DB RREEF

Managed in partnership with Deutsche Bank $\boxtimes$

DB RREEF Funds Management Limited ABN 24 060 920 783 Australian Financial Services Licence Holder

Level 9 343 George Street Sydney NSW 2000

PO Box R1822 Royal Exchange NSW 1225

Telephone 61 2 9017 1100 Direct 61 2 9017 1136 Facsimile 61 2 9017 1132

Email: [email protected]

26 September 2006

The Manager Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000

Dear Sir / Madam

DB RREEF Trust (ASX: DRT) - Combined Financials 2006

DB RREEF Funds Management Limited, as responsible entity for DB RREEF Trust (DRT), confirms the lodgement of the following documents with the Australian Stock Exchange today:

DB RREEF Trust Combined Financials 2006 $\bullet$

For further information, please contact

• DRT Fund Manager:	Tony Dixon	$(02)$ 9017 1136
• Investor Relations:	Karol O'Reilly	$(03)$ 8611 2930

Yours sincerely

Tanya Cox Company Secretary

yana yaan, yaan, yaran yaray yaran yaraa yaraa magam
Yaraal yaraf yaraf yara yara yaraa magamu yihaya yaraaliya
Caasim^a kaasim^a yaraf yaraan kamaa k combined financial statements 2006

Managed in partnership with Deutsche Bank $[\mathbb{Z}]$

financial

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Tanàna amin'ny faritr'i Normandiese ny taona 2008–201 w. W.

FRONT COVER: Governor Phillip Tower and Governor Macquarie Tower Office Complex, I Farrer Place, Sydney NSW (Photo provided by Hamilton Lund of Visual Eyes International)

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directors' report

DR RREEF INDUSTRIAL TRUST

The Directors of DB RREEF Funds Management Limited (DRFM) as Responsible Entity of DB RREEF Industrial Trust (DIT or the Trust) and its consolidated entities present their Directors' Report together with the consolidated Financial Statements for the year ended 30 June 2006.

The Trust together with DB RREEF Diversified Trust, DB RREEF Office Trust and DB RREEF Operations Trust form the DB RREEF Trust (DRT) stapled security.

1. directors and secretaries

1.1 directors

The following persons were Directors or Alternate Directors of DRFM at any time during the year, and to the date of this Directors' Report:

Directors	Appointed	Resigned
Christopher T Beare	4 August 2004
Elizabeth A Alexander AM	1 January 2005
Barry R Brownjohn	1 January 2005
Stewart F. Ewen OAM	4 August 2004
Victor P Roog Antink	1 October 2004
Charles B Leitner III	10 March 2005
Brian E Scullin	1 January 2005
Alternate Director for Charles B Leitner III
Shaun A Mays	10 March 2005	30 January 2006
Andrew J Fay	30 January 2006

Particulars of the qualifications, experience and special responsibilities of current Directors and Alternate Directors at the date of this Directors' Report are set out in the Directors section of the DB RREEF Trust Annual Report and form part of this Directors' Report.

Particulars of the qualifications, experience and special responsibilities of the Atternate Director who resigned during the period are as follows:

Shaun A Mays BSc (Hons), MSc, MBA (Alternate Director to Chartes B Leitner III)

Shaun Mays was appointed the Global Head of RREEF infrastructure investments in May 2005 and is now based in New York. Prior to this appointment Shaun joined Deutsche Asset Management (Australia) Eimited as Australian Chief Executive Officer. Previously Shaun was Managing Director of Westpac Financial Services. He was also Chief Investment Officer of Commonwealth Financial Services and Managing Director and Chief Investment Officer of Mercury Asset Management. He has more than 19 years' experience in the funds management industry, in both executive management and investment positions, gained in Australia, the United Kingdom and the USA. In addition to his traditional asset management expertise. Shaun has experience in the property and private equity sectors. Shaun was Deutsche Bank's nominated Alternate Director for Charles Leitner until January 2006.

1.2 company secretaries

The names and details of the Company Secretaries of DRFM as at 30 June 2006 are as follows:

Tanya L Cox MBA MAICD (Company Secretary)

Appointed: 1 October 2004

Tanya Cox joined DB Real Estate in 3dly 2003 as Chief Operating Officer, responsible for the overall operational efficiency of the real estate business in Australia. Tanya has held various general management positions over the past 15 years, including Director and Chief Operating Officer of NM Rothschild & Sons (Australia) Ltd and General Manager -- Finance, Operations and IT of Bank of New Zealand (Australia). Tanya is Chief Operating Officer and Company Secretary of DRFM and DB RREEF Holdings Pty Limited and is a member of the Board Risk and Compliance Committee.

John C Easy B Comm LLB (Company Secretary)

Appointed: 1 3uly 2005

John Easy joined Deutsche Asset Management as a senior lawyer in 1997 and has been involved in the listing of Deutsche Office Trust and a number of major acquisition, disposal and leasing transactions for the group. John has responsibility for legal issues affecting the property portfolio. 3chn was formerly a senior associate with law firms Altens Arthur Robinson and Gilbert & Tobin. John is currently undertaking the Graduate Diploma in Applied Corporate Governance with Chartered Secretaries Australia. John is General Counsel and Company Secretary for DRFM and DB RREEF Holdings Pty Limited and is a member of the Board Risk and Compliance Committee.

directors' report (continued)

DR RREEF INDUSTRIAL TRUST

2. attendance of directors at board meetings and board committee meetings

The number of Directors' meetings held during the year and each Director's attendance at those meetings is set out in the table below.

During the year the Directors met formally five times to consider general business and 11 times to consider specific business. The Directors also met on one additional occasion to consider strategy in conjunction with senior management.

Board meetings	Main meetings held ^:	Main meetings attended	Special meetings held	Special meetings attended ¹
Directors
Christopher T Beare
Elizabeth A Alexander AM
Barry R Brownjohn
Stewart F Ewen OAM				ю
Victor P Hoog Antiak
Charles B Feitner BP
Brian E Scullin				ìО

3 While a Director or Afternate Director.

2 Based in New York, OSA

Special meetings are held at a time to enable the maximum number of Directors to attend and are generally held to consider specific items that cannot be held over to the next scheduled main meeting.

The number of Board Committee meetings held during the year and each Director's attendance at those meetings is set out in the table below.

	Board Audit Committee		Board Risk and Compliance Committee		Board Nomination and Remuneration Committee		Board Treasury Policy Committee
	Meetings held ³	meetings attended ¹	meetings heid!	meetings attended	meetings heid ¹	meetings attended ¹	meetings held ⁱ	meetings attended ¹
Directors
Christopher T Beare					5	a		2
Elizabeth A Alexander AM	9	Q
Barry R Brownjohn	G	Q						↷
Stewart E Ewen OAM®		4			5
Victor P Hoog Antisk								2
Charles B Feitner III
Brian F Scultin?	5	4	4	4	5	5	1111	1.111

3 While a member.

2 Stewart F Ewen resigned from the Board Audit Committee and Brian E Sculin was appointed to the Board Audit Committee effective 1 October 2005.

3. directors' interests

3.1 interest in DB RREEF Trust's securities

As at the date of this Directors' Report, the interests of each Director in the securities of DB RREEF Trust are:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Name	Held personally	Held indirectly
Christopher T Beare	Nil	Na
Elizabeth A Alexander AM	Nil	陱
Barry R Brownjohn	Nil	Νł
Stewart F Ewen GAM	Nä	鬧
Andrew J Fay (alternate to Charles B Leitner III).	N#	Nil
Victor P Hoog Antiak	圈	Na
Charles B Leitner III	圈	Νi
-Brian E Scullin	国	Nii

As at the date of this Directors' Report no Director or Alternate Director or any officer of DRFM held options over, or any other contractual interest in, securities in DB RREEF Trust.

3.2 other interests

At the date of this report no Director or Alternate Director held an interest in any other fund managed by DRFM or any other entity that forms part of DB RREEF Trust.

4. directors' directorships in other listed entities

The following table sets out directorships of other listed entities, not including DRFM, held by the Directors at any time in the three years immediately prior to the end of the year and the period for which each directorship was held:

Director	Company	Date appointed	Date resigned
Elizabeth A Alexander AM	CSL Limited	3uly 1991.
	Boral Limited	September 1991
	AMCOR Limited	April 1994	October 2005
Brian E Scullin	Deutsche Asset Management
	(Australia) Limited ^®	20 December 1999
	IYS Instalment Receipt Limited®	-24 October 2000
Alternate Director
Andrew J Fay (alternate to Charles B Leitner III).	Deutsche Asset Management
	(Australia) Limited ²	4 May 2005
	IYS Instalment Receipt Limited ³	4 May 2005

1 IYS Instalment Receipt Limited has issued ASX listed instalment receipts over units in the Deutsche Refail Infrastructure Trust, a managed investment scheme that is listed but not quoted on ASX and whose Responsible Entity is Deutsche Assel Management (Australia) Limited.

5. principle activities

During the year the principle activity of the Trust was investments in an industrial portfolio of real estate assets within Australia and the United States. There were no significant charges in the nature of the Trust's activities during the year.

6 total value of trust assets

The total value of the assets of the Trust as at 30 June 2006 was \$1.580.1 million (2005; \$1.297.6 million). Details of the basis of this valuation are outlined in note 1 of the Notes to the Financial Statements and form part of this Directors' Report.

7, review and results of operations

A review of the results, financial position, operations including business strategies and the expected results of operations of the Trust, is set out in the Chief Executive Officer's Report in the DB RREEF Annual Report.

8. likely developments and expected results of operations

In the opinion of the Directors, disclosure of any information regarding business strategies and the future developments or results of the Trust, other than the information already outlined in this Directors' Report or the Financial Statements accompanying this Directors' Report, would be unreasonably prejudicial to the Trust.

9. significant changes in the state of affairs

The Directors of the Responsible Entity are not aware of any matter or circumstance, not otherwise dealt with in this Directors' Report or the Financial Statements, which has significantly or may significantly affect the operations of the Trust, the results of those operations. or the state of the Trust's affairs in future financial years.

10. matters subsequent to the end of the financial vear

Since the end of the year the Directors of the Responsible Entity are not aware of any matter or circumstance not otherwise dealt with in this Directors' Report or the Financial Statements that has significantly or may significantly affect the operations of the Trust, the results of those operations, or the state of the Trust's affairs in future financial years.

11. distributions

Distributions paid or payable by the Trust for the year ended 30 June 2006 are outlined in note 32 of the Notes to the Financial Statements and form part of this Directors' Report.

12. responsible entity fees and associate interests

Details of fees paid or payable by the Trust to the Responsible Entity for the year ended 30 June 2006 are outlined in note 36 of the Notes to the Financial Statements and form part of this Directors' Report.

The number of interests in the Trust held by the Responsible Entity or its associates as at the end of the financial year are disclosed in note 36 of the Notes to the Financial Statements and form part of this Directors' Report.

13. interests in the trust

The movement in securities on issue in the Trust during the year and the number of securities on issue as at 30 June 2006 are detailed in note 29 of the Notes to the Financial Statements and form part of this Directors' Report.

The Trust did not have any options on issue as at 30 June 2006 (2005: nil).

directors' report (continued)

DR RREEF INDUSTRIAL TRUST

14. environmental regulation

The Directors of the Responsible Entity are satisfied that adequate systems are in place for the management of its environmental responsibilities and compliance with its various licence requirements and regulations. Further, the Directors are not awareof any breaches of these requirements and to the best of their knowledge all activities have been undertaken in compliance. with environmental requirements.

15. indemnification and insurance

The insurance premium for a policy of insurance indemnifying Directors, officers and others (as defined in the relevant policy of insurance) is paid by the Responsible Entity. The Auditor is in no way indermatiled out of the assets of the Trust.

16. audit

16.1 anditor

PricewaterhouseCoopers (PwC or the Auditor) continues in office in accordance with section 327 of the Corporations Act 2001.

16.2 non-audit services

Details of the amounts paid to the Auditor, which include amounts paid for non-audit services are set out in note 8 of the Notes to the Financial Statements. The Board Audit Committee is satisfied that the provision of non-audit services provided during the year by the Auditor (or by another person or firm on the Auditor's behalf) is compatible with the general standard of independence for auditors. imposed by the Corporations Act 2001. The reasons for the Directors being satisfied are:

Board Audit Committee has determined that the Auditor 9Ė will not provide services that have the potential to impair the independence of its audit role, including:
participating in activities that are normally undertaken by management: and
being remunerated on a "success fee" basis;
Board Audit Committee has determined that the Auditor will n. not provide services where the Auditor may be required to review or audit its own work, including:
the preparation of accounting records:
the design and implementation of information technology systems;
conducting valuation, actuarial or legal services:
promoting, dealing in or underwriting securities; or providing internal audit services;
Board Audit Committee regularly reviews the performance and $\mathcal{B}\mathcal{S}$ independence of the Auditor and whether the independence of this function has been maintained having regard to the provision of non-audit services;
the Auditor has provided a written declaration to the Board $\mathscr{U}$ regarding its independence at each reporting period; and
Board Audit Committee approval is required before the n. engagement of the Auditor to perform any non-audit service. for a fee in excess of \$100,000.

The above Directors' statements are in accordance with the advice received from the Board Audit Committee.

16.3 audit independence declaration

A copy of the Auditor's Independence Declaration as required under section 3070 of the Corporations Act 2001 is set out in the Financial Statements and forms part of this Directors' Report.

17. corporate governance

The Responsible Entity's Corporate Governance Statement is set out in a separate section of the DB RREEF Trust Annual Report.

18. combined financial statements

The Trast has applied Class Order 06/441 issued by the Australian Securities & Investments Commission which allows the financial statements of different registered schemes with a common responsible entity to be presented in adjacent columns in a single financial report.

19, rounding of amounts and currency

The Trust is a registered scheme of a kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the "rounding off" of amounts in this Directors' Recort and the Enancial Statements. Amounts in this Directors' Report and the Financial Statements have been rounded. off in accordance with that Class Order to the nearest thousand dellars, unless otherwise indicated. All figures in this Directors' Report and the Financial Statements, except where otherwise stated, are expressed in Australian dollars.

20. management representation

The Chief Executive Officer and the Chief Financial Officer have reviewed the Trust's financial reporting processes, policies and procedures together with its risk management and internal control. and compliance policies and procedures. Following that review it is their opinion that the Trust's financial records for the financial year have been properly maintained in accordance with the Corporations Act 2001 and the Financial Statements and their notes comply with the accounting standards and give a true and fair view.

21. directors' authorisation

This Directors' Report is made in accordance with a resolution of the Directors.

Chix Sem

Christopher T Beare Choir

22 August 2006

Victor P Hoog Antink Chief Executive Officer 22 August 2006

directors' report DR RREEF OFFICE TRUST

The Directors of DB RREEF Funds Management Limited (DRFM) as Responsible Entity of DB RREEF Office Trust (DOT or the Trust) and its consolidated entities present their Directors' Report together with the consolidated Financial Statements for the year ended 30 June 2006.

The Trust together with DB RREEF Diversified Trust, DB RREEF Industrial Trust and DB RREEF Operations Trust form the DB RREEF Trust (DRT) stapled security.

1. directors and secretaries

1.1 directors

The following persons were Directors or Alternate Directors of DRFM at any time daring the year, and to the date of this Directors' Report:

Directors	Appointed	Resigned
Christopher T Beare	4 August 2004
Elizabeth A Alexander AM	3 January 2005
Barry R Brownjohn	3 January 2005
Stewart F. Ewen OAM	4 August 2004
Victor P Roog Antink	1 October 2004
Charles B Leitner (II)	10 March 2005
Brian E Scullin	3 January 2005.
Alternate Director for Charles B Leitner III
Shaun A Mays	30 March 2005.	30 January 2006
Andrew J Fay	30 January 2006

Particulars of the qualifications, experience and special responsibilities of the Atternate Director who resigned during the period are as follows:

Shaun A Mays BSc (Hons), MSc, MBA (Alternate Director to Chartes B Leitner III)

1.2 company secretaries

The names and details of the Company Secretaries of DRFM as at 30 June 2006 are as follows:

Tanya L Cox MBA MAICD (Company Secretary)

Appointed: 1 October 2004

Tanya Cox joined DB Real Estate in 3pky 2003 as Chief Operating Officer, responsible for the overall operational efficiency of the real estate business in Australia. Tanya has held various general management positions over the past 15 years, including Director and Chief Operating Officer of NM Rothschild & Sons (Australia) Ltd and General Manager -- Finance, Operations and IT of Bank of New Zealand (Australia). Tanya is Chief Operating Officer and Company Secretary of DRFM and DB RREEF Holdings Pty Limited and is a member of the Board Risk and Compliance Committee.

John C Easy B Comm LLB (Company Secretary)

Appointed: 1 3uly 2005

John Easy joined Deutsche Asset Management as a senior lawyer in 1997 and has been involved in the listing of Deutsche Office Trust and a number of major acquisition, disposal and leasing transactions for the group. John has responsibility for legal issues affecting the property portfolio. John was formerly a senior associate with law firms Allens Arthur Robinson and Gilbert & Tobin. John is currently undertaking the Graduate Diploma in Applied Corporate Governance with Chartered Secretaries Australia, John is General Counsel and Company Secretary for DRFM and DB RREEF Holdings Pty Eimited and is a member of the Board Risk and Compliance Committee.

directors' report (continued)

DR RREEF OFFICE TRUST

2. attendance of directors at board meetings and board committee meetings

The number of Directors' meetings held during the year and each Director's attendance at those meetings is set out in the table below.

Board meetings	Main meetings held ³	Main meetings attended	Special meetings held	Special meetings heiviert ¹
Directors
Christopher T Beare
Elizabeth A Alexander AM
Barry R Brownjohn
Stewart F Ewen OAM				١O
Victor P Hoog Antiak
Charles B Feitner BP
Brian E Scullin				Ю

3 While a Director or Afternate Director.

2 Based in New York, OSA

Special meetings are held at a time to enable the maximum number of Directors to attend and are generally held to consider specific items that cannot be held over to the next scheduled main meeting.

The number of Board Committee meetings held during the year and each Director's attendance at those meetings is set out in the table below.

	Board Audit Committee			Board Risk and Board Nomination and Remuneration Committee Compliance Committee			Board Treasury Policy Committee
	Meetings held ^:	Meetings attended	Meetings heid ^:	Meetings attended	Meetings heid	Meetings attended	Meetings held	Meetings attended ¹
Directors
Christopher T Beare						in,		C)
Flizzheth A Alexander AM	Q	9
Barry R Brownjohn	ιj	Q
Stewart E Ewen OAM®					G
Victor P Hoog Antiak								Ω
Charles B Feitner III
Brian F Scultin?	h.	4	Δ	4	5	h.

3 While a member.

2 Stewart F Ewen resigned from the Board Audit Committee and Brian E Sculin was appointed to the Board Audit Committee effective 1 October 2005.

3. directors' interests

3.1 interest in DB RREEF Trust's securities

As at the date of this Directors' Report, the interests of each Director in the securities of DB RREEF Trust are:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Name	Held personally	Held indirectly
Christopher T Beare	Ni	Ni
Elizabeth A Alexander AM	Ni	Ni
Barry R Brownjohn	Ni	Νi
Stewart F Ewen OAM	Ni	Νi
Andrew 3 Fay (alternate to Charles B Leitner III)	Ni	Ni
Victor P Hoog Antiak	Na	Ni
Charles B Leitner III	Na	Ni
-Brian E-Scullin	Nt	Ni

As at the date of this Directors' Report no Director or Alternate Director or any officer of DRFM held options over, or any other contractual interest in, securities in DB RREEF Trust.

3.2 other interests

At the date of this report no Director or Alternate Director held an interest in any other fund managed by DRFM or any other entity that forms part of DB RREEF Trust.

4. directors' directorships in other listed entities

Director	Company	Date appointed	Date resigned
Elizabeth A Alexander AM	CSL Limited	talv 1991
	Boral Limited	September 1991
	AMCOR Limited	April 1994	October 2005
Brian E Scullin	Deutsche Asset Management
	(Australia) Limited ³	-20 December 1999.
	IYS Instalment Receipt Limited ^®	-24 October 2000
Alternate Director
Andrew J Fay (alternate to Charles B Leitner III).	Deutsche Asset Management
	(Australia) Limited ³	4 May 2005
	IYS Instalment Receipt Limited ³	4 May 2005

IYS Instalment Receipt Limited has issued ASX listed instalment receipts over units in the Deutsche Relail Infrastructure Trust, a managed investment scheme that is listed but not quoted on ASX and whose Responsible Entity is Deutsche Assel Management (Australia) Eimited.

5. principle activities

During the year the principle activity of the Trust was investments in a commercial portfolio of real estate assets within Australia and New Zealand. There were no significant changes in the nature of the Trust's activities during the year.

6 intai value of trust assets

The total value of the assets of the Trust as at 30 June 2006 was \$3,110.2 million (2005; \$2,716.1 million). Details of the basis of this valuation are outlined in note 1 of the Notes to the Financial Statements and form part of this Directors' Report.

7, review and results of operations

8. likely developments and expected results of operations

9. significant changes in the state of affairs

10. matters subsequent to the end of the financial vear

11. distributions

Distributions paid or payable by the Trust for the year ended 30 June 2006 are outlined in note 32 of the Notes to the Financial Statements and form part of this Directors' Report.

12. responsible entity fees and associate interests

13. interests in the trust

The Trust did not have any options on issue as at 30 June 2006 (2005: nil).

directors' report (continued)

DR RREEF OFFICE TRUST

14. environmental regulation

15. indemnification and insurance

16. audit

16.1 anditor

PricewaterhouseCoopers (PwC or the Auditor) continues in office in accordance with section 327 of the Corporations Act 2001.

16.2 non-audit services

Board Audit Committee has determined that the Auditor will 9£ not provide services that have the potential to impair the independence of its audit role, including:
participating in activities that are normally undertaken by management: and
being remunerated on a "success fee" basis;
Board Audit Committee has determined that the Auditor will n. not provide services where the Auditor may be required to review or audit its own work, including:
the preparation of accounting records:
the design and implementation of information technology systems;
conducting valuation, actuarial or legal services:
promoting, dealing in or underwriting securities; or
providing internal audit services;
Board Audit Committee regularly reviews the performance and $\mathcal{B}\mathcal{S}$ independence of the Auditor and whether the independence of this function has been maintained having regard to the provision. of non-audit services;
the Auditor has provided a written declaration to the Board $\mathscr{U}$ regarding its independence at each reporting period; and
Board Audit Committee approval is required before the n. engagement of the Auditor to perform any non-audit service. for a fee in excess of \$100,000.

The above Directors' statements are in accordance with the advice received from the Board Audit Committee.

16.3 audit independence declaration

A copy of the Auditor's Independence Declaration as required under section 3070 of the Corporations Act 2001 is set out in the Financial Statements and forms part of this Directors' Report.

17. corporate governance

The Responsible Entity's Corporate Governance Statement is set out in a separate section of the DB RREEF Trust Annual Report.

18. combined financial statements

19, rounding of amounts and currency

20. management representation

The Chief Executive Officer and the Chief Financial Officer have reviewed the Trust's financial reporting processes, policies and procedures together with its risk management and internal control. and compliance policies and procedures. Following that review it is their opinion that the Trust's financial records for the financial year. have been properly maintained in accordance with the Corporations Act 2001 and the Financial Statements and their notes comply with the accounting standards and give a true and fair view.

21. directors' authorisation

This Directors' Report is made in accordance with a resolution of the Directors.

Chix Sem

Christopher T Beare Chair

22 August 2006

Victor P Hoog Antink Chief Executive Officer 22 August 2006

directors' report DR RREEF OPERATIONS TRUST

The Directors of DB RREEF Funds Management Limited (DRFM) as Responsible Entity of DB RREEF Operations Trust (DRO or the Trust) and its consolidated entities present their Directors' Report together with the consolidated Financial Statements for the year ended 30 June 2006.

The Trust together with DB RREEF Diversified Trust, DB RREEF Industrial Trust and DB RREEF Office Trust form the DB RREEF Trust (DRT). stapled security.

1. directors and secretaries

1.1 directors

The following persons were Directors or Alternate Directors of DRFM at any time daring the year, and to the date of this Directors' Report:

Directors	Appointed	Resigned
Christopher T Beare	4 August 2004
Elizabeth A Alexander AM	1 January 2005
Barry R Brownjohn	1 January 2005
Stewart F. Ewen OAM	4 August 2004
Victor P Roog Antink	1.0ctober 2004
Charles B Leitner (II)	30 March 2005.
Brian E Scullin	1 January 2005.
Alternate Director for Charles B Leitner III
Shaun A Mays	30 March 2005	30 January 2006
Andrew J Fay	30 January 2006

Particulars of the qualifications, experience and special responsibilities of the Atternate Director who resigned during the period are as follows:

Shaun A Mays BSc (Floos), MSc, MBA (Alternate Director to Chartes B Lettner III)

Shaun Mays was appointed the Global Head of RREEF Infrastructure Investments in May 2005 and is now based in New York. Prior to this appointment Shaun joined Deutsche Asset Management (Australia) Limited as Australian Chief Executive Officer, Previously Shaun was Managing Director of Westpac Financial Services. He was also Chief Investment Officer of Commonwealth Financial Services and Managing Director and Chief investment Officer of Mercury Asset Management. He has more than 19 years' experience in the funds management industry, in both executive management and investment positions, gained in Australia, the United Kingdom and the USA. In addition to his traditional asset management expertise. Shaun has experience in the property and private equity sectors. Shaun was Deutsche Bank's nominated Alternate Director for Charles Leitner until January 2006.

1.2 company secretaries

The names and details of the Company Secretaries of DRFM as at 30 June 2006 are as follows:

Tanya L Cox MBA MAICD

(Company Secretary)

Appointed: 1 October 2004

Tanya Cox joined DB Real Estate in 30ky 2003 as Chief Operating Officer, responsible for the overall operational efficiency of the real estate business in Australia. Tanya has held various general management positions over the past 15 years, including Director and Chief Operating Officer of NM Rothschild & Sons (Australia) Ltd and General Manager - Finance, Operations and IT of Bank of New Zealand (Australia). Tanya is Chief Operating Officer and Company Secretary of DRFM and DB RREEF Hotdings Pty Limited and is a member of the Board Risk and Compliance Committee.

John C Easy B Comm ELB (Company Secretary)

Appointed: 1 3uly 2005

John Easy joined Deutsche Asset Management as a senior lawyer in 1997 and has been involved in the listing of Deutsche Office Trust and a number of major acquisition, disposal and leasing transactions for the group. John has responsibility for legal issues affecting the property portfolio. John was formerly a senior associate with law firms Allens Arthur Robinson and Gilbert & Tobin. John is currently undertaking the Graduate Diploma in Applied Corporate Governance with Chartered Secretaries Australia. John is General Counsel and Company Secretary for DRFM and DB RREEF Holdings Pty Limited and is a member of the Board Risk and Compliance Committee.

directors' report (continued)

DR RREEF OPERATIONS TRUST

2. attendance of directors at board meetings and board committee meetings

The number of Directors' meetings held during the year and each Director's attendance at those meetings is set out in the table below.

Board meetings	Main meetings held ^:	Main meetings attended	Special meetings heid	Special meetings attended
Directors
Christopher T Beare
Elizabeth A Alexander AM
Barry R Brownjohn
Stewart F Ewen OAM				10
Victor P Hoog Antiak
Charles B Feitner BP
Brian E Scullin				i ( )

3 While a Director or Alternate Director.

2 Based in New York, OSA

Special meetings are held at a time to enable the maximum number of Directors to attend and are generally held to consider specific items that cannot be held over to the next scheduled main meeting.

The number of Board Committee meetings held during the year and each Director's attendance at those meetings is set out in the table below.

	Board Audit Committee		Board Risk and Compliance Committee		Board Nomination and Remimeration Committee		Board Treasury Policy Committee
	Meetings held ¹	Meetings attended ¹	Meetings held ^p	Meetings attended	Meetings held ³	Meetings attended	Meetings heid!	Meetings attended
Directors
Christopher T Beare					b	h
Flizzheth A Alexander AM.	Q	9
Barry R Brownighn	9	9
Stewart E Ewen CAM ²					IN.	3
Victor P Hoog Antiak
Charles B Feitner III
-Brian-E-Scullin?	b		4	Δ	b.	5

3 While a member.

2 Stewart F Ewen resigned from the Board Audit Committee and Brian E Sculin was appointed to the Board Audit Committee effective 1 October 2005.

3. directors' interests

3.1 interest in DB RREEF Trust's securities

As at the date of this Directors' Report, the interests of each Director in the securities of DB RREEF Trust are:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Name	Held personally	Held indirectly
Christopher T Beare	Nil	N
Elizabeth A Alexander AM	ΝR	Na
Barry R Brownjohn	Nii	Na
Stewart F Ewen OAM	Νiί	国
Andrew J Fav (alternate to Charles B Leitner BI).	N#	下注
Victor P Hoog Antiak	N8	国
Charles B Leitner III	N#	图
Brian E Scullin	Na	Νŧ

As at the date of this Directors' Report no Director or Alternate Director or any officer of DRFM held options over, or any other contractual interest in, securities in DB RREEF Trust.

3.2 other interests

At the date of this report no Director or Alternate Director held an interest in any other fund managed by DRFM or any other entity that forms part of DB RREEF Trust.

4. directors' directorships in other listed entities

Director	Company	Date appointed	Date resigned
Elizabeth A Alexander AM	CSL Limited	July 1991.
	Borai Limited	September 1991
	AMCOR Limited	April 1994	October 2005
Brian E Scullin	Deutsche Asset Management.
	(Australia) Limited!	20 December 1999
	IYS Instalment Receipt Limited ^®	-24 October 2000
Alternate Director
Andrew J Fay (alternate to Charles B Leitner III).	Deutsche Asset Management
	(Australia) Limited ¹	4 May 2005
	IYS Instalment Receipt Limited ^®	4 May 2005

1 IYS Instalment Receipt Limited has issued ASX listed instalment receipts over units in the Deutsche Relait Infrastructure Trust, a managed investment scheme that is listed but not quoted on ASX and whose Responsible Entity is Deutsche Assel Management (Australia) Eimited.

5. principle activities

The purpose of the Trust is to be a trading trust. There were no significant changes in the nature of the Trust's activities during the year. The number of employees of the Trust during the reporting period to 30 June 2006 was 132 (2005: 123).

6 intal value of trust assets

The total value of the assets of the Trust as at 30 June 2006 was \$1.576 million (2005; \$828 million). Details of the basis of this valuation are outlined in note 1 of the Notes to the Financial Statements and form part of this Directors' Report.

7, review and results of operations

8. likely developments and expected results of operations

In the opinion of the Directors, disclosure of any information regarding business strategies and the future developments or results of the Trust, other than the information atready outlined in this Directors' Report or the Financial Statements accompanying this Directors' Report, would be unreasonably prejudicial to the Trust.

9. significant changes in the state of affairs

The Directors of the Responsible Entity are not aware of any matter or circumstance, not otherwise dealt with in this Directors' Report. or the Financial Statements, which has significantly or may significantly affect the operations of the Trust, the results of those operations. or the state of the Trust's affairs in future financial years.

10. matters subsequent to the end of the financial year

11. distributions

Distributions paid or payable by the Trust for the year ended 30 June 2006 are outlined in note 32 of the Notes to the Financial Statements and form part of this Directors' Report.

12. responsible entity fees and associate interests

13. interests in the trust

The Trust did not have any options on issue as at 30 June 2006 (2005: nil).

directors' report (continued)

DR RREEF OPERATIONS TRUST

14. environmental regulation

15. indemnification and insurance

16. audit

16.1 anditor

PricewaterhouseCoopers (PwC or the Auditor) continues in office in accordance with section 327 of the Corporations Act 2001.

