2003 Full Financial Report for

Transcription

1 Full Financial Report for Macquarie Martin Place Trust (ARSN ) Macquarie Direct Property Management Limited (ABN ) is a wholly owned subsidiary of Macquarie Bank Limited and is the Responsible Entity of Macquarie Martin Place Trust. Investments in this Trust are not deposits with nor liabilities of Macquarie Bank Limited (ABN ) nor any Macquarie Bank Group company and are subject to investment risk including possible delays in repayment and loss of income or principal invested. Neither Macquarie Bank Limited, Macquarie Direct Property Management Limited nor any Macquarie Bank Group company guarantees the performance of the Trust or the repayment of capital from the Trust. This report does not contain investment advice nor is it an offer to invest in units of the Trust. This report has been prepared without taking into account the personal objectives, financial situation or needs of particular individuals. Before acting, we recommend potential investors speak to a financial and/or other professional adviser. Macquarie Direct Property Management Limited is entitled to fees for acting in the capacity of Responsible Entity. Macquarie Bank Limited, its related bodies corporate and officers and directors of those entities may hold units in the Trust from time to time.

2 DIRECTORS REPORT The directors of Macquarie Direct Property Management Limited (manager), the responsible entity of Macquarie Martin Place Trust (MMPT, Trust), present their report together with the financial report of the Trust, and the consolidated financial report of MMPT and its controlled entities for the financial year ended 30 June. 1. Directors The following persons held office as directors of Macquarie Direct Property Management Limited during the financial year and up to the date of this report: Stephen Girdis Ian Pratt James Rae Richard Cutler Simon Jones (appointed 17 April as alternate for Stephen Girdis). 2. Principal Activities of the Trust The principal activity of MMPT during the financial year was property investment. There were no other significant changes in the nature of the Trust s activities during the financial year. 3. Distributions The distribution of MMPT s income for the financial year ended 30 June was 7.80 cents per unit. Interim distributions of 1.95, 1.95 and 1.95 cents per unit, were paid on 31 October, 7 February and 30 April respectively. A final distribution for the financial year ended 30 June of 1.95 cents per unit was paid on 11 August. 4. Review of Operations The performance of MMPT, as represented by the results of its operations, was as follows: Net Income from Property Investment in Joint Venture Entities 16,991 2,216 Net Profit 4,989 1, Value of Assets Value of Trust Assets 230, ,341 The value of the Trust s assets is derived using the basis set out in Note 1 to the financial statements. 1

3 DIRECTORS REPORT (Cont.) 6. Interests in the Trust The movement in equity of MMPT during the financial year is set out below: Special Units Issued during the Year - 213,125,000 Special Units Redeemed during the Year (213,125,000) - Units Issued under Prospectus during the Year 102,000,000 - Units on Issue 102,000, ,125, Changes in the State of Affairs In the opinion of the directors, there were no other significant changes in the state of affairs of MMPT that occurred during the financial year under review. 8. Matters Subsequent to the End of the Financial Year Since the end of the financial year, the directors are not aware of any other matter or circumstance not otherwise dealt with in the report or financial report that has significantly affected or may significantly affect the operations of MMPT, the results of those operations or the state of affairs of MMPT in the financial years subsequent to the financial year ended 30 June. 9. Likely Developments and Expected Results of Operations At the time of making this report, it is anticipated that the results of MMPT will be in accordance with Prospectus forecasts. 10. Indemnification and Insurance of Officers and Auditor No insurance premiums are paid for out of the assets of MMPT in regards to insurance cover provided to either the officers of Macquarie Direct Property Management Limited or the auditor of the Trust. So long as the officers of Macquarie Direct Property Management Limited act in accordance with the Trust Constitution (Constitution) and the Corporations Act 2001, the officers remain indemnified out of the assets of MMPT against losses incurred while acting on behalf of MMPT. The auditor of MMPT is in no way indemnified out of the assets of the Trust. 11. Fees Paid to and Interests Held in the Trust by the Manager or its Associates Fees paid or payable to the manager and its associates by MMPT during the financial year are disclosed in Note 3 to the financial statements. The interests in MMPT held by the manager or its associates as at 30 June are disclosed in Note 18 to the financial statements. 12. Environmental Regulations The operations of MMPT are not subject to any particular environmental regulations under a Commonwealth, State or Territory law. 2

