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Directors’ Report

The Directors of Scentre Management Limited, as responsible entity of the Trust (Responsible Entity or Company), submit the following report for

the year ended 30 June 2015 (Financial Year).

1. OPERATIONS AND ACTIVITIES

1.1 Principal Activity

The principal activity of the Trust during the Financial Year was the long term ownership of a 50% interest in Westfield Carindale shopping centre,

which is located in the suburb of Carindale, east of Brisbane.

The centre is one of Australia’s top 5 shopping centres based on retail sales featuring 2 department stores, 2 discount department stores,

3 supermarkets, an 8–screen cinema complex and more than 400 specialty retailers. As at 30 June 2015, the centre was in excess of 99.5%

leased with retail sales of $913.0 million.

As at 30 June 2015, the centre has been independently valued at $1,530.2 million (the Trust’s share $765.1 million), representing a revaluation gain

of $31.0 million since 30 June 2014.

1.2 Financial Results

The Trust’s net property income for the Financial Year was $41.2 million, representing a 6.1% increase on the previous year.

Funds from operations for the Financial Year (which excludes unrealised fair value adjustments of $31.1 million) was $24.5 million compared to

$21.7 million in the previous financial year, representing a 12.6% increase.

As at 30 June 2015, total assets of the Trust increased 5.0% to $771.6 million and total unit holder funds attributable to members were

$532.9 million.

The net tangible asset backing as at 30 June 2015 was $7.61 per unit, representing an 6.2% increase on last year primarily as a result of the

property revaluation.

The Trust has a secured loan facility. As at 30 June 2015, borrowings were $209.9 million with a gearing of 27.4% of the latest property value.

The total amount to be distributed to members for the Financial year is $24.5 million, representing a full year distribution of 34.97 cents per unit.

Details of interim distributions are set out in section 3 of this report.

Profit after tax, funds from operations and distribution for the period

30 Jun 15

30 Jun 14

$’000

$’000

Net property income

41,240

38,867

Manager's service charge

(4,590)

(4,272)

Overheads

(310)

(395)

Net fair value gain on interest rate derivatives

1,408

2,265

Net financing costs

(13,073)

(13,729)

Property revaluation

30,970

49,104

Profit attributable to members of the Trust

55,645

71,840

Adjustments:

– Property revaluation

(30,970)

(49,104)

– Tenant allowances amortised

1,215

1,276

– Net fair value gain on interest rate derivatives

(1,408)

(2,265)

Funds from operations (FFO)

24,482

21,747

Amount transferred to other reserves

(3)

(47)

Distributable Amount

24,479

21,700

FFO per unit

34.97

31.07

Distributable Amount per unit

34.97

31.00

1.3 Future Prospects

Statements as to future prospects must be assessed in light of the Trust’s principal activity, which is the ownership of its shopping centre asset, Westfield

Carindale in Brisbane. The Directors are pleased with the performance of Westfield Carindale which has performed well following the completion of the

redevelopment in 2012. Forecast FFO and distribution per unit is expected to increase 12-14% for the financial year ending 30 June 2016. This reflects

growth in net operating income and lower interest costs.

1.4 Risks

The Trust’s sole investment is a 50% interest in Westfield Carindale, and as such is exposed to the risks inherent in the ownership of a single asset.

The performance of the Trust may be affected by the local economic and retail conditions in south east Queensland specifically and Australia more

generally.

There were no significant changes in the nature of that activity or the state of affairs for the Trust during the Financial Year. No matter or

circumstance has arisen since the end of the Financial Year that has significantly affected, or may significantly affect, the Trust’s operations, the

results of those operations, or the Trust’s state of affairs, in future financial years.

1.5 Subsequent Events

Since 30 June 2015, the Trust has refinanced its $230 million bank facility with the same financial institutions at a lower cost and with a maturity

to 31 August 2020. In addition, the Trust has hedged an additional $40 million of its interest rate exposure.

26 / Carindale Property Trust

Annual Report 2015