Property For Industry Limited Condensed Statement of Comprehensive Income

Unaudited Unaudited Audited 6 months ended 6 months ended Year ended ALL IN $000 Note 30 June 2010 30 June 2009 31 Dec 2009

Revenue Gross rental income 16,392 15,848 31,428 Imputed income on vendor receivables held at amortised cost - - 181 Interest received 7 11 64 Total revenue 16,399 15,859 31,673

Operating Expenses Property operating expenditure 489 590 1,149 Loss on disposal of investment property 68 - 557 Finance cost 4,028 3,984 7,916 Audit Fees 35 35 49 Other Fees paid to auditors - - 16 Directors fees 90 90 180 Management fees - base fee 962 975 1,906 Management fees - incentive fee - - - Other expenditure 377 329 670 Total operating expenses 6,049 6,003 12,443 Operating profit/(loss) before taxation 10,350 9,856 19,230

Non operating income and expenses Unrealised net change in value of investment property 4- (20,917) (28,371) Unrealised fair value loss - vendor finance receivable - - (349) Unrealised revaluations - swaps and other financial instruments (1,795) (482) 1,145 Total non operating income and expenses (1,795) (21,399) (27,575)

Operating profit/(loss) for the period before income tax 8,555 (11,543) (8,345)

Income tax benefit/(expense) Current taxation 10 (1,174) (1,936) (3,689) Deferred taxation 11 (36,411) (2,258) (480) Total income tax benefit/(expense) (37,585) (4,194) (4,169) Total comprehensive income/(loss) for the period after income tax attributable to the owners of the Company (29,030) (15,737) (12,514)

Basic and diluted loss per share 5 (13.50) (7.39) (5.86) Property For Industry Limited Condensed Statement of Changes in Equity

Share Retained ALL IN $000 Note capital earnings Total

Balance at 1 January 2009 162,526 99,969 262,495

Loss for the year - (12,514) (12,514) Total comprehensive income for the year ended 31 December 2009 - (12,514) (12,514) Share issues/dividend reinvestment 9 2,310 - 2,310 Dividends - (15,296) (15,296) 2,310 (15,296) (12,986) Balance at 31 December 2009 164,836 72,159 236,995

Balance at 1 January 2009 162,526 99,969 262,495

Loss for the period - (15,737) (15,737) Total comprehensive income for the period ended 30 June 2009 - (15,737) (15,737) Share issues/dividend reinvestment 9 1,207 - 1,207 Dividends - (8,454) (8,454) 1,207 (8,454) (7,247) Balance at 30 June 2009 163,733 75,778 239,511

Balance at 1 January 2010 164,836 72,159 236,995

Loss for the period - (29,030) (29,030) Total comprehensive income for the period ended 30 June 2010 - (29,030) (29,030) Share issues/dividend reinvestment 9 1,335 - 1,335 Dividends - (8,539) (8,539) 1,335 (8,539) (7,204) Balance at 30 June 2010 166,171 34,590 200,761 Property For Industry Limited Condensed Statement of Financial Position

Unaudited Unaudited Audited As at As at As at ALL IN $000 Note 30 June 2010 30 June 2009 31 Dec 2009

Current assets Cash and cash equivalents - 491 - Vendor finance receivable 12 - 4,360 4,529 Accounts receivable 509 261 285 Prepayments and other current assets 3,248 2,077 2,894 Investment property held for resale 14 5,000 23,675 -

Total current assets 8,757 30,864 7,708

Non current assets Investment property 4, 14 353,808 326,076 363,090 Capital work-in-progress 2,072 255 176

Total non current assets 355,880 326,331 363,266

Total assets 364,637 357,195 370,974

Current liabilities Bank overdraft 602 - 1,076 Accounts payable and accruals 2,093 1,718 2,250 Derivative financial instruments 13 5,944 5,267 3,979 Taxation payable 140 319 976 Goods and services tax 193 109 205

Total current liabilities 8,972 7,413 8,486

Non current liabilities Term 15 115,000 105,000 122,000 Deferred taxation 39,904 5,271 3,493

Total non current liabilities 154,904 110,271 125,493

Owners' equity Share capital 9 166,171 163,733 164,836 Retained earnings 34,590 75,778 72,159

Total equity 200,761 239,511 236,995

Total liabilities and equity 364,637 357,195 370,974 Property For Industry Limited Condensed Cash Flow Statement

Unaudited Unaudited Audited 6 months ended 6 months ended Year ended ALL IN $000 Note 30 June 2010 30 June 2009 31 Dec 2009

