Note 13).

Interest rate swap contracts

It is the consolidated entity s policy to protect an appropriate portion of interest bearing debt from exposure tovolatility in interest rates. Accordingly, the consolidated entity has entered into interest rate swap contracts underwhich it is obliged to receive interest at variable rates and to pay interest at fixed rates.

The contracts are settled on a net basis and the net amount receivable or payable at the reporting date is includedin other receivables or other payables. The contracts require settlement of net interest receivable or payable each90 days. The settlement dates coincide with the dates on which interest is payable on the underlying debt.

At 31 December 2013, including the impact of interest rate swaps, 94% (2012: 81%) of the gross debt outstandingwas at fixed interest rates. The fixed interest rates on swaps range between 3.0% and 6.7% (2012: 4.0% and6.7%).

At 31 December 2013, the notional principal amounts and periods of expiry of interest rate swap contracts(including forward swap contracts) and callable swaps are as follows:

2013$ 000

2012$ 000

Less than 1 year 560,000 450,0001 2 years 310,000 100,0002 3 years 250,000 400,0003 4 years 130,000 250,0004 5 years 200,000 130,000More than 5 years 480,000 480,000

1,930,000 1,810,000

The gain or loss from remeasuring the cash flow hedging instruments at fair value is recognised in othercomprehensive income and deferred in equity in the hedging reserve, to the extent that the hedge is effective, andreclassified into profit and loss when the hedged interest expense is recognised.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in theprofit or loss, together with any changes in the fair value of the hedged asset or liability that are attributable to thehedged risk.

The movement in the fair value of interest rate derivatives such as callable swaps which do not qualify as a hedgefor accounting purposes are recognised directly in the income statement. In addition, the ineffective portion of cashflow hedges is also recognised in the income statement. The total fair value amount recognised in the incomestatement for the year ended 31 December 2013 was a credit of $10,074,000 (2012: debit of $13,421,000).


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11. PAYABLES2013 2012

$ 000 $ 000Rents paid in advance 5,154 3,208

Accrued acquisition costs and accruals 7,282 6,302Trade creditors 13,077 9,477GST payable 2,342 2,297Accrued interest payable 6,904 6,549

34,759 27,833

12. PROVISIONS2013 2012$ 000 $ 000

Distributions payable 68,715 69,046Property provisions 2,500 3,000

71,215 72,046

Distributions payable2013 2012$ 000 $ 000

Reconciliation of the carrying amount of the distribution payable provision is set out below:

Carrying amount at beginning of financial year 69,046) 70,058Interim and final distributions provided for during the year ASSETS (Note 19) 21,061) 23,856Interim and final distributions provided for during the year others (Note 19) 128,222) 125,491Payments made during the year ASSETS (21,553) (26,337)Payments made during the year others (128,061) (124,022)Carrying amount at end of financial year 68,715 69,046

Property provisions

The provisions below relate to amounts recognised in relation to legal, property, lease and other expenditure where there is uncertainty regarding the timing or amount required to settle the obligation.

2013 2012$ 000 $ 000

Carrying amount at beginning of financial year 3,000 12,994(Credited) / charged to the income statement (500) (8,924)Utilised - (1,070)Carrying amount at end of financial year 2,500 3,000



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13. BORROWINGS2013 2012$'000 $'000

CurrentBank facilities unsecured 210,000 100,000Total current borrowings 210,000 100,000Non-currentBank facilities unsecured 675,000 1,065,000US Private Placement 203,992 187,889Total non-current borrowings 878,992 1,252,889

Total borrowings 1,088,992 1,352,889

Drawn amount Facility limitConsolidated Maturity 2013 2012 2013 2012

Security Date $'000 $'000 $'000 $'000Syndicated Facility Unsecured Sep-13 - 100,000 - 100,000Syndicated Facility Unsecured Jul-14 210,000 350,000 350,000 350,000Syndicated Facility Unsecured Sep-15 - 40,000 200,000 200,000Syndicated Facility Unsecured May-17 - - 200,000 200,000Syndicated Facility Unsecured Jan-15 303,750 303,750 303,750 303,750Syndicated Facility Unsecured Sep-16 371,250 371,250 371,250 371,250US Private Placement1 Unsecured May-21 168,015 154,692 168,015 154,692US Private Placement1 Unsecured May-23 35,977 33,197 35,977 33,197

1,088,992 1,352,889 1,628,992 1,712,8891. The drawn and facility limits associated with the US private placement include fair value adjustments of $41,382,000 (2012: $25,232,000).

The consolidated entity also had access to additional unsecured facilities at 31 December 2013, includingperformance bank guarantees of $76,850,000 (drawn $63,448,000) and financial bank guarantees of $15,150,000(drawn $1,198,000).

Details of the amounts utilised in relation to guarantees are included in Note 22.

There are no assets that have been pledged as security (2012: Nil)

Risk Exposures

Details of the consolidated entity s exposure to risks arising from borrowings are set out in Note 2.

Fair value disclosures

Details of the fair value of borrowings for the consolidated entity are set out in Note 21.


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14. OTHER LIABILITIES2013 2012$ 000 $ 000

Rental bonds 1,854 2,805

15. EQUITY

As the stapling of APT4 and APT5 occurred after the introduction of IFRS, APT has been identified as the acquirerand the results and equity of APT4 and APT5 are presented as non-controlling interest in the consolidated financialstatements on the basis that APT has not obtained direct ownership interest as a result of the stapling.

Whilst the results and equity of APT4 and APT5 are disclosed as non-controlling interest, the unitholders of APTare the same as the unitholders of APT4 and APT5.

2013 2012$ 000 $ 000

Capital and Reserves attributable to equity holders as:Equity holders of APTContributed equity (d) 1,166,991 1,164,703Reserves (a) (53,028) (83,378)Undistributed income (b) 123,737 46,552

Parent interest 1,237,700 1,127,877

Equity holders of other stapled entities APT4 and APT5 (non-controlling interest)Contributed equity (d) 380,741 379,856Reserves (a) (10,601) (10,601)Undistributed income (b) 85,949 71,142Non-controlling interest 456,089 440,397

Total equity holders interest 1,693,789 1,568,274

(a) ReservesCapital redemption reserve APT4 and APT5 (10,601) (10,601)Hedging reserve cash flow hedges (53,028) (83,378)Total reserves equity holders (63,629) (93,979)

Movements in above unitholders reserves comprise :(i) Hedging reserve cash flow hedges

Balance 1 January (83,378) (43,850)

Share of changes in the fair value of hedges of joint ventures and associates - 466Changes in fair value of cash flow hedges 30,350 (39,994)Balance 31 December (53,028) (83,378)



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15. EQUITY (continued)2013 2012

$ 000 $ 000

(b) Undistributed income $ 000 $ 000Equity holders of APT-Undistributed income 123,737 46,552Other stapled entities- Australand Property Trust No. 4: undistributed income 71,783 60,915- Australand Property Trust No. 5: undistributed income 14,166 10,227

85,949 71,142Total equity holders interest in undistributed income 209,686 117,694Movements in above total unitholders comprises:Balance 1 January 117,694 21,827Net profit attributable to the equity holders of the Australand Property Trust Group 216,332 219,889Distributions (124,340) (124,022)Balance 31 December 209,686 117,694

(c) Nature and purpose of reserves

Capital redemption reserveThe capital redemption reserve arises in APT4 and APT5 as a result of the redemption of units upon stapling withAHL and APT.

Hedging reserve cashflow hedgesThe hedging reserve is used to record gains or losses on a hedging instrument in a cash flow hedge that arerecognised in other comprehensive income, as described in Note 1(o). Amounts are recognised in profit and losswhen the associated hedged transaction affects profit and loss.

(d) Contributed Equity 2013$ 000

2012$ 000

578,324,670 units, fully paid (2012: 576,846,597 units) 1,547,732 1,544,559

Movements in units 2013

DetailsNumber of securities

Issue price$ $'000

Balance at beginning of financial year 576,629,615 1,544,559Securities issued during the period 1,478,073 2.15 3,173Balance at end of financial year 578,107,688 1,547,732

Balance at end of financial year is attributable to:Equity holders of APT 1,166,991Equity holders of other stapled entities (APT4 and APT5) 380,741Total contributed equity 1,547,732

1 The total number of securities at 31 December 2013 is 578,324,670. The difference relates to securities held in trust to satisfy futureperformance rights plans.


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15. EQUITY (continued)

(d) Contributed Equity (continued)


DetailsNumber of securities

Issue price$ $'000

Balance at beginning of financial year 576,629,615 1,544,582ESOP (Employee Securities Option Plan) - - (23)Balance at end of financial year1 576,629,615 1,544,559

Balance at end of financial year is attributable to:Equity holders of AHL and APT 1,164,703Equity holders of other stapled entities (APT4 and APT5) 379,856Total contributed equity 1,544,559

1. The total number of securities at 31 December 2012 is 576,846,597. The difference relates to securities held in trust to satisfy futureperformance rights plans.

(e) Units

Stapled securities entitle the holder to receive distributions and the proceeds on any winding up of the consolidated entity in proportion to the number of and amounts paid on the stapled securities held. On a show of hands, everyholder of stapled securities present at a meeting of stapled security holders in person or by proxy, is entitled to one vote, and upon a poll each stapled security is entitled to one vote.

16. ASSETS HYBRID EQUITY AND OTHER NON-CONTROLLING INTERESTS

Movements in hybrid equity and other non-controlling interests 2013 2012

$ 000 $ 000

Opening balance 326,880 324,387Profit attributed to assets hybrid and other non-controlling interests 25,818 27,798Distributions paid and provided to Australand Holdings Limited (3,882) (1,449)Distributions paid and provided to ASSETS Hybrid equity holders (21,061) (23,856)Closing balance 327,755 326,880

Represented by:Interest in issued units 47,161 47,161Interest in undistributed income 11,936 11,061Interest in ASSETS 268,658 268,658

327,755 326,880

ASSETS hybrid equity relates to the contributed equity in the Australand ASSETS Trust . ASSETS are perpetualinstruments that can be redeemed by the Group at any time. These instruments attract a distribution rate of 4.80%above the three month bank bill swap reference rate on the first business day of the March, June, September andDecember quarters.

Other non-controlling interest in controlled entities represents Australand Holdings Limited s equity holding inAustraland Wholesale Property Trust, Australand Wholesale Property Trust No. 2, Australand Wholesale Property Trust No. 3, Australand Property Trust No. 4 and Australand Property Trust No. 5. It also includes non-controllinginterest in Australand ASSETS Trust.



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17. EARNINGS PER UNIT

Consolidated (including APT, APT 4 and APT 5)

Australand Property Trust

2013 2012 2013 2012Basic and diluted earnings per unit 37.4 cents 38.1 cents 30.2 cents 27.0 centsa) Reconciliation of earnings used in calculating earnings per unit

Basic and diluted earnings per unit $000 s $000 s $000 s $000 sNet profit after tax 216,332 219,889 174,457 155,874Earnings used in calculating basic and diluted earnings per unit 216,332 219,889 174,457 155,874

b) Weighted average number of units used2013Units

2012Units

Consolidated and parentWeighted average number of ordinary units used as the denominator in calculating basic and diluted earnings per unit 578,069,551 576,846,597

18. INVESTMENTS IN CONTROLLED ENTITIES

Set out below are the material controlled entities to which these consolidated financial statements relate. The beneficial interest in the material entities is listed below. All entities were incorporated in Australia.Particulars in relation to material controlled entities Equity Holding

Controlled entities2013 2012

% %

111 Darlinghurst Road Unit Trust 100% 100%

APT (Northgate No.1) Trust 100% 100%

APT (Beverley No. 1) Trust 100% 100%APT Baulkham Hills no. 1 Unit Trust 100% 100%

APT Clayton South No. 1 Unit Trust 100% 100%

APT (Collins St No. 1) Trust 100% 100%APT (Derrimut No.2 ) Unit Trust 100% 100%

APT (Eastern Creek No.5) Unit Trust (a) 100% -

APT (Inala/Richlands No.1) Trust 100% 100%APT (Keysborough No.1) Unit Trust 100% 100%

APT (Keysborough No.2) Unit Trust 100% 100%

APT NSW Commercial Units Trust 100% 100%APT Rhodes No.1 Unit Trust 100% 100%

APT Seven Hills No. 2 Unit Trust 100% 100%

APT Seven Hills No. 5 Unit Trust 100% 100%APT Spring Hill No. 1 Unit Trust 100% 100%

APT Sub-trust No. 11 100% 100%

APT Sub-trust No. 12 100% 100%APT Sub-trust No. 13 100% 100%


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18. INVESTMENTS IN CONTROLLED ENTITIES (continued)

Equity Holding2013 2012

Controlled entities % %

APT Sub-trust No. 14 100% 100%

APT Sub-trust No. 15 100% 100%APT Tullamarine No. 1 Unit Trust 100% 100%

Australand APT Holdings Campbellfield No.1 Trust 100% 100%

Australand Cambridge St. Unit Trust 100% 100%Australand Car Park Trust 100% 100%

Australand Industrial No.101 Trust (No.2) 100% 100%

Australand Industrial No.101 Trust (No.3) 100% 100%Australand Industrial No.101 Trust 100% 100%

Australand Industrial No.155 Unit Trust 100% 100%

Australand Jets Court Spec Unit Trust 100% 100%Australand Jets Court Spec Unit Trust (No. 2) 100% 100%

Australand Parkinson Trust 100% 100%Australand Port Melbourne Unit Trust 100% 100%

Australand Sovereign Hotel Unit Trust 100% 100%

Australand Wholesale Property Trust 92% 92%Australand Wholesale Property Trust No. 2 93% 93%

Australand Wholesale Property Trust No. 3 95% 95%

AWPT3 Greystanes Holding Trust No.1 100% 100%AWPT3 Greystanes Holding Trust No.2 100% 100%

AWPT5 Holding Trust No.3 100% 100%AWPT5 Holding Trust No.5 100% 100%AWPT5 Holding Trust No.6 100% 100%Berwick Retail Trust 100% 100%Burbridge Park Industrial Trust B 100% 100%Burbridge Park Industrial Trust C 100% 100%Burbridge Park Industrial Trust D 100% 100%Civic Tower Trust 100% 100%Eastern Creek Investment Trust No.2 100% 100%Freshwater Office Trust No. 2 100% 100%Greystanes No. 1 Unit Trust 100% 100%Greystanes No. 2 Unit Trust 100% 100%Healesville Retail Trust 100% 100%Henry Deane Building Trust 100% 100%Horrie Miller Drive Unit Trust 100% 100%Huntingwood Trust 100% 100%Industrial Project No.2 Unit Trust 100% 100%Industrial Project No.3 Unit Trust 100% 100%Industrial Project No.4 Unit Trust 100% 100%Mascot No 1 Unit Trust 100% 100%No.9 Stradbroke Street Unit Trust 100% 100%Platinum Street Trust 100% 100%Queensport Road Unit Trust 100% 100%



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18. INVESTMENTS IN CONTROLLED ENTITIES (continued)Equity Holding

2013 2012Controlled entities % %Rhodes No. 8 Unit Trust 100% 100%Rhodes No. 9 Unit Trust 100% 100%Shettleston Street Trust 100% 100%Smeaton Grange Trust 100% 100%South Park Industrial Trust A 100% 100%South Park Industrial Trust B 100% 100%South park Investment Trust 100% 100%South Park No. 116 Trust (No.1) 100% 100%South Park No.125 Trust 100% 100%South Park Unit Trust 100% 100%Stanton Road No. 1 Unit Trust 100% 100%Stanton Road No.2 Unit Trust 100% 100%The Gateway Building Trust 100% 100%Trade Street Unit Trust 100% 100%Tullamarine No.1 Unit Trust 100% 100%Twenty8 Freshwater Place Unit Trust 100% 100%Walters Road Unit Trust 100% 100%West Park Industrial Trust A 100% 100%West Park No. 116 Trust (No.1) 100% 100%West Park No. 118 Trust 100% 100%(a) Entity created during the year.

