MACQUARIE LEISURE TRUST GROUP

HALF YEAR UPDATE 31 DECEMBER 2006 Invest where you play

Performance highlights 2 - d’Albora Marinas expansion - Capital and financial risk to drive revenue growth 6 management 9 Chief executive officer’s report - New developments and - Strategy and outlook 9 - Strong local attendance targeted acquisitions boosts revenue for Portfolio summary 10 underpin growth in 4 bowling division 7 Distribution timetable 12 - WhiteWater World opens - Main Event performs Corporate directory IBC ahead of schedule 5 ahead of expectations 8 Macquarie Leisure owns and operates world class leisure assets including Dreamworld, WhiteWater World, d’Albora Marinas, AMF Bowling and the US family entertainment business Main Event. The aim is to deliver consistent revenue and rental growth by driving operational efficiencies within the assets.

We are pleased to announce another successful six months. Strong performances across each of the divisions have delivered a 19%(1) increase in Group profit.

Over the period, earnings per security increased 6% to 9.93 cents(1), with distributions per security up 14% to 8 cents.

We have continued to diversify the Macquarie Leisure business over the past six months with the successful opening of WhiteWater World on ’s Gold Coast, the acquisition of the Kingpin bowling and family entertainment business, the completion of the Victoria Harbour marina development at Melbourne’s Docklands and excitingly, the acquisition of Main Event Holdings, Inc in the United States – the Group’s first offshore division.

We remain confident that Macquarie Leisure will continue to cement its position as one of Australia’s most successful owners and operators of premium leisure assets.

Greg Shaw Chief Executive Officer Macquarie Leisure Trust Group

(1) Excluding WhiteWater World pre-opening expenses of $1.2 million, straight line rental expense, unrealised loss/gain on derivatives, prior half year revaluation and AIFRS finance costs.

Macquarie Leisure Trust Group | Half year update  Performance highlights

The past six months have seen significant diversification of the Group, building a broader platform for earnings growth

Activity highlights

Highlights for the six months to % % 31 December 2006 include: 24 23 accumulated returns to increase in revenue(1) for the securityholders for the six six months to 31 December months to 31 December 2006 2006

%(2) 19 9.93 cents(2) increase in Group profit for earnings per security – the six months to an increase of 6% 31 December 2006

8 cents 1st distribution per security – an named the best performing increase of 14% property trust in Australia for the second year running(3)

(1) From operating activities excluding revaluations and $56 million interest income. (2) Excluding WhiteWater World development of WhiteWater pre-opening expenses of World completed ahead of $1.2 million, straight line rental schedule and on budget expense, unrealised loss/gain on derivatives, prior half year revaluation and AIFRS finance costs. (3) BDO Australia Listed Property Trust Survey 2006.

 The popularity of leading brands, including The Wiggles, has helped to attract and retain loyal patronage to Dreamworld from the south east market.

Performance in brief

This table shows a snapshot 6 months to 6 months to of Macquarie Leisure’s 31 Dec 06 31 Dec 05 financial performance for the Group performance half year to 31 December Revenue from operating activities $117.2m $95.6m 2006. Rental income from The full financial report is investment properties $32.2m $29.6m available online at Net consolidated income(1) $20.1m $16.8m www.macquarie.com.au/mle Earnings per security(1) 9.93c 9.34c or by calling 1300 365 585. Securityholder returns Total distribution $17.1m $12.7m Distribution per security 8.00c 7.00c Securityholder value As at As at 31 Dec 06 30 Jun 06 Total asssets $609.8m $458.3m Securityholders’ equity $407.5m $322.5m Gearing ratio(2) 24.1% 22.0% Number of securities on issue 213,862,353 182,867,614 Net tangible assets per security(3) $1.61 $1.70 Number of securityholders 7,955 7,758 Closing price $2.98 $2.50 Market capitalisation $637.3m $457.2m

Note: All amounts referred to are in Australian currency unless otherwise stated. (1) Earnings before WhiteWater World pre-opening expenses, straight line rental expenses, unrealised gain/loss on derivatives, unrealised valuation gains and AIFRS finance costs. (2) Gearing ratio is 27.2% (June 2006: 23%) if the distribution paid on 28 February 2007 was included in the calculation. (3) Net tangible assets per stapled security are $1.53 (June 2006: $1.63) after deducting the distribution in respect of the half year ended 31 December 2006 which was paid on 28 February 2007.