4 DIRECTORS REPORT (Cont.) 13. Rounding of Amounts to the Nearest Thousand Dollars MMPT is a registered scheme of the kind referred to in Class Order 98/0100 issued by the Australian Securities and Investments Commission (ASIC) relating to the rounding off of amounts in the directors report and financial report. Amounts in the directors report and financial report have been rounded to the nearest thousand dollars in accordance with that Class Order, unless otherwise indicated. This report is made in accordance with a resolution of the Board of Directors. Stephen Girdis Chairman Sydney 12 September 3

5 FINANCIAL REPORT STATEMENTS OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE Income Note Consolidate d Consolidate d Net Income from Property Investment in Joint Venture Entities Net Property Rental Income - No. 1 Martin Place Office Tower Trust 15,560-1,984 - Net Property Rental Income - No. 1 Martin Place Car Park Trust 1, Net Income from Property Investment in Joint Venture Entities 9(ii) 16,991-2,216 - Other Income Investment Income - 16,991-2,216 Interest Income Total Income 17,650 17,650 2,225 2,225 Expenditure Manager s Fee Borrowing Costs 8,137 8, Trust Establishment Costs 3,822 3, Other Expenses Total Expenditure 12,661 12, Net Profit 5 4,989 4,989 1,570 1,570 Distribution Net Profit 4,989 4,989 1,570 1,570 Undistributed Income Brought Forward Transfer from Reserves 14 3,822 3, Undistributed Income Carried Forward 5 (864) (864) (9) (9) Distribution Paid and Payable 5,6 7,956 7,956 1,561 1,561 Distribution Paid and Payable per Unit (cents) Basic Earnings per Unit (cents) Diluted Earnings per Unit (cents) The above Statements of Financial Performance should be read in conjunction with the accompanying notes. 4

6 STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE Current Assets Note Cash 15 3,544 3, Receivables 7 2,081 14,068-2,216 Total Current Assets 5,625 17,612-2,216 Non-Current Assets Investments 8 225, , , ,125 Total Non-Current Assets 225, , , ,125 Total Assets 230, , , ,341 Current Liabilities Cash Overdraft Payables 10 2,091 2, Provisions 11 1,989 1,989 1,561 1,561 Total Current Liabilities 4,080 4,080 2,207 2,207 Non-Current Liabilities Interest Bearing Liabilities , , Total Non-Current Liabilities 127, , Total Liabilities 131, ,955 2,207 2,207 Net Assets 98,782 98, , ,134 Equity Contributed Equity , , , ,125 Reserves 14 (3,822) (3,822) - - Undistributed Income Total Equity 98,782 98, , ,134 The above Statements of Financial Position should be read in conjunction with the accompanying notes. 5

7 STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE Cash Flows from Operating Activities Note Inflows/ (Outflows) Inflows/ (Outflows) Inflows/ (Outflows) Inflows/ (Outflows) Amounts Received on Behalf of Controlled Entities - 17, Amounts Paid on Behalf of Controlled Entities - (11,987) - - Operating Expenses Paid (552) (525) - - Interest Received Net GST Received from ATO Net Cash Flows from Operating Activities , Cash Flows from Investing Activities Distributions Received from Joint Venture Investments 17, Payments for Investments (11,987) Net Cash Flows from Investing Activities 5, Cash Flows from Financing Activities Proceeds from Borrowings 127, , Borrowing Costs Paid (6,326) (6,326) (626) (626) Proceeds from Issue of Units 102, , Payments for Redemption of Units (213,125) (213,125) - - Issue Costs Paid (260) (260) - - Trust Establishment Costs Paid (3,822) (3,822) - - Distributions Paid to Unitholders (7,528) (7,528) - - Net Cash Flows from Financing Activities Net Increase/(Decrease) in Cash Held (1,186) (1,186) 4,161 4,161 Cash at the Beginning of the Year (617) (617) - - Cash at the End of the Year 15 3,544 3,544 (617) (617) (626) (617) The above Statements of Cash Flows should be read in conjunction with the accompanying notes. (626) (617) 6