Cash flows from operating activities

Cash receipts from customers 16,168 15,814 32,108 Interest received 7 11 64 Cash paid to suppliers (2,503) (3,472) (5,241) Interest on (4,028) (3,984) (7,916) Income tax paid (2,000) (1,990) (3,059) Net goods and services tax (12) 26 122 Net cash from operating activities 5 7,632 6,405 16,078

Cash flows from investing activities

Sale of investment property 4,775 13,440 16,940 Vendor finance received 4,700 - - Purchase and development of investment properties (2,409) (5,466) (31,431) Interest paid which was capitalised on development properties (20) (174) (210) Net cash inflow/(outflow) from investing activities 7,046 7,800 (14,701)

Cash flows from financing activities

Contributions from shareholders 9 1,335 1,207 2,310 Draw down of term loans - - 10,000 Repayment of term loans 15 (7,000) (7,000) - Dividend paid (8,539) (8,454) (15,296) Net cash outflows from financing activities (14,204) (14,247) (2,986)

Net increase/(decrease) in cash, cash equivalents and bank overdrafts 474 (42) (1,609) Cash, cash equivalents and bank overdrafts at start of the period (1,076) 533 533

Cash, cash equivalents and bank overdrafts at end of the period (602) 491 (1,076)

Cash balances in the statement of financial position Cash at bank - 491 - Bank overdraft (602) - (1,076)

Total cash at bank and bank overdrafts (602) 491 (1,076) Property For Industry Limited Notes to the Condensed Financial Statements for the six months ended 30 June 2010 (Unaudited) 1. General Information Reporting Entity The unaudited interim condensed financial statements presented are those of Property For Industry Limited (The Company) and its subsidiaries (the Group). The Company is a limited liability company incorporated in New Zealand and registered under the New Zealand Companies Act 1993. The registered office of the Company is Level 7 PriceWaterhouseCoopers Tower, 113-119 The Terrace, Wellington. The Company is registered on the New Zealand Stock Exchange. The Companies principal activity is property investment and management. The Companies portfolio is managed by AMP Capital Investors (New Zealand) Limited. 2. Basis of Preparation The unaudited condensed interim financial statements have been prepared in accordance with NZ IAS 34 Interim Financial Reporting. The unaudited interim financial statements have been prepared using New Zealand Dollar functional and presentation currency and have been rounded to the nearest thousand dollars ($000). Profit/(loss) for the period after income tax attributable to the shareholders of the Company equates to total Comprehensive Income of the Group as there are no other components of Comprehensive income that are not already recognised in the Profit/(loss). These unaudited condensed interim financial statements should be read in conjunction with the financial statements and related notes in the Company's Annual Report for the year ended 31 December 2009. 3. Accounting policies The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2009, as described in those annual financial statements. 4. Property Valuation The investment properties are carried at Directors valuations at 30 June 2010. At 31 December 2009 investment properties were revalued on the basis of current market valuation made by independent registered public valuers. At 30 June 2009 the company obtained an independent registered valuers estimate of its investment properties.

5. Earnings Per Share The earnings and weighted average number of ordinary shares used in the calculation of basic and diluted earnings per share are as follows : Unaudited Unaudited Audited 6 months ended 6 months ended Year ended ALL IN $000 30 June 2010 30 June 2009 31 Dec 2009

Earnings from continuing operations (29,030) (15,737) (12,514) Weighted average number of ordinary shares for the purposes of basic earnings per share 215,073,528 212,921,129 213,455,574

6. Net tangible assets per share Unaudited Unaudited Audited 6 months ended 6 months ended Year ended ALL IN $000 30 June 2010 30 June 2009 31 Dec 2009

Net tangible assets (Total equity) 200,761 239,511 236,995 Closing shares on issue 215,720,790 213,544,506 214,543,507 Net tangible assets - cents per share 93 112 110

Adjustment for one-off non-cash deferred tax liability has not been applied retrospectively (refer Note 11) Adjusted net tangible assets (Total equity) 236,075 239,511 236,995 Closing shares on issue 215,720,790 213,544,506 214,543,507 Adjusted net tangible assets - cents per share 109 112 110

7. Reconciliation of net profit after taxation with cash inflow (outflow) from operating activities Unaudited Unaudited Audited 6 months ended 6 months ended Year ended ALL IN $000 30 June 2010 30 June 2009 31 Dec 2009

