BlackWall Property Trust

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ASX'Release'

BWR'Produces'26%'Total'Return'
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Key$Details$

•  A' final' distribution' of' 4' cents' per' unit! to!
be! paid! on! 9! November! 2016! –! 100%! taxR
deferred.!!

•  26%'total'return!for!the!12!months!ended!

30!June!2016.!

•  Gross!assets!up!16%!to!$139!million.!!

Units'on'Issue!

Gross'Assets!

Debt!

NTA!

EPU!

About$the$Trust$

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24!August!2016!

57.8!million!

$139!million!

45%!LVR!'

$73!million!R!$1.27!pu!

19!cpu!

BlackWall!Property!Trust!is!a!totalOreturn'real'estate'investment'trust.'It!generates!and!distributes!income!
returns!from!assets!held!in!its!Income'Portfolio!and!takes!on!special!situations!or!development!properties!to!
generate!above!average!NTA!gains!R!the!Growth'Portfolio.!!Once!assets!in!the!Growth!Portfolio!stabilise!or!
mature,! they! move! to! the! Income! Portfolio! to! grow! distributions.! The! Trust! either! purchases! real! estate!
directly!or!holds!positions!in!property!joint!ventures.!!

As! at! 30! June! 2016! the! Trust! had! $15! million! of! carried! forward! revenue! losses! and! approximately! $17!
million!of!capital!losses.!As!a!consequence!for!a!significant!period!all!distributions!will!be!100%!taxRdeferred.!$

The!Trust’s!Income'Portfolio!has!a!WALE!of!just!under!5!years!and!is!carried!on!a!weighted!average!passing!
yield!of!9%.!!!

“The! Trust! holds! two! small! industrial! properties! which! are! legacy! assets! acquired! under! previous!
management”! said! Jess! Glew,! BlackWall’s! Head! of! Property.! “We! have! listed! them! for! sale! and! if! our! price!
expectation!is!reached!their!sale!will!add!over!$10!million!of!capacity!to!the!balance!sheet.”!!

The! Trust’s! Growth' Portfolio! is! invested! in! the! recently! acquired! WOTSO! House! in! the! ACT,! 55! Pyrmont!
Bridge!Road!in!Sydney!and!the!Bakehouse!Quarter!in!North!Strathfield.!!

The! Bakehouse! Quarter! has! significant! residential! development! potential! in! addition! to! the! existing! 40,000!
sqm!of!commercial,!retail!and!development!uses.!A!master!plan!approval!has!been!lodged!seeking!increased!
density!and!scale!to!accommodate!the!construction!of!up!to!1,000!apartments.!The!aim!is!to!secure!the!town!
planning!and!then!joint!venture!the!residential!development!opportunities!or!sell!the!development!sites.!!

WOTSO!House!and!55!Pyrmont!Bridge!Road!are!leasing!turnaround!projects!that!are!both!gaining!traction.!At!
WOTSO! House! just! over! 4,400! sqm! of! the! available! 8,000! sqm! is! occupied.! At! Pyrmont! BlackWall! recently!
completed!a!1,600!sqm!office!transaction!with!an!ASX!200!company.!!

BlackWall! expects! all! three! projects! to! contribute! significantly! to! both! NTA! and! income! growth! over! the!
coming!years.!!

For!more!information!contact!Stuart!Brown,!Chief!Executive!Officer!or!Tim!Brown!(Chief!Financial!Officer)!on!
+!612!9033!8611.!

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BLACKWALL'PROPERTY'TRUST'ABN!68!450!446!602'
BLACKWALL'FUND'SERVICES'LIMITED!(Responsible!Entity)!ABN!39!079!608!825!(AFSL!No.!220242)!
Level! 1,! 50! Yeo! Street,! Neutral! Bay,! Sydney! NSW! 2089! Australia | PO! Box! 612,! Neutral! Bay,! NSW!
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2089!|'Tel!+61!2!9033!8611 |'Fax!+61!2!9033!8600 |'www.blackwall.com.au!

