Strong market position Robust operating earnings, underpinned by high-quality and well-located retail assets Conservative financial policy Ongoing capital-expenditure requirements for development projects Exposure to cyclical discretionary consumer spending The ratings on Australian Prime Property Fund – Retail (APPF Retail), a real estate investment trust (REIT) externally managed by Lend Lease Real Estate Investment (LLREIL), reflect the fund's strong market position, high-quality retail assets, high degree of operating stability, and conservative financial policy. These positive factors more than mitigate any concerns about the fund's ongoing capital-expenditure requirements for development projects and exposure to cyclical discretionary spending. APPF Retail owns a diversified portfolio of 12 super-regional, major-regional, and sub-regional shopping centers in Australia, valued at A$3.0 billion (at March 31, 2008). While