Macquarie Leisure Trust Group | Half year update  Chief executive officer’s report

It has been an exciting six months with a range of substantial new developments and acquisitions across the portfolio

Strong performance has invests in premium leisure increasing since the Sydney continued across Macquarie assets including Dreamworld, Olympics and introduction of Leisure’s key assets with solid WhiteWater World, d’Albora GST in 2000. This strategy has revenue and profit results Marinas and AMF Bowling, also produced a consistent recorded during the period. and an operator that leases year-on-year improvement in It has been an exciting six the properties from the Trust operating margin over the past months with a range of and operates the businesses. six years. Keen management substantial new developments The Trust pays distributions to focus saw 99% of incremental and acquisitions across the investors, which are dependent revenue for the period convert portfolio. on the performance of the to earnings, resulting in record operator. In the following pages operating margins of 40.1%. Macquarie Leisure has again we explain how the activities of been recognised as Australia’s the operator have surpassed Dreamworld is a high profile best performing listed property performance expectations to theme park that benefits from trust in the 2006 BDO survey deliver higher distributions to its dominant position in the released in December 2006. investors. local market. Queensland We were pleased to receive attendances for the period this award for the second year grew by 3.1%. The popularity running – this year from 48 Strong local attendance of leading brands including Big listed entities. boosts revenue for Brother, Nickelodeon and The Dreamworld Wiggles has helped to attract We are also pleased to report Dreamworld continues to be and retain loyal patronage on the first few months of an important contributor to the from the growing south east business for the Group’s Group’s overall performance. Queensland market. exciting new US division, Total revenue for the period Main Event. The acquisition was $46.6 million, an Lower attendances from both of established Texas-based increase of 2.5% on the prior interstate and international family entertainment business corresponding period. This markets, down 3.2% and 9.8% Main Event Holdings, Inc (Main helped to drive rental growth of respectively, resulted in overall Event), represents a significant 7.5% for the period. attendance falling 2% for the new operating platform for the period. Lower international Trust in the United States – one A long term focus on attendance is being addressed of the world’s largest leisure continually improving through the recent appointment markets. operational efficiency has of additional marketing delivered consistent results for resources targeting attendance Macquarie Leisure Trust Group investors, with revenue and from New Zealand and Japan. is a stapled entity comprising rental growth both steadily a listed property trust, which  Per capita expenditure, however, continued to grow strongly. Overall spending reached a record $62.60 per The Green Room at WhiteWater World, the new world class theme park on the Gold Coast. capita, up 4.6% on the prior corresponding period.

Post balance date, we have destination at Coomera. We We are pleased to report that seen a very pleasing start with are currently appealing this the new park achieved maiden January revenues of decision and undertaking earnings of $226,000 for the $10.6 million, up 3% on discussions with government period from 8 to 31 December January 2006, and unaudited to seek to ensure that 2006 (before pre-opening earnings also up 13% on the future planning rights deliver expenses). prior corresponding period. proper integration between This result was followed by These results have confirmed Dreamworld and the Coomera strong trading post balance the strategic benefit of the Town Centre. date when January revenues co-location of WhiteWater of $3.1 million were recorded, World and the success of the WhiteWater World opens delivering unaudited earnings two park World Pass strategy. ahead of schedule of $1.85 million. January Significant special event WhiteWater World opened for attendances from Queensland bookings secured for the trading three weeks ahead were ahead of expectations second half to 30 June 2007 of schedule on 8 December despite poor weather during already total $1.6 million, well 2006. The development is the the first two weeks of the in excess of last year’s figures first new Gold Coast theme month. Interstate attendances and benefiting from a major park in 15 years, and is a world for January were below one-off $1 million contract for class stand-alone normalised levels due to the March 2007. forming part of the broader launch timing. Per capita Dreamworld leisure precinct expenditure of $39.40 was In July 2006 the Gold on Queensland’s Gold Coast. ahead of expectations with Coast City Council declined Proving to be a successful stronger than anticipated the Group’s development addition to the Group it offers spending in the food and application to construct a a new generation of attractions beverage and merchandise fully integrated shopping, never before seen in the departments. entertainment and leisure Australian market, together with an expansive wave pool in a themed environment.