19. DISTRIBUTIONS

Payment per unit (cents)

Totalamount

$ 000 Date of payment2013Interim distribution for 2013 10.5 cents 60,724 7 August 2013Final distribution for 2013 11.0 cents 63,616 7 February 2014Total APT Group distribution 124,340Distribution to AHL non controlling Interest 3,882ASSETS distribution 21,061Total 2013 distribution 149,283

2012Interim distribution for 2012 10.5 cents 60,569 7 August 2012Final distribution for 2012 11.0 cents 63,453 8 February 2013Total APT Group distribution 124,022Distribution to AHL non controlling Interest 1,449ASSETS distribution 23,856Total 2012 distribution 149,327

The Australand Dividend/Distribution Reinvestment Plan (DRP) is currently suspended.


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20. CASH FLOW INFORMATION

(a) Reconciliation of cashFor the purpose of the cash flow statements, cash includes cash on hand and bank and short term deposits at call. Cash as at the end of the financial year as shown in the cash flow statements is reconciled to the related items inthe balance sheets as follows:

2013 2012

$ 000 $ 000

Cash 12,889 11,730

(b) Reconciliation of profit after income tax to net cash inflow from operating activities

2013 2012$ 000 $ 000

Net profit/(loss) for the year 242,150 247,687

Net gains from fair value adjustments on investment property (42,250) (53,460)Share of net profits of joint ventures and associates not received as dividends (4,233) (1,500)Amortisation of lease incentives 4,245 3,562Interest expense capitalised (815) (15,621)Unrealised (gains) / losses on interest rate derivatives (11,839) 9,579

Change in operating assets and liabilities during the financial year:Decrease in receivables 38 381Decrease in other assets 1,247 5,056Increase in payables 6,926 861(Decrease) / increase in other non-current liabilities (951) 35Decrease in provisions (500) (2,843)

Net cash inflows provided by operating activities 194,018 193,737



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21. FINANCIAL INSTRUMENTS DISCLOSURE(a) Credit risk exposuresThe carrying amounts of financial assets included in the consolidated balance sheet represent the consolidatedentity's exposure to credit risk in relation to these assets.

(b) Interest rate riskThese risks are now managed centrally for Australand Property Group, including Australand Property Trust and its controlled entities. Further details of the policies for managing financial risks are included in Note 2.

(c) Interest rate risk exposuresThe consolidated entity's exposure to interest rate risk and the effective weighted average interest rates for eachclass of financial asset and financial liability are:

Floatinginterest rate

$ 000

Fixedinterest

maturing in1 year or less

$ 000

Fixedinterest

maturing in1 to 5 years

$ 000

Fixed interest maturing inmore than 5

years$ 000

Noninterestbearing

$ 000 Total $ 000

2013Financial assetsCash and cash equivalents 12,889 - - - - 12,889Receivables 0 - 771,167 - 1,379 772,546Total financial assets 12,889 - 771,167 - 1,379 785,435Weighted average interest rate 1.1%Financial liabilitiesSyndicated facility 2011 (675,000) - - - - (675,000)Syndicated facility 2012 (210,000) - - - - (210,000)USD Senior Notes (203,992) - - - - (203,992)

Payables - - - - (34,759) (34,759)Other non-current liabilities (1,854) - - - - (1,854)Interest rate derivatives (notional principal amounts excluding forward swap contracts)** 1,730,000 (560,000) (890,000) (280,000) - -Total financial liabilities 639,154 (560,000) (890,000) (280,000) (34,759) (1,125,605)Weighted average interest rate* 7.30%

Net financial assets/(liabilities) 652,043 (560,000) (118,833) (280,000) (33,380) (340,170)

2012Financial assetsCash and cash equivalents 11,730 - - - - 11,730

Receivables 9 - 929,202 - 1,408 930,619

Total financial assets 11,739 - 929,202 - 1,408 942,349

Weighted average interest rate 3%Financial liabilitiesSyndicated facility 2010 (675,000) - - - - (675,000)Syndicated facility 2011 (490,000) (490,000)USD Senior Notes (187,889) - - - - (187,889)

Payables - - - - (27,833) (27,833)Other non-current liabilities (2,805) - - - - (2,805)Interest rate derivatives (notional principal amounts excluding forward swap contracts)** 1,717,889 (450,000) (880,000) (387,889) - -

Total financial liabilities 362,195 (450,000) (880,000) (387,889) (27,833) (1,383,527)

Weighted average interest rate* 7.43%

Net financial assets/(liabilities) 373,934 (450,000) 49,202 (387,889) (26,425) (441,178)* Weighted average interest rates include the effect of interest rate swaps.** Based on the maturity of current swaps (excludes the impact of forward start interest rate swaps).^ Includes derivatives against ASSETS hybrid equity (recognised as equity in the balance sheet) and callable swaps.


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21. FINANCIAL INSTRUMENTS DISCLOSURE (continued)

(d) Net fair values The consolidated entity s financial assets and liabilities are stated at cost and these assets are not traded in anorganised financial market.

Carrying amounts of other debtors, amounts owing by Australand Holdings Limited and other related entities, otherfinancial assets, payables and bank loans are stated at cost as the carrying values approximate to net fair values.

The valuation of financial instruments recognised on the consolidated balance sheet reflects the estimatedamounts, which the consolidated entity expects to pay or receive to terminate the contracts, or replace thecontracts at their current market rates as at the reporting date. The net fair value recognised on the consolidatedbalance sheet in relation to interest rate derivatives and cross currency interest rate swaps held at 31 December2013 was a liability of $83,815,000 (2012: 122,459,000) and an asset of $41,382,000 (2012: 21,715.000).

e) Summarised interest rate sensitivity analysisThe table below illustrates the potential impact a change in interest rates by +/-1% would have had on the Trust sprofit and equity.

-1% +1%

Consolidated

Carryingamount Profit Equity Profit Equity

$ 000 $ 000 $ 000 $ 000 $ 000

2013Financial assetsCash and cash equivalents 12,889 (129) - 129 -Financial liabilitiesBorrowings (1,088,992) 10,476 10,476 (10,476) (10,476)Derivative financial instruments (83,834) (14,091) (32,278) 13,270 25,097Total increase / (decrease) (3,744) (21,802) 2,923 14,621

2012Financial assetsCash and cash equivalents 11,730 (117) - 117 -Financial liabilitiesBorrowings (1,352,889) 13,276 13,276 (13,276) (13,276)Derivative financial instruments (122,459) (38,001) (69,534) 26,450 57,285Total increase / (decrease) (24,842) (56,258) 13,291 44,009

Based upon a 100 (2012: 100) basis point increase or decrease in Australian interest rates, the impact on profitafter tax has been calculated taking into account all underlying exposures and related derivatives. This sensitivityhas been selected as this is considered reasonable given the current level of both short term and long term interest rates.



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22. CONTINGENCIES

Details and estimated maximum amounts of contingent liabilities (for which no amounts are recognised in thefinancial statements) are as follows:

a) The consolidated entity has given indemnities for land development contract performance in the form of bankguarantees. Details and estimated maximum amounts of contingent liabilities (for which no amounts arerecognised in the financial statements) are as follows:

2013$'000

2012$'000

Performance bank guarantees outstanding 63,448 36,158Financial bank guarantees 1,198 1,553

64,646 37,711

b) The Australian Taxation Office (ATO) periodically reviews and queries the taxation treatment of varioustransactions, which could result in additional tax being levied. The Group is currently in discussions with theATO in relation to inter-entity fees received by APT during the tax years ending 30 June 2007 and 2008. TheATO contends that the inter-entity fees during these years causes APT to be a trading trust under Division 6C of the Income Tax Assessment Act (the Act). No assessments have been issued and no additional taxes havebeen levied and it is unlikely any obligation in relation to this matter would exceed $20 million. The Groupremains of the view that past taxation treatments were sound and in accordance with the Act and, accordingly,the Group will continue to defend its position.

23. SEGMENT INFORMATION

The consolidated entity derives all income from investment in properties, which are located in Australia. Theconsolidated entity is deemed to only have one operating segment, and this is consistent with the reporting reviewed by Executive Management Team.

24. DIRECTORS AND OTHER KEY MANAGEMENT PERSONNEL DISCLOSURES

(a) Directors

The following persons were directors of Australand Holdings Limited (AHL), Australand Property Limited (APL) (asthe responsible entity of Australand Property Trust and Australand ASSETS Trust) and Australand InvestmentsLimited (AIL) (as the responsible entity of Australand Property Trust No. 4 and Australand Property Trust No. 5)during the financial year.

Olivier Lim (Chairman)

Paul Dean Isherwood, AO (Deputy Chairman and Lead Independent Director)

Robert William Johnston (Managing Director)Beth May LaughtonLui Chong Chee

Nancy Jane Milne, OAMStephen Eric NewtonRobert Edward Prosser


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24. DIRECTORS AND OTHER KEY MANAGEMENT PERSONNEL DISCLOSURES (continued)

(b) Other key management personnel

The following persons also had authority and responsibility for planning, directing and controlling the activities ofAustraland, directly or indirectly, during the financial year: Name Role Date of AppointmentSean McMahon Executive General Manager, Commercial and Industrial 1 January 2008Kieran Pryke Chief Financial Officer 1 March 2010Rod Fehring Executive General Manager, Residential 22 March 2010

(c) Directors and other key management personnel compensation2013

$2012

$Short term employee benefits 6,630,892 6,499,727Post employment benefits 165,091 202,230Other long term employee benefits 58,218 58,085Security based payments 629,832 771,560TOTAL 7,484,033 7,531,602

All of the above benefits are paid by Australand Property Group Pty Limited and are in relation to the management of the Australand Group as a whole and not this specific entity.

25. NON-DIRECTOR RELATED PARTY TRANSACTIONS

(a) Controlling entities

Australand Property Group ( Group ) comprises Australand Holdings Limited, Australand Property Trust, Australand Property Trust No.4 and Australand Property Trust No.5 and their respective controlled entities.

During year ended 31 December 2013, CapitaLand Limited conducted a selldown of part of its holdings in theGroup. CapitaLand s ownership as at 31 December 2013 was 39.1% of the Group, compared to 59.1% prior to theselldown.

(b) Key management personnel

Disclosures relating to key management personnel are set out in Note 24.

(c) Transactions with related parties

Transactions with related parties are conducted in the normal course of business under normal terms andconditions.

2013$ 000

2012$ 000

Loan interest income received from Australand Holdings Limited 98,665 124,408Management fees paid to Australand Holdings Limited (5,060) (4,745)Interest paid or payable to ASSETS (21,553) (24,267)Receivable from Australand Holdings Limited 771,167 929,202Sale of investment property to associate - 72,065Payments for acquistion and development of investment properties toAustraland Holdings Limited 58,375 154,919

(d) Ownership interests in entities in the wholly owned group and other related parties

Interests in controlled entities are set out in Note18.




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26. PARENT ENTITY FINANCIAL INFORMATION

(a) Summary financial information

The individual financial statements for the parent entity show the following aggregate amounts.

Balance sheet2013 2012$'000 $'000

Current assets 218,387 210,253Total assets 2,857,377 3,015,339Current liabilities (294,959) (152,678)Total liabilities (1,632,050) (1,865,921)Net Assets 1,225,327 1,149,418

Shareholders equityIssued capital 1,179,706 1,177,418Reserves (53,028) (83,378)Undistributed income 98,649 55,378Total Equity 1,225,327 1,149,418

Profit or loss for the year 140,543 130,526

Total comprehensive income 170,893 90,532

Refer to Note 22 for details of guarantees given by the parent entity.

(b) Contingent liabilities of the parent entity

The contingent liabilities of the parent entity are the same as the consolidated entity as disclosed in Note 22.

(c) Contractual commitments

The parent entity had no contractual commitments at 31 December 2013 (2012: Nil).

27. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Other than the refinancing set out in Note 1(a), there have been no significant events or transactions that havearisen since the end of the financial year, which in the opinion of the directors, would affect significantly theoperations of the consolidated entity, the results of those operations, or the state of affairs of the consolidatedentity.


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DIRECTORS DECLARATIONFOR THE YEAR ENDED 31 DECEMBER 2013In the directors opinion:

a) the financial statements and notes set out on pages 13 to 53 are in accordance with the Corporations Act 2001,including:

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

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

b) there are reasonable grounds to believe that the Trust will be able to pay its debts as and when they becomedue and payable.

This declaration is made in accordance with a resolution of the directors of Australand Property Limited as theResponsible Entity of Australand Property Trust.

Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards asissued by the International Accounting Standards Board.



Bob JohnstonManaging Director



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AustralandProperty Trust No.4Financial Report 31 December 2013ARSN 108 254 413


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The Directors of Australand Investments Limited (ABN 12 086 673 092) ( Responsible Entity ) as the ResponsibleEntity of Australand Property Trust No.4 ( Trust ) present their report, together with the consolidated financial report of the consolidated entity, being the Trust and its controlled entities, for the financial year ended 31 December2013, and the Independent Auditor s Report thereon.

The Responsible Entity of the Trust is an entity incorporated in New South Wales. The parent entity of theResponsible Entity is Australand Holdings Limited (ABN 12 008 443 696).

DIRECTORS

The following persons were Directors of the Responsible Entity during the year ended 31 December 2013 and up to the date of this report:


The names, qualifications and experience of each person holding the position of director of the Responsible Entityat the date of this Report are:



Independent:No


Skills and experience:Appointed Group Deputy CEO of Capitaland Limited on 3 January 2013. Held the position of Chief InvestmentOfficer between February 2012 and January 2013 and was Head of Strategic Corporate Development from August2011 up until his appointment as Chief Investment Officer. He was Group Chief Financial Officer of CapitaLandLimited between July 2005 and July 2011 and, prior to that, was Deputy Chief Financial Officer. He first joinedCapitaLand as Senior Vice President, Corporate Finance in September 2003. Prior to joining the CapitaLandGroup, he was Director and Head of Real Estate Unit, Corporate Banking in Citibank, Singapore. He joinedCitibank in Singapore in August 1989.

Directorships of listed entities within the last three years include:Director of CapitaMalls Asia Limited (appointed 1 July 2005) Formerly a director of Raffles Medical Group Limited (appointed 1 October 2009, resigned 29 June2013)Formerly a director of Neptune Orient Lines Limited (appointed 12 April 2012, resigned 16September 2013)Formerly a director CapitaMall Trust Management Limited (the manager of a listed REIT inSingapore) (appointed 1 July 2005, resigned 1 November 2012) Formerly a director of CapitaCommercial Trust Management Limited (the manager of a listed REITin Singapore) (appointed 1 July 2005, resigned 1 January 2013)



Australand Property Trust No.4 and its controlled entities F

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Term of Office:Non-Executive Director since 15 December 2005. Appointed Deputy Chairman and Lead Independent Director on 1 January 2011. Mr Isherwood was re-elected at the 2012 Annual and General Meetings.

Independent:Yes

Board Committee membership:Chair of the Audit Committee and the Remuneration & Nomination Committee, Member of the Investment Committee.

Skills and experience:An experienced company director with a strong finance and accounting background. Proven leadership experiencefrom a career with Coopers & Lybrand that spanned 38 years. Held the position of National Chairman andManaging Partner of Coopers & Lybrand (Australia) from 1985 to 1994. Served on the International Board andExecutive Committee of the firm from 1985 to 1994. Has extensive corporate governance experience acrossdifferent industry sectors, and mostly with listed companies.




Term of Office:Managing Director since 1 August 2007. In accordance with the Company s Constitution, the Managing Director isexempt from retirement by rotation in accordance with clause 12.28.

Independent:No


Skills and experience:Mr Johnston was appointed Managing Director of Australand in August 2007 and has extensive experience in theproperty sector. He has been involved in all facets of the sector including Funds Management, PropertyDevelopment, Project Management and Construction. Prior to joining Australand, Mr Johnston spent 20 years withthe Lend Lease Group in various roles in Australia, Asia, US and the UK.




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Term of Office:Non-Executive Director since 7 May 2012. Ms Laughton was elected at the 2013 Annual and General Meetings.