8 FOR THE YEAR ENDED 30 JUNE 1. Significant Accounting Policies The significant policies which have been adopted in the preparation of these financial statements are stated to assist in a general understanding of the financial report. (a) Basis of Preparation This financial report has been prepared in accordance with the historical cost convention, except for certain assets which, as noted, are at fair value. The financial report of MMPT is a general purpose financial report and has been prepared in accordance with the requirements of the Constitution and in accordance with Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Consensus Views and the Corporations Act The accounting policies adopted in preparing the financial report have been consistently applied by the Trust except as otherwise indicated. (b) Principles of Consolidation The consolidated financial statements incorporate the assets and liabilities of all entities controlled by the Trust as at 30 June and for the financial year then ended. The effects of all transactions in the consolidated entity are eliminated in full. (c) Valuation of Investments The Trust was established for the purpose of acquiring a 50% investment in the office tower and car park located at No. 1 Martin Place, Sydney through two joint venture entities with Macquarie Office Trust. The consolidated entity exercises significant influence over these investments, but neither the consolidated entity nor its joint venture partner has control in its own right, irrespective of its ownership interest. The consolidated entity s investments in the properties are held via a 50% interest in two joint venture entities. Accordingly, the consolidated entity s investment in the joint venture entities is accounted for using the equity method, in accordance with Accounting Standard AASB 1006: Interests in Joint Ventures. Under this method, the consolidated entity s share of the profits or losses of the joint venture entities is recognised as income in the Statements of Financial Performance, and its share of movements in reserves is recognised in the Statements of Financial Position. All acquisition costs in respect of the joint venture entities acquired have been capitalised into the value of the investment at the time of purchase to reflect the total acquisition cost in the Statements of Financial Position. (d) Depreciation Land and buildings have the function of an investment and are regarded as a composite asset. In accordance with Accounting Standards, investment properties are not subject to depreciation. Accordingly, the buildings and any component thereof (including plant and equipment) are not depreciated. Taxation allowances for the depreciation of buildings and plant and equipment are claimed by the consolidated entity and contribute to the tax deferred components of distributions. 7

9 FOR THE YEAR ENDED 30 JUNE 1. Significant Accounting Policies (Cont.) (e) Receivables Receivables are carried at the amounts due to MMPT and its controlled entities and are due for settlement within 30 days of recognition. The collectability of debts is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off in the relevant period in which they are identified. A provision for doubtful debts is raised where some doubt as to collection exists. (f) Borrowing Costs Borrowing costs associated with the acquisition or construction of a qualifying asset are capitalised as part of the cost of that asset. Borrowing costs not associated with qualifying assets are capitalised and amortised over the term of the borrowing period. (g) Deferred Expenditure Significant items of expenditure having a future benefit are amortised over the periods to which they relate. (h) Payables Liabilities are recognised for amounts to be paid in the future for goods or services received, whether or not billed to MMPT and its controlled entities. The amounts are unsecured and are usually paid within 30 or 60 days of recognition. (i) Interest Bearing Liabilities Bank loans are carried at their principal amounts. Interest is accrued on bank loans over the relevant period it becomes due and is recorded as part of payables, in current liabilities. (j) Equity Transaction Costs Transaction costs arising on the issue of equity are recognised directly in equity as a reduction of the proceeds of equity instruments to which the costs relate. (k) Capital Reserve In accordance with the Constitution, amounts may be transferred from the capital reserve to fund distributions. (l) Income Tax Under current income tax legislation, MMPT is not liable to income tax provided its taxable income (including assessable realised capital gains) is fully distributed to unitholders. 8

10 FOR THE YEAR ENDED 30 JUNE 1. Significant Accounting Policies (Cont.) (m) Derivatives The Trust has entered into an interest rate swap agreement to hedge against the risk of an increase in interest rates. Derivative financial instruments are not held for speculative purposes and are not recognised in the financial statements on inception. The net payments or receipts due under the swap agreement are accounted for on an accruals basis and are included in interest expense. (n) Comparative Figures Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current financial year. 2. Trust Formation and Termination MMPT was established on 10 April and operations of the Trust commenced with the acquisition of a 50% interest in the office tower and car park located at No. 1 Martin Place, Sydney on 3 May. MMPT will terminate on its 80th anniversary unless terminated earlier in accordance with the provisions of the Constitution. 3. Manager's Fee The manager of MMPT is Macquarie Direct Property Management Limited, a wholly owned subsidiary of Macquarie Bank Limited. The manager s fee of $635,000 (period to 30 June : nil) is calculated as 3.6% per annum of the total income of MMPT, payable quarterly in arrears. MMPT does not provide any other benefits to the manager other than those described in Note Other Expenses* ASIC Fees Audit Fees Bank Fees Compliance Fees Postage Printing Registry Fees Taxation Advice Fees Valuation Fees Other *Other expenses have been paid in accordance with the Constitution

