Responsible Entity: Commonwealth Managed Investments Limited ABN 33 084 098 180 AFSL 235384

Registered Address: Ground Floor, Tower 1 Colonial First State Property Retail Pty Limited 201 Sussex Street ABN 19 101 384 294 Sydney NSW 2000 Manager of CFS Retail Property Trust Principal Office of the Manager: Level 7 52 Martin Place GPO Box 3892 Sydney NSW 2001

Telephone: 02 9303 3500 Facsimile: 02 9303 3622

21 February 2012

CFS RETAIL PROPERTY TRUST (CFX)

Half-year results for the six months ended 31 December 2011

Overview CFS Retail Property Trust (CFX or the ‘Trust’) once again delivered a solid result for unitholders, generating a net profit of $201.7 million for the six months to 31 December 2011, driven by a commitment to active asset and capital management.

Angus McNaughton, Managing Director of Property for Colonial First State Global Asset Management (CFSGAM) said: “Despite the headwinds facing the Australian retail property market which are having an impact on retail spending, the CFX team achieved solid growth for the Trust. The quality and scale of a shopping centre portfolio and a manager’s ability to leverage tenant relationships, effectively market the centres and assist retailers in driving sales, are vitally important; and our team is a market leader in this field.”

Michael Gorman, Fund Manager of CFX said: “In the 12 months to 31 December 2011, we saw a positive sales trend for specialty stores and supermarkets, with weakness in department stores and discount department stores. Pleasingly, in the six months to 31 December 2011, we also achieved an average rental increase of 2.7% with standard fixed 5% annual increases for retail specialty stores that were re-leased.”

Key operating highlights for the period included: • Net profit of $201.7 million • Distribution of 6.5 cents per unit, up 3.2% on the 6.3 cents per unit for the previous corresponding period • Net property income increased 11.1% and on a like-for-like1 basis increased 4.1% • Distributable income2 was up 9.5% • Net tangible asset backing (NTA) per unit increased to $2.06 at 31 December 2011 • Total assets increased 2.4% to $8.7 billion at 31 December 2011 • Issued $300 million of new convertible notes (due to expire in July 2016) • The Trust’s gearing3 was 28.1% at 31 December 2011 • Continued work on the $1.2 billion development pipeline • The income stream relating to the earnings of the CFSGAM Property asset management division provided the Trust with $5.3 million in income • An increase in shopping centre retail specialty moving annual turnover (MAT) on a comparable4 basis of 2.9% over the 12 months to 31 December 2011 compared to the previous period, underlining the strength of the CFX portfolio • Average rental increases of 2.7% with standard fixed 5% annual increases for retail specialty stores that were re-leased5, and • Awarded government grants of $0.8 million to contribute to efficiency improvement schemes over four shopping centres

1. Including those assets owned for both six-month periods and excluding the impact of developments. 2. Distributable income is a key financial measure used by management to assess the performance of the Trust. Distributable income equals net profit excluding fair value adjustments from investment properties, associates and derivatives; straight-lining revenue; the movement in fair value of unrealised performance fees; non-cash convertible notes interest expense; adjustments for convertible notes buy-back expense; and adjustments for project and other items. 3. Gearing equals borrowings to total assets. For this calculation, total assets exclude the fair value of derivatives and borrowings is the amount drawn down as per Note 5 of the Interim report, adjusted for the fair value of cross currency swaps. 4. Comparable centres refer to those centres that are not undergoing or have not undergone substantial redevelopment in either period of comparison. 5. Renewals and replacements. Financial results CFX’s net profit for the six months to 31 December 2011 was $201.7 million, compared to a net profit of $346.5 million for the previous corresponding period, with the reduction primarily due to a change in the fair value of derivatives (mark to market of interest rate hedges).

The net profit included a net gain on investment properties and associate revaluations of $112.7 million (compared to a $158.7 million net gain for the previous corresponding period) and a net loss on the fair value of derivatives of $68.3 million (compared to a $26.8 million net gain for the previous corresponding period).

Distributable income was up 9.5% to $184.6 million, compared to $168.6 million for the previous corresponding period.

Underlying the result was an 11.1% increase in net property income to $278.5 million. On a like-for-like basis, net property income increased by 4.1%.