16.2 non-audit services

Board Audit Committee has determined that the Auditor will 9Ė not provide services that have the potential to impair the independence of its audit role, including:
participating in activities that are normally undertaken by management: and
being remunerated on a "success fee" basis;
Board Audit Committee has determined that the Auditor will n. not provide services where the Auditor may be required to review or audit its own work, including:
the preparation of accounting records:
the design and implementation of information technology systems;
conducting valuation, actuarial or legal services:
promoting, dealing in or underwriting securities; or
providing internal audit services;
Board Audit Committee regularly reviews the performance and $\mathcal{B}\mathcal{S}$ independence of the Auditor and whether the independence of this function has been maintained having regard to the provision. of non-audit services;
the Auditor has provided a written declaration to the Board $\mathscr{U}$ regarding its independence at each reporting period; and
Board Audit Committee approval is required before the n. engagement of the Auditor to perform any non-audit service. for a fee in excess of \$100,000.

The above Directors' statements are in accordance with the advice received from the Board Audit Committee.

16.3 audit independence declaration

A copy of the Auditor's Independence Declaration as required under section 3070 of the Corporations Act 2001 is set out in the Financial Statements and forms part of this Directors' Report.

17. corporate governance

The Responsible Entity's Corporate Governance Statement is set out in a separate section of the DB RREEF Trust Annual Report.

18. combined financial statements

19, rounding of amounts and currency

20. management representation

The Chief Executive Officer and the Chief Financial Officer have reviewed the Trust's financial reporting processes, policies and procedures together with its risk management and internal control. and compliance policies and procedures. Following that review it is their opinion that the Trust's financial records for the financial year. have been properly maintained in accordance with the Corporations Act 2001 and the Financial Statements and their notes comply with the accounting standards and give a true and fair view.

21. directors' authorisation

This Directors' Report is made in accordance with a resolution of the Directors.

Chix Sem

Christopher T Beare Chair

22 August 2006

Victor P Hoog Antink Chief Executive Officer 22 August 2006

auditor's independence declaration

DB RREEF INDUSTRIAL TRUST

auditor's independence declaration

DB RREEF OFFICE TRUST

auditor's independence declaration

DB RREEF OPERATIONS TRUST

income statements

FOR THE YEAR ENDED 30 JUNE 2006

			DIT Consolidated		DIT Parent Entity
	Note(s)	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Revenue from ordinary activities
Property revenue	2	99.152	93,755	66.973	61.536
Dividend revenue				29,720	3.715
Interest revenue	3	273	282	187	220
Interest revenue from Stapled Entities		Ξ.
Recoverables from Stapled Entities
Total revenue from ordinary activities		99,425	94,037	96,880	63,471
Share of net profits of associates accounted
for using the equity method	17	83.566	51,521
Net gain on sale of investment properties.		1.378	979	1,004	1,168
Net fair value gain of investment properties		82,069	31,381	47.751	28,117
Net fair value gain of investments			$\ddot{\phantom{a}}$	121,305	69.200
Net fair value gain of derivatives		11,990	$\cdots$	11,990
Net foreign exchange gain Other income		1,393	29 $\ddot{\phantom{a}}$		9.461
Total income		279,821	177,947	278,930	171,417
Expenses
Property expenses		(18.195)	(17.051)	(12,026)	(11.324)
Responsible Entity fees	36	(6.258)	(5.491)	(6,258)	(5.491)
Finance costs	4	(26, 307)	(24, 627)	(26, 221)	(24.626)
Net foreign exchange loss		$\cdots$	$\cdots$	(3,128)	$\cdots$
Depreciation		$\cdots$		$\overline{\phantom{a}}$
Costs associated with the Transaction	5	(160)	(14, 729)	(160)	(14.729)
Other experises	7	(1,393)	(1, 34)	(1,316)	(1,188)
Total expenses		(52, 313)	(63, 239)	(49,109)	(57, 358)
Profit before tax		227.508	114,708	229,821	114,059
Tax expense
Income tax expense	6
Profit after tax		227,508	114,708	229,821	114,059
Net profit attributable to minority interests	31	μ.,
Net profit		227,508	114.708	229.821	114,059

Earnings per unit		Cents	Cents
Basic earnings per unit on profit attributable to equity
holders of the parent entity	41	8.21	5.82
Diluted earnings per unit on profit attributable to equity
holders of the parent entity	41	8.21	5.82

The above Income Statements should be read in conjunction with the accompanying notes.

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$′000	2005 \$'000	2006 \$'000	2005 \$'000
236,985	216,260	149.484	138,474	3,240	1.380	$\ddotsc$
13,287	1.411	17,277	932 $\cdots$	$\sim$ 5,170 54,639	$\overline{\phantom{a}}$ 3.797 27,152	6,250 4.980 3,177	3.718 928
$\ldots$			$\overline{\phantom{a}}$	1,376	9.159	-132	26
250,272	217,671	166.761	139,406	64,425	41,488	14,539	4,672
2,433	(1, 837)			4.845	2.571
$\ldots$ 236,728	$\sim$ 78,054	$\cdots$ 163,695	42,595	$\ddot{\phantom{a}}$
$\cdots$ 27,145 117	$\cdots$	107,160 27,145 2,262	84.712 $\mathbb{Z}^2$	616		616 $\ddot{\phantom{a}}$
329	260.	315	258	$\ldots$		$\cdots$
517,024	294,148	467,338	266,971	69,886	44,059	15,155	4,672
(58, 343) (11,903)	(55,892) (10, 825)	(34, 566) (8,195)	(32,865) (7,383)	(1,121) $\sim$	(343) $\cdots$
(64.754) $\cdots$	(53.894)	(62, 206) $\cdots$	(53,035)	(58, 884)	(29, 357)	(4.105)	(1,556)
$\sim$ (160)	(12,480)	$\sim$ (160)	(12,480)	(1.023) $\sim$ 100 $\mu$	(8, 345)	$\cdots$	$\cdots$
(729)	(2.982)	(477)	(2.855)	(406)	(144)	(369)	(104)
(135, 889) 381,135	(136,073) 158.075	(105, 604) 361.734	(108, 618) 158.353	(61, 434) 8.452	(38, 189) 5.870	(4, 474) 10.681	(1,660) 3,012

381,135 (4,511)	158.075 - (619)	$\cdots$ 361,734 $\cdots$	158.353 $\sim$	(1,169) 7.283 $\sim$ $-$	(990) 4.880 $\sim$ $-$	(1,330) 9.351 $\sim$ $-$	(904) 2,108 $\sim$
376,624	157,456	361,734	158,353	7,283	4,880	9,351	2,108

Cents	Cents			Cents	Cents
13.58	7.11			0.26	0.36
13.58	7.11			0.26	0.36

balance sheets

AS AT 30 JUNE 2006

			DIT Consolidated		Dit Parent Entity
	Note(s)	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
Current assets
Cash and cash equivalents	9	31,980	5,577	31,294	4.039
Receivables	10	3,532	3,076	42,437	50,227
Held for safe investment properties	14	24,000
Inventories	11
Loan to third parties
Derivative financial instruments Loans and receivables	12 20	23,381		23,381
Loans with retated parties	21	138,948	138,948	138,948	138,948
Current tax assets
Other	13	1,879	2,749	1,212	2.173
Total current assets		223,720	150,351	237,272	195,387
Non-current assets
Investment properties	14	1,002,754	936,284	679,795	621,252
Property, plant and equipment	15	80,350	27,913	80,350	27,913
Other financial assets at fair value through profit or loss	16			307,072	268,058
Investments accounted for using the equity method	17	272,400	177,759
Investments in associates Other financial assets	17 18			272,400	177,759
Deferred tax assets	19.
Loans with related parties	21		1,234		1,234
Other	22	842	4,109	699	3,972
Total non-current assets		1,356,346	1,147,299	1,340,316	1,100,188
Total assets		1,580,066	1,297,649	1,577,588	1,295,575
Current liabilities
Payables	23	10,509	10,459	8,173	8,520
Interest bearing liabilities.	24		354,338		354,338
Loans with related parties	21			$\ddot{\phantom{0}}$	$\cdots$
Current tax liabilities Provisions	25	$\overline{\phantom{a}}$ 31,113	39,615	μ, 31,113	39,615
Derivative financial instruments	12	9,116		9,116	$\cdots$
Other	26	$\cdots$	1,121		1,121
Total current liabilities		50,738	405.533	48,402	403,594
Non-current liabilities
Interest bearing liabilities	24	583,795	131.850	583,795	131,850
Deferred tax liabilities	27	$\cdots$
Other	28	717	4,108	576	3,973
Total non-current liabilities		584,512	135,958	584,370	135,823
Total liabilities		635,250	541,491	632,772	539,417
Net assets		944,816	756,158	944,816	756,158
Equity
Contributed equity	29	689,280	668,995	689,280	668,995
Reserves	30	765	(649)
Undistributed income	30	254,771 944,816	87,812 756,158	255,536 944,816	87,163 756,158
Minority interest	31
Total equity		944,816	756,158	944,816	756,158

The above Balance Sheets should be read in conjunction with the accompanying notes.

DRO Parent Entity		DRO Consolidated		DOT Parent Entity		DOT Consolidated
2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000

150	108	1,278	5,814	7,958	8.887	9,850	17,127
1,238	4.754	1.970	7.610	91.674	181,821	3.483	3.089
		48.469				$\cdots$
						5.006
			62.173		25.754		25.754
45,092	45,092	45,092	45,092 $\sim$ 100 $\pm$
		$\cdots$	289				$\ldots$
		137	146	3,015	1,256	3,811	2,101
46,480	49,954	96,946	121,124	102,647	217,718	22,150	48,071

				1.685.138	1.897,000	2,449,051	2,842,573
	63. $\ldots$		56.472 $\sim$	518.232	600.077
		17.166	15,761			36,609	36.800
14,595	14,595
100 -16	-100 108	$\ldots$ 127	$\sim$ -116
47,855	59,534	713,276	1,382,250	207,354	181,840	207,354	181,840
				767	835	957	941
62,566	74,400	730,569	1,454,599	2,411,491	2,679,752	2,693,971	3,062,154
109,046	124,354	827,515	1,575,723	2,514,138	2,897,470	2,716,121	3,110,225

243 $\cdots$	258 $\sim$	4,025	-7,821 216,704	22,975	22,213	24,050	29,024
48,932	48.932	48,932.	48,932	55.684	55,684	55.684	55.684
-920	1,225	1,069	1,225
1.912	$\ldots$ 154	1,912 $\cdots$	$\cdots$ 62,327	35,517	70,232 374	35.517	70,232 374
	$\ldots$	34	20.		$\cdots$
52,007	50,569	55,972	337.029	114,176	148,503	115,251	155,314

51,303	58,891	762,987	1,223,023	952,449	1,042,484	952,449	1,042,484
	1	48	74 $\ldots$	4,611	2,325	694	374
51,303	58,892	763,035	1,223,097	957,060	1,044,809	953,143	1,042,858
103,310	109,461	819,007	1,560,126	1,071,236	1,193,312	1,068,394	1,198,172
5,736	14,893	8,508	15,597	1,442,902	1,704,158	1,647,727	1,912,053

5,540	5,801	5,540	5,801	1.359.854	1,399,806	1,359,854	1,399,806
						38	(1,326)
-196	9,092	2,968	9,796	83,048	304,352	89,330	309,510
5,736	14,893	8,508	15,597	1,442,902	1,704,158	1,449,222	1,707,990
	$\ldots$	$\ldots$	$\cdots$		$\cdots$	198,505	204,063
5,736	14,893	8,508	15,597	1,442,902	1,704,158	1,647,727	1,912,053

statements of changes in equity

FOR THE YEAR ENDED 30 JUNE 2006

			ÐIT Consolidated		DIT Parent Entity
	Note(s)	2006 \$'000	2005 \$'000	2006 \$7000	2005 \$'000
Total equity at the beginning of the year Adjustment on adoption of AASB 132 and AASB 139. net of tax:		756,158	542.259	756.158	542.259
Undistributed income		719		(180)
Exchange differences on translation of foreign operations.	30	1,414	(649)
Net income recognised directly in equity		2,133	(649)	(180)
Net profit		227,508	114,708	229,821	114,059
Total recognised income and expense for the year Transactions with equity holders in their capacity as equity holders:		229,641	114,059	229.641	114.059
Contributions of equity, net of transaction costs Net capital contributions/(distributions) to staple.	29	20,285	29.536	20.285	29.536
net of transaction costs.	29		136.666		136.666
Distributions provided for or paid	32	(61, 268)	(66.362)	(61.268)	(66.362)
Transactions with minority interest.
Contribution of equity, net of transaction costs.
Distributions provided for or paid	32
Total transactions with equity holders		(40, 983)	99,840	(40, 983)	99,840
Total equity at the end of the year		944,816	756,158	944.816	756,158
Total recognised income and expense for the year is attributable to:
Equity holders of the parent Minority interest		229.641	114,059	229.641	114.059
Total recognised income and expense for the year		229,641	114,059	229,641	114.059

The above Statements of Changes in Equity should be read in conjunction with the accompanying notes.

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000
1,647,727	1,383,115	1,442,902	1,375,936	8,508	$\overline{a}$	5,736

(2.128)		(2,128)		(455)		(455)
(1,364)	38			$\cdots$		$\cdots$
(3,492)	38	(2,128)	$\mathbf{m}$	(455)	$\cdots$	(455)	$\mathbf{w}$
381,135	158,075	361,734	158,353	7,283	4,880	9,351	2,108
377,643	158,113	359,606	158,353	6.828	4.880	8,896	2,108

39.952	56,421	39,952	56.421	261	289	261	289
$\overline{\phantom{a}}$	(61,892)	$\ldots$	(61,892)		5,251		5,251
(138.302)	(85,916)	(138, 302)	(85,916)	$\cdots$	(1,912)		(1,912)
- (181)	197,886	$\ddotsc$		$\cdots$
(14.786)	$\cdots$
(113,317)	106,499	(98,350)	(91, 387)	261	3,628	261	3,628
1,912,053	1,647,727	1,704,158	1,442,902	15,597	8,508	14,893	5,736

373.132	157.494	359,606	158.353	6,828	4.880	8,896	2,108
4,511	-619	$\ldots$	$\cdots$	$\cdots$	$\cdots$	$\cdots$
377,643	158,113	359,606	158,353	6,828	4.880	8,896	2,108

cash flow statements

FOR THE YEAR ENDED 30 JUNE 2006

			DIT		DIT
			Consolidated		Parent Entity
	Note(s)	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000
Cash flows from operating activities
Receipts in the course of operations (inclusive of GST).		94.562	94.004	59.741	62,061
Payments in the course of operations (inclusive of GST).		(35,961)	(30.731)	(27, 269)	(23, 870)
Interest received		273	282	187	220
Finance costs paid to financial institutions		(19.682)	(22, 202)	(19,654)	(22.202)
Distributions received Dividends received		18,951		18,951
Income and withholding taxes paid		$\cdots$
Net cash inflow from operating activities	39	58,143	41,353	31,956	16,209
Cash flows from investing activities
Proceeds from safe of investment properties		11,112	26,200	939	22,000
Payment for parchase of controlled entity,
net of cash acquired
Payments for capital expenditure on investment properties		(11, 304)	(45,855)	(9,419)	(41, 394)
Payments for investment properties Payments for investments in unit trusts
Payments for investments accounted for using
the equity method		(34,060)	(138,033)
Payments for inventories
Payments for property, plant and equipment.
Payments for capital expenditure on property, plant
and equipment Loan to/from controlled entities		(55, 428)		(55.428) 35.320	23.715
Proceeds from repayment of third party loan
Payments for other financial assets at fair value
through profit or loss				(34,060)	(138,033)
Net cash outflow from investing activities		(89, 680)	(157, 688)	(62, 648)	(133,712)
Cash flows from financing activities
Proceeds from issue of RENTS units
Borrowings provided to the Trusts Borrowings provided by the Trusts		(75.850) 463,428	(42.143) 151,988	(75, 850) 463,428	(42,143) 151,988
Establishment expenses and unit issue costs		(4)	(4)	(4)	(4)
Proceeds from borrowings		77.509	50,739	77,509	50,739
Repayment of borrowings		(357,680)	(17, 374)	(357,680)	(17, 374)
Distributions paid to unitholders		(49, 482)	(26, 451)	(49, 482)	(26, 451)
Distributions paid to minority interests			$\cdots$
Net cash (outflow)/inflow from financing activities		57,921	116,755	57,921	116,755
Net inflow/(outflow) in cash and cash equivalents		26,384	420	27,229	(748)
Cash and cash equivalents at the beginning of the year		5,577	5,157	4,039	4,787
Effects of exchange rate changes on cash and cash equivalents.		19		26
Cash and cash equivalents at the end of the year		31,980	5,577	31,294	4,039

The above Cash Flow Statements should be read in conjunction with the accompanying notes.

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000

259,333	225,691	190,501	123,202	49,397	10,939	$\cdots$
(91, 334)	(89,187)	(61, 126)	(54, 824)	(6,492)	(8,737)	(184)	(47)
836	466	614	932	6,416	29,082	6,229	2,529
(63, 437)	(52, 208)	(58, 438)	(49,660)	(34, 526)	(27,069)	(703)	(237)
2,242	1,788
				1,500		1,500
				(1,069)		(921)
107,640	86,550	71,551	19,650	15,226	4,215	5,921	2,245


$\cdots$	(4, 562)	$\ddotsc$
(66, 577)	(70, 042)	(49,612)	(53.138)
(102, 599)	$\cdots$	$\ldots$
		(20, 648)
					(5,215)		(5,215)
					(47, 432)
				(63)		(63)
				(8,644)
		(75,657)	245.056
5,049


(164, 127)	(74, 604)	(145, 917)	191,918	(8,707)	(52, 647)	(63)	(5,215)
$\cdots$	204,000	$\cdots$				$\cdots$
(57,650)	(227,759)	(57,650)	(227,759)	(648, 014)	(942, 184)	(7,000)	(46,900)
95,627	12,498	95,627	10,271	181,840	228,908	$\cdots$
(263)	(6,114)		$\cdots$		$\langle 1 \rangle$	$\cdots$
100,945	70,643	100,945	70,643	671,000	1,544,885	1,100	50,020
$\cdots$	(7,694)	$\ddotsc$	(7,694)	(205,000)	(781,898)
(63, 627)	(52,809)	(63, 627)	(52.809)	(1,809)
(11,268)	$\cdots$	$\cdots$
63,764	(7,235)	75,295	(207, 348)	(1,983)	49,710	(5,900)	3,120
7,277	4,711	929	4,220	4,536	1,278	(42)	150
9,850	5,139	7,958	3,738	1,278		160
$\cdots$	$\cdots$	$\cdots$		$\cdots$		$\cdots$	$\cdots$
17,127	9,850	8,887	7,958	5,814	1,278	108	150

notes to the financial statements

FOR THE YEAR ENDED 3D HINE 2006

note 1. summary of significant accounting policies

(a) basis of preparation

On 30 September 2004, DB RREEF Trust (the Stapled Entity) was created by the stapling together of DDF, DIT, DOT and DRO and their controlled entities (the Trusts). The deemed acquirer of the Trust is DDE. The basis of this approach is consistent with current practice in relation to the financial obligations of stapled entities that were formed after 1 July 2004.

DRT stapled securities are guoted on the Australian Stock Exchange under the code DRT and corabilise one unit in each of DDF. DIT. DOT and DRO. These units can not be traded separately. Each entity forming part of DRT continues as a separate legal entity in its own right under the Corporations Act 2001 and is therefore required to comply with the reporting and disclosure requirements under the Corporations Act 2001 and Australian Accounting Standards.

This financial report for the year ended 30 June 2006 has been prepared in accordance with the requirements of the Trusts' Constitutions, the Corporations Act 2001 and Australian Equivalents to International Financial Reporting Standards (AIFRS).

The financial statements of the Trusts for the year ended 30 June 2005 were prepared in accordance with previous Australian Generally Accepted Accounting Principles (AGAAP), AGAAP differs in certain respects from AIFRS and the 30 June 2005 comparatives. have been restated accordingly.

This financial report is prepared on the going concern basis and historical cost conventions and has not been adjusted to take account of either changes in the general purchasing power of the dollar or changes in the values of specific assets, except for the revaluation of certain non-current assets and financial instruments (refer notes $1(f)$ , $1(g)$ , $1(g)$ and $1(g)$ ).

This is the first financial report prepared in accordance with AFFRS. The Trusts changed their accounting policies on 1 July 2005 to comply with AIFRS. The transition to AIFRS has been accounted for in accordance with AASB 1: First Time Adoption of Australian Equivalents to International Financial Reporting Standards, with 1 Jaly 2004 as the date of transition. Reconciliations and descriptions of the effects of transition from previous AGAAP to AIFRS are provided in note 43.

Critical accounting estimates

The preparation of financial statements in conformity with AIFRS may require the use of certain critical accounting estimates and management to exercise its judgement in the process of applying the Trusts' accounting policies. Other than the estimation of fair values described in notes 1(f) and 1(q), no key assumptions concerning the future, or other estimation of uncertainty at the reporting date, have a significant risk of causing material adjustments to the financial statements in the next annual reporting period.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2006. With the exception of financial instruments, the comparative information presented in these financial statements has been restated to reflect. these adjustments. The Trusts have taken the exemption available under AASB 1 to only apply AASB 132: Financial Instruments -Disclosure and Presentation and AASB 139: Financial Instruments - Recognition and Measurement from 1 July 2005.

The Trusts have elected not to apply AASB 3: Business Combinations retrospectively to business combinations that occurred prior to the transition date of 1 July 2004.

(b) principles of consolidation

Controlled entities

The financial statements incorporate an elimination of inter-entity transactions and balances to present the financial statements on a consolidated basis.

Net profit and equity in controlled entities, which is attributable to the unitholdings of minority interests, is shown separately in the Income Statements and Balance Sheets respectively.

Where control of an entity is obtained during a financial year. its results are included in the facome Statements from the date on which control is obtained.

The financial statements incorporate all the assets, liabilities and results of the parent and its controlled entities.

Partnerships and joint ventures

Where assets are held in a partnership or joint venture with another entity directly, the Trusts' share of the results and assets of this partnership or joint venture is consolidated into the Income-Statements and Balance Sheets of the Trusts. Where assets are jointly controlled via ownership of units in single purpose unlisted unit trusts. or shares in companies, the Trusts apply equity accounting to record the operations of these investments (refer note 1(t)).

Interests held by DIT and DOT in controlled entities and associates. are measured at fair value with changes in fair value recognised immediately in the Income Statements.

(d) revenue recognition

Rent

Rental income is brought to account on a straight-line basis over the lease term for leases with fixed rent review clauses, in all other circurastances rental income is brought to account on an accruals. basis. If not received at balance date, rental income is reflected in the Balance Sheets as a receivable. Recoverability of receivables is reviewed on an ongoing basis. Debts which are known to be not collectable are written off.

Interest income

Interest income is brought to account on an accruats basis using the effective interest rate method and, if not received at the balance date, is reflected in the Balance Sheets as a receivable.

Dividends and distribution income

Income from dividends and distributions is recognised when declared. Amounts not received at balance date are included. as a receivable in the Balance Sheets.

(e) expenses

Expenses are brought to account on an accruals basis and, if not paid at the balance date, are reflected in the Balance Sheets as a pavable.

Property expenses

Property expenses include rates, taxes and other property outgoings. incurred in relation to investment properties where such expenses. are the responsibility of the Trusts.

Financing costs to financial institutions

Financing costs include interest excense and other costs incurred. in respect of obtaining finance. Other transaction costs incurred including foan establishment fees in respect of obtaining finance are applied against the related financings with the amortisation of such costs being recognised through the effective interest rate on the financing over the term of the respective agreement.

Financing costs are expensed unless they relate to qualifying assets. Qualifying assets are assets which take a substantial period of time to prepare for their intended use or sale. Where funds are borrowed specifically for the acquisition or construction of a qualifying asset, financing costs capitalised are those incurred in relation to that financing, net of any interest earned on those financings. Where funds are borrowed generally, financing costs are capitalised using a weighted average capitalisation rate.

(f) derivatives and other financial instruments

The Trusts have adopted the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 July 2005. Therefore, the Trusts have applied superseded AGAAP in the comparative information on financial instruments within the scope of AASB 132. and AASB 139. Under AGAAP, the accounting policies were as follows:

The Trusts' activities expose them to changes in interest rates and foreign exchange rates. There are policies and limits approved by the Board of Directors of the Responsible Entity in respect of the usage of derivatives and other financial instruments to hedge those cash. flows and earnings which are subject to interest rate risk and foreign currency rate risk respectively. In conjunction with its advisers, the Responsible Entity continually reviews the Trusts' exposures and updates its treasury policies and procedures. The Trusts do not trade in derivative instruments for speculative purposes.

Changes in the net market values of hedging instruments are matched and brought to account with the carrying values and income streams of the underlying assets or flabilities.

The accounting policies adopted prior to 1 July 2005 in relation to material financial instruments are detailed below:

(i) Debt instruments

Debt instruments are carried at face value. Interest is brought to account on an accruals basis.

(ii) Interest rate swaps

The Trusts enter into interest swap agreements with the objective of hedging the risk of interest rate fluctuations in respect of underlying borrowings. Net receipts and payments in relation to interest rate. swaps are recognised in the Income Statements on an accruais. basis over the life of the hedges.

(iii) Forward exchange contracts

Forward exchange contracts are entered into by the Trusts to hedge their earnings exposure in relation to foreign investments. This currency hedge rate is used to translate items in the Income Statements

The unrealised gains receivable/losses payable in respect of all currency hedges are recorded on the Balance Sheets.

The accounting policies set out below are applicable from 1. July 2005:

(i) Derivatives

The Trusts' activities expose them to changes in interest rates and foreign exchange rates. Accordingly, the Trusts enter into various derivative financial instruments to manage their exposure to the movements in interest rates and foreign exchange rates. Policies and limits are approved by the Board of Directors of the Responsible Entity in respect of the usage of derivatives and other financial instruments to hedge those cash flows and earnings which are subject to interest rate risks and foreign currency risks. In conjunction with its advisers, the Responsible Entity continually reviews the Trusts' exposures and updates their treasury policies. and procedures. The Trusts do not trade in derivative instruments. for speculative purposes.

Even though the derivatives entered into aim to provide an economic hedge to interest rate and foreign currency risks, the Trusts have elected not to apply hedge accounting under AASB 139: Financial Instruments - Recognition and Measurement. Accordingly derivatives, including interest rate swaps and foreign exchange. forward contracts, are measured at fair value with any changes. in fair value recognised immediately in the Income Statements.

(ii) Embedded derivatives

Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not measured at fair value with changes in fair value recognised in the Income Statements.

(iii) Debt and equity instruments issued by the Stapled Entity Financial instruments issued by the Trusts are classified as either fiabilities or as equity in accordance with the substance of the contractual arrangements. Accordingly, ordinary units issued by DIT. DOT and DRO are classified as equity.

Further securities issued by RENTS, a controlled entity, are classified as equity and are treated as minority inferest.

Interest and distributions are classified as expenses or asdistributions of profit consistent with the balance sheet classification. of the related debt or equity instruments.

Transaction costs arising on the issue of equity instruments are recognised directly in equity (net of tax) as a reduction of the proceeds of the equity instruments to which the costs relate. Transaction costs are the costs that are incurred directly in connection with the issue of those equity instruments and which would not have been incurred had those instruments not been issued.

(iv) Loans and receivables

Loans and other receivables are measured at amortised cost using the effective interest rate method less impairment.

note 1. summary of significant accounting policies (continued)

(g) other financial assets

Interests held by DRO in controlled entities are measured at cost. The carrying amount of these investments is reviewed annually to ensure they are not in excess of the recoverable amount of the investments.

(h) goods and services tax

Revenues, expenses and capital assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Tax Office. (ATO), in these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Cash flows are included in the Cash Flow Statements on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from or payable to the ATO is classified as operating cash flows.

(i) taxation

Under current Australian income tax legislation DIT and DOT are not liable for income tax provided they satisfy the requirements of the ATO. However DRO, a trading trust, is subject to tax as follows:

* the income tax expense for the year is the tax payable on the current year's taxable income based on a tax rate of 30 percent. adjusted for changes in deferred tax assets and fiabilities and unused tax losses:
deferred tax assets and liabilities are recognised for temporary 96 differences arising from differences between the carrying amount of assets and liabilities and the corresponding tax base of those items. The relevant tax rates are applied to the complative amounts of deductible and taxable temporary differences to measure the deterred tax assets or liabilities;
deferred tax assets and liabilities are not recognised for $\mathscr{U}$ temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent. entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future: and
current and deferred tax balances attributable to amounts. n. recognised directly in equity are also recognised directly is equity.

Dividends received from DB RREEF Industrial Properties, Inc. (US REIT) will be net of US withholding taxes payable in respect of those dividends. The US foreign operations themselves will generally not be subject to US Federal or State income taxes provided they satisfy the necessary requirements of a Real Estate Investment Trust (REIT).

The unitholders will be generally entitled to receive a foreign tax credit for US withholding tax deducted from dividends paid by the US REIT.

(i) distributions

In accordance with the Trusts' Constitutions, the Trusts distribute their distributable income to unitholders by cash or reinvestment. Distributions are provided for when they are declared.

(k) repairs and maintenance

Plant is required to be overhauted on a regular basis and is managed. as part of an ongoing major evolical maintenance program. The costs of this maintenance are charged as expenses as incurred, except where they relate to the replacement of a component of an asset, in which case the replaced component will be derecognised and the replacement costs capitalised in accordance with note 1(g). Other roofine operating maintenance, repair costs and minor renewals are also charged as expenses as incurred.

(I) cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with financial institutions and other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject. to an insignificant risk of changes in value.

(m) receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, which is based on the invoiced amount less provision for doubtful debts. Trade receivables are required to be settled within 30 days and are assessed on an ongoing basis for impairment. Receivables which are known to be uncollectable are written off. A provision for doubtful debts is established when there is objective evidence that the Trusts will not be able to collect all amounts due according to the original terms of the receivables.

(a) investaries

Properties undergoing or having completed construction or development for attimate sale are classified as inventory and are measured at the lower of cost or net realisable value. Cost is assigned by specific identification and includes the cest of acquisition, development and finance costs during development. After development is completed, finance costs and other holding charges are expensed as incurred.

(o) property, plant and equipment

Land is not depreciated. Depreciation on buildings (including fit-out) is calculated on a straight-line basis so as to write off the net cost of each non-current asset over its expected useful life. Buildings (including fit-out) have estimated useful lives of between five to 50 years. Estimates for remaining useful fives are reviewed on a regular basis.

(p) depreciation of property, plant and equipment

All property, plant and equipment is initially recognised at cost including transaction costs. Land and freehold buildings are accounted for using the cost method. Construction in progress is subsequently recognised at fair value in the financial statements.

Revaluation increments are credited directly to the asset revaluation. reserve, onless they are reversing a previous decrement charged as an expense in the Income Statements, in which case they are credited directly to the Income Statements.

Revaluation decrements are recognised directly as an expense in the Income Statements, unless they are reversing a revaluation increment previously credited to, and still included in the balance of the asset revaluation reserve, in which case they are debited directly to the asset revaluation reserve.

(c) investment properties

lavestment properties consist of properties held for long term rental vields, capital appreciation or both. Investment properties are initially recognised at cost including transaction costs, investment properties are subsequently recognised at fair value in the financial statements.

The basis of valuation of investment properties is fair value being the amount for which the assets could be exchanged between knowledgeable willing parties in an arm's length transaction, based on current orices in an active market for similar properties in the same location and condition and subject to similar leases. Where this is not available, an appropriate valuation method is used, which may include the discounted cashflow and the capitalisation method. Discount rates and capitalisation rates are determined based on the Trusts' expertise, knowledge of the industry and where possible a direct comparison to third party rates for similar assets in a comparable location. Rental income from current leases and assumptions about future leases, as well as any expected operational leash outflows in relation to the property, are also reflected in fair value.