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BLACKWALLPROPERRTYTUSTANNUAL REPORT  |  JUNE 2016BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 20162CONTENTS	2		Financial	Statements			Directors’	Report	(Part	1)			Page	3		Consolidated	Statement	of	Profit	or	Loss	and	Other	Comprehensive		Income			Page	7		Consolidated	Statement	of	Financial	Position			Page	8		Consolidated	Statement	of	Changes	in	Net	Assets	Attributable		to	Unitholders			Page	9		Consolidated	Statement	of	Cash	Flows			Page	10		Notes	to	the	Financial	Statements			Page	11		Directors’	Report	(Part	2)			Page	28		Auditor’s	Independence	Declaration			Page	32		Directors’	Declaration			Page	33		ASX	Additional	Information			Page	34		Trust	Details			Page	36		Independent	Auditor’s	Report			Page	37		Contents	–	Notes	to	the	Financial	Statements			Page	39		Glossary			Page	40													BLACKWALLPROPERRTYTUST3BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016DIRECTORS’ REPORT (Part 1)		3		Key	Details							(cid:120) A	final	distribution	of	4	cents	per	unit	to	be	paid	on	9	November	2016	–	100(cid:936)	ta(cid:154)(cid:486)deferred(cid:484)	(cid:120) 26%	total	return	for	the	12	months	ended	30	(cid:13)une	2016(cid:484)	(cid:120) Gross	assets	up	16(cid:936)	to	(cid:836)139	million(cid:484)			About	BWR		(cid:5)lac(cid:141)(cid:26)all	Property	Trust	is	a	total(cid:486)return	real	estate	investment	trust(cid:484)	It	generates	and	distributes	income	returns	from	assets	held	in	its	Income	Portfolio	and	ta(cid:141)es	on	special	situations	or	development	properties	to	generate	above	average	NTA	gains	(cid:486)	the	Growth	Portfolio(cid:484)		Once	assets	in	the	Growth	Portfolio	stabilise	or	mature(cid:481)	they	move	to	the	Income	Portfolio	to	grow	distributions(cid:484)	The	Trust	either	purchases	real	estate	directly	or	holds	positions	in	property	(cid:140)oint	ventures	(P(cid:13)(cid:25))(cid:484)			As	at	30	(cid:13)une	2016	the	Trust	had	(cid:836)1(cid:887)	million	of	carried	forward	revenue	losses	and	appro(cid:154)imately	(cid:836)17	million	of	capital	losses(cid:484)	As	a	conse(cid:147)uence	for	a	significant	period	all	distributions	will	be	100(cid:936)	ta(cid:154)(cid:486)deferred(cid:484)			Income	Portfolio		The	Trust’s	Income	Portfolio	has	a	(cid:26)AL(cid:8)	of	(cid:140)ust	under	(cid:887)	years	and	is	carried	on	a	weighted	average	passing	yield	of	9(cid:936)(cid:484)				The	Coolum	and	Toowoomba	industrial	assets	are	legacy	investments	which	are	small	and	not	consistent	with	(cid:5)lac(cid:141)(cid:26)all’s	strategy	for	the	Trust(cid:484)	Accordingly(cid:481)	they	are	being	mar(cid:141)eted	for	sale	and	will	be	sold	if	offers	are	received	at	a	sufficient	premium	to	the	Trust’s	carrying	cost(cid:484)		If	the	sale	process	is	successful	it	could	add	over	(cid:836)10	million	of	capacity	to	the	balance	sheet(cid:484)	These	properties	have	been	reclassified	from	investment	properties	to	current	assets	in	these	financial	statements(cid:484)					Property	Ownership	Type	Asset	Value		Chancellor	(cid:11)omema(cid:141)er	Centre(cid:481)	(cid:20)ueensland	Direct	Retail	(cid:836)26(cid:484)2	million	(cid:28)andina(cid:481)	(cid:20)ueensland	Direct	Industrial	(cid:836)24(cid:484)7	million	Silver	(cid:823)	The	(cid:8)(cid:154)change(cid:481)	(cid:20)ueensland	Direct	Commercial	(cid:836)18(cid:484)0	million	The	(cid:26)oods	Action	Centre	(cid:535)	P(cid:13)(cid:25)	(cid:8)ntertainment	(cid:836)16(cid:484)(cid:887)	million	Industrials	(Coolum	and	Toowoomba)	Direct	Industrial	(cid:836)9(cid:484)9	million	Canberra	(cid:8)ye	(cid:11)ospital(cid:481)	ACT	Direct	Commercial	(cid:836)8(cid:484)0	million	*	Director’s	valuation(cid:484)			Units	on	Issue	(cid:887)7(cid:484)8	million	Income	Portfolio	(cid:836)88	million	Growth	Portfolio	(cid:836)48	million	Gross	Assets	(cid:836)139	million	Debt	4(cid:887)(cid:936)	L(cid:25)R		NTA	(cid:836)73	million	(cid:486)	(cid:836)1(cid:484)27	pu	EPU	19	cpu	Revenue	Contribution	(cid:486)	By	Tenant	News	Corp	(cid:535)	(cid:836)2(cid:481)7(cid:887)0(cid:481)000	26(cid:936)	(cid:13)oyce	(cid:16)ayne	(cid:836)7(cid:887)0(cid:481)000	7(cid:936)	A(cid:16)F	(cid:836)7(cid:887)0(cid:481)000	7(cid:936)	(cid:26)OTSO	(cid:836)7(cid:887)0(cid:481)000	7(cid:936)	Coral	(cid:11)omes	(cid:836)700(cid:481)000	7(cid:936)	30	Other	Tenants	(cid:836)4(cid:481)800(cid:481)000	46(cid:936)	*	Subject	to	regulatory	approval	to	a	purchase	by	News	Corporation	of	the	APN	News	and	Media	regional	newspaper	business.	Income	Contribution	(cid:486)	By	Asset	WALE	(cid:28)andina	26(cid:936)	10		years	Chancellor	(cid:11)omema(cid:141)er	Centre	22(cid:936)	4		years	Silver	(cid:823)	The	(cid:8)(cid:154)change	20(cid:936)	3		years	3	Other	Assets	32(cid:936)	2		years	*BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 20164DIRECTORS’ REPORT (Part 1)		Growth	Portfolio		The	Trust’s	growth	investments	include(cid:483)				Holding	Value	Asset	Value	Ownership	(cid:26)OTSO	(cid:11)ouse	(cid:486)	ACT	(cid:836)2(cid:887)(cid:484)0	million	(cid:836)2(cid:887)	million	Direct	The	(cid:5)a(cid:141)ehouse	(cid:20)uarter(cid:481)	North	Strathfield	(cid:836)20(cid:484)1	million	(cid:836)270	million	P(cid:13)(cid:25)	(cid:887)(cid:887)	Pyrmont	(cid:5)ridge	Road(cid:481)	Sydney	(cid:836)2(cid:484)8	million		(cid:836)80	million		P(cid:13)(cid:25)		WOTSO	House	is	a	7(cid:481)000	s(cid:147)m	office	building	with	180	car	spaces	located	on	Northbourne	Avenue	in	Dic(cid:141)son(cid:481)	ACT(cid:484)	The	property	is	ad(cid:140)acent	to	the	Dic(cid:141)son	retail	precinct	and	along	the	planned	route	of	the	Canberra	(cid:16)etro	light	rail(cid:484)			Until	recently	the	building	was	leased	to	Telstra	Corporation	Limited(cid:484)	Telstra	vacated	the	building	moving	its	staff	to	a	new	purpose	built	regional	head	office	in	Canberra(cid:484)			(cid:26)ith	appro(cid:154)imately	three	years	remaining	on	the	lease(cid:481)	Telstra	sub(cid:486)leased	a	total	of	2(cid:481)720	s(cid:147)m	to	the	ACT	Government	and	Sensis(cid:484)	Recently(cid:481)	Telstra	agreed	to	surrender	its	head	lease	and	pay	out	the	remainder	of	its	lease	commitment	for	(cid:836)(cid:887)	million(cid:484)	The	sub(cid:486)leases	remain	in	place	and	(cid:5)lac(cid:141)(cid:26)all	is	progressively	leasing	the	vacant	space(cid:484)	(cid:5)lac(cid:141)(cid:26)all	has	leased	(cid:140)ust	over	1(cid:481)2(cid:887)0	s(cid:147)m	since	(cid:13)uly	2016(cid:484)		(cid:5)(cid:26)R	gained	control	of	this	property	through	a	scrip	for	scrip	ta(cid:141)eover	of	an	unlisted	property	investment	structure	in	(cid:13)une	2016(cid:484)	As	such	the	debt	facility	secured	against	(cid:26)OTSO	(cid:11)ouse	is	standalone	and	is	not	cross(cid:486)collateralised	with	(cid:5)(cid:26)R’s	main	debt	facility(cid:484)	The	ma(cid:140)ority	of	the	proceeds	from	the	Telstra	lease	payout	was	applied	to	debt	repayment	so	that	debt	of	(cid:836)12	million	is	secured	against	the	carrying	value	of	(cid:836)2(cid:887)	million(cid:484)				(cid:5)lac(cid:141)(cid:26)all	estimates	that	the	vacant	space	will	be	filled	over	the	coming	12	to	18	months(cid:484)	Fully	let(cid:481)	the	property	will	generate	cash	above	debt(cid:481)	management	and	holding	costs	of	(cid:140)ust	under	(cid:836)2	million	per	annum	or	roughly	3	cents	per	unit(cid:484)		The	repositioning	of	the	asset	should	add	as	much	as	12	cents	per	unit	to	(cid:5)(cid:26)R’s	NTA	over	the	ne(cid:154)t	24	months(cid:484)					BLACKWALLPROPERRTYTUST5BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016DIRECTORS’ REPORT (Part 1)				The	Bakehouse	Quarter	is	a	large(cid:486)scale(cid:481)	mi(cid:154)ed(cid:486)use	development	in	Sydney’s	Inner	(cid:26)est	with	appro(cid:154)imately	40(cid:481)000	s(cid:147)m	of	commercial(cid:481)	entertainment	and	retail	premises	generating	significant	cash	flow(cid:484)	(cid:5)(cid:26)R	holds	13(cid:936)	of	the	wholesale	investment	trust	that	owns	the	pro(cid:140)ect(cid:484)	The	property	is	held	at	a	carrying	value	of	(cid:836)270	million	against	which	(cid:836)12(cid:887)	million	of	senior	debt	is	secured(cid:484)			In	addition	to	the	income	producing	elements	of	the	site(cid:481)	the	(cid:5)a(cid:141)ehouse	(cid:20)uarter	has	appro(cid:154)imately	20(cid:481)000	s(cid:147)m	of	developable	land(cid:484)	It	is	anticipated	that	this	land	would	be	suitable	for	substantial	residential	development(cid:484)	The	site	already	offers	significant	social	infrastructure	through	the	e(cid:154)isting	restaurant(cid:481)	retail(cid:481)	entertainment	and	commercial	office	precinct(cid:484)	The	(cid:5)a(cid:141)ehouse	(cid:20)uarter	benefits	from	the	substantial	State	and	Federal	Government	funded	infrastructure	pro(cid:140)ects	in	Sydney’s	(cid:26)estern	suburbs	such	as	(cid:26)estconne(cid:154)	and	the	Parramatta	Light	Rail(cid:484)		Consultants	have	been	engaged	to	ma(cid:141)e	an	application	for	a	re(cid:156)oning	to	ma(cid:154)imise	the	residential	development	potential	of	the	site(cid:484)	(cid:26)ith	a	successful	re(cid:156)oning	the	development	sites	will	either	be	sold	or	developed	in	(cid:140)oint	venture	with	suitable	residential	development	partners(cid:484)			During	the	201(cid:887)	financial	year	the	(cid:5)a(cid:141)ehouse	(cid:20)uarter	was	formally	mar(cid:141)eted	for	sale	as	a	result	of	a	number	of	unsolicited	approaches	to	purchase(cid:484)	Through	the	mar(cid:141)eting	process	an	offer	of	(cid:836)270	million	was	received	but	was	re(cid:140)ected	by	the	Directors(cid:484)	Subse(cid:147)uently	an	offer	(from	a	different	party)	of	(cid:836)300	million	was	declined	as	it	was	sub(cid:140)ect	to	unacceptable	conditions(cid:484)			(cid:26)hilst	a	number	of	parties	continue	to	engage	with	respect	to	a	partial	or	complete	purchase	of	the	asset(cid:481)	in	the	absence	of	an	offer	e(cid:147)uating	to	a	significant	premium	to	those	put	forward	in	201(cid:887)	the	preferred	position	is	to	hold	the	asset	for	the	long	term(cid:484)			Bakehouse Quarter Town Centre EvolutionExisting Bakehouse QuarterProposed Bakehouse Quarter Town Centre(cid:887)							55	Pyrmont	Bridge	Road	is	a	1(cid:887)(cid:481)000	s(cid:147)m	technology	and	media	hub	located	in	Pyrmont	on	the	(cid:26)estern	fringe	of	Sydney’s	C(cid:5)D(cid:484)	The	property	houses	a	number	of	media	and	technology	tenants	including	(cid:25)eri(cid:156)on(cid:481)	Fairfa(cid:154)	(cid:16)edia(cid:481)	Digital	Pacific	and	(cid:5)lac(cid:141)(cid:26)all’s	short(cid:486)term	office	and	wor(cid:141)space	business(cid:481)	(cid:26)OTSO	(cid:26)or(cid:141)Space(cid:484)	The	Trust’s	interest	in	the	pro(cid:140)ect	was	ac(cid:147)uired	through	a	scrip	for	scrip	offer	to	the	members	of	an	unlisted	managed	investment	scheme(cid:484)	Given	the	significant	number	of	acceptances	of	this	offer(cid:481)	the	relevant	trust	((cid:141)nown	as	the	(cid:5)lac(cid:141)(cid:26)all	Opportunities	Fund)	has	been	consolidated	onto	the	Trust’s	balance	sheet(cid:484)	(cid:5)(cid:26)R	intends	to	increase	its	e(cid:154)posure	to	(cid:887)(cid:887)	Pyrmont	(cid:5)ridge	Road(cid:484)				BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 20166DIRECTORS’ REPORT (Part 1)			Li(cid:141)e	(cid:26)OTSO	(cid:11)ouse	in	the	ACT(cid:481)	Pyrmont	(cid:5)ridge	Road	is	being	repositioned	following	its	ma(cid:140)or	tenants	vacating	over	6(cid:481)000	s(cid:147)m	of	space	prior	to	(cid:5)lac(cid:141)(cid:26)all	ta(cid:141)ing	control(cid:484)	Over	the	past	18	months	(cid:5)lac(cid:141)(cid:26)all	has	completed	(cid:887)(cid:481)000	s(cid:147)m	of	leasing(cid:481)	the	most	recent	of	which	was	1(cid:481)600	s(cid:147)m	with	an	ASX	200	financial	services	business(cid:484)						Subsequent	Events			To	the	best	of	the	Directors’	(cid:141)nowledge(cid:481)	since	the	end	of	the	financial	year	there	have	been	no	matters	or	circumstances	e(cid:154)cept	for	the	comments	above(cid:481)	that	have	materially	affected	the	Trust’s	operations	or	may	materially	affect	its	operations(cid:481)	state	of	affairs	or	the	results	of	operations	in	future	financial	years(cid:484)			Directors’	Report	(Part	2)	continues	on	pages	28	to	31(cid:484)		Signed	in	accordance	with	a	resolution	of	the	(cid:5)oard	of	Directors(cid:484)			Stuart	Brown		Director	Sydney(cid:481)	24	August	2016	BLACKWALLPROPERRTYTUST7BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust		ARSN	109	684	773	Consolidated	Statement	of	Profit	or	Loss	and	Other	Comprehensive	Income	For	the	Year	Ended	30	June	2016		The	accompanying	notes	form	part	of	these	financial	statements(cid:484)	7					Note	2016	$’000	2015	$’000					Revenue					Rental	income		9(cid:481)187	8(cid:481)87(cid:887)	Telstra	lease	payout		(cid:887)(cid:481)000	(cid:486)	Net	unrealised	gain	on	revaluation		2(b)	4(cid:481)387	3(cid:481)673	Property	(cid:140)oint	ventures	income		69(cid:887)	1(cid:481)316	Interest	income		113	248	Total	Revenue	2(a)		19,382	14,112										Property	outgoings	3	(2(cid:481)126)	(2(cid:481)2(cid:887)7)	Depreciation	e(cid:154)pense	(2(cid:481)138)	(2(cid:481)176)	Finance	costs	(2(cid:481)260)	(2(cid:481)390)	Administration	e(cid:154)penses	3	(1(cid:481)103)	(1(cid:481)1(cid:887)6)	Transaction	e(cid:154)penses						(700)	(cid:486)	Loss	on	sale	of	investments		(90)	(3(cid:887))	Profit	From	Continuing	Operations		10,965	6,098	Profit	(cid:512)	(Loss)	From	Discontinued	Operations						6	(121)	393	Profit	For	The	Year		10,844	6,491					Total	Comprehensive	Income	For	the	Year		10,844	6,491					Profit	Attributable	To:				Owners	of	the	Trust		10(cid:481)909	6(cid:481)336	Outside	e(cid:147)uity	interests		(6(cid:887))	1(cid:887)(cid:887)			10,844	6,491					Total	Comprehensive	Income	Attributable	To:				Owners	of	the	Trust		10(cid:481)909	6(cid:481)336	Outside	e(cid:147)uity	interests		(6(cid:887))	1(cid:887)(cid:887)			10,844	6,491					Earnings	Per	Unit				(cid:5)asic	and	diluted	earnings	per	unit	1(cid:887)	23(cid:484)4	cents	13(cid:484)6	cents					The	accompanying	notes	form	part	of	these	(cid:976)inancial	statements(cid:484)BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 20168BlackWall	Property	Trust		