Macquarie Leisure Trust Group | Half year update  Chief executive officer’s report

WhiteWater World was developed with a five star efficiency rating on water usage

WhiteWater World opens 28.8 mega litres – equivalent With ultimate plans for a fully ahead of schedule to 28 Olympic sized swimming serviced marina of 178 berths, (continued) pools – a result that far Victoria Harbour is a multi- January 2007 also marked exceeds the Queensland million dollar development the successful launch of Water Commission’s water offering Melbournians a rare the World Pass, achieving consumption reduction target waterfront experience with a a total of 26,394 combined of 25%. As a result the park mix of commercial, retail and entries during the period. As has been recognised as 'one of residential facilities. WhiteWater World becomes the most water efficient water Expansion of the d’Albora better known in interstate parks in the world.' Nelson Bay marina was markets, we believe the successfully completed in time World Pass will provide an d’Albora Marinas for the busy summer season, increasing contribution towards expansion to maximise adding 32 berths including a total attendance of both revenue growth number of much sought after Dreamworld and WhiteWater Macquarie Leisure’s marina larger berths. World. The new park has business continues to benefit already received significant from strong demand from Both of these developments interest from corporate clients boating enthusiasts across are expected to enhance for special events. This is New South Wales and Victoria, earnings in the second half of expected to provide a material supporting steady year-on-year the 2007 financial year. contribution to earnings in the rental growth. d’Albora Marinas first half of financial year 2008. achieved total revenue of The Sydney Boatshare $9.5 million for the six months business was acquired in July WhiteWater World achieves to December 2006, up 4.5% 2006 in accordance with the five star efficiency rating on the prior corresponding Group’s strategy to become period. Rent totalled $4.9 a fully diversified marina WhiteWater World employs business. There has been environmentally friendly, million, a rise of 2.7% on the prior corresponding period. significant interest in the initial water saving technology inventory of five boats totalling in its operations. Where The d’Albora Marinas portfolio $4.3 million with 76% of shares conventional water demand for has been expanded over the sold as at 27 February 2007. a water park of similar size is past 12 months through the Sydney Boatshare provides a approximately 50 mega litres opening of the first stage of cost effective and affordable per year, WhiteWater World’s the Victoria Harbour marina in means by which people can annual water demand has Melbourne’s Docklands on enjoy luxury boating. It is been reduced to 21.2 mega 22 December 2006, and the our intention to expand this litres as a result of this initiative. expansion of Nelson Bay business across the d’Albora This is a saving of 57.6% or marina in New South Wales. Marinas portfolio.  Boats at Victoria Harbour marina in Docklands Melbourne, following completion of the first stage.

