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Trust announces interim profit increase

Auckland • Tuesday 22 November 2005

ING Property Trust announces interim profit increase of 29% Name of Listed Issuer: ING PROPERTY TRUST

For six months ended: 30 SEPTEMBER 2005 This report has been prepared in a manner that complies with generally accepted accounting practice and gives a true and fair view of the matters to which the report relates.

The financial statements on which this report is based have been subject to an agreed-upon-procedures audit engagement; this does not however represent a full statutory audit.

The comparatives refer to the previous corresponding period.

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE - NZ$000 OPERATING REVENUE: Trading revenue: $24,692 (2004: $14,930) Other revenue: $1,376 (2004: $3,365) Total operating revenue: $26,068 (2004: $18,295) OPERATING SURPLUS BEFORE TAXATION: $17,331 (2004: $14,097)

Taxation on operating result: $3,021 (2004: $3,015) OPERATING SURPLUS AFTER TAX: $14,310 (2004: $11,082) Extraordinary Items: $Nil (2004: $Nil) Unrealised net change in value of investment properties: $Nil (2004: $Nil) NET SURPLUS FOR THE YEAR: $14,310 (2004: $11,082) Net Surplus attributable to minority interests: $Nil (2004: $Nil) NET SURPLUS ATTRIBUTABLE TO MEMBERS: $14,310 (2004: $11,082)

Earnings per share (per IAS 33): Basic: 3.74 cpu Diluted: 3.74 cpu Interim Dividend (gross): 2.4875 cpu Record Date: 25 November 2005 Date Payable: 9 December 2005 Imputation tax credit on latest dividend: 0.2225 cpu ING PROPERTY TRUST Level 27, ASB Bank Building, 135 Albert Street, Auckland. PO Box 7149, Wellesley Street, Auckland 1036, New Zealand. Telephone 64 9 357 1800 Fax 64 9 357 1801 Website: www.ingproperty.co.nz Email: service@ingproperty.co.nz

Listed property trust ING Property Trust (the Trust) has recorded an unaudited after-tax profit of $14.3 million for the six-month period to 30 September 2005. The increase of 29% over the previous six-month period reflects the significant progress made in growing the Trust to achieve the benefits of size, scale and diversity.

As at 30 September 2005, the Trust comprised 96 properties with a total asset value of $809.7 million – an increase of $458.4 million from 31 March 2005. The most significant event during the period under review was the successful completion of the Trust’s takeover of Urbus Properties Limited (Urbus).

The Trust had received acceptances representing over 94% of the ordinary shares of Urbus when the takeover offer closed. This enabled the Trust to compulsorily acquire all outstanding Urbus securities under the Takeovers Code, ensuring a full merger of the Trust and Urbus. The success of the takeover endorsed the view that all unitholders would benefit from the increased size and scale achieved through combining the two already complementary property portfolios. The Trust is now the second-largest listed property vehicle in New Zealand by market capitalisation, and also ranks in the top 25 stocks listed on the NZSX50.

Acquisitions The Trust also continued to acquire single asset properties through on-market and off-market transactions. During the period, 3 properties were acquired for $29.0 million. These acquisitions include:

• A new bulk retail development in Maui Street, Hamilton, for $8.6 million;

• A commercial office property in the Wellington CBD, adjoining another property owned by the Trust, which now provides the opportunity to add another 5,000 sqm of space; and • A bulk retail asset in Wellington, to be part of a project to create a new bulk retail development valued in excess of $20 million.

Portfolio rationalisation

The portfolio rationalisation programme continued with 4 properties unconditionally sold for $24.1 million. The 4 properties were disposed of at an average of 17.8% above book value.

A total of 11 properties are currently on the disposal list, although two of these are subject to unconditional sales contracts. The value of all 11 properties at 30 September 2005 was $42.8 million.

The Board has identified a further 12 properties (with a book value of $36.8 million) that are unlikely to fit the long-term strategy of the Trust. The Board is reviewing the options for these properties.

Portfolio development The major redevelopment of Waitakere Mega Centre is progressing extremely well. Leasing results have been above budget, with the development 94% leased by net lettable area. The Stage 1 and 2 Kmart store and nine retail units are now open and trading, with Stage 3 – comprising 7 retail units adjoining Kmart – due to be completed in December.

Growth options The Board has been investigating future growth options for the Trust. The Trust is looking to acquire strategic land holdings through entering into development partnerships with developers.

These partnerships will provide the Trust with a source of new developments, while minimising the Trust’s exposure to any development and leasing risk.

The Trust will also share in any development profits made. Discussions are ongoing with a number of potential project partners.

To assist the funding of the Trust’s future growth, a placement of units to institutional investors successfully raised $35 million on 18 November. There was very strong demand for the units from both existing institutional unitholders and new institutional investors. The Trust also intends to implement a unit purchase plan of $5,000 per unitholder to allow all of the Trust’s unitholders to participate in the capital raising and growth initiatives.

New leasings Also during the six-month period, 51 new leasings were completed, contributing $7.3 million of annual rental and accounting for 52,863 sqm of space in the portfolio.

Occupancy rates remained at the record level of 99% at both 31 March 2005 and at 30 September 2005. Long-term rental security is provided by a weighted average lease term of 4.9 years. 3/3 In addition to the new leasings, 38 rental reviews were completed over the period, contributing a further $768,000 of annual rental.

This is an average increase of 6.0%. A further $285,000 of rental increases have been achieved from new leases to sitting tenants that incorporated a rental review.

Income distribution On 11 November 2005, the Trust announced it will pay a gross interim dividend of 2.4875 cpu for the September quarter containing imputation credits of 0.2225 cpu. The record date for the dividend is 25 November 2005 and the payment date is 9 December 2005.

ENDS

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