ARSN	109	684	773	Consolidated	Statement	of	Financial	Position	As	at	30	June	2016			Note	2016	$’000	2015	$’000	ASSETS				Current	Assets				Cash	and	cash	e(cid:147)uivalents	4	2(cid:481)1(cid:887)4	316	Trade	and	other	receivables	(cid:887)	2(cid:887)6	388	Other	assets	6	1(cid:887)1	3(cid:481)628	(cid:11)eld	for	sale	properties	7	9(cid:481)900	(cid:486)	Total	Current	Assets		12(cid:481)461	4(cid:481)332	Non(cid:486)current	Assets				Investment	properties	8	101(cid:481)900	83(cid:481)8(cid:887)0	Property	(cid:140)oint	ventures	9	24(cid:481)397	31(cid:481)764	Total	Non(cid:486)current	Assets		126(cid:481)297	11(cid:887)(cid:481)614	TOTAL	ASSETS		138,758	119,946					LIABILITIES				Current	Liabilities				Trade	and	other	payables	10	3(cid:481)2(cid:887)2	908	Other	liabilities	11	248	1(cid:481)968	(cid:5)orrowings	12	62(cid:481)000	(cid:887)0(cid:481)000	Interest	rate	hedges	13	47	(cid:486)	Total	Current	Liabilities		6(cid:887)(cid:481)(cid:887)47	(cid:887)2(cid:481)876	Non(cid:486)current	Liabilities				Interest	rate	hedges	14	1(cid:481)397	(cid:887)80	Total	Non(cid:486)current	Liabilities		1(cid:481)397	(cid:887)80	TOTAL	LIABILITIES	(EXCLUDING	NET	ASSETS)		66,944	53,456					NET	ASSETS				Attributable	to	owners	of	the	parent		71(cid:481)174	63(cid:481)4(cid:887)7	Outside	e(cid:147)uity	interests	20	640	3(cid:481)033	TOTAL	NET	ASSETS		71,814	66,490					TOTAL	LIA(cid:5)ILITI(cid:8)S	(INCLUDING	N(cid:8)T	ASS(cid:8)TS)		138(cid:481)7(cid:887)8	119(cid:481)946				FINANCIAL STATEMENTSBLACKWALLPROPERRTYTUST9BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016							BlackWall	Property	Trust																ARSN	109	684	773														Consolidated	Statement	of	Changes	in	Net	Assets	Attributable	to	Unitholders														For	the	Year	Ended	30	June	2016	 	9	Units	No.’000	Units		$’000	Retained	Earnings		/	(Accumulated	Losses)		$’000		Attributable	to	Owners	of	the	Parent		$’000		Outside	Equity	Interests	$’000	Total	$’000								Restated	balance	at	1	July	2015	(1)	46,693	113,364	(49,255)	64,109	3,033	67,142	Issue	of	units	(2)	12(cid:481)477	14(cid:481)469	(4(cid:481)940)	9(cid:481)(cid:887)29	(1(cid:481)608)	7(cid:481)921	On(cid:486)mar(cid:141)et	buy(cid:486)bac(cid:141)		(1(cid:481)332)	(1(cid:481)617)	(cid:486)	(1(cid:481)617)	(cid:486)	(1(cid:481)617)	Profit	for	the	year	(cid:486)	(cid:486)	10(cid:481)909	10(cid:481)909	(6(cid:887))	10(cid:481)844	Distributions	paid	(3)	(cid:486)	(cid:486)	(11(cid:481)7(cid:887)6)	(11(cid:481)7(cid:887)6)	(cid:486)	(11(cid:481)7(cid:887)6)	Disposal	of	(cid:5)ald	Roc(cid:141)	Fund	(cid:486)	(cid:486)	(cid:486)	(cid:486)	(720)	(720)	Balance	at	30	June	2016	57,838	126,216	(55,042)	71,174	640	71,814	(cid:5)uy(cid:486)bac(cid:141)	since	30	(cid:13)une	(9)	(11)					Balance	at	signing	date	57,829	126,205													Restated	balance	at	1	July	2014	(4)		46,693	113,364	(51,389)	61,975	814	62,789	Profit	for	the	year	(cid:486)	(cid:486)	6(cid:481)336	6(cid:481)336	1(cid:887)(cid:887)	6(cid:481)491	Distributions	paid	(cid:486)	(cid:486)	(4(cid:481)202)	(4(cid:481)202)	(43)	(4(cid:481)24(cid:887))	Consolidation	of	(cid:5)OF	(cid:486)	(cid:486)	(cid:486)	(cid:486)	2(cid:481)107	2(cid:481)107	Restated	balance	at	30	June	2015	(1)	46,693	113,364	(49,255)	64,109	3,033	67,142		(1)		201(cid:887)	balances	were	restated	to	include	716(cid:481)0(cid:887)7	(cid:5)(cid:26)R	holdings	in	itself	(cost	(cid:836)6(cid:887)2(cid:481)000)	as	they	were	e(cid:154)changed	with	(cid:5)OF	unitholders	during	the	period	(see	2)(cid:484)	The	balances	reconciled	to	the	balance	sheet	as	at	30	(cid:13)une	201(cid:887)	are	as	follows(cid:483)						Units	on	issue	No(cid:484)	(cid:494)000	Issued	Units(cid:836)’000Retained	(cid:8)arnings	(cid:512)	(Accumulated	Losses)	(cid:836)’000	Attributable	toOwners	of	theParent(cid:836)’000(cid:5)alance	at	30	(cid:13)une	201(cid:887)	4(cid:887)(cid:481)977	112(cid:481)712(49(cid:481)2(cid:887)(cid:887))	63(cid:481)4(cid:887)7(cid:5)(cid:26)R	(cid:11)oldings	in	itself	issued	to	(cid:5)OF	unitholders	716	6(cid:887)2(cid:486)	6(cid:887)2Restated	(cid:5)alance	30	(cid:13)une	201(cid:887)	46(cid:481)693	113(cid:481)364(49(cid:481)2(cid:887)(cid:887))	64(cid:481)109	(2)		The	Trust	made	the	following	offers	during	the	year(cid:483)	(cid:120) (cid:5)OF	(cid:486)	the	Trust	transferred	716(cid:481)0(cid:887)7	(cid:5)(cid:26)R	units	it	held	in	itself	and	issued	an	additional	190(cid:481)106	new	(cid:5)(cid:26)R	units	to	(cid:5)OF	unitholders(cid:484)	Refer	to	the	Controlled	(cid:8)ntities	note	for	details(cid:484)		(cid:120) (cid:5)T(cid:11)T	(cid:486)	the	Trust	issued	7(cid:484)4	million	new	(cid:5)(cid:26)R	units	to	(cid:5)T(cid:11)T	unitholders(cid:484)	(cid:5)T(cid:11)T	has	now	been	consolidated	onto	the	Trust’s	accounts(cid:484)	Refer	to	the	Property	(cid:13)oint	(cid:25)enture	note	for	details(cid:484)	(cid:120) Pub	Group	–	the	Trust	issued	4(cid:484)8	million	new	(cid:5)(cid:26)R	units	to	(cid:5)lac(cid:141)(cid:26)all	and	Pelorus	in	e(cid:154)change	for	their	Pub	Group	units(cid:484)	(3)		Apart	from	two	distribution	payments	paid	by	the	Trust	during	the	year(cid:481)	the	Trust	has	also	completed	an	in(cid:486)specie	distribution	of	2(cid:484)48	Pub	Group	units	for	each	(cid:5)(cid:26)R	unit	held(cid:484)	Refer	to	the	Distributions	note	for	details(cid:484)	(4)		2014	balances	were	restated	based	on	a	10	to	1	unit	consolidation	in	(cid:16)arch	201(cid:887)(cid:484)	FINANCIAL STATEMENTSBLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201610FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Consolidated	Statement	of	Cash	Flows	For	the	Year	Ended	30	June	2016			10		Note		2016	$’000		2015	$’000	Cash	Flows	From	Operating	Activities				Receipts	from	tenants		9(cid:481)991	9(cid:481)136	Receipts	from	Telstra	lease	payout		(cid:887)(cid:481)(cid:887)00	(cid:486)	Payments	to	suppliers		((cid:887)(cid:481)4(cid:887)2)	(4(cid:481)677)	Property	(cid:140)oint	ventures	distributions	received		1(cid:481)002	1(cid:481)331	Interest	received		113	196	Interest	paid		(2(cid:481)294)	(2(cid:481)498)	Net	Cash	Flows	From	Operating	Activities	18	8,860	3,488		Cash	Flows	From	Investing	Activities				Net	proceeds	from	redemption	of	(cid:5)a(cid:141)ehouse	(cid:5)onds	(CPI	inde(cid:154)ation)	1(cid:481)680	(cid:486)	Net	proceeds	from	sale	of	(cid:5)ald	Roc(cid:141)	(cid:11)otel		8(cid:887)(cid:887)	1(cid:887)0	Proceeds	from	disposal	of	related	property	(cid:140)oint	ventures		1(cid:481)409	1(cid:481)711	Proceeds	from	disposal	of	other	property	(cid:140)oint	ventures		300	1(cid:481)173	Returns	of	capital	from	property	(cid:140)oint	ventures		627	177	Payment	for	related	property	(cid:140)oint	ventures		(331)	(1(cid:481)7(cid:887)1)	Payment	for	capital	e(cid:154)penditure		(160)	(64(cid:887))	Net	Cash	Flows	From	Investing	Activities		4,380	815		Cash	Flows	From	Financing	Activities				Repayment	of	(cid:5)T(cid:11)T	borrowings		(4(cid:481)200)	(cid:486)	Payment	for	buy(cid:486)bac(cid:141)	of	units		(1(cid:481)611)	(cid:486)	Distributions	paid		((cid:887)(cid:481)(cid:887)91)	(4(cid:481)202)	Net	borrowings	to	related	parties		(cid:486)	(1(cid:887))	Net	Cash	Flows	Used	in	Financing	Activities		(11,402)	(4,217)		Net	Increase	in	Cash	Held		1,838	86	Cash	and	cash	e(cid:147)uivalents	at	the	beginning	of	the	year		316	230	Cash	and	Cash	Equivalents	at	End	of	the	Year	4	2,154	316				BLACKWALLPROPERRTYTUST11BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				11		1. Segment	Information		The	Trust	currently	operates	in	one	business	segment	being	property	investments	in	Australia(cid:484)		2. Revenue		(a)			Revenue	Note	2016	$’000	2015	$’000	Rent(cid:483)				(cid:486)	Rental	income		8(cid:481)884	8(cid:481)(cid:887)38	(cid:486)	Straight(cid:486)line	rental	income		303	337			9(cid:481)187	8(cid:481)87(cid:887)	Telstra	lease	payout		(cid:887)(cid:481)000	(cid:486)	Investment	income(cid:483)				(cid:486)	Property	(cid:140)oint	ventures	distribution	income		69(cid:887)	1(cid:481)316	(cid:486)	Interest	income		113	248			808	1(cid:481)(cid:887)64	Net	unrealised	gain	on	revaluation	2(b)	4(cid:481)387	3(cid:481)673	Total	revenue			19,382	14,112		Telstra	lease	payout	represents	(cid:836)(cid:887)	million	prepayment	of	Telstra’s	remaining	lease	at	the	newly	ac(cid:147)uired	(cid:26)OTSO	(cid:11)ouse(cid:484)		(b)			Net	unrealised	gain	on	revaluation			2016	$’000	2015	$’000	Unrealised	gain	on	property	(cid:140)oint	ventures		(cid:887)80	62(cid:887)	Unrealised	gain	on	investment	properties		4(cid:481)62(cid:887)	3(cid:481)(cid:887)81	Unrealised	loss	on	interest	rate	hedges		(818)	((cid:887)33)	Net	unrealised	gain			4,387	3,673		3. Expenses			2016	$’000	2015	$’000	Property	outgoings(cid:483)				(cid:486)	Leasing	and	valuation	fees		1(cid:887)1	230	(cid:486)	Property	outgoings		1(cid:481)97(cid:887)	2(cid:481)027			2(cid:481)126	2(cid:481)2(cid:887)7	Transaction	fees(cid:483)				(cid:486)	Telstra	ac(cid:147)uisition	and	in(cid:486)specie	pub	units	distribution	700	(cid:486)					Administration	e(cid:154)penses(cid:483)				(cid:486)	Responsible	entity	fees		77(cid:887)	76(cid:887)	(cid:486)	Compliance	e(cid:154)penses	(listing(cid:481)	registry	etc)		1(cid:887)9	226	(cid:486)	Other	fund	e(cid:154)penses	169	16(cid:887)			1(cid:481)103	1(cid:481)1(cid:887)6				BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201612BlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016		4. Current	Assets	(cid:486)	Cash	and	Cash	Equivalents			2016	$’000	2015	$’000	Cash	at	ban(cid:141)		2(cid:481)1(cid:887)4	316	Total			2,154	316		Cash	at	ban(cid:141)	earns	interest	at	floating	rates	based	on	daily	ban(cid:141)	deposit	rates(cid:484)			5. Current	Assets	(cid:486)	Trade	and	Other	Receivables			2016	$’000	2015	$’000	Trade	and	other	receivables				(cid:486)	Related	parties		(cid:887)1	381	(cid:486)	Other	parties		20(cid:887)	7	Total			256	388	Further	information	on	receivables	from	related	parties	is	set	out	in	the	Related	Party	Transactions	note(cid:484)	None	of	the	debtors	have	been	provided	for	as	at	30	(cid:13)une	2016	(201(cid:887)(cid:483)	(cid:836)43(cid:481)000)(cid:484)		6. Current	Assets	(cid:486)	Other	Assets			2016	$’000	2015	$’000	Prepayments		1(cid:887)1	128	(cid:5)ald	Roc(cid:141)	(cid:11)otel		(cid:486)	3(cid:481)(cid:887)00	Total			151	3,628			The	(cid:5)ald	Roc(cid:141)	(cid:11)otel	was	sold	in	September	201(cid:887)	for	(cid:836)3(cid:484)(cid:887)	million(cid:484)		7. Current	Assets	–	Held	for	Sale	Properties			2016	$’000	2015	$’000	(cid:11)eld	for	sale	properties		9(cid:481)900	(cid:486)	Total			9,900	(cid:486)		The	Trust	holds	two	legacy	industrial	assets	which	are	small	and	not	consistent	with	(cid:5)lac(cid:141)(cid:26)all’s	strategy	for	the	Trust(cid:484)	Accordingly	they	are	being	mar(cid:141)eted	for	sale	and	will	be	sold	if	offers	are	received	at	a	sufficient	premium	to	the	Trust’s	carrying	cost(cid:484)	These	properties	have	been	reclassified	from	Investment	Properties	to	Current	Assets	in	these	financial	statements(cid:484)								FINANCIAL STATEMENTSBLACKWALLPROPERRTYTUST13BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016BlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				13		8. Non(cid:486)current	Assets	(cid:486)	Investment	Properties			2016	$’000	2015	$’000	(cid:5)alance	at	the	beginning	of	the	financial	year		83(cid:481)8(cid:887)0	83(cid:481)9(cid:887)0	(cid:26)OTSO	(cid:11)ouse	ac(cid:147)uisition		2(cid:887)(cid:481)000	(cid:486)	Revaluation	of	investment	properties		4(cid:481)62(cid:887)	3(cid:481)981	Straight(cid:486)line	rental	income		303	337	Capital	improvements		160	646	Depreciation		(2(cid:481)138)	(2(cid:481)176)	Reclassify	to	held	for	sale	properties		(9(cid:481)900)	(cid:486)	Lease	incentives		(cid:486)	612	Reclassify	(cid:5)ald	Roc(cid:141)	(cid:11)otel	to	other	assets		(cid:486)	(3(cid:481)(cid:887)00)	Balance	at	the	end	of	the	financial	year		101,900	83,850					Chancellor	(cid:11)omema(cid:141)er	Centre		26(cid:481)200	22(cid:481)000	(cid:26)OTSO	(cid:11)ouse		2(cid:887)(cid:481)000	(cid:486)	(cid:28)andina		24(cid:481)700	24(cid:481)7(cid:887)0	Silver	(cid:823)	The	(cid:8)(cid:154)change		18(cid:481)000	18(cid:481)(cid:887)00	Canberra	(cid:8)ye	(cid:11)ospital		8(cid:481)000	8(cid:481)(cid:887)00	Small	Industrials				(cid:486)	10(cid:481)100	Total			101,900	83,850		Two	industial	properties	are	reclassified	as	Current	Assets(cid:484)	Refer	to	the	(cid:11)eld	for	Sale	Properties	note	for	details(cid:484)	In	(cid:13)une	2016(cid:481)	the	Trust	obtained	new	independent	valuations	for	all	properties(cid:481)	e(cid:154)cept	for	(cid:26)OTSO	(cid:11)ouse(cid:481)	which	was	based	on	the	Directors’	assessment(cid:484)	The	current	holding	values	generate	the	following	capitalisation	rates(cid:483)		Value	$’000	Passing	Yield	Market	Yield		Valuation	Chancellor	(cid:11)omema(cid:141)er	Centre	26(cid:481)200	8(cid:484)00(cid:936)	8(cid:484)(cid:887)0(cid:936)	Independent		(cid:26)OTSO	(cid:11)ouse	2(cid:887)(cid:481)000	(cid:887)(cid:484)2(cid:887)(cid:936)	9(cid:484)00(cid:936)	Directors		(cid:28)andina	24(cid:481)700	10(cid:484)20(cid:936)	7(cid:484)7(cid:887)(cid:936)	Independent		Silver	(cid:823)	The	(cid:8)(cid:154)change	18(cid:481)000	7(cid:484)7(cid:887)(cid:936)	8(cid:484)(cid:887)0(cid:936)	Independent		Canberra	(cid:8)ye	(cid:11)ospital	8(cid:481)000	8(cid:484)90(cid:936)	8(cid:484)(cid:887)0(cid:936)	Independent			9. Non(cid:486)current	Assets	–	Property	Joint	Ventures		The	Trust	owns	interests	in	various	property	(cid:140)oint	venture	structures	which	own	the	following	properties(cid:483)				2016	$’000	2015	$’000	(cid:5)a(cid:141)ehouse	(cid:20)uarter		20(cid:481)100	(cid:486)	(cid:887)(cid:887)	Pyrmont	(cid:5)ridge	Road		2(cid:481)800	2(cid:481)800	The	(cid:26)oods	Action	Centre		1(cid:481)497	1(cid:481)400	Pelathon	Pub	Group			(cid:486)	2(cid:481)878	(cid:5)a(cid:141)ehouse	(cid:5)onds		(cid:486)	21(cid:481)670	(cid:26)OTSO	(cid:11)ouse		(cid:486)	4	Penrith		(cid:486)	2(cid:481)441			24(cid:481)397	31(cid:481)193	Investment	in	unlisted	