Independent:Yes


Skills and experience:Ms Laughton is a chartered accountant with a strong background in corporate finance, having held senior roles atWilson HTM, TMT Partners, KPMG, HSBC Securities and Ord Minnett, where she provided merger and acquisitionadvice and arranged equity funding across a range of industries.




Term of Office:Non-Executive Director since 11 December 2001 and Chairman from 1 June 2007 until 14 April 2011. Mr Lui was re-elected at the 2012 Annual and General Meetings.

Independent:Yes


Skills and experience:Currently Chief Financial Officer of Raffles Medical Group Limited. He previously held the position of CEO,CapitaLand Financial Limited up until his resignation on 31 May 2010. During his time with CapitaLand Limited, heheld a succession of senior financial and operational management positions across the Group. Prior to joining theCapitaLand Group, he was Managing Director of Citicorp Investment Bank (Singapore) Limited. He joined Citibank, Singapore in July 1986.






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Term of Office:Non-Executive Director since 1 October 2010. Ms Milne was last elected at the 2011 Annual and General Meetings and, in accordance with Australand s Constitution, is retiring by rotation and standing for re-election in 2014.

Independent:Yes


Skills and experience:An experienced company director with extensive business experience. A consultant at Clayton Utz, (formerly aSenior Partner of the firm) specialising in the areas of insurance and risk. Previously a member and Chairperson of Australand s Risk & Compliance Committee from 2003 until April 2009.

Directorships of listed entities within the last three years include:Director of Crowe Horwath Australasia Ltd (appointed 28 November 2013) Director of Commonwealth Property Office Fund (appointed 1 January 2009) Director of CFS Retail Property Trust Group (appointed 1 January 2009)



Term of Office:Non-Executive Director since 18 December 2007. Mr Newton was re-elected at the 2013 Annual and General Meetings.

Independent:Yes


Skills and experience:An experienced company director in the real estate and infrastructure sectors. Currently Joint Managing Directorand co-founder of Arcadia Funds Management Limited. Prior to establishing the Arcadia Group in December 2002,he was a senior executive with the Lend Lease Group, a member of its global senior executive management groupand a director of a number of Lend Lease entities and managed funds (November 1980 to December 2002). Hasover thirty years experience in the real estate sector both in Australia and internationally with extensive involvement in all aspects of asset management, development management, real estate investment management and mergers,acquisitions and dispositions of publicly listed and private (wholesale) real estate investment trusts and companies.



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Other current Directorships / Offices: Director of Newcastle Airport Limited (resigned 29 November 2013)Advisory Board Member representing Alberta Investment Management Corporation (Canada) forForestry Investment TrustDirector of Broadcast Australia Group Director of Athllon Trustees Pty LimitedDirector of University of Notre Dame Australia Member of the Finance Committee and Property Committee for the Catholic Archdiocese ofSydney


Term of Office:Non-Executive Director since 9 February 2011. Mr Prosser was last elected at the 2011 Annual and GeneralMeetings and, in accordance with Australand s Constitution, is retiring by rotation and standing for re-election in2014.

Independent:Yes


Skills and experience:Mr Prosser has a strong finance and accounting background having retired in June 2008 as aPricewaterhouseCoopers ( PwC ) Partner in Sydney where he was responsible for due diligence in relation tomergers, acquisitions, equity raisings and divestments. At the time of his resignation, he was chair of PwC s publicreports panel, with responsibility for the quality control of all public documents and liaison with regulators.



COMPANY SECRETARIESCompany secretaries of the Board in office at the date of this report, and each company secretary s experience andqualifications are as shown below.



Ms Booker joined Australand as Group Company Secretary in October 2006. Her previous positions includedGroup Company Secretary / General Manager Risk & Compliance for the Australian Agricultural Company Limitedand Group Company Secretary of AMP Limited. Ms Booker has over 25 years experience across a wide range ofbusiness areas including governance, compliance, risk management and strategic and operational planning.




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Mr Newsom was appointed a Company Secretary the Responsible Entity on 29 January 2004 and acts asCompany Secretary in Ms Booker s absence.

Mr Newsom joined Australand in August 2000 as General Counsel. Prior to joining Australand, Mr Newsom heldpositions of Company Secretary and General Counsel for Pioneer International Limited and Ampol Limited. He hasover 30 years experience in commercial and corporate law, dispute resolution, capital markets, mergers andacquisitions and corporate administration both in private legal practice and in large publicly listed companies acrossthe property, building materials, petroleum and financial services sectors.


The number of meetings of directors (including committee meetings) held during the year and the number ofmeetings attended by each director or committee member is as follows:

Director BoardAudit



Committee



Notes:1. Figures in brackets indicate the number of meetings held during the time the director held office or was a member of the Board or the BoardCommittee during the year.2. There were 3 Board Sub-Committee meetings held during the year in addition to the meetings shown in the above table.3. Mr. Johnston is a member of the Investment Committee and attends all other Committee meetings by invitation.4. One Independent Board Committee meeting was held during the year.


Since 31 December 2012, no director or an associate of a director, has received or become entitled to receive abenefit (other than a benefit included in the total amount of emoluments received or due and receivable by directors or their associates shown in the consolidated financial statements) because of a contract that the director, or a firmof which the director is a member, or an entity in which the director has a substantial interest has made (during that, or any other, financial year) with Australand Property Trust No.4 or an entity that Australand Property Trust No.4controlled, or a body corporate that was related to Australand Property Trust No.4 when the contract was made orwhen the director or associate received or became entitled to receive the benefit.


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The principal activity of the Trust is investment in income producing commercial and industrial properties withinAustralia.

The Responsible Entity holds an Australian Financial Services Licence (No. 228837) issued pursuant to section913B of the Corporations Act 2001 and the Trust is registered as a Managed Investment Scheme.


The net profit of the consolidated entity for the year ended 31 December 2013 was $30,079,000 (2012: net profit of$51,857,000). The investment property portfolio comprises 4 properties with an aggregate value of $335,200,000(2012: $329,100,000).


There were no significant changes in the state of affairs of Australand Property Trust No.4 during the financial year.


There have been no significant events or transactions that have arisen since the end of the financial year, which inthe opinion of the directors, would affect significantly the operations of the consolidated entity, the results of thoseoperations, or the state of affairs of the consolidated entity.


The consolidated entity will benefit from fixed rental growth across the majority of portfolio s leases, however theportfolio also has some lease expires in 2014.


The consolidated entity, as owner of properties in the Trust, regularly monitors its environmental exposures toensure that it has complied with environmental regulations. The directors are not aware of any material breaches of environmental regulations during the year covered by this report.

DISTRIBUTIONS

Distributions paid or declared by the directors since the end of the previous financial year were:

TypeDistributions per

unitTotal amount

$ 000 Date of payment

Final for 2012 2.50 cents 14,421 8 February 2013

Interim for 2013 1.30 cents 7,999 7 August 2013

Final for 2013 1.83 cents 10,793 7 February 2014

The Record Date to determine entitlements to the final 2013 distribution was 5.00pm, 31 December 2013. The final 2013 distribution of 1.83 cents per unit was paid on 7 February 2014.




Australand Investments Limited in its capacity as the Responsible Entity of Australand Property Trust No.4 hasexecuted deeds of access, insurance and indemnity in terms of Clause 19 in favour of each director ofthe Company.




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NON-AUDIT SERVICES

Details of the services undertaken by the Trust s external auditor, PricewaterhouseCoopers, including the amountspaid or payable to the external auditor for non-audit services, are set out below and in Note 3 to the financialstatements.

2013 2012$ $


No non-audit services were provided by PricewaterhouseCoopers during the year to 31 December 2013 (2012: Nonon-audit service).


A copy of the auditor s independence declaration as required under section 307C of the Corporations Act 2001 isset out on page 66.

AUDITOR


ROUNDING OF AMOUNTS

The Trust and its controlled entities are entities of the kind referred to in Class Order 98/100 issued by theAustralian Securities and Investments Commission, relating to the rounding of amounts in the directors report.Amounts in the directors report have been rounded off in accordance with that Class Order to the nearestthousand dollars, or in certain cases, to the nearest dollar.




Bob Johnston


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Notes

2013 2012$ 000 $ 000

Rental income 26,223 24,875Recoverable outgoings 6,513 6,721Interest income 287 1,907Total revenue 33,023 33,503

Rates, taxes and other property outgoings 6 (6,772) (6,749)Interest expense (44) (45)Trust management fees (662) (633)Professional fees (9) (62)Total expenses (7,487) (7,489)

Amortisation of lease incentives (1,343) (1,128)Net gains from fair value adjustments on investment property 6 5,886 26,971Net profit for the financial year 30,079 51,857

Other comprehensive income - -Total comprehensive income for the financial year 30,079 51,857

Earnings per unitBasic and diluted earnings per unit 13 5.1 cents 8.8 cents




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Notes2013 2012$ 000 $ 000

Current assetsCash and cash equivalents 15(a) 3,238 2,435Receivables 4 178 204Other assets 5 116 170

Total current assets 3,532 2,809

Non-current assetsReceivables 4 6,950 4,127Investment properties 6 335,200 329,100Other assets 5 656 654Total non-current assets 342,806 333,881

Total assets 346,338 336,690

Current liabilitiesPayables 8 5,142 3,788Provisions 9 10,793 14,421Total current liabilities 15,935 18,209

Total liabilities 15,935 18,209

Net assets 330,403 318,481

EquityContributed equity 10 264,502 263,867Reserves 11 (6,301) (6,301)Undistributed income 12 72,202 60,915Total equity 330,403 318,481





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2013 2012$ 000 $ 000

Cash flows from operating activitiesReceipts from customers 32,762 31,449Payments to suppliers (6,037) (8,133)Interest received 287 134Interest paid (44) (45)Net cash inflow from operating activities 15(b) 26,968 23,405

Cash flows from investing activitiesPayments for acquisition and improvement of investment properties or properties under development (1,557) (4,407)Net cash outflow from investing activities (1,557) (4,407)

Cash flows from financing activitiesProceeds from issue of units 635 (5)Advances provided to related party (2,823) (4,127)Distributions paid (22,420) (15,083)Net cash outflow from financing activities (24,608) (19,215)

Net (decrease) / increase in cash 803 (217)Cash at the beginning of the financial year 2,435 2,652Cash at the end of the financial year 15(a) 3,238 2,435




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31 December 2013 $ 000 $ 000 $ 000 $ 000

Balance at 1 January 263,867 (6,301) 60,915 318,481

Net profit for the year - - 30,079 30,079Other comprehensive income - - - -

Total comprehensive income for the year - - 30,079 30,079

Transactions with unitholders in their capacity as owners:Contributions of equity, net of transaction costs 635 - - 635Distributions provided for or paid (Note 14) - - (18,792) (18,792)Balance at 31 December 264,502 (6,301) 72,202 330,403

31 December 2012

Balance at 1 January 263,872 (6,301) 31,294 288,865Net profit for the year - - 51,857 51,857Other comprehensive income - - - -


Transactions with unitholders in their capacity as owners:Contributions of equity, net of transaction costs (5) - - (5)Distributions provided for or paid (Note 14) - - (22,236) (22,236)Balance at 31 December 263,867 (6,301) 60,915 318,481





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The significant accounting policies adopted in the preparation of the consolidated financial report are set outbelow. These policies have been consistently applied to all the years presented, unless otherwise stated. Thefinancial report includes financial statements for the consolidated entity consisting of Australand Property TrustNo. 4 ( the Trust or APT4 ) and its subsidiaries and controlled entities as defined in Note 1(b).

The consolidated entity is part of the stapled Australand Property Group, which includes Australand HoldingsLimited, Australand Property Trust and Australand Property Trust No. 5 ( Australand Group or the Group ).


This general purpose financial report has been prepared in accordance with Australian Accounting Standardsand interpretations issued by the Australian Accounting Standard Board ( AASB ), and the Corporations Act2001.

The Trust is a for profit entity for the purposes of preparing financial statements.

The accounting policies adopted are consistent with those of the previous and interim reporting period and corresponding financial year.

Going concernThe consolidated entity had an excess of current liabilities over current assets at 31 December 2013 of$12,403,000 (2012: $15,400,000). The Boards of Australand Property Limited (the Responsible Entity ofAustraland Property Trust) and Australand Holdings Limited have provided a letter of support to the Board ofAustraland Investments Limited (the Responsible Entity of Australand Property Trust No. 4) that AustralandProperty Trust will continue to provide funding to the consolidated entity in order to meet its debts as and whenthey fall due.

Compliance with International Financial Reporting Standards ( IFRS )The financial report of Australand Property Trust No.4 complies with IFRS as issued by the InternationalAccounting Standards Board ( IASB ).

Changes in accounting policy Several new or revised accounting standards became effective for the annual reporting period commencing on1 January 2013. The affected policies and standards are set out below.

AASB 10 Consolidated Financial Statements ( AASB 10 ) impacts the policy dealing with the principles ofconsolidation.

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

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

AASB 13 Fair Value Measurement ( AASB 13 ) was issued in September 2011 and provides a precisedefinition of fair value and a single source of fair value measurement and disclosure requirements forapplication across all accounting standards. While these requirements do not extend the use of fair valueaccounting, they provide guidance on how fair value accounting should be applied where its use is alreadyrequired or permitted by other accounting standards. The application of the new standard has not resulted inany change to fair value measurement. The additional disclosures required have been applied in Note 6.



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a) Basis of preparation (continued)

Historical cost conventionThese financial statements have been prepared under the historical cost convention, as modified by therevaluation of investment property.

Changes in current year classificationReclassifications of a number of immaterial balances have been made to the statement of comprehensive income and balance sheet in the current period to better reflect the underlying nature of these balances. These changes do not affect the comparability of amounts from period to period.

Critical accounting estimatesThe preparation of these financial statements requires the use of certain critical accounting estimates andassumptions concerning the future. It also requires management to exercise its judgement in the process ofapplying the consolidated entity s accounting policies. The resulting estimates will, by definition, seldom equalthe related actual results. The material estimates and assumptions in these financial statements include:

(i) Investment Properties: All investment properties are valued at least every 2 years by externalindependent valuers. Values are based on active market prices, adjusted if necessary, for specificasset conditions. If this information is not available, the consolidated entity uses alternative valuationmethods such as the capitalisation approach and discounted cash flow projections.


The consolidated financial statements incorporate the assets and liabilities of all subsidiaries and controlledentities of Australand Property Trust No. 4 as at 31 December 2013 and the results of all controlled entities forthe year then ended. APT 4 and its subsidiaries and controlled entities are referred to in this financial report as the consolidated entity.

Subsidiaries and controlled entities are all those entities (including special purpose entities) over which theTrust has control. The Trust controls an entity when the Trust is exposed to, or has rights to variable returnsfrom its involvement with the entity and has the ability to affect those returns through its power over the entity.Control is generally associated with a shareholding of more than one-half of the voting rights. The existenceand effect of potential voting rights that are currently exercisable or convertible are considered when assessingwhether the Trust controls another entity.

Subsidiaries and controlled entities are fully consolidated from the date on which control is transferred to theTrust. They are de-consolidated from the date that control ceases.

Inter-entity transactions, balances and unrealised gains on transactions between entities in the consolidatedgroup are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of theimpairment of the asset transferred. Accounting policies of subsidiaries and controlled entities are consistentwith the policies adopted by the Trust.




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Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised forthe major business activities as follows:

Rental IncomeRental income from operating leases is recognised in income on a straight line basis over the lease term. Anasset is recognised to represent the portion of operating lease income in a reporting period relating to fixedincreases in operating lease rentals in future periods. Such assets are recognised as a component of thecarrying amount of investment properties in the balance sheet.




Investment properties comprise investment interests in land and buildings held for long term rental yields andnot occupied by the consolidated entity. Investment properties are carried at fair value which is based onactive market prices, given their highest and best use, adjusted if necessary, for any difference in the nature,location or condition of the specific asset. If this information is not available, the Group uses alternativevaluation methods such as the capitalisation approach and discounted cash flow projections. The highest andbest use of an investment property refers to the use of the investment property by market participants thatwould maximise the value of that property. Each property is valued at least every 2 years by externalindependent valuers. Any resultant changes in fair value are shown separately in the consolidated incomestatement as net gains/(losses) from fair value adjustments on investment property.