11 FOR THE YEAR ENDED 30 JUNE 5. Undistributed Income Note Undistributed Income Brought Forward Net Profit 4,989 4,989 1,570 1,570 Transfer from Reserves 14 3,822 3, Available for Distribution 8,820 8,820 1,570 1,570 Distributions to Unitholders during the Year 6 (5,967) (5,967) - - Provision for Distribution 6,11 (1,989) (1,989) (1,561) (1,561) Undistributed Income Carried Forward Distribution Payable Distributions paid or provided for by MMPT are: Distributions Paid Interim distributions of 1.95, 1.95 and 1.95 cents per unit, paid on 31 October, 7 February and 30 April respectively 5,967 5, Distribution Payable Final distribution of 1.95 cents per unit was paid on 11 August 1,989 1,989 1,561 1,561 Total Distributions Paid and Payable 7,956 7,956 1,561 1,561 The distribution for the financial year by MMPT was 100% tax deferred (period to 30 June : 100% tax deferred). 7. Receivables GST Receivable Loans to Controlled Entities - 14,044-2,216 Sundry Debtors 2, ,081 14,068-2,216 10

12 FOR THE YEAR ENDED 30 JUNE 8. Investments Office Tower, No. 1 Martin Place, Sydney* 205, ,184 - Car Park, No. 1 Martin Place, Sydney* 19,991-19,157 - Investments in Controlled Entities - 213, , , , , ,125 *The properties are held by the consolidated entity through a 50% joint venture arrangement. The properties were last independently valued on 31 March at $ million. The consolidated entity s 50% share of the valuation of these properties is $ million. The valuer was Simon Fairfax, B Sc (Hons), MRICS, AAPI, Certified Practising Valuer, CB Richard Ellis Pty Ltd. Carrying Amount at Beginning of the Year 215, , Additions 9, , ,125 Disposals Revaluation Increments Carrying Amount at End of the Year 225, , , , Property Investment in Joint Venture Entities The consolidated entity has a 50% investment in each of No. 1 Martin Place Office Tower Trust and No. 1 Martin Place Car Park Trust. The consolidated entity has joint control over these trusts, but neither the consolidated entity nor its joint venture partner has control in its own right. The investments are accounted for in the financial statements using the equity method of accounting (refer to Note 1(c)). Information relating to the joint venture entities is detailed below. (i) Carrying Amount of Investment in Joint Venture Entities Joint Venture Entity Principal Activity No. 1 Martin Place Office Tower Trust Property Investment 205, ,184 No. 1 Martin Place Car Park Trust Property Investment 19,991 19,157 11

13 FOR THE YEAR ENDED 30 JUNE 9. Property Investment in Joint Venture Entities (Cont.) (i) Carrying Amount of Investment in Joint Venture Entities (Cont.) Carrying Amount at the Beginning of the Year 215,341 - Cost of Acquisition 11, ,125 Share of Net Profit 16,991 2,216 Distributions Paid and Payable for the Year (19,206) - Carrying Amount at the End of the Year 225, ,341 (ii) Results Attributable to Joint Venture Entities Property Rental Income 17,150 2,566 Property Expenses (refer below) (159) (350) Net Profit 16,991 2,216 Property Expenses Airconditioning Building Intelligence and Emergency System 60 - Building Supervisor Car Park Levies Cleaning Consulting Fees 8 - Council Rates Electricity and Gas Fire Protection Gardening 6 - Insurance 1, Land Tax Lifts Property Management Fees Repairs and Maintenance Security Telephones 35 2 Water Rates Other , Less: Recoveries from Tenants (4,408) - Property Expenses

14 FOR THE YEAR ENDED 30 JUNE 9. Property Investment in Joint Venture Entities (Cont.) (iii) Share of Joint Venture Entities Assets and Liabilities Current Assets Cash 3,369 2,963 Receivables Other Total Current Assets 3,691 3,239 Non-Current Assets Property Investments 213, ,125 Total Non-Current Assets 213, ,125 Total Assets 216, ,364 Current Liabilities Payables 3,691 1,023 Total Current Liabilities 3,691 1,023 Total Liabilities 3,691 1,023 Net Assets 213, , Payables Sundry Creditors and Accruals Interest Payable 1,810 1, Manager s Fee ,091 2, Provisions Distribution Opening Balance 1,561 1, Amount Available for Distribution 8,820 8,820 1,570 1,570 Paid during the Year (7,528) (7,528) - - Undistributed Income Carried Forward (864) (864) (9) (9) Closing Balance* 1,989 1,989 1,561 1,561 *The provision for distribution represents the distribution of MMPT for the quarter ended 30 June, which was paid on 11 August (period to 30 June : 26 March ). 13