Post balance date, d’Albora Harbour, providing an exciting Garden City in New Zealand; Marinas' January 2007 flagship facility in New South Loganholme in Queensland; revenues totalled $2.2 million, Wales. Design and planning and Kingpin Crown and up 13% on January 2006, for the new Kingpin centre Richmond in Melbourne have while earnings increased 5% are on track and the facility all contributed strongly to on the prior corresponding is expected to open early in earnings. period. the first quarter of the 2008 financial year. Over the past 12 months, we have placed greater emphasis New developments and During the period the bowling on building a pipeline of new targeted acquisitions division generated total revenue developments for the bowling underpin growth in bowling of $44.4 million, up 9.2% on business, as evidenced division the prior corresponding period through major projects at The bowling division was and delivered rent of Kingpin Harbourside, Kingpin substantially enhanced during $11.1 million, up 24% on the Crown and AMF Strathfield. the period upon completion of prior corresponding period. These projects are due to the $11.3 million acquisition in commence in the coming August 2006 of Melbourne’s As anticipated, an emphasis months. In addition, minor Kingpin Crown bowling and on labour management redevelopments of another family entertainment centre and and improved purchasing six centres are currently in Kingpin Richmond facility. efficiencies saw margins grow planning with completion due to 29.4% from 26% 12 months within six months. The acquisition aligns naturally earlier. with the Group’s existing AMF Post balance date trading Bowling assets, and represents The bowling division's positive during January 2007 again a unique opportunity to result has been driven by reinforced the positive trend capitalise on the 18-35 year significant earnings growth at in the bowling division. old demographic, open play constant centres, up 7.1% on Revenues increased 17% on and corporate event markets. the prior year, and the success January 2006 and earnings As part of the acquisition, of new developments and were up 30% on the prior Macquarie Leisure also secured targeted acquisitions. The corresponding period (13% the opportunity to develop opening of Macarthur Centre excluding Kingpin). a Kingpin bowling lounge in July 2006; the acquisition of in Harbourside Shopping Centre at Sydney’s Darling

Macquarie Leisure Trust Group | Half year update  Chief executive officer’s report

Since acquisition, Main Event has performed above expectations with earnings 16% ahead of trading assumptions made at acquisition

Main Event performs ahead We are committed to the totalling $2.3 million. The of expectations further development of this seasonality of the business In August 2006, Macquarie already successful business. is expected to see stronger Leisure announced another Bowling’s status as the largest contributions in the second major bowling related indoor participation sport in half of the 2007 financial year. acquisition – and the first the US has seen the multi- Strong trading has also been offshore acquisition for the venue entertainment market recorded post balance date Group – with the US$45 million become one of the fastest with January 2007 revenues (A$60.1 million, excluding an growing segments in the US totalling $4.1 million, up 8% earn out payout) purchase of entertainment industry. A on the prior corresponding Texas-based entertainment US$4 billion industry, bowling in period, and earnings of group Main Event. Main Event the United States boasts twice $0.8 million up 24% on the is one of the largest operators the active participants of golf prior corresponding period. of indoor family entertainment and more than three times the centres in North America’s active participants of tennis or skiing. Construction of the two south west, with six established new sites at Webster in sites in Dallas, Fort Worth, Since acquisition, Main Houston, and Lubbock in Austin and Houston in Texas, Event has performed above Texas, are now well underway and two new sites due to open expectations with earnings with openings scheduled in calendar 2007. 16% ahead of trading in May and September 2007 respectively. A range This acquisition was a major assumptions made at of sites are currently being step forward for the Group acquisition. Total revenues for investigated for calendar as it helps to establish a solid the four month period since 2008 openings. growth platform in the vast acquisition equated to US leisure market. In the $14.7 million, with earnings US our strategy is to target established businesses that exhibit solid potential for further A US$4 billion industry, bowling in the growth and development. Main United States boasts twice the active Event met these criteria. It is an established concept with participants of golf and more than three a proven track record and a business that is well managed times the active participants of tennis or and resourced. skiing

 Main Event is one of the largest operators of indoor family entertainment centres in North America's south west.

Capital and financial risk We remain focused on driving revenue management Macquarie Leisure’s target increases and improving operating gearing range continues to be margins for Macquarie Leisure’s existing between 30% and 35%. With gearing currently at 24%, we businesses enjoy some funding flexibility when pursuing redevelopment, Following the successful We remain focused on refurbishment and acquisition opening of WhiteWater World, driving revenue increases and opportunities. our emphasis will be on improving operating margins building the special events for Macquarie Leisure’s At 31 December 2006, the market, interstate attendances existing businesses. We will Group had 68% of debt fixed and maximising opportunities also continue to focus on for approximately five years through the two park World development opportunities through interest rate swaps, at Pass. within existing businesses an average annual fixed rate and aim to deliver higher including margin of 6.25% for In the bowling division, further incremental returns. A$ debt and 5.62% for US$ revenue and margin growth debt. will be driven by the impact of Strategic acquisitions that new and refurbished centres can provide earnings growth Strategy and outlook planned over the next 12 through the complementary months, and the pursuit of bolt We continue to consolidate nature of the business will be on acquisitions. Macquarie Leisure’s position actively pursued. This strategy as one of the dominant asset ensures that investors benefit Within d’Albora Marinas we from the Group's existing owners and operators in key will be focusing on increasing leisure markets. operating experience and occupancy at the new Victoria expertise. In doing so, we seek Harbour and Nelson Bay The last six months have to enhance portfolio diversity facilities, as well as maximising been instrumental in creating by asset class and geographic incremental revenue a broader operating platform market, with particular opportunities through the for the Group with a stronger emphasis on opportunities in Sydney Boatshare business. development pipeline to drive the United States. future earnings growth. Finally, in the United States Main Event now represents a significant operating platform for the business.