other	entities		(cid:486)	(cid:887)71	Total		24,397	31,764	FINANCIAL STATEMENTSBLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201614FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				14						Bakehouse	Quarter	(Kirela	Development	Unit	Trust	/	Bakehouse	Bonds)	In	December	201(cid:887)	the	Trust’s	(cid:836)20m	of	(cid:5)a(cid:141)ehouse	(cid:5)onds	(debt	instruments)	were	redeemed	in	e(cid:154)change	for	e(cid:147)uity	in	the	(cid:14)irela	Development	Unit	Trust(cid:481)	which	owns	the	(cid:5)a(cid:141)ehouse	(cid:20)uarter(cid:484)	A	further	(cid:836)1(cid:484)68	million	was	paid	in	cash	being	the	CPI	inde(cid:154)ation	accrued	to	the	date	of	redemption(cid:484)	The	Trust	now	holds	13(cid:936)	of	the	ordinary	e(cid:147)uity	of	the	(cid:5)a(cid:141)ehouse	(cid:20)uarter(cid:484)		The	(cid:5)a(cid:141)ehouse	(cid:20)uarter	is	valued	at	(cid:836)270	million(cid:484)		55	Pyrmont	Bridge	Road	(Pyrmont	Bridge	Trust)	P(cid:5)T	controls	an	office(cid:481)	media	and	technology	hub	on	the	(cid:26)estern	fringe	of	Sydney’s	C(cid:5)D	(cid:141)nown	as	(cid:887)(cid:887)	Pyrmont	(cid:5)ridge	Road(cid:481)	Pyrmont(cid:484)	The	Trust	holds	18(cid:936)	of	P(cid:5)T(cid:484)			The	Woods	Action	Centre	(WRV	Unit	Trust)	(cid:26)R(cid:25)	Unit	Trust	is	a	unit	trust	that	owns	The	(cid:26)oods	Action	Centre(cid:481)	(cid:25)illawood	in	Sydney(cid:484)	The	Trust	now	holds	37(cid:936)	of	the	property(cid:484)		WOTSO		House	In	(cid:13)une	2016	the	Trust	completed	the	ac(cid:147)uisition	of	the	(cid:5)lac(cid:141)(cid:26)all	Telstra	(cid:11)ouse	Trust	therefore	it	was	consolidated	onto	the	Trust’s	accounts	and	is	now	disclosed	as	an	Investment	Property(cid:484)			Refer	to	the	Statement	of	Significant	Accounting	Policies	note	on	definition	of	property	(cid:140)oint	ventures(cid:484)	Further	information	relating	to	related	party	investments	is	set	out	in	the	Related	Party	Transactions	note(cid:484)		10. Current	Liabilities	(cid:486)	Trade	and	Other	Payables			2016	$’000	2015	$’000	Trade	payables(cid:483)				(cid:486)	Related	parties		16(cid:887)	41	(cid:486)	Other	parties		2(cid:481)890	(cid:887)62			3(cid:481)0(cid:887)(cid:887)	603	Tenant	deposits	(201(cid:887)(cid:483)	(cid:836)1(cid:887)0(cid:481)000	(cid:5)ald	Roc(cid:141)	sale	deposit)	197	30(cid:887)	Total			3,252	908		Other	liabilities	included	(cid:836)1(cid:484)9	million	payable	in	relation	to	the	ac(cid:147)uisition	of	(cid:5)T(cid:11)T	which	has	been	paid(cid:484)	Further	information	relating	to	related	parties	is	set	out	in	the	Related	Party	Transactions	note(cid:484)		11. Current	Liabilities	(cid:486)	Other	Liabilities			2016	$’000	2015	$’000	Rental	income	received	in	advance		248	262	(cid:5)ald	Roc(cid:141)	facility		(cid:486)	1(cid:481)2(cid:887)6	Loan	from	(cid:5)lac(cid:141)(cid:26)all	to	(cid:5)ald	Roc(cid:141)	Fund		(cid:486)	4(cid:887)0	Total			248	1,968		12. Current	and	Non(cid:486)current	Liabilities	(cid:486)	Borrowings			2016	$’000		2015	$’000	Current					NA(cid:5)	bill	facilities			62(cid:481)000	(cid:887)0(cid:481)000	Total			62,000	50,000	BLACKWALLPROPERRTYTUST15BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				1(cid:887)		The	facilities	are	secured	by	registered	first	mortgages	over	the	freehold	land	and	buildings	((cid:836)12	million	over	(cid:26)OTSO	(cid:11)ouse	and	(cid:836)(cid:887)0	million	over	other	(cid:5)(cid:26)R	properties)(cid:484)	(cid:16)anagement	is	currently	in	discussion	with	the	ban(cid:141)	to	renew	the	facilities	and	has	no	reason	to	believe	they	will	not	be	renewed(cid:484)	Given	the	ban(cid:141)ing	mar(cid:141)et	it	is	li(cid:141)ely	that	on	renewal	the	ban(cid:141)	margin	could	increase	but	up	to	2(cid:887)	basis	points	not	withstanding	that	the	loan	to	value	ratio	has	decreased(cid:484)	Interest	rate	details	are	as	follows(cid:483)	(cid:486) (cid:836)(cid:887)0	million	is	sub(cid:140)ect	to	a	margin	of	1(cid:484)9(cid:887)(cid:936)	p(cid:484)a(cid:484)	((cid:13)une	201(cid:887)(cid:483)	1(cid:484)9(cid:887)(cid:936)	p(cid:484)a(cid:484))	over	(cid:5)(cid:5)S(cid:28)(cid:482)	(cid:486) (cid:836)12	million	is	sub(cid:140)ect	to	a	margin	of	1(cid:484)8(cid:887)(cid:936)	p(cid:484)a(cid:484)	over	(cid:5)(cid:5)S(cid:28)(cid:484)	Refer	to	the	Interest	Rate	(cid:11)edges	and	Financial	Ris(cid:141)	(cid:16)anagement	notes	below	for	further	details(cid:484)		13. Current	and	Non(cid:486)current	Liabilities	–	Interest	Rate	Hedges			2016	$’000	2015	$’000	Current				Interest	rate	hedges			47	(cid:486)	Non(cid:486)current				Interest	rate	hedges			1(cid:481)397	(cid:887)80	Total			1,444	580	Details	of	the	terms	are	as	follows(cid:483)	(cid:486) (cid:836)9(cid:484)(cid:887)	million	((cid:26)OTSO	(cid:11)ouse)	swap	at	4(cid:484)97(cid:936)	which	has	e(cid:154)pired(cid:484)	(cid:486) (cid:836)20	million	collar	with	a	floor	rate	of	2(cid:484)72(cid:936)	p(cid:484)a(cid:484)	and	a	cap	rate	of	4(cid:484)(cid:887)(cid:887)(cid:936)	p(cid:484)a(cid:484)	The	collar	will	e(cid:154)pire	in	(cid:13)uly	2019(cid:484)		(cid:486)	(cid:836)30	million	collar	with	a	floor	rate	of	2(cid:484)24(cid:936)	p(cid:484)a(cid:484)	and	a	cap	rate	of	3(cid:484)24(cid:936)	p(cid:484)a(cid:484)	The	collar	will	e(cid:154)pire	in	(cid:13)anuary	2020(cid:484)		The	gain	or	loss	from	remeasuring	the	interest	rate	collar	at	fair	value	is	recognised	in	profit	and	loss(cid:484)		As	the	current	interest	rate	is	below	the	floor	rates(cid:481)	any	further	interest	rate	reduction	will	not	have	a	profit	and	loss	impact(cid:484)			If	interest	rates	were	to	increase	or	decrease	by	1(cid:936)(cid:481)	interest	e(cid:154)pense	on	(cid:836)12	million	borrowings	would	move	by	(cid:836)120(cid:481)000(cid:484)	There	is	no	material	impact	on	the	(cid:836)(cid:887)0	million	borrowings	based	on	1(cid:936)	movement	in	interest	rates(cid:484)		14. Distributions			2016	$’000	2015	$’000	201(cid:887)	final	distribution	6	cents	paid	in	November	201(cid:887)	(2014(cid:483)	3(cid:484)(cid:887)	cents	(cid:535))	2(cid:481)749	1(cid:481)634	2016	interim	distribution	6	cents	paid	in	April	2016	(201(cid:887)(cid:483)	(cid:887)(cid:484)(cid:887)	cents)	2(cid:481)790	2(cid:481)(cid:887)68	2016	in(cid:486)specie	distribution	of	Pelathon	Pub	Group	units	in	(cid:13)une	2016	(cid:535)(cid:535)	6(cid:481)217	(cid:486)	Total		11,756	4,202		In	addition(cid:481)	the	(cid:5)oard	has	declared	a	final	distribution	of	4	cents	per	unit	to	be	paid	on	9	November	2016(cid:484)		(cid:535)	In	(cid:16)arch	201(cid:887)(cid:481)	units	on	issue	were	consolidated	on	a	10	to	1	basis(cid:484)	Pre(cid:486)consolidation	distributions	have	been	restated	on	this	basis(cid:484)	(cid:535)(cid:535)	Refer	to	the	Consolidated	Statement	of	Changes	in	Net	Assets	Attributable	to	Unitholders	for	details(cid:484)		BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201616FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				16			15. Earnings	Per	Unit		2016	2015	(cid:5)asic	and	diluted	(cid:8)PU	23(cid:484)4	cents	13(cid:484)6	cents	Calculated	as	follows(cid:483)			Profit	for	the	year		(cid:836)10(cid:481)909(cid:481)000	(cid:836)6(cid:481)336(cid:481)000	(cid:26)eighted	average	number	of	units	for	(cid:8)PU	46(cid:481)(cid:887)90(cid:481)966	46(cid:481)693(cid:481)330		16. Auditor’s	Remuneration			2016	$’000	2015	$’000	Remuneration	of	(cid:8)S(cid:25)	for(cid:483)			(cid:486)	Audit	and	assurance	services	(cid:887)(cid:887)	43	(cid:486)	Ta(cid:154)ation	services	12	12	Total			67	55		(cid:5)OF	was	consolidated	onto	the	Trust’s	balance	sheet	in	(cid:13)une	201(cid:887)(cid:481)	therefore	its	audit	fees	were	not	included	in	the	201(cid:887)	balance(cid:484)		17. Commitments	and	Contingencies		Future	minimum	rent	receivable	under	non(cid:486)cancellable	operating	leases	as	at	30	(cid:13)une	are	as	follows(cid:483)				2016	$’000	2015	$’000	Receivable	within	1	year		8(cid:481)(cid:887)90	7(cid:481)(cid:887)(cid:887)9	Receivable	within	2	–	(cid:887)	years	27(cid:481)473	24(cid:481)371	Receivable	for	more	than	(cid:887)	years	1(cid:887)(cid:481)644	18(cid:481)998	Total			51,707	50,928	There	were	no	operating	leases(cid:481)	capital	commitments	or	contingencies	as	at	30	(cid:13)une	2016	(201(cid:887)(cid:483)	Nil)(cid:484)	18. Reconciliation	of	Operating	Cash	Flows			2016	$’000	2015	$’000	Profit	for	the	year		10(cid:481)844	6(cid:481)491	Non(cid:486)cash	flows	in	profit(cid:483)			(cid:486)	Unrealised	gain	on	revaluation	(4(cid:481)387)	(4(cid:481)073)	(cid:486)	Depreciation	2(cid:481)138	2(cid:481)176	(cid:486)	Straight(cid:486)line	rental	income	(303)	(337)	(cid:486)	Loss	on	sale	of	property	(cid:140)oint	ventures	90	3(cid:887)	Changes	in	assets	and	liabilities(cid:483)			(Increase)	(cid:512)	decrease	in	trade	and	other	receivables	131	(1(cid:887)4)	Increase	in	other	assets	(23)	((cid:887)81)	Increase	(cid:512)	(decrease)		in	trade	and	other	payables	499	(329)	Increase	(cid:512)	(decrease)	in	other	liabilities	(129)	260	Net	cash	flows	from	operating	activities	8,860	3,488					BLACKWALLPROPERRTYTUST17BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				17		19. Subsequent	Events		Apart	from	subse(cid:147)uent	events	disclosed	in	the	Directors’	report(cid:481)	to	the	best	of	the	Directors’	(cid:141)nowledge(cid:481)	since	the	end	of	the	financial	year	there	have	been	no	other	matters	or	circumstances	that	have	materially	affected	the	Trust’s	operations	or	may	materially	affect	its	operations(cid:481)	state	of	affairs	or	the	results	of	operations	in	future	financial	years(cid:484)	20. Controlled	Entities		Name	Country	of	incorporation	Percentage	Owned	Parent	entity:		2016		2015		(cid:5)lac(cid:141)(cid:26)all	Property	Trust	Australia	100(cid:936)	100(cid:936)	Controlled	entity	of	parent	entity:			(cid:28)andina	Sub(cid:486)trust	Australia	100(cid:936)	100(cid:936)	(cid:5)lac(cid:141)(cid:26)all	Telstra	(cid:11)ouse	Trust	Australia	100(cid:936)	0(cid:484)03(cid:936)	(cid:5)lac(cid:141)(cid:26)all	Opportunities	Fund	Australia	76(cid:484)(cid:887)9(cid:936)	29(cid:484)79(cid:936)	(cid:5)ald	Roc(cid:141)	Fund	Australia	(cid:486)	39(cid:936)		During	the	year(cid:481)	the	Trust	ac(cid:147)uired	a	further	14(cid:484)6	million	units	in	(cid:5)OF	increasing	its	interest	to	23(cid:481)863(cid:481)36(cid:887)	units	(201(cid:887)(cid:483)	9(cid:481)280(cid:481)(cid:887)28	(cid:5)OF	units)(cid:484)	In	(cid:13)une	2016(cid:481)	the	Trust	ac(cid:147)uired	100(cid:936)	ownership	in	(cid:5)T(cid:11)T	(	201(cid:887)(cid:483)	3(cid:481)(cid:887)(cid:887)(cid:887)	(cid:5)T(cid:11)T	units)(cid:484)			21. Related	Party	Transactions		(a)	Related	Entities	In	these	financial	statements(cid:481)	related	parties	are	parties	as	defined	by	AASB	124	Related	Party	Disclosures	rather	than	the	definition	of	related	parties	under	the	Corporations	Act	2001	and	ASX	Listing	Rules(cid:484)			(b)	Interests	in	Related	Parties		As	at	year	end	the	Trust	owned	units	in	the	following	funds(cid:484)	The	funds	and	the	Trust	have	a	common	Responsible	(cid:8)ntity	or	are	related	entities	of	(cid:5)lac(cid:141)(cid:26)all(cid:483)		Unlisted	Funds	/	Entities	Holdings	(No.’000)	Distribution	/	ROC	Received	($’000)		2016	2015	2016	2015	(cid:14)irela	Unit	Trust	74	(cid:486)	112	(cid:486)	Pyrmont	(cid:5)ridge	Trust	2(cid:481)800	2(cid:481)800	(cid:486)	(cid:486)	(cid:26)R(cid:25)	Unit	Trust	1(cid:481)497	1(cid:481)400	140	(cid:887)2	(cid:5)a(cid:141)ehouse	(cid:5)onds		(cid:486)	20(cid:481)000	(cid:887)(cid:887)0	1(cid:481)100	Pelathon	Pub	Group		(cid:486)	39(cid:481)97(cid:887)	(cid:486)	(cid:486)	(cid:26)oods	PIP(cid:8)S	Fund			(cid:486)	80	(cid:486)	(cid:5)lac(cid:141)(cid:26)all	Telstra	(cid:11)ouse	Trust	(cid:486)	4	1	(cid:486)	Planloc	Preference	Shares	(cid:486)	1(cid:481)900	92	199	(cid:5)lac(cid:141)(cid:26)all	Penrith	Fund	No(cid:484)	3	(cid:486)	(cid:887)41	24	(cid:887)(cid:887)				999	1,406	For	further	details	refer	to	the	Property	(cid:13)oint	(cid:25)entures	note(cid:484)		Income	received	from	(cid:14)irela	and	(cid:26)R(cid:25)	were	in	the	form	of	returns	of	capital(cid:484)	BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201618FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				18			(c)	Related	Entity	Transactions	In	accordance	with	the	terms	of	the	Trust	Constitution	and	the	Information	(cid:16)emorandum(cid:481)	the	Responsible	(cid:8)ntity	is	entitled	to	receive	a	management	fee	based	on	0(cid:484)6(cid:887)(cid:936)	p(cid:484)a(cid:484)	of	the	value	of	the	Trust’s	assets	and	the	recovery	of	other	administrative	costs(cid:484)	All	transactions	with	related	parties	were	made	on	normal	commercial	terms	and	conditions(cid:481)	at	mar(cid:141)et	rates	and	were	approved	by	the	(cid:5)oard(cid:484)	Related	party	transactions	that	occurred	during	the	year	are	as	follows(cid:483)		2016		$’000	2015		$’000	Expenses			Remuneration	paid	to	Responsible	(cid:8)ntity		867	78(cid:887)	Property	management(cid:481)	leasing	fees	and	accounting	fees	(cid:887)08	411	Transaction	fees	691	(cid:486)	Interest	paid	(cid:486)	2(cid:887)		2,066	1,221		(cid:5)OF	was	consolidated	onto	the	Trust’s	accounts	in	(cid:13)une	201(cid:887)(cid:481)	therefore	related	party	fees	were	not	included	in	the	201(cid:887)	balance(cid:484)		Refer	to	Directors’	Report	for	(cid:14)(cid:16)P’s	relevant	interests	in	the	Trust(cid:484)			Outstanding	Balances	with	Related	Parties	2016		$’000	2015		$’000	Receivables	from	related	parties	(cid:486)	current	(cid:887)1	381	Payables	to	related	parties	(cid:486)	current	16(cid:887)	41	Loan	from	related	parties	–current		(cid:486)	4(cid:887)0		22. Parent	Entity	Disclosures	The	following	summarises	the	financial	information	of	the	Trust’s	parent	entity(cid:481)	(cid:5)lac(cid:141)(cid:26)all	Property	Trust(cid:481)	as	at	and	for	the	year	ended	30	(cid:13)une(cid:484)			2016	$’000	2015	$’000	Profit	for	the	year		11(cid:481)141	6(cid:481)479	Total	comprehensive	income	for	the	year	11,141	6,479		Financial	position:			Current	assets	2(cid:481)321	779	Non(cid:486)current	assets	120(cid:481)472	11(cid:887)(cid:481)0(cid:887)2	