15 FOR THE YEAR ENDED 30 JUNE 12. Interest Bearing Liabilities Bank Loan* 127, , *The bank loan is secured by a registered first mortgage over the property investments held by the consolidated entity. 13. Contributed Equity No. of Units Details Date ,124, ,125,000 (213,125,000) Special Units Issued on Settlement of Trust 10 April Special Units Issued 3 May , ,125 Units on Issue Special Units Redeemed during the Year Ordinary 102,000,000 Units Issued 102,000,000 Units on Issue 30 June 213, , , ,125 8 August (213,125) (213,125) August (1) 101, , June 101, , , ,125 (1) Net of transaction costs of $260,000. As stipulated in the Constitution, each unit represents a right to an individual share in the Trust and does not extend to a right to the underlying assets of the scheme. There are no separate classes of units and each unit has the same rights attaching to it as all other units in the Trust. 14. Reserves Capital Reserve Opening Balance Transfer to Distribution (3,822) (3,822) - - Closing Balance (3,822) (3,822)

16 FOR THE YEAR ENDED 30 JUNE 15. Reconciliation of Cash For the purposes of the Statements of Cash Flows, cash includes cash on deposit. Cash as at 30 June as shown in the Statements of Cash Flows is reconciled to the related item in the Statements of Financial Position as follows: Cash on Deposit/(Cash Overdraft) 3,544 3,544 (617) (617) Total Cash 3,544 3,544 (617) (617) 16. Reconciliation of Net Profit to Net Cash Flows From Operating Activities Net Profit 4,989 4,989 1,570 1,570 Classified as Financing Activities Borrowing Costs 8,137 8, Trust Establishment Costs 3,822 3, Classified as Investing Activities Distributions Received from Joint Venture Entities (16,991) Net Income from Property Investment in Joint Venture Entities - - (2,216) - Change in Assets and Liabilities Increase in Assets Receivables (25) (11,853) - (2,216) Increase in Liabilities Payables Net Cash Flows from Operating Activities 184 5, Net Tangible Assets Net tangible assets are calculated as follows: Total Tangible Assets 230, , , ,341 Less: Total Liabilities (131,955) (131,955) (2,207) (2,207) Net Tangible Assets 98,782 98, , ,134 Total Number of Units on Issue 102,000, ,000, ,125, ,125,000 Net Tangible Asset Backing per Unit $0.97 $0.97 $1.00 $

17 FOR THE YEAR ENDED 30 JUNE 18. Related Party Transactions Manager The manager of MMPT is Macquarie Direct Property Management Limited, a wholly owned subsidiary of Macquarie Bank Limited. Directors The names of persons who were directors of Macquarie Direct Property Management Limited at any time during the financial year are as follows: Stephen Girdis Ian Pratt James Rae Richard Cutler Simon Jones (appointed 17 April as alternate for Stephen Girdis). No amounts were paid by the Trust directly to the directors of the manager. Manager s Fee and Other Transactions Under the terms of the Constitution, the manager is entitled to receive a management fee of 3.6% per annum of the total income of MMPT. Fees are to be paid on a quarterly in arrears basis. Manager s fee for the financial year paid or payable directly by the Trust Syndication fee received by the manager on the Trust s purchase of the properties 10, The manager paid any relevant commissions in relation to the equity raising from the fee. As at 30 June, MMPT held funds totalling $3,544,000 (: nil) on deposit with Macquarie Bank Limited. These balances may differ from the Statements of Financial Position due to unsettled transactions. MMPT earns interest on deposits at commercial rates. Interest income from these deposits totalling $659,000 (period to 30 June : $9,000) was included in the determination of the net profit for MMPT for the financial year ended 30 June. The above transactions were based on normal commercial terms and conditions. Units Held by the Manager and Related Bodies Corporate of the Manager The aggregate number of MMPT units held directly, indirectly or beneficially by directors or related bodies corporate at 30 June was 9,469,370 (: nil). Related bodies corporate and their associates of the manager held nil units (: 213,125,000) in MMPT as at 30 June. 19. Segment Information The Trust is an unlisted property trust which invests in the commercial property market in Australia. 16