External valuations of the individual investments are carried out in accordance with the Trusts' Constitutions, or may be earlier where the Responsible Entity believes there is a potential for a material change in the fair value of the property.

Changes in fair values are recorded in the Income Statements. The gain or loss on disposal of an investment property is calculated as the difference between the carrying amount of the asset at the date of disposal and the net proceeds from disposal and is included in the Income Statements in the year of disposal.

Subsequent redevelopment and refurbishment costs (other than repairs and maintenance) are capitalised to the investment property where they result in an enhancement in the future economic benefits of the property. Repairs and maintenance are accounted for inaccordance with note 1(k).

Held for sale investment properties

Investment properties intended for sale are separately disclosed. on the Balance Sheets as "Held for sale investment properties". Such properties are measured using the same methodology as investment properties.

(r) leasing fees

Leasing fees incurred are capitalised and amortised over the lease periods to which they relate.

(s) lease incentives

Prospective fessees may be offered incentives as an inducement to epter into operating leases. These incentives may take various forms including cash payments, rent free periods, or a contribution to certain fessee costs such as fit-out costs or relocation costs.

The costs of incentives are recognised as a reduction of rental income on a straight-line basis from the earlier of the date which the tenant has effective use of the oremises or the lease commencement. date to the end of the lease term. The carrying amount of the lease incentives is reflected in the fair value of investment properties.

(t) investments accounted for using the equity method

Some investments are held through the ownership of units in single parpose unlisted trusts or shares in unlisted companies where the Trusts exert significant influence or joint control but do not have a controlling interest. These investments are considered to be associates and the equity method of accounting is applied in the financial statements.

Under this method, the entity's share of the post-acquisition profits of associates is recognised as income in the Consolidated Income. Statements. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividends or distributions receivable from associates are recognised in the parent entity's Income Statements, while in the consolidated financial statements they reduce the carrying amount of the investment.

When the Trusts' share of losses in an associate equals or exceeds its interest in the associate (including any prisecured receivables) the Trusts do not recognise any further losses unless they have incurred obligations or made payments on behalf of the associate.

(u) acquisition of assets

The purchase method of accounting is used for all acquisitions including business combinations. Cost is measured as the fair value of the assets given up, shares issued or liabilities assumed at the date of exchange plus costs directly attributable to the acquisition. Where equity instruments are issued in an acquisition, the value of the instruments is their published market price as at the date of exchange unless, in rare circumstances, it can be demonstrated that the published price at the date of exchange is an unreliable indicator of fair value and that other evidence and valuation methods providea more reliable measure of fair value. Transaction costs arising onthe issue of equity instruments are recognised directly in equity.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values. The excess of the acquisition cost over the fair value of the assets and liabilities acquired is recorded as goodwill (refer note 1(v)). If the cost is less than the fair value of the net assets acquired. the difference is recognised directly in the Income Statements.

Where settlement of any part of the cash consideration is deferred, the amounts payable in the future are discounted to their present value. as at the date of exchange at the entity's incremental financing rate.

note 1. summary of significant accounting policies (continued)

(v) goodwill

Where an operation or entity is acquired, the identifiable net assets acquired are measured at fair value. The excess of the acquisition costs over the fair value of the identifiable net assets is brought to account as goodwill in the Balance Sheets. The carrying value of the goodwill is tested for impairment at each reporting date with any decrement in value taken to the income Statements as an expense.

(w) fair value estimation of financial assets and fiabilities

The fair value of financial assets and financial liabilities must be estimated for recognition and measurement and for disclosure purposes.

The fair value of financial instruments traded in active markets (such as publicly traded derivatives and available for safe securities). is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Trusts. is the current bid prices. The appropriate quoted market price for financial liabilities is the current ask price.

The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques including dealer quotes for similar instruments and discounted cash flows, in particular, the fair value of interest-rate swaps is calculated as the present value of the estimated future cash flows and the fair value of forward exchange. rate contracts is determined using forward exchange market rates. at the balance sheet date.

(x) payables

These amounts represent liabilities for amounts owing at the balance date. The amounts are unsecured and are usually paid within 30 days of recognition.

(y) interest bearing liabilities

At loans and borrowings are initially recognised at fair value net of issue costs associated with the borrowing.

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest. method. Amortised cost is calculated by taking into account any issue costs and any discount or premium on settlement.

(z) earnings per unit

Basic and diluted earnings per unit are determined by dividing the net profit attributable to equity holders of the parent entities by the weighted average number of ordinary units outstanding during the year.

(aa) foreign currency

Items included in the financial statements are measured using the curreacy of the primary economic environment in which the entity operates (the functional currency). The financial statements are presented in Australian dollars, which is the Trusts' functional and presentation currency.

(i) Foreign currency transactions

Foreign carrency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities. denominated in foreign currencies are recognised in the Income Statements.

(ii) Foreign operations

Foreign operations are located in the United States of America (US) and New Zealand (NZ). These operations have functional currencies of US Dollars and NZ Dollars respectively, which are translated into the presentation currency.

The assets and liabilities of the foreign operations are translated at exchange rates prevailing at the reporting date. Income and expense items are translated at the average exchange rates for the period. unless exchange rates fluctuate significantly. Exchange differences arising are recognised in the foreign currency translation reserve and recognised in profit or loss on disposal of the foreign operation.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation on or after the date of transition to AIFRS. are treated as assets and liabilities of the foreign operation and translated at exchange rates prevailing at the reporting date.

(ab) segment reporting

A business segment is a group of assets and operations engaged in providing services that are subject to risks and returns that are different to those of other business segments. A geographical segment is engaged in providing services within a particular geographic environment and is subject to risks and returns that are different. from those of segments operating in other geographic environments.

(ac) combined financial statements

(ad) rounding of amounts

The Trusts are the kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the rounding off of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the pearest dollar.

(ae) new accounting standards and UIG interpretations

Certain new accounting standards and UIG interpretations have been published that are not mandatory for the 30 June 2006 reporting period. Our assessment of the impact of these new standards and interpretations is set out below:

(3) AASB 7: Financial Instruments Disclosure and AASB 2005-10: Amendments to Australian Accounting Standards (AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 and AASB 1038).

AASB 7 and AASB 2005-10 are applicable to annual reporting periods beginning on or after 1 January 2007. AASB 7 requires qualitative information about exposure to risks arising from financial instruments, including specific minimum disclosures about credit risk, liquidity risk and market risk. The Trusts have elected not to adopt the standard early. Application of this standard will not affect any of the amounts recognised in the financial statements.

(ii) AASB 2005-4: Amendments to Australian Accounting Standards (AASB 139, AASB 132, AASB 1, AASB 1023 and AASB 1038). AASB 2005-4 is applicable to annual reporting periods beginning on or after 1 January 2006. The amendment restricts the ability to designate financial assets and financial liabilities "at fair value through profit or loss". The amendment will not affect the Trusts' financial statements.
(iii) AASB 2005-11: Amendments to Australian Accounting Standards (AASB 101, AASB 112, AASB 132, AASB 133, AASB 139 and AASB 141)

The amendment deals with the impact of contingently issuable shares and contingently returnable shares on earnings per share. The Trusts do not issue shares of this type and accordingly, the amendment will not affect the Trusts' financial statements.

note 2. property revenue

	DIT		DIT
	Consolidated		Parent Entity
2006	2005	2006	2005
\$000	\$'000	\$000	\$000
Rent and recoverable outgoings. 98.032	94,146	65.171	61,378
(1.887) Incentive amortisation	(1.148)	(1.012).	(529)
3.007 Other revenue	757	2.814	687
99,152 Total property revenue	93,755	66.973	61,536

note 3. Interest revenue

		ÐП Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$'000	2006 \$7000	2005 \$'000
.www.yzuvuvuvuzzzuvuvuvuvuvuzzzuvuvuzzzzuvuvuvuvuvuvuvuvuzzzuvuvuvuvuvuvuvuvuvuvuvuvuvuvuvuvuvu Interest income from financial institutions Interest income from related parties	273 $\cdots$	282	187 $\cdots$	220
Total interest revenue	273	282	187	220

note 4. finance costs

		DIT Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000
Interest paid/payable Amount capitalised	29,457 (3,150)	27,602 (2.975)	29.371 (3.150)	27,601 (2,975)
Total finance costs	26,307	24.627	26.221	24,626

The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.56% (2005: 6.33%). for DB RREEF Industrial Trust.

The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 0.00% (2005: 6.10%) for DB RREEF Office Trust.

The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.55% (2005: 0.00%). for DB RREEF Operations Trust.

note 5, costs associated with the transaction

The costs relate to the fees and expenses arising from the stapling of DDF, DIT, DOT and DRO, the acquisition of the US REIT, and the associated debt arranging and interest rate hedging (together referred to as the Transaction).

note 6. income tax

(a) income tax expense

		DI Consolidated		DП Parent Entity
	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000
Current tax	100			11111
Deferred tax
Income tax expense
Deferred income tax (revenue)/expense
included in income tax expense comprises:
(increase)/decrease in deferred tax assets
Increase in deferred tax fiabilities	$\cdots$		$\overline{\phantom{a}}$

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$7000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
245.652	214.058	158,152	138.343	3.234	1.067	$\cdots$
(15.857)	(7.797)	(12, 268)	(5.910)	$\cdots$		$\cdots$
7.190	9.999	3.600	6.041		313	$\cdots$
236,985	216.260	149.484	138.474	3.240	1.380	PAPA	www.

	DOT consolidated:		dot Parent Entity	,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$000
835. 12.452.	.411 1.111	614 16.663	932	210 4.960	101 3.696	4.960	3.696
13.287	.411	17.277	932	5.170	3.797	4.980	3.718

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$7000	2005 \$000	2006 \$'000	2005 \$'000
64,754 $\cdots$	57.371 (3.277)	62.206 $\cdots$	56.312 (3.277).	60.135 (1.25)	29.357 $\sim$	4.105 $\cdots$	1.556
64.754	53.894	62.206	53.035	58.884	29.357	4.105	. 556

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, $\cdots$		$\cdots$	TITLE	936	1.069	1.225	920
$\cdots$	1.111	$\cdots$	1.111	233	(79)	105	(16)
$\cdots$	1.11	$\cdots$	1.111	1.169	990	1,330	904
$\cdots$	$\cdots$	$\cdots$		207	(127)	104	(16)
$\cdots$		$\cdots$	$\cdots$	26	48
TOP-	n×	PAPA		233	(79)	105	(16)

note 6. income tax (continued)

(b) reconciliation of income tax expense to net profit

		DIT Consolidated		ÐП Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$7000
Profit before tax	227,508	114.708	229.821	114.059
Profit not subject to income tax (note 1(i))	(227,508)	(114.708)	(229, 821)	(114.059)
				$\sim$
Prima facie tax at the Australian fax rate of 30 percent.
(2005: 30 percent)
Tax effect of amounts which are not deductible (faxable)
in calculating taxable income:
Depreciation
Share of net profits of associates	$\cdots$
Tax offset for franked dividends.
Sundry items	$\cdots$		$\cdots$
				www.
Income tax expense

		DĦ Consolidated	DIT Parent Entity
	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
Aggregate current and deferred tax arising in the reporting period and not recognised in net profit or loss but directly debited or credited to equity:
Net deferred tax - credited directly to equity	$\cdots$		$\cdots$
				WWW

note 7, other expenses

			ÐIT		DIT
			Consolidated		Parent Entity
	Note(s)	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000
Audit and advisory fees	8	312	286	282.	225
Custodian fees		102	-96	-87	81
Legal and other professional fees		211	377	198	358
- Bad and doubtful debts		36	י ו	32	-84
Registry costs and listing fees		130.	176	120.	152
Other experises		602	295	597	288
Total other expenses		1.393	1.341	1.316	1.188

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
381.135 (381.135)	158,075 (158.075)	361,734 (361,734)	158,353 (158.353)	8,452 $\cdots$	5.870 $\cdots$	10,681 $\cdots$	3,012
$\sim$	$\mathbf{w}$	$\mathbf{m}$	$\mathbf{w}$	8,452	5,870	10,681	3,012
		$\cdots$		2,535	1,761	3,204	904
		$\sim$	$\cdots$	88		$\cdots$
	$\cdots$	$\cdots$	$\cdots$	(1.454)	(771)	$\cdots$
	$\cdots$		1111	$\cdots$	$\cdots$	(1,875)
		$\cdots$	1.11	$\cdots$
$\overline{\phantom{a}}$	men.	$\mathbf{a}$	$\mathbf{w}$	(1,366)	(771)	(1,874)	$\mathbf{w}$
MM	$\mathbf{w}$	$\mathbf{a}$	$\mathbf{w}$	1,169	990	1,330	904

**********

. . . . . . . . . . . . . . . .

			ЭO Parent Entity		DRO ntaten		DRO ^o arent Entity
.006	.005	2006.	2005	2006	2005	2006	2005
	'000	'000	'000	'000	'000	: 000	6'000

.	1.111	$- - -$ $\label{eq:2.1} \begin{array}{lll} \mathcal{L}{\mathcal{A}}(\mathcal{A}) & \mathcal{L}{\mathcal{A}}(\mathcal{A}) & \mathcal{L}_{\mathcal{A}}(\mathcal{A}) \end{array}$	1.111	че .	1.111	.	$\cdots$
POPU	TOW-	n _n	TOP	(196	$\mathbf{m}$	196'

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
558	423	446	293	303	132	229	-92
240	212	218	212		6		6
56	8	56	8		1111	38	1111
$\cdots$		$\cdots$	1.111	1.1.1	1.11	$\cdots$
196	193	142	193			л
(32)	2.146	(385)	2.149	87		87	'n
729	2.982	477	2.855	406	144	369	104

note 8, audit and advisory fees

During the year the Auditor of the parent entity, its related practices and non-related audit firms earned the following remuneration:

(a) assurance services

Audit services

		DIT Consolidated		DIT Parent Entity
	2006	2005	2006	2005
PwC audit and review of financial reports and other audit work under the Corporations Act 2001	254.467	202.709	-252.467	182.509
PwC fees paid in relation to outgoings.		3.203	$\cdots$
Total remuneration for assurance services	254.467	205.912	252.467	182.509

(b) taxation services

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
		ÐП		DII
		Consolidated		Parent Entity
	2006	2005	2006	2005
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Fees paid to PwC Australia Fees paid to non-PwC audit firms.	54.197 $\cdots$	-75.042 1.11	-26.207 $\cdots$	37.741
Total remuneration for taxation services	54.197	75.042	26.207	37.741

(c) advisory services

		ÐĦ Consolidated		DIT Parent Entity

	2006	2005	2006	2005

Fees paid to PwC Australia in relation to IFRS project.	2.975	-5.000	2.975	5.000
Fees paid to PwC Australia in relation to the establishment.
of the RENTS sub-trust.	1000
Fees paid to PwC Australia in relation to the Transaction.	1.111	296.529	$\cdots$	296.529
Fees paid to related practices of PwC Australia in relation to
the Transaction		118.057	$\cdots$	118.057
Total remuneration for advisory services	2.975	419.586	2.975	419.586

note 9. current assets - cash and cash equivalents

		ÐĦ		DIT
		onsolidated		Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Cash at bank ¹ .	31.980	トトノ *********	294
Total current assets - cash and cash equivalents	31.980	5.577	31.294	.039

3 DIT cash at bank at 30 June 2006 includes \$28,933,000 held for the purchase of DIT France Logisfique (refer note 37).

	DOT		DOT		DRO		DRO
	Consolidated		Parent Entity		Consolidated		Parent Entity
2006	2005	2006	2005	2006	2005	2006	2005
*********
352.110	263.338	372.910	222.538	237,888	95.000	223.088	88.000
72.165.	70 101	44.946	36.444	$-$		$\cdots$
424.265	333,439	417.856	258,982	237.888	95,000	223.088	88.000

	DOT Consolidated		DOT Parent Entity		DRO Consolidated.		DRO Parent Entity
2006	2005	2006	2005	2006	2005 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	2006	2005
125,272	-84 777	23.690	29.377	65.221	36.543	5.891	4.000
5.700		1.725		$\cdots$		$\cdots$
130,972	84.777	25,415	29.377	65,221	36.543	5.891	4.000

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006	2005	2006	2005 ¢,	2006	2005	2006	2005
2.975	5.000	2.975	5.000		$\cdots$	$\cdots$	$\cdots$
$\cdots$ $\cdots$	252,763 296,529	$\cdots$ $\cdots$	1111 296.529	1000000000000000000000000000000000000 1000000000000000000000000000000000000	$\cdots$	$\cdots$ $\cdots$
$\cdots$ 2.975	118.057 672.349	$\cdots$ 2,975	318.057 419,586	$\cdots$		$\cdots$ www.	$\cdots$

		DOT `onsolidated_		~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ DOT Parent Entity				DRO Parent Entity
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~	2006 \$'000	2005. 37000	2006 \$'000	2005 5'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
********			887	1958	5.814		108
	7127	) ឆ្នោះ	≀ ድድን	7.958	5.814	1.278	108	150

note 10, current assets - receivables

		DIT		DIT
		Consolidated		Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Rent receivable	1,328	1.763	772	1.097
Less: Provision for doubtful debts.	(19)	-(62)	(19)	(62)
Total rental receivables	1,309	1,701	753	1.035
Distribution receivable from controlled entities	--		27.184	30.288
Dividend receivable
Other receivables from controlled entities.		$\cdots$	12.777	17.813
GST receivable	315		716
Interest receivable	$\cdots$		$\cdots$
Receivables from related entities	$\cdots$
Other receivables	1.908	3.375	1.007	1.091
Total other receivables	2,223	1.375	41,684	49.192
Total current assets -- receivables	3,532	3,076	42,437	50,227

other receivables from controlled entities

Other receivables from controlled entities is an inter-entity loan, which is a non-interest bearing loan between the Trust and its controlled entities.

note 11. inventories

	DIT DΠ Parent Entity consolidated.
	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
Land and buildings	$\cdots$		$\cdots$
Work in progress	$\cdots$		$\cdots$
Total inventories	TOP-	TWO	nn.	Total Color

note 12, derivative financial instruments

		DIT Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$'000	2006 \$′000	2005 \$'000
Current assets
Interest rate swap contracts	21.825		21.825
Forward foreign exchange contracts	1,556		1.556.
Total current assets -- derivative financial instruments	23,381		23,381	TOWN.
Current liabilities
Interest rate swap contracts	8.800		8,800
Forward foreign exchange contracts	316		316	$\cdots$
Total current liabilities -- derivative financial instruments	9,116		9,116	TOTAL.
Net current derivative financial instruments	14.265		14,265

Refer note 33 for further discussion regarding derivative financial instruments.

DRO. Parent Entity		DRO. Consolidated		DOT Parent Entity		DOT Consolidated
2005 \$'000	2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000
		15	112 $\cdots$	781 (6)	1,146 (167)	1.458 -(6)	2,300 (167)
		15	112	775	979	1,452	2,133
	---	$\cdots$	$\cdots$	47.336	45,819	$\cdots$	$\cdots$
	4.750	$\cdots$	4.750		$\cdots$	$\cdots$	$\cdots$
		$\cdots$	$\cdots$	42.674	134.487		$\cdots$
	2	38	$\cdots$	95	$\cdots$	348	$\cdots$
1.238	2	1.917	8	$\cdots$	$\cdots$	$\cdots$
	$\ldots$		2,740	1.11	1.11	$\cdots$	$\cdots$
	$\cdots$	$\cdots$	$\cdots$	794	536	1.683	956
1,238	4.754	1,955	7.498	90,899	180.842	2.031	956
1,238	4,754	1.970	7,610	91.674	181,821	3,483	3.089

	DOT hetsiin:		DOT Parent Entity		DRO :nnsalidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006. \$'000	2005. 9000
$\cdots$ $\cdots$	$\cdots$	---- $\cdots$	$\cdots$	$\cdots$ $\cdots$	1 469	$\cdots$ $\cdots$
PAPA	State	-	TOWN.	mm.	48.469	BOW	TOP

DRO. Parent Entity		DRO Consolidated		DOT Parent Entity		DOT Consolidated
2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000 .
	$\cdots$		58,968		25.754		25,754
1.11	$\cdots$		3.205	1.11	$\cdots$		$\cdots$
TITU	WWW	$\mathbf{u}$	62,173		25,754	TOTAL.	25,754
	154	$\cdots$	59,122	$\cdots$	374		374
$\cdots$	$\cdots$		3,205		$\cdots$		$\cdots$
TOTAL.	154	$\mathbf{u}$	62,327		374	TOWN.	374
TIME	(154)		(154)		25,380	WWW	25,380

note 13, current assets - other

		DП Consolidated		DIT Parent Entity
	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000
Prepayments	1.879	1.628.	3.212	1.052
Tenant bonds			$\cdots$
Deferred borrowing costs			$\cdots$	11.91
Net receivable on currency hedge contracts.	$\cdots$	1.121	$\cdots$	1.323
Total current assets - other	1.879	2.749	-212	2.173

note 14. (a) current assets - held for sale investment properties

DIT property	Ownership	Acquisition date	Cost including all additions
	(%)		\$'000
121 Evans Road, Safisbury QLD	100	- & & B 997	16.777
Total DIT held for sale investment properties			16,777

note 14. (b) non-current assets - investment properties

DIT property	Ownership	Acquisition	Cost including
	(% )	date	all additions \$000
Held by parent entity
79-99 St Hilliers Road, Auburn NSW	100	Sep 1997	34,712
3 Brookhollow Avenue, Baulkham Hills NSW	100	Dec 2002	43,171
1 Garigal Road, Belrose NSW	100	Dec 1998	23,340
2 Minna Close, Beirose NSW	100	Dec 1998	34,144
114-120 Old Pittwater Road, Brookvale NSW	100	Sep 1997	33,794
145-151 Arthur Street, Flemington NSW	100	Sep 1997	24,171
436-484 Victoria Road, Gladesville NSW	100	Sep 1997	27,939
1 Foundation Place, Greystanes NSW	100	Dec 2002	39,162
706 Mowbray Road, Lane Cove NSW	100	Sep 1997	22,589
1-15 Rosebery Avenue & 1-55 Rothschild Avenue Rosebery NSW	100	Apr 1998 & Oct 2001	70.506
10-16 South Street, Rydalmere NSW	100	Sep 1997	35,868
19 Chifley Street, Smithfield NSW	100	Dec 1998	11,820
Pound Road West, Dandenong VIC	100	Jan 2004	56,674
352 Macaulay Road, Kensington ViC	100	Oct 1998	7,610
DB RREEF Industrial Estate, Boundary Road, Laverton North ViC.	100	Jul 2002	15,888
250 Forest Road, South Lara ViC	100.	Dec 2002	33.757
15-23 Whicker Road, Gillman SA	100	Dec 2002	19,783
25 Donkin Street South, West End, Brisbane QLD	100	Dec 1998	39,033
Total parent entity			553.959
Held by controlled entities
52 Holbeche Road, Arndell Park NSW	100	Jul 1998	11.296
3-7 Bessemer Street, Blacktown NSW	100	Jan 1997	11,086
30-32 Bessemer Street, Blacktown NSW	100	May 1997	11,844
27-29 Eiberty Road, Hentingwood NSW	100.	Jal 1998	7.971
154 O'Riordan Street, Mascot NSW	100	Jun 1997	10.908
11 Talavera Road, North Ryde NSW	100	3เค 2002	133,005
DB RREEF Industrial Estate, Egenton Street, Silverwater NSW	100	May 1997	36,332
239-251 Woodpark Road, Smithfield NSW	100.	May 1997	5.057
40 Bileela Street, Villaweed NSW	100	งแกรง 1997	6,801
2a Birmingham Street, Villawood NSW	100	Jen 1997	n/a
27-33 Frank Street, Wetherit Park NSW	100	Jal 1998	15,121
114 Fairbank Read, Clayton VIC	100 100	Jul 1997	10,601 13,166
30 Belirick Street, Acacia Ridge QLD 121 Evans Road, Salisbury QLD	100	Jen 1997 Jul 1997	ก/ล
68 Haster Road, Herdsman WA	100	Jul 1998	9,702
Total controlled entities
			282,890
Total DIT investment properties - non-current			836,849

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005	2006 \$'000	2005 \$'000	2006 \$′000	2005 \$'000
2.101	.811	.256	1.015	126	103	$\sim$
	1.111	$\cdots$	1111	20	34	$\cdots$	1111
$\cdots$	.901	$\cdots$	1.901	1000000000000000000000000000000000000	1111	$\cdots$
$\cdots$	99	$\cdots$	99	$\cdots$	1.11	$\cdots$
2.101	3.811	256	3.015	146	137	mm.	MARK

Consolidated book value 30 June 2005 \$'000 .	Consolidated book value 30 June 2006 \$'000	Independent valuer	Independent valuation amount \$'000	Independent valuation date
1111	24,000	{d}	21.000	Dec 2005.
TOMA	24.000		21,000

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,

............

Independent valuation date	Independent valuation amount \$'000	Independent valuer	Consolidated book value 30 June 2006 \$'000	Consolidated book value 30 June 2005 \$'000

3นก 2005	41,000	$\langle d \rangle$	41.749	41.011
Dec 2005	42,400	$\langle \hat{z} \rangle$	43,251	41,753
Dec 2004	27,400	$\langle a \rangle$	31,900	27,400
Dec 2004	32,400	$\langle a \rangle$	33,707	33,119
Jun 2006	45,500	$\langle i \rangle$	45,500	42,638
Jun 2005	31,000	$\langle i \rangle$	34,135	31,000
Dec 2004	43,000	$\langle d \rangle$	48,500	43,182
Jun 2006	46,000	$\langle e \rangle$	46,000	41,905
Jun 2006	26,200	$\langle e \rangle$	26,200	25,923
Dec 2005	92,800	$\left(\begin{smallmatrix} 0\ 1\ 1 \end{smallmatrix}\right)$	93,158	81,013
Jun 2004	42,000	$\langle \hat{y} \rangle$	44,682	42,605
Dec 2005	17,200	(a)	17,499	13,499
3นก 2005	56,250	$\langle c \rangle$	58.000	56,250
Dec 2005	8,900	$\left( g\right)$	8,900	7,300
Jian 2004	23,700	$\langle c \rangle$	17,500	15,888
Jun 2005	34,600	${e}$	40,900	34,600
Jun 2005 Jun 2005	21,300 20,700	$\langle e \rangle$ $\langle \odot \rangle$	24,600	21,300 20,866
			23,614
	652,350		679,795	621,252

Dec 2005	12,500	$\langle d \rangle$	12,500	11,104
Sep 2003	10,100	$\langle 0 \rangle$	10,209	10,202
Jun 2006	17,850	$\langle i \rangle$	17,850	14,540
Jun 2006	9,000	$\langle e \rangle$	9,000	7,300
Jan 2004	13,650	(a)	14,600	13,697
Jun 2006	145,500	$\langle d \rangle$	145,500	134,567
Dec 2005	42,000	$\binom{S}{2}$	43,900	39,601
Jun 2006	6,450	$\langle i \rangle$	6,450	5,756
Jun 2006	8,750 nia	$\langle a \rangle$ $\ddotsc$	8,750	7,019 8,900
n/a Jun 2006	13,200	(a)	$\ddotsc$ 13,200	12,685
Jun 2006	12,800	$\langle c \rangle$	12,800	10,913
Dec 2005	17,375	(e)	18,700	11,919
ങ്	nia	$\cdots$	$\ddotsc$	18,450
Jish 2004	8,000	$\langle e \rangle$	9,500	8,379
	317,175		322,959	315,032
	969,525		1,002,754	936,284

note 14. (b) non-current assets - investment properties (continued)

DOT property

	Ownership	Acquisition date	Cost including all additions
	{%}		\$'000
Held by parent entity
Governor Phillip Tower and Governor Macquarie Tower Office Complex.
1 Farrer Place, Sydney NSW	50	- Dec. 1998	471.719
45 Clarence Street, Sydney NSW	100	Dec 1998	220.863
309-321 Kent Street, Sydney NSW	50	- Dec 1998	162.123
One Margaret Street, Sydney NSW	100	Dec 1998	142.372
Victoria Cross, 60 Millier Street, North Sydney NSW	-100	Dec 1998	88.997
Zenith Centre, 821-843 Pacific Highway, Chatswood NSW	100	Dec 1998	193.068
240 St George's Terrace, Perth WA	100	Jan 2001	240.561
30 The Bond, 30-34 Hickson Road, Sydney NSW	100.	May 2002	118.098
Total parent entity			1,637,801

Held by controlled entities
Southgate Complex, 3 Southgate Avenue, Southbank ViC	-100.	Aug 2000	352.766
O'Connell House, 15-19 Bent Street, Sydney NSW	100	Aug 2000	49.318
201-217 Elizabeth Street, Sydney NSW	50	Aug 2000	313.037
Garema Court, 140-180 City Walk, Civic ACT**	300	Aug 2000	43.379
Australia Square Complex, 264-278 George Street, Sydney NSW	-50	Aug 2000	203.437
Lumley Centre, 88 Shortland Street, Auckland, New Zealand ^s	100	Sep 2005	102.599
Total controlled entities			864,536
Total DOT investment properties -- non-current			2.502.337
. The second compassions in the experiment of the control of the control of the control of the control of a second control of the control of the control of the control of the control of the control of the control of the co

The property was externally valued at N2\$121.600,000 at 31 December 2005 and internally valued at N2\$123.000.000 at 30 June 2006. These valuations have been Iranslated in to Australian dollars at the soot rate on 30 June 2006.

The title to all properties is freehold, with the exception of the properties marked ** which are leasehold.

Valuers

(a) Colliers International

(b) Landmark White

(d) Jones Lang LaSalle

(e) Knight Frank Valuations

(f) FPD Savills

(g) M3 Property

Valuations of investment properties

The basis of valuation of investment properties is fair value, being the amounts for which the assets could be exchanged between knowledgeable willing parties in an arm's length transaction, based on current prices in an active market for similar properties in the same focation and condition and subject to similar feases. Properties independently valued in the last 12 months were based on independent assessments by a member of the Australian Property Institute.

DB RREEF Industrial Trust

Disposals

2a Birmingham Street, Villawood NSW

In December 2005, DIT entered into an agreement for safe of 2a Birmingham Street, Villawood for \$10.3 million. Settlement occurred on 31 May 2006.

1-55 Rothschild Avenue, Rosebery NSW

In February 2005. DIT sold part of Rothschild Avenue. Rosebery. Legal proceedings in relation to interest payable on the settlement. sum were heard in the New South Wales Court of Appeal in March 2006. The appeal was granted in favour of DB RREEF Industrial Trust and settlement monies were received in April 2006.

121 Evans Road, Salisbury QLD

In June 2006, DIT entered an agreement for sale of 121 Evans Road, Salisbury for \$24.0 million. Settlement is expected to occur in August 2006.

Developments

Pound Road West, Dandenong VIC

In December 2005, DIT entered into an agreement for the extension. of L'Oréal Australia Pty Limited's tenancy. Construction of this extension has commenced and completion is expected in August 2006.

DB RREEF Office Trust

Acquisitions

Lumley Centre, Auckland, New Zealand

In September 2005, DOT purchased 88 Shortland Street, Auckland for NZ\$110.4 million (AUD\$100.2 million).

