For personal use only - ASX · INTERIM CONSOLIDATED FINANCIAL REPORT Half Year Ended For personal...

INTERIM CONSOLIDATEDFINANCIAL REPORT

BLACKWALL

Half Year Ended31 December 2016

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Financial Report For The Half-year Ended 31 Dec 20162

CONTENTS

2

FinancialReportDirectors’Report Page3 ConsolidatedStatementofProfitorLossandOtherComprehensiveIncome Page7ConsolidatedStatementofFinancialPosition Page8ConsolidatedStatementofChangesinEquity Page9ConsolidatedStatementofCashFlows Page10NotestotheFinancialStatements Page11Directors’Report‐Continued Page18Auditor’sIndependenceDeclaration Page19Directors’Declaration Page20GroupDetails Page21 IndependentAuditor’sReviewReport Page22Contents–NotestotheFinancialStatements Page24Glossary Page25F

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3Financial Report For The Half-year Ended 31 Dec 2016

DIRECTORS’ REPORT

For the half year to 31 Decem er 201 lac all’s gross revenue grew 33 to 7 million on thecorrespondingperiodin2015 generatinganafter‐ta profitof 1 1million hedirectorshavedeclaredafullyfrankeddividendof1.8centspershareto epaidon7April2017 In late 201 lac all completed a private placement to sophisticated investors raising ust over 4million he company has 59million shares on issue ey highlights across our three complementaryactivitiesare

WOTSOWorkSpaceO SOprovides fle i le usiness accommodationon short‐termarrangements Our offer ranges from

openplanwor spaceleased ythedes andprivateservicedofficestoevent meetingandpro ectspace Ourspacesandagreementsareconfigured insuchawaytoallowsole traders S Esandcorporates toe pandandcontracttheirleasedspacetosuittheirchangingrequirements heaimisthatourservices fitout and terms accommodate our mem ers so they ecome long‐term tenants with short‐termcommitments Our revenue is spread across 1000 mem ers in 12 sites on the Eastern sea oard South Australia asmaniaandSingapore Ourmem erscanchec inandwor fromanyspaceinthenetwor

NT

SA

WA

QLD

NSW

VIC

ACT

TAS

SINGAPORE

50 Yeo St, Neutral Bay55 Pyrmont Bridge Rd, Pyrmont5 George St, North Strath�ield95b Station St, Penrith

194 Varsity Pde, Varsity Lakes30 Chancellor Village Blvd, Sippy Downs84a Brunswick St, Fortitude Valley

490 Northbourne Ave, Dickson14 Wormald St, Symonston

217-219 Flinders St, Adelaide

19 Cecil St, Singapore

AUSTRALIA

SINGAPORE

New South Wales

South Australia

162 Macquarie St, Hobart (Opening March 2017)Tasmania

Queensland

Australian Capital Territory

WOTSO WORKSPACE LOCATIONS1

1

1

2

4

3

WOTSOWorkSpace.

Balance Sheet

WOTSO grows to 12 sites from 6 in December 2015

Acquisition of Adelaide WOTSO building

Acquisition of Brisbane WOTSO building

$13.8 million strategic holding in ASX listed BlackWall Property Trust

Fee income to 31 December 2016 up 18% to $2.8 million

Capital raising in both BlackWall Property Trust and 55 Pyrmont Bridge Road successful

Signi�icant value growth potential in Bakehouse, WOTSO House and Pyrmont

Current annualised sales exceed $6 million ($3.8 million at December 2015)Member numbers have grown to just over 1,000 (500 at December 2015)

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DIRECTORS’ REPORT O SOcommencedoperations in late2014andhasgrownto ecomeasignificantfacetof lac all’s

operations hegraph elowshows O SO’sannualised turnovergrowthandmovingannual turnoverA A isameasurecommonlyusedinretail usinessesandshowsgrossrevenueforthe12months

precedingaparticularmonth As O SOisinsuchasignificantgrowthphaseitisausefulmeasureofourperformance