Macquarie Leisure Trust Group | Half year update  Portfolio summary

Dreamworld

Location Dreamworld is located in Coomera, between Brisbane and the Gold Coast with easy access via the eight lane Pacific Highway. It is also close to Coomera railway station on the Brisbane-Gold Coast line. Market position One of Australia’s premier theme parks with a range of attractions that cater for all demographics. These include the Nick Central family zone, some of the tallest and fastest thrill rides in the world, one of the largest native Australian wildlife parks in south east Queensland, and the educational, conservation-based Tiger Island experience. Date of purchase 3 July 1998 Purchase price $100.3 million (including excess land) Title Freehold Site area 83.36 ha (including excess land) Valuation $229.2 million (excluding excess land)

WhiteWater World

Location WhiteWater World is located next to Dreamworld in Coomera, between Brisbane and the Gold Coast with easy access via the eight lane Pacific Highway. It is also close to Coomera railway station on the Brisbane-Gold Coast line. Market position A world class water park, WhiteWater World offers a new generation of attractions never seen before in the Australian market. It features a themed environment with an expansive wave pool and a host of water rides, including the popular SuperTubes Hydrocoaster, which appeals to the youth, family and corporate event markets. Date of completion 8 December 2006 Construction cost $56.4 million Title Freehold Site area Included in Dreamworld's site area.

10 Bowling division

Locations Freehold Leasehold Total Australian Capital Territory 1 1 2 New South Wales 1 13 14 Queensland 2 6 8 South Australia 3 1 4 Tasmania 2 0 2 Victoria 3 10 13 Western Australia 3 1 4 New Zealand 0 1 1 Total 15 33 48 Market position AMF is a market leader in ten pin bowling in Australia. The bowling centres are located in or around major metropolitan centres. Date of purchase AMF Bowling February 2005 BowlAustralia March 2005 Kingpin August 2006 Purchase price AMF Bowling $67.4 million BowlAustralia $8.5 million Kingpin $11.3 million Title Freehold/leasehold

Main Event

Locations Austin, Texas Fort Worth, Texas Grapevine, Dallas, Texas Lewisville, Dallas, Texas Plano, Dallas, Texas Shenandoah, Houston, Texas Market position Main Event is one of the largest operators of indoor family entertainment centres in the south west of North America. It has a tight geographic presence in Texas, the second largest US state by population. The business was established in 1998 and since then has experienced strong growth in sales revenue and EBITDA through intensive management. Date of purchase August 2006 Purchase price US$45 million (A$60.1 million) (excluding an earn out payout) Title Leasehold

Macquarie Leisure Trust Group | Half year update 11 Portfolio summary

d’Albora Marinas

Locations Akuna Bay, NSW Cabarita, NSW Nelson Bay, NSW Pier 35, VIC Rushcutters Bay, NSW The Spit, NSW Victoria Harbour, VIC Market position The marinas are located in some of Australia’s most popular recreational waterways. These locations enjoy strong demand for berthing facilities and benefit from government restriction on waterfront uses, which make entry by new competitors difficult. Date of purchase Various Title Freehold Number of berths Wet 938 Dry 472 Moorings 60 Total 1,470 Depreciated historic cost $70.4 million Directors’ valuation $78.5 million

Distribution timetable

Half year ending 30 Jun 07

Ex-distribution date 25 Jun 07 Record date 29 Jun 07 Approximate distribution payment date 28 Aug 07

The above payment date is approximate and is subject to change.