Independent valuation date	Independent valuation amount \$'000	Independent valuer	Consolidated book value 30 June 2006 \$'000	Consolidated book value 30 June 2005 \$'000

Dec 2004	512,500	(e)	575,000	515,328
3เก 2005	195,000	亜	228,000	195,000
Dec 2005	139.250	(a)	165,000	131,655
3เกิ 2005	139,000	(c)	152,000	139,000
Dec 2005	90,000	(f)	95,000	86,805
3นก 2004	216,000	(d)	217,000	223,698
Jun 2006	315,000	$\left( c\right)$	315,000	269,997
Jun 2006	150,000	(e)	150,000	123,655
	1,756,750		1,897,000	1,685,138

*Jun* 2005	361,000	(g)	390,000	361,001
Sep 2004	55,500	$\Theta$	54,400	56,590
Dec 2004	117,000	$\circlede$	122,000	117,190
Jun 2006	52,000	(1)	52,000	44,865
3ชก 2005	184,000	(d)	226,000	184,267
Dec 2005	100.008	(d)	101,173
	869,508		945,573	763,913
	2,626,258		2,842,573	2,449,051

note 14. (b) non-current assets - investment properties (continued)

reconciliation

		DIT Consolidated
	30 June 2006 \$000	30 June 2005 \$'000
Carrying amount at 3 July 2005.	936.284	862.280
Additions	10.736	45.640
Acquisitions	$\cdots$
Transfer from property, plant and equipment		15,888
Transfer to held for sale investment properties	(24.000)
Lease incentives	3,805	6.373
Amortisation of lease incentives	(1.863)	(1.161)
Rent straight-lining	$\cdots$
Disposais	(8.277)	(25.221)
Net gain from fair value adjustments	86.069	32.485
Foreign exchange difference on foreign currency translation
Carrying amount as at 30 June 2006	1,002,754	936,284

note 15. non-current assets - property, plant and equipment

(a) property, plant and equipment

			DIT Consolidated
	Construction in progress	Freehold land and buildings	Total
	\$'000	\$'000	\$7000
2006
Opening balance as at 1 July 2005.	15,107	12,806	27,913
Additions	52,437	$\cdots$	52,437
Depreciation charge
Closing balance as at 30 June 2006	67,544	12,806	80.350
Cost	67,544	12.806	80.350
Accumulated depreciation	$\cdots$	$\cdots$
Net book value as at 30 June 2006	67,544	12,806	80,350
2005
Opening balance as at 1 July 2004	10.894	12,806	23,700
Additions	20,101	$\cdots$	20,101
Transfer from property, plant and equipment	(15,888)	$\cdots$	(15,888)
Closing balance as at 30 June 2005	15,107	12,806	27,913
Cost	15,107	12,806	27,913
Net book value as at 30 June 2005	15,107	12,806	27,913

(b) basis of valuation

Freehold land and buildings are accounted for using the cost method (refer note 1(o)). Construction in progress is recognised at fair value. As at 30 June 2006, the fair value of construction in progress is equal to cost.

(c) non-current assets pledged as security

Refer to note 24 for information on non-current assets piedged as security by the parent entity and its controlled entities.

(d) acquisitions and developments

Boundary Road, North Laverton VIC

In June 2005, DFT entered into agreements to lease and build a major distribution centre for Coles Myer Limited. Construction of this building has commenced and completion is expected in the first quarter of 2007. In February 2006, DIT entered into an agreement to lease and build a warehouse and distribution facility for Wrightson Seeds Australia Eimited. Construction of this building has commenced and completion is expected in the last quarter of 2006.

DOT Parent Entity		DOT Consolidated		DIT Parent Entity
30 June 2005 \$'000	30 June 2006 \$000	30 June 2005 \$'000	30 June 2006 \$'000	30 June 2005 \$'000	30 June 2006 \$000
1,590.042	1,685,138	2,290,951	2,449,051	556,507	621.252
46.668	12.203	67.395	-19,656	38.171	9.216
	$\cdots$		102.599
	$\cdots$		$\cdots$	15.888	$\cdots$
	$\cdots$		$\overline{\phantom{a}}$		$\cdots$
10.085	40,554	13.085	51.968	3.581	2.587
(10,657)	(12.268)	(12.801)	(15, 857)	(180)	(1.011)
6.405	7.678	7.370	9.077		$\cdots$
	$\ddotsc$		$\ddotsc$	(20.832)
42.595	163.695	83.051	236,665	28.117	47.751
	$\cdots$		(10.586)
1,685,138	1,897,000	2,449,051	2,842,573	621,252	679.795

		DIT Parent Entity			DRO Consolidated			DRO Parent Entity
Construction in progress \$'000	Freehold land and buildings \$'000	Total \$'000	Construction in progress \$'000	Freehold land and buildings \$'000	Total \$'000	Construction in progress \$'000	Freehold land and buildings \$'000	Total \$'000
		,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,						RECONSTANTS ON RESERVATION OF A SECOND CONSTANT OF RECONSTANTS OF A SECOND CONSTANTS OF A SECOND CONSTANTS.
15,107	12,806	27,913		$\cdots$			$\ldots$
52,437		52,437		57,495	57,495	63		63
$\cdots$	$\ldots$	$\cdots$		(1,023)	(1,023)	$\cdots$	$\ldots$	$\cdots$
67,544	12,806	80,350	$\sim$	56,472	56,472	63	$\sim$	63
67,544	12,806	80,350		57,495	57.495	63	$\ldots$	63
$\cdots$	$\ldots$		$\cdots$	(1,023)	(1,023)	$\cdots$	$\cdots$	$\cdots$
67,544	12,806	80,350	$\mathbf{a}\mathbf{n}$	56,472	56,472	63	$\mathbf{a}\mathbf{n}$	63

10.894	12,806	23,700			$\cdots$
20,101	$\cdots$	20,101	$\cdots$	1.11	$\cdots$	$\cdots$	$\cdots$
(15.888)	$\cdots$	(15,888)	$\cdots$	$\cdots$	$\cdots$		$\cdots$
15,107	12,806	27,913	$\sim$	$\mathbf{r}$	$\mathbf{w}$	$\overline{\phantom{a}}$	$\sim$	mm.
-15,107	12,806	27,913		$\cdots$	$\cdots$		$\cdots$
15,107	12,806	27.913	$\mathbf{a}$	$\mathbf{w}$	$\mathbf{m}$ .	$\mathbf{v}$	$\mathbf{r}$	$\sim$

note 16, non-current assets -- other financial assets at fair value through profit or loss

Name of entity	Principle activity		Ownership interest
		2006 $( \% )$	2005 (%)
Foundation Macquarie Park Trust	Industrial property investment.	100	-100
Paladin Industrial Trust	Industrial property investment	100	-100
DIT Luxembourg 1 Sarl	Investraent trust	100	-100
DOT Commercial Trust	Commercial property investment	100	-100
DOT NZ Sab-trust No.3.	Commercial property investment	100	300
DOT NZ Sub-trust No.2.	Commercial property investment	100	100
DB RREEF RENTS Tost	Investment trust	$\cdots$
	Total non-current assets -- other financial assets at fair value through profit or loss

Closing balance as at 30 June 2006
Fair value gain
Distributions
Additions
Opening balance as at 3 July 2005

All controlled entities are wholly owned subsidiaries of the Trusts, with the exception of DB RREEF RENTS Trust (RENTS). All units with a beneficial interest in RENTS assets are listed on the Australian Stock Exchange. DOT owns one unit in RENTS that does not have a beneficial interest in the RENTS assets, but holds all voting rights in relation to RENTS.

Both the parent entities and the controlled entities were formed in Australia with the exception of DIT Luxembourg 1 Sart, which was formed in Luxembourg.

note 17. non-current assets -- investments accounted for using the equity method

Investments in associates are accounted for in the consolidated financial statements using the equity method of accounting (refer note 1).

Information relating to these entities is set out below:

Name of entity	Principle activity	Ownership interest		DIT Consolidated
		2006 (%)	2006 \$'000	2005 \$000
Held by parent entity
DB RREEF Industrial Properties, Inc.	Asset, property and funds management	50	-272.400	177.759
DB RREEF Holdings Pty Limited (DRH)	Asset, property and funds management	50	$\cdots$
Held by controlled entities
-2 O'Connell Street Trust	Commercial property investment.	50	$\cdots$
4 O'Connell Street Trust	Commercial property investment	50	$\cdots$
Bligh Street Trust	Commercial property investment	50	$\mathbf{u}$
Total			272.400	177.759

These entities were formed in Australia with the exception of DB RREEF Industrial Properties, Inc. which was formed in the United States.

	DIT		DOT		DRO
	Parent Entity		Parent Entity		Parent Entity
2006 \$'000	2005 \$000	2006 \$000	2005 \$'000	2006 \$000	2005 \$000
186,579	109.376	$\cdots$		$\cdots$
120.459	158,682	$\cdots$		$\cdots$
34		$\cdots$		$\cdots$
		569,287	513,647	$\cdots$
$\sim$		30.759	4.584	$\cdots$
1.1.1.1		31		$\cdots$
1.11		$\cdots$	1.11	$\cdots$
307.072	268,058	600,077	518,232	AND

	DII Parent Entity		DOT Parent Entity
2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$000	2005 \$000
268,058	268,088	518.232	471.387	$\cdots$
34		20.477	4.571	$\cdots$
(27,183)	(30.285)	(45.819)	(47,336)	$\cdots$
66.163	30.255	107,187	89.610	$\cdots$	$\cdots$
307,072	268,058	600.077	518,232	COLUM

	DIT Parent Entity		DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
272.400	177.759			$\cdots$		$\cdots$		$\cdots$
1000000000000000000000000000000000000	1.111	1000000000000000000000000000000000000	1.111	$\cdots$	$\cdots$	15.761	17.166	14.595	14,595
10000		9.701	7.927			$\sim$
10000	$\cdots$	15.197	12.242	$\cdots$	1111	$\cdots$	1111	$\cdots$
10000	$\cdots$	11.902	16.440	$\cdots$		$\cdots$		$\cdots$
272.400	177,759	36,800	36,609		$\mathbf{a}$	15.761	17.166	14,595	14,595

note 17. non-current assets -- investments accounted for using the equity method (continued)

Movements in carrying amounts of investments		DIT
accounted for using the equity method		Consolidated
	2006 \$'000	2005 \$'000
Opening balance as at 1 July 2005	177,759
Interest acquired during the year	34,060	138.033
Share of net profits after tax	83.566	51.521
Distributions/Dividends received	(29.041)	(1.715)
Foreign exchange difference on foreign currency translation	5.157	(10,080)
Adjustment on application of AASB 132 and AASB 139	899
Closing balance as at 30 June 2006	272,400	177,759
Results attributable to associates
Operating profits before income tax	85,179	52.557
Income tax expense
Withholding tax expense	(1,613)	(1.036)
Operating profits after income tax	83,566	51,521
Less: Distributions/Dividends received	(29,041)	(1,715)
	54,525	49,806
Undistributed income attributable to associates
as at 1 July 2005	49,806
Undistributed income attributable to associates
as at 30 June 2006	104,331	49,806
Summary of the performance and financial position of investments accounted for using the equity method
The Trusts' share of aggregate profits, assets and liabilities
of investments accounted for using the equity method are:
Profits from ordinary activities after income tax expense	83.566	51.521
Assets	759,256	630.048
Liabilities	448.286	417.340
Share of associates' expenditure commitments
Capital commitments	1,271	1.171

contingent liabilities of investments accounted for using the equity method

Upon satisfaction of certain conditions, the Stapled Entity may elect to exercise a call option granted to it in relation to the purchase of the remaining 50 percent interest in DRH.

note 18, non-current assets - other financial assets

Name of entity	Principle activity		Ownership interest
		2006 (% )	2005 (% )
Barrack Street Trust	Commercial property investment	100	100
DB RREEF Finance Pty Limited	Financial services	100	100.
Total non-current assets -- other financial assets

reconciliation

Opening balance as at 1 July 2005
Additions

Closing balance as at 30 June 2006

Both the parent entity and the controlled entities were formed in Australia.

DRO Consolidated		DOT Consolidated
2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000
******	***** 17,166	***** 40,234	********* 36,609
14,595	$\cdots$	$\cdots$	$\ldots$
2,571	4,845	(1, 837)	2,433
	(6,250)	(1.788)	(2, 242)

			$\cdots$
17,166	15,761	36,609	36,800

3,333	7,121	(1,837)	2,433
(762) $\cdots$	(2, 276) $\ldots$		$\ldots$
2,571	4,845	(1, 837)	2,433
	(6,250)	(1.788)	(2, 242)
2,571	(1, 405)	(3,625)	191

	2,571	2,613	(1,012)
2,571	1,166	(1,012)	(821)



2,571	4,845	(1,837)	2,433
71,400	74,703	38,261	38,248
54,234	58,942	150	200

	DIT		DOT		DRO
	Parent Entity		Parent Entity		Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
$-$		$-$		99	99
$\cdots$		$\cdots$	1111
nn.	WWW	$\mathbf{a}$	mm.	100	100

....

......
.......

	DIT Parent Entity		DOT Parent Entity		DRO Parent Entity
2006 \$′000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
$\cdots$ $\cdots$	11111	$\cdots$ $\cdots$	1111	100 $\cdots$	100.
Total .	mm.	nm.	TOWN.	100.	100

$\cdots$

note 19, non-current assets -- deferred tax assets

Note(s)		DIT		DIT
		Consolidated		Parent Entity
	2006 \$'000	2005. \$'000	2006 \$'000	2005 \$'000
The balance comprises temporary differences attributable to: Amounts recognised in profit or loss Derivative financial instruments Other			$\cdots$ $\cdots$
Net deferred tax assets	POPU		n _n
Movements
Opening balance as at 1 July 2005.
Change on adoption of AASB 132 and AASB 139.
Credited/(charged) to the Income Statements
Closing balance as at 30 June 2006.

note 20, current assets - loans and receivables

	DII Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Loan notes receivable from DB RREEF Holdings Pty Limited Total current assets - loans and receivables	$-1$ nn.	1111 mn.	$\cdots$ TOWN.	nn.

DRH issued an equal amount of corporate bonds to its two owners - FAP and DRO, in order to fund its 100 percent acquisition of DB RREEF Funds Management Limited (the Responsible Entity of DRO). FAP is a wholly owned subsidiary of Deutsche Bank AG, a related party to the Stapled Entity. These bonds are 20 years in duration and yield 11 percent per amum.

note 21. Ibans with related parties

	DIT Consolidated			DIT Parent Entity
	2006 \$'000	2005 \$1000	2006 \$000	2005 \$000
Current assets - loans with related parties
Non-interest bearing loans with the Trusts!	138.948	138.948	138,948	138.948
Total current assets - loans with related parties	138.948	138.948	138.948	138.948
Non-current assets - loans with related parties Intercompany foan?		1.234	$\cdots$	1.234
Total non-current assets - loans with related parties		1.234	TOM:	1.234
Current liabilities - loans with related parties
Non-interest bearing loans with the Trusts ¹			$\cdots$
Total current liabilities - loan with related parties

3 The non-interest bearing foans with the Trusts were created to effect the stapling of DDF, DFT, DOT and DRO.

2 The intercompany toan represents a loan with DB RREEF Finance Pty Limited. These toans are callable on demand with a final maturity date of 28th June 2015. The average interest rate for the year was 5.93 percent.

note 22, non-current assets - other

		DIT		DIT
		Consolidated		Parent Entity
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Tenant and other bonds	717	1.077	575	940
Net receivable on currency hedge contracts.		3.032	$\cdots$	3.032
Other	125.		124
Total non-current assets -- other	842	4.109	699.	3.972

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$000	2005 \$'000

1.1.1.1		$\cdots$	1.111	46		46
1.1.1.1	$\cdots$	$\cdots$	$\cdots$	70	127	-62	16
TITU	$\sim$		mm/	116	127	108	16

$\cdots$		$\cdots$		327		-16
		$\cdots$		196		196
		$\cdots$		(207)	127	(104)	16
ww	$\overline{a}$		TOW-	116	127	108	16

	DOT		DOT Parent Entity	DRO iated			DRO Parent Entity
2006 \$'000	2005 '000	2006 000	2005 '000	2006 000	2005 '000	2006. '000	2005 '000
$\cdots$ POPU	TOW-	$-$ nn.	1.111 TOWN.	45.092 45.O92.	45.092. 45.092.	.092 . nas	.092 ഭാ

. . . . . . . . . . . .

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
$\cdots$		$\cdots$		$\cdots$		$\cdots$
www.	$\overline{\phantom{a}}$	$\mathbf{w}$	$\mathcal{L}_{\mathcal{F}}$	ww	$\sim$	www.	55
181.840	207.354	181.840	207.354	1.382.250	713.276	59,534	47.855
181,840	207,354	181,840	207,354	1,382,250	713,276	59,534	47,855
55,684	55,684	55.684	55.684	48,932	48.932	48,932	48,932
55,684	55,684	55,684	55.684	48,932	48,932	48,932	48,932

	DOT Consolidated	DOT Parent Entity		DRO Consolidated			DRO Parent Entity
2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000 --------------------	2005 \$'000
352	670	247	480	1.1.1.1	1111	$\cdots$
$\cdots$ 589	287	$\cdots$ 588	1.111 287	1000000000000000000000000000000000000 $\cdots$	1111 1.111	$\cdots$ $\cdots$	$\cdots$ 1.11
941	957	835.	767	month.	$\sim$	mm.	WWW

note 23. current liabilities -- payables

		DIT		DП
		Consolidated		Parent Entity
	2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000
Trade creditors	-4.407	3.531	2.606	2.678
Accruais	1.586	1.514	1.416	1.297
Amount payable to minority interest	$\overline{\phantom{a}}$
Accrued capital expenditure			$\cdots$
Prepaid income	2.645	2.737	2.280	2.192
Responsible Entity fee payable	580	545	580	545
GST payable		819	$\cdots$	495
Accrued interest	1,257	1.313	1.257	1.313
Other	34	1.111	34	1.111
Total current liabilities -- payables	10.509	10.459	8.173	8.520

note 24. interest bearing liabilities

current

	DIT Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Secured
Commercial paper	$\cdots$	118.338	$\cdots$	118,338
Commercial mortgage backed securities	$\cdots$	236,000	$\cdots$	-236,000
Total secured	$\mathbf{m}$	354,338	TOTAL	354.338
Unsecured
Bank foans			$\cdots$
Total unsecured	$\mathbf{m}$	$\mathbf{w}$	TIME.	$\mathbf{m}$
Deferred borrowing costs	$\cdots$	1.111	$\cdots$
Total current liabilities -- interest bearing liabilities		354,338	TIME	354,338

non-current

	DIT Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Secured Commercial paper Commercial mortgage backed securities	$\cdots$ $\cdots$		$\cdots$ $\cdots$	1.11
Total secured	w	www.	$\overline{a}$	n ₀
Unsecured Commercial notes Bank loans Intercompany ioan ¹	$\cdots$ $\ddotsc$ 583,838	132.199	$\cdots$ $\overline{\phantom{a}}$ 583,838	132,199
Total unsecured	583,838	132,199	583,838	132,199
Deferred borrowing costs	(43)	(349)	(43)	(349)
Total non-current liabilities -- interest bearing liabilities	583.795	131,850	583,795	131,850

3 The intercompany loan represents a loan from DB RREEF Finance Pty Limited to DFT, DOT and DRO.

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$000	2005 \$000	2006 \$'000	2005 \$'000
8,141	-6.899	5.087	-4,896	33	163	$\cdots$
2.223	-2.790	2.095	2.371	844	1.101	197	59.
3,509		$\cdots$	$\cdots$	$\cdots$	1.11	---
$\cdots$		$\cdots$		49		---
3,330	3.972	4.490	5.608	101	393
1.019	-915	704	626	$\cdots$		$\cdots$
1.105		140		245		$\overline{\phantom{a}}$
9.697	9.474	9.697	9.474	6.549	2.368	-61	184
$\cdots$	1.111	1.1.1.1	1.111	$\cdots$	$\cdots$	$\cdots$
29.024	24,050	22,213	22.975	7.821	4.025	258	243

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$000
$\cdots$	1.111	$\cdots$		$\cdots$		$\cdots$
$\cdots$	700	$\sim$		--- -	TOP	$\cdots$ mm.
$\cdots$		$\cdots$		217,000		$\cdots$
mm.	T/T			217,000		$\sim$
$\cdots$		$\cdots$		(296)		$\cdots$
mm.	TIME			216,704		mm.

	DOT. Consolidated		DOT. Parent Entity		DRO. Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000
452.449 500.000	452.449 500,000	452.449 500.000	452.449 500,000	$1 - 1$ $\cdots$		$\cdots$ $\cdots$
952.449	952,449	952,449	952.449	www.	$\overline{ }$	www.	MAG
$\cdots$		$\cdots$	$\cdots$	269.070	261,780	$\cdots$
$\cdots$ 91,372	$\cdots$	$\cdots$ 91.372	$\cdots$	772.980 181.840	292.618 208.589	58.891	51,303
91.372	TOTAL	91.372	$\mathbf{w}$	1.223.890	762.987	58.891	51,303
(1,337)	$\cdots$	(1.337)		(867)		$\cdots$
1,042,484	952,449	1,042,484	952.449	1,223,023	762,987	58,891	51,303

note 24, interest bearing liabilities (continued)

financing arrangements

		DIT		DIT
		Consolidated		Parent Entity
	2006 \$'000	2005 \$000	2006 \$000	2005 \$'000
The Trusts have access to the following lines of credit: Borrowing facilities
Commercial paper		124,900	$\cdots$	124.900
Commercial mortgage backed securities	$\sim$	236,000		236.000
Commercial notes
Baak leans			$\cdots$
		360,900	www.	360.900
Bank guarantee facility utilised at balance date
Used at batance date by DB RREEF Industrial Properties, Inc.
Used at balance date	$\cdots$	354.338	$\cdots$	354.338
Unused at balance date		6,562		6,562

fair value

		DIT		DIT
		Consolidated		Consolidated
	2006 Carrying amount	2006 Fair value	2005 Carrying amount	2005 Fair value
	\$'000	\$'000	\$'000	\$000
The carrying amounts and fair values of borrowings at balance date are:
Commercial paper		$\cdots$	118,338	118.338
Commercial mortgage backed securities		1.1.1.1	236.000	236,000
Commercial notes	10000	1.1.1	1.111
Bank leans	$\cdots$	$\cdots$
	TOMA	$\sim$	354.338	354.338

None of the classes of borrowings are readily traded on an organised market in standardised form. Fair value is inclusive of cost which would be incurred on settlement of a liability. The fair value of borrowings is based upon market prices where a market exists or by discounting the expected future cash flows by the current interest rates for liabilities with similar risk profiles.

hank loans

DB RREEF Finance Pty Limited, a wholly-owned subsidiary of DRO, has syndicated bank debt facilities which comprises of a \$300 million multi-currency revolving credit facility maturing in September 2007, a \$300 million multi-currency revolving credit facility maturing in September 2006 and a US\$210 million. (\$282.524 million) multi-currency revolving credit facility maturing in September 2007, in addition. DB RREEF Finance Pty Limited entered into bi-lateral bank debt facilities in December 2005 mainly. to refinance DB RREEF Industrial Trust's asset backed commercial paper and commercial mortgaged backed securities. The facilities include a total of \$360 million multi-currency revolving credit. facilities maturing in December 2010 and a total of \$100 million multi-currency revolving credit facilities maturing in December 2006. of which \$5 million is utilised as a bank guarantee facility for the Coles Myer development (refer note 34). These bank debt facilities are supported by the Stapled Entity guarantee arrangements. These facilities have negative pledge provisions which limit the amount and type of encumbrances that the Stapled Entity can have over its assets and ensures that all senior unsecured debt ranks pari passu.

DB RREEF industrial Properties, Inc may only borrow under the US\$210 million multi-currency revolving credit facility and up to a total of A\$240 million of the total A\$360 million multi-currency revolving credit facilities.

The current debt facilities will be refinanced as at/or prior to their materity. Subsequent to 30 June 2006, DB RREEF Finance Pty-Eimited established a Medium Term Note/Commercial Paper Programme, supported by the Stapled Entity guarantee arrangements. On 4 August 2006, DB RREEF Finance Pty Limited issued \$250 million of unsecured medium term notes, maturing in February 2010, in addition, negotiations on the near term maturing facilities are well advanced. This together with the unused borrowing facilities provides adequate funding.

commercial notes - US private placement market

DB RREEF Finance Pty Limited has on issue US\$200 million. (\$269.070 million) of notes which were privately placed with investors on terms to maturity ranging from December 2011. to March 2017.

These notes are supported by the Stapled Entity guarantee. arrangements. These notes have negative pledge provisions which limit the amount and type of encumbrances that the Stapled Entity can have over its assets and ensures that all senior unsecured debt ranks pari passu.

DRO. Parent Entity		DRO Consolidated		DOT Parent Entity		DOT Consolidated
2005 \$'000	2006 \$'000	2005 \$′000	2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$000

	$\cdots$		$\cdots$	453.300	453.300	453.300	453,300
			$\cdots$	500.000	500.000	500.000	500,000
1111		261.780	269.070	$\cdots$	$\cdots$	1000	$\cdots$
1.11	$\cdots$	874.869	1.342.524	$\cdots$	$\cdots$	1.11	$\cdots$
$\mathbf{m}$	$\blacksquare$	1,136,649	1,611,594	953,300	953,300	953,300	953,300
	$\cdots$		5.000		$\cdots$		$\cdots$
	$\cdots$	263.089	52,469		$\cdots$	1.111	$\cdots$
	$\cdots$	554.398	1,259,050	952.449	952.449	952.449	952.449
ma.		319,162	295,075	851	851	851	851

	DOT		DOT		DRO		DRO
	Consolidated		Consolidated		Consolidated		Consolidated
2006 Carrying amount	2006 Fair value	2005 Carrying amount	2005 Fair value	2006 Carrying amount	2006 Fair value	2005 Carrying amount	2005 Fair value
\$'000	\$'000	\$'000	\$000	\$'000	\$'000	\$000	\$000
452.449	452.449	452.449	452.449		$\cdots$
500.000	500.668	500.000	504.043
	$\cdots$			269,070	255.739	261.780	267.941
$\cdots$	$\cdots$			989.980	989.980	292.618	292,618
952,449	953.117	952.449	956.492	1.259.050	1.245.719	554.398	560.559

commercial paper and commercial mortgage backed securities

DB RREEF Office Trust (DOT) has fiabilities resulting from the issuance of \$452.4 million (facility limit of \$453.3 million) asset backed commercial paper (CP) and \$500 million commercial mortgage backed securities (CMBS). The CMBS has an anticipated maturity date of April 2009. The CP and CMBS are both secured by mortgages over nine investment properties of DOT with a total value of \$2,242 million as at 30 June 2006.

note 25, current liabilities - provisions

		DIT		DIT
		Consolidated		Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$7000

Current
Provision for distribution.
Opening balance as at 1 July 2005.	39.615	27.058	39.615	27.058
Additional provisions	61,268	66.362	61.268	66.362
Payments and reinvestment of distributions	(69,770)	(53.805)	(69.770)	(53.805)
Closing balance as at 30 June 2006	31,113	39.615	31.113	39.615

Provision is made for distributions to be paid for the period ending 30 June 2006 payable on 29 August 2006.

note 26. current liabilities - other

www.www.www.www.www.www.www.www.www.ww
		DN		DĦ
		Consolidated		Parent Entity
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~	2006 \$000	2005 \$'000	2006 \$000	2005 \$'000
Deferred gain on currency hedge contracts Tenant bonds	$\cdots$	121 1111	$\cdots$ $\cdots$	-3:23 1111
Total current liabilities -- other		l.121	nm.	1.121

note 27, non-current liabilities - deferred tax liabilities

		DIT Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
The balance comprises temporary differences attributable to: Amounts recognised in profit or loss.
Other	$\cdots$		$\cdots$
Total non-current liabilities -- deferred tax liabilities	$\mathbf{v}$	TIME	WW	$\mathbf{v}$
Movements Opening balance as at 1 July 2005.	$\cdots$		$\cdots$
Credited/(charged) to the Income Statements	$\cdots$		$\cdots$
Closing balance as at 30 June 2006

note 28, non-current liabilities - other

		DN		DIT
		Consolidated		Parent Entity
	2006 \$000	2005 \$000	2006 \$'000	2005 \$'000
Tenant bonds		LO76.	575	941
Deferred gain on currency hedge contracts	$\cdots$	3.032	$\sim$	3.032
Other	$-$			1111
Total non-current liabilities -- other	717	4.108	575	3.973

	DOT Consolidated		DOT Parent Entity		DRO. Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000

35.517	52.810	35,517	52,810	1.912	$\cdots$	1.912
138,302	85.916	138.302	85.916	$\cdots$	1.912	$\cdots$	1,912
(103, 587)	(103.209)	(103,587)	(103.209)	(1,912)		(1.912)	1111
70,232	35,517	70.232	35,517	$\overline{a}$	1,912	MAY	1.912

		DOI lonsolidated		DO Parent Entity	DRO sofiriated			ЭRС Parent Entity
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
	--		$\cdots$	1111	$\cdots$		$-$	1111
	$\cdots$		$\cdots$	1.111			$\cdots$	1.111
		State	MARK	n.	20			me.

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000

$100 - 100$		$\cdots$		74	48
T/T	$\mathbf{a}$	74	mm.	74	48		$\mathbf{m}$

10.000		$\cdots$		48
		$\cdots$	1.11	26	48
TOTAL.	$\overline{a}$			74	48		$\mathbf{a}$

DRO Parent Entity	DRO Consolidated		DOT Parent Entity		DOT Consolidated
2005 2006 \$'000 \$'000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000
********* $\cdots$	1111	$\cdots$	480.	247	670.	352
$\cdots$	1111			$\cdots$	1111	1000
	1000	$\cdots$	4 133	2.078	24	cs ca
ma. $\sim$	mn.		4 G11	2.325	694	374

note 29, contributed equity

(a) contributed equity of equity holders of the parent entity

		DIT Consolidated
	2006 \$'000	2005 \$'000
Opening balance as at 1 July 2005.	668.995	502.793
Placement of units	$\cdots$	10.770
Issue of units	$\cdots$	331,559
Issue of units to staple	$\cdots$
Capital distribution/(consolidation) to staple	$\cdots$	(205.663)
Distributions reinvested	20,289	-29.634
Cost of distributions reinvested	$\langle 4 \rangle$	-(98)
Closing balance as at 30 June 2006	689.280	668.995

(h) number of securities on issue

		DIT Consolidated
	2006 Number of securities	2005 Number of securities
Opening balance as at 1 July 2005.	2.732.082.389	338,230,559
Placement of units	$\cdots$	41.521.457
Issue of units to staple.	$\cdots$	2.072.241.677
Settlement of trust	$\cdots$
Redemption of settlement units	$\sim$
Capital split/(consolidation) to staple securities.		173.033.512
Distributions reinvested	70.127.004	107,055,184
Closing balance as at 30 June 2006.	2,802,209,393	2,732,082,389

terms and conditions

Each stapled security ranks equally with all other stapled securities for the purposes of distributions and on termination of the Trusts. Each stapled security entities the bolder to one vote, either in person or by proxy, at a meeting of each of the Trusts.

distribution reinvestment plan

Under the distribution reinvestment plan (DRP), stapled security holders may elect to have all or part of their distribution entitlements satisfied by the issue of new stapled securities, rather than being paid in cash.

DIT

On 29 August 2005, 33,705,917 units were issued at a unit price of \$0.2784 in relation to the June 2005 distribution period. On 28 February 2006, 36,421,087 units were issued at a unif price of \$0.2994 in relation to the December 2005 distribution period.

DOT

On 29 August 2005, 33,705,917 units were issued at a unit price of \$0,5964 in relation to the June 2005 distribution period. On 28 February 2006, 36,421,087 smits were issued at a unit price of \$0.5452 in relation to the December 2005 distribution period.

DRO

On 29 August 2005, 33,705,917 units were issued at a unit price of \$0.0031 in relation to the June 2005 distribution period. On 28 February 2006, 36,421,087 units were issued at a unit price of \$0.0043 in relation to the December 2005 distribution period.