4

BlackWallPropertyFundsOur property and funds management usiness has een in operation for over 20 years It generatesconsistent fee income fromaportfolioof real estate and the investment structures that control it heinvestmenttrustsarecapitalised ywholesaleandretail investors lac allhasalongtrac recordofsecuringande ecutingpropertyspecialsituations Over the past 12months lac all has e panded its sophisticated investor networ oth directly andthroughintermediaries Oneof lac all’scentralactivitiesisthemanagementoftheAS listed lac allProperty rust AS

R with lac all holding a strategic investment of 1 in R R is a small nim le anddynamicpropertyinvestmentvehicle he rust’stotalreturnphilosophygivesinvestorsthe enefitofanunderlying relia ledistri ution flowwhileactivepositionsdriveN Agrowth he rustholdspassiveincomeproducingassets in its IncomePortfolioand ta esonactivespecial situationsordevelopmentopportunitiesoriginated y lac allintheGrowthPortfolio oredetailon Rcan efoundinthehalfyearlyreport whichwasreleasedtothemar eton23Fe ruary2017

Rownsasevenlevelcommercial uildingintheAC called O SO ouseandalsohasasignificantinvestment in another lac all pro ect 55 Pyrmont ridge Road located in Sydney oth assets areeing repositioned through leasing and internal reconfiguration ith continued leasing success thesepro ectswilladdaround 2millionto R’snetincome andtherefore lac all’sinvestmentrevenue his activity also has the potential to generate additional revenue to lac all through leasing anddevelopment fees Furthermore lac all’s recurring management fees grow with increased rentalincomeandassetvalues

WOTSO TURNOVER

MIL

LION

Jun 15$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

$5.5

$6.0

$6.5

Sep 15 Dec 15 Mar 16 Dec 16 TodayJun 16 Sep 16

Annualised Turnover Moving Annual Turnover (MAT)

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In 201 the lac all group announced that it had received a highly conditional offer to purchase itsmarqueepro ect the a ehouse uarteratNorthStrathfield As recently reported thisproposal isnotproceedingandthe oardhassinceresolvednottopursuesellingthesiteinoneline Assuch lac all’ssignificant involvement in the management and development of the site will continue lac all iswor ingonanum erofdevelopmentideasforthesitewiththepotentialtoraiseadevelopmentfundonsuita leelementsofthepro ect Itisalsoe pectedthat Rwillgrowitse isting 20millionpositioninthesite As an overall o servation lac all is seeing rent inflation in a num er of themar ets inwhich it isactive his is despite general inflation remaining at historically low levels Generally as economicconditions improve the demand for commercial space is growing his demand is amplified in othSydney and the AC mar et where the availa ility of commercial office space has reduced due toproliferation of residential conversion and a num er of government land resumptions to facilitateinfrastructure pro ects O SO or Space he a ehouse uarter 55 Pyrmont ridge Road andO SO ouseall enefitfromthesemar etconditions

OnBalanceSheetProperty AdelaideandBrisbaneInmid 201 lac all purchased two vacant properties to house new O SO sites In each case thepropertycamewithfitoutthatcould eeasilyrepurposedforusein O SO’soperations At ris aneacoffeeshophasrecentlyta enoccupationandistrading O SOmem ershipis uildingwithalmost30mem ersinresidence AtAdelaideaDAhas eengrantedforaretailpremises cafeandfunctionspaceatthe rear of the uilding hese activities are in addition to O SO’s operations and complement thewor spacemodel Leasetermshave eenagreedwitharetaileranddiscussionsareadvancedwithacafeoperator he O SOspaceatthissitehas uilttoover50mem ers Asoccupancy uildsat othsites O SOhasthecapacitytogrowitsoffer yfittingoutfurtherspace othforofficeandcowor ing Fully

occupiedwith a O SO space cafe and retail uses these two uildingshave thepotential to add 1 2millionto lac all’sgrossrevenue elowisaseriesofimagesshowingthetransformationpartsofeachpro ect Once the property operations at each site aremature lac allwill loo to either syndicate the twoassetsintoanoff alancesheetinvestmenttrustormovethemacrossto R’s alancesheet Ofcoursewhen this occurs the margin generated y O SO’s operations a ove mar et rent would stay withO SO