Total	assets	122,793	115,831	Current	liabilities	(48(cid:481)610)	((cid:887)0(cid:481)34(cid:887))	Non(cid:486)current	liabilities	(1(cid:481)397)	((cid:887)80)	Total	liabilities	(50,007)	(50,925)	Net	assets		72,786	64,906	The	parent	entity	had	no	contingencies	at	30	(cid:13)une	2016	(201(cid:887)(cid:483)	Nil)(cid:484)	The	parent	entity	has	not	entered	into	any	capital	commitments	as	at	30	(cid:13)une	2016	(201(cid:887)(cid:483)	Nil)(cid:484)		BLACKWALLPROPERRTYTUST19BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				19		23. Financial	Risk	Management	(a) Financial	risk	management	The	main	ris(cid:141)s	the	Trust	is	e(cid:154)posed	to	through	its	financial	instruments	are	mar(cid:141)et	ris(cid:141)	(including	interest	rate	ris(cid:141)	and	price	ris(cid:141))(cid:481)	credit	ris(cid:141)	and	li(cid:147)uidity	ris(cid:141)(cid:484)	The	Trust(cid:821)s	principal	financial	instruments	are	property	(cid:140)oint	ventures	and	borrowings	(including	interest	rate	swaps)(cid:484)	Additionally(cid:481)	the	Trust	has	various	other	financial	instruments	such	as	cash(cid:481)	trade	debtors	and	trade	creditors(cid:481)	which	arise	directly	from	its	operations(cid:484)	This	note	presents	information	about	the	Trust(cid:821)s	e(cid:154)posure	to	each	of	the	above	ris(cid:141)s(cid:481)	their	ob(cid:140)ectives(cid:481)	policies	and	processes	for	measuring	and	managing	ris(cid:141)(cid:481)	and	the	management	of	capital(cid:484)		The	(cid:5)oard	of	Directors	of	the	Responsible	(cid:8)ntity	has	overall	responsibility	for	the	establishment	and	overseeing	of	the	ris(cid:141)	management	framewor(cid:141)(cid:484)	The	(cid:5)oard	monitors	the	Trust’s	ris(cid:141)	e(cid:154)posure	by	regularly	reviewing	finance	and	property	mar(cid:141)ets(cid:484)	(cid:16)a(cid:140)or	financial	instruments	held	by	the	Trust	which	are	sub(cid:140)ect	to	financial	ris(cid:141)	analysis	are	as	follows(cid:483)				2016	$’000	2015	$’000	Financial	assets			Property	(cid:140)oint	ventures		24(cid:481)397	31(cid:481)764	Financial	liabilities			(cid:5)orrowings	62(cid:481)000	(cid:887)0(cid:481)000		(b)	Sensitivity	analysis		The	Trust	is	not	e(cid:154)posed	to	any	material	price	or	credit	ris(cid:141)s(cid:484)	For	interest	rate	ris(cid:141)(cid:481)	(cid:836)(cid:887)0	million	borrowings	(out	of	(cid:836)62	million)	are	hedged	as	follows(cid:483)		(cid:120) a	(cid:836)20	million	collar	with	a	floor	rate	of	2(cid:484)72(cid:936)	p(cid:484)a(cid:484)	and	a	cap	rate	of	4(cid:484)(cid:887)(cid:887)(cid:936)	p(cid:484)a(cid:484)(cid:482)	and	(cid:120) a	(cid:836)30	million	collar	with	a	floor	rate	of	2(cid:484)24(cid:936)	p(cid:484)a(cid:484)	and	a	cap	rate	of	3(cid:484)24(cid:936)	p(cid:484)a(cid:484)		The	(cid:836)(cid:887)0	million	hedges	will	e(cid:154)pire	in	late	2019(cid:484)	See	the	Interest	Rate	(cid:11)edges	note	for	sensitivity	analysis(cid:484)		(c)		Capital	management	The	Trust’s	ob(cid:140)ectives	when	managing	capital	are	to(cid:483)	(cid:120) safeguard	its	ability	to	continue	as	a	going	concern(cid:481)	so	that	it	can	continue	to	provide	returns	for	unitholders	and	benefits	for	other	sta(cid:141)eholders(cid:481)	and	(cid:120) maintain	an	optimal	capital	structure	to	reduce	the	cost	of	capital(cid:484)	In	order	to	maintain	or	ad(cid:140)ust	the	capital	structure(cid:481)	the	Trust	may	ad(cid:140)ust	the	amount	of	return	of	capital	paid	to	unitholders(cid:481)	issue	new	units(cid:481)	buy(cid:486)bac(cid:141)	units(cid:481)	purchase	or	sell	assets(cid:484)	The	Trust	complies	with	the	current	loans	to	values	ratio	(6(cid:887)(cid:936))(cid:484)		(d)	Liquidity	risk	The	ma(cid:140)or	li(cid:147)uidity	ris(cid:141)	faced	by	the	Trust	is	its	ability	to	realise	assets(cid:484)	The	Trust	has	borrowings	of	(cid:836)62	million	and	total	gross	assets	of	(cid:836)139	million(cid:481)	of	which	(cid:836)112	million	are	income	producing	real	estate	BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201620FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				20		assets	for	which	there	is	a	deep	and	active	mar(cid:141)et(cid:484)	At	the	end	of	the	reporting	period(cid:481)	the	Trust	held	the	following	financial	arrangements(cid:483)		Maturing	within	1	year	$’000	Maturing		2	–	5	years	$’000	Maturing	over	5	years	$’000		Total		$’000	At	30	June	2016					Financial	assets					Cash	and	cash	e(cid:147)uivalents	2(cid:481)1(cid:887)4	(cid:486)	(cid:486)	2(cid:481)1(cid:887)4	Trade	and	other	receivables	2(cid:887)6	(cid:486)	(cid:486)	2(cid:887)6	Property	(cid:140)oint	ventures	(cid:486)	24(cid:481)397	(cid:486)	24(cid:481)397		2,410	24,397	(cid:486)	26,807	Financial	liabilities					Trade	and	other	payables	3(cid:481)2(cid:887)2	(cid:486)	(cid:486)	3(cid:481)2(cid:887)2	Other	liabilities	248	(cid:486)	(cid:486)	248	(cid:5)orrowings	62(cid:481)000	(cid:486)	(cid:486)	62(cid:481)000	Interest	rate	hedges	47	1(cid:481)397	(cid:486)	1(cid:481)444		65,547	1,397	(cid:486)	66,944	At	30	June	2015					Financial	assets					Cash	and	cash	e(cid:147)uivalents	316	(cid:486)	(cid:486)	316	Trade	and	other	receivables	388	(cid:486)	(cid:486)	388	Property	(cid:140)oint	ventures	(cid:486)	31(cid:481)764	(cid:486)	31(cid:481)764		704	31,764	(cid:486)	32,468	Financial	liabilities					Trade	and	other	payables	908	(cid:486)	(cid:486)	908	Other	liabilities	1(cid:481)968	(cid:486)	(cid:486)	1(cid:481)968	(cid:5)orrowings	(cid:887)0(cid:481)000	(cid:486)	(cid:486)	(cid:887)0(cid:481)000	Interest	rate	hedges	(cid:486)	4(cid:887)7	123	(cid:887)80		52,876	457	123	53,456		(e) Fair	value	measurements	(i) Fair	value	hierarchy	AASB	7	Financial	Instruments:	Disclosures	re(cid:147)uires	disclosure	of	fair	value	measurements	by	level	of	the	following	fair	value	measurement	hierarchy(cid:483)	(cid:120) Level	1	(cid:486)	(cid:20)uoted	prices	(unad(cid:140)usted)	in	active	mar(cid:141)ets	for	identical	assets	or	liabilities(cid:482)	(cid:120) Level	2	(cid:486)	Inputs	other	than	(cid:147)uoted	prices	included	within	Level	1	that	are	observable	for	the	asset(cid:481)	either	directly	(as	prices)	or	indirectly	(derived	from	prices)(cid:482)	and	(cid:120) Level	3	(cid:486)	Inputs	for	the	asset	that	are	not	based	on	observable	mar(cid:141)et	data	(unobservable	inputs)(cid:484)		The	Trust	currently	does	not	have	any	assets	or	liabilities	that	are	traded	in	an	active	mar(cid:141)et(cid:484)		The	fair	value	of	property	(cid:140)oint	ventures	and	financial	liabilities	that	are	not	traded	in	an	active	mar(cid:141)et	is	determined	using	valuation	techni(cid:147)ues(cid:484)	For	investments	in	related	party	unlisted	unit	trusts(cid:481)	fair	values	are	determined	by	reference	to	published	unit	prices	of	these	investments	which	are	based	on	the	net	tangible	assets	of	the	investments(cid:484)		The	following	table	presents	the	Trust’s	property	(cid:140)oint	ventures	and	financial	liabilities	measured	at	fair	value	as	at	30	(cid:13)une(cid:484)	Refer	to	the	Critical	Accounting	(cid:8)stimates	and	(cid:13)udgment	note	for	further	details	of	BLACKWALLPROPERRTYTUST21BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				21		assumptions	used	and	how	fair	values	are	measured(cid:484)			Level	1	$’000	Level	2	$’000	Level	3	$’000	Total		$’000	At	30	June	2016					Property	(cid:140)oint	ventures	(cid:486)	(cid:486)	24(cid:481)397	24(cid:481)397	Interest	rate	hedges	(cid:486)	(1(cid:481)444)	(cid:486)	(1(cid:481)444)						At	30	June	2015					Property	(cid:140)oint	ventures					(cid:486)	(cid:8)(cid:147)uities	(cid:486)	(cid:486)	10(cid:481)174	10(cid:481)174	(cid:486)	Debt	instruments	(cid:486)	(cid:486)	21(cid:481)(cid:887)90	21(cid:481)(cid:887)90		(cid:486)	(cid:486)	31(cid:481)764	31(cid:481)764	Interest	rate	hedges	(cid:486)	((cid:887)80)	(cid:486)	((cid:887)80)		(ii)	Valuation	techniques	used	to	derive	Level	3	fair	values		The	fair	value	of	the	unlisted	securities	is	determined	by	reference	to	the	net	assets	of	the	underlying	entities(cid:484)	All	these	instruments	are	included	in	Level	3(cid:484)	(iii)	Fair	value	measurements	using	significant	observable	inputs	(Level	3)	The	following	table	is	a	reconciliation	of	the	movements	in	property	(cid:140)oint	ventures	classified	as	Level	3	for	the	year	ended	30	(cid:13)une(cid:483)			At	30	June	2016		$’000	(cid:5)alance	at	the	beginning	of	the	year	31(cid:481)764	Purchases	22(cid:481)332	Disposals(cid:512)returns	of	capital	(30(cid:481)(cid:887)06)	Fair	value	movement	807	(cid:5)alance	at	the	end	of	the	year	24,397		At	30	June	2015	$’000	(cid:5)alance	at	the	beginning	of	the	year	29(cid:481)404	Purchases	4(cid:481)626	Disposals(cid:512)returns	of	capital	(1(cid:481)706)	Fair	value	movement	62(cid:887)	Consolidation	of	(cid:5)OF	(eliminate	investment)	(1(cid:481)18(cid:887))	(cid:5)alance	at	the	end	of	the	year	31,764	There	were	no	transfers	between	Level	1(cid:481)	2	and	3	financial	instruments	during	the	year(cid:484)	For	all	other	property	(cid:140)oint	ventures	and	financial	liabilities	carrying	value	is	an	appro(cid:154)imation	of	fair	value(cid:484)	24. Critical	Accounting	Estimates	and	Judgments	The	Directors	of	the	Responsible	(cid:8)ntity	evaluate	estimates	and	(cid:140)udgments	incorporated	into	the	financial	statements	based	on	historical	(cid:141)nowledge	and	best	available	current	information(cid:484)	(cid:8)stimates	assume	a	reasonable	e(cid:154)pectation	of	future	events	and	are	based	on	current	trends	and	economic	data(cid:481)	obtained	both	e(cid:154)ternally	and	within	the	Trust(cid:484)			BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201622FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				22		Key	estimates	–	impairment	The	Trust	assesses	impairment	at	each	reporting	date	by	evaluating	conditions	specific	to	the	Trust	that	may	lead	to	impairment	of	assets(cid:484)	Refer	to	Trade	and	Other	Receivables	note	for	impairment	details(cid:484)			Key	estimates	–	property	joint	ventures	All	financial	assets	at	F(cid:25)TPL	have	been	classified	as	property	(cid:140)oint	ventures(cid:481)	which	have	the	same	meaning	as	financial	assets	at	F(cid:25)TPL	with	gains	and	losses	recognised	as	profit	or	loss(cid:484)	The	fair	value	of	the	unlisted	securities	is	determined	by	reference	to	the	net	assets	of	the	underlying	entities(cid:484)			Key	estimates	–	fair	values	of	investment	properties	The	Trust	carries	its	investment	properties	at	fair	value	with	changes	in	the	fair	values	recognised	in	profit	or	loss(cid:484)	At	the	end	of	each	reporting	period(cid:481)	the	Directors	of	the	Responsible	(cid:8)ntity	update	their	assessment	of	the	fair	value	of	each	property(cid:481)	ta(cid:141)ing	into	account	the	most	recent	independent	valuations(cid:484)	The	(cid:141)ey	assumptions	used	in	this	determination	are	set	out	in	Investment	Properties	note(cid:484)	If	there	are	any	material	changes	in	the	(cid:141)ey	assumptions	due	to	changes	in	economic	conditions(cid:481)	the	fair	value	of	the	investment	properties	may	differ	and	may	need	to	be	re(cid:486)estimated(cid:484)	25. Statement	of	Significant	Accounting	Policies	The	financial	statements	cover	(cid:5)lac(cid:141)(cid:26)all	Property	Trust	and	its	controlled	entities	(refer	Controlled	(cid:8)ntities	note)(cid:484)	(cid:5)lac(cid:141)(cid:26)all	Property	Trust	is	a	managed	investment	scheme	registered	in	Australia(cid:484)	All	controlled	funds	are	established	and	domiciled	in	Australia(cid:484)		The	financial	statements	for	the	Trust	were	authorised	for	issue	in	accordance	with	a	resolution	of	the	Directors	of	the	Responsible	(cid:8)ntity	on	the	date	they	were	issued(cid:484)		Basis	of	Preparation		These	financial	statements	are	general	purpose	financial	statements	that	have	been	prepared	in	accordance	with	Australian	Accounting	Standards	and	other	authoritative	pronouncements	of	the	Australian	Accounting	Standards	(cid:5)oard	and	the	Corporations	Act	2001(cid:484)	The	financial	statements	of	the	Trust	also	comply	with	IFRS	as	issued	by	the	International	Accounting	Standards	(cid:5)oard(cid:484)		The	financial	statements	have	been	prepared	on	an	accruals	basis	and	are	based	on	historical	costs	modified	by	the	revaluation	of	selected	non(cid:486)current	assets(cid:481)	financial	assets	and	financial	liabilities	for	which	the	fair	value	basis	of	accounting	has	been	applied(cid:484)		The	Trust	is	a	group	of	the	(cid:141)ind	referred	to	in	ASIC	Class	Order	2016(cid:512)191	and(cid:481)	in	accordance	with	that	Class	Order(cid:481)	amounts	in	the	Directors’	Report	and	the	financial	statements	are	rounded	off	to	the	nearest	thousand	dollars(cid:481)	unless	otherwise	indicated(cid:484)		The	following	is	a	summary	of	the	material	accounting	policies	adopted	by	the	Trust	in	the	preparation	of	the	financial	statements(cid:484)		The	accounting	policies	have	been	consistently	applied(cid:481)	unless	otherwise	stated(cid:484)		New	and	amended	standards	adopted		The	Trust	has	not	elected	to	adopt	any	accounting	standards	or	amendments	to	standards	or	interpretations	issued	prior	to	the	date	of	this	report	where	application	is	not	mandatory	for	the	current	reporting	period(cid:484)	(cid:16)anagement	has	considered	the	accounting	standards	that	have	been	issued	but	are	not	yet	effective	and	do	not	anticipate	any	having	a	significant	impact	on	the	financial	statements(cid:484)			BLACKWALLPROPERRTYTUST23BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				23		Going	concern			The	Trust	has	a	current	asset	deficiency	as	at	30	(cid:13)une	2016	as	ban(cid:141)	borrowings	were	classified	as	current	liabilities(cid:484)	Given	the	Trust	generates	normalised	operating	cashflow	of	around	(cid:836)3(cid:484)4	million	per	annum(cid:481)	the	Directors	do	not	consider	there	to	be	a	going	concern	issue(cid:484)	These	financial	statements	have	been	prepared	on	a	going	concern	basis(cid:481)	which	contemplates	continuity	of	normal	business	activities	and	the	realisation	of	assets	and	settlement	of	liabilities	in	the	ordinary	course	of	business(cid:484)			Comparative	