	DOT.		DRO
	Consolidated		Consolidated
2006 \$000	2005 \$'000	2006 \$'000	2005 \$000
1,359,854	1,365,325	5.540
$\cdots$	22.517	$\cdots$
$\cdots$	1,000	$\cdots$	83
$\cdots$	302,826	$\cdots$	5.168
$\cdots$	(387, 235)	$\cdots$
39.959	56.608	261	289.
(7)	(187)	$\cdots$
1,399,806	1,359,854	5,801	5.540

DRO Consolidated		DOT Consolidated
2005 Number of securities	2006 Number of securities	2005 Number of securities	2006 Number of securities
	2,732.082.389	1.148.052.162	2,732,082.389
41.521.457	$\cdots$	41.521.457	$\cdots$
2,583,842,392	$\cdots$	1,514,131,505	$\cdots$
10	$\cdots$		$\cdots$
(10)	---		$\cdots$
	--	(78, 341, 275)	$- -$
106,718,540	70.127.004	106,718,540	70.127.004
2,732,082,389	2,802,209,393	2,732,082,389	2,802,209,393

note 30, reserves and undistributed income

(a) reserves

		DIT Consolidated		DIT Parent Entity

	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
Foreign currency translation reserve	765	(649)	$\cdots$	$\cdots$
Total reserves	765	(649)	$\blacksquare$
Movements:
Foreign currency translation reserve
Opening balance as at 1 July 2005.	(649)
Exchange difference arising from the translation of the
financial statements of foreign operations.	1.414	(649)	$\cdots$
Total movement in foreign currency translation reserve	1,414	(649)	$\overline{a}$	$\sim$
Closing balance as at 30 June 2006.	765	(649)

(b) nature and purpose of reserves

Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign operations.

(c) undistributed income

		DIT Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Undistributed income as at 1 July 2005.	87.812	39.466	87.163	39.466
Net profit attributable to cratholders.	227.508	314.708	229.821	114.059
Transfer to capital reserve of minority interest.			$- - -$
Distributions provided for or paid	(61.268)	(66.362)	(61.268)	(66.362)
Adjustment on adoption of AASB 132 and 139-	719		(180)
Undistributed income as at 30 June 2006	254.771	87.812	255,536	87,163

note 31. minority interests

$\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\$
		DĦ Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$7000	2006 \$'000	2005 \$'000
Interest in
Contributed equity	$\cdots$		$\cdots$	$\cdots$
Reserves	$\cdots$		$\cdots$
Undistributed income	$\cdots$	$\cdots$	$\cdots$
Total minority interests			$\mathbf{a}$	me.

On 15 June 2005, DB RREEF Funds Management Limited in its capacity as Responsible Entity of DB RREEF RENTS Trust issued 2,040,000 preference units with a face value of \$100 each on the ASX. The securities, known as RENTS, entitle holders to receive non-cumulative quarterly floating rate distributions at a margin of 130 basis points above the 90 day bank bill rate. RENTS may be exchanged for cash or stapled securities on 30 June 2012 (the Step-up Date). For each distribution period following the Step-up Date, the margin will increase by a once only step-up of two percent per annum unless RENTS are repurchased or exchanged.

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$000	2005 \$000	2006 \$1000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000
(1,326)	38	$\cdots$	$\cdots$	$\cdots$	$\cdots$	$\cdots$
(1, 326)	38						$\mathbf{u}$

38				$\cdots$		$\cdots$
(1,364)	38	$\cdots$		$\cdots$
(1, 364)	38			And	TVW	nn.
(1, 326)	38			e en l			me.

	DOT Consolidated		DOT Parent Entity			DRO Consolidated Parent Entity
2006 \$'000	2005 \$'000	2006 \$7000	2005 \$'000	2006 \$000	2005 \$000	2006 \$'000	2005 \$'000
89.330	17.790.	83.048	10.611	2.968		196
376.624	157.456.	361.734	158.353	7.283	4.880	9.351	2.108
(16.014)		$\cdots$
(138, 302)	(85.916)	(138.302)	(85,916)	$\cdots$	(1.912)	$\cdots$	(1.912)
(2.128)		(2.128)		(455)		(455)
309.510	89.330	304.352	83.048	9.796	2.968	9.092	196

	DOT DOT Consolidated Parent Entity			DRO Consolidated	DRO. Parent Entity
2006 \$000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000
197,705	197.886	---				$\cdots$
16.014		$\cdots$				$\cdots$
(9,656)	639.	$\cdots$	1.11	$\cdots$		$\cdots$
204.063	198.505	$\overline{a}$	TOWN.	TOW-		TOWN.	--

note 32, distributions paid and payable

(a) distribution to security holders

********
		DIT		DII
	Consolidated		Parent Entity
	2006 \$'000	2005 \$7000	2006 \$'000	2005 \$'000
$. A334154814848148148148148148148148148148148148$ -31 December (paid 28 February 2006)	30.155	26.747	****** 30.155	26.747
-30 Jane (payable 29 August 2006)	31 113	39.615	31.113	39.615
Total distributions	61,268	66.362	61.268	66.362

(b) distribution to minority interests

	DIT Consolidated			DIT
			Parent Entity
	2006 \$'000	2005 \$000	2006 \$000	2005 \$000
DB RREEF RENTS Trast (paid 17 October 2005).	$\cdots$
DB RREEF RENTS Trast (paid 17 January 2006).	$\cdots$
DB RREEF RENTS Trust (paid 21 April 2006).	$\cdots$
DB RREEF RENTS Trust (paid 17 July 2006).	$\cdots$

Total distributions	61.268	66.362	61.268	66.362

(c) distribution rate

		DIT Consolidated		DIT Parent Entity
	2006. Cents per unit	2005 Cents per unit	2006 Cents per unit	2005 Cents per unit
31 December (paid 28 February 2006)	1.09	1.02	1.09	1.02
30 June (payable 29 August 2006).	1.11	1.45	1.11	3.45
Total distributions	2.20	2.47	2.20	2.47
Distribution to minority interests DB RREEF RENTS Trast (paid 17 October 2005) DB RREEF RENTS Trast (paid 17 January 2006). DB RREEF RENTS Trast (paid 21 April 2006). DB RREEF RENTS Trust (paid 17 July 2006).			$\cdots$
Total distributions				7.7%

(d) franked dividends

The franked portions of the final dividends recommended after 30 June 2006 will be franked out of existing franking credits or out of franking credits arising from the payment of income tax in the year ending 30 June 2006.

		DIT		DĦ
	Consolidated			Parent Entity
	2006	2005	2006	2005
	\$'000	\$'000	\$'000.	\$'000

Franking credits
Opening balance as at 1 July 2005.	$\cdots$
Franking credits arising during the year on payment of tax at 30 percent.	$-$
Franking debits arising from payment of interim dividend	$-$
Closing balance as at 30 June 2006

	DOT Consolidated		DOT Parent Entity			DRO Consolidated	DRO Parent Entity
2006	2005	2006	2005	2006	2005	2006	2005
\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$1000	\$'000
68.070.	50.399	,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 68.070	50.399	$\cdots$	1111	$\cdots$	,,,,,,,,,,,,,,,, 1111
70.232	35.517	70.232	35.517	$\cdots$	1.912	$\cdots$	.912
138.302	85.916	138.302	85.916	$\sim$	1.912	$\mathbf{m}$	.912

DRO Parent Entity		DRO. Consolidated		DOT Parent Entity		DOT Consolidated
2005 \$000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000
	$\cdots$		$\cdots$		$\cdots$	$\cdots$	4,223
	$\cdots$		$\cdots$		$\cdots$	1111	3,566
	$\cdots$	1.11	$\cdots$	1.111	$\cdots$		3,488
	$\cdots$	$\cdots$	$\cdots$	1.111	$\cdots$		3.509
		$\mathbf{m}$	$\sim$	$-$			14.786
.912		1.912		85.916	138.302	85.916	153,088

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 Cents per unit	2005 Cents per unit	2006 Cents per unit	2005 Cents per unit	2006 Cents per unit	2005 Cents per unit	2006 Cents per unit	2005 Cents per unit
2.46	1.92	2.46	1.92	$\cdots$	$\cdots$	$\cdots$
2.51	1.30	2.51	1.30	$\cdots$	0.07		-0.07
4.97	3.22	4.97	3.22	$\sim$	0.07	$\overline{a}$	0.07

207.00		$\cdots$		$\ddotsc$	$\cdots$
175.00		$\cdots$		$\cdots$
171.00		$\cdots$		$\cdots$	$\cdots$
172.00		$\cdots$		$\cdots$	$\cdots$	$\cdots$
725.00	$\sim$	$\sim$	$\mathbf{r}$	$\mathbf{v}$	www.	$\mathbf{a}$

	DOT Consolidated		DOT Parent Entity			DRO Consolidated	DRO. Parent Entity
2006 \$000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000
$\cdots$		$\cdots$	$\cdots$	1.1.1.1		$\cdots$
$\cdots$	1.111	$\cdots$		1.069.	1.11	921
$\cdots$	1111	1.11		(574)	1111	(574)
$\sim$	$\sim$			495		347	www.

note 33. financial risk management

DB RREEF Industrial Trust

The Trust's activities expose it to a variety of financial risks: credit risk, market risk (including currency risk, fair value interest rate risk and price risk). Iguidity risk and cash flow interest rate risk. The Trust's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Trust. Accordingly, the Trust enters into various derivative financial instruments to manage its exposure to the movements in interest rates and foreign exchange rates. There are policies and limits approved by the Board of Directors of the Responsible Entity in respect of the usage of derivatives and other financial instruments to hedge those cash flows and earnings which are subject to interest rate risks and foreign currency risk respectively. In conjunction with its advisers, the Responsible Entity continually reviews the Trust's exposures and updates its treasury policies and procedures. The Trust does not trade in derivative instruments for speculative purposes.

(a) Credit risk

Concentrations of credit risk are minimised primarily by:

ensuring tenants, together with the respective credit limits, are $\mathcal{U}$ approved and ensuring that leases are undertaken with a largenumber of tenants: and
ensuring derivative counterparties and cash transactions are $\mathcal{U}$ limited to high credit quality financial institutions. The Trust has policies that limit the amount of credit exposure to any one financial institution. Credit risk is further minimised by spreading transactions amongst the approved counterparties.

As such, the Trust does not have a concentration of credit risk that arises from an exposure to a single tenant or financial institution. Furthermore, the Trust does not have a material exposure to a group of counterparties which are expected to be affected similarly by changes in economic or other conditions.

On-balance sheet financial instruments

The credit risk on financial assets of the Trust which have been recognised in the Balance Sheets is the carrying amount.

(b) Market risk

(i) Foreign exchange risk

Foreign exchange risk is the risk that movements in exchange rates. used to convert foreign currency revenues, expenses, assets, or liabilities to the Trust's functional currency will have an adverse effect on the Trust.

The Trust operates internationally with investments in the United States and is exposed to foreign exchange risk arising from currency exposures in US dollars.

Forward contracts are used to manage foreign exchange risk.

(ii) Fair value interest rate risk

Refer to (d) below.

(iii) Price risk

This is the risk that the value of the Trust's investment portfolio will fluctuate as a result of changes in valuations. This risk is managed by ensuring that all activities are transacted in accordance with mandates, overall investment strategy and within approved limits. Market risk analysis is conducted regularly on a total portfolio basis.

On-balance sheet financial instruments

The net fair value of cash and non-interest bearing monetary financial assets and liabilities approximate their carrying value.

(c) Liouidity risk

Eiguidity risk is the risk that the Trust will experience difficulty in either realising assets or otherwise raising sufficient funds to satisfy commitments. The risk management goldelines adopted are designed to minimise liquidity risk through maintaining sufficient. cash balances and the availability of funding through an adequate amount of committed credit facilities.

(d) Cash flow and fair value interest rate risk

Interest rate risk for the Trust arises from its borrowings. Borrowings issued at variable rates expose the Trust to cash flow interest-rate risk. Borrowings issued at fixed rates expose the Trust to fair value interest rate risk.

A portfolio approach to interest rate risk management is adopted whereby generally any fixed rate debt is converted into floating rate exposure via fixed-to-floating interest rate swaps. This mitigates fair value interest rate risk. The Trust then manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Under the interest-rate swaps, the Trust agrees with other parties to exchange, at specified intervals (mainly quarterly), the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional principle amounts.

Fixed debt and swaps currently in place cover approximately 86 percent (2005: 106 percent) of the loan principle outstanding, with a further \$716,000 (2005: \$250,000) of swaps that are forward starting.

The Trust's exposure to interest rate risk is hedged with interest rate swaps and the weighted average effective interest rate. (for each class of financial asset and financial fiability, and each maturity bracket including floating rate financial assets and liabilities). is set out in the following table.

30 June 2006

Consolidated					Fixed interest maturing in:
	Note(s)	Floating interest rate	I year or less	Over 1 and less than 2 years	Over 2 and less than 3 years	Over 3 and less than 4 years	Over 4 and less than 5 years	More than 5 years	Total
		\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Financial assets Cash and cash equivalents	9	31,980							31.980
Total		31,980	$\overline{a}$	NV	ww	m	$\mathbf{v}$		31,980
Weighted average interest rate		5.75%
Financial liabilities interest bearing
liabilities interest rate swaps ¹	24	459.393 (376.688)	200,000		67.000	164.133	$\cdots$	124.445 (54.445)	583,838
Forward start interest rate swaps ³ Forward start interest			(353.083)		(135,000)	(106, 283)	(21,400)	(100,000)	(715.766)
rate swaps maturities ³					50,000		42.801	622,965	715,766
Total		82.705	(153.083)	$\sim$	(18.000)	57,850	21,401	592,965	583,838
Weighted average interest rate (including swaps)		5.69%	5.49%	5.48%	5.56%	5.74%	5.90%	4.56%
Net financial (liabilities)/assets		(50,725)	153,083	m	18,000	(57,850)	(21,401)	(592, 965)	(551.858)

30 June 2005

Consolidated					Fixed interest maturing in:
	Note(s)	Floating interest rate	I year or less	Over 1 and less than 2 years	Over 2 and less than 3 years	Over 3 and less than 4 years	Over 4 and less than 5 years	More than 5 years	Total
		\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Financial assets Cash and
cash equivalents Loans with	9	5.577							5.577
related parties	21	1,234						$\cdots$	1.234
Total		6.811	$\overline{a}$	$\mathbf{u}$	$\overline{\phantom{a}}$	$\overline{a}$	$\overline{\phantom{a}}$	$\mathbf{r}$	6,811
Weighted average interest rate		4.52%
Financial liabilities interest bearing
liabilities	24	265.464	100,000					121.073	486,537
interest rate swaps ³ Forward start interest		(293, 613)	(45,000)		$\cdots$	300,000	159.686	(121.073)
rate swaps ^\$ Forward start interest				(199.267)			(51.047)	$\cdots$	(250.314)
rate swaps maturities ^s							$\cdots$	250,314	250,314
Total		(28, 149)	55,000	(199, 267)	$\overline{\phantom{a}}$	300,000	108.639	250,314	486,537
Weighted average interest rate (including swaps)		5.70%	5.46%	5.49%	5.47%	5.38%	5.66%	5.94%
Net financial (liabilities)/assets		34,960	(55,000)	199,267	w	(300,000)	(108, 639)	(250.314)	(479.726)

Notional principle amounts.

note 33. financial risk management (continued)

DB RREEF Industrial Trust (continued)

(e) Foreign exchange rate risk exposures

When hedging its exposures, the Trust adopts a strategy using both physical and derivative financial instruments. In regard to derivative financial instruments, the Trust uses forward exchange contracts for hedging purposes.

30 June 2006

Weighted average exchange rate	Contracts to sell US\$ at an agreed exchange rate:
	l vear or less	Over 1 and less than 2 years	More than 2 years
To pay US\$ million			13
To receive A\$ million	12		18
Weighted average exchange rate	0.7086	0.7015	0.7046

Weighted average exchange rate		Contracts to sell $C$ at an agreed exchange rate:
	1 vear or less	Over 1 and less than 2 years	More than 2 years
To pay $\epsilon$ million	18
To receive A\$ million	30		Б.
Weighted average exchange rate	0.5839	0.5626	0.5402

30 June 2005

Weighted average exchange rate		Contracts to sell US\$ at an agreed exchange rate:
	1 year or less	Over 1 and less than 2 years	More than 2 vears
To pay US\$ million			14.
To receive A\$ million	16		20
Weighted average exchange rate	0.7079.	0.6929	0.6878

DB RREEF Office Trust

The Trust's activities expose it to a variety of financial risks: credit risk, market risk (including currency risk, fair value interest rate risk and price risk), liquidity risk and cash flow interest rate risk. The Trust's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Trust. Accordingly, the Trust enters into various derivative financial instruments to manage its exposure to the movements in interest rates and foreign exchange rates. There are policies and limits approved by the Board of Directors of the Responsible Entity in respect of the usage of derivatives and other financial instruments to hedge those cash flows. and earnings which are subject to interest rate risks and foreign currency risk respectively. In conjunction with its advisers the Responsible Entity continually reviews the Trust's exposures and updates its treasury policies and procedures. The Trust does not trade in derivative instruments for speculative purposes.

(a) Cradit risk

Concentrations of credit risk are minimised primarily by:

ensuring tenants, together with the respective credit limits, are approved and ensuring that leases are undertaken with a large number $\mathcal{U}^{\mathcal{E}}_N$ of tenants.
ensuring derivative counterparties and cash transactions are limited to high credit quality financial institutions. The Trust has policies that $\mathcal{B}\mathcal{C}$ limit the amount of credit exposure to any one financial institution. Credit risk is further minimised by spreading transactions amongst the approved counterparties.

As such, the Trust does not have a concentration of credit risk that arises from an exposure to a single tenant or financial institution.

Furthermore, the Trust does not have a material exposure to a group of counterparties which are expected to be affected similarly by changes in economic or other conditions.

On-balance sheet financial instruments

The credit risk on financial assets of the Trust which have been recognised in the Balance Sheets is the carrying amount.

(b) Market risk

(i) Foreign exchange risk

Foreign exchange risk is the risk that movements in exchange rates used to convert foreign currency revenues, expenses, assets, or liabilities to the Trust's functional currency will have an adverse effect on the Trust.

The Trust operates internationally with investments in New Zeatand and is exposed to foreign exchange risk arising from currency exposures in New Zealand dollars. Forward contracts are used to manage foreign exchange risk.

(ii) Fair value interest rate risk

Refer to (d) below.

(iii) Price risk

On-balance sheet financial instruments

The net fair value of cash and non-interest bearing monetary financial assets and liabilities approximate their carrying value.

(c) Liquidity risk

Liquidity risk is the risk that the Trust will experience difficulty in either realising assets or otherwise raising sufficient funds to satisfy commitments. The risk management guidelines adopted are designed to minimise liquidity risk through maintaining sufficient cash balances and the availability of funding through an adequate amount of committed credit facilities.

(d) Cash flow and fair value interest rate risk

A portfolio approach to interest rate risk management is adopted whereby generally any fixed rate debt is converted into floating rate exposure via fixed-to-floating interest rate swaps. This mitigates fair value interest rate risk. The Trust then manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Under the interest-rate swaps, the Trust agrees with other parties to exchange, at specified intervats (mainly quarterly), the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional principle amosicits.

Fixed debt and swaps currently in place cover approximately 95.8 percent (2005: 70.1 percent) of the loan principle outstanding, with a further \$800 million (2005: \$740.8 million) of swaps that are forward starting.

The Trust's exposure to interest rate risk is hedged with interest rate swaps and the weighted average effective interest rate (for each class of financial asset and financial liability, and each maturity bracket including floating rate financial assets and flabilities) is set out in the following table:

Consolidated Fixed interest maturing in: Floating Over 1 and Over 2 and Over 3 and Over 4 and Total I vear or More than less than 2 less than 3 less than 4 less than 5 interest fess 5 years rafe. vears vears vears vears $$900$ $$'000$ $$'000$ \$'000 $$1000$ \$'000 $$'000$ Note(s) $$'000$ Financial assets Cash and cash equivalents $\mathbb{Q}$ 17,127 17,127 Loans with related parties $23$ 181,840 181.840 198,967 198,967 Total $\ddot{x}$ $\overline{a}$ $\overline{a}$ $\overline{a}$ $\overline{a}$ $\overline{a}$ Weighted average 6.37% interest rate Financial liabilities interest bearing 888.821 155,000 1.043.821 lianities $24$ Interest rate swaps¹ $(845, 374)$ 280.000 100,000 167.374 118,000 180.000 Forward start interest $(260,000)$ $(130,000)$ $(90,000)$ $(100, 000)$ $(220,000)$ $(800,000)$ rate swaps Forward start interest rate swaps maturities³ 80,000 720,000 800,000 Total 43.447 20.000 $(30.000)$ 312.374 18.000 680.000 1.043.821 ., Weighted average interest rate (including swaps) 7.14% 6.27% 6.23% 6.18% 6.24% 6.24% 6.25% Net financial (liabilities)/assets 155,520 $(20,000)$ 30,000 $(312, 374)$ $(18,000)$ $(680,000)$ $(844, 854)$ ). Notional principle arricunts.

30 June 2006

note 33. financial risk management (continued)

DB RREEF Office Trust (continued)

(d) Cash flow and fair value interest rate risk (continued)

30 June 2005

Consolidated					Fixed interest maturing in:
		Floating interest rate	I year or less	Over 1 and less than 2 years	Over 2 and less than 3 years	Over 3 and less than 4 vears	Over 4 and less than 5 years	More than 5 years	Total
	Note(s)	\$7000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Financial assets Cash and cash
equivalents Loan to third parties	9	9,850 5.006							9.850 5.006
Loans with related parties	21	207.354							207,354
Total		222.210	w	me.	ww		www.	ww.	222.210
Weighted average interest rate		6.41%
Financial liabilities Interest bearing
liabilities Interest rate swaps ¹ Forward start interest	24	797,449 (513.000)	$\cdots$	100.000	100.000	155,000 95,000		218,000	952.449
rate swaps ¹ Forward start interest		$\cdots$	(340.756)	(260.000)	(50,000)	(90.000)			(740.756)
rate swaps maturities ¹				180,000	80.756		$\cdots$	480.000	740.756
Total		284,449	(340,756)	20,000	130,756	160,000	$\overline{\phantom{a}}$	698.000	952,449
Weighted average interest rate (including swaps)		6.13%	6.07%	6.10%	6.11%	6.12%	6.25%	6.20%
Net financial (liabilities)/assets		(62, 239)	340.756	(20.000)	(130.756)	(160.000)	$\overline{\phantom{a}}$	(698.000)	(730, 239)

3 Notional principle amounts.

(e) Foreign exchange rate risk exposures

30 June 2006

Weighted average exchange rate		Contracts to sell NZ\$ at an agreed exchange rate:
	1 year or less	Over 1 and less than 2 years	More than 2 years
To pay NZ\$ million		$\cdots$	$- - -$
To receive A\$ million	$\cdots$	$\cdots$
Weighted average exchange rate		$\cdots$

30 June 2005

Weighted average exchange rate	Contracts to sell NZ\$ at an agreed exchange rate:
	I vear or less	Over 1 and less than 2 years	More than 2 years
To pay NZ\$ million
To receive A\$ million	$\sim$	1111
Weighted average exchange rate	3 1134

DB RREEF Operations Trust

Accordingly, the Trust enters into various derivative financial instruments to manage its exposure to the movements in interest. rates and foreign exchange rates. There are policies and fimits approved by the Board of Directors of the Responsible Entity in respect of the usage of derivatives and other financial instruments. to hedge those cash flows and earnings which are subject to interest. rate risks and foreign currency risk respectively. In conjunction with its advisers, the Responsible Entity continually reviews the Trust's exposures and updates its treasury policies and procedures. The Trust does not trade in derivative instruments for shed slative murboses.

(a) Credit risk

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.

Concentrations of credit risk are minimised primarily by:

* ensuring tenants, together with the respective credit limits, are approved and ensuring that leases are undertaken with a large number of tenants.
s ensuring derivative counterparties and cash transactions are limited to high credit quality financial institutions. The Trust has policies that limit the amount of credit exposure to any one financial institution. Credit risk is further minimised by spreading transactions amongst the approved counterparties.

As such, the Trust does not have a concentration of credit risk that arises from an exposure to a single tenant or financial institution.

Furthermore, the Trust does not have a material exposure to a group of counterparties which are expected to be affected similarly by changes in economic or other conditions.

On-balance sheet financial instruments

The credit risk on financial assets of the Trust which have been recognised in the Balance Sheets is the carrying amount.

(b) Market risk

(i) Foreign exchange risk

The Trust operates internationally with investments in the United States and is exposed to foreign exchange risk arising from currency exposures in US dollars.

Forward contracts are used to manage foreign exchange risk.

(ii) Fair value interest rate risk Refer to (d) below.

(iii) Price risk

On-balance sheet financial instruments

The net fair value of cash and non-interest bearing monetary financial assets and liabilities approximate their carrying value.

(c) Liquidity risk

Liquidity risk is the risk that the Trust will experience difficulty in either realising assets or otherwise raising sufficient funds to satisfy commitments. The risk management guidelines adopted are designed to minimise liquidity risk through maintaining sufficient. cash balances and the availability of funding through an adequate. amount of committed credit facilities.

(d) Cash flow and fair value interest rate risk

A portfolio approach to interest rate risk management is adopted. whereby generally any fixed rate debt is converted into floating rate exposure via fixed-to-floating inferest rate swaps. This mitigates fair value interest rate risk. The Trust then manages its cash flow interest. rate risk by using floating-to-fixed interest rate swaps. Under the interest-rate swaps, the Trust agrees with other parties to exchange, at specified infervals (mainly quarterly), the difference between fixed contract rates and floating-rate interest amounts calculated by reference to the agreed notional principle amounts.

The Trust's exposure to interest rate risk is hedged with interest rate swaps and the weighted average effective interest rate (for eachclass of financial asset and financial liability, and each maturity bracket including floating rate financial assets and liabilities) is set out in the following table.

note 33. financial risk management (continued)

DB RREEF Operations Trust (continued)

(d) Cash flow and fair value interest rate risk (continued)

30 June 2006

Consolidated					Fixed interest maturing in:
		Floating interest rate	1 year or less	Over 1 and less than 2 years	Over 2 and less than 3 years	Over 3 and less than 4 years	Over 4 and less than 5 years	More than 5 years	Total
	Note(s)	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Financial assets
Cash and cash.
equivalents	9	5,814							5,814
Loans and receivables Loans with related	20	$\sim$						45.092	45,092
parties	21	1.133.360						248,890	1.382.250
Interest rate swaps ¹		(389, 375)	180,000			328,265		(118.890)
Forward start interest
rate swaps ¹		$\cdots$	(500, 721)	(50,000)	(90.000)	(104.937)			(745.658)
Forward start interest
rate swaps maturities ⁾								745,658	745,658
Total		749,799	(320, 721)	(50,000)	(90,000)	223,328	w	920,750	1,433,156
Weighted average interest rate		6.62%	5.39%	5.62%	5.67%	5.96%		6.20%
Financial liabilities
Interest bearing
liabilities	24	1,190,837						248,890	1.439.727
Interest rate swaps ¹		(389, 375)	180,000			328,265		(118, 890)
Forward start interest
rate swaps ¹		$\cdots$	(500, 721)	(50,000)	(90.000)	(104.937)		$\cdots$	(745.658)
Forward start interest
rate swaps maturities!						$\cdots$		745,658	745,658
Total		801,462	(320,721)	(50,000)	(90,000)	223,328	$\overline{ }$	875,658	1,439,727
Weighted average interest rate (including swaps)		6.62%	5.39%	5.62%	5.67%	5.96%		5.95%
Net financial (liabilities)/assets		(51,663)						45,092	(6,571)

3 Notional principle amounts.

30 June 2005

Consolidated					Fixed interest maturing in:
		Floating interest rate	I vear or less	Over 1 and less than 2 years	Over 2 and less than 3 years	Over 3 and less than 4 years	Over 4 and less than 5 years	More than 5 years	Total
	Note (s)	\$'000	\$'000	\$000	\$000	\$'000	\$'000	\$'000	\$'000
Financial assets
Cash and cash
equivalents	9	1.278							1.278
Loans and receivables	20							45.092	45,092
Loans with related
parties	21	471.129						242,147	713,276
interest rate swaps ³		(127, 225)					319.372	(192,147)
Forward start interest
rate swaps ^\$			(260,000)	(498.534)	(50,000)	(90.000)	(102,094)	$\ldots$	(1,000,628)
Forward start interest
rate swaps maturities ³				180,000				820,628	1,000,628
Total		345,182	(260,000)	(318, 534)	(50,000)	(90.000)	217.278	915.720	759,646
Weighted average interest rate		5.98%	5.34%	5.39%	5.64%	5.69%	5.98%	6.27%
Financial liabilities
Interest bearing
liabilities	24	520.840						242,147	762.987
interest rate swaps ³		(127, 225)					319.372	(192.147)
Forward start interest
rate swaps ^\$			(260.000)	(498.534)	(50,000)	(90.000)	(102.094)	$\cdots$	(1.000.628)
Forward start interest
rate swaps maturities ³				180,000				820.628	1,000,628
Total		393,615	(260,000)	(318, 534)	(50,000)	(90,000)	217,278	870,628	762,987
Weighted average interest rate (including swaps)		5.98%	5.34%	5.39%	5.64%	5.69%	5.98%	6.02%
Net financial (liabilities)/assets		(48, 433)	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$			45,092	(3,341)

Notional principle amounts.

(e) Foreign exchange rate risk exposures

30 June 2006

Weighted average exchange rate		Contracts to sell US\$ at an agreed exchange rate:
	I vear or less	Over 1 and less than 2 years	More than 2 years
To pay US\$ million	10
To receive A\$ million	Тh	16
Weighted average exchange rate	A 6931	0.6888	A 6906

30 June 2005

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,		,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Weighted average exchange rate	Contracts to sell US\$ at an agreed exchange rate:
	l vear or less	Over 1 and less than 2 years	More than 2 years

To pay US\$ ඎllion		Iΰ
To receive A\$ million		23	40
Weighted average exchange rate	N 7079.	0.6929	3 6868

note 34, contingent liabilities

Details and estimates of maximum amounts of contingent liabilities are as follows:

	DIT Consolidated		DIT Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Bank guarantees by the Stapled Entity in respect of variations and
other financial risks associated with the development of:
240 St George's Terrace, Perth WA
Coles Myer development at Boundary Road, Laverton VIC-	5.000	-5.000	5.000	5.000
Total contingent liabilities	5.000	5.000	5.000	5.000

DIT and DOT are also guarantors of a A\$600 million and US\$210 million syndicated bank debt facility, a total A\$460 million of bank bi-laterat facilities and a total of US\$400 million of privately placed notes, which have all been negotiated to finance the Stapled Entity. These facilities and commercial notes are available to DB RREEF Finance Pty Limited (a wholly owned subsidiary of DRO) and US REIT. The guarantees have been given in support of debt outstanding and drawn against these facilities. For DRO consolidated, these guarantees do not constitute an additional liability to those already existing in interest bearing liabilities on the Balance Sheet, except for those drawn under US REIT.

The guarantees are issued in respect of the Stapled Entity and do not constitute an additional liability to those already existing in interest bearing liabilities on the Balance Sheet.