DIRECTORS’ REPORTF

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DIRECTORS’ REPORT ShareBuy Backheshare uy‐ ac schemehas eene tendeduntil arch2018 Noshareshave eenacquiredsince30une201 SubsequentEventsAndSignificantChangesinAffairso the estof theDirectors’ nowledge since theendof the financialperiod therehave eennoothermatters or circumstances e cept for the comments a ove that have materially affected the Group’soperations or may materially affect its operations state of affairs or the results of operations in thecurrentorfuturefinancialyears Directors’Reportcontinuesonpage18 Signedinaccordancewitharesolutionofthe oardofDirectors

StuartBrownDirectorSydney 24Fe ruary2017

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

NoteDecember2016

$’000December2015

$’000 O SO or Spaceincome 2 714 1 409

lac allPropertyFunds Assetmanagementfees 1 112 1 100Propertymanagementfees 994 1 037ransactionfees 719 2

2 825 2 403 TotalOperatingRevenue 5,539 3,812Investment

nrealisedgainonrevaluation 1 3 1 294Investment 4 143

TotalRevenue 6,969 5,249 usinessoperatinge penses 2 3 59 2 590 O SO or Spacerente pense 1 338 501

Depreciation 2 2 95 Financecosts 94 4 Othere penses ‐ 8 ProfitBeforeIncomeTax 1,679 2,051Incometa e pense 583 02 ProfitAfterTax 1,096 1,449 TotalComprehensiveIncome 1,096 1,449 Profit/(Loss)Attributableto: OwnersoftheCompany 1 103 1 449Outsideequityinterests 7 ‐ 1,096 1,449 TotalComprehensiveIncome/(Loss)Attributableto: OwnersoftheCompany 1 103 1 449Outsideequityinterests 7 ‐ 1,096 1,449EarningsPerShare Continuingoperations asicearningspershare 8 2 0cents 2 9centsDilutedearningspershare 8 1 9cents 2 8cents

heaccompanyingnotesformpartoftheseconsolidated inancialstatements

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

NoteDecember2016

$’000June2016

$’000ASSETS CurrentAssets Cashandcashequivalents 871 1 9 5radeandotherreceiva les 2 895 218Otherassets 2 7 ‐Investmentproperties 3 7 520 7 500TotalCurrentAssets 11 553 9 83Non currentAssets Financialassets 4 14 038 12 011Property plantandequipment 2 5 2 1 714TotalNon currentAssets 1 00 13 725TOTALASSETS 28,153 23,408 LIABILITIES CurrentLiabilities radeandotherpaya les 13 574Currentta paya le 45 59Provisions 341 308Otherpaya les 30 183orrowings 5 3 500 3 500TotalCurrentLiabilities 4 805 4 24Non currentLiabilities Deferredta lia ilities 2 03 1 5 Provisions 139 114TotalNon currentLiabilities 2 175 1 80TOTALLIABILITIES 6,980 6,304NETASSETS 21,173 17,104EQUITY

Sharecapital 15 32 11 733Reserves 1 ‐Retainedearnings 5 532 5 371Parent’sEquity 21 180 17 104OutsideEquityInterests 7 ‐TOTALEQUITY 21,173 17,104

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

9

Ordinaryshares$’000

Retainedearnings

$’000

Reserve$’000

AttributabletoOwnersoftheParent

$’000

Outsideequity

interests$’000

Total$’000

Balanceat1July2016 11,733 5,371 17,104 17,104Profitfortheperiod ‐ 1 103 ‐ 1 103 7 1 09 Dividendpaid ‐ 942 ‐ 942 ‐ 942 Issueofshares 3 899 ‐ ‐ 3 899 ‐ 3 899Shareoptions ‐ ‐ 1 1 ‐ 1 Balanceat31December2016 15,632 5,532 16 21,180 (7) 21,173 Balanceat1July2015 11,247 4,191 8 15,446 15,446Profitfortheperiod ‐ 1 449 ‐ 1 449 ‐ 1 449Dividendpaid ‐ 857 ‐ 857 ‐ 857 Balanceat31December2015 11,247 4,783 8 16,038 16,038