Distribution The Trust will pay a distribution of $184.6 million, compared to $178.0 million for the previous corresponding period. This equates to a distribution of 6.50 cents per unit, which is a 3.2% increase on the 6.30 cents per unit paid in the previous corresponding period. The distribution will be paid on 28 February 2012.

Total assets Total assets at 31 December 2011 were $8.7 billion, increasing 2.4% from $8.5 billion at 30 June 2011, largely driven by positive independent valuations within the portfolio and ongoing expenditure on the development pipeline.

NTA per unit increased from $2.05 at 30 June 2011 to $2.06 at 31 December 2011.

The Trust’s portfolio consists of 29 retail properties located across Australia, with 78% of the portfolio comprising super-regional or regional shopping centres6.

Investment performance For the six months to 31 December 2011, CFX recorded a total return7 of -3.7%, which was above the UBS Retail 200 Accumulation Index (the ‘Index’) return of -5.6%. Over the 12 months to 31 December 2011, the Trust delivered a total return of 2.8%, outperforming the Index return, which was -7.0% over the same period. Over the three, five and 10-year periods, CFX outperformed the Index by 2.8, 11.3 and 7.5 percentage points per annum respectively.

The performance fee, calculated every six months, is capped at 0.15% per annum of the Trust’s gross asset value up to $3.5 billion and capped at 0.10% per annum of the Trust’s gross asset value above $3.5 billion, with any over/underperformance carried forward.

For the six months to 31 December 2011, CFX outperformed the customised retail property accumulation index8 (the ‘benchmark’) by 4.5 percentage points. Accordingly, the Responsible Entity was entitled to a performance fee of $5.3 million for the six months ended 31 December 2011.

Taking into consideration the carry-over of outperformance from 30 June 2011, the carry-forward balance is 56.5 percentage points of outperformance over the benchmark.

Full details of the performance fee are detailed in Note 7 to the Interim report.

6. As defined by the Property Council of Australia. 7. Total return comprises unit price performance and distribution income yield. 8. For the purposes of calculating the performance fee, the benchmark, which is the UBS Retail 200 Accumulation Index, is customised to remove the effect of CFX on the Index. A 20-day volume weighted average price (VWAP) is applied to both the CFX accumulation index and the customised index. 2 Capital management Continued concern over European sovereign debt issues and its impact on global conditions resulted in caution re-entering credit markets and was a driver in the Reserve Bank of Australia’s decision to reduce the official cash rate in November and December.

Mr Gorman said: “In this environment, we continued to focus on our active but disciplined approach to capital management to ensure that the Trust’s balance sheet remains flexible and a competitive cost of capital is maintained, a focus which we consider prudent.”

On 4 July 2011, we successfully raised $300 million in new 5.75% July 2016 convertible notes, which were used to fund the buy-back of $300 million of existing convertible notes maturing in August 2014 (with an investor put option in August 2012). In December 2011, we initiated a buy-back of the outstanding convertible notes expiring in August 2014 and with an investor put option in August 2012. To date, this has resulted in the buy-back of $4.2 million of convertible notes and the outstanding August 2014 notes have a face value of $290.8 million.

During the period, we put in place $300 million of new bank debt facilities to replace the outstanding August 2014 convertible notes in the event that all investors exercise their put option(s) in August 2012. We also refinanced the expiring $125 million and $100 million bank debt facilities that were due to expire in December 2011 and February 2012 respectively. Post the period, we raised $100 million in medium term notes.

As at 31 December 2011, the Trust’s gearing level was 28.1% (up from 27.0% at 30 June 2011), with borrowings of $2,443.4 million. The increase in gearing was largely driven by debt funded capital expenditure on the development pipeline.

During the period, we terminated and replaced a number of interest rate swaps, improving the Trust’s weighted average cost of debt.

At 31 December 2011, the Trust’s weighted average debt maturity was 3.4 years and the weighted average interest rate (including margins and fees) was 6.5%.

In order to provide the Trust with greater certainty of financing costs, the Manager maintains a high level of hedging in the near term. The Trust’s total borrowings were 91% hedged as at 31 December 2011. The weighted average maturity of hedged debt was 3.9 years and the weighted average interest rate on hedged debt9 was 5.9%. Including capital management activities post the period, the Trust had undrawn debt facilities of $601 million.

Flowback/alignment fee The asset management division contributed $5.3 million of distributable income to the Trust for the six months to 31 December 2011. The 29.3% increase from the previous corresponding period was a consequence of the leasing and management of the enlarged portfolio and increased development fee-related income.