The Directors of the Responsible Entity are not aware of any other contingent liabilities in relation to the Stapled Entity, other than those disclosed in the financial statements, which should be brought to the attention of security holders as at the date of completion of this report.

note 35, commitments

(a) capital commitments

The following amounts represent capital expenditure on investment properties contracted at the reporting date but not recognised as liabilities payable:

		DIT Consolidated		ÐП Parent Entity

Capital expenditure commitments in relation to development works:	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Not longer than one year
DB RREEF Industrial Estate, Boundary Road, Laverton North VIC	55.820	35.266	55,820	35,266
Pound Road West, Dandenong VIC.	1.957		-1.957
1-15 Resebery Avenue, Resebery NSW		314		-134
One Margaret Street, Sydney NSW
Zenith Centre 821-843 Pacific Highway, Chatswood NSW
45 Clarence Street, Sydney NSW
Governor Phillip Tower and Governor Macquarie Tower Office Complex.
1 Farrer Place, Sydney NSW
309-321 Kent Street, Sydney NSW
Australia Square, 264-278 George St. Sydney NSW	$\cdots$
Southgate Complex, 3 Southgate Avenue, Southbank VIC
88 Shortland Street, Auckland, New Zealand
	57.777	35,380	57,777	35,380
Later than one year but not later than five years
Governor Phillip Tower and Governor Macquarie Tower Office Complex,
1 Farrer Place, Sydney NSW
DB RREEF Industrial Estate, Boundary Road, Laverton North ViC.		50.749		50.749
	$\cdots$	50.749	$\cdots$	50.749
Total capital commitments	57.777	86.129	57.777	86.129

	DOT DOT Parent Entity Consolidated			DRO Consolidated	DRO. Parent Entity
2006 \$'000	2005 \$'000	2006 \$′000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
200	2.200	200.	2.200	$\cdots$
		$\cdots$		5.000	5.000	$\cdots$
200	2.200	200	2.200	5,000	5.000	TIME	ma.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	2005 \$'000	2006 \$000	2005 \$'000	2006 \$'000	2005 \$'000
*****			****		****
- - -		$\sim$		$\cdots$		$\cdots$

$\cdots$		$\cdots$
264	402	264	402	$\overline{\phantom{a}}$
$\cdots$	1,346	$\ddotsc$	1,346	$\sim$		$\sim$
$\ddotsc$	9.828	$\cdots$	9,828			$\sim$
14,534	4.071	14,534	4,071	$\cdots$		$\ddotsc$
5,254		5,254
2,248	3,406			1000000000000000000000000000000000000
100
$\cdots$	100,942

22,400	119,995	20,052	15,647	$\mathbf{w}$	$\mathbf{m}$	$\mathbf{w}$	TIME


$\cdots$	22,826	$\cdots$	22,826	$\cdots$
$\cdots$	$\cdots$			$\cdots$		$\cdots$
$\cdots$	22,826	$\cdots$	22,826		$\cdots$	$\cdots$
22,400	142,821	20,052	38,473	$\mathbf{w}$	$\mathbf{m}$ .	$\mathbf{w}$	$\overline{r}$

note 35, commitments (continued)

(b) lease receivable commitments

			ÐП Parent Entity
The future minimum lease payments receivable are:	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Within one year	81.420	80.541	57.276	53,502
Later than one year but not later than five years.	245.695	250.856	185.513	176.457
Later than five years	169.130	193.963	163.106	187.292
Total lease receivable commitments	496.245	525.360	405,895	417.251

note 36, related parties

responsible entity

On 29 September 2004, DB RREEF Funds Management Limited replaced DB Real Estate Australia Limited, a wholly owned subsidiary of Deutsche Bank AG (ABN 13 064 165 162) as the Responsible Entity.

responsible entity fees

Under the terms of the Trusts' Constitutions, the Responsible Entity is entitled to receive fees in relation to the management of the Trusts.

In addition, the Responsible Entity is entitled to property management fees and to be reimbursed for expenses incurred on behalf of the Trusts.

related party transactions

All related party transactions are conducted on normal commercial terms and conditions unless otherwise stated.

unitholdings

At 30 June 2006, Deutsche Bank AG and its related parties, schemes and portfolios managed by Deutsche Bank AG and its related parties hold 48,480,053 stapled securities (2005: 453,322,396) in the Stapled Entity.

investments

DB RREEF Funds Management Limited, the Responsible Entity, is a whelly owned subsidiary of DRH. DRH is 50 percent owned by DRO and 50 percent owned by FAP a subsidiary of Deutsche Bank Group. DDF is the parent entity and deemed acquirer of DRO.

Deutsche Bank AG

Deutsche Bank AG up to 29 September 2004 was the ultimate parent company of the Responsible Entity, Deutsche Asset Management (Australia) Limited. Deutsche Bank confinued to be a related party after 29 September 2004 as it continues to own-50 percent of the Manager and new Responsible Entity, DB RREEF Funds Management Limited. Dealings with the bank include, not only transactions in its capacity as part owner of the new Responsible. Entity, but also in the provision of financial services. There were a number of transactions and balances between the Trusts and the Responsible Entity and related entities as detailed below:

		ÐIT Consolidated		вт Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Transactions with DB Real Estate Australia Limited/Deutsche Asset Management (Australia) Limited in its capacity as Responsible Entity of the Trusts:
Responsible Entity fees baid and payable		1.235		1.235
Property management fees paid and payable		728		644
Administration expenses incurred by the Responsible Entity which are reimbursed in accordance with the Trusts' Constitutions.		203		-111
Transactions with Deutsche Bank AG in its capacity as a financier:
Interest paid and payable on swaps for whom the counterparty was Deutsche Bank AG	1.057	1.002	1.057	1.002
Interest and financing fees paid and payable on borrowings to Deutsche Bank AG	-63	-136	-61	-136
Dealer fees paid and payable to Deutsche Bank AG for the co-management of medium ferm notes issued during the year
Borrowings from Deutsche Bank AG		14.000		14.000
Proceeds from Borrowings from Deutsche Bank AG
Loan repayment to Deutsche Bank AG	$\cdots$	14.000		14.000
Interest received and receivable on swaps for whom the counterparty was Deutsche Barik AG	З	56	3	56

	DOT Consolidated		DOT Parent Entity			DRO Consolidated
2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
164.536	189.237	104.026	116.380	2.172	2.342	$\cdots$
532,724	633.812	373.260	410.100	2.414	4.434	$\cdots$	1111
420.671	554.550	343,774	427.692	90	248	$\cdots$	1000
1.117.931	1.377.599	821.060	954.172	4.676	7.024	mm.	WWW


	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000

$\sim$	2,629	$\cdots$	1,803			$\cdots$
$\cdots$	428	$\cdots$	428
$\cdots$	521	$\cdots$	482	$\cdots$		$\cdots$

			$\cdots$	12,744	5,381
		$\mathbf{u}$		524	476
$\cdots$		$\cdots$	$\cdots$	$\cdots$	1,157	$\cdots$
$\sim$		$\cdots$	$\cdots$	10,103	4,887	$\cdots$
$\cdots$		$\cdots$		10,467	15,587
$\cdots$		$\cdots$	$\cdots$	5,251	10.700
1,278	1.907	1,278	1,907	(14.116)	(6,598)	$\cdots$

note 36, related parties (continued)

Deutsche Bank AG (continued)

	DIT Consolidated		דוס Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Other transactions with Deustche Bank AG:
Underwriting fees paid and payable to Deutsche Bank AG.		96	1000	96
Financial adviser's fees paid and payable to Deutsche Bank AG.		2.692	$\cdots$	2.692
Costs associated with the Transaction.	160		160
Interest paid and payable to FAP.
Interest payable to FAP	$\cdots$		$\cdots$

DB RREEF Funds Management Limited

From 29 September 2004 DB RREEF Funds Management Limited replaced Deutsche Asset Management (Australia) Limited as Responsible Entity of the Trusts. There were a number of transactions and balances between the Trusts and the Responsible Entity and related entities as detailed below:

		DIT		DIT
		Consolidated		Parent Entity
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000

Responsible Entity fees paid and payable	6,258	4.256.	6.258	4.256.
Aggregate amounts payable to the Responsible Entity at reporting date	920.	678.	889	647

Trusts within the Stapled Entity

		DIT Consolidated		DIT Parent Entity

	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Aggregate amounts included in the determination of profit that resulted from transactions with each class of other related parties:
Costs associated with the Transaction		3.062		3.062
Interest income	$\cdots$
Interest expense	20.294	4.899	20.294	4.899
Treome on recoverables
Aggregate amounts brought to account in relation to other transactions with each class of other related parties: Non-interest bearing loans advanced to Trusts within
the Stapled Entity		138.948		138.948
Non-interest bearing loans from Trusts within the Stapled Entity	$\cdots$
Interest bearing loans advanced to Trusts within the Stapled Entity	554.349	177.545	554.349	177.545
Interest bearing loans from Trusts within the Stapled Entity	105.157	46.580	105.157	46.580

DB RREEF Holdings Pty Limited

	Dn דום Parent Entity Consolidated
	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
Loan note interest earned from DB RREEF Holdings Pty Limited
Loan note interest receivable from DB RREEF Holdings Pty Limited
Loan notes receivable at reporting date
Property management fees paid and payable
to DB RREEF Hotdings Pty Limited	3.120	1 664	2.693.	- 202
Recovery of administration expenses paid to DB RREEF Holdings Pty Limited	2.686	384	2315	322

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$000	2005 \$000	2006 \$'000 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	2005 \$000	2006 \$'000	2005 \$'000

$\cdots$	3.543	$\cdots$	3,543	$\cdots$	2.678	$\cdots$
$\sim$ $\sim$	2.692	$\cdots$	2.692	$\cdots$	$\cdots$
160	1111	160	1111	$\cdots$		$\cdots$
$\cdots$	1111	$\cdots$	1111	566	374	566	374
$\cdots$	$\cdots$	$\cdots$	$\cdots$	$\cdots$	137	$\cdots$	37ء

vvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvvv
		DOT		DO 1		DRO		DRO
				Parent Entity				Parent Entity
	2006 \$'000	2005 : 000	2006 : 000	2005 1000	2006 '000	2005 \$'000	2006 \$'000	2005 \$'000
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~		196	8.195	- 580.	1.1.1.1	1.111	$\cdots$
				קקי	$\cdots$		$\cdots$

	DOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO. Parent Entity
2006 \$'000	2005 \$000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$000

$\cdots$	2.228	$\cdots$	2,228	$\cdots$		$\cdots$
12.464	$\cdots$	12,464	$\cdots$	54,639	27.152	3.298	928
6.086	1.689	6.086	1.689		$\cdots$	3.538	1.182
$\cdots$		$\cdots$	1.11	1,376	9,159	132	26
$\cdots$		$\cdots$				$\ddotsc$
$\cdots$	55,684	$\cdots$	55,684	$\cdots$		$\ddotsc$
70,114	227.759	70.114	227.759	648.014	942.184	7,000	46.900
187.000	20.405	187,000	20.405	181.840	228.908	1,100	50.020

	ÐOT Consolidated		DOT Parent Entity		DRO Consolidated		DRO Parent Entity
2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000	2006 \$'000	2005 \$'000
$\cdots$	1111	$\cdots$		4.960	3.696	4.960	3.696
$\cdots$		$\cdots$		$\cdots$	1.238	$\cdots$	1.238
		$\cdots$		45.092	45,092	45.092	45.092
3.140	1.699	3.140	1.699.	$\cdots$	1000	1000
3.393	714	2.988	706	768		-20

note 36, related parties (continued)

directors

The following persons were Directors of DRFM during the whole of the financial year and up to the date of this report, unless otherwise stated:

Directors	Appointed	Resigned
-C-T-Beare 8Sc., BE (Hors), MBA, PhD, FAICD ^3,3,3
E A Alexander AM BComm, FCA, FAICD, FCPA1-2
B R Brownjehn BComm ^{s 2.3}
IS FI Ewen OAM FILE ^{3, 3}
A J Fay BAg Econ (Hons), ASIA (Alternate to C B Leitner).	30 January 2006
V-P Hoog Antick BComm, MBA, FCA, FAPI, MAICD ⁵
C B Ceitner BA
S. A Mays BSc (Hons), MSc, MBA (Alternate to C B Leitner).		30 January 2006
- B-F-Scidlin B5c ^2,3,4
3 Independent Director.
2 Auctil Competition Member
2. Compliance Committee Member

4 Remuneration Committee.

5 Treasury Committee.

No Directors held an interest in the Trust as at 30 June 2006 or at the date of this report.

other key management personnel

In addition to the directors listed above the following persons were deemed by the Board Nomination and Remuneration Committee to be key management personnel during all or part of the financial year and up to the date of this report.

Name	Position	Qualification date of other key management personnel during the 12 months ended 30 June 2006
Tanya E Cox	Chief Operating Officer
John C Easy	General Counsel
Greg T Lee	Head of Transaction Services.	Qualified until 31 January 2006.
-Ben 33 ebmann	Head of Portfolio Services
Peter C Roberts	Chief Einancial Officer	Qualified from 5 December 2005
Mark F Turner	Head of Unlisted Funds

No key management personnel or their related parties held an interest in the Trusts for the years ended 30 June 2005 and 30 June 2006 or at the date of this report.

There were no loans or other transactions with key management personnel or their related parties during the years ended 30 June 2005. and 30 June 2006 or at the date of this report.

Compensation	2006 (S)	20051 S

Short term employee benefits	4,434,850	3.252.331
Post-employment benefits	418,594	115.169
Other long term benefits?	650,000	282.500
	5.503,444	3.650.000

3 Actual 2005 remuneration received from DRFM was for the nine month period commencing 1 October 2004. Remuneration paid during the three month period to 30 September 2004, the stapling implementation date, was paid by Deutsche Bank and was not a cost of DB RREEF Trust. In addition, the 2005 short term incentive values have been restated to reflect actual incentive values granted to Executives in September 2005 which related to the period ended 30 June 2005. Consequently, the 2005 short term incentive amounts and corresponding line totals will differ from those published in the 2005 Annual Report.

2 Allong term incentive scheme for other key management personnel was introduced in July 2006, with an effective date of 1 January 2006. The above 2005 long term incentive values were therefore granted for the six month period to 30 June 2005.

directors' and executive remuneration

1. Board Nomination and Remuneration Committee

The Board Nomination and Remuneration Committee oversees the remuneration of Directors and executives. The role and membership of the Board Nomination and Remuneration Committee is set out in the Corporate Governance Statement in the DB RREEF Trust Annual Report. The terms of reference of the Board Nomination and Remuneration Committee can be found on the web page www.dbrreef.com/governance.

2. Non-Executive Director remuneration

The disclosures in this section of the report relate to the Non-Executive Directors of DRFM who held office during the year ended 30 June 2006. Particulars of the skills, qualifications and experience of the Directors who held office during the year are set out in the Directors section of the DB RREEF Trust Annual Report.

2.1 Non-Executive Directors' remuneration framework

Non-Executive Directors' fees reflect the demands which are made on, and the responsibilities of Directors. Non-Executive Directors' fees are reviewed annually by the Board Nomination and Remuneration Committee. The Committee also obtains advice from independent remuneration consultants to ensure Non-Executive Directors' fees are appropriate and in line with the market. Non-Executive Directors receive a base fee plus an additional fee for membership of a Board Committee. The Chair, taking into account the greater time commitment required, receives a higher fee, which is market benchmarked. The Chair is not present at any discussion relating to the defermination of his own fees.

Fees paid to Non-Executive Directors are paid from a remuneration pool of \$1,250,000 per annum, which was approved by DB RREEF Trust investors at the 2005 Annual General Meeting held on 25 November 2005.

Board and Committee fees paid to Non-Executive Directors for the year ended 30 June 2006 are set out in the table below:

	Directors' fees			Committee fees		Cash salary
	Board	Board Audit Committee	Committee	Board Risk and Board Nomination Compliance and Remuneration Committee	Board Treasury Policy Committee	and fees Total
	{\$)	{\$)	(S)	(\$)	(\$)	(\$)
Christopher T Beare	250.000			10.625	7.500	268.125
Elizabeth A Alexander AM	110.000	20.000				130.000
Barry R Brownjehn	110.000	10.000			15.000	135.000
Stewart F Ewen OAM	110.000	2.500		7.500	1111	120.000
Brian E Scullin	110.000	7.500	20,000	7.500	1111	145.000
Total	690.000	40.000	20.000	25.625	22.500	798,125

All Non-Executive Directors also receive reimbursement for reasonable travel, accommodation and other expenses incurred whilst undertaking DB RREEF Trust business.

During the year ended 30 June 2006. Charles B Leitner. Executive Director and his Alternate Directors. Shaun A Mays and Andrew J Fay. were employees of Deutsche Bank or a related company (including RREEF America Inc), and were not paid fees or any other remuneration by DRFM or DRH or any of their subsidiaries.

The Chief Executive Officer, Victor P Hoog Antink, does not receive fees in respect of his role as a Director, but does receive remuneration as a Senior Executive of DRFM.

2.2 Remuneration paid

Details of the nature and amount of each element of remuneration for each Non-Executive Director of DRFM for the years ended 30 June 2005 and 30 June 2006 are set out in the following table.

	Short-term employee benefits Total cash fees	Post-employment benefits Super contributions	Total
	(\$)	$($ \$)	(\$)
Christopher T Beare
2006	255.986	12.139	268.125
2005 commence 1 Oct 2004	193,125		193,125
Elizabeth A Alexander AM
2006	29.413	100,587	130.000
2005 commence 1 Jan 2005	65,000		65.000
Barry R Brownjohn
2006	34.413	100,587	135,000
2005 commence 1 Jan 2005	60,000		60.000
Stewart F Ewen OAM
2006	110.092	9.908	120.000
2005 commence 1 Oct 2004	92.701	2.924	95.625
Brian E Scullin
2006	132,861	12.139	145.000
2005 commence 1 Jan 2005	68.750	HERE	68.750
Total
2006	562,765	235,360	798,125
2005	479.576	2.924	482,500

note 36, related parties (continued)

directors' and executive remuneration (continued)

3. Senior Executive remuneration

The disclosures in this section of the note relate to the executives listed below, being the Chief Executive Officer and the senior executives with authority and responsibility for planning, directing and controlling the activities of DB RREEF Trust during the financial year.

Name	Title	Qualification date of key management personnel during the 12 months ended 30 June 2006
Tariya £ Cox	Chief Operating Officer
Bohn C Easy	General Counset
Victor P Hoog Antink	Chief Executive Officer
Greg T Lee	Head of Transaction Services	Qualified until 31 January 2006.
-Ben 33 ebmann	Flead of Portfolio Services
Peter C Roberts	Chief Financial Officer	Qualified from 5 December 2005
Mark E Turber	Head of Balisted Funds

3.1 Senior Executive remineration framework

The Nomination and Remuneration Committee has adopted a framework for senior executive remuneration (including the remuneration of the Chief Executive Officer) which is based on the following key criteria:

transparency, competitiveness and reasonableness; $\mathscr{U}$
$\mathscr{U}$ linked to performance:
has the ability to attract and retain high quality executives; and $\mathscr{U}$
aligns executives and investor interests. $\mathcal{U}$

The objective of DRFM's remuneration framework is to ensure remuneration for performance is competitive and appropriate for the results delivered. The framework aligns each executive's remuneration with the achievement of strategic objectives and the creation of value for investors, and conforms to market best practice.

In consultation with external remuneration consultants. DRFM has structured a remuneration framework that is market competitive and complementary to its remuneration strategy. Alignment to investors' interests is achieved by a substantial proportion of executive remuneration being dependent upon performance. This ensures that remuneration for Senior Executives, including the Chief Executive Officer, is closely linked to:

$\mathcal{U}$ delivery of forecast returns; and
achievement of key non-financial value drivers. $\mathscr{U}$

The remuneration framework is designed to attract and retain talented and motivated executives, and to encourage enhanced performance. The framework provides executives with a remuneration structure that encourages capability and performance by:

providing a clear remuneration structure; and $\mathscr{U}$
delivering competitive remaneration for contributing to the creation of value. $\frac{\partial}{\partial x}$

3.2 Components of Senior Executive remimeration

Senior executive remuneration comprises the following components:
$\mathcal{U}$ fixed remuneration: and
variable pay through the short term and long term performance incentives. $\mathcal{U}^{\circ}$

The more senior the executive the higher the proportion of remuneration "at risk" through short and long term incentives.

Prior to DRFM's corporate restructure in September 2004 the target remuneration mix for Senior Executives was 50 percent base salary and 50 percent short term incentive. Subsequent to the restructure and following consideration of guidance from external advisors the Board Nomination and Remuneration Committee:

commissioned the development of a long term incentive scheme; and $\mathscr{U}$
revised the target remuneration mix for the Chief Executive Officer and other senior executives to more closely reflect the remuneration $\mathcal{U}$ structure of DRFM's peer group.

Application of this target mix to the remuneration of the Chief Executive Officer and new recruits was implemented immediately. Application of the farget mix to other Senior Executives is being progressively introduced.

DRFM's current target remuneration mix between fixed, short term and long term incentives for the Chief Executive Officer and other Senior Executives is outlined below-

	Fixed	Short term incentive	Long term incentive
	(%	1%,	$\frac{1}{2}$
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Chief Executive Officer	Di.	ZE
Other Senior Executives	51.	z

The Board Nomination and Remuneration Committee continues to review the target remuneration mix for all Senior Executives.

3.2a Fixed remuneration

To ensure that base pay is competitive, external remuneration consultants provide analysis and advice regarding market remuneration for comparable roles. Base pay for executives is reviewed annually. There are no guaranteed base pay increases for executives.

3.2b Performance management

DREM has in olace an agoual performance management program which incorporates the establishment of specific, measurable, financial and pon-financial targets for all executives. Performance targets are utilised to ensure that inceptives are only available when value has been created for investors.

Key performance indicators are typically a combination of financial and non-financial indicators which reflect the executive's role within DRFM and their personal objectives, and may include one or more of the following measures:

Performance indicators	Reason for use
Fund performance indicators
Total return	to ensure focus on an improving security price and delivering income to investors
Earnings growth	to ensure focus on improving earnings.
Distributions growth	to ensure focus on investor distributions.
Net tangible asset growth	to ensure the value of assets is maintained and improved
Property performance indicators
Net property income per property	to ensure focus on target income returns to investors.
Percentage of vacant space per property.	to ensure focus on target income returns to investors.
Expenses against budget	to ensure focus on appropriate cost model.
Non-financial indicators
Delivery	to ensure focus on achievement of non-financial drivers of performance
Team work	to ensure focus on achievement of non-financial drivers of performance
Employee turnover	to ensure focus on achievement of non-tinancial drivers of performance

3.2c The incentive pool

Should DRFM achieve predetermined performance targets, an incentive pool, approved by the Board following the recommendation of the Board Nomination and Remuneration Committee, is available for allocation to executives for the financial year. The size of the incentive pool may be increased for performance above targets to provide an incentive for out-performance. The altocation each executive receives from the incentive pool is based on the particular executive's performance against individual key performance indicators.

3.2d Short term performance incentive

At the end of each year, performance against set targets is assessed and the results reflected in the short term performance incentive allocation to each executive. The performance assessment is weighted to non-financial measures that vary between positions but include matters such as achieving delivery of projects, operational improvements, performance enhancements, leadership and team work.

Where performance fails below minimum threshold levels, no short term performance incentive is paid. Short term performance incentives are payable in cash in August/September each vear.

3.2e Long term incentives

During the 2005/06 year, the Board introduced a long term incentive scheme designed to achieve the following outcomes:

s to more closely align Senior Executives' interests with those of investors:
$\mathbb{R}^2$ to give Senior Executives an incentive to create long term, sustainable value for investors by enabling them to benefit from the long term success of DB RREEF Trust's activities; and
s to assist in attracting and retaining high quality executives.

Executives who are eligible to participate in the long term incentive scheme are each of DRFM's executive committee members, and any other senior executive who has been approved by the Nomination and Remaneration Committee. Eligible executives may only participate in the long ferm incentive scheme if they achieve key performance indicators to a satisfactory level. No participation is granted for less than satisfactory performance.

The long term incentive scheme employs the following concepts:

The Composite Total Return is 50 percent of the total return of DB RREEF Trust, plus 50 percent of the combined asset weighted total return of DRFM's unlisted funds and mandates and the unlisted funds and mandates.

DRFM's long term incentive scheme operates as follows:

e each year the Board, following a recommendation from the Nomination and Remuneration Committee, allocates eligible executives a long term incentive value. The long term incentive value allocated varies depending on the role of the executive and the executive's performance against key performance indicators;
the long term incentive value is held by DRFM until the end of the three year vesting period, and is notionally reinvested during the vesting period in the DB RREEF Trust (50 percent of long term incentive value) and DRFM's unlisted funds and mandates (50 percent of long term incentive value). This means that the banked value of the long term incentive fluctuates up and down in line with changes in the Composite Total Return:
at the end of the three year vesting period the final long term incentive payment is determined by grossing up the final banked value by the Performance Multiplier,

note 36, related parties (continued)

directors' and executive remuneration (continued)

3.2e Long term incentives (continued)

the relevant Performance Multiplier is determined by comparing the Composite Total Return over the three year vesting period against the Benchmark. The table below sets out the appropriate Performance Multiplier based on the comparison of Composite Total Return against the relevant Benchmark performance groups:

-Performance burdie $$	Less than 95%. of benchmark	Un to 100% of benchmark	Up to 115% of benchmark	Uo to 130% of benchmark	Greater than 130% of benchmark
- Performance Multiplier	-1703.		` 20%	140%	ಿರ್ದಿ

consequently, the long term incentive payment made to each Senior Executive at the end of the vesting period is determined by the overall 96 return received by all DRFM's investors compared to the benchmark group, with performance exceeding the benchmark group being recognised by a greater long term incentive payment.

In determining the construction of the Composite Total Return the DRFM Board considered the obligations senior executives have to all DRFM's investors in DB RREEF Trust and the unlisted funds and mandates. Following due consideration the Board determined that the appropriate measure for DB RREEF Trust and the unlisted funds and mandates should be the total return of each of the funds. The Board further determined that the performance Benchmark should be the S&P/ASX 200 Property Accumulation Index for DRT and the Mercers Unlisted Property Fund Index for unlisted funds and mandates.

Participants in the long term incentive scheme will only receive cash payments and have no entitlement to DB RREEF Trust securities or securities in any other DRFM product. In addition, if an executive terminates their employment during the vesting period their long term incentive grant is forfeited, unless otherwise determined by the Nomination and Remuneration Committee.

The table below sets out the movement in long term incentive values for each senior executive during the year.

Name	Opening long term incentive value outstanding as at 30 June 2005 (S)	Fluctuation due to movement in DRFM's Composite Total Return ${5}$	Additional long term incentive value granted during the year (5)	Closing balance of long term incentive value outstanding as at 30 June 2006 ¹ 15)
Victor P Hoog Antiak	187.500	39.263	250.000	476.763
Tariya E Cox	10.000	2.094	60.000	72.094
Liohn C Easy	12.500	2.618	50.000	65.118
Greg T Lee ²	12.500
- Ben 33 e⁄omann	50.000	10.470	120.000	180.470
Peter C Roberts			75.000	75,000
Mark F Turner	10.000	2.094	70.000	82.094
Total	282.500	56.539	625.000	951.539

3 No amounts vested under the LTI scheme during the year.

2 Advounts forfeited during the year.

The following table sets out the achievement of an Executive's long term incentive value for the year.

The potential future value of an executive long term incentive entitlement cannot be estimated as it is based on the movements. of the Composite Total Return measure which cannot be forecast.

3.2f Equity plans and loans

DRFM does not operate a security or option participation scheme or loan scheme for any Director or Senior Executive.

3.3 Remuneration paid

Details of the nature and amount of each element of remuneration for the Chief Executive Officer and other Senior Executives for the years ended 30 June 2005 and 30 June 2006 are set out in the following table.

		Short term employee benefits		Post-employ benefits		Other long term benefits	Total
	Cash salary and fees	Short term incentive	Other short term benefits	Pension and super benefits	Long term incentive amount ²	Other long term benefits
	$($ \$)	(3)	( \$)	{\$}	\$)	$($ \$)	(3)
Victor P Hoog Antiak
2006	907.714	500.000		92.286	250,000	$\cdots$	1,750,000
2005*	681,200	375,000		68,800	187,500		1,312,500
Tanya L Cox
2006	237.861	175.000		12,139	60.000		485,000
2005*	178.811	150.000		8.689	10,000		347.500
John C Easy
2006	287,861	100,000		12,139	50,000		450,000
2005*	163.811	75.000		8,689	12,500		260,000
Greg 7 Lee
20063	185,419			7.081			192,500
2005*	216.311	187.500		8.689	12,500	$\cdots$	425,000
Ben J Lehmann
2006	387.861	230.000		12,139	120,000		750,000
2005*	216.311	200,000		8.689	50,000		475,000
Peter C Roberts
2006*	150.469	125.000	130.000	22.350	75,000	25,000	527,819
2005
Mark F Turner
2006	274.900	180,000		25.100	70,000		550,000
2005*	178.811	150.000		8.689	10.000		347.500
Total
2006	2.432.085	1.310.000	130.000	183.234	625,000	25,000	4.705.319
2005*	1,635,255	1,137,500		112,245	282,500		3,167,500

Actual 2005 remuneration received from DRFM was for the nine month period commencing 1 October 2004. Remuneration paid during the three month period to 30 September 2004, the stapling implementation date, was paid by Deutsche Bank and was not a cost of DB RREEF Trust. In addition, the 2006 short term incentive values have been restated to reflect actual incentive values granted to executives in September 2005 which related to the period ended 30 June 2005. Consequently, the 2005 short term incentive amounts and corresponding line totals will differ from those published in the 2005 Annual Report.

2 A long ferm incentive scheme for other key management personnel was introduced in July 2005, with an effective date of 1 January 2005. The above 2006 long ferm incentive values were therefore granted for the six month period to 30 June 2005.

3 The Board determined that Greg T Lee qualified as key management personnel for the period to 31 January 2006.

4 Other short and long ferm benefits represent recruitment incentives and the pay out of retained incentives from previous employers. Peter Roberts commenced with DRFM on 5 December 2005.

3.4 Employment agreements

The table below outlines employment arrangements for the Chief Executive Officer and other Senior Executives:

Name and title	Commencement date	Term	Termination provisions/benefits
Victor P Hoog Antink Chief Executive Officer	-1 October 2005	Unlimited in term.	In the event of early termination. DRFM is required to give twelve months' notice and may elect to pay out all or part of this notice. period. The provision of this payment constitutes full satisfaction of the Company's obligations in respect of notice of termination.
Other Senior Executives		Elplimited in term.	In the event of early termination, DRFM is required to give three months' notice and may elect to pay out all or part of this notice period.

All other DRH executives have a standard service contract with DRH. These agreements are unlimited in term and provide for one month's notice of termination by either party. However, no notice period is required if termination is for misconduct or serious or persistent breach of the agreement.

Where termination is outside the control of the executive, including senior executives, or the executive is made redundant, the termination payment will vary between executives. Where a termination payment is to be made it will be determined:

a in the case of Senior Executives, by the Board on the recommendation of the Board Nomination and Remuneration Committee; and

in the case of all other executives, by the Chief Executive Officer on the recommendation of the Compensation Committee.

in both situations the payment will fake into account the seniority of the executive, the length of service, the performance of the executive, the reasons for termination and the statutory and other rights (if any) of the executive and DRH.

note 37, events occurring after reporting date

acquisition of Proforis France 1 SAS

On 11 July 2006 DB RREEF Industrial Trust incorporated DIT France Logistique, a wholly owned subsidiary, which acquired all of the issued shares in Protogis France 1 SAS on the same date for a cash consideration of \$56,158,118. Details of the net assets acquired and goodwill are as follows:

	2006
	\$'000

Purchase consideration
Cash paid	56,158
Direct costs related to acquisition.	1.906
Total purchase price	58,064
Fair value of net identifiable assets acquired (refer below).	(41, 259)
Goodwill	16.805

Assets and fiabilities acquired

The assets and liabilities arising from the acquisition are as follows:

	Provisional fair value	Acquiree's carrying amount
	\$000	\$'000

Investment properties	73.438	29.332
Receivables	808	808
Prepayments	48	48
Cash and cash equivalents.	45	45
Pavables	(945)	(945)
Deferred revenue	(344)	(344)
Security deposits	(101)	(101)
Group borrowings	(16.790)	(16.790)
Deferred CGT liability	(14.900)
Net identifiable assets acquired	41.259	12.053

On 11th July 2006 DIT France Logistique, a wholly owned subsidary, acquired all of the issued shares in Prologis France XXXII EURL for a cash consideration of \$23,728,219. Details of the net assets acquired and goodwill are as follows:

	2006
	\$'000

Purchase consideration
Cash paid	23.728
Direct costs related to acquisition	572
Total purchase price	24,300
Fair value of net identifiable assets acquired (refer below).	(16, 812)
Goodwill	7488

Assets and liabilities acquired

The assets and liabilities arising from the acquisition are as follows:

	Provisional fair value \$'000	Acquiree's carrying amount \$'000
investment properties	42.681	18.853
Receivables	1.067	1.067
Prepayments	39	39
Payables	(981)	(981)
Group borrowings	(19.079)	(19.079)
Deferred CGT liability	(6.915)
Net identifiable assets acquired	16.812	(101)

The goodwill on consolidation arises because the consideration paid for Prologis France I and Prologis France XXXII exceeds the values at which its net assets are required to be recognised in the financial statements. The differences are primarily attributable to latent CGT liabilities, which arise as a result of the properties' fair market values exceeding their tax base values.