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CONSOLIDATED STATEMENT OF CASH FLOWS

10

December2016

$’000

December2015

$’000CashFlowsFromOperatingActivities lac allPropertyFundsfeereceipts 1 843 2 3 7O SO or Spacereceipts 2 979 1 5 8ransactionfeereceipts ‐ 91Investmentincome 4 143Paymentstosuppliersandemployees 4 1 2 3 177 O SOrentpaid 1 338 501

Incometa paid 158 277 an chargesandinterestpaid 94 4 NetCashFlowsFrom/(Usedin)OperatingActivities (866) 210CashFlowsFromInvestingActivities

Returnsofcapitalfrom R 377 450Paymentfor Runits 1 004 ‐Paymentfor O SO or Spacefitout 1 015 381 Paymentforfi edassets 91 9 Loantorelatedparties 50 ‐Proceedsfromredemptionof a ehouse onds ‐ 5 420Netproceedsfrom aldRoc Fundloanrepayment ‐ 430NetCashFlowsFrom/(Usedin)InvestingActivities (1,783) 5,910CashFlowsFromFinancingActivities

Proceedsfromissueofshares 2 20 ‐Dividendpaid 944 854 Paymentforcapitalraisingcosts 121 ‐NetCashFlowsFrom/(Usedin)FinancingActivities 1,555 (854)NetIncrease/(Decrease)inCashHeld

(1,094) 5,266

Cashandcashequivalentsatthe eginningoftheyear 1 9 5 483CashandCashEquivalentsatEndofthePeriod 871 5,749

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NOTES TO THE FINANCIAL STATEMENTS

11

1.SegmentInformationhe segment information for the Group is as follows For information on segment reporting refer toStatementofSignificantAccountingPoliciesformoredetails

Profit&Loss

December2016($’000)

Income Gains TotalRevenue

Expenses EBITDA Pre taxProfit

lac allPropertyFunds 2 77 ‐ 2 77 2 122 54 4 O SO or Space 2 7 3 ‐ 2 7 3 2 471 292 124

Investment 4 1 3 1 430 341 1 089 1 089Consolidated 5,603 1,366 6,969 (4,934) 2,035 1,679

Profit&Loss

December2015($’000)

Income Gains TotalRevenue

Expenses EBITDA Pre taxProfit

lac allPropertyFunds 2 371 ‐ 2 371 1 07 7 4 752O SO or Space 1 441 ‐ 1 441 1 2 1 180 93

Investment 143 1 294 1 437 231 1 20 1 20 Consolidated 3,955 1,294 5,249 (3,099) 2,150 2,051

December2016 June2016

BalanceSheet($’000)Assets

Liabilities

NetAssets

Assets

Liabilities

NetAssets

lac allPropertyFunds 11 351 4 499 852 9 72 4 097 5 29O SO or Space 2 7 3 292 2 471 1 71 488 1 183

Investment 14 039 2 189 11 850 12 011 1 719 10 292Consolidated 28,153 (6,980) 21,173 23,408 (6,304) 17,104

2. Expenses

December2016

$’000December2015

$’000Employee consultants’costs 1 793 1 381O SO or Spaceoperatinge penses 1 133 7 0

Administratione penses 541 449Propertye penses 129 ‐otal usinessoperatinge penses 3 59 2 590

3. CurrentAssets–InvestmentProperties

31December2016

WOTSOBrisbane

$’000

WOTSOAdelaide$’000

Total$’000

alanceatthe eginningofyear 4 500 3 000 7 500Capitalimprovements 33 5 87Revaluations 15 2 17Depreciation 38 48 13 Balanceattheendofperiod 4,510 3,010 7,520 F