figures			(cid:26)hen	re(cid:147)uired	by	Accounting	Standards(cid:481)	comparative	figures	have	been	ad(cid:140)usted	to	conform	to	changes	in	presentation	for	the	current	financial	year(cid:484)	Any	change	of	presentation	has	been	made	in	order	to	ma(cid:141)e	the	financial	statements	more	relevant	and	useful	to	the	user(cid:484)		Segment	Reporting		AAS(cid:5)	8	re(cid:147)uires	operating	segments	to	be	identified	on	the	basis	of	internal	reports	about	components	of	the	Trust	that	are	regularly	reviewed	by	the	chief	operating	decision	ma(cid:141)er	in	order	to	allocate	resources	to	the	segment	and	to	assess	its	performance(cid:484)	The	Trust’s	primary	format	for	segment	reporting	is	based	on	business	segments(cid:484)	The	business	segments	are	determined	based	on	the	Trust	management	and	internal	reporting	structure(cid:484)	There	is	only	one	geographical	segment	being	Australia(cid:484)		Segment	results(cid:481)	assets	and	liabilities	include	items	directly	attributable	to	a	segment	as	well	as	those	that	can	be	allocated	on	a	reasonable	basis(cid:484)	The	operating	businesses	are	organised	and	managed	separately	according	to	the	nature	of	the	products	and	services	provided(cid:481)	with	each	segment	representing	a	strategic	business	unit	that	offers	different	products	and	serves	different	mar(cid:141)ets(cid:484)		The	Trust	has	adopted	one	reporting	segment(cid:481)	Property	Investments(cid:484)		The	Property	Investments	segment	includes	the	ownership	and	leasing	out	of	commercial(cid:481)	industrial	and	retail	properties	in	the	Australian	Capital	Territory(cid:481)	New	South	(cid:26)ales	and	(cid:20)ueensland(cid:484)	Income	is	derived	from	rent(cid:481)	property	revaluations	and	property	(cid:140)oint	ventures	distributions(cid:484)		Presentation	currency	(cid:5)oth	the	functional	and	presentation	currency	of	the	Trust	is	Australian	dollars(cid:484)		Principles	of	Consolidation	Controlled	entities		The	consolidated	financial	statements	comprise	the	financial	statements	of	the	Trust	(refer	to	the	Controlled	(cid:8)ntities	note)(cid:484)		The	controlled	entity	has	a	(cid:13)une	financial	year	end	and	uses	consistent	accounting	policies(cid:484)	Investments	in	the	controlled	entity	held	by	the	parent	entity	are	accounted	for	at	cost	less	any	impairment	charges	(refer	to	the	Parent	(cid:8)ntity	Disclosures	note)(cid:484)	Subsidiaries	are	all	those	entities	over	which	the	consolidated	entity	has	control(cid:484)	The	consolidated	entity	controls	an	entity	when	the	consolidated	entity	is	e(cid:154)posed	to(cid:481)	or	has	rights	to(cid:481)	variable	returns	from	its	involvement	with	the	entity	and	has	the	ability	to	affect	those	returns	through	its	power	to	direct	the	activities	of	the	entity(cid:484)	Subsidiaries	are	fully	consolidated	from	the	date	on	which	control	is	transferred	to	the	consolidated	entity(cid:484)	They	are	de(cid:486)consolidated	from	the	date	that	control	ceases(cid:484)		BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201624FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				24		Inter(cid:486)entity	balances	All	inter(cid:486)entity	balances	and	transactions	between	entities	in	the	Trust(cid:481)	including	any	unrealised	profits	or	losses(cid:481)	have	been	eliminated	on	consolidation(cid:484)		Accounting	policies	of	the	controlled	entity	have	been	changed	where	necessary	to	ensure	consistencies	with	those	policies	applied	by	the	parent	entity(cid:484)	Impairment	of	assets	At	each	reporting	date(cid:481)	the	Trust	reviews	the	carrying	values	of	its	assets	to	determine	whether	there	is	any	indication	that	those	assets	have	been	impaired(cid:484)		If	such	an	indication	e(cid:154)ists(cid:481)	the	recoverable	amount	of	the	asset(cid:481)	being	the	higher	of	the	asset’s	fair	value	less	costs	to	sell	and	value	in	use(cid:481)	is	compared	to	the	asset’s	carrying	value(cid:484)	In	assessing	value	in	use(cid:481)	either	the	estimated	future	cash	flows	are	discounted	to	their	present	value	using	a	pre(cid:486)ta(cid:154)	discount	rate	that	reflects	current	mar(cid:141)et	assessments	of	the	time	value	of	money	and	the	ris(cid:141)s	specific	to	the	asset(cid:481)	or	the	income	of	the	asset	is	capitalised	at	its	relevant	capitalisation	rate(cid:484)	An	impairment	loss	is	recognised	if	the	carrying	value	of	an	asset	e(cid:154)ceeds	its	recoverable	amount(cid:484)	Impairment	losses	are	e(cid:154)pensed	to	the	income	statement(cid:484)	Impairment	losses	recognised	in	prior	periods	are	assessed	at	each	reporting	date	for	any	indication	that	the	loss	has	decreased	or	no	longer	e(cid:154)ists(cid:484)	An	impairment	loss	is	reversed	if	there	has	been	a	change	in	the	estimates	used	to	determine	the	recoverable	amount(cid:484)	An	impairment	loss	is	reversed	only	to	the	e(cid:154)tent	that	the	asset’s	carrying	amount	does	not	e(cid:154)ceed	the	carrying	amount	that	would	have	been	determined(cid:481)	net	of	depreciation	or	amortisation(cid:481)	if	no	impairment	loss	has	been	recognised(cid:484)	Financial	Instruments	Interest	rate	hedges	The	Trust	uses	derivative	financial	instruments	such	as	interest	rate	swaps	to	hedge	its	ris(cid:141)s	associated	with	interest	rates(cid:484)	Such	derivative	financial	instruments	are	initially	recognised	at	fair	value	on	the	date	the	derivative	contract	is	entered	into	and	are	subse(cid:147)uently	remeasured	to	fair	value(cid:484)	Derivatives	are	carried	as	assets	when	their	net	fair	value	is	positive	and	as	liabilities	when	their	net	fair	value	is	negative(cid:484)		The	fair	values	of	interest	rate	swap	and	collar	are	determined	by	reference	to	mar(cid:141)et	values	for	similar	instruments(cid:484)	Any	gains	or	losses	arising	from	changes	in	the	fair	value	of	derivatives	are	ta(cid:141)en	directly	to	profit	or	loss	for	the	year(cid:484)	Non(cid:486)derivative	financial	instruments	Non(cid:486)derivative	financial	instruments	comprise	financial	assets	(including	property	(cid:140)oint	ventures)(cid:481)	loans	and	borrowings(cid:481)	and	trade	and	other	payables(cid:484)	Non(cid:486)derivative	financial	instruments	are	recognised	at	fair	value	plus(cid:481)	for	instruments	not	at	fair	value	through	profit	or	loss(cid:481)	any	directly	attributable	transaction	costs(cid:484)	Subse(cid:147)uent	to	initial	recognition	non(cid:486)	derivative	financial	instruments	are	measured	as	described	below(cid:484)	Recognition	A	financial	instrument	is	recognised	if	the	Trust	becomes	a	party	to	the	contractual	provisions	of	the	instrument(cid:484)	Financial	assets	are	recognised	if	the	Trust’s	contractual	rights	to	the	cash	flow	from	the	financial	assets	e(cid:154)pire	or	if	the	Trust	transfers	the	financial	assets	to	another	party	without	retaining	control	or	substantially	all	ris(cid:141)s	and	rewards	of	the	asset(cid:484)	Purchases	and	sales	of	financial	assets	are	BLACKWALLPROPERRTYTUST25BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				2(cid:887)		accounted	for	at	trade	date(cid:481)	i(cid:484)e(cid:484)	the	date	that	the	Trust	commits	itself	to	purchase	or	sell	the	asset(cid:484)	Financial	liabilities	are	derecognised	if	the	Trust’s	obligations	specified	in	the	contract	e(cid:154)pire	or	are	discharged	or	cancelled(cid:484)		Loans	and	receivables	Loans	and	receivables	including	loans	to	related	entities(cid:484)	Gains	and	losses	are	recognised	in	profit	and	loss	when	the	loans	and	receivables	are	derecognised	or	impaired(cid:481)	as	well	as	through	the	amortisation	process(cid:484)	Fair	value	For	investments	in	unlisted	unit	trusts(cid:481)	fair	values	are	determined	by	reference	to	published	unit	prices	of	these	investments	which	are	based	on	the	net	tangible	assets	of	each	of	the	investments(cid:484)		Impairment	At	each	reporting	date(cid:481)	the	Trust	assesses	whether	there	is	ob(cid:140)ective	evidence	that	a	financial	instrument	has	been	impaired(cid:484)	A	financial	instrument	is	considered	to	be	impaired	if	ob(cid:140)ective	evidence	indicates	that	one	or	more	events	have	had	a	negative	effect	on	the	estimated	future	cash	flows	of	that	asset(cid:484)		Individually	significant	financial	instruments	are	tested	for	impairment	on	an	individual	basis(cid:484)	The	remaining	financial	assets	are	assessed	collectively	in	groups	that	share	similar	credit	ris(cid:141)	characteristics(cid:484)				Impairment	losses	are	recognised	in	the	statement	of	profit	or	loss	and	other	comprehensive	income(cid:484)		Financial	liabilities	Non(cid:486)derivative	financial	liabilities	are	recognised	at	amortised	cost(cid:481)	comprising	original	debt	less	principal	payments	and	unrealised	movements(cid:484)	Property	joint	ventures	All	financial	assets	at	F(cid:25)TPL	have	been	classified	as	property	(cid:140)oint	ventures	in	these	financial	statements(cid:481)	which	have	the	same	meaning	as	financial	assets	at	F(cid:25)TPL	with	gains	and	losses	recognised	in	profit	or	loss(cid:484)	The	Trust	classifies	its	financial	assets	in	the	following	measurement	categories(cid:483)	those	to	be	measured	subse(cid:147)uently	at	fair	value	and	those	to	be	measured	at	amortised	cost(cid:484)	The	classification	depends	on	the	Trust’s	business	model	for	managing	the	financial	assets	and	the	contractual	terms	of	the	cash	flows(cid:484)	(i)	Debt	investments	–	at	fair	value	through	profit	or	loss	The	(cid:5)a(cid:141)ehouse	(cid:5)onds	were	classified	as	a	debt	investment	at	fair	value	through	profit	or	loss(cid:484)	The	(cid:5)onds	were	redeemed	during	the	year(cid:484)	(ii)	Equity	investments	All	e(cid:147)uity	investments	are	measured	at	fair	value(cid:484)	(cid:8)(cid:147)uity	investments	that	are	held	for	trading	are	measured	at	fair	value	through	profit	or	loss(cid:484)		Measurement		At	initial	recognition(cid:481)	the	Trust	measures	a	financial	asset	at	its	fair	value(cid:484)	Transaction	costs	of	financial	assets	carried	at	fair	value	through	profit	or	loss	are	e(cid:154)pensed	in	profit	or	loss(cid:484)	The	Trust	subse(cid:147)uently	measures	all	e(cid:147)uity	investments	at	fair	value(cid:484)		Changes	in	the	fair	value	of	financial	assets	at	fair	value	through	profit	or	loss	are	recognised	in	profit	or	loss	as	applicable(cid:484)		BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201626FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				26		Held	for	Sale	Properties	Properties	are	classified	as	held	for	sale	if	their	carrying	amount	will	be	recovered	principally	through	a	sale	transaction	rather	through	continuing	use	and	a	sale	is	considered	highly	probable(cid:484)	They	are	measured	at	their	carrying	amount(cid:484)	Any	subse(cid:147)uent	increases	or	decreases	in	carrying	amount	is	recognised	in	the	profit	and	loss(cid:484)	Investment	Properties	Investment	properties	are	measured	initially	at	cost(cid:481)	including	transaction	costs(cid:484)	The	carrying	amount	includes	the	cost	of	replacing	part	of	an	e(cid:154)isting	investment	property	at	the	time	that	cost	is	incurred	if	the	recognition	criteria	are	met	and	e(cid:154)cludes	the	costs	of	day(cid:486)to(cid:486)day	servicing	of	an	investment	property(cid:484)	Subse(cid:147)uent	to	initial	recognition(cid:481)	investment	properties	are	stated	at	fair	value(cid:481)	which	is	based	on	active	mar(cid:141)et	prices(cid:481)	ad(cid:140)usted	if	necessary(cid:481)	for	any	difference	in	the	nature(cid:481)	location	or	condition	of	the	specific	asset	at	the	balance	sheet	date(cid:484)	Gains	or	losses	arising	from	changes	in	the	fair	values	of	investment	properties	are	recognised	in	profit	or	loss	in	the	year	in	which	they	arise(cid:484)	Included	in	the	value	measurement	are	ad(cid:140)ustments	for	straightlining	of	lease	income(cid:484)	Cash	and	Cash	Equivalents	Cash	and	cash	e(cid:147)uivalents	include	cash	on	hand(cid:481)	deposits	held	at	call	with	ban(cid:141)s(cid:481)	other	short	term	highly	li(cid:147)uid	investments	with	original	maturities	of	three	months	or	less(cid:481)	and	ban(cid:141)	overdrafts(cid:484)		Trade	and	Other	Receivables	Trade	receivables	are	recognised	and	carried	at	original	invoice	amount	less	a	provision	for	any	uncollectable	debts(cid:484)	An	estimate	for	doubtful	debts	is	made	when	there	is	ob(cid:140)ective	evidence	that	the	Trust	will	not	be	able	to	collect	the	receivable(cid:484)	Financial	difficulties	of	the	debtor	and	default	payments	are	considered	ob(cid:140)ective	evidence	of	impairment(cid:484)	(cid:5)ad	debts	are	written	off	when	identified	as	uncollectable(cid:484)	Trade	and	Other	Payables	Liabilities	for	trade	creditors	are	carried	at	cost	which	is	the	fair	value	of	the	consideration	to	be	paid	in	the	future	for	goods	or	services	received(cid:481)	whether	or	not	billed	to	the	Trust	at	balance	date(cid:484)	The	amounts	are	unsecured	and	are	usually	paid	within	30	days	of	recognition(cid:484)		Interest	Bearing	Borrowings	Interest	bearing	borrowings	are	initially	recognised	at	fair	value	less	any	related	transaction	costs(cid:484)		Subse(cid:147)uent	to	initial	recognition(cid:481)	interest	bearing	borrowings	are	stated	at	amortised	cost(cid:484)			Revenue	Rent	Rent	comprises	rental	and	recovery	of	outgoings	from	property	tenants(cid:484)	Rental	income	from	investment	properties	is	accounted	for	on	a	straight(cid:486)line	basis	over	the	lease	term(cid:484)		Lease	incentives	Rent	free	incentives	granted	are	recognised	as	an	integral	part	of	total	rental	income(cid:484)	Cash	incentives	paid	or	payable	to	tenants	are	capitalised	as	part	of	investment	properties(cid:484)		BLACKWALLPROPERRTYTUST27BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016FINANCIAL STATEMENTSBlackWall	Property	Trust	ARSN	109	684	773	Notes	to	the	Financial	Statements	For	the	Year	Ended	30	June	2016				27		Investment	income		Interest	income	is	recognised	as	interest	accrues	using	the	effective	interest	method(cid:484)	Property	(cid:140)oint	ventures	income	is	recognised	when	the	right	to	receive	distribution	has	been	established(cid:484)		For	ta(cid:154)	deferred	