The carrying amount of investment properties recorded in the balance sheet includes components relating tolease incentives and assets relating to fixed increases in operating lease rentals in future periods.

Investment properties under constructionInvestment properties under construction are carried at fair value after allowing for the remaining expectedcosts of completion plus an appropriate risk adjusted development margin.


For cash flow statement purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or lessthat are readily convertible to known amounts of cash and which are subject to an insignificant risk of changesin value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balancesheet.



Collectability of trade receivables is reviewed on an ongoing basis. Receivables which are known to beuncollectible are written off. A provision for any impairment of trade receivables is established when there isobjective evidence that the consolidated entity will not be able to collect all amounts due according to theoriginal terms of receivables. The amount of the provision is the difference between the asset s carryingamount and the present value of estimated future cash flows, discounted at the effective interest rate. Cashflows relating to short-term receivables are not discounted if the effect of discounting is immaterial.


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The acquisition method of accounting is used to account for all business combinations including businesscombinations involving entities or businesses under common control regardless of whether equity instrumentsor other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the consolidatedentity. The consideration transferred also includes the fair value of any contingent consideration arrangementand the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a businesscombination are, with limited exceptions, measured initially at their fair values at the acquisition date. On anacquisition-by-acquisition basis, the consolidated entity recognises any non-controlling interest in the acquireeeither at fair value or at the non-controlling interest s proportionate share of the acquiree s net identifiableassets.

The excess of the consideration transferred the amount of any non-controlling interest in the acquiree and theacquisition-date fair value of any previous equity interest in the acquiree over the fair value of the consolidatedentity share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than thefair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts hasbeen reviewed, the difference is recognised directly in the income statement as a bargain purchase.

h) Trade and other payables

Trade and other payables represent liabilities for goods and services provided prior to the end of the financialyear and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

i) Provisions

Provisions are recognised when the consolidated entity has a present legal or constructive obligation as aresult of past events, it is probable that an outflow of resources will be required to settle the obligation and theamount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined byconsidering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflowwith respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management s best estimate of the expenditure required tosettle the present obligation at the balance date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase inthe provision due to the passage of time is recognised as interest expense.

j) Lease incentives

Prospective lessees may be offered incentives as an inducement to enter into non-cancellable operatingleases. These incentives may take various forms including, upfront cash payments, rent free periods, or a contribution to certain lessee costs such as fit out or relocation costs. As these incentives are repaid out of future lease payments, they are recognised as an asset in the consolidated balance sheet as a component of the carrying amount of investment properties and amortized over the lease period.




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k) Borrowings and borrowing costs

Borrowings are initially recognised at fair value including transaction costs incurred. Borrowings aresubsequently measured at amortised cost. Any difference between proceeds (net of transaction costs) andredemption is recognised in the income statement over the period of the borrowings using the effective interestmethod. Fees paid on the establishment of loan facilities, which are not an incremental cost relating to theactual draw-down of the facility, are recognised as prepayments and amortised on a straight-line basis over the term of the facility. Borrowings are classified as current liabilities unless the consolidated entity has anunconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,cancelled or expired. The difference between the carrying amount of a financial liability that has beenextinguished or transferred to another party and the consideration paid, including any non-cash assetstransferred or liabilities assumed, is recognised in the income statement as other income or finance costs.

Borrowing costs incurred for construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed. In extended periods where development of a qualifying asset is suspended borrowing costs are expensed asincurred.

The amount of borrowing costs eligible to be capitalised is calculated using the weighted average interest rate applicable to the entity s outstanding borrowings during the year.

l) Income tax

Under current income tax legislation, the consolidated entity is not liable for income tax, provided that thetaxable income is fully distributed each year including any taxable capital gain derived from the sale of anasset.

m) Earnings per unit

i. Basic earnings per unitBasic earnings per unit is determined by dividing the net profit attributable to the unit holders of AustralandProperty Trust No. 4, by the weighted average number of units outstanding during the year, adjusted for bonuselements in units, if any, issued during the year.

ii. Diluted earnings per unitDiluted earnings per unit adjusts the figures used in the determination of basic earnings per unit by taking intoaccount the effect of interest and other financing costs associated with dilutive potential ordinary units and theweighted average number of units assumed to have been issued for no consideration in relation to the dilutivepotential ordinary units.

n) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GSTincurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost ofacquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.


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o) Trust distribution

Provision is made for the amount of any trust distributions declared, being appropriately authorized and nolonger at the discretion of the entity, on or before the end of the financial year but not distributed at balancedate.

p) Contributed equity

Australand is a stapled group in which the securityholders hold direct interests and an equal number of sharesin Australand Holdings Limited ( AHL ), and units in each of Australand Property Trust ( APT ), AustralandProperty Trust No.4 ( APT4 ) and Australand Property Trust No.5 ( APT5 ).

Incremental costs directly attributable to the issue of new stapled securities are shown in equity as a deduction, net of tax, from the proceeds.

q) Segment reporting

AASB 8 Operating Segments ( AASB 8 ) requires a management approach , under which segment informationis presented on the same basis as that used for internal reporting purposes. The segments are reported in amanner that is consistent with the internal reporting provided to the Executive Management Team.

The consolidated entity is deemed to have only one operating segment.

r) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for31 December 2013 reporting periods. These are not expected to have any material effect on the consolidatedentity in future reporting periods.

s) Rounding of amounts

The consolidated entity is of the kind referred to in Class Order 98/100 issued by the Australian Securities andInvestments Commission, relating to the rounding off of amounts in the financial report. Amounts in thefinancial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, orin certain cases, the nearest dollar.

t) Parent entity financial information

The financial information for the parent entity, Australand Property Trust No. 4, disclosed in Note 21 has beenprepared on the same basis as the consolidated financial statements.




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The consolidated entity s activities expose it to a variety of financial risks including liquidity risk, market risk,credit risk and interest rate risk. It is the responsibility of the Board and Management to ensure that adequaterisk identification, assessment and mitigation practices are in place for the effective oversight and management of these risks. The consolidated entity s overall management program as it relates to these risks is managedcentrally to ensure alignment of financial risk management with corporate objectives and seeks to minimisepotential adverse effects on the financial performance of the consolidated entity.

The Australand Property Group ( Group ) uses derivative financial instruments such as interest rate derivativesto hedge certain risk exposures. Derivatives are exclusively used for hedging purposes, i.e. not as trading orother speculative instruments. The consolidated entity uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate risk and aginganalysis for credit risk.

Group Treasury identifies, evaluates and mitigates the above financial risks under policies approved by theBoard of Directors.

(a) Credit risk

Credit risk is the risk that a counterparty will default on their financial obligations resulting in a financial loss tothe consolidated entity.

The consolidated entity s maximum exposure to credit risk at 31 December 2013 is limited to the carryingamount of the financial assets disclosed in Note 16.

Credit risk arises from cash and cash equivalents and credit exposures to receivables from tenants and related parties.

Cash transactions are limited to high credit quality financial institutions.


There is no concentration of credit risk with respect to the receivables from tenants as they consist of a largenumber of customers that are geographically dispersed. The consolidated entity has policies in place to ensurethat the leasing of investment properties are made to customers with an appropriate credit history. Ongoingchecks are performed by management to ensure that terms detailed in individual contracts are adhered to.

(b) Market risk

The consolidated entity s exposure to interest rate risk arises on the inter-company borrowings within theGroup. The consolidated entity has a receivable from Australand Property Trust which bears interest at theGroup s weighted average cost of debt.

The Group s interest rate risk arises from long term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Group policy is to maintain fixed interest rate hedging above a minimum of 70% for 1 year maturities, reducing to 0% for maturities 7 years and beyond.

The Group hedges its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Such interestrate swaps have the economic effect of converting borrowings from floating rates to fixed rates. Under theinterest rate swaps, the Group agrees with other parties to exchange, at specified intervals (mainly quarterly),the difference between fixed contract rates and floating rate interest amounts calculated by reference to theagreed notional principal amounts.

The potential impact of a change in interest rates by +/-1% on profit and equity has been disclosed in a table in Note 16. There is no material exposure to any other market risks.


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(c) Liquidity risk

Prudent liquidity risk management implies that at all times the consolidated entity has access to sufficient cashresources to meet its financial obligations as they fall due. The consolidated entity manages liquidity risk bycontinuously monitoring forecast and actual cash flows and matching maturity profiles of financial assets andliabilities.

Due to the dynamic nature of the underlying businesses, Group Treasury aims to maintain flexibility in fundingby keeping committed credit lines available with a variety of counterparties.

At 31 December 2013, the Group had, excluding joint arrangements, undrawn committed facilities of $540million (2012: $360 million) and cash of $61 million (2012: $76 million).

The tables below analyse the consolidated entity s financial liabilities into relevant maturity groupings based onthe remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the tableare the contractual undiscounted cash flows (including estimated interest payments).

31 December 2013

Within1 year$ 000

Between 1 & 2 years

$ 000

Over 2 years$ 000

Totalcontractualcash flows

$ 000

Carryingamountassets/

(liabilities)$ 000

Non-derivativesNon-Interest bearing (5,120) - - (5,120) (5,120)Variable rate (22) - - (22) (22)Fixed rate - - - - -Total non-derivatives (5,142) - - (5,142) (5,142)

31 December 2012

Within1 year$ 000

Between 1 & 2 years

$ 000

Over 2 years$ 000


$ 000

Carryingamountassets/

(liabilities)$ 000

Non-derivativesNon-Interest bearing (3,766) - - (3,766) (3,766)Variable rate (22) - - (22) (22)Fixed rate - - - - -Total non-derivatives (3,788) - - (3,788) (3,788)


The fair value of financial assets and financial liabilities must be estimated for recognition and measurement orfor disclosure purposes. The consolidated entity uses a variety of methods to calculate the value of financialinstruments and makes assumptions that are based on market conditions existing at each balance date. Thecarrying value of trade and other receivables (less impairment provisions), payables and financial liabilities is areasonable approximation of their fair values.

AASB 13 Fair Value Measurement ( AASB 13 ) requires disclosure of fair values, for each of the followingmeasurement categories:

I. where the fair value is measured using quoted prices (unadjusted in active markets for identical assetsor liabilities (level 1));

II. where the fair value is measured using inputs other than quoted prices included within level 1 that areobservable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2); and

III. where the fair value is measured using inputs for the asset or liability that are not based on observablemarket data (unobservable inputs) (level 3).

The consolidated entity does not have any financial instruments that are held at fair value (2012: Nil).




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The consolidated entity s objectives when managing capital are to safeguard their ability to continue as a goingconcern, so that they can continue to provide returns for unitholders and benefits for other stakeholders and tomaintain an optimal capital structure to reduce the cost of capital.

The consolidated entity monitors its capital on the basis of the gearing ratio. The consolidated entity did nothave any borrowings at the balance sheet date (2012: Nil).

In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount ofdistributions paid to unit holders, return capital to unit holders, issue new stapled securities or sell assets.


During the year, the following fees were paid or payable for services provided by the auditor of the Trust and its controlled entities:

2013 2012$ $


No non-audit services were provided by PricewaterhouseCoopers during the year to 31 December 2013.


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4. RECEIVABLES

2013$ 000

2012$ 000

CurrentRent debtors 130 152

Accrued income 48 52

Total current receivables 178 204

Non-current

Amounts owed by related entity Australand Property Trust 6,950 4,127

Total non-current receivables 6,950 4,127

TermsThe loan with the related entity, Australand Property Trust bears interest monthly at the Group s weightedaverage cost of debt. The loan is repayable in December 2015; however the maturity date will automatically beextended by 12 months unless the Trust notifies the relevant borrower by 30 June 2014 that the facility is to beterminated.

There were no material receivables at 31 December 2013 that were past due and impaired (2012: $Nil).

5. OTHER ASSETS

2013$ 000

2012$ 000

CurrentPrepayments 116 170

116 170

Non-current

Deferred charges 656 654

656 654


Details of the individual properties comprising Investment Properties are set out below. All properties are 100% owned except for Freshwater Place Office Tower which is 50% owned.

Description AcquisitionDate


Date


$ 000

Book Value31 Dec 13

$ 000

Book Value31 Dec 12

$ 00035 Huntingwood Drive, Huntingwood, NSW Oct-05 Dec-13 34,600 34,600 33,60080 Hartley Road, Smeaton Grange,NSW Oct-05 Dec-13 57,500 57,500 53,000Tower B, 197-201 Coward Street, Mascot, NSW Oct-05 Dec-13 39,000 39,000 39,900Freshwater Place Office Tower, 2 Southbank Boulevard, Southbank VIC (50% interest) Oct-05 Jun-12 196,500 204,100 202,600

335,200 329,100




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The value of the investment properties is measured on a fair value basis. The highest and best use ofinvestment properties is taken into consideration when determining their fair value. The highest and best use of an investment property refers to the use of the investment property by market participants that would maximisethe value of that property. For all of the consolidated entity s, investment properties, the current use isconsidered to be the highest and best use. The best evidence of fair value is given by current prices in anactive market for similar property in the same location and condition and subject to similar leases.

The fair value of investment property has been updated to reflect market conditions at the end of the reportingperiod. While this represents best estimates as at the balance sheet date if investment property is sold in thefuture the price achieved may be higher or lower than the most recent valuation.

AASB 13: Fair Value Measurement ( AASB 13 ) requires the disclosure of fair values for each of the followingmeasurement categories:(i) where the fair value is measured using quoted prices (unadjusted in active markets for identical assets or

liabilities (level 1);(ii) where the fair value is measured using inputs other than quoted prices included within level 1 that are

observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2);and

(iii) where the fair value is measured using inputs for the asset or liability that are not based on observablemarket data (unobservable inputs) (level 3).

All of the investment properties in the Trust s portfolio are included within the level 3 category described above.As a result, the significant unobservable inputs associated with the valuation of the Trust s investmentproperties are as follows:


Office Annual Net Property Income ($ 000)


WALE (year)

Discount rate1 (%)

Occupancy (%)

3,855 14,583

6.85% - 8.25%

0.3 3.4 years

9.0% - 9.25%

100% - 100%

12,862

7.10%

2.7 years

9.0%

100%



WALE (years)

Discount rate1 (%)

Occupancy (%)

2,700 4,814

8.25% - 8.5%

5.2 5.5 years

9.5% - 9.75%

100% - 100%

4,010

8.4%

5.4 years

9.70%

100%1Discount rates are based on the latest independent valuations.

Relationship between Significant Unobservable Inputs and Fair ValueAnnual Net Property Income: The higher the income the higher the valuation Capitalisation Rate: The lower the capitalisation rate the higher the valuationWALE: The longer the WALE the higher the valuationDiscount Rate: The lower the discount rate the higher the valuation Occupancy: The higher the occupancy the higher the valuation


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Fair Value Measurement (continued)

At 31 December 2013, the consolidated entity had 4 properties in its portfolio. During the course of 2013,independent valuations were undertaken on 39% (by value) of the properties in the portfolio. The independentvaluers are professionally qualified who hold a recognised relevant professional qualification and have recentexperience in the locations and segments of the investment properties valued. In assessing the value of theinvestment properties, the independent valuers considered valuations using both the capitalisation approachand discounted cash flows. Properties that are not independently valued at 31 December 2013 are carried atfair value determined by directors valuations.

The Group s Investment Property division includes a valuation team that reviews the valuations performed bythe independent valuers and perform the underlying valuations that support the directors valuations. Eachmember of this team are professionally qualified and accredited property valuers.

The valuation processes and results of the independent and directors valuations are reviewed at least bi-annually (in line with the Group s reporting periods) by the Chief Financial Officer, Managing Director and AuditCommittee.

The average market capitalisation rate of the Trust at 31 December 2013 was 7.44% (2012: 7.63%); Industrialproperties: 8.41% (2012: 8.71%); Office properties: 7.07% (2012: 7.25%).