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30June2016

WOTSOBrisbane

$’000

WOTSOAdelaide$’000

Total$’000

alanceatthe eginningofyear ‐ ‐ ‐Purchase 4 501 2 959 7 4 0Capitalimprovements ‐ 50 50Revaluations 19 21 40Depreciation 20 30 50 Balanceattheendofyear 4,500 3,000 7,500 Refertothe orrowingsnotefordetailsof orrowingssecuredagainsttheproperties heproperties are classifiedas currentassets Once O SO’soperationsaremorematurea conventionalleaseonmar etrentaltermswill eenteredinto etween O SOandtherespectiveSP switheachrolledintoastandaloneinvestmenttrustorindividuallysyndicated O SO ris aneislocatedat84 runswic St Fortitude alley Ithousesan800sqm O SOaswellasa

recentlyopenedcaf O SOAdelaideislocatedat217‐219FlindersSt Adelaide he O SOnowhasaround50mem ers heuildingalsohousessomeindependentcommercialtenantsandisintheprocessofsecuringacaf

4. Non currentAssets–FinancialAssets

December2016

$’000June2016

$’000(a)Financialassets lac allProperty rust 13 837 11 8 0Pelathon anagementGroup 100 100Loans 101 51Total 14,038 12,011

(b)BlackWallPropertyTrustlac all Property rust is an AS ‐listed real estate investment trust managed y lac all lac allholds10 25million 17 Runits une201 9 4million Runits

5. CurrentLiabilities Borrowings December2016

$’000June2016

$’000NA illfacility 3 500 3 500Total 3,500 3,500he facility is secured against the O SO ris ane and Adelaide properties refer to the InvestmentPropertiesnote he orrowingswillmaturein ay2017andthereforeareclassifiedasacurrentlia ility hese orrowingsaresu ecttoamarginof2 5 p a over S

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6. ShareCapitalandReserves

(a) Summarytable December2016

$’000June2016

$’00059 040 445 une201 52 340 445 Ordinary 15 32 11 733Total 15,632 11,733

(b) Movementinsharesonissue No. No.Atthe eginningofreportingperiod 52 340 445 52 340 445Issueofnewshares 700 000 ‐Atreportingdate 59,040,445 52,340,445

700 000shareswereissuedduringtheperiodat 0centspershare Nofurthershareshave eenissued

since30 une201 Noamountsareunpaidonanyoftheshares Ordinarysharesparticipateindividends Atshareholders’meetings eachordinaryshareisentitledtoonevotewhenapolliscalled otherwiseeachshareholderhasonevoteonashowofhands Allsharesarefullypaid

(c)Reserves December2016

$’000June2016

$’000Shareoptionsreserve 1 ‐Total 16

hefollowingoptionsarecurrentlyonissueatthedateofthisreport

Options Expirydate Exerciseprice NumberStuart rown 30 une2018 0 35 2 000 000Employees 14 uly2019 0 0 2 000 000

7. Dividends

Fullyfran eddividendspaidtomem ersduringtheperiodended31Decem erwereasfollows 2016

$’0002015$’000

201 finaldividendof1 8centspaidinNovem er201 2015 1 7cents 942 857Total 942 857Inaddition the oardhasdeclaredaninterimfullyfran eddividendof1 8centspershareto epaidon7April2017

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8.EarningsPerShare

December2016

December2015

asicEPS 2 0cents 2 9centsDilutedEPS 1 9cents 2 8centsCalculatedasfollows Profitattri uta letotheownersoftheGroup 1 103 000 1 449 000eightedaveragenum erofsharesfor asicEPS 55 981 749 50 395 445eightedaveragenum erofsharesfordilutedEPS 5 931 715 51 213 3 2

9.Contingencies

heGrouphadnocontingentassetsorlia ilitiesat31Decem er201 Decem er2015 nil 10.SubsequentEvents