It is unlikely that the CGT liability will ever crystallise. Crystalisation would require that the companies dispose of the properties concerned individually and it is the intention of the companies to hold these properties as long term investments. Should DB RREEF Industrial Trust wish to sell the properties, it would likely sell the structure rather than properties.

However, AASB 112: Income Taxes requires the recognition of a liability in respect of such latent CGT (at an undiscounted amount) even if the entity does not intend to dispose of the asset concerned.

The financial effects of the above transactions have not been brought to account at 30 June 2006. The operating results and assets and fiabilities of the companies will be consolidated from 11 July 2006.

In July 2006 DIT exchanged contracts to acquire a 65.4 hectare site at Laverton North Victoria for \$32 million, with settlement due in November 2006. This site is adjacent to DH's existing holdings, and provides a strategic extension to this development, in which several recent and pending pre-commitments have utilised a number of major lots.

Since the end of the year, other than the matters discussed above, the directors of the Responsible Entity are not aware of any matter or circumstance not otherwise dealt with in their report or the financial statements that has significantly or may significantly affect the operations of the Trusts, the results of those operations, or state of the Trusts' affairs in future periods.

note 38, segment information

DB RREEF Industrial Trust

Business segment

The Trust operates solely within the industrial property sector.

Geographical segments

The Trust's investments are located in Australia and the United States of America.

2006

	Australia	United States of America	Consolidated
	\$'000	\$'000	\$'000
Property revenue	99,152		99.152
interest revenue	273		273
Share of net profits of associates accounted for using the equity method		83.566	83,566
	99,425	83.566	182,991
Net gain on safe of investment properties	1.378		1.378
Net fair value gain of investments	82.069		82.069
Net fair value gain of derivatives	11.990		11,990
Net foreign exchange gain	1,393		3.393
Total segment revenue/income	196.255	83.566	279,821
Segment result	143.942	83,566	227.508
Segment assets	1,307,666	272,400	1,580,066
Segment liabilities	429.411	205,839	635.250
investments accounted for using the equity method		272.400	272,400
Amortisation expense	1,887		1.887

2005

	Australia	United States	Consolidated
		of America
	\$'000	\$'000	\$'000
Property revenue	93,755		93,755
interest revenue	282		282.
Share of net profits of associates accounted for using the
equity method		51.521	51.521
	94.037	51,521	145,558
Net gain on safe of investment properties	-979		979.
Net fair value gain of investments	31.381		31.381
Net foreign exchange gain	29		29
Total segment revenue/income	126.426	51.521	177.947
Segment result	63.187	51,521	114,708
Segment assets	1.119.890	177.759	1,297.649
Segment liabilities	409.292	132.199	541.491
investments accounted for using the equity method		177.759	177.759
Amortisation expense	1.148		1.148

note 38. segment information (continued)

DB RREEF Office Trust

Business segment

The Trust operates solely within the commercial property sector.

Geographical segments

The Trust's investments are located in Australia and New Zealand.

2006

	Australia \$'000	New Zealand \$'000	Consolidated \$000
Property revenue	228,390	8.595	236.985
Interest revenue	13.190	97	13.287
Share of net profits of associates accounted for using
the equity method.	2.433		2,433
	244,013	8,692	252,705
Net fair value gain of investments.	227.506	9,222	236.728
Net fair value gain of derivatives	27.145		27.145
Net foreign exchange gain	117		317
Other income	329		329.
Total segment revenue/income	499,110	17,914	517,024
Segment result	360.131	16,493	376.624
Segment assets	3,008,100	102,125	3,110,225
Segment liabilities	1.197.770	402.	1,198,172
Investments accounted for using the equity method.	36,800		36,800
Acquisition of investment properties.		102.599	102,599
Amortisation experise	15,857		15,857

2005

	Australia \$'000	New Zealand \$'000	Consolidated \$'000
Property revenue	216.260		216.260
Interest revenue	1.005	406	1.411
Share of net profits of associates accounted for using
the equity method.	(1.837)		(1,837)
	215,428	406	215.834
Net fair value gain of investments	78.054	$\cdots$	78,054
Other income	260	1111	260
Total segment revenue/income	293,742	406	294.148
Segment result	157,078	378	157,456
Segment assets	2.711.115	5.006	2.716.121
Segment liabilities	1.068.371	23	1,068,394
Investments accounted for using the equity method.	36.609	$\mathbf{u}$	36.609
Amortisation experise	7.797	$\mathbf{u}$	7.797

DB RREEF Operations Trust

Business segments

The Trust's associate and wholly owned entities are involved in property development and provide financial services to trusts within the Stapled Entity, and to other clients.

Geographical segments

The Trust operates solely in Australia.

2006

	Financial services	Property	Investments in funds management company	Eliminations/ unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue		3.240			3,240
interest revenue	210	1000000000000000000000000000000000000	4.960	$\cdots$	5.170
interest revenue from Stapled Entities	54,639				54.639
Recoverables from Stapled Entities	1.376		$\overline{\phantom{a}}$		1.376
Share of net profits of associates accounted for
using the equity method.			4.845		4.845
Net fair value gain of derivatives			$\cdots$	616	616
Total segment revenue/income	56.225	3.240	9,805	616	69.886
Segment result	135	(804)	9,805	(1,853)	7.283
Segment assets	1,510,757	59.589	60,853	(55.476)	1,575.723
Segment liabilities	1.510.469	60.246	48.932	(59.521)	1,560.126
lavestments accounted for using the equity method			15.761		15.761
Additions of property plant and equipment		57,495			57.495
Depreciation expense		1.023			1.023

2005

	Financial services	Property	Investments in funds management company	Eliminations/ unallocated	Consolidated
	\$000	\$000	\$000	\$'000	\$000
Property revenue		1.380			1.380
interest revenue	101		3.696		3.797
interest revenue from Stapled Entities	27.152				27.152
Recoverables from Stapled Entities	9.159				9.159
Share of net profits of associates accounted for using the equity method			2.571		2,571
Total segment revenue/income	36,412	1,380	6,267		44,059
Segment result	153	47	6,267	(1,587)	4,880
Segment assets	778.222	49,293			827,515
Segment liabilities	817.619	1,388			819.007
investments accounted for using the equity method	$\cdots$		17.166		17.166
Acquisitions of inventory		48.469			48.469

note 39, reconciliation of net profit/(loss) to net cash inflow from operating activities

		DIT		DIT
		Consolidated		Parent Entity
	2006	2005	2006	2005
	\$'000	\$'000	\$'000	\$000
-Net-profit	227.508	114.708	229,821	314.059
Capitalised Interest	(3,150)	(2.975)	(3,150)	(2.975)
Depreciation
Net increment on revaluation of investments	(82,069)	(31.381)	(169.056)	(97.317)
Share of net profits of associates accounted for using the equity method	(83.566)	(31, 443)
Net increment on revaluation of derivatives	(14, 137)		(14.137)
Net gain on sale of investment properties.	(1.378)	(979)	(1.004)	(1.168)
Net foreign exchange (loss)	5.583		3.508
Provision for doubtful debts	(43)	(168)	(43)	(20)
Change in operating assets and liabilities
Decrease/Gncrease) in receivables	57	28	(27.489)	(30.552)
increase in prepaid expenses	(250)		(159)
Decrease/(increase) in other non-current assets - investments	19,863	(3.568)	27.333	28.513
Decrease/(increase) in other current assets	339	1.702	339	1.288
(increase)/decrease in other non-current assets	(33)	(4.631)	(33)	11,696
(Decrease)/increase in payables	(1.983)	2.196	(1.568)	3,134
(increase)/decrease in other current liabilities		1.121		1,121
(Increase)/decrease in other non-current liabilities	(8,598)	(3.257)	(12.406)	(11.570)
Net cash inflow from operating activities	58,143	41,353	31,956	16,209

note 40, non-cash financing and investing activities

			ÐП		DIT
			Consolidated		Parent Entity
********	Note(s)	2006 \$'000	2005 \$'000	2006 $000^{\circ}$	2005 \$'000
Placement of units	29		10.770	$\cdots$	10.770
Distributions reinvested	29	-289.	29.634	10.289	29.634.

During the year, DOT borrowed \$91.37 million NZ denominated debt from DB RREEF Finance Pty Limited, a wholly owned subsidiary of DRO. Finance costs of \$5.40 million have been excluded from the parent entity's Cash Flow Statement as these costs are paid by DOT NZ Subtrust No 1, a wholly owned subsidiary of DOT.

DB RREEF Finance Pty Limited, is the legal borrower of \$411.68 million of US denominated debt. However, proceeds of \$165.34 million, repayments of \$42.64 million, and finance costs of \$17.02 million associated with this debt, have been excluded from the Company's Cash Flow Statements. These cash flows are disclosed in DFT and DDF's Cash Flow Statements as the operators of the bank account where these cash inflows and outflows have occurred.

DB RREEF Finance Pty Limited is also the legal borrower of \$91.37 million NZ denominated debt. However, proceeds of \$100.90 million and finance costs of \$5.40 million associated with this debt, have been excluded from the Company's Cash Flow Statements. These cashfows are disclosed in DOT's Cash Flow Statements as the operator of the bank account where these cash inflows and outflows have occurred.

	DOT		DOT		DRO		DRO
	Consolidated		Parent Entity		Consolidated		Parent Entity
2006 \$'000	2005 \$'000	2006 \$000	2005 \$'000 ,,,,,,,,,,,,,,,,,,,,,,,,,,	2006 \$'000 ******	2005 \$'000	2006 \$'000	2005 \$'000
381,135	158,075	361.734	158,353	7,283	4.880	9.351	2,108
	(3,277)		(3,277)	(1, 251)
		$\cdots$		1.023
(236,728)	(78.054)	(270.855)	(125.435)	$\cdots$
(191)	3.624	$\cdots$		(4.845)	(2.571)
(27.145)		(27.145)		(616)		(616)

(394)		(1.959)
161	(35)	161	(35)
244	2,000	23,739	32,540	1.172	(1.970)	(3.517)	(1,238)

2,413	(432)	1,873	(1,052)
1.709	713	1,759	(48.052)	(311)	(103)
(12, 156)	(914)	(12, 24)	1.486	10,605	(127)	(3,326)	(970)
247	-4,819	(1,894)	-6,461	3,005	2,989	15	243
				2	1.069	426	920
(1,655)	31	(3,621)	(1,339)	(841)	48	3,588	1,182
107,640	86,550	71,551	19,650	15,226	4,215	5,921	2,245

......

.......

	dot `onsolidated.	DOT Parent Entity			DRO hetshilozno."	DRO Parent Entity
2006 \$000	2005. \$'000.	2006 \$'000	2005 \$'000 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,	2006 \$'000	2005 \$'000	2006 \$1000 *********	2005 \$'000
$\cdots$	22.517	$\cdots$	22.517	$\cdots$	5,251	$\cdots$	5.251
39.959	56.608	39.959	56,608	262	289	262	-289

note 41. earnings per unit

(a) basic earnings per unit on profit attributable to equity holders of the parent entity

DF Consolidated			DOT Consolidated		DRO Consolidated
2006 Cents	2005 Cents	2006 Cents	2005 Cents	2006 Cents	2005 Cents
		3.58		0.26	0.36.

(b) diluted earnings per unit on profit attributable to equity holders of the parent entity

	DIT		DOT		DRO
	Consolidated		Consolidated		Consolidated
2006 Cents	2005 Cents	2006 Cents	2005 Cents	2006 Cents	2005 Cents
8.21	5.82	13.58	/ I ?	0.26	0.36

		DIT Consolidated		DOT Consolidated		DRO Consolidated
	2006 \$000	2005 \$000	2006 \$000	2005 \$000	2006 \$'000	2005 \$'000
Net profit Net profit attributable to minority interests	227,508 $-$	114.708	381.135 (4.511)	158.075 4619)	7.283 $\cdots$	4.880
Net profit attributable to the unitholders of the Trust in calculating basic and diluted earnings per unit	227.508	114.708	376.624	157.456	7.283	4,880

(d) weighted average number of units used as a denominator

		DIT Consolidated		DOT Consolidated		DRO Consolidated
	2006	2005	2006	2005	2006	2005
Weighted average number of units outstanding used in the calculation of basic and diluted earnings per unit			-2,772,613,360 - 1.970.295.165 - 2,772,613,360 - 2.214,289.196 - 2,772,613,360 -			- 1.366.041.195

note 42, business combinations

acquisition of DB RREEF Industrial Holdings LLC

Name of entity	Country of incorporation	Class of shares	Nature of business	Equity holding $\frac{10}{6}$
DB RREEF Industrial Holdings LLC	United States	Ordinarvi	- Property Trust

On 30 September 2004, DIT acquired 80 percent of DB RREEF Industrial Holdings, LLC. The operating results of this controlled entity have been included in the Income Statements since the date of acquisition. The acquired business contributed revenues of \$268,011,000 and net profit of \$102,876,000 to the consolidated result for the period 30 September 2004 to 30 June 2005.

If the acquisition had occurred on 1 July 2004, the Stapled Entities consolidated revenue and consolidated profit for the year ended 30 June 2005 would have been \$809,887,000 and \$396,031,000 respectively.

For the year ended 30 June 2006 \$342,185,000 of revenues and \$167,135,000 of profit have been included in the consolidated result.

Details of the acquisition are as follows:

2006 \$'000

1,446,780
12,400
43,210
(1,062,279)
(44,636)
(28, 422)
367,053
(73, 411)
293,642
3,443
297,085

297,085

(43, 210)
(43,210)
253,875

Name of entity	Country of incorporation		Class of shares Nature of business	Equity holding
$. A35555558588588585555555555555555555555$				(%)
DOT NZ Subtrust No 1	Australia	Ordinary.	-Property Trust	ଓର ବ

acquisition of controlled entity

On 4 August 2004, DOT acquired 99.9 percent of DOT NZ Subfrust No 1. The remaining 0.1 percent of the units were acquired by DOT NZ Subtrust No 2, a wholly owned sub trust of the Trust. The results of this controlled entity have been included in the Income Statements since the date of acquisition. The acquired business contributed revenues of \$406,000 and net profit of \$385,000 to the consolidated result for the period 4 August 2004 to 30 June 2005.

If the acquisition had occurred on 1 July 2004, there would have been no further impact on consolidated revenue and consolidated profit for the year ended 30 June 2005 as there were no operations at this time.

For the year ended 30 June 2006, \$17,880,000 of reversues and \$16,457,000 of profit have been included in the consolidated result.

Details of the acquisition are as follows:

	2005 \$'000
Fair value of identifiable net assets of controlled entity acquired
Loan to third party	4.959
Payables	(397)
	4,562
Less: Investment by DOT NZ Subtrust No 2	5
	4,557
Cash consideration	4,557
Outflow of cash to acquire controlled entity, net of cash acquired
Cash consideration	4.557
Less: Balances acquired
Cash assets

Outflow of cash	4,557

note 42, business combinations (continued)

acquisition of controlled entity (continued)

.wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww
Name of entity	Country of incorporation	Class of shares	Nature of business	Equity holding
				(%
.www./www.www.www.www.www.www.www.www.w
DOT NZ Subtrust No 2	Australia	Ordinary	- Property Trust

On 4 August 2004, the Trust acquired 100 percent of DOT NZ Subtrust No 2. The results of this controlled entity have been included in the Income Statements since the date of acquisition. The acquired business contributed no revenue and net losses of \$3,000 to the consolidated result for the period 4 August 2004 to 30 June 2005.

If the acquisition had occurred on 1 July 2004, there would have been no further impact on consolidated revenue and consolidated profit. for the year ended 30 June 2005 as there were no operations at this time.

For the year ended 30 June 2006, \$34,000 of revenue and \$36,000 of profit have been included in the consolidated result.

Details of the acquisition are as follows:

	2005 \$'000
Fair value of identifiable net assets of controlled entity acquired Investment in unit trust
Cash consideration
Outflow of cash to acquire controlled entity, net of cash acquired
Cash consideration
Less: Balances acquired
Cash assets

Outflow of cash

acquisition of controlled entity

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Name of entity	Country of incorporation	Class of	Nature of business	Equity holding
		shares		1%
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
			- Investment in
DB RREEF RENTS Trigit	Australia	Ordinarvi	property trust

On 27 January 2005, the Trust acquired one unit in DB RREEF RENTS Trust (RENTS). All units with a beneficial interest in RENTS assets are listed on the Australian Stock Exchange. The Trust owns one onit in RENTS that does not have a beneficial interest in the RENTS assets, but holds all voting rights in relation to RENTS. The results of this newly controlled entity have been included in the Income Statements since the date of acquisition.

note 43. explanation of transition to Australian Equivalents to IFRS

DB RREEF Industrial Trust

(a) Reconciliation of equity reported under previous Australian Generally Accepted Accounting Principles (AGAAP) to equity under Australian Equivalents to International Financial Reporting Standards (AIFRS)

At the date of transition to AIFRS: 1 July 2004

			Consolidated			Parent Entity
	Note(s)	Previous AGAAP	Effect of transition to AIFRS	AIFRS	Previous AGAAP	Effect of transition to AIFRS	AIFRS
		\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Current assets
Cash and cash equivalents		5,157		5,157	4.787		4,787
Receivables		2.937		2,937	43,369		43.369
Held for sale investment properties.		23,055		23.055	18.787		18,787
Other	$d(\mathbb{R})$	4,800	(2,624)	2,176	3,811	(2, 244)	1,567
Total current assets		35,949	(2,624)	33,325	70,754	(2, 244)	68,510
Non-current assets
investment properties	d(v)	885,980	(23,700)	862,280	580.207	(23.700)	556,507
tavestment in controlled eatities	đ(vii).				269.865	(1.777)	268.088
Property plant and equipment	d(v)		23.700	23,700	$\cdots$	23,700	23,700
Other	$d$ ( $ii$ )	10,705	(9,139)	1,566	9,178	(7,742)	1,436
Total non-current assets		896,685	(9,139)	887,546	859,250	(9,519)	849,731
Total assets		932,634	(11,763)	920,871	930.004	(11,763)	918,241
Current liabilities
Payables		11.004		11.004	8,503		8.503
Provisions		27.058		27.058	27.058	$\cdots$	27.058
Total current liabilities		38.062	m	38,062	35,561	m.	35,561
Non-current liabilities
interest bearing fiabilities		339,474		339,474	339,474	$\ddot{\phantom{a}}$	339,474
Other		1.076		1.076	947.		947
Total non-current liabilities		340,550	$\sim$	340,550	340,421	$\overline{\mathbf{v}}$	340,421
Total liabilities		378,612	$\overline{\phantom{a}}$	378,612	375,982	$\overline{\phantom{a}}$	375,982
Net assets		554,022	(11,763)	542,259	554,022	(11,763)	542,259
Eauity Equity attributable to equity holders of the parent:
Contributed equity		502.793		502.793	502,793		502.793
Reserves	d(iv)	50.261	(50.261)		47.519	(47.519)
Undistributed income		968	38,498	39,466.	3,710	35,756	39,466
Total equity	$\vec{G}(X)$	554,022	(11,763)	542,259	554,022	(11,763)	542,259

note 43. explanation of transition to Australian Equivalents to IFRS (continued)

DB RREEF Industrial Trust (continued)

			Consolidated			Parent Entity
	Note(s)	Previous AGAAP	Effect of transition to AIFRS	AIFRS	Previous AGAAP	Effect of transition to aifrs	AIFRS
		\$'000	\$'000	\$'000	\$'000	\$000	\$'000
Current assets
Cash and cash equivalents		5.577		5.577	4,039		4.039
Receivables		3,076		3,076	50,227		50,227
Other	전(组)	3,751	(653)	3,098	2,742	(220)	2,522
Total current assets		12,404	(653)	11,751	57,008	(220)	56,788
Non-current assets
Investment properties	d(iii)	961,355	(25,071)	936,284	647.071	(25, 819)	621,252
Property plant and equipment	div).		27.913	27.913		27.913	27.913
Other financial assets at fair value through profit and loss	d(vii)				269.284	(1,226)	268.058
Investments accounted for using the equity method	$\mathcal{C}(vi)$	192,297	(14,538)	177,759
Investment in associates	d(viii)				192.297	(14.538)	177.759
Loan with related parties		140,182		140,182	140,182		140,182
Other	전(淸)	7,551	(3,442)	4,109	5,873	(1,901)	3,972.
Total non-current assets		1,301,385	(15, 138)	1,286,247	1,254,707	(15, 571)	1,239,136
Total assets		1,313,789	(15,791)	1,297,998	1,311,715	(15,791)	1,295,924
Current liabilities
Payables		10.459		10.459	8.520		8.520
Interest bearing liabilities		354,338		354,338	354,338		354,338
Provisions		39,615		39,615	39,615		39,615
Other		1.121		1.121	1,121		1.121
Total current liabilities		405.533	$\ddot{\phantom{1}}$	405.533	403,594	www.	403.594
Non-current liabilities
Interest bearing liabilities		132,199		132,199	132,199		132,199
Other		4,108		4,108	3,973.		3,973.
Total non-current liabilities		136,307		136,307	136,172		136,172
Total liabilities		541,840	m.	541,840	539,766	w	539,766
Net assets		771,949.	(15,791)	756,158	771,949	(15,791)	756,158
Equity Equity attributable to equity holders of the parent:
Contributed equity		668,995	$\cdots$	668,995	668,995		668.995
Reserves	$\mathcal{O}(i\mathsf{V})$	97.853	(98.502)	(649)	102,954	(102.954)
Undistributed income		5.101	82.711	87,812		87.163	87,163
Total equity	d(x)	771,949	(15.791)	756,158	771,949	(15,791)	756,158

(b) Reconciliation of profit reported under previous AGAAP to profit under AIFRS Reconciliation of profit for the year ended 30 June 2005.

			Consolidated			Parent Entity
	Note(s)	Previous	Effect of	AIFRS	Previous	Effect of	AIFRS
		AGAAP	transition to AIFRS		AGAAP	transition to AIFRS
		\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Revenue from ordinary activities
Property revenue	d(i). (iii)	94,903	(1.148)	93.755	62.065	(529)	61.536
Distribution income					30.285	(30.285)
Dividend income					1.715		1,715
interest revenue		282		282	220		220
Total revenue from ordinary activities		95,185	(1.148)	94,037	94,285	(30, 814)	63,471
Proceeds from sale of investment
properties	d(ii)	26.200	(26.200)		22.000	(22.000)
Net gain on safe of investment
properties	d(i), (ii)		979	979		1,168	1.168
Share of net profits of associates
accounted for using the equity
method	$d(v_i)$	20,078	31.443	51.521
tacrement/(decrement) on	d(iii). (iv).
revaluation of investments	(vii), (viii)	3.795	27,586	31,381	(58)	97.898	97,317
Net foreign exchange gain		29		29	9.461		9.461
Total income		145,287	32,660	177,947	125,165	46.252	171,417
Expense from ordinary activities
Property expenses	d(iii)	(17.683)	632	(17.051)	(11.517)	393	(11.324)
Responsible Entity fees		(5.491)		(5.491)	(5,49)		(5,491)
Finance costs		(24, 627)		(24, 627)	(24, 626)		(24, 626)
Book value of property
investments sold	d(ii)	(25.221)	25,221		(20.832)	20.832
Costs associated with
the Transaction		(14,729)		(14.729)	(14,729)		(14,729)
Other expenses		(1,34)		(1,34)	(1,188)		(1,188)
Total expenses from ordinary activities		(89,092)	25,853	(63,239)	(78, 383)	21,025	(57, 358)
Net profit attributable to unitholders		56.195	58.513	114,708	46,782	67.277	114,059

note 43, explanation of transition to Australian Equivalents to IFRS (continued)

DB RREEF Industrial Trust (continued)

(c) Reconciliation of the Cash Flow Statements for DIT consolidated

The adoption of AIFRS has not resulted in any material adjustments to the Cash Flow Statements.

(d) Notes to the reconciliation for the Trust

(i) Rental revenue

Under AGAAP, the amount of rental revenue recognised in each reporting period was determined according to the contracted amount owed by each tenant for that reporting period.

AASB 117: Leases, requires rental revenues from leases with fixed rent review clauses to be straight-lined over the life of the lease. This will result in changes to rental revenue recognised in each reporting period, and the recognition of a straight-lining asset, which will be included as part of the book value of the property to which if relates. However, these will be offset by a notional fair value. adjustment to income and to investment properties to bring the balance of the investment properties back to fair value, resulting in no impact to the net profit and net assets of the Trust.

The effect on the Trust is: For the year ended 30 June 2005 There is no effect on the Trust.

The effect on the parent entity is: For the year ended 30 June 2005 There is no effect on the parent entity.

(ii) Revenue disclosures in relation to the sale of non-current assets Under AGAAP, gross proceeds from the sale of non-current assets were recognised as income and the carrying amount of the assets sold was recognised as an expense. Under AIFRS, the revenue recognised in relation to the sale is the net gain on safe.

The effect on the Trust is:

For the year ended 30 June 2005

Proceeds from safe of investment properties of \$26,200,000, and book value of property investments sold of \$25,221,000 is no longer shown in the Income Statements, with the net amount of \$979,000. being shown instead as net gain on sale of investment properties.

The effect on the parent entity is:

For the year ended 30 June 2005

Proceeds from safe of investment properties of \$22,000,000, and book value of property investments sold of \$20,832,000 is no longer shown in the Income Statements, with the net amount of \$1,168,000. being shown instead as net gain on sale of investment properties.

(iii) Lease incentives

Under AGAAP, the policy of the Trust was to capitalise rent-free incentives and leasing fees and amortise these over the life of the lease with the amortisation expense being shown as part of property expenses. The amortised balances of these incentives were shown as an asset separate to the properties to which they related. Fit-out and cash incentives owned by the lessor were capitalised into the book values of the properties to which they related.

Under AASB 117: Leases, and UIG 115: Operating Leases -Incentives, all lease incentives are required to be capitalised and amortised against property revenue over the life of lease to which they relate. All incentives will now be incorporated into the property book values. Amortisation recorded on these incentives will be offset by a potional fair value adjustment to the Income Statements and to investment properties to bring the balance of the investment. properties back to fair value, resulting in no impact to the net profit of the Trust.

The effect on the Trust is:

At 3 July 2004

Other assets -- current decreased by \$2,624,000, other assets -pon-current decreased by \$9.139.000 and undistributed incomedecreased by \$11,763,000.

At 30 June 2005

Other assets - current decreased by \$653,000, other assets non-current decreased by \$3,442,000, investment properties increased by \$2,473,000 and undistributed income decreased by \$1,622,000. \$369,000 of the increase in investment properties. has been adjusted through revaluations since the transition date.

For the year ended 30 June 2005.

Property expenses decreased by \$632,000, property revenue decreased by \$1,148,000 and increment on revaluation of investments increased by \$898,00, with the remainder being taken to investment properties.

The effect on the parent entity is:

At 1 July 2004

Other assets -- current decreased by \$2,244,000, other assets -non-current decreased by \$7,742,000 and undistributed income. decreased by \$9,986,000.

At 30 June 2005

Other assets - current decreased by \$220,000, other assets non-current decreased by \$1,901,000 and investment properties. increased by \$2,121,000, \$27,000 of the increase in investment. properties has been adjusted through revaluations since the transition date.

For the year ended 30 June 2005

Property expenses decreased by \$193,000, property revenue. decreased by \$529,000 and increment on revaluation of investments increased by \$322,000 with the remainder being taken to investment properties.

(iv) Investment property

Under AGAAP, revaluation increments and decrements on investment properties were recognised in the asset revaluation. reserve. Under AASB 140: Investment Property, such revaluation increments and decrements are recognised through the Income Statements

Further on transition to AIFRS, the balance of the asset revaluation. reserve was transferred to undistributed income.

The effect on the Trust is:

At 1 July 2004

The asset revaluation reserve was decreased by \$50,261,000 and undistributed income increased by \$50,261,000.

At 30 June 2005

The asset revaluation reserve was decreased by \$52,520,000 and undistributed income increased by \$25,832,000 with the remainder being taken to the Income Statements.

For the year ended 30 June 2005

The increment on revaluation of investments has increased by \$26,688,000.

The effect on the parent entity is:

At 1 July 2004

The asset revaluation reserve was decreased by \$47,519,000. and undistributed income increased by \$47,519,000.

At 30 June 2005

The asset revaluation reserve was decreased by \$48,789,000 and undistributed income increased by \$21,674,000 with the remainder being taken to the Income Statements.

For the year ended 30 June 2005

The increment on revaluation of investments has increased by \$27,115,000.

(v) Property, plant and equipment

Under AGAAP, properties under construction were included in, and accounted for, as investment properties. Under AASB 116: Property, Plant and Equipment, properties under construction have been reclassified in the balance sheet as property, plant and equipment.

The effect on the Trust is:

At 1 3ulv 2004

Investment properties decreased by \$23,700,000 and property. plant and equipment increased by \$23,700,000.

At 30 June 2005

lavestment properties decreased by \$27,913,000 and property. plant and equipment increased by \$27,913,000.

The effect on the parent entity is:

At 1 3ulv 2004

Investment properties decreased by \$23,700,000 and property. plant and equipment increased by \$23,700,000.

At 30 June 2005

Investment properties decreased by \$23,913,000 and property, plant and equipment increased by \$27,913,000.

(vi) investments accounted for using the equity method

All investments accounted for using the equity method held by the Trust now apply the AIFRS standards. Under AASB 140: Investment Property, revaluation increments and decrements are now shown. in the Income Statements. Also, under AASB 112: Income Taxes. a deferred tax expense is recognised for tax depreciation allowances. and revaluations of investment properties held in the US REIT.

As a result, these adjustments are now reflected in the share of net profits of associates using the equity method on the income-Statements, and the investments accounted for using the equity method on the Balance Sheets.

Further on transition to AIFRS, the balance of the asset revaluation reserve was transferred to undistributed income.

The effect on the Trust is:

At 1 July 2004 There is no effect on the Trust.

At 30 June 2005

The asset revaluation reserve decreased by \$45,982,000. investments accounted for using the equity method decreased by \$14,538,000 with the adjustment taken to the Income Statements.

For the year ended 30 June 2005

Share of net profits of associates accounted for using the equity method has increased by \$31,443,000.

The effect on the parent entity is:

At 1 July 2004 There is no effect on the parent entity.

At 30 June 2005 There is no effect on the parent entity.

For the year ended 30 June 2005 There is no effect on the parent entity.

(vii) Investments in controlled entities

All investments in controlled entities held by the parent entity now apply the AIFRS standards. This has resulted in a reduction of the net asset value of the underlying sub-trusts. Accordingly, the parenteatity has revalued its investment in controlled eatities, which is now reflected in the increment on revaluation of investments on the Income Statements, and the investments in controlled entities. on the Balance Sheets.