Reconciliation of the carrying amounts of investment properties at beginning and end of the current financialyear is set out below:

Industrial$ 000

Office$ 000

2013$ 000

2012$ 000

Carrying amount at the beginning of the year 86,600 242,500 329,100 306,000Additions at cost 208 484 692 2,086Stamp duty refund - - - (7,151)Net gains from fair value adjustments 5,685 201 5,886 26,971Net movement in deferred incentives (393) (85) (478) 1,194

Carrying amount at the end of the year 92,100 243,100 335,200 329,100

Leasing arrangementsThe investment properties are leased to tenants under long term operating leases. Rentals are receivable fromthe tenants monthly.

Minimum lease payments under non-cancellable operating leases of investment properties not recognised inthe financial statements are receivable as follows:

2013$ 000

2012$ 000

Within one year 23,044 25,171Later than one year but not later than 5 years 65,205 53,432Later than 5 years 6,438 78,724

94,687 157,327




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Non-current assets pledged as security

None of the properties are pledged as security for the Group s borrowings (2012: Nil).

Amounts recognised in profit and loss for investment property

2013$ 000

2012$ 000

Rental income (including recoverable outgoings) 32,736 31,596Direct operating expenses from property that generated rental income (6,772) (6,749)

25,964 24,847


Set out below are the material controlled entities to which these consolidated financial statements relate. Thebeneficial interest in the material controlled entities is 100%. Australand Property Trust No. 4 and its controlledentities were incorporated in Australia.

Equity Holdings

Controlled entities 2013%

2012%

AWPT4 Holdings Pty Limited as trustee for AWPT No. 4 Holding Trust 100 100

AWPT4 NSW Holdings No.1 Pty Limited as trustee for AWPT4 NSW Holding Trust No. 1 100 100



AWPT4 Huntingwood Pty Limited as trustee for Huntingwood Trust 100 100

AWPT4 Smeaton Grange Pty Limited as trustee for Smeaton Grange Trust 100 100

Australand Industrial No. 56 Pty Limited as trustee for Mascot Building Trust 100 100

Freshwater Holding No. 2 Pty Limited as trustee for Freshwater Holding Trust No. 2 100 100

Freshwater Commercial No. 2 Pty Limited as trustee for Freshwater Office Trust No. 2 100 100

8. PAYABLES

2013 2012$ 000 $ 000

CurrentAccruals 4,368 3,073Rents paid in advance 529 458GST payable 223 235Rental bonds received 22 22

5,142 3,788


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9. PROVISIONS2013 2012

$ 000 $ 000CurrentDistribution payable 10,793 14,421

Reconciliation of distribution payableCarrying amount at beginning of financial year 14,421 7,268Interim and final distributions (Note 14) 18,792 22,236Payments made during the year (22,420) (15,083)

Carrying amount at end of financial year 10,793 14,421

10. CONTRIBUTED EQUITY

Contributed Equity 2013$ 000

2012$ 000

590,650,108 units, fully paid (2012: 589,172,035 units) 264,502 263,867

Movements in contributed equity 2013

Date DetailsNumber of securities

Issue price$ $'000

1 Jan 13 Balance at beginning of financial year 588,954,753 263,867Securities issued during period 1,478,073 0.43 635

Balance at end of financial year1590,432,826 264,502

1. The total number of securities at 31 December 2013 is 590,650,108. The difference relates to securities held in trust to satisfy future performance rights plan.

Movements in ordinary units 2012

Date DetailsNumber of

units

IssuePrice

$ $ 000

01 Jan 12 Balance at beginning of financial year 588,954,753 263,872ESOP - - (5)Balance at end of financial year1 588,954,753 263,867

1. The total number of units at 31 December 2012 is 589,172,035. The difference relates to securities held in trust to satisfy futureperformance rights plan.

Units

Unitholders are entitled to receive distributions and the proceeds on any winding up of the Trust in proportion to the number of and amounts paid on the units held.

11. RESERVES

2013$ 000

2012$ 000

Capital redemption reserve (6,301) (6,301)

There were no movements in the reserve during the period. The reserve arose as a result of the redemption of units upon stapling with Australand Holdings Limited and Australand Property Trust.




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12. UNDISTRIBUTED INCOME

2013$ 000

2012$ 000

Undistributed income at the beginning of the financial year 60,915 31,294Total profit for the year 30,079 51,857Distributions provided for or paid (18,792) (22,236)

Undistributed income at the end of the financial year 72,202 60,915


2013 2012

Basic and diluted earnings per unit 5.1 cents 8.8 cents

a) Reconciliation of earnings used in calculating earnings per unit

Basic and diluted earnings per unit $ 000 $ 000Net profit after tax 30,079 51,857Earnings used in calculating basic and diluted earnings per unit 30,079 51,857

b) Weighted average number of units used Units UnitsWeighted average number of ordinary units used as the denominator in calculating basic and diluted earnings per unit 590,394,989 589,172,035

14. DISTRIBUTIONS

Payment per unit (cents)

Totalamount

$ 000 Date of payment2013Interim distribution for 2013 1.30 7,999 7 August 2013Final distribution for 2013 1.83 10,793 7 February 2014

3.13 18,792

2012Interim distribution for 2012 1.30 7,815 7 August 2012Final distribution for 2012 2.50 14,421 8 February 2013

3.80 22,236



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(a) Reconciliation of cashFor the purpose of the cash flow statement, cash includes cash on hand and bank and short term deposits atcall. Cash as at the end of the financial year as shown in the statement of cash flows is reconciled to therelated items in the balance sheet as follows:

2013$ 000

2012$ 000

Cash and cash equivalents 3,238 2,435


Net profit for the year 30,079 51,857Net gains from fair value adjustments on investment property (5,886) (26,971)Deferred incentive amortisation expense 1,343 1,128Decrease/(increase) in receivables 26 (122)Decrease/(increase) in other assets 52 (618)Increase/(decrease) in accruals and payables 1,354 (96)Decrease in provisions - (1,773)Net cash flows from operating activities 26,968 23,405

16. FINANCIAL INSTRUMENTS DISCLOSURE

a) Credit risk exposuresThe carrying amounts of financial assets included in the consolidated balance sheet represent the consolidated entity's exposure to credit risk in relation to these assets.

b) Interest rate riskThese risks are managed centrally for Australand Property Group, including Australand Property Trust No.4and its controlled entities. Further details of the policies for managing financial risks are included in Note 2.




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16. FINANCIAL INSTRUMENTS DISCLOSURES (continued)

c) Interest rate risk exposuresThe consolidated entity s exposure to interest rate risk and the effective weighted average interest rate forclasses of financial assets and financial liabilities is set out below:

Fixed interest maturing in:

Floatinginterest

rate$ 000

1 year or less

$ 000

Over 1 to 5

years$ 000

Morethan 5 years$ 000

Non-interestbearing

$ 000Total$ 000

2013Financial assetsCash and cash equivalents 3,238 - - - - 3,238Receivables 6,950 - - - 178 7,128Total financial assets 10,188 - - - 178 10,366Weighted average interest rate 5.40%Financial liabilitiesPayables - - - - (5,142) (5,142)Total financial liabilities - - - - (5,142) (5,142)Weighted average interest rate -Net financial assets / (liabilities) 10,188 - - - (4,964) 5,224

2012Financial assetsCash and cash equivalents 2,435 - - - - 2,435Receivables 4,127 - - - 204 4,331Total financial assets 6,562 - - - 204 6,766Weighted average interest rate 6.08%Financial liabilitiesPayables - - - - (3,788) (3,788)Total financial liabilities - - - - (3,788) (3,788)Weighted average interest rate -Net financial assets / (liabilities) 6,562 - - - (3,584) 2,978

d) Net fair valuesThe consolidated entity s financial assets and liabilities are stated at cost and these assets are not traded in anorganized financial market.

Carrying amounts of other debtors, amounts owing by Australand Property Trust and other related entities,other financial assets and payables and bank loans are stated at cost as the carrying values approximate to netfair values.


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16. FINANCIAL INSTRUMENTS DISCLOSURES (continued)

e) Summarised interest rate sensitivity analysis

The table below illustrates the potential impact a change in interest rates by +/- 1% would have had on the Trust s profit and equity.

-1% +1%Carrying

amount $ 000Profit$ 000

Equity$ 000

Profit$ 000

Equity$ 000

2013

Financial assets

Cash and cash equivalents 3,238 (32) - 32 -

Receivables 6,950 (70) - 70 -

Financial liabilities

Interest bearing liabilities - - - - -

Total increase/(decrease) - (102) - 102 -

2012

Financial assets

Cash and cash equivalents 2,435 (24) - 24 -

Receivables 4,127 (41) - 41 -

Financial liabilities

Interest bearing liabilities - - - - -

Total increase/(decrease) - (65) - 65 -


The consolidated entity derives all income from investment in properties, which are located in Australia. TheTrust is deemed to only have one operating segment, and this is consistent with the reporting reviewed by theExecutive Management Team.




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(a) Directors

The following persons were directors of Australand Holdings Limited ( AHL ), Australand Property Limited( APL ) (as the Responsible Entity of Australand Property Trust and Australand ASSETS Trust) and AustralandInvestments Limited ( AIL ) (as the Responsible Entity of Australand Property Trust No. 4 and AustralandProperty Trust No. 5) during the financial year.

Olivier Lim (Chairman)Paul Dean Isherwood, AO (Deputy Chairman and Lead Independent Director)

Robert William Johnston (Managing Director)

Beth May LaughtonLui Chong Chee

Nancy Jane Milne, OAM

Stephen Eric NewtonRobert Edward Prosser


The following persons also had authority and responsibility for planning, directing and controlling the activitiesof Australand, directly or indirectly, during the financial year:

Name Role Date of AppointmentSean McMahon Executive General Manager, Commercial and Industrial 1 January 2008Kieran Pryke Chief Financial Officer 1 March 2010Rod Fehring Executive General Manager, Residential 22 March 2010

(c) Directors and other key management personnel compensation

2013$

2012$

Short term employee benefits 6,630,8912 6,499,727Post employment benefits 165,091 202,230Other long term employee benefits 58,218 58,085Security based payments 629,832 771,560TOTAL 7,484,033 7,531,602



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(a) Controlling entitiesAustraland Property Group ( Group ) comprises Australand Holdings Limited, Australand Property Trust,Australand Property Trust No.4 and Australand Property Trust No.5 and their respective controlled entities.

During year ended 31 December 2013, CapitaLand Limited conducted a selldown of part of its holdings in theGroup. CapitaLand s ownership as at 31 December 2013 was 39.1% of the Group, compared to 59.1% prior tothe selldown.

(b) Key management personnelDisclosures relating to key management personnel are set out in Note 18.

(c) Transactions with related partiesTransactions with related parties are conducted in the normal course of business under normal terms andconditions.

2013 2012$ $

Statement of comprehensive income:Rent received 397,977 382,312Management fees paid (661,664) (633,148)Interest income received 230,222 65,851Balance sheet:Amounts owed by Australand Property Trust 6,949,513 4,127,055

(d) Ownership interests in entities in the wholly owned group and other related partiesInterests in controlled entities are set out in Note 7.

(e) Interests of related entityThe related entity Australand Holdings Limited holds 12,325,438 units (31 December 2012: 12,325,438 units)in the Trust.

20. CONTINGENCIES

The Responsible Entity for the Trust, has jointly and severally unconditionally and irrevocably guaranteed therepayment of the borrowings and financial guarantees of the Group.

At 31 December 2013 the total group borrowings guaranteed were $1,628,992 (December 2012: $1,712,889)and at balance date the facilities were drawn to $1,088,993 (December 2012: $1,352,889). The Group hasgiven indemnities for land development contract performance in the form of bank guarantees, details andestimated maximum amounts of contingent liabilities (for which no amounts are recognised in the financialstatements) are as follows:

2013$ 000

2012$ 000


64,646 37,711




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Balance sheet 2013 2012$ 000 $ 000

Current assets 84,130 85,359Total assets 269,363 265,699Current liabilities (10,989) (14,704)Total liabilities (10,989) (14,704)Net assets 258,374 250,995

EquityContributed equity 264,523 263,888Reserves (19,329) (19,329)Undistributed income 13,180 6,436Total equity 258,374 250,995

Profit for the year 25,536 26,013Total comprehensive income 25,536 26,013

Refer to Note 20 for details of guarantees given by the parent entity.





22. EVENTS OCCURRING AFTER BALANCE DATE

There have been no significant events or transactions that have arisen since the end of the financial year,which in the opinion of the directors, would affect significantly the opertions of the consolidated entity, theresults of those operations, or the state of affairs of the consolidated entity.


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In the directors opinion:

(a) the financial statements and notes set out on pages 67 to 91 are in accordance with the Corporations Act2001, including:

(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatoryprofessional reporting requirements; and

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

(b) There are reasonable grounds to believe that the trust will be able to pay its debts as and when theybecome due and payable.

Note 1(a) confirms that the financial statements also comply with International Financial Reporting as issued by the International Accounting Standards Board.

This declaration is made in accordance with a resolution of the directors of Australand Investments Limited asthe Responsible Entity of Australand Property Trust No. 4.



Bob JohnstonM i Di



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AustralandProperty Trust No.5Financial Report 31 December 2013ARSN 108 254 771


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The Directors of Australand Investments Limited (ABN 12 086 673 092) ( Responsible Entity ) as theResponsible Entity of Australand Property Trust No.5 ( Trust ) present their report, together with theconsolidated financial report of the consolidated entity, being the Trust and its controlled entities, for thefinancial year ended 31 December 2013, and the Independent Auditor s Report thereon.

The Responsible Entity of the Trust is an entity incorporated in New South Wales. The parent entity of theResponsible Entity is Australand Holdings Limited (ABN 12 008 443 696), incorporated in New South Wales.

DIRECTORS

The following persons were Directors of the Responsible Entity during the year ended 31 December 2013 andup to the date of this report:


The names, qualifications and experience of each person holding the position of Director of the Responsible Entity at the date of this report are:



Independent:No


Skills and experience:Appointed Group Deputy CEO of Capitaland Limited on 3 January 2013. Held the position of Chief InvestmentOfficer between February 2012 and January 2013 and was Head of Strategic Corporate Development fromAugust 2011 up until his appointment as Chief Investment Officer. He was Group Chief Financial Officer ofCapitaLand Limited between July 2005 and July 2011 and, prior to that, was Deputy Chief Financial Officer. He first joined CapitaLand as Senior Vice President, Corporate Finance in September 2003. Prior to joining theCapitaLand Group, he was Director and Head of Real Estate Unit, Corporate Banking in Citibank, Singapore.He joined Citibank in Singapore in August 1989.

Directorships of listed entities within the last three years include:Director of CapitaMalls Asia Limited (appointed 1 July 2005) Formerly a director of Raffles Medical Group Limited (appointed 1 October 2009, resigned 29June 2013) Formerly a director of Neptune Orient Lines Limited (appointed 12 April 2012, resigned 16September 2013)Formerly a director CapitaMall Trust Management Limited (the manager of a listed REIT inSingapore) (appointed 1 July 2005, resigned 1 November 2012) Formerly a director of CapitaCommercial Trust Management Limited (the manager of a listedREIT in Singapore) (appointed 1 July 2005, resigned 1 January 2013)



Australand Property Trust No.5 and its controlled entitiesF

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Term of Office:Non-Executive Director since 15 December 2005. Appointed Deputy Chairman and Lead Independent Directoron 1 January 2011. Mr Isherwood was re-elected at the 2012 Annual and General Meetings.

Independent:Yes

Board Committee membership:Chair of the Audit Committee and the Remuneration & Nomination Committee, Member of the InvestmentCommittee.

Skills and experience:An experienced company director with a strong finance and accounting background. Proven leadershipexperience from a career with Coopers & Lybrand that spanned 38 years. Held the position of NationalChairman and Managing Partner of Coopers & Lybrand (Australia) from 1985 to 1994. Served on theInternational Board and Executive Committee of the firm from 1985 to 1994. Has extensive corporategovernance experience across different industry sectors, and mostly with listed companies.




Term of Office:Managing Director since 1 August 2007. In accordance with the Company s Constitution, the ManagingDirector is exempt from retirement by rotation in accordance with clause 12.28.