Otherthanthesu sequenteventsdisclosedintheDirectors’Report tothe estoftheDirectors’ nowledge since the end of the financial period there have een no matters or circumstances that have materiallyaffected the Group’s operations or may materially affect its operations state of affairs or the results ofoperationsinfuturefinancialyears

11.FairValueMeasurementofFinancialInstruments

(a) Fairvaluehierarchy

AASB13FairValueMeasurementrequiresdisclosureoffairvaluemeasurements ylevelofthefollowingfairvaluemeasurementhierarchy Level1‐quotedprices unad usted inactivemar etsforidenticalassets Level2‐ inputsotherthanquotedprices includedwithinLevel1thatareo serva le fortheasset eitherdirectly asprices orindirectly derivedfromprices and

Level3‐inputsfortheassetthatarenot asedono serva lemar etdata uno serva leinputs hefairvalueoffinancialassetstradedinactivemar etsissu sequently asedontheirquotedmar etpricesattheendofthereportingperiodwithoutanydeductionforestimatedfuturesellingcosts hequotedmar etpriceusedforfinancialassetsheld ytheGroupistheclosingpricefromtheAS asatthereportingdate hefollowingta lepresentstheGroup’sfinancialassetsmeasuredatfairvalueasatperiodend RefertotheCriticalAccountingEstimatesand udgmentsnoteforfurtherdetailsofassumptionsusedandhowfairvaluesaremeasured Level1

$’000Level2$’000

Level3$’000

Totalbalance$’000

At31December2016 Financialassets 13 837 ‐ 201 14 038At30June2016 Financialassets 11 8 0 ‐ 151 12 011

(b)ValuationtechniquesusedtoderiveLevel3fairvalues

he fair value of the unlisted securities is determined y reference to the net assets of the underlyingentities AlltheseinstrumentsareincludedinLevel3 F

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(c)Fairvaluemeasurementsusingsignificantobservableinputs(Level3)

he following ta le is a reconciliation of themovements in financial assets classified as Level 3 for thefollowingperiods At31December2016

$’000

alanceatthe eginningofyear 151Purchase 50alanceattheendofperiod 201

At30June2016 alanceatthe eginningofyear 874Purchase 51Sale 774 alanceattheendofyear 151herewerenotransfers etweenLevels1 2and3financialinstrumentsduringtheperiod

12.CriticalAccountingEstimatesandJudgments

he Directors evaluate estimates and udgments incorporated into the financial statements ased onhistorical nowledgeand estavaila lecurrentinformation Estimatesassumeareasona lee pectationoffutureeventsandare asedoncurrenttrendsandeconomicdata o tained othe ternallyandwithintheGroup Keyestimates Impairment

heGroupassessesimpairmentateachreportingdate yevaluatingconditionsspecifictotheGroupthatmayleadtoimpairmentofassets Keyestimates–FinancialassetsAll financial assets at F PLhave een classifiedas financial assets withgainsand losses recognisedasprofitor loss he fairvalueof theunlistedsecurities isdetermined y reference to thenetassetsof theunderlyingentities hefairvalueofthelistedsecuritiesis asedontheclosingpricefromtheAS asatthereportingdate

13.StatementofSignificantAccountingPolicies

lac all Limited is a pu licly listed company incorporated and domiciled in Australia he financialstatementsfortheGroupwereauthorisedforissueinaccordancewitharesolutionoftheDirectorsonthedatetheywereissued StatementofCompliance

he financial statements are generalpurpose financial reports whichhave eenprepared in accordancewith the requirements of the Corporations Act 2001 Australian Accounting Standard AAS 134 InterimFinancialReporting AustralianAccountingInterpretationsandotherauthoritativepronouncementsoftheIFRSIAS34InterimFinancialReporting hefinancialstatementsdonotincludenotesofthetypenormallyincludedinannualfinancialstatements Itisrecommendedthatthefinancialstatements ereadincon unctionwiththeannualfinancialstatementsfortheyearended30 une201 andanypu licannouncementsmade ytheGroupduringthehalf‐yearinF