Development Mr Gorman said: “Our development team continued to advance CFX’s development pipeline. At the Trust’s largest development, Emporium , significant progress has been made on demolition and excavation, while the leasing program remains on track.”

The Trust’s development pipeline now stands at $1.2 billion, with developments typically targeting an average yield on first year income of 7.0% to 8.0% (excluding Emporium Melbourne).

Projects currently under construction have a development cost of approximately $620 million, with $266 million remaining to be spent.

Developments under construction Emporium Melbourne, Melbourne, Vic Works continued on the $1.12 billion (CFX share $560 million) Emporium Melbourne development project during the period, with being awarded a fixed price contract for the project. In July 2011, our leasing team held a successful marketing showcase for the 240 specialty shops occupying 41,000 sqm of retail space. To date, we have met with over 1,000 retailers, while 400 offers to lease have been issued.

Our leasing program remains on schedule. As well as making good progress on specialty store leasing, we are in final discussions with three international concept store retailers, and advanced discussions with a further seven, for a total of more than 10,000 sqm of space. We are also negotiating with a range of well-known luxury brands and a number of iconic Melbourne food operators. It is clear from our discussions with both domestic and international retailers that we are creating an exciting new retail destination for the Melbourne CBD. The target initial year-one yield is greater than 6% and target internal rate of return is greater than 9%. The project is expected to be complete at the end of 2013.

9. Including convertible notes and fixed-rate medium term notes and excluding margins and fees. 3 Roxburgh Park Shopping Centre, Roxburgh Park, Vic The $60 million redevelopment of Roxburgh Park Shopping Centre received board and council approval during the period, and construction commenced in January 2012. The development will include two new supermarkets, the addition of approximately 40 specialty stores and an upgrade of the existing building. The centre will more than double in size to approximately 25,000 sqm, but will continue to focus on convenience-based retailing, with 700 car spaces added as part of the project. The target initial year-one yield is greater than 8% and the target internal rate of return is greater than 10%.

Future developments Forest Hill Chase Shopping Centre, Forest Hill, VIC The $20 million redevelopment at Forest Hill Chase will involve the addition of an external Aldi supermarket and several specialty tenants. Construction is expected to commence in early 2012.

Brimbank Central Shopping Centre, Deer Park, VIC The $34 million redevelopment of Brimbank Central will involve the introduction of a new large-format Coles supermarket replacing the vacating Kmart tenancy and an expanded and revitalised fresh food precinct. The project will aim to reposition Brimbank as the dominant food and convenience destination in its catchment. Construction is expected to commence in mid-2012.

DFO Homebush, Homebush, NSW The proposed $75 million development will seek to expand and further improve the retail mix, centre access and increase the number of parking spaces. The plan involves a remix of DFO tenancies, the addition of a food court and bulky goods retailers, an expansion and reconfiguration of the car park, as well as an upgrade to the existing building. The 14-month construction program will commence once an amendment to an existing development approval is secured.

Chadstone Shopping Centre, Chadstone, VIC We continue to evolve our plans for a $520 million (CFX share $260 million) redevelopment and expansion of the northern part of the centre. The project will involve redeveloping approximately 60,000 sqm of space and producing an additional 25,000 sqm of retail floor area, adding further international retailers and reinforcing Chadstone’s reputation as Australia’s premier shopping centre destination.

Portfolio update As at 31 December 2011, the Trust’s portfolio comprised 29 retail assets. The Trust’s value of investment properties was $8.6 billion, which increased by 2.3% since 30 June 2011, primarily driven by positive independent asset revaluations.

The CFX shopping centre portfolio maintained 99.7% occupancy at 31 December 2011, reflecting the underlying strength of the Trust’s assets.

Occupancy costs for specialty stores were 17.3% for the total shopping centre portfolio and 17.2% for comparable centres.

Retail sales update The shopping centre portfolio recorded total MAT of $6.9 billion in the 12 months ended 31 December 2011, up 1.0% from the previous corresponding period.

Comparable retail specialty MAT growth for the 12 months to 31 December 2011 was 2.9% compared to 1.2% for the 12 months to 30 September 2011. Total comparable retail specialty MAT was up 1.1% for the year compared to 0.8% reported for the year to 30 September 2011. This reflects the inclusion in the comparable basket of the shopping centres where major redevelopments were completed in November 2009. Retail specialty MAT was underpinned by continued strength in the food and services categories and solid growth in apparel sales. See Appendix 1 for further details.