Independent:No


Skills and experience:Mr Johnston was appointed Managing Director of Australand in August 2007 and has extensive experience inthe property sector. He has been involved in all facets of the sector including Funds Management, PropertyDevelopment, Project Management and Construction. Prior to joining Australand, Mr Johnston spent 20 yearswith the Lend Lease Group in various roles in Australia, Asia, US and the UK.




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Term of Office:Non-Executive Director since 7 May 2012. Ms Laughton was elected at the 2013 Annual and GeneralMeetings.

Independent:Yes


Skills and experience:Ms Laughton is a chartered accountant with a strong background in corporate finance, having held senior rolesat Wilson HTM, TMT Partners, KPMG, HSBC Securities and Ord Minnett, where she provided merger andacquisition advice and arranged equity funding across a range of industries.




Term of Office:Non-Executive Director since 11 December 2001 and Chairman from 1 June 2007 until 14 April 2011. Mr Luiwas re-elected at the 2012 Annual and General Meetings.

Independent:Yes


Skills and experience:Currently Chief Financial Officer of Raffles Medical Group Limited. He previously held the position of CEO,CapitaLand Financial Limited up until his resignation on 31 May 2010. During his time with CapitaLand Limited, he held a succession of senior financial and operational management positions across the Group. Prior tojoining the CapitaLand Group, he was Managing Director of Citicorp Investment Bank (Singapore) Limited. Hejoined Citibank, Singapore in July 1986.






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Term of Office:Non-Executive Director since 1 October 2010. Ms Milne was last elected at the 2011 Annual and GeneralMeetings and, in accordance with Australand s Constitution, is retiring by rotation and standing for re-electionin 2014.

Independent:Yes


Skills and experience:An experienced company director with extensive business experience. A consultant at Clayton Utz, (formerly aSenior Partner of the firm) specialising in the areas of insurance and risk. Previously a member andChairperson of Australand s Risk & Compliance Committee from 2003 until April 2009.

Directorships of listed entities within the last three years include:Director of Crowe Horwath Australasia Ltd (appointed 28 November 2013) Director of Commonwealth Property Office Fund (appointed 1 January 2009) Director of CFS Retail Property Trust Group (appointed 1 January 2009)



Term of Office:Non-Executive Director since 18 December 2007. Mr Newton was re-elected at the 2013 Annual and GeneralMeetings.

Independent:Yes


Skills and experience:An experienced company director in the real estate and infrastructure sectors. Currently Joint ManagingDirector and co-founder of Arcadia Funds Management Limited. Prior to establishing the Arcadia Group inDecember 2002, he was a senior executive with the Lend Lease Group, a member of its global seniorexecutive management group and a director of a number of Lend Lease entities and managed funds(November 1980 to December 2002). Has over thirty years experience in the real estate sector both inAustralia and internationally with extensive involvement in all aspects of asset management, developmentmanagement, real estate investment management and mergers, acquisitions and dispositions of publicly listedand private (wholesale) real estate investment trusts and companies.



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Other current Directorships / Offices: Director of Newcastle Airport Limited (resigned 29 November 2013)Advisory Board Member representing Alberta Investment Management Corporation (Canada)for Forestry Investment TrustDirector of Broadcast Australia Group Director of Athllon Trustees Pty LimitedDirector of University of Notre Dame Australia Member of the Finance Committee and Property Committee for the Catholic Archdiocese ofSydney


Term of Office:Non-Executive Director since 9 February 2011. Mr Prosser was last elected at the 2011 Annual and GeneralMeetings and, in accordance with Australand s Constitution, is retiring by rotation and standing for re-election in 2014.

Independent:Yes


Skills and experience:Mr Prosser has a strong finance and accounting background having retired in June 2008 as aPricewaterhouseCoopers ( PwC ) Partner in Sydney where he was responsible for due diligence in relation tomergers, acquisitions, equity raisings and divestments. At the time of his resignation, he was chair of PwC spublic reports panel, with responsibility for the quality control of all public documents and liaison withregulators.



COMPANY SECRETARIESCompany secretaries of the Board in office at the date of this report, and each company secretary s experienceand qualifications are as shown below.



Ms Booker joined Australand as Group Company Secretary in October 2006. Her previous positions includedGroup Company Secretary / General Manager Risk & Compliance for the Australian Agricultural CompanyLimited and Group Company Secretary of AMP Limited. Ms Booker has over 25 years experience across awide range of business areas including governance, compliance, risk management and strategic andoperational planning.




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Mr Newsom was appointed a Company Secretary of the Responsible Entity on 29 January 2004 and acts asCompany Secretary in Ms Booker s absence.

Mr Newsom joined Australand in August 2000 as General Counsel. Prior to joining Australand, Mr Newsomheld positions of Company Secretary and General Counsel for Pioneer International Limited and AmpolLimited. He has over 30 years experience in commercial and corporate law, dispute resolution, capital markets, mergers and acquisitions and corporate administration both in private legal practice and in large publicly listedcompanies across the property, building materials, petroleum and financial services sectors.


The number of meetings of directors (including committee meetings) held during the year and the number ofmeetings attended by each director or committee member is as follows:

Director BoardAudit



Committee



Notes:1. Figures in brackets indicate the number of meetings held during the time the director held office or was a member of the Board or the Board Committee during the year.2. There were 3 Board Sub-Committee meetings held during the year in addition to the meetings shown in the above table.3. Mr Johnston is a member of the Investment Committee and attends all other Committee meetings by invitation.4. One Independent Board Committee meeting was held during the year.


Since 31 December 2012, no director or an associate of a director, has received or become entitled to receivea benefit (other than a benefit included in the total amount of emoluments received or due and receivable bydirectors or their associates shown in the consolidated financial statements) because of a contract that thedirector, or a firm of which the director is a member, or an entity in which the director has a substantial interesthas made (during that, or any other, financial year) with Australand Property Trust No.5 or an entity thatAustraland Property Trust No.5 controlled, or a body corporate that was related to Australand Property TrustNo.5 when the contract was made or when the director or associate received or became entitled to receive thebenefit.


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The principal activity of the Trust is investment in income producing industrial properties within Australia. TheResponsible Entity holds an Australian Financial Services Licence (No. 228837) issued pursuant to section913B of the Corporations Act 2001 and the Trust is registered as a Managed Investment Scheme.


The net profit of the consolidated entity for the year ended 31 December 2013 was $12,317,000 (2012:$12,158,000). The investment property portfolio comprises 5 properties (2012: 5 properties) with an aggregatevalue of $112,000,000 (2012: $110,100,000).


There were no significant changes in the state of affairs of Australand Property Trust No.5 during the financialyear.


There have been no significant events or transactions that have arisen since the end of the financial year,which in the opinion of the directors, would affect significantly the operations of the consolidated entity, theresults of those operations, or the state of affairs of the consolidated entity.


The consolidated entity will benefit from fixed rental growth over the majority of the portfolio s leases, howeverthe portfolio also has leases expiring in 2014.


The consolidated entity, as owner of properties in the Trust, regularly monitors its environmental exposures toensure that it has complied with environmental regulations. The directors are not aware of any materialbreaches of environmental regulations during the year covered by this report.

DISTRIBUTIONS

Distributions paid or declared by the directors since the end of the previous financial year were:

TypeDistributions

per unitTotal amount

$ 000 Date of paymentFinal for 2012 0.85 cents 4,920 8 February 2013Interim for 2013 0.80 cents 4,746 7 August 2013Final for 2013 0.75 cents 4,623 7 February 2014



Clause 20 of Australand Property Trust No.5 s constitution provides:The Manager is entitled to be indemnified out of the assets of the Trust for any liability incurred by it in properly

performing or exercising any of its powers or duties in relation to the Trust. To the extent permitted by theCorporations Act 2001, this indemnity includes any liability incurred as a result of any act or omission of adelegate or agent appointed by the Manager. This indemnity is in addition to any indemnity allowed by law. Itcontinues to apply after the Manager retires or is removed from the office it holds in relation to the Trust.





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NON-AUDIT SERVICES

Details of the services undertaken by the Trust s external auditor, PricewaterhouseCoopers, including theamounts paid or payable to the external auditor for non-audit services, are set out below and in Note 3 to thefinancial statements.

2013 2012$ $


No non-audit services were provided by PricewaterhouseCoopers during the year to 31 December 2013 (2012:No non-audit services.)


A copy of the auditor s independence declaration as required under section 307C of the Corporations Act 2001is set out on page 104.

AUDITOR


ROUNDING OF AMOUNTS

The Trust and its controlled entities are entities of the kind referred to in Class Order 98/100 issued by theAustralian Securities and Investments Commission, relating to the rounding of amounts in the directors report.Amounts in the directors report have been rounded off in accordance with that Class Order to the nearestthousand dollars, or in certain cases, to the nearest dollar.




Bob JohnstonM i Di


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Notes

2013 2012$ 000 $ 000

Rental income 9,695 9,646Recoverable outgoings 1,480 1,329Interest income 1,549 1,328Total revenue 12,724 12,303

Rates, taxes and other property outgoings 6 (1,748) (1,477)Amortisation of lease incentives (6) -Trust management fees (220) (218)Professional fees (18) (38)Total expenses (1,992) (1,733)

Net gains from fair value adjustments on investment property 6 1,585 1,588Net profit for the financial year 12,317 12,158

Other comprehensive income - -Total comprehensive income for the financial year 12,317 12,158

Earnings per unit:Basic and diluted earnings per unit 14 2.1 cents 2.0 cents



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Notes2013 2012$ 000 $ 000

Current assetsCash and cash equivalents 16 (a) 317 247Receivables 4 3 2Other assets 5 222 126Total current assets 542 375

Non-current assetsReceivables 4 20,465 19,629Other assets 5 2 6Investment properties 6 112,000 110,100Total non-current assets 132,467 129,735Total assets 133,009 130,110

Current liabilitiesPayables 8 625 630Provisions 9 4,623 4,920Total current liabilities 5,248 5,550

Non-current liabilitiesOther liabilities 10 266 262Total non-current liabilities 266 262Total liabilities 5,514 5,812Net assets 127,495 124,298

EquityContributed equity 11 116,257 116,008Reserves 12 (1,919) (1,919)Undistributed income 13 13,157 10,209Total equity 127,495 124,298





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Notes

2013 2012$ 000 $ 000

Cash flows from operating activitiesReceipts from customers 11,174 11,056Payments to suppliers (2,085) (1,687)Interest received 1,549 1,328

Net cash inflow from operating activities 16 (b) 10,638 10,697

Cash flows from investing activitiesPayments for development of investment properties (315) (12)

Net cash outflow from investing activities (315) (12)

Cash flows from financing activitiesProceeds from issue of units (net of transaction costs) 249 (2)Advances provided to related party (836) (766)Distributions paid (9,666) (10,435)

Net cash outflow from financing activities (10,253) (11,203)

Net (decrease)/increase in cash 70 (518)Cash at the beginning of the financial year 247 765

Cash at the end of the financial year 16(a) 317 247




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31 December 2013 $ 000 $ 000 $ 000 $ 000


Net profit for the year - - 12,317 12,317

Other comprehensive income - - - -


Transactions with unitholders in their capacity as owners:

Contributions of equity, net of transaction costs 249 - - 249

Distributions provided for or paid (Note 15) - - (9,369) (9,369)

Balance at 31 December 116,257 (1,919) 13,157 127,495

31 December 2012


Net profit for the year - - 12,158 12,158

Other comprehensive income - - - -


Transactions with unitholders in their capacity as owners:

Contributions of equity, net of transaction costs (2) - - (2)

Distributions provided for or paid (Note 15) - - (9,099) (9,099)

Balance at 31 December 116,008 (1,919) 10,209 124,298





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The significant accounting policies adopted in the preparation of the consolidated financial report are set outbelow. These policies have been consistently applied to all the years presented, unless otherwise stated. Thefinancial report includes financial statements for the consolidated entity consisting of Australand Property TrustNo. 5 ( The Trust or APT 5 ) and its subsidiaries and controlled entities as defined in Note 1(b).

The consolidated entity is part of the stapled Australand Property Group, which includes Australand HoldingsLimited, Australand Property Trust and Australand Property Trust No. 4 ( Australand Group or the Group ).


This general purpose financial report has been prepared in accordance with Australian Accounting Standards,interpretations issued by the Accounting Standards Board and the Corporations Act 2001.

The Trust is a for profit entity for the purpose of preparing financial statements.

The accounting policies adopted are consistent with those of the previous and interim reporting period andcorresponding financial year.

Going concernThe consolidated entity had an excess of current liabilities over current assets at 31 December 2013 of$4,706,000 (2012: $5,175,000). The Boards of Australand Property Limited (the Responsible Entity ofAustraland Property Trust) and Australand Holdings Limited have provided a letter of support to the Board ofAustraland Investments Limited (the Responsible Entity of Australand Property Trust No. 5) that AustralandProperty Trust will continue to provide funding to the consolidated entity in order to meet its debts as and whenthey fall due.

Compliance with International Financial Reporting Standards ( IFRS )The financial report of Australand Property Trust No.5 complies with IFRS as issued by the InternationalAccounting Standards Board ( IASB ).

Changes in accounting policy Several new or revised accounting standards became effective for the annual reporting period commencing on1 January 2013 as set out below.

AASB 10 Consolidated Financial Statements ( AASB 10 ) impacts the policy dealing with the principles ofconsolidation.

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

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

AASB 13 Fair Value Measurement ( AASB 13 ) was issued in September 2011 and provides a precisedefinition of fair value and a single source of fair value measurement and disclosure requirements forapplication across all accounting standards. While these requirements do not extend the use of fair valueaccounting, they provide guidance on how fair value accounting should be applied where its use is alreadyrequired or permitted by other accounting standards. The application of the new standard has not resulted inany change to fair value measurement. The required disclosures have been applied in Note 6.



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a) Basis of preparation (continued)

Historical cost conventionThese financial statements have been prepared under the historical cost convention, as modified by therevaluation of investment property.

Changes in current year classificationReclassifications of a number of immaterial balances have been made to the statement of comprehensiveincome and balance sheet in the current period to better reflect the underlying nature of these balances. These changes do not affect the comparability of amounts from period to period.

Critical accounting estimatesThe preparation of these financial statements requires the use of certain critical accounting estimates andassumptions concerning the future. It also requires management to exercise its judgement in the process ofapplying the consolidated entity s accounting policies. The resulting estimates will, by definition, seldom equalthe related actual results. The material estimates and assumptions in these financial statements include:

(i) Investment Properties:All investment properties are valued at least every 2 years by external independent valuers. Values are based on active market prices, adjusted if necessary, for specific asset conditions. If this information isnot available, the consolidated entity uses alternative valuation methods such as the capitalisationapproach and discounted cash flow projections.


The consolidated financial statements incorporate the assets and liabilities of all subsidiaries and controlledentities of Australand Property Trust No.5 ( APT5 ) as at 31 December 2013 and the results of all subsidiariesand controlled entities for the year then ended. APT5 and its subsidiaries and controlled entities are referred toin this financial report as the consolidated entity.

Subsidiaries and controlled entities are all those entities (including special purpose entities) over which theconsolidated entity has control. The consolidated entity controls an entity when the consolidated entity isexposed to, or has rights to variable returns from its involvement with the entity and has the ability to affectthose returns through its power over the entity. Control is generally associated with a shareholding of morethan one-half of the voting rights. The existence and effect of potential voting rights that are currentlyexercisable or convertible are considered when assessing whether the consolidated entity controls anotherentity.

Subsidiaries and controlled entities are fully consolidated from the date on which control is transferred to theconsolidated entity. They are de-consolidated from the date that control ceases.

Inter-entity transactions, balances and unrealised gains on transactions between consolidated entity entitiesare eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of theimpairment of the asset transferred. The accounting policies adopted by the subsidiaries, joint ventures andassociates are consistent with those of the consolidated entity.




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Revenue is measured at the fair value of the consideration received or receivable. Revenue is recognised forthe major business activities as follows:

Rental IncomeRental income from operating leases is recognised in income on a straight line basis over the lease term. Anasset is recognised to represent the portion of operating lease income in a reporting period relating to fixedincreases in operating lease rentals in future periods. Such assets are recognised as a component of thecarrying amount of investment properties in the balance sheet.