distributions	(returns	of	capital)	earned	from	any	trusts	that	have	significant	carried	forward	ta(cid:154)	losses(cid:481)	such	distributions	are	brought	on	to	the	balance	sheet	by	an	ad(cid:140)ustment	in	the	carrying	value	of	the	relevant	investment	and	then	reflected	in	the	profit	and	loss	as	an	unrealised	gain(cid:484)		Income	Tax	Under	current	income	ta(cid:154)	legislation	the	Trust	is	not	liable	to	Australian	income	ta(cid:154)	provided	the	unitholders	are	presently	entitled	to	the	ta(cid:154)able	income	of	the	Trust(cid:484)	The	Trust	has	over	(cid:836)1(cid:887)	million	of	carried	forward	revenue	ta(cid:154)	losses	and	appro(cid:154)imately	(cid:836)17	million	in	capital	losses(cid:484)	GST	Revenues(cid:481)	e(cid:154)penses	and	assets	are	recognised	net	of	the	amount	of	GST(cid:481)	e(cid:154)cept	where	the	amount	of	GST	incurred	is	not	recoverable	from	the	Australian	Ta(cid:154)ation	Office(cid:484)		In	these	circumstances	the	GST	is	recognised	as	part	of	the	cost	of	ac(cid:147)uisition	of	the	asset	or	as	part	of	an	item	of	the	e(cid:154)pense(cid:484)		Receivables	and	payables	in	the	balance	sheet	are	shown	inclusive	of	GST(cid:484)	Cash	flows	are	presented	in	the	cash	flow	statement	on	a	gross	basis	for	the	operating	cash	flows	only(cid:484)		EPU	The	Trust	presents	basic	and	diluted	(cid:8)PU(cid:484)	(cid:5)asic	(cid:8)PU	is	calculated	by	dividing	the	profit	or	loss	attributable	to	ordinary	unitholders	of	the	Trust	by	the	weighted	average	number	of	units	outstanding	during	the	period(cid:484)	Diluted	(cid:8)PU	is	determined	by	ad(cid:140)usting	the	profit	or	loss	attributable	to	ordinary	unitholders	and	the	weighted	average	number	of	units	outstanding	for	the	effects	of	all	dilutive	potential	units(cid:484)		New	Accounting	Standards	and	Interpretations		Certain	new	accounting	standards	and	interpretations	have	been	published	that	are	not	mandatory	for	the	current	reporting	period(cid:484)	The	Trust’s	assessment	of	the	impact	of	these	new	standards	and	interpretations	is	set	out	below(cid:484)		AASB	9	Financial	Instruments	(effective	for	annual	reporting	periods	beginning	on	or	after	1	January	2018)		The	Trust	has	adopted	AAS(cid:5)	9	early	on	1	(cid:13)anuary	2013	e(cid:154)cept	for	the	new	hedging	rules	which	should	not	have	any	material	effects	to	the	Trust’s	financial	statements(cid:484)		AASB	15	Revenue	from	Contracts	with	Customers	(effective	for	annual	reporting	periods	beginning	on	or	after	1	January	2018)		The	new	standard	is	based	on	the	principle	that	revenue	is	recognised	when	control	of	a	good	or	service	transfers	to	a	customer(cid:484)	The	Trust	is	currently	assessing	the	effects	of	applying	the	new	standard	on	the	financial	statements	and	has	not	identified	any	material	changes(cid:484)	BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201628DIRECTORS’ REPORT (Part 2)	This	Part	2	continues	from	Directors’	Report	(Part	1)	from	pages	3	to	6(cid:484)		Information	on	Officeholders	of	the	Responsible	Entity		The	Responsible	(cid:8)ntity	is	a	wholly	owned	subsidiary	of	(cid:5)lac(cid:141)(cid:26)all	Limited(cid:484)		(cid:5)lac(cid:141)(cid:26)all’s		Officeholders	comprise	the	board	of	the	Responsible	(cid:8)ntity(cid:484)	The	Officeholders	of	the	Responsible	(cid:8)ntity	during	or	since	the	end	of	the	year	are	set	out	below(cid:484)	Unless	otherwise	stated(cid:481)	Officeholders	have	been	in	office	since	the	beginning	of	the	financial	year(cid:484)			Name	and	Position	Special	Experience	Richard	(cid:11)ill	Non(cid:486)(cid:8)(cid:154)ecutive	Director	and	Independent	Chairman			Richard	(cid:11)ill	has	e(cid:154)tensive	investment	ban(cid:141)ing	e(cid:154)perience	and	was	the	founding	partner	of	the	corporate	advisory	firm	(cid:11)ill	(cid:28)oung	(cid:428)	Associates(cid:484)	Richard	has	invested	in	(cid:5)lac(cid:141)(cid:26)all’s	pro(cid:140)ects	since	the	early	1990s(cid:484)	Prior	to	forming	(cid:11)ill	(cid:28)oung(cid:481)	Richard	held	a	number	of	Senior	(cid:8)(cid:154)ecutive	positions	in	(cid:11)ong	(cid:14)ong	and	New	(cid:28)or(cid:141)	with	(cid:11)S(cid:5)C(cid:484)	(cid:11)e	was	admitted	as	an	attorney	in	New	(cid:28)or(cid:141)	State	and	was	registered	by	the	US	Securities	(cid:428)	(cid:8)(cid:154)change	Commission	and	the	Ontario	Securities	Commission(cid:484)	(cid:11)e	is	the	Chairman	of	Sirte(cid:154)	(cid:16)edical	Limited	(listed	on	the	ASX)(cid:484)	In	addition	Richard	is	Chairman	of	the	(cid:26)estmead	(cid:16)illennium	Institute	for	(cid:16)edical	Research(cid:484)		(cid:13)oseph	(Seph)	Glew	Non(cid:486)(cid:8)(cid:154)ecutive	Director			Seph	has	wor(cid:141)ed	in	the	commercial	property	industry	in	New	(cid:29)ealand(cid:481)	the	USA	and	Australia(cid:484)	Seph	has	driven	large	scale	property	development	and	financial	structuring	for	real	estate	for	over	30	years(cid:484)	In	addition(cid:481)	since	the	early	1990s	Seph	has	run	many	(cid:498)turn(cid:486)around(cid:499)	processes	in	relation	to	distressed	properties	and	property	structures	for	both	private	and	institutional	property	owners(cid:484)		(cid:26)hile	wor(cid:141)ing	for	the	(cid:11)ousing	Corporation	of	New	(cid:29)ealand	and	then	A(cid:16)P(cid:481)	Seph	(cid:147)ualified	as	a	registered	valuer	and	holds	a	(cid:5)achelor	of	Commerce(cid:484)	In	the	1980s	he	served	as	an	(cid:8)(cid:154)ecutive	Director	with	New	(cid:29)ealand	based	property	group	Chase	Corporation	and	as	a	Non(cid:486)(cid:8)(cid:154)ecutive	Director	with	a	number	of	other	listed	companies	in	New	(cid:29)ealand	and	Australia(cid:484)		Robin	Tedder	Non(cid:486)(cid:8)(cid:154)ecutive	Director			Robin	has	wor(cid:141)ed	in	finance	and	investment	since	1976	during	which	time	he	has	served	as	the	C(cid:8)O	of	an	investment	ban(cid:141)	and	as	non	e(cid:154)ecutive	director	on	the	boards	of	public	and	private	companies	in	ban(cid:141)ing(cid:481)	insurance(cid:481)	funds	management(cid:481)	property(cid:481)	healthcare(cid:481)	retail	and	wine(cid:484)	(cid:11)e	was	a	member	of	ASX	for	many	years(cid:484)	(cid:11)e	is	the	Chairman	of	investment	company	(cid:25)intage	Capital	and	has	been	an	investor	in	(cid:5)lac(cid:141)(cid:26)all	Group	pro(cid:140)ects	since	1997(cid:484)	Robin	is	also	the	Chairman	of	the	(cid:5)lac(cid:141)(cid:26)all	(cid:5)oard	Audit	Committee(cid:484)	BLACKWALLPROPERRTYTUST29BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016DIRECTORS’ REPORT (Part 2)		Stuart	(cid:5)rown	(cid:8)(cid:154)ecutive	Director	and	Chief	(cid:8)(cid:154)ecutive	Officer			Stuart	has	been	involved	in	property	investment	for	over	18	years(cid:484)	Stuart	has	run	debt	and	e(cid:147)uity	raising	in	relation	to	listed	and	unlisted	real	estate	structures	with	over	a	half	a	billion	dollars	in	value(cid:484)			In	his	earlier	career(cid:481)	Stuart	practised	as	a	solicitor	in	the	areas	of	real	estate(cid:481)	mergers	and	ac(cid:147)uisitions	and	corporate	advisory	with	(cid:16)allesons	and	Gilbert	(cid:938)	Tobin(cid:484)	Stuart	is	an	independent	Director	of	Coogee	(cid:5)oys’	Preparatory	School	and	Randwic(cid:141)	District	Rugby	Union	Football	Club(cid:484)		Caroline	Raw	Company	Secretary				Caroline	Raw	(cid:140)oined	the	(cid:5)lac(cid:141)(cid:26)all	team	in	2013	and	is	responsible	for	e(cid:154)ecuting	corporate	and	fund	transactions	across	the	(cid:5)lac(cid:141)(cid:26)all	Group(cid:484)		Caroline	has	been	practising	as	a	solicitor	in	NS(cid:26)	since	200(cid:887)	and	has	wor(cid:141)ed	predominantly	on	IPOs(cid:481)	public	and	private	capital	raisings(cid:481)	funds	management(cid:481)	corporate	advisory(cid:481)	ta(cid:141)eovers	and	mergers	and	ac(cid:147)uisitions(cid:484)	Caroline	holds	a	(cid:5)achelor	of	Commerce(cid:481)	(cid:5)achelor	of	Laws	and	Graduate	Diploma	in	Applied	Corporate	Governance(cid:484)	Caroline	is	also	a	Chartered	Secretary	and	Associate	(cid:16)ember	of	the	Governance	Institute	of	Australia(cid:484)			Meeting	Attendances		Director		No.	of	Board	Meetings	Held	Board	Meeting	Attendance	Richard	(cid:11)ill		10	10	Seph	Glew	10	10	Robin	Tedder	10	10	Stuart	(cid:5)rown	10	10		Key	Management	Personnel’s	Relevant	Interests	(cid:14)(cid:16)P	include	all	Directors	and	the	Chief	Financial	Officer	(Tim	(cid:5)rown)(cid:484)	Their	current	relevant	interests	in	the	Trust	are	shown	below(cid:484)			12	August	2015		Net	change		15	August	2016	Richard	(cid:11)ill	394(cid:481)21(cid:887)	123(cid:481)600	(cid:887)17(cid:481)81(cid:887)	Seph	Glew	4(cid:481)134(cid:481)(cid:887)03	1(cid:481)768(cid:481)932	(cid:887)(cid:481)903(cid:481)43(cid:887)	Robin	Tedder	(cid:887)(cid:481)140(cid:481)96(cid:887)	(3(cid:481)(cid:887)19(cid:481)(cid:887)0(cid:887))	1(cid:481)621(cid:481)460	Stuart	(cid:5)rown	467(cid:481)346	13(cid:481)993	481(cid:481)339	Tim	(cid:5)rown	28(cid:481)844	13(cid:481)02(cid:887)	41(cid:481)869	Total	10,165,873	(1,599,955)	8,565,918		No	salary(cid:481)	cash	bonus	or	monetary	benefit	was	paid	out	of	the	Trust’s	assets	to	any	(cid:14)(cid:16)P	during	the	year(cid:484)	Options		There	were	no	options	granted	during	the	year	ended	30	(cid:13)une	2016(cid:484)	There	are	no	options	on	issue	as	at	the	date	of		this	report(cid:484)					BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201630DIRECTORS’ REPORT (Part 2)			Responsible	Entity	and	Custodian	Remuneration			The	Responsible	(cid:8)ntity’s	remuneration	details	can	be	found	under	the	Related	Party	Transactions	note	of	the	financial	statements(cid:484)		The	Custodian	is	The	Trust	Company	Limited(cid:484)	The	custody	fee	is	calculated	at	the	greater	of	(cid:836)1(cid:887)(cid:481)000	p(cid:484)a(cid:484)	or	0(cid:484)02(cid:887)(cid:936)	p(cid:484)a(cid:484)	of	the	gross	asset	value	up	to	(cid:836)100	million	then	0(cid:484)01(cid:887)(cid:936)	for	gross	assets	value	between	(cid:836)100(cid:486)(cid:836)(cid:887)00	million	of	the	Trust(cid:481)	plus	GST(cid:484)	In	addition(cid:481)	the	Custodian	is	entitled	to	be	paid	any	out(cid:486)of(cid:486)poc(cid:141)et	e(cid:154)penses	incurred	in	the	performance	of	its	duties(cid:484)				Interests	in	the	Trust		At	the	date	of	this	report(cid:481)	the	Trust	has	(cid:887)7(cid:481)828(cid:481)889	units	on	issue	after	1(cid:481)341(cid:481)(cid:887)09	buy(cid:486)bac(cid:141)	and	issue	of	12(cid:481)477(cid:481)068	new	(cid:5)(cid:26)R	units	((cid:13)une	2016(cid:483)	(cid:887)7(cid:481)837(cid:481)613	units	on	issue)(cid:484)	The	Responsible	(cid:8)ntity	and	its	associates	held	9(cid:484)4	million	units	in	the	Trust(cid:484)			Value	of	the	Trust’s	Assets		At	30	(cid:13)une	2016(cid:481)	the	Trust’s	assets	value	is	set	out	in	the	Trust’s	Consolidated	Statement	of	Financial	Position(cid:484)		Refer	to	the	Investment	Properties	and	Property	(cid:13)oint	(cid:25)entures	notes	for	valuation	details(cid:484)		Environmental	Regulation			The	Trust	and	its	controlled	entity’s	operations	are	not	regulated	by	any	significant	environmental	law	or	regulation	under	either	Commonwealth	or	State	legislation(cid:484)	(cid:11)owever(cid:481)	the	Responsible	(cid:8)ntity	believes	that	the	Trust	and	its	controlled	entity	have	ade(cid:147)uate	systems	in	place	for	the	management	of	its	environmental	re(cid:147)uirements	and	is	not	aware	of	any	instances	of	non(cid:486)compliance	of	those	environmental	re(cid:147)uirements	as	they	apply	to	the	Trust(cid:484)		Indemnities	of	Officers		During	the	financial	year	the	Responsible	(cid:8)ntity	has	paid	premiums	to	insure	each	of	the	Directors	named	in	this	report	along	with	Officers	of	the	Responsible	(cid:8)ntity	against	all	liabilities	for	costs	and	e(cid:154)penses	incurred	by	them	in	defending	any	legal	proceedings	arising	out	of	their	conduct	while	acting	in	the	capacity	of	Director	or	Officer	of	the	Responsible	(cid:8)ntity(cid:481)	other	than	conduct	involving	a	wilful	breach	of	duty(cid:484)		The	insurance	policy	prohibits	disclosure	of	the	nature	of	the	liability(cid:481)	the	amount	of	the	premium	and	the	limit	of	liability(cid:484)				No	indemnities	have	been	given	or	insurance	premiums	paid(cid:481)	during	or	since	the	end	of	the	financial	year(cid:481)	for	any	person	who	is	or	has	been	an	auditor	to	the	Trust(cid:484)		Corporate	Governance	Statement		A	description	of	the	Trust’s	current	corporate	governance	practices	is	set	out	in	the	Trust’s	corporate	governance	statement	which	can	be	viewed	at	http(cid:483)(cid:512)(cid:512)www(cid:484)blac(cid:141)wall(cid:484)com(cid:484)au(cid:512)about(cid:486)us(cid:484)html(cid:484)		Auditor	and	Non(cid:486)audit	Services		(cid:836)12(cid:481)000	was	paid	to	the	auditor	for	non(cid:486)audit	services	during	the	year	(201(cid:887)(cid:483)	(cid:836)12(cid:481)178)	as	detailed	in	the	Auditor’s	Remuneration	note	of	the	financial	statements(cid:484)	The	Directors	are	satisfied	that	the	provision	of	non(cid:486)audit	services	is	compatible	with	the	general	standard	of	independence	for	auditors	imposed	by	the	Corporations	Act	2001(cid:484)	The	nature	and	scope	of	each	type	of	non(cid:486)audit	service	provided	means	that	auditor	independence	was	not	compromised(cid:484)		BLACKWALLPROPERRTYTUST31BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016DIRECTORS’ REPORT (Part 2)			A	copy	of	the	auditor’s	independence	declaration	as	re(cid:147)uired	under	Section	307C	of	the	Corporations	Act	2001	is	set	out	in	these	financial	statements(cid:484)		(cid:8)S(cid:25)	continues	in	office	in	accordance	with	section	327	of	the	Corporations	Act	2001(cid:484)		Rounding	of	Amounts		The	Company	is	of	a	(cid:141)ind	referred	to	in	ASIC	Legislative	Instrument	2016(cid:512)191(cid:481)	and	in	accordance	with	that	legislative	instrument	amounts	in	the	Directors’	Report	and	the	financial	statements	are	rounded	off	to	the	nearest	thousand	dollars(cid:481)	unless	otherwise	indicated(cid:484)		Signed	in	accordance	with	a	resolution	of	the	(cid:5)oard	of	Directors(cid:484)				Stuart	Brown		Director	Sydney(cid:481)	24	August	2016																														AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 