The DFO centres reported flat MAT growth to 31 December 2011. At the time of acquisition we announced our intention to significantly improve the tenant mix and to increase income from these assets. The MAT performance over this period is largely a consequence of the considerable leasing activity and downtime associated with new tenants fitting out their premises.

Mr Gorman said: “With retail specialty store rent comprising 75% of the Trust’s rental income and turnover rent less than 2%, the long-term sales performance of retail specialty store tenants and their occupancy costs are a continual focus for the Trust’s management.”

4 Asset revaluations In the six months to 31 December 2011, 16 of the Trust’s assets were independently revalued, resulting in a $113.6 million net gain on prior book value. After accounting for the straight-lining of fixed rental increases, a gain of $112.7 million was recorded in the consolidated statement of comprehensive income.

Assets which recorded notable increases over prior book value include Chadstone Shopping Centre (up 4.3% or $69.1 million), The Centre Brisbane (up 2.3% or $16.8 million) and Northland Shopping Centre (up 1.7% or $7.7 million), with increases predominantly driven by income growth.

Transactional evidence continues to increase, providing independent valuers with greater confidence regarding asset values, and reinforcing the view that capitalisation rates for quality assets have stabilised. Taking into consideration the current round of revaluations, the portfolio weighted average capitalisation rate10 remained stable at 6.49% at 31 December 2011 compared to 30 June 2011.

Responsible property investment Mr Gorman said: “The Manager is cognisant of the role the Trust plays in the broader community from an environmental, social and governance perspective, which is consistent with its vision. In light of this, we are on track to have 10 centres rated for NABERS Energy and Water by 30 June 2012 and we will have improvement plans and absolute targets in place for each of these centres.”

Our efforts were acknowledged during the period by four different industry bodies:

Global Real Estate Sustainability Benchmark CFX was recognised as one of the top performing Australian funds in the 2011 Global Real Estate Sustainability Benchmark (GRESB) survey, which was responded to by 340 property funds and companies globally. CFX ranked fourth in the Australian listed funds.

Carbon Disclosure Project In reporting on the Manager’s approach to the risks and opportunities of climate change, CFX was jointly awarded (with Commonwealth Property Office Fund) the highest score of all Australian and New Zealand respondents for disclosure in its 2011 submission to the Carbon Disclosure Project (CDP). The Trust was included in the Carbon Disclosure Leadership Index for the second consecutive year.

Asia Pacific Real Estate Association (APREA) In October, CFX was recognised for its efforts in market-leading governance and disclosure when it was acknowledged for its valuation and portfolio performance reporting, receiving two merit awards in the APREA 2011 best practices awards. The Trust’s submission was also named the best Australian submission.

Australian Federal Government Green Building Fund grants CFX was awarded $0.8 million to contribute to efficiency improvement schemes over four of its centres.

The Manager will continue to manage performance in line with Colonial First State Global Asset Management’s commitment as a signatory to the United Nations Principles of Responsible Investment.

10. Excluding Myer Melbourne, 15 Bowes Street, Woden and the DFO centres. 5 Retail property market and Trust outlook For the Australian retail property market, interest from global retailers continues to increase following the recent successful entry of Zara, Gap and Top Shop into the Australian market.

The performance of Australian retailers varied significantly during the period. Recent evidence suggests that consumers are being increasingly selective with their discretionary expenditure and many are taking advantage of the strong Australian dollar to travel overseas. Those retailers who have continued to invest in their brand or provided market differentiation are being rewarded most. Non-discretionary expenditure remains solid.

Despite the broader market conditions, vacancy rates remain low in quality shopping centres due to: • their convenient offering (with the high quality centres anchored by supermarkets) • their ability to generate strong traffic flows • tightly controlled supply, and • the increased competition for space from international retailers.

Mr Gorman said: “We remain confident of our outlook for the Australian retail property market, with modest retail sales growth and conditions expected to improve. We maintain our expectation for retail sales growth of 3% for the remainder of the 2012 year.”

In a capital constrained environment, we will continue to investigate opportunities to free up capital. Such capital could come from the sale of 100% interests in smaller non-core assets. We would also consider selling 50% interests in fully developed regional or CBD regional shopping centres, where we would still retain the benefit of the leasing leverage and diversification those assets deliver. The alternative uses available for redeployment of the capital will be reviewed at the time of receipt.