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1

accordancewiththecontinuousdisclosureo ligationsoftheAS listingrules

BasisofPreparationhefinancialstatementshave eenpreparedonanaccruals asisandare asedonhistoricalcostsmodifiedytherevaluationofselectednon‐currentassets financialassetsandfinanciallia ilitiesforwhichthefairvalue asisofaccountinghas eenapplied henrequired yAccountingStandards comparativefigureshave eenad ustedtoconformtochangesin

presentationforthecurrentfinancialperiod Anychangeofpresentationhas eenmadeinordertoma ethefinancialstatementsmorerelevantandusefultotheuser heGroup isagroupof the ind referred to inASICClassOrder201 191and inaccordancewith thatClassOrder amounts intheDirectors’Reportandthefinancialstatementsareroundedoff tothenearestthousanddollars unlessotherwiseindicated he accounting policies adopted are consistentwith those of the previous financial year ended 30 une201

Goingconcernhe financial statementshave eenpreparedonagoingconcern asis whichcontemplatescontinuityofnormal usinessactivitiesandtherealisationofassetsandsettlementoflia ilitiesintheordinarycourseofusiness SegmentReportingAAS 8requiresoperatingsegmentsto eidentifiedonthe asisofinternalreportsa outcomponentsoftheGroupthatareregularlyreviewed ythechiefoperatingdecisionma erinordertoallocateresourcestothesegmentandtoassessitsperformance heGroup sprimaryformatforsegmentreportingis asedon usiness segments he usiness segments are determined ased on the Group management andinternal reporting structure here is only one geographical segment eing Australasia Segment results assetsandlia ilitiesincludeitemsdirectlyattri uta letoasegmentaswellasthosethatcan eallocatedon a reasona le asis he operating usinesses areorganisedandmanaged separately according to thenatureoftheproductsandservicesprovided witheachsegmentrepresentingastrategic usinessunitthatoffersdifferentproductsandservesdifferentmar ets he Group has adopted three reporting segments lac all Property Funds O SO or Space andInvestment he lac all Property Funds segment engages in funds and asset management as well as propertyservices that includepropertymanagement leasingandgeneralpropertyconsultancy Incomeearned ythe lac all Property Funds segment includes recurring income from fund and asset managementmandates and transaction‐ ased income typically related to those mandates anagement treats theseoperations as one fee earning operating segment he O SO or Space segment represents theserviced office and cowor ing space usiness and generates recurring licence and services fees yproviding short‐term office accommodation shared wor space and meeting and event venues heInvestmentsegmentincludesinterestsinpropertyrelatedinvestmentssuchasunitsinrelatedpartylistedandunlistedunittrusts loansandcash Itgeneratesincomefromdividends distri utionsandinterest

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NewAccountingStandardsandInterpretationsCertainnewaccountingstandardsandinterpretationshave eenpu lishedthatarenotmandatoryforthecurrentreportingperiod heGroup’sassessmentoftheimpactofthesenewstandardsandinterpretationsissetout elow

AASB9FinancialInstruments(effectiveforannualreportingperiodsbeginningonorafter1January2018)heGrouphasearlyadoptedtheAAS 9on1 anuary2013e ceptforthenewhedgingruleswhichwillnothaveanymaterialeffectstotheGroup’sfinancialstatements AASB15RevenuefromContractswithCustomers(effectiveforannualreportingperiodsbeginningonorafter1January2018)

henewstandard is asedontheprinciple thatrevenue isrecognisedwhencontrolofagoodorservicetransferstoacustomer heGroupiscurrentlyassessingtheeffectsofapplyingthenewstandardonthefinancialstatementsandhasnotidentifiedanymaterialchanges AASB16Leases(effectiveforannualreportingperiodsbeginningonorafter1January2019)

henewstandardintroducesasinglelesseeaccountingmodelandrequiresalesseetorecogniseassetsandlia ilitiesforallleaseswithatermofmorethan12months unlesstheunderlyingassetisoflowvalue hestandard also requires enhanced disclosure to e provided y lessors that will improve informationdiscloseda outalessor’sris e posure particularlytoresidualris iththeGroup’scontinuede pansion management is currently assessing the impact of applying the new standard on the Group’s accounts