As auditor for the audit of Blackwall Property Trust and its Controlled Entities for the year ended 30 
June 2016, I declare that, to the best of my knowledge and belief, there have been: 

(i)  no contraventions of the auditor’s independence requirements as set out in the Corporations 

Act 2001  in relation to the audit; and  

(ii)  no contraventions of any applicable code of professional conduct in relation to the audit. 

Dated at Sydney the 23rd day of August 2016. 

ESV Accounting and Business Advisors 

Tim Valtwies 
Partner 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BLACKWALLPROPERRTYTUST33BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016DIRECTORS’ DECLARATION	In	the	opinion	of	the	Directors	of	(cid:5)lac(cid:141)(cid:26)all	Fund	Services	Limited(cid:481)	the	Responsible	(cid:8)ntity	of	(cid:5)lac(cid:141)(cid:26)all	Property	Trust(cid:483)		(a) the	financial	statements	and	notes	are	in	accordance	with	the	Corporations	Act	2001(cid:481)	including(cid:483)	(i) complying	with	Accounting	Standards(cid:481)	the	Corporations	Regulations	2001	and	other	mandatory	professional	reporting	re(cid:147)uirements(cid:482)	and	(ii) giving	a	true	and	fair	view	of	the	Trust’s	financial	position	as	at	30	(cid:13)une	2016	and	of	its	performance	for	the	financial	year	ended	on	that	date(cid:482)	and		(b) there	are	reasonable	grounds	to	believe	that	the	Trust	will	be	able	to	pay	its	debts	as	and	when	they	become	due	and	payable(cid:484)			Statement	of	Significant	Accounting	Policies	confirms	that	the	financial	statements	also	comply	with	International	Financial	Reporting	Standards	as	issued	by	the	International	Accounting	Standards	(cid:5)oard(cid:484)			The	Directors	of	the	Responsible	(cid:8)ntity	have	been	given	the	declarations	by	the	Chief	(cid:8)(cid:154)ecutive	Officer	and	Chief	Financial	Officer	re(cid:147)uired	by	section	29(cid:887)A	of	the	Corporations	Act	2001(cid:484)			This	declaration	is	made	in	accordance	with	a	resolution	of	the	(cid:5)oard	of	Directors	of	the	Responsible	(cid:8)ntity(cid:484)				Stuart	Brown	Director	Sydney(cid:481)	24	August	2016																BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201634		Additional	information	re(cid:147)uired	by	the	Australian	Securities	(cid:8)(cid:154)change	and	not	shown	elsewhere	in	this	report	is	as	follows(cid:484)	The	unitholder	information	set	out	below	was	current	as	at	1(cid:887)	August	2016(cid:484)		1.	Unitholders			The	Trust’s	top	20	largest	unitholdings	were(cid:483)				Investor	Units		(No.)	Units	(%)	1	Pelorus	Private	(cid:8)(cid:147)uity	Limited		9(cid:481)921(cid:481)999		17(cid:484)16	2	(cid:5)lac(cid:141)(cid:26)all	Limited		6(cid:481)083(cid:481)781		10(cid:484)(cid:887)2	3	Sandhurst	Trustees	Ltd	(cid:948)AI(cid:16)S	PSF	A(cid:512)C(cid:949)		(cid:887)(cid:481)847(cid:481)669		10(cid:484)11	4	Australia	Opportunity	Fund	1			4(cid:481)320(cid:481)000		7(cid:484)47	(cid:887)	(cid:16)r	Archibald	Geoffrey	Loudon		3(cid:481)688(cid:481)20(cid:887)		6(cid:484)38	6	(cid:5)lac(cid:141)(cid:26)all	Fund	Services	Limited		3(cid:481)329(cid:481)2(cid:887)4		(cid:887)(cid:484)76	7	Seno	(cid:16)anagement	Pty	Ltd	(cid:948)Taipa	A(cid:512)C(cid:949)		2(cid:481)73(cid:887)(cid:481)000		4(cid:484)73	8	Lym(cid:141)eesh	Pty	Ltd	(cid:948)(cid:8)mployees	Super	Fund	A(cid:512)C(cid:949)		1(cid:481)4(cid:887)9(cid:481)917		2(cid:484)(cid:887)2	9	Aleri(cid:141)	Pty	Limited	(cid:948)The	Aleri(cid:141)	Unit	A(cid:512)C(cid:949)		1(cid:481)078(cid:481)016		1(cid:484)86	10	(cid:14)oonta	Pty	Ltd	(cid:948)(cid:14)oonta	Super	Fund	A(cid:512)C(cid:949)		781(cid:481)489		1(cid:484)3(cid:887)	11	(cid:14)oonta	Pty	Ltd	(cid:948)The	Tedder	Family	A(cid:512)C(cid:949)		7(cid:887)3(cid:481)43(cid:887)		1(cid:484)30	12	Seno	(cid:16)anagement	Pty	Ltd	(cid:948)Seno	Super	Fund	A(cid:512)C(cid:949)		730(cid:481)000		1(cid:484)26	13	Glenahilty	Ltd		(cid:887)79(cid:481)06(cid:887)		1(cid:484)00	14	SAO	Investments	Pty	Ltd		(cid:887)7(cid:887)(cid:481)782		1(cid:484)00	1(cid:887)	Pinnatus	Pty	Ltd			476(cid:481)(cid:887)01		0(cid:484)82	16	I	P	R	Nominees	Pty	Ltd	(cid:948)196(cid:887)	Irvin	Peter	Roc(cid:141)man	A(cid:512)C(cid:949)		422(cid:481)639		0(cid:484)73	17	Lym(cid:141)eesh	Pty	Ltd		373(cid:481)103		0(cid:484)6(cid:887)	18	Castle	(cid:5)ay	Pty	Limited			370(cid:481)047		0(cid:484)64	19	(cid:16)r	Richard	(cid:11)ill	(cid:428)	(cid:16)rs	(cid:8)velyn	(cid:11)ill	(cid:948)Richard	(cid:11)ill	Super	Fund	A(cid:512)C(cid:949)		33(cid:887)(cid:481)184		0(cid:484)(cid:887)8	20	(cid:13)PS	Properties	Pty	Ltd		280(cid:481)000		0(cid:484)48										ASX ADDITIONAL INFORMATIONBLACKWALLPROPERRTYTUST35BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016ASX ADDITIONAL INFORMATION			2.	Distribution	of	Unitholders		The	distribution	of	unitholders	by	si(cid:156)e	of	holding	was(cid:483)		Category	No.	of	Holders	1(cid:486)1(cid:481)000		227		1(cid:481)001(cid:486)(cid:887)(cid:481)000		(cid:887)01		(cid:887)(cid:481)001(cid:486)10(cid:481)000		181		10(cid:481)001(cid:486)100(cid:481)000		234		100(cid:481)001	and	over		4(cid:887)		Total	number	of	unitholders	1,188		The	Trust	has	(cid:887)6	holders	of	less	than	a	mar(cid:141)etable	parcel(cid:484)	The	Trust	has	(cid:887)7(cid:481)828(cid:481)889	units	on	issue	after	1(cid:481)341(cid:481)(cid:887)09	buy(cid:486)bac(cid:141)	and	issue	of	12(cid:481)477(cid:481)068	new	(cid:5)(cid:26)R	units(cid:484)	All	units	carry	one	vote	per	unit	without	restrictions(cid:484)	All	units	are	(cid:147)uoted	on	the	Australian	Securities	(cid:8)(cid:154)change	(ASX(cid:483)	(cid:5)(cid:26)R)(cid:484)				3.	Substantial	Unitholders		The	Trust’s	substantial	unitholders	are	set	out	below(cid:483)		Investor	Units		(No.)	Units	(%)	Pelorus	Private	(cid:8)(cid:147)uity	Limited	9(cid:481)921(cid:481)999	17(cid:484)16	(cid:5)lac(cid:141)(cid:26)all	Limited	9(cid:481)413(cid:481)03(cid:887)		16(cid:484)28	Seph	Glew	(cid:887)(cid:481)903(cid:481)43(cid:887)		10(cid:484)21	Sandhurst	Trustees	Ltd	(cid:948)AI(cid:16)S	PSF	A(cid:512)C(cid:949)	(cid:887)(cid:481)847(cid:481)669		10(cid:484)11	Australia	Opportunity	Fund	1	4(cid:481)320(cid:481)000		7(cid:484)47	Archibald	Geoffrey	Loudon	4(cid:481)267(cid:481)270	7(cid:484)38	Paul	Tresidder	3(cid:481)991(cid:481)4(cid:887)(cid:887)	6(cid:484)90																BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201636TRUST DETAILS	The	Responsible	(cid:8)ntity’s	details	are	as	follows(cid:483)		Registered	office	and	principal	place	of	business	(cid:5)lac(cid:141)(cid:26)all	Fund	Services	Limited	Level	1(cid:481)	(cid:887)0	(cid:28)eo	Street	Neutral	(cid:5)ay	NS(cid:26)	2089		Telephone	(cid:938)612	9033	8611		Fa(cid:154)	(cid:938)612	9033	8600		(cid:26)ebsite	www(cid:484)blac(cid:141)wall(cid:484)com(cid:484)au		Registry	Computershare	Investor	Services	Pty	Limited	GPO	(cid:5)o(cid:154)	297(cid:887)		(cid:16)elbourne	(cid:25)IC	3001	www(cid:484)computershare(cid:484)com(cid:484)au	Telephone(cid:483)	(cid:938)613	941(cid:887)	4329					INDEPENDENT AUDITOR’S REPORT TO THE (cid:48)E(cid:48)(cid:37)ERS OF (cid:37)LAC(cid:46)(cid:58)ALL PROPERT(cid:60) TRUST AND 
CONTROLLED ENTITIES 

Report on the Financial Report    

We  have  audited  the  accompanying  financial  report  of  Blackwall  Property  Trust  and  Controlled 
Entities ("the Trust"), which comprises the consolidated statement of financial position as at 30 June 
income,  the 
2016,  the  consolidated  statement  of  profit  or 
consolidated  statement  of  changes  in  net  assets  attributable  to  unit  holders  and  the  consolidated 
statement  of  cash  flows  for  the  year  then  ended,  notes  comprising  a  summary  of  significant 
accounting  policies  and  other  explanatory  information,  and  the  directors’  dec(cid:142)aration  of  the  Trust 
and the entities it controlled at 30 June 2016 year end. 

loss  and  other  comprehensive 

Directors' Responsibility for the Financial Report 

The directors of Blackwall Fund Services Limited, the Responsible Entity of the Trust, are responsible 
for  the  preparation  of  the  financial  report  that  gives  a  true  and  fair  view  in  accordance  with 
Australian Accounting Standards and the  Corporations Act 2001 and for such internal control as the 
directors determine is necessary to  enable the preparation of the financial  report that gives a true 
and fair view and is free from material misstatement, whether due to fraud or error. In Note 25, the 
directors  also  state,  in  accordance  with  Accounting  Standard  AASB  101  Presentation  of  Financial 
Statements, that the financial statements comply with International Financial Reporting Standards. 

Auditor's Responsibility 

Our responsibility is to express an opinion on the financial report based on our audit. We conducted 
our audit in accordance with Australian Auditing Standards. Those standards require that we comply 
with relevant ethical requirements relating to audit engagements, and plan and perform the audit to 
obtain reasonable assurance about whether the financial report is free from material misstatement. 

An  audit  involves  performing  procedures  to  obtain  audit  evidence  about  the  amounts  and 
disc(cid:142)osures  in  the  financia(cid:142)  report(cid:484)  (cid:23)he  procedures  se(cid:142)ected  depend  on  the  auditor’s  (cid:140)ud(cid:137)ement(cid:481) 
including the assessment of the risks of material misstatement of the financial report, whether due 
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to 
the Trust’s preparation of the financia(cid:142) report that (cid:137)ives a true and fair vie(cid:153) in order to desi(cid:137)n audit 
procedures  that  are  appropriate  in  the  circumstances,  but  not  for  the  purpose  of  expressing  an 
opinion  on  the  effectiveness  of  the  Trust’s  interna(cid:142)  contro(cid:142)(cid:484)  (cid:4)n  audit  a(cid:142)so  inc(cid:142)udes  eva(cid:142)uatin(cid:137)  the 
appropriateness of accounting policies used and the reasonableness of accounting estimates made 
by the directors, as well as evaluating the overall presentation of the financial report.  

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

Independence 

In conducting our audit, we have complied with the independence requirements of the Corporations 
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which 
has  been  given  to  the  directors  of  Blackwall  Fund  Services  Limited,  the  Responsible  Entity  of  the 
Trust(cid:481) (cid:153)ou(cid:142)d (cid:132)e in the same terms if (cid:137)iven to the directors as at the time of this auditor’s report(cid:484)  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT TO THE INVESTORS OF BLACKWALL PROPERTY TRUST AND 
CONTROLLED ENTITIES 

We have given the directors of the (cid:21)esponsi(cid:132)(cid:142)e (cid:8)ntit(cid:155) an (cid:4)uditor’s (cid:12)ndependence (cid:7)eclaration, a copy 
which is included in the financial report. 

Opinion 

In our opinion: 

(a) 

the  financial  report  of  Blackwall  Property  Trust  and  its Controlled  Entities  is  in  accordance 
with the Corporations Act 2001, including:  

(i)  giving a true and fair view of the (cid:23)rust’s financial position as at 30 June 2016 and of its 

performance for the year ended on that date; and 

(ii) complying with Australian Accounting Standards and  the Corporations Regulations 2001; 

and 

(b) 

the  financial  report  also  complies  with  International  Financial  Reporting  Standards  as 
disclosed in Note 25. 

Dated at Sydney the 24th day of August 2016. 

ESV Accounting and Business Advisors 

Tim Valtwies 
Partner 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BLACKWALLPROPERRTYTUST39BlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 2016	Notes	to	the	Financial	Statements		1(cid:484)Segment	Information								Page	11	CONTENTS	1(cid:484) Segment	Information								Page	11	2(cid:484) Revenue										Page	11	3(cid:484) (cid:8)(cid:154)penses										Page	11	4(cid:484) Current	Assets	(cid:486)	Cash	and	cash	e(cid:147)uivalents					Page	12	(cid:887)(cid:484) Current	Assets	(cid:486)	Trade	and	other	receivables					Page	12	6(cid:484) Current	Assets	(cid:486)	Other	assets							Page	12	7(cid:484) Current	Assets	–	(cid:11)eld	for	sale	properties						Page	12	8(cid:484) Non(cid:486)current	Assets	(cid:486)	Investment	properties					Page	13	9(cid:484) Non(cid:486)current	Assets	–	Property	(cid:140)oint	ventures					Page	13	10(cid:484) Current	Liabilities	(cid:486)	Trade	and	other	payables					Page	14	11(cid:484) Current	Liabilities	(cid:486)	Other	liabilities						Page	14	12(cid:484) Current	and	Non(cid:486)current	Liabilities	(cid:486)	(cid:5)orrowings					Page	14	13(cid:484) Current	and	Non(cid:486)current	Liabilities	–	Interest	rate	hedges			Page	1(cid:887)	14(cid:484) Distributions										Page	1(cid:887)	1(cid:887)(cid:484) (cid:8)arnings	Per	Unit									Page	16	16(cid:484) Auditor’s	Remuneration								Page	16	17(cid:484) Commitments		and	Contingencies							Page	16	18(cid:484) Reconciliation	of	Operating	Cash	Flows						Page	16	19(cid:484) Subse(cid:147)uent	(cid:8)vents									Page	17	20(cid:484) Controlled	(cid:8)ntities									Page	17	21(cid:484) Related	Party	Transactions								Page	17	22(cid:484) Parent	(cid:8)ntity	Disclosures									Page	18	23(cid:484) Financial	Ris(cid:141)	(cid:16)anagement								Page	19	24(cid:484) Critical	Accounting	(cid:8)stimates	and	(cid:13)udgments					Page	21	2(cid:887)(cid:484) Statement	of	Significant	Accounting	Policies					Page	22BLACKWALLPROPERRTYTUSTBlackWall Property Trust - Consolidated Annual Financial Report For The Year Ended 30 June 201640GLOSSARY	(cid:5)(cid:26)R	(cid:512)	Trust	(cid:5)lac(cid:141)(cid:26)all	Property	Trust	(cid:5)lac(cid:141)(cid:26)all		(cid:5)lac(cid:141)(cid:26)all	Limited	(formerly	(cid:141)nown	as	(cid:5)lac(cid:141)(cid:26)all	Property	Funds	Limited)	and(cid:481)	where	applicable(cid:481)	its	subsidiaries	(including	(cid:5)lac(cid:141)(cid:26)all	Fund	Services	Limited)	(cid:5)OF	(cid:5)lac(cid:141)(cid:26)all	Opportunities	Fund		(cid:5)T(cid:11)T	(cid:5)lac(cid:141)(cid:26)all	Telstra	(cid:11)ouse	Trust	Consolidated	annual	financial	report	Financial	statements	Custodian	The	Trust	Company	Limited	(cid:8)PU	(cid:8)arnings	per	unit	F(cid:25)TPL	Fair	value	through	profit	and	loss	GST	Goods	and	services	ta(cid:154)	IFRS	International	Financial	Reporting	Standards		(cid:14)(cid:16)P	(cid:14)ey	management	personnel	Outside	e(cid:147)uity	interests	Non(cid:486)controlling	interests	p(cid:484)a(cid:484)	Per	annum	P(cid:5)T	Pyrmont	(cid:5)ridge	Trust	Property	(cid:140)oint	ventures	Financial	assets	at	F(cid:25)TPL	Pub	Group	Pelathon	Pub	Group	Responsible	(cid:8)ntity	(cid:5)lac(cid:141)(cid:26)all	Fund	Services	Limited	ROC	Returns	of	Capital	(cid:26)OTSO	(cid:11)ouse	Formerly	(cid:141)nown	as	Telstra	(cid:11)ouse			GLOSSARYConsolidated Annual Financial ReportYear Ended 30 June 2016Level 1, 50 Yeo Street Neutral Bay, NSW 2089Responsible Entity: BlackWall Fund Services LimitedABN 39 079 608 825www(cid:484)blac(cid:141)wall(cid:484)com(cid:484)au