The effect on the Trust is:

At 1 July 2004 There is no effect on the Trust. At 30 June 2005

There is no effect on the Trust.

For the year ended 30 June 2005. There is no effect on the Trust.

The effect on the parent entity is:

At 1 Jely 2004 Investments in controlled entities decreased by \$1,777,000. and undistributed income decreased by \$1,777,000.

At 30 Jame 2005

Investments in controlled entities decreased by \$1,226,000 with the adjustment taken to the Income Statements.

For the year ended 30 June 2005. The distributions received decreased by \$30,285,000 and the increment on revaluation of investments has increased by \$30,835,000.

(viii) Investments in associates

Under AGAAP, revaluation increments and decrements on investments in associates were recognised in the asset revaluation. reserve. Under AASB 139: Financial Instruments - Recognition and Measurement, such revaluation increments and decrements are recognised through the Income Statements.

Further on transition to AIFRS, the balance of the asset revaluation. reserve was transferred to undistributed income.

The effect on the Trust is:

At 1 Jely 2004 There is no effect on the Trust.

At 30 3une 2005 There is no effect on the Trust.

For the year ended 30 June 2005. There is no effect on the Trust.

The effect on the parent entity is:

At 1 July 2004 There is no effect on the parent entity.

At 30 June 2005

The asset revaluation reserve decreased by \$54,165,000, investments in associates decreased by \$14,538,000 with the adjustment taken to the Income Statements.

For the year ended 30 June 2005. The increment on revaluation of investments has increased by \$39,626,000.

note 43, explanation of transition to Australian Equivalents to IFRS (continued)

DB RREEF Industrial Trust (continued)

(d) Notes to the reconciliation for the Trust (continued)

(ix) Derivatives

Under previous AGAAP, derivatives were not recorded on balance sheet but disclosed in the notes to the accounts. The Trust has elected not to apply hedge accounting under AASB139: Financial Instruments - Recognition and Measurement. Accordingly, derivatives including interest rate swaps and foreign exchange forward contracts are measured at fair value through the income Statements and recognised on the Balance Sheets. However, the Trust has adopted the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 July 2005. Therefore the Trust has applied previous AGAAP in the comparative information on financial instruments within the scope of AASB 132 and AASB 139.

At 1 July 2005 for the Trust:

A derivative financial asset of \$3,717,000 and a derivative financial liability of \$6,732,000 was recorded to recognise the fair value of interest rate swaps, with the net of \$3.015.000 being taken to undistributed income.
A derivative financial asset of \$2,858,000 and a derivative financial flability of \$23,000 was recorded to recognised the fair value of foreign $\mathscr{H}$ exchange contracts, with the net of \$2,835,000 being taken to undistributed income.
Investments accounted for using the equity method increased by \$652,000 to record a derivative financial asset, and undistributed income increased by \$652,000.
Investments accounted for using the equity method increased by \$247,000 to record a deferred tax asset which arose upon the recognition $\mathcal{H}$ of a derivative financial asset, and undistributed income increased by \$247,000.

At 1 July 2005 for the parent entity:

A derivative financial asset of \$3,717,000 and a derivative financial liability of \$6,732,000 was recorded to recognise the fair value of interest $\mathscr{B}^{\mathbb{C}}$ rate swaps, with the net of \$3,015,000 being taken to undistributed income.
A derivative financial asset of \$2,858,000 and a derivative financial flability of \$23,000 was recorded to recognised the fair value of foreign exchange contracts, with the net of \$2,835,000 being taken to undistributed income.
Investments in associates increased by \$652,000 to record a derivative financial asset, and undistributed income increased by \$652,000.
Investments in associates increased by \$247,000 to record a deferred tax asset which arose upon the recognition of a derivative financial $\mathcal{B}6$ asset, and undistributed income increased by \$247.000.

$(x)$ Equity

The effect on equity of the changes set out above are as follows:

		Consolidated		Parent Entity
	1 Jul 2004 \$'000	30 Jun 05 \$'000	1 Jul 2004 \$'000	30 Jun 05 \$'000
Total equity under AGAAP	554.022	771.949	554.022	771,949
AIFRS adjustments to equity:
investment properties		(29.166)	(23.700)	(25.819)
Property plant and equipment.	$\cdots$	27.913	23.700	27.913
Bovestments in controlled entities	TELE		(1.777)	(1.226)
Investments in associates				(14.538)
investments accounted for using the equity method.		(14.538)
Other assets	(11.763)		(9.986)	(2.121)
Total equity under AIFRS	542.259	756.158	542.259	756.158

DB RREEF Office Trust

(a) Reconciliation of equity reported under previous Australian Generally Accepted Accounting Principles (AGAAP) to equity under Australian
Equivalents to International Financial Reporting Standards (AIFRS).

At the date of transition to AIFRS: 1 July 2004

			Consolidated			Parent Entity
	Note(s)	Previous Agaap	Effect of transition to AIFRS	AIFRS	Previous AGAAP	Effect of transition to AIFRS
		\$000	\$'000	\$'000	\$'000	\$'000
Current assets
Cash and cash equivalents		5.139		5.139	3.738
Receivables		3.759		3.759	271,420
Other	d(iii)	7,314	(2.790)	4.524	5.367	(1.772)
Total current assets		16,212	(2,790)	13,422	280,525	(1,772)
Non-current assets
investment properties		2.290.951		2.290.951	1.590.042
investments in controlled entities	d(vi)				476,084	(4.697)
lavestments accounted for using
the equity method		40,234		40.234
Other	d(iii)	15,574	(14.864)	710	11.715	(11.187)
Total non-current assets		2,346,759	(14, 864)	2,331,895	2,077,841	(15, 884)	2,061,957
Total assets		2,362,971	(17,654)	2,345,317	2,358,366	(17,656)	2,340,710
Current liabilities
Payables		19,229		19.229	16.514
Provisions		52.810		52,810	52,810
Total current liabilities		72,039	w.	72,039	69,324	$\ddot{\phantom{1}}$
Non-current liabilities
Interest bearing liabilities		889.500		889,500	889.500
Other		663		663	5.950
Total non-current liabilities		890,163	u.	890,163	895,450	$\overline{a}$
Total liabilities		962,202	w	962,202	964,774	$\ddot{\phantom{1}}$
Net assets		1,400,769	(17, 654)	1,383,115	1,393,592	(17,656)
Equity
Equity attributable to equity
holders of the parent:
Contributed equity		1.365.325		1.365,325	1.365.325
Reserves	d(iv), (v), (vi)	32,539	(32.539)		28.267	(28, 267)
		2,905	14,885	17.790		10,611
Undistributed income

note 43. explanation of transition to Australian Equivalents to IFRS (continued)

DB RREEF Office Trust (continued)

At the end of the last reporting period under previous AGAAP: 30 June 2005

			Consolidated	Parent Entity
	Note(s)	Previous AGAAP	Effect of transition to AIFRS	AIFRS	Previous AGAAP	Effect of transition to aifrs	AIFRS
		\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Current assets
Cash and cash equivalents		9,850		9.850	7,958		7.958
Receivables		3.483		3.483	91.674		91,674
Loan to third parties		5,006		5,006
Other	전(淸)	5,484	(1,673)	3,811	4,183	(1,168)	3,015
Total current assets		23,823	(1,673)	22,150	103,815	(1,168)	102,647
Non-current assets
Investment properties	d(ii)	2,446,810	2.241	2,449,051	1,683,432	1,706	1,685.138
Investments in controlled entities	đ(vi)				519.856	(1,624)	518,232
Investments accounted for
using the equity method	$\text{G}(\text{V})$	36,852	(243)	36,609
Loan with related parties		207,354		207,354	207,354		207,354
Other	d(ii)	7,310	(6,353)	957	5.707	(4,940)	767
Total non-current assets		2,698,326	(4,355)	2,693,971	2,416,349	(4, 858)	2,411,491
Total assets		2,722,149	(6,028)	2,716,121	2,520,164	(6,026)	2,514,138
Current liabilities
Payables		24.050		24,050	22,975		22,975
Provisions		35,517		35,517	35,517		35,517
Total current liabilities		59.567		59,567	58,492	w	58,492
Non-current liabilities
Interest bearing liabilities		952,449		952,449	952,449		952,449
Loan with related parties		55,684		55.684	55,684		55,684
Other		694		694	4,611		4,611
Total non-current liabilities		1,008,827		1,008,827	1,012,744	ww.	1,012,744
Total liabilities		1,068,394		1,068,394	1,071,236	÷	1,071,236
Net assets		1,653,755	(6,028)	1,647,727	1,448,928	(6,026)	1,442,902
Equity Equity attributable to equity
holders of the parent:
Contributed equity Reserves	$d(iv)$ , $(vi)$	1,359,854 91,856	(91,818)	1,359,854 38	1,359,854 87.583	(87,583)	1,359,854
Undistributed income		3.540	85,790	89,330	1.491	81,557	83,048
Total equity attributable
to unitholders		1,455,250	(6,028)	1,449,222	1,448,928	(6,026)	1,442,902
Other minority interest		198,505		198,505
Total equity	d(x)	1,653,755	(6.028)	1,647,727	1,448,928	(6,026)	1,442,902

(b) Reconciliation of profit reported under previous AGAAP to profit under AIFRS Reconciliation of profit for the year ended 30 June 2005.

AIFRS \$'000 138,474 932 139,406










127,307 258

266,971

(32.865)
(7.383)
(53,035)


(12.480)
(2.855)

(108, 618)
158,353

note 43, explanation of transition to Australian Equivalents to IFRS (continued)

DB RREEF Office Trust (continued)

(c) Reconditiation of the Statement of Cash Flows for the DB RREEF Office Trust

The adoption of AIFRS has not resulted in any material adjustments to the Statement of Cash Flows.

(d) Notes to the reconciliation for the DB RREEF Office Trust

(i) Rental revenue

Under AGAAP, the amount of rental revenue recognised in each reporting period was determined according to the contracted amount owed by each tenant for that reporting period.

AASB 117: Leases, requires rental revenues from leases with fixed rent review clauses to be straight-lined over the life of the lease. This will result in changes to rental revenue recognised in each reporting period, and the recognition of a straight-lining asset, which will be included as part of the book value of the property to which it relates. However, these will be offset by a notional fair value adjustment to income and to investment properties to bring the batance of the investment properties back to fair value, resulting in no impact to the net profit and net assets of the Trust.

The effect on the Trust is:

For the year ended 30 June 2005 Rental revenue increased by \$7,370,000, and increment on revaluation of investments decreased by \$7,370,000.

The effect on the parent entity is:

For the year ended 30 June 2005 Rental revenue increased by \$6,404,000, and increment on revaluation of investments decreased by \$6,404,000.

(ii) Revenue disclosures in relation to the sale of non-current assets

Under AGAAP, gross proceeds from the sale of non-current assets were recognised as income and the carrying amount of the assets sold was recognised as an expense. Under AIFRS, the revenue recognised in relation to the sale is the net gain on sale.

The effect on the Trust is:

For the year ended 30 June 2005 There is no effect on the Trust.

The effect on the parent entity is: For the year ended 30 June 2005 There is no effect on the parent entity.

(iii) Lease incentives

Under AGAAP, the policy of the Trust was to capitalise rent free incentives and leasing fees and amortise these over the life of the lease with the amortisation expense being shown as part of property expenses. The amortised balances of these incentives was shown as an asset separate to the properties to which they related. Fit-out and cash incentives owned by the fessor were capitalised into the book values of the properties to which they related.

Under AASB117: Leases, and UIG 115: Operating Leases -Incentives, all lease incentives are required to be capitalised and amortised against property revenue over the life of lease to which they relate. All incentives will now be incorporated into the property book values. Amortisation recorded on these incentives will be offset by a notional fair value adjustment to the income Statements and to

investment properties to bring the balance of the investment. properties back to fair value, resulting in no impact to the net andit of the Trust.

The effect on the Trust is:

At 1 July 2004

Other assets -- current decreased by \$2,790,000, other assets -non-current decreased by \$14,864,000 and undistributed incomedecreased by \$17,654,000.

At 30 June 2005

Other assets -- current decreased by \$1,673,000, other assets -non-current decreased by \$6,353,000, investment properties increased by \$8,346,000 and undistributed income increased by \$320,000. \$6,105,000 of the increase in investment properties. has been adjusted through revaluation since the transition date.

For the year ended 30 June 2005

Property expenses decreased by \$859,000, property revenue decreased by \$7,796,000 and increment on revaluation of investments increased by \$3,059,000, with the remainder being taken to investment properties.

The effect on the parent entity is:

At 1 July 2004

Other assets - current decreased by \$1,772,000, other assets non-current decreased by \$11,187,000 and undistributed incomedecreased by \$12,959,000.

At 30 June 2005

Other assets -- current, decreased by \$1,168,000, other assets -non-current decreased by \$4,940,000, investment properties increased by \$6,108,000, \$4,402,000 of the increase in investment properties has been adjusted through revaluation. since the transition date.

For the year ended 30 June 2005

Property expenses decreased by \$558,000, property revenue decreased by \$5,910,000 and increment on revaluation of investments decreased by \$4,089,000 with the remainder being taken to investment properties.

(iv) Investment property

Further on transition to AIFRS, the balance of the asset revaluation reserve was transferred to undistributed income.

The effect on the Trust is:

At 1 July 2004

The asset revaluation reserve was decreased by \$30,539,000. and undistributed income increased by \$30,539,000.

At 30 June 2005

The asset revaluation reserve was decreased by \$91,818,000, undistributed income increased by \$157,000 with the remainder being taken to the Income Statements.

For the year ended 30 June 2005

The increment on revaluation of investments has increased by \$85,302,000.

The effect on the parent entity is:

At 1 3uly 2004

The asset revaluation reserve was decreased by \$45,724,000 and undistributed income increased by \$45,724,000.

At 30 June 2005

The asset revaluation reserve was decreased by \$105,670,000, undistributed income increased by \$22,489,000 with the remainder being taken to the Income Statements.

For the year ended 30 June 2005

The increment on revaluation of investments has increased by \$88,221,000.

(v) Investments accounted for using the equity method

Further on transition to AIFRS, the balance of the asset revaluation reserve was transferred to undistributed income.

The effect on the Trust is:

At 1: Bully 2004

The asset revaluation reserve was decreased by \$2,000,000 and undistributed income increased by \$2,000,000.

At 30 June 2005

lavestments accounted for using the equity method decreased by \$243,000 with the adjustment taken to the Income Statements.

For the year ended 30 June 2005

The share of net losses of associates accounted for using the equity method has increased by \$4,114,000 and the increment. on revaluation of investments has increased by \$3,870,000.

The effect on the parent entity is:

At 1 Jarly 2004 There is no effect on the parent entity.

At 30 June 2005 There is no effect on the parent entity.

For the year ended 30 June 2005 There is no effect on the parent entity.

(vi) Investments in controlled entities

All investments in controlled entities held by the Trust now apply the AIFRS standards. Under AASB 140: Investment Property, revaluation increments and decrements are now shown in the Income Statements.

As a result, these adjustments are now reflected in the increment on revaluation of investments on the facome Statements, and the investments in controlled entities on the Balance Sheets.

Further on transition to AIFRS, the balance of the asset revaluation reserve was transferred to andistributed income.

The effect on the Trust is: At 1 Jarly 2004 There is no effect on the Trust.

At 30 June 2005 There is no effect on the Trust.

For the year ended 30 June 2005. There is no effect on the Trust.

The effect on the parent entity is:

At 1 July 2004

The asset revaluation reserve was increased by \$17,457,000. investments in controlled entities decreased by \$4,697,000. and undistributed income decreased by \$22,154,000.

At 30 June 2005

The asset revaluation reserve was increased by \$18,087,000, undistributed income decreased by \$17,457,000, investments in controlled entities has decreased by \$1,624,000 with the remainder being taken to the income Statements.

For the year ended 30 June 2005.

Distribution revenue has decreased by \$47,138,000 and the increment on revaluation of investments has increased by \$49,579,000.

(vii) Derivatives

Linder previous AGAAP, derivatives were not recorded on balance. sheet but disclosed in the notes in the accounts. The Trust has elected not to apply hedge accounting ender AASB139: Financial Instruments, Recognition and Measurement, Accordingly, derivatives including interest rate swaps and foreign exchange forward contracts are measured at fair value through the Income Statements and recognised on the Balance Sheets. However, the Trust has adopted the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 July 2005. Therefore the Trust has applied previous AGAAP in the comparative information on financial instruments within the scope of AASB 132 and AASB 139.

At 1 July 2005 for the Trust:

* A derivative financial asset of \$5,590,000 and a derivative financial liability of \$7,652,000 was recorded to recognise. the fair value of interest rate swaps with the net of \$2,062,000. being taken to undistributed income.
A derivative financial fiability of \$66,000 was recorded to recognise the fair value of foreign exchange contracts, with the net of \$66,000 being taken to undistributed income.

At 1 July 2005 for the parent entity:

* A derivative financial asset of \$5,590,000 and a derivative financial liability of \$7,652,000 was recorded to recognise the fair value of interest rate swaps with the net of \$2,062,000. being taken to undistributed income.
* A derivative financial flability of \$66,000 was recorded to recognise the fair value of foreign exchange contracts, with the net of \$66,000 being taken to undistributed income.

(viii) Valuation of sub trust

Under previous AGAAP, DOT's sub-trust, DB RREEF RENTS Trust. recorded its investment in DOT Commercial Trust at cost. On 1 3sty 2005, DOT applied AASB 132 and AASB 139, and the basis of valuation of this investment was changed to fair value. The impact of this change at 1 July 2005 was to increase other minority interest by \$6,368,000 with a corresponding decrease. le undistributed income

note 43, explanation of transition to Australian Equivalents to IFRS (continued)

DB RREEF Office Trust (continued)

(d) Notes to the reconciliation for the DB RREEF Office Trust (continued)

(ix) Equity

The effect on equity of the changes set out above are as follows:

	Consolidated		Parent Entity
	1 Iul 2004 \$'000	30 Jun 2005 \$000	1 Jul 2004 \$'000	30 Jun 2005 \$'000
Total equity under AGAAP.	1,400.769	1.653.755	1.393.592	1.448.928
AIFRS adjustments to equity:
investment properties		(5.785)		(4.402)
investments in controlled entities.			(4.697)	(1.624)
investments accounted for using the equity method.		(243)
Other assets	(17.654)		(12.959)
Total equity under AIFRS	1,383,115	1,647,727	1,375,936	1,442,902

DB RREEF Operations Trust

The adoption of AIFRS has not resulted in any material adjustments to the Balance Sheets.

(b) Reconciliation of profit reported under previous AGAAP to profit under AIFRS

The adoption of AIFRS has not resulted in any material adjustments to the Income Statements.

(c) Reconciliation of the Statement of Cash Flows for the Trust

The adoption of AIFRS has not resulted in any material adjustments to the Cash Flow Statements.

(d) Notes to the reconciliation for the Trust

(i) Derivatives

Under previous AGAAP, derivatives were not recorded on the Balance Sheets but disclosed in the notes to the accounts. DRO has elected not to apply hedge accounting under AASB 139: Financial Instruments - Recognition and Measurement. Accordingly, derivatives including interest rate swaps and foreign exchange forward contracts are measured at fair value through the income Statements and recognised on the Balance Sheets, However, the Trust has adopted the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 July 2005. Therefore DRO has applied previous AGAAP in the comparative information on financial instruments within the scope of AASB 132 and AASB 139.

At 1 July 2005 for the Trust:

A derivative financial liability of \$13,999,000 and a derivative financial asset of \$13,350,000 was recorded to recognise the fair value of interest rate swaps with the net of \$649,000 being taken to undistributed income.
A derivative financial asset of \$5,762,000 and a derivative financial liability of \$5,762,000 was recorded to recognise the fair value of foreign exchange contracts, with the no net movement being taken to undistributed income.
$\alpha$ An additional deferred tax asset of \$196,000 was recorded to recognise the tax impact of the value of derivative financial instruments, with the adjustment taken to undistributed income.

At 1 July 2005 for the parent entity:

A derivative financial fiability of \$13,999,000 and a derivative financial asset of \$13,350,000 was recorded to recognise the fair value $\mathcal{L}$ of interest rate swaps with the net of \$649.000 being taken to undistributed income.
A derivative financial asset of \$5,762,000 and a derivative financial liability of \$5,762,000 was recorded to recognise the fair interest rate swaps with the no net movement being taken to undistributed income.
An additional deferred tax asset of \$196,000 was recorded to recognise the tax impact of the value of derivative financial instruments, $^{26}$ with the adjustment taken to undistributed income.

directors' declaration

DR RREEF INDUSTRIAL TRUST

The Directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Industrial Trust (the Trust) declare that the financial statements and notes set out on pages 16 to 102:

(i) comply with applicable Australian Equivalents to International Financial Reporting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
(ii) give a true and fair view of the Trust's and consolidated entity's financial position as at 30 June 2006 and of their performance, as represented by the results of their operations and their cash flows, for the year ended on that date.

ta the Directors' opinion:

(a) the financial statements and notes are in accordance with the Corporations Act 2001;
(b) there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and
(c) the Trast has operated in accordance with the provisions of the Constitution dated 22 December 1999 (as amended) during the year ended 30 June 2006.

The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the Directors.

$C$ hir $\beta$

Christopher T Beare Chair Sydney 22 August 2006

directors' declaration

DR RREEF OFFICE TRUST

The Directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Office Trust (the Trust) declare that the financial statements and notes set out on pages 16 to 102:

(i) comply with applicable Australian Equivalents to International Financial Reporting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
(ii) give a true and fair view of the Trust's and consolidated entity's financial position as at 30 June 2006 and of their performance, as represented by the results of their operations and their cash flows, for the year ended on that date.

In the Directors' opinion:

(a) the financial statements and notes are in accordance with the Corporations Act 2001;
(b) there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and
(c) the Trust has operated in accordance with the provisions of the Constitution dated 1 December 1999 (as amended) during the year ended 30 June 2006.

The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the Directors.

$C$ Lis $\beta$

Christopher T Beare Chair Sydney 22 August 2006

directors' declaration DR RREEF OPERATIONS TRUST

The Directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Operations Trust (the Trust) declare that the financial statements and notes set out on pages 16 to 102.

(i) comply with applicable Australian Equivalents to International Financial Reporting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
(ii) give a true and fair view of the Trust's and consolidated entity's financial position as at 30 June 2006 and of their performance, as represented by the results of their operations and their cash flows, for the year ended on that date.

ta the Directors' opinion:

(a) the financial statements and notes are in accordance with the Corporations Act 2001;
(b) there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and

(c) the Trast has operated in accordance with the provisions of the Constitution dated 11 August 2004 during the year ended 30 June 2006.

The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the Directors.

$C$ her $A$

Christopher T Beare Chair Sydney 22 August 2006

indopandant auditor's report

DR RREEF INDUSTRIAL TRUST

PRICEWATERHOUSE COPERS I

Independent audit report to the unitholders of DB RREEF Industrial Trust

PricawaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8266 0000 Facsimile +61.2 8266.9999

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Industrial Trust and the DB RREEF Industrial Trust Group (defined below) for the financial year ended 30 June 2006 included on DB RREEF Industrial Trust's web site. The directors of DB RREEF Funds Management Limited (the Responsible Entity of the Trust) are responsible for the integrity of the DB RREEF Industrial Trust's web site. We have not been engaged to report on the integrity of this web site. The audit report refers only to the financial report identified below. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this web site.

Audit opinion

In our opinion, the financial report of DB RREEF Industrial Trust:

gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the ø financial position of DB RREEF Industrial Trust and the DB RREEF Industrial Trust Group (defined below) as at 30 June 2006 and of the results of their performance for the year ended on that date, and
is presented in accordance with Corporations Act 2001 in Australia, Accounting Standards and other mandatory financial reporting requirements in Australia, and the CorporationsRegulations 2001.

This opinion must be read in conjunction with the rest of our audit report.

Scope

The financial report and directors' responsibility

The financial report comprises the balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors' declaration for both DB RREEF Industrial Trust (the Trust) and the DB RREEF Industrial Trust Group (the consolidated entity), for the year ended 30 June 2006. The consolidated entity comprises both the Trust and the entities it controlled during that period.

The directors of DB RREEF Funds Management Limited are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.

PRICEWATERHOUSE COPERS

Audit approach

We conducted an independent audit in order to express an opinion to the unitholders of the Trust. Our audit was conducted in accordance with Australian Auditing Standards, in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected. For further explanation of an audit, visit our website http://www.pwc.com/au/financialstatementaudit.

We nerformed procedures to assess whether in all material respects the financial report presents fairly, in accordance with Corporations Act 2001 in Australia, Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the Trust's and the consolidated entity's financial position, and their performance as represented by the results of their operations, changes in equity and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

Our audit did not involve an analysis of the prudence of business decisions made by the directors of the Responsible Entity or management.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements.

nconorterhouse Coopen

PricewaterhouseCoopers

DA Prothero Partner

Sydney 22 August 2006

indopendent auditor's report

DB RREEF OFFICE TRUST

PRICEWATERHOUSE COPERS I

Independent audit report to the unitholders of DB RREEF Office Trust

PricewaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Office Trust and the DB RREEF Office Trust Group (defined below) for the financial year ended 30 June 2006 included on DB RREEF Office Trust's web site. The directors of DB RREEF Funds Management Limited (the Responsible Entity of the Trust) are responsible for the integrity of the DB RREEF Office Trust's web site. We have not been engaged to report on the integrity of this web site. The audit report refers only to the financial report identified below. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this web site.

Audit opinion

In our opinion, the financial report of DB RREEF Office Trust:

gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the A financial position of DB RREEF Office Trust and the DB RREEF Office Trust Group (defined below) as at 30 June 2006 and of the results of their of their performance for the vear ended on that date, and
is presented in accordance with Corporations Act 2001 in Australia, Accounting Standards and other mandatory financial reporting requirements in Australia, and the CorporationsRegulations 2001.

This opinion must be read in conjunction with the rest of our audit report.

Scope

The financial report and directors' responsibility

The financial report comprises the balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors' declaration for both DB RREEF Office Trust (the Trust) and the DB RREEF Office Trust Group (the consolidated entity), for the year ended 30 June 2006. The consolidated entity comprises both the Trust and the entities it controlled during that period.

PRICEWATERHOUSE COPERS CO

Audit approach

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with Corporations Act 2001 in Australia, Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the Trust's and the consolidated entity's financial position, and their performance as represented by the results of their operations, changes in equity and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by the directors of the Responsible Entity or management.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional-ethical pronouncements.

usualentros logon

PricewaterhouseCoopers

DA Prothero Partner

Sydney 22 August 2006

indopandant auditor's report

DR RREEF OPERATIONS TRUST

PriceWATERHOUSE(COPERS ®

Independent audit report to the unitholders of DB RREEF Operations Trust

Matters relating to the electronic presentation of the audited financial report

Audit opinion

In our opinion, the financial report of DB RREEF Operations Trust:

gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of DB RREEF Operations Trust and the DB RREEF Operations Trust Group (defined below) as at 30 June 2006 and of the results of their performance for the year ended on that date, and
is presented in accordance with Corporations Act 2001 in Australia, Accounting Standards and other mandatory financial reporting requirements in Australia, and the CorporationsRegulations 2001.

This opinion must be read in conjunction with the rest of our audit report.

Scope

The financial report and directors' responsibility

The financial report comprises the balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors' declaration for both DB RREEF Operations Trust (the Trust) and the DB RREEF Operations Trust Group (the consolidated entity), for the year ended 30 June 2006. The consolidated entity comprises both the Trust and the entities it controlled during that period.

Liability limited by a scheme approved under Professional Standards Legislation

PricewaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

PRICEWATERHOUSE COPERS IS

Audit approach

We formed our audit opinion on the basis of these procedures, which included:

examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by the directors of the Responsible Entity or management.

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements.

nas aternas Coopers

PricewaterhouseCoopers

DA Prothero Partner

Svdnev 22 August 2006

Lumley Centre, 88 Shortland Street, Auckland NZ

AI assistant

DEXUS — Annual Report 2006

64807_rns_2006-09-25_7b81516d-6253-45ad-aa49-c286eede2493.pdf

DB RREEF

DB RREEF Trust (ASX: DRT) - Combined Financials 2006

yana yaan, yaan, yaran yaray yaran yaraa yaraa magamYaraal yaraf yaraf yara yara yaraa magamu yihaya yaraaliyaCaasima kaasima yaraf yaraan kamaa k combined financial statements 2006

financial

W. TANA AZARA AZAR AZAR AZAR AZAR AZAR AZAR en en de la anSa ana any ara-Tanàna amin'ny faritr'i NormandiesTanàna amin'ny faritr'i NormandiesTanàna amin'ny faritr'i Normandiese ny taona amin'ny faritr'i Normandiese ao Frantsa.Tanàna amin'ny faritr'i Normandiese ny taona 2008–201 w. W.

directors' report

DR RREEF INDUSTRIAL TRUST

1. directors and secretaries

1.1 directors

Shaun A Mays BSc (Hons), MSc, MBA (Alternate Director to Chartes B Leitner III)

1.2 company secretaries

Tanya L Cox MBA MAICD (Company Secretary)

Appointed: 1 October 2004

directors' report (continued)

DR RREEF INDUSTRIAL TRUST

2. attendance of directors at board meetings and board committee meetings

3. directors' interests

3.1 interest in DB RREEF Trust's securities

3.2 other interests

4. directors' directorships in other listed entities

5. principle activities

6 total value of trust assets

7, review and results of operations

8. likely developments and expected results of operations

9. significant changes in the state of affairs

10. matters subsequent to the end of the financial vear

11. distributions

12. responsible entity fees and associate interests

13. interests in the trust

directors' report (continued)

14. environmental regulation

15. indemnification and insurance

16. audit

16.1 anditor

16.2 non-audit services

16.3 audit independence declaration

17. corporate governance

18. combined financial statements

19, rounding of amounts and currency

20. management representation

21. directors' authorisation

directors' report DR RREEF OFFICE TRUST

1. directors and secretaries

1.1 directors

Shaun A Mays BSc (Hons), MSc, MBA (Alternate Director to Chartes B Leitner III)

1.2 company secretaries

Appointed: 1 October 2004

directors' report (continued)

DR RREEF OFFICE TRUST

2. attendance of directors at board meetings and board committee meetings

3. directors' interests

3.1 interest in DB RREEF Trust's securities

3.2 other interests

4. directors' directorships in other listed entities

5. principle activities

6 intai value of trust assets

7, review and results of operations

8. likely developments and expected results of operations

9. significant changes in the state of affairs

10. matters subsequent to the end of the financial vear

11. distributions

12. responsible entity fees and associate interests

13. interests in the trust

directors' report (continued)

14. environmental regulation

15. indemnification and insurance

16. audit

16.1 anditor

16.2 non-audit services

16.3 audit independence declaration

17. corporate governance

18. combined financial statements

19, rounding of amounts and currency

20. management representation

21. directors' authorisation

directors' report DR RREEF OPERATIONS TRUST

1. directors and secretaries

DEXUS Annual Report 2006

yana yaan, yaan, yaran yaray yaran yaraa yaraa magam
Yaraal yaraf yaraf yara yara yaraa magamu yihaya yaraaliya
Caasim^a kaasim^a yaraf yaraan kamaa k combined financial statements 2006

W. TANA AZARA AZAR AZAR AZAR AZAR AZAR AZAR en en de la an
Sa ana any ara-
Tanàna amin'ny faritr'i Normandies
Tanàna amin'ny faritr'i Normandies
Tanàna amin'ny faritr'i Normandiese ny taona amin'ny faritr'i Normandiese ao Frantsa.
Tanàna amin'ny faritr'i Normandiese ny taona 2008–201 w. W.