Investment properties comprise investment interests in land and buildings held for long term rental yields andnot occupied by the consolidated entity. Investment properties are carried at fair value which is based onactive market prices, given their highest and best use, adjusted if necessary, for any difference in the nature,location or condition of the specific asset. If this information is not available, the Group uses alternativevaluation methods such as the capitalisation approach and discounted cash flow projections. The highest andbest use of an investment property refers to the use of the investment property by market participant that would maximise the value of that property. Each property is valued at least every 2 years by external independentvaluers. Any resultant changes in fair value are shown separately in the consolidated income statement as netgains/(losses) from fair value adjustments on investment property.

The carrying amount of investment properties recorded in the balance sheet includes components relating tolease incentives and assets relating to fixed increases in operating lease rentals in future periods.

Investment property under constructionInvestment properties under construction are carried at fair value after allowing for the remaining expectedcosts of completion plus an appropriate risk adjusted development margin.


For cash flow statement purposes cash and cash equivalents includes cash on hand, deposits held at call withfinancial institutions, other short-term, highly liquid investments with original maturities of three months or lessthat are readily convertible to known amounts of cash and which are subject to an insignificant risk of changesin value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balancesheet.



Collectability of trade receivables is reviewed on an ongoing basis. Receivables which are known to beuncollectible are written off. A provision for any impairment of trade receivables is established when there isobjective evidence that the consolidated entity will not be able to collect all amounts due according to theoriginal terms of receivables. The amount of the provision is the difference between the asset s carryingamount and the present value of estimated future cash flows, discounted at the effective interest rate. Cashflows relating to short-term receivables are not discounted if the effect of discounting is immaterial.


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The acquisition method of accounting is used to account for all business combinations including businesscombinations involving entities or businesses under common control regardless of whether equity instrumentsor other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred, the liabilities incurred and the equity interests issued by the consolidatedentity. The consideration transferred also includes the fair value of any contingent consideration arrangementand the fair value of any pre-existing equity interest in the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a businesscombination are, with limited exceptions, measured initially at their fair values at the acquisition date. On anacquisition-by-acquisition basis, the consolidated entity recognises any non-controlling interest in the acquireeeither at fair value or at the non-controlling interest s proportionate share of the acquiree s net identifiableassets.

The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and theacquisition-date fair value of any previous equity interest in the acquiree over the fair value of the consolidatedentity s share of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than thefair value of the net identifiable assets of the subsidiary acquired and the measurement of all amounts hasbeen reviewed, the difference is recognised directly in the income statement as a bargain purchase.

h) Trade and other payables

Trade and other payables represent liabilities for goods and services provided prior to the end of the financialyear and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

i) Provisions

Provisions are recognised when the consolidated entity has a present legal or constructive obligation as aresult of past events, it is probable that an outflow of resources will be required to settle the obligation and theamount has been reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement isdetermined by considering the class of obligations as a whole. A provision is recognised even if the likelihoodof an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management s best estimate of the expenditure required tosettle the present obligation at the balance date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase inthe provision due to the passage of time is recognised as interest expense.

j) Lease incentives

Prospective lessees may be offered incentives as an inducement to enter into non-cancellable operatingleases. These incentives may take various forms including, up front cash payments, rent free periods, or acontribution to certain lessee costs such as fit out or relocation costs. As these incentives are repaid out offuture lease payments, they are recognised as an asset in the consolidated balance sheet as a component ofthe carrying amount of investment properties and amortised over the lease period.




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k) Borrowings and borrowing costs

Borrowings are initially recognised at fair value including transaction costs incurred. Borrowings aresubsequently measured at amortised cost. Any difference between proceeds (net of transaction costs) andredemption is recognised in the income statement over the period of the borrowings using the effective interestmethod. Fees paid on the establishment of loan facilities, which are not an incremental cost relating to theactual draw-down of the facility, are recognised as prepayments and amortised on a straight-line basis over the term of the facility. Borrowings are classified as current liabilities unless the consolidated entity has anunconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged,cancelled or expired. The difference between the carrying amount of a financial liability that has beenextinguished or transferred to another party and the consideration paid, including any non-cash assetstransferred or liabilities assumed, is recognised in the income statement as other income or finance costs.

Borrowing costs incurred for construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed. In extended periods where development of a qualifying asset is suspended borrowing costs are expensed asincurred.

The amount of borrowing costs eligible to be capitalised is calculated using the weighted average interest rateapplicable to the entity s outstanding borrowings during the year.

l) Income tax

Under current income tax legislation the consolidated entity is not liable for income tax, provided that thetaxable income is fully distributed each year including any taxable capital gain derived from the sale of anasset.

m) Earnings per unit

(i) Basic earnings per unitBasic earnings per unit is determined by dividing the net profit attributable to the unitholders of AustralandProperty Trust No. 5, by the weighted average number of units outstanding during the year, adjusted for bonuselements in units, if any, issued during the year.

(ii) Diluted earnings per unitDiluted earnings per unit adjusts the figures used in the determination of basic earnings per unit by taking intoaccount the effect of interest and other financing costs associated with dilutive potential ordinary units and theweighted average number of units assumed to have been issued for no consideration in relation to the dilutivepotential ordinary units.

n) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GSTincurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost ofacquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amountof GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.


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o) Trust distribution

Provision is made for the amount of any trust distributions declared, being appropriately authorised and nolonger at the discretion of the entity, on or before the end of the financial year but not distributed at balancedate.

p) Contributed equity

Australand is a stapled group in which the securityholders hold direct interests and an equal number of sharesin Australand Holdings Limited ( AHL ), and units in each of Australand Property Trust ( APT ), AustralandProperty Trust No.4 ( APT4 ) and Australand Property Trust No.5 ( APT5 ).

Incremental costs directly attributable to the issue of new stapled securities are shown in equity as a deduction, net of tax, from the proceeds.

q) Segment reporting

AASB 8 Operating Segments ( AASB 8 ) requires a management approach , under which segment informationis presented on the same basis as that used for internal reporting purposes. The segments are reported in amanner that is consistent with the internal reporting provided to the Executive Management Team.

The consolidated entity is deemed to have only one operating segment.

r) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for31 December 2013 reporting periods. These are not expected to have any material effect on the consolidatedentity.

s) Rounding of amounts

Australand Property Trust No. 5 is an entity of the kind referred to in Class Order 98/100 issued by theAustralian Securities and Investments Commission, relating to the rounding off of amounts in the financialreport. Amounts in the financial report have been rounded off in accordance with that Class Order to thenearest thousand dollars, or in certain cases, the nearest dollar.

t) Parent entity financial information

The financial information for the parent entity, Australand Property Trust No. 5, disclosed in Note 22 has beenprepared on the same basis as the consolidated financial statements.




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The consolidated entity s activities expose it to a variety of financial risks including liquidity risk, market risk,credit risk and interest rate risk. It is the responsibility of the Board and Management to ensure that adequaterisk identification, assessment and mitigation practices are in place for the effective oversight and management of these risks. The consolidated entity s overall management program as it relates to these risks is managedcentrally to ensure alignment of financial risk management with corporate objectives and seeks to minimisepotential adverse effects on the financial performance of the consolidated entity.

The Australand Property Group ( Group ) uses derivative financial instruments such as interest rate derivativesto hedge certain risk exposures. Derivatives are exclusively used for hedging purposes, i.e. not as trading orother speculative instruments. The consolidated entity uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate risk and aginganalysis for credit risk.

Group Treasurery identifies, evaluates and mitigates the above financial risks under policies approved by theBoard of Directors.

(a) Credit risk

Credit risk is the risk that a counterparty will default on their financial obligations resulting in a financial loss tothe consolidated entity.

The consolidated entity s maximum exposure to credit risk at 31 December 2013 is limited to the carryingamount of the financial assets disclosed in Note 17.

Credit risk arises from cash and cash equivalents and credit exposures to receivables from tenants.


There is no concentration of credit risk with respect to the receivables from tenants as they consist of a largenumber of customers that are geographically dispersed. The consolidated entity has policies in place to ensurethat the leasing of investment properties are made to customers with an appropriate credit history. Ongoingchecks are performed by management to ensure that terms detailed in individual contracts are adhered to.

(b) Market risk

The consolidated entity s exposure to interest rate risk arises on the inter-company borrowings within theGroup. The consolidated entity has a receivable from Australand Property Trust which bears interest at theGroup s weighted average cost of debt.

The Group s interest rate risk arises from long term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Group policy is to maintain fixed interest rate hedging above a minimum of 70% for 1 year maturities, reducing to 0% for maturities 7 years and beyond.

The Group hedges its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Such interestrate swaps have the economic effect of converting borrowings from floating rates to fixed rates. Under theinterest rate swaps, the Group agrees with other parties to exchange, at specified intervals (mainly quarterly),the difference between fixed contract rates and floating rate interest amounts calculated by reference to theagreed notional principal amounts.

The potential impact of a change in interest rates by +/-1% on profit and equity has been disclosed in a table in Note 17. There is no material exposure to any other market risks.


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2 FINANCIAL RISK MANAGEMENT (continued)

(c) Liquidity risk (continued)

Prudent liquidity risk management implies that at all times the consolidated entity has access to sufficient cashresources to meet its financial obligations as they fall due. The consolidated entity manages liquidity risk bycontinuously monitoring forecast and actual cash flows and matching maturity profiles of financial assets andliabilities.

Due to the dynamic nature of the underlying businesses, Group Treasury aims to maintain flexibility in fundingby keeping committed credit lines available with a variety of counterparties.

At 31 December 2013, the Group had, excluding joint arrangement, undrawn committed facilities of $540million (2012: $360 million) and cash of $61 million (2012: $76 million)

The tables below analyse the consolidated entity s financial liabilities into relevant maturity groupings based onthe remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the tableare the contractual undiscounted cash flows (including estimated interest payments).

2013 - Consolidated

Within1 year$ 000

Between 1 & 2 years $ 000

Over2 years

$ 000


$ 000

Carrying amount assets/

(liabilities)$ 000

Non-derivativesNon-interest bearing (625) - - (625) (625)Variable rate - (269) - (269) (266)Total non-derivatives (625) (269) - (625) (891)

2012 - Consolidated

Within1 year$ 000

Between 1 & 2 years $ 000

Over2 years

$ 000


$ 000

Carrying amount assets/

(liabilities)$ 000

Non-derivativesNon-interest bearing (631) - - (631) (631)Variable rate - - (278) (278) (262)Total non-derivatives (631) - (278) (909) (893)


The fair value of financial assets and financial liabilities must be estimated for recognition and measurement orfor disclosure purposes. The consolidated entity uses a variety of methods to calculate the value of financialinstruments and makes assumptions that are based on market conditions existing at each balance date. Thecarrying value of trade and other receivables (less impairment provisions), payables and financial liabilities is areasonable approximation of their fair values.

AASB 13 Fair Value Measurement: Disclosures (AASB 13) requires disclosure of fair values, for each of thefollowing measurement categories:

I. where the fair value is measured using quoted prices (unadjusted in active markets for identical assetsor liabilities (level 1));

II. where the fair value is measured using inputs other than quoted prices included within level 1 that areobservable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2); and

III. where the fair value is measured using inputs for the asset or liability that are not based on observablemarket data (unobservable inputs) (level 3).

The consolidated entity does not have any financial instruments that are held at fair value (2012: Nil).




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2 FINANCIAL RISK MANAGEMENT (continued)


The consolidated entity s objectives when managing capital are to safeguard their ability to continue as a goingconcern, so that they can continue to provide returns for shareholders and benefits for other stakeholders andto maintain an optimal capital structure to reduce the cost of capital.

The consolidated entity monitors its capital on the basis of the gearing ratio. The consolidated entity did nothave borrowings at the balance sheet date.

In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount ofdistributions paid to unit holders, return capital to unit holders, issue new stapled securities or sell assets.


During the year, the following fees were paid or payable for services provided by the auditor of the Trust and its controlled entities:

2013 2012$ $


No non-audit services were provided by PricewaterhouseCoopers during the period to 31 December 2013(2012: No non-audit services).


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4. RECEIVABLES

2013$ 000

2012$ 000

Current

Debtors 3 2

Total current receivables 3 2

Non-current

Amounts owed by related entity - Australand Property Trust 20,465 19,629

Total non-current receivables 20,465 19,629

TermsThe loan with the related entity, Australand Property Trust bears interest monthly at the Group s weightedaverage cost of debt. The loans are repayable in December 2015 (2012: December 2014), however thematurity date will automatically be extended by 12 months unless the Trust notifies the relevant borrower by 30 June 2014 (2012: 30 June 2013) that the facility is to be terminated.

5. OTHER ASSETS2013 2012$ 000 $ 000

CurrentPrepayments 222 126

Total current assets 222 126

Non-current

Deferred charges 2 6

Total non-current assets 2 6


Details of the individual properties comprising Investment Properties are set out below. Investment Propertiesare 100% owned.


Date


Date


$ 000

Book Value31 Dec 13

$ 000

Book Value 31 Dec 12

$ 000

63 South Park Drive, Dandenong, VIC Oct-05 Dec-13 13,000 13,000 11,80047-59 Boundary Road, Carole Park, QLD Oct-05 Dec-13 12,000 12,000 11,40022-28 Bam Wine Court, DandenongSouth, VIC Oct-05 Dec-13 18,400 18,400 18,2002 Wonderland Drive, Eastern Creek, NSW Oct-05 Dec-13 41,500 41,500 43,500

286 Queensport Road, Murarrie, QLD Oct-05 Jun-13 25,900 27,100 25,200

110,800 112,000 110,100




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The value of the investment properties is measured on a fair value basis. The highest and best use ofinvestment properties is taken into consideration when determining their fair value. The highest and best use of an investment property refers to the use of the investment property by market participants that would maximisethe value of that property. For all of the consolidated entity s, investment properties, the current use isconsidered to be the highest and best use. The best evidence of fair value is given by current prices in anactive market for similar property in the same location and condition and subject to similar leases.

The fair value of investment property has been updated to reflect market conditions at the end of the reportingperiod. While this represents best estimates as at the balance sheet date if investment property is sold in thefuture the price achieved may be higher or lower than the most recent valuation.

AASB 13: Fair Value Measurement ( AASB 13 ) requires the disclosure of fair values for each of the followingmeasurement categories:(i) where the fair value is measured using quoted prices (unadjusted in active markets for identical assets or

liabilities (level 1));(ii) where the fair value is measured using inputs other than quoted prices included within level 1 that are

observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2);and

(iii) where the fair value is measured using inputs for the asset or liability that are not based on observablemarket data (unobservable inputs) (level 3).

All of the investment properties in the APT5 s portfolio are included within the level 3 category described above.As a result, the significant unobservable inputs associated with the valuation of the Group s investmentproperties are as follows:




WALE (year)

Discount rate1 (%)

Occupancy (%)

794 4,398

7.5% - 9.25%

0.7 10.7 years

9.5% - 10.25%

100% - 100%

2,475

8.3%

4.6 years

9.7%

100%1Discount rates are based on the latest independent valuations.

Relationship between Significant Unobservable Inputs and Fair ValueNet Property Income: The higher the Income the higher the valuation Capitalisation Rate: The lower the capitalisation rate the higher the valuationWALE: The longer the WALE the higher the valuationDiscount Rate: The lower the discount rate the higher the valuation Occupancy: The higher the occupancy the higher the valuation

At 31 December 2013, the consolidated entity had a portfolio of 5 properties. Independent valuations wereundertaken on all income producing assets in the twelve months to 31 December 2013. The independentvaluers are professionally qualified who hold a recognised relevant professional qualification and have recentexperience in the locations and segments of the investment properties valued. In assessing the value of theinvestment properties, the independent valuers considered valuations using both the capitalisation approachand discounted cash flows. Properties that are not independently valued at 31 December 2013 are carried atfair value determined by directors valuations.


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The Australand Property Group has a valuation team that reviews the valuations performed by the independent valuers and perform the underlying valuations that support the directors valuations. Each member of this teamare professionally qualified and accredited property valuers.