Mr Gorman said: “We remain focused on enhancing unitholder returns through the intensive asset management of our Australian shopping centre portfolio, which remains one of the highest quality individual portfolios of shopping centres in this country.”

“We are confident of achieving a distribution of 13.1 cents per unit for the year ending 30 June 201211, which is at the upper end of previous guidance.”

11. Assuming performance fees are payable for the full financial year and there is no unforeseen material deterioration to existing economic conditions.

ENDS For further information please contact:

Michael Gorman Angus McNaughton Fund Manager Managing Director, Property CFS Retail Property Trust Colonial First State Global Asset Management Phone: +612 9303 3448 or +61 410 401 178 Phone: +612 9303 3765 or +61 0427 263 238 Email: [email protected] Email: [email protected]

Investor and media contacts: David Yates Mathew Chandler Head of Investor Relations and Corporate Affairs Investor Relations and Corporate Affairs Manager Colonial First State Global Asset Management Colonial First State Global Asset Management Phone: +612 9303 3516 or +61 418 861 047 Phone: +612 9303 3484 or +61 407 009 687 Email: [email protected] Email: [email protected]

About CFS Retail Property Trust CFS Retail Property Trust (CFX or the ‘Trust’) is a retail sector-specific Australian Real Estate Investment Trust (A-REIT) which invests in high quality retail assets including super-regional, regional, sub-regional and retail outlet shopping centres across Australia. Its stock market trading code is CFX. The Trust comprises 29 retail assets with a total asset value of $8.7 billion and is managed on behalf of more than 18,000 investors from 21 countries.

About Colonial First State Global Asset Management (CFSGAM) CFSGAM is the consolidated asset management arm of Commonwealth Bank of Australia ABN 48 123 123 124 (the ‘Bank’), and sits within the Bank’s Wealth Management division. Entities within CFSGAM provide management services to the Trust. CFSGAM Property is a fully integrated real estate investment business with approximately $18 billion in funds and assets under management, employing more than 850 people across Australia and New Zealand.

6 Appendix 1

12-month comparison tables Retail sales by category for the 12-month rolling period to 31 December 2011 are detailed below:

Comparable12 Actual

MAT MAT 31 Dec MAT 31 Dec MAT 2011 growth 2011 growth Category $m % $m %

13 Department stores 619.0 (6.1) 653.4 (7.8)

Discount department stores 736.0 (1.9) 782.3 (1.9)

Supermarkets 1,482.7 2.1 1,563.2 3.0

Mini majors 708.1 0.2 758.0 1.7

Retail specialty 2,563.5 2.9 2,710.6 2.4

14 Other retail 462.8 3.3 481.9 3.6 13,15 Shopping centre portfolio 6,572.1 1.1 6,949.4 1.0 DFO centres 537.0 0.2 537.0 0.2 13 Total portfolio 7,109.1 1.0 7,486.4 1.0

Retail specialty store sales by category for the 12-month rolling period to 31 December 2011 are detailed below: Shopping centre portfolio Comparable Actual MAT MAT 31 Dec MAT 31 Dec MAT 2011 growth 2011 growth Retail specialty category $m % $m % Food retail 179.7 8.8 189.9 8.4 Food catering 373.9 6.0 396.8 5.9 Apparel 914.8 1.7 962.7 0.9 Jewellery 209.3 (0.3) 221.1 (0.4) Leisure 169.4 (7.4) 181.2 (8.1) General retail16 226.3 0.7 243.7 0.6 Homewares 201.7 4.3 208.0 3.1 Mobile phones 103.7 22.0 111.4 22.8 Retail services 184.7 4.2 195.8 3.5 Total retail specialty 2,563.5 2.9 2,710.6 2.4

12. Comparable centres refer to those centres that are not undergoing or have not undergone substantial redevelopment in either period of comparison. 13. Comparable department stores and total growth variances exclude David Jones Chadstone, which was impacted by the substantial upgrade works undertaken between January and October 2011. 14. Other retail includes cinemas, travel agents, auto accessories, Lotto and other entertainment and non-retail stores. 15. Excluding Myer Melbourne, 15 Bowes Street, Woden and the DFO centres. 16. General retail comprises giftware, pharmacy and cosmetics, pets, discount variety, florists and toys. 7