18 FOR THE YEAR ENDED 30 JUNE 20. Earnings per Unit Basic Earnings per Unit (cents) Diluted Earnings per Unit (cents) Weighted Average Number of Units on Issue Used in the Calculation of Basic Earnings per Unit 102,000, ,125,000 Net Profit of $4,989,000 (period to 30 June : $1,570,000) was used as earnings in calculating the basic and diluted earnings per unit for the consolidated entity. 21. Additional Financial Instruments Disclosures (a) Terms and Conditions Cash Surplus funds of MMPT are held at call in the operating account of MMPT. Interest is receivable monthly in arrears. At 30 June, the interest rate on these funds was 3.96% per annum (: 3.96% per annum). Bank Loan The bank loan is an interest only loan and is due for repayment on 10 July Details of security held by the bank are included in Note 12. The interest rate on the borrowings is variable and is reset monthly. As at 30 June, the interest rate on the borrowings including margin was 5.45% per annum. Interest Rate Swap The manager has entered into an interest rate swap agreement that entitles it to receive interest, at quarterly intervals, at a floating rate on a notional principal, of $127,875,000, and obliges it to pay interest at a fixed rate on the same amount. The swap agreement allows the Trust to raise long term borrowings at a floating rate and effectively swap them into a fixed rate. On 6 August, the responsible entity, on behalf of MMPT, drew down bank finance of $127,875,000. The swap agreement terminates in July As at 30 June, the fixed rate on the swap agreement was 7.20% per annum (: 7.25% per annum). 17

19 FOR THE YEAR ENDED 30 JUNE 22. Additional Financial Instruments Disclosures (Cont.) (b) Interest Rate Risk The Trust s exposure to interest rate risk and the effective interest rate on financial instruments at balance date are: Entity 30 June Floating Interest Rate Fixed Interest Rate Maturing 1 Year or Less 1 to 5 Years Over 5 Years Non- Interest Bearing Total Assets Cash 3, ,544 Receivables ,081 2,081 Total Financial Assets 3, ,081 5,625 Weighted Average Effective Interest Rate (% pa) 3.96% Liabilities Payables ,091 2,091 Interest Bearing Liabilities , ,875 Distribution Payable ,989 1,989 Total Financial Liabilities ,875-4, ,955 Weighted Average Effective Interest Rate (% pa) 7.20% Net Financial Assets/(Liabilities) 3,544 - (127,875) - (1,999) (126,330) 18

20 FOR THE YEAR ENDED 30 JUNE 22. Additional Financial Instruments Disclosures (Cont.) (b) Interest Rate Risk (Cont.) Entity 30 June Floating Interest Rate Fixed Interest Rate Maturing 1 Year or Less 1 to 5 Years Over 5 Years Non- Interest Bearing Total Total Financial Assets Liabilities Cash Overdraft Payables Distribution Payable ,561 1,561 Total Financial Liabilities ,590 2,207 Weighted Average Effective Interest Rate (% pa) 3.96% Net Financial Liabilities (617) (1,590) (2,207) Reconciliation of Net Financial Liabilities to Net Assets Note Net Financial Liabilities as Above (126,330) (2,207) Non-Financial Assets Joint Venture Investments 8 225, ,341 Net Assets per Statements of Financial Position 98, ,134 (c) Credit Risk Credit risk represents the economic loss that would be recognised if counterparties failed to perform as contracted. Financial Instruments Recognised in the Statements of Financial Position The credit risk on the financial assets of MMPT which have been recognised in the Statements of Financial Position is the carrying amount, net of any provisions for doubtful debts. (d) Net Fair Values of Financial Assets and Liabilities Financial Instruments Recognised in the Statements of Financial Position The financial assets and liabilities of MMPT are carried at amounts that approximate their net fair value. 19

21 FOR THE YEAR ENDED 30 JUNE 23. Remuneration of Auditor During the financial year, the auditor of MMPT, PricewaterhouseCoopers, and its related practices earned the following remuneration: $ $ $ $ Audit of the Financial Report 9,020 9,020 8,350 8,350 Other Assurance Services 30,000 30, Taxation 7,338 7,338 1,575 1,575 Total Remuneration 46,358 46,358 10,475 10,475 20

22 DIRECTORS DECLARATION The directors of Macquarie Direct Property Management Limited, the responsible entity, declare that the financial statements as set out on pages 4 to 20: (a) comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and (b) give a true and fair view of MMPT s and the consolidated entity s financial position as at 30 June and of their performance, as represented by the results of their operations and their cash flows, for the year ended on that date. In the directors opinion: (a) (b) the financial statements and notes are in accordance with the Corporations Act 2001; and there are reasonable grounds to believe that MMPT will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors. Stephen Girdis Chairman Sydney 12 September 21

23

24