Net profit/(loss) for the period after income tax (29,030) (15,737) (12,514) Add/(less) non-cash items and non-operating items: Unrealised loss/(gain) on investment property - 20,917 28,371 Unrealised loss/(gain) on swaps 1,795 482 (1,145) Imputed Interest Income on Vendor finance receivables held at amortised cost - - (181) (Gain)/loss on disposal of investment property 68 - 557 Deferred taxation 36,411 2,258 480 Add (less) movements in working capital items: (Increase)/decrease in accounts receivable (224) 116 92 Increase/(decrease) in accounts payable (157) (1,249) (717) Increase/(decrease) in tax payable (836) (65) 592 Increase/(decrease) in GST payable (12) 26 122 Other working capital movements (383) (343) 421

Net Cash Inflow from Operating Activities 7,632 6,405 16,078 8. Reconciliation of Distributable Profit The Company's current distribution policy is to distribute 100% of its distributable profit subject to board approval. Distributable profit is net profit after tax before unrealised net change in value of investment properties, unrealised value changes in swaps, gain on disposal of investment property and deferred taxation. Unaudited Unaudited Audited 6 months ended 6 months ended Year ended ALL IN $000 30 June 2010 30 June 2009 31 Dec 2009

Net profit/(loss) for the period attributable to the ordinary equity holders of the Company (29,030) (15,737) (12,514) Unrealised loss/(gain) on investment property and imputed interest - 20,917 28,542 Unrealised loss/(gain) on swaps 1,795 482 (1,145) Gain/(loss) on disposal of investment property 68 - 557 Deferred taxation 36,411 2,258 480 Net operating profit for distribution 9,244 7,920 15,920 9. Equity During the period the Group issued 1,177,283 shares under the Dividend Reinvestment Scheme for a value of $1.334 million (31 December 2009: 2,109,058 shares for $2.310 million, 30 June 2009: 1,110,057 shares for $1.207 million). 10. Taxation Income tax expense is recognised based on estimates made by management, taking into account the effects of temporary and permanent differences on its year end tax position. 11. Deferred taxation The New Zealand Government's budget announcement on 20 May 2010 resulted in a reduction in the corporate and PIE tax rates from 30 to 28 percent and the removal of the ability to depreciate buildings for tax purposes, with effect from 1 January 2011. A one off non-cash adjustment is required under NZIFRS to reflect the fact that the Company will no longer be entitled to claim tax depreciation on its buildings. This adjustment resulted in an increase in deferred tax expense, and a corresponding increase in deferred tax liability in the June 2010 quarter of $35.314 million. This adjustment is not a liability payable to Inland Revenue and has been recorded to comply with NZIFRS requirements. 12. Vendor finance receivable As part of the agreement to sell 11 Dalgety Drive, a mortgage of $4.7 million was registered on 10 June 2009. The mortgage was repaid in full on 30 June 2010. 13. Derivative financial instruments The Group uses derivative financial instruments (interest rate swaps) to economically hedge its exposure to interest rate risks arising from operational, financing and investment activities.

14. Investment properties sold and held for resale The Group sold 4c & d Rothwell Avenue during the period for $4.8 million, before disposal costs. The carrying value at 31 December 2009 was $4.6 million. The Group holds 1 property for sale at 30 June 2010 valued at $5 million (31 December 2009: Nil properties held for sale, 30 June 2009: 6 properties for $23.675 million). 15. Borrowings The Group has drawn down $115 million (31 December 2009: $122 million, 30 June 2009: $105 million) of the available Bank of New Zealand loan facility of $140 million. After taking into account the impact of interest rate swaps, the effective interest rate at 30 June 2010 for the drawn down term loan is 6.66% (31 December 2009: 6.69%, 30 June 2009: 7.45%). Although global market conditions have affected market confidence, the Group remains well positioned in respect of its banking requirements. The Group has sufficient headroom to enable it to conform to covenants on its existing borrowings. The Group has sufficient working capital and undrawn financing facilities to service its operating activities and ongoing investment in its property portfolio. 16. Capital commitments As at 30 June 2010 the Group had $9.38 million capital commitments. (31 December 2009: $0.38 million, 30 June 2009: $Nil). 17. Contingent liabilities There were no contingent liabilities at 30 June 2010, at 31 December 2009 or at 30 June 2009.

18. Operating Segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker has been identified as the Board of Directors that makes strategic decisions. The Group and Company are internally reported as a single operating segment to the chief operating decision-maker. 19. Related Party Transactions The parent company pays a management fee to AMP Capital Investors (New Zealand) Limited which provides all management and administrative services. The fee paid in the 6 months to 30 June 2010 was $0.962 million (31 December 2009: $1.906 million, 30 June 2009: $0.975 million). 20. Events occurring after the reporting period On 2 August 2010, the directors approved the payment of a dividend of 1.55 cents per share to be paid on 26 August 2010. No such liability has been recognised in the statement of financial position at 30 June 2010.