Volatility relating to interest rates and increased bank fees and margins may affect earnings.  The Trust's interest rate hedging will help reduce the impact of increases in interest rates and bank margins and line fees on existing facilities will average around or below 50 basis points for at least the first half of 2008/09.  The Trust should benefit from increases in rental income from market rent reviews scheduled for 21 of the Trust's existing Bunnings Warehouses and annual CPI increases for the balance.

The economic and market conditions impacting on the property sector may generate some buying opportunities for the Trust, as the requirement to manage capital leads some existing owners to sell assets to rationalise their property holds, and capital constraints reduce the number of willing buyers.

We believe that the Trust is well placed to weather current economic and market conditions and take advantage of the opportunities to build on the existing quality portfolio for longer term, sustainable growth.

The growth opportunities for the Trust outlined in last year's outlook section will continue to apply:

• acquire new and established Bunnings Warehouses - we expect that the Trust will see more opportunities to acquire Bunnings Warehouses, both from Bunnings Group Limited and third party owners.
• improve existing Trust properties - further upgrades to existing Bunnings Warehouses are likely and the completion of the Hawthorn Bunnings Warehouse is due during the year.
• grow rental income from existing properties - there are 21 market rent reviews of Bunnings Warehouses scheduled for 2008/09.
• acquire or develop bulky goods outlets - while we expect there will be more opportunities to acquire bulky goods outlets, the primary focus will be on Bunnings Warehouses or bulky goods outlets including Bunnings Warehouses or adjoining the Trust's existing properties.
• consider other properties that meet the Trust's investment criteria - these will be considered where they represent outstanding value.