12 Photo caption Corporate directory

Manager Secretaries Custodian Macquarie Leisure Management Dennis Leong (MLML) Trust Company Limited Limited John Wright (MLML and MLOL) 35 Clarence Street ABN 36 079 630 676 Kara Nicholls (MLML) Sydney NSW 2000 Sharon Palmer (MLOL) Registered office Auditor of the Trust Level 7, No. 1 Martin Place Manager’s office PricewaterhouseCoopers Sydney NSW 2000 Level 15, No. 1 Martin Place Riverside Centre Sydney NSW 2000 123 Eagle Street Directors of Macquarie Leisure Brisbane QLD 4000 Management Limited (MLML) GPO Box 4294 Neil Balnaves (Chairman) Sydney NSW 1164 Security registry George Bennett Link Market Services Limited Anne Keating Telephone Locked Bag A14 Anthony Fehon 1300 365 585 (within Australia) Sydney South NSW 1235 Simon Jones +612 8232 6635 (outside John Wright (Alternate) Australia) Telephone 1300 303 063 (within Australia) Directors of Macquarie Leisure Facsimile +612 8280 7134 (outside Australia) Operations Limited (MLOL) +612 8232 6510 (within Australia) Neil Balnaves (Chairman) +612 8232 6510 (outside Email Anne Keating Australia) [email protected] Bruce Scott Anthony Fehon Email Internet John Wright (Alternate) [email protected] www.linkmarketservices.com.au Chief Executive Officer Internet To arrange changes of address, Greg Shaw www.macquarie.com.au/mle or changes in registration of stapled securities, please contact Chief Financial Officer ASX code the registry at the address or number Richard Johnson MLE listed above.

This document is printed on Monza Satin, a Forest Stewardship Council (FSC) accredited paper stock which is elemental chlorine free (ECF). The FSC is an international not-for-profit organisation that has developed principles and criteria to certify forests and, in turn, forest products such as paper, to ensure that they are made from responsibly managed forests and that the interests of biodiversity, waterways, wildlife and commerce are considered. Monza comprises 55% Recycled pulp and 45% FSC certified virgin fibre. The mill at which Monza is made has ISO 14001 Environmental Accreditation. Macquarie Leisure Trust ARSN 093 193 438 Macquarie Leisure Trust Group (Macquarie Leisure or Group), a stapled security comprising units in Macquarie Leisure Trust (Trust) and shares in Macquarie Leisure Operations Limited ABN 22 104 529 106. Macquarie Leisure Management Limited ABN 36 079 630 676 (Manager, we, our, us) is a wholly owned subsidiary of Macquarie Bank Limited ABN 46 008 583 542 (MBL) and is the responsible entity of the Trust. Investments in the Trust are not deposits with or liabilities of MBL, the Manager or of any Macquarie Bank Group company and are subject to investment risk including possible delays in repayment and loss of income and principal invested. None of MBL, the Manager or any other Macquarie Bank Group company guarantees the performance of the Trust or the repayment of capital from the Trust or any particular rate or return. This report does not contain investment advice nor is it an offer to invest in securities of the Trust. This report has been prepared without taking into account the personal objectives, financial situation or needs of particular individuals. Before acting, we recommend potential investors speak to a financial and/or other professional advisor. Past performance included in this report is not a reliable indication of future performance. Due care and attention have been exercised in the preparation of forecast information. However, forecasts by their very nature are subject to uncertainty and contingencies and actual results may vary from any forecasts provided. The Manager does not receive fees in respect of the general financial product advice it may provide, however, it will receive fees for operating the Trust which, in accordance with the Trust’s Constitution, are calculated by reference to the value of the assets and the performance of the Trust. Entities within the Macquarie Bank Group may also receive fees for managing the assets of, and providing resources to the Trust. To contact us, call 1300 365 585 (local call cost). © Macquarie Group www.macquarie.com.au/mle