The valuation processes and results of the independent and directors valuations are reviewed at least bi-annually (in line with the Group s reporting periods) by the Chief Financial Officer, Managing Director and AuditCommittee.

The average market capitalisation rate of the Trust at 31 December 2013 was 8.27% (2012: 8.574%).

Reconciliation of the carrying amounts of investment properties at beginning and end of the current financialyear is set out below:

2013$ 000

2012$ 000

Carrying amount at beginning of the year 110,100 108,500Capital expenditures 315 12Net gains from fair value adjustments 1,585 1,588

Carrying amount at end of year 112,000 110,100

Leasing arrangementsThe investment properties are leased to tenants under long term operating leases. Rentals are receivable fromthe tenants monthly.

Minimum lease payments under non-cancellable operating leases of investment properties not recognised inthe financial statements are receivable as follows:

2013$ 000

2012$ 000

Within one year 8,114 9,964

Later than one year but not later than 5 years 22,464 11,768

Later than 5 years 442 1,641

Total 31,020 23,373

Non-current assets pledged as security

None of the properties are pledged as security for the Australand Property Group s borrowings (2012: None of the properties).

Amounts recognised in profit and loss for investment property2013$ 000

2012$ 000

Rental income (including recoverable outgoings) 11,175 10,975

Direct operating expenses from property that generated rental income (1,748) (1,477)

Total 9,427 9,498




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Set out below are the material controlled entities to which these consolidated financial statements relate. Thebeneficial interest in the material controlled entities is 100%. Australand Property Trust No. 5 and its controlledentities were incorporated in Australia.

Equity Holdings

Controlled entities 2013%

2012%

AWPT5 Holdings No. 8 Limited as trustee for AWPT5 Intermediate Trust 100 100

AWPT5 Construction Finance Pty Limited 100 100

AWPT5 Post Construction Finance Pty Limited 100 100

AWPT5 Holdings No. 7 Pty Limited as trustee for Eastern Creek Investment Trust No. 2 100 100

Australand Industrial (Queensport) Pty Limited as trustee for Queensport Road Unit Trust 100 100

AWPT5 Holdings No.3 Pty Limited as trustee for AWPT5 Holding Trust No. 3 100 100



8. PAYABLES2013$ 000

2012$ 000

CurrentAccruals 267 538Rents paid in advance 265 -GST payable 93 92Total payables 625 630

9. PROVISIONS2013$ 000

2012$ 000

CurrentDistribution payable 4,623 4,920

Reconciliation of distribution payable

Carrying amount at beginning of financial year 4,920 6,256

Interim and final distributions (Note 15) 9,369 9,099Payments made during the year (9,666) (10,435)Carrying amount at end of financial year 4,623 4,920


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10. OTHER NON-CURRENT LIABILITIES

2013$ 000

2012$ 000

Other non-current liabilities 266 262

11. CONTRIBUTED EQUITY

Contributed Equity 2013$ 000

2012$ 000

597,723,897 units, fully paid (2012: 596,245,819 units) 116,257 116,008



Issueprice $ $'000

1 Jan 13 Balance at beginning of financial year 596,028,837 116,008

Securities issued during the period 1,478,073 0.17 249

Balance at end of financial year1 597,506,910 116,2571. The total number of securities at 31 December 2013 is 597,723,897. This difference realtes to securities held in trust to satisfy futureperformance rights plan.



IssuePrice $ $ 000

1 Jan 12 Balance at beginning of financial year 596,028,837 116,010

ESOP (Employee Securities Option Plan) - - (2)

Balance at end of financial year1 596,028,837 116,0081 The total number of units at 31 December 2012 is 596,245,819. This difference relates to securities held in trust to satisfy futureperformance rights plan.

(a) Units

Unit holders are entitled to receive distributions and the proceeds on any winding up of the Trust in proportionto the number of and amounts paid on the units held.

12. RESERVES

2013$ 000

2012$ 000

Capital redemption reserve (1,919) (1,919)

There were no movements in the reserve during the period. The reserve arose as a result of the redemption of units upon stapling with AHL and APT.




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13. UNDISTRIBUTED INCOME

2013$ 000

2012$ 000

Undistributed income at the beginning of the financial year 10,209 7,150

Total profit for the year 12,317 12,158

Distributions provided for or paid (9,369) (9,099)

Undistributed income at the end of the financial year 13,157 10,209


2013 2012

Basic and diluted earnings per unit 2.1 cents 2.0 cents

a) Reconciliation of earnings used in calculating earnings per unit

Basic and diluted earnings per unit $ 000 $ 000

Net profit after tax 12,317 12,158

Earnings used in calculating basic and diluted earnings per unit 12,317 12,158

b) Weighted average number of units used Units Units

Weighted average number of ordinary units used as the denominator in calculating basic and diluted earnings per unit 597,468,773 596,245,819

15. DISTRIBUTIONS

2013Payment per unit Amount

Date of payment(cents) $ 000

Interim distribution for 2013 0.80 cents 4,746 7 August 2013Final distribution for 2013 0.75 cents 4,623 7 February 2014

Total distribution 1.55 cents 9,369

2012Interim distribution for 2012 0.70 cents 4,179 7 August 2012Final distribution for 2012 0.85 cents 4,920 8 February 2013

Total distribution 1.55 Cents 9,099

The Record Date to determine entitlements to the final 2013 distribution was 5:00pm, 31 December 2013. The final 2013 distribution of 0.82 cents per unit was paid on 7 February 2014.


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(a) Reconciliation of cash

For the purpose of the cash flow statement, cash includes cash on hand and bank and short term deposits atcall. Cash as at the end of the financial year as shown in the cash flow statement is reconciled to the relateditems in the balance sheet as follows:

2013$ 000

2012$ 000

Cash and cash equivalents 317 247


2013$ 000

2012$ 000

Net profit for the year 12,317 12,158

Net gains from fair value adjustments on investment property (1,585) (1,588)(Increase)/Decrease in receivables (1) 74(Increase)/Decrease in other assets (92) 17(Decrease)/Increase in accruals and payables (1) 36

Net cash flows provided by operating activities 10,638 10,697




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17. FINANCIAL INSTRUMENTS DISCLOSURE

a) Credit risk exposures

The carrying amounts of financial assets included in the consolidated balance sheet represent the consolidated entity's exposure to credit risk in relation to these assets.

b) Interest rate risk

These risks are managed centrally for the Australand Group, including Australand Property Trust No.5 and itscontrolled entities. Further details of the policies for managing financial risks are included in Note 2.

c) Interest rate risk exposures

The consolidated entity s exposure to interest rate risk and the effective weighted average interest rate forclasses of financial assets and financial liabilities is set out below:

Fixed interest maturing in:Floatinginterest

rate$ 000

1 year or less

$ 000

Over1 to 5 years$ 000

Morethan 5 years$ 000

Noninterestbearing

$ 000Total$ 000

31 December 2013Financial assetsCash and cash equivalents 317 - - - - 317Receivables 20,465 - - - 3 20,468Total financial assets 20,782 - - - 3 20,785Weighted average interest rate 7.30%Financial liabilitiesPayables - - - - (625) (625)Other non-current liabilities (266) - - - - (266)Total financial liabilities (266) - - - (625) (891)Weighted average interest rate 1.10%Net financial assets/(liabilities) 20,516 - - - (622) 19,894

31 December 2012Financial assetsCash and cash equivalents 247 - - - - 247Receivables 19,629 - - - 2 19,631Total financial assets 19,876 - - - 2 19,878Weighted average interest rate 7.84%Financial liabilitiesPayables - - - - (630) (630)Other non-current liabilities (262) - - - - (262)Total financial liabilities (262) - - - (630) (892)Weighted average interest rate 3.00%Net financial assets/(liabilities) 19,614 - - - (628) 18,986


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17. FINANCIAL INSTRUMENTS DISCLOSURE (continued)

d) Net fair values

The consolidated entity s financial assets and liabilities are stated at cost and these assets are not traded in anorganised financial market.

Carrying amounts of other debtors, amounts owing by Australand Property Trust and other related entities,other financial assets and payables are stated at cost as the carrying values approximate to net fair values.

e) Summarised interest rate sensitivity analysis

The table below illustrates the potential impact a change in interest rates by +/- 1% would have had on the Trust s profit and equity.

-1% +1%

Carryingamount

$ 000Profit$ 000

Equity$ 000

Profit$ 000

Equity$ 000

2013Financial assetsCash and cash equivalents 317 (3) - 3 -Receivables 20,465 (205) - 205 -Financial liabilitiesInterest bearing liabilities (266) 3 - (3) -

Total increase / (decrease) 20,516 (205) - 205 -

2012Financial assetsCash and cash equivalents 247 (2) - 2 -Receivables 19,629 (196) - 196 -Financial liabilitiesInterest bearing liabilities (262) 3 - (3) -

Total increase / (decrease) 19,614 (195) - 195 -


The consolidated entity derives all income from investment in properties, which are located in Australia. TheTrust is deemed to only have one operating segment, and this is consistent with the reporting reviewed by the Executive Management Team.




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(a) Directors

The following persons were directors of Australand Holdings Limited ( AHL ), Australand Property Limited (APL) (as the Responsible Entity of Australand Property Trust and Australand ASSETS Trust) and AustralandInvestments Limited ( AIL ) (as the Responsible Entity of Australand Property Trust No. 4 and AustralandProperty Trust No. 5) during the financial year.

Olivier Lim (Chairman)

Paul Dean Isherwood, AO (Deputy Chairman and Lead Independent Director)

Robert William Johnston (Managing Director)Beth May LaughtonLui Chong Chee

Nancy Jane Milne, OAMStephen Eric NewtonRobert Edward Prosser


The following persons also had authority and responsibility for planning, directing and controlling the activitiesof Australand, directly or indirectly, during the financial year:

Name Role Date of AppointmentSean McMahon Executive General Manager, Commercial and Industrial 1 January 2008Kieran Pryke Chief Financial Officer 1 March 2010Rod Fehring Executive General Manager, Residential 22 March 2010

(c) Directors and other key management personnel compensation

2013$

2012$

Short term employee benefits 6,630,892 6,499,727Post employment benefits 165,091 202,230Other long term employee benefits 58,218 58,085Security based payments 629,832 771,560TOTAL 7,484,033 7,531,602



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(a) Controlling entities

Australand Property Group ( Group ) comprises Australand Holdings Limited, Australand Property Trust,Australand Property Trust No.4 and Australand Property Trust No.5 and their respective controlled entities.

During year ended 31 December 2013, CapitaLand Limited conducted a selldown of part of its holdings in theGroup. CapitaLand s ownership as at 31 December 2013 was 39.1% of the Group, compared to 59.1% prior tothe selldown.

(b) Key management personnel

Disclosures relating to key management personnel are set out in Note 19.

(c) Transactions with related parties

Transactions with related parties are conducted in the normal course of business under normal terms andconditions.

2013 2012$ $

Statement of comprehensive income:Management fees paid 220,206 217,761Interest income 1,550,910 1,327,848

Balance sheet:Amounts owed by related entity Australand Property Trust 20,465,470 19,628,533

(d) Ownership interests in entities in the wholly owned group and other related parties

Interests in controlled entities are set out in Note 7.

(e) Interests of related entities

The related entity Australand Holdings Limited holds 45,008 units (2012: 45,008 units) in the Trust. AustralandProperty Trust also owns 19,354,214 units (2012: 19,354,214 units) in the Trust.

21. CONTINGENCIES

The Responsible Entity for the Trust, has jointly and severally unconditionally and irrevocably guaranteed therepayment of the borrowings and financial guarantees of the Group.

At 31 December 2013 the total group borrowings guaranteed were $1,628,992 (December 2012: $1,712,889)and at balance date the facilities were drawn to $1,088,993 (December 2012: $1,352,889). The Group hasgiven indemnities for land development contract performance in the form of bank guarantees, details andestimated maximum amounts of contingent liabilities (for which no amounts are recognised in the financialstatements) are as follows:

December2013$ 000

December2012$ 000


64,646 37,711




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Balance sheet 2013 2012$'000 $'000

Current assets 52 79Total assets 113,517 112,336Current liabilities 4,692 5,123Total liabilities 4,692 5,123

Net assets 108,825 107,213

EquityContributed equity 116,257 116,008Reserves (10,861) (10,861)Undistributed income 3,429 2,066Total Equity 108,825 107,213

Profit for the year 10,732 10,570Total comprehensive income 10,732 10,570





23. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

There have been no significant events or transactions that have arisen since the end of the financial year,which in the opinion of the directors, would affect significantly the operations of the consolidated entity, theresults of those operations, or the state of affairs of the consolidated entity.


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In the directors opinion:

(a) the financial statements and notes set out on pages 105 to 129 are in accordance with the CorporationsAct 2001, including:

(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatoryprofessional reporting requirements; and

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

(b) there are reasonable grounds to believe that the Trust will be able to pay its debts as and when theybecome due and payable.

Note 1(a) confirms that the financial statements also comply with International Financial Reporting as issued by the International Accounting Standards Board.

This declaration is made in accordance with a resolution of the directors of Australand Investments Limited asthe Responsible Entity of Australand Property Trust No. 5.



DIRECTORS DECLARATIONFOR THE YEAR ENDED 31 DECEMBER 2013

Bob JohnstonManaging Director



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AUSTRALAND

Australand Holdings Limited (ABN 12 008 443 696)

Australand Property Limited (ABN 90 105 462 137, AFSL 231130) as the responsible entity of Australand Property Trust (ARSN 106 680 424) and Australand ASSETS Trust (ARSN 115 338 513)

Australand Investments Limited (ABN 12 086 673 092, AFSL 228837) as the responsible entity of Australand Property Trust No.4 (ARSN 108 254 413) and Australand Property Trust No.5 (ARSN 108 254 771)

Registered OfficeLevel 3, Building CRhodes Corporate Park1 Homebush Bay Drive Rhodes NSW 2138Telephone: + 61 2 9767 2000Facsimile: + 61 2 9767 2900www.australand.com.au

Company SecretaryBev BookerTelephone: + 61 2 9767 2000Facsimile: + 61 2 9767 2900Email: [email protected]

How to contact usAt www.australand.com.au click on ‘Contact Us’ and you can email your enquiry and let us know the most convenient way for us to respond to you.

AUSTRALAND STATE OFFICES

Head Office SydneyLevel 3, Building CRhodes Corporate Park1 Homebush Bay DriveRhodes NSW 2138Telephone: + 61 2 9767 2000Facsimile: + 61 2 9767 2900PO Box 3307Rhodes NSW 2138DX 8419 Ryde

Melbourne Commercial & IndustrialFreshwater PlaceLevel 14, 2 Southbank BoulevardSouthbank VIC 3006Telephone: + 61 3 9426 1000Facsimile: + 61 3 9426 1051

ResidentialLevel 9, 484 St Kilda RoadMelbourne VIC 3004Telephone: +61 3 9258 1200Facsimile: +61 3 9258 1212

BrisbaneLevel 3, 154 Melbourne StreetSouth Brisbane QLD 4101Telephone: + 61 7 3249 7400Facsimile: + 61 7 3249 7456PO Box 3439South Brisbane Business Centre QLD 4101

PerthLevel 2, 115 Cambridge StreetWest Leederville WA 6007Telephone: +61 8 9214 7900Facsimile: +61 8 9214 7910PO Box 1216West Leederville WA 6901

SHARE REGISTRY

Link Market Services Limited1A Homebush Bay DriveRhodes NSW 2138Locked Bag A14Sydney South NSW 1235Telephone: +61 1300 554 474 Facsimile: +61 2 9287 0309www.linkmarketservices.com.au

AUSTRALIAN SECURITIES EXCHANGE

Exchange Centre20 Bridge StreetSydney NSW 2000

ANNUAL REPORT

To request a copy of the Annual Report please call +61 2 9767 2000

A copy of Australand’s Complaints Handling and Dispute Resolution Policy can be accessed from the website on www.australand.com.au under ‘Corporate Governance’.

Corporate Directory

Corporate Directory 133

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