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DIRECTORS’ REPORT - Continued

18

OfficeholdershenamesoftheOfficeholdersduringorsincetheendoftheperiodaresetout elow Richard ill Non‐E ecutiveDirectorandIndependentChairman oseph Seph Glew Non‐E ecutiveDirector Ro in edder Non‐E ecutiveDirector Stuart rown E ecutiveDirectorandChiefE ecutiveOfficer im rown CompanySecretaryfrom23Septem er201 CarolineRaw CompanySecretaryuntil23Septem er201 AuditorAcopyoftheauditor’sindependencedeclarationasrequiredunderSection307CoftheCorporationsAct2001issetoutinthesefinancialstatements ES continuesinofficeinaccordancewithsection327oftheCorporationsAct2001 RoundingofAmountsheGroupisagroupofthe indreferredtoinASICClassOrder201 191 andinaccordancewiththatClassOrder amountsintheDirectors’Reportandthefinancialstatementsareroundedofftothenearestthousanddollars unlessotherwiseindicated Signedinaccordancewitharesolutionofthe oardofDirectors


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DIRECTORS’ DECLARATION

20

Directors’DeclarationIntheDirectors’opinion a thefinancialstatementsandnotesareinaccordancewiththeCorporationsAct2001 including

i complying with Accounting Standards AAS 134 Interim Financial Reporting the CorporationsRegulations2001andothermandatoryprofessionalreportingrequirements and

ii giving a true and fair view of the Group’s financial position as at 31 Decem er 201 and of itsperformanceforthefinancialperiodendedonthatdate and

therearereasona legroundsto elievethattheGroupwill ea letopayitsde tsasandwhenthey ecomedueandpaya le

heStatementofSignificantAccountingPoliciesconfirmsthatthefinancialstatementsalsocomplywithInternationalFinancialReportingStandardsasissued ytheInternationalAccountingStandards oard hisdeclarationismadeinaccordancewitharesolutionofthe oardofDirectors


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GROUP DETAILS

heGroup’sdetailsareasfollows Registeredofficeandprincipalplaceofusiness

Level1 50 eoStreetNeutral ayNS 2089

elephone 1290338 11

Fa 1290338 00

e sites www lac wall com auwwwwotsowor space com au

Registry ComputershareInvestorServicesPtyLimitedGPO o 2975el ourne IC3001

www computershare com auelephone 1394154000

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CONTENTS - Notes to the Financial Statements

24

1 SegmentInformation Page112 E penses Page113 InvestmentProperties Page114 FinancialAssets Page125 orrowings Page12ShareCapitalandReserves Page13

7 Dividends Page138 EarningPerShare Page149 Contingencies Page1410 Su sequentEvents Page1411 Fair alue easurementofFinancialInstruments Page1412 CriticalAccountingEstimatesand udgments Page1513 StatementofSignificantAccountingPolicies Page15

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GLOSSARY

24

25

AS AustralianSecuritiesE changelac all F Company lac allLimitedR lac allProperty rust

Consolidatedfinancialreport FinancialstatementsEPS EarningspershareFinancialassets FinancialassetsatF PLF PL FairvaluethroughprofitandlossGroup lac allLimited su sidiariesIFRS InternationalFinancialReportingStandardsN A Nettangi leassetsp a PerannumSP Specialpurposevehiclessqm SquaremetreO SOAdelaide 217FlindersStreet Adelaide SouthAustraliaO SO ris ane 84 runswic Street Fortitude alley ueensland

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ABN 37 146 935 131

Level 1, 50 Yeo Street, Neutral Bay NSW 2089PO Box 612, Neutral Bay NSW 2089

Phone: (02) 9033 8611Fax: (02) 9033 8600

Web: www.blackwall.com.au

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