DEXUS — Annual Report 2007

Aug 27, 2007

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 1266 Facsimile 61 2 9017 1110

Email: ben.lehmann@dbrreef.com

Dear Sir / Madam

DB RREEF Trust (ASX: DRT) Annual results for the year ending 30 June 2007

Results for Announcement to the Market

Australian Stock Exchange Limited

DB RREEF Funds Management Limited, as responsible entity for DB RREEF Trust (DRT), provides the following documents to the Australian Stock Exchange:

• Media Release DB RREEF Trust Annual Results to 30 June 2007;
• Appendix 4E Statement "Results for announcement to the market";
• Financial Statements (DB RREEF Diversified Trust) for the period ending 30 June 2007, including Independent Audit Report from PricewaterhouseCoopers; and
• Top 20 holders and holders spread.

For further information, please contact:

Victor Hoog Antink	(02) 9017 1129
Ben Lehmann	(02) 9017 1266
Karol O'Reilly	(03) 8611 2930
Emma Parry	(02) 9017 1133

Yours sincerely

Tanya Cox Company Secretary

28 August 2007

The Manager

20 Bridge Street Sydney NSW 2000

DB RREEF Trust (ASX: DRT) Media Release

28 August 2007

DB RREEF Trust announces \$1.2 billion profit for the full year

DB RREEF Trust today announced its full year results delivering strong financial and operational performance. Key highlights included:

Key financial highlights

• AIFRS net profit to security holders \$1,210.8 million, up 13.5%
• Total property income \$693 million, up 4.5%
• Total distributions \$324.6 million, up 6.0%
• Distribution per security 11.3 cents, up 2.7%
• Total assets \$9.487 billion, up 14.5%
• Net tangible assets of \$1.82 per security, up 19%
• Well diversified debt profile, gearing reduced to 35.6%

Key operational highlights

• Portfolio occupancy 96.7%, up 0.6%
• Lease duration steady at 5.3 years
• Group acquisition activity \$808 million
• Group development pipelines \$3.0 billion, up \$1.2 billion
• Revaluations \$864.6 million, up 10.8%
• Funds under management \$13.6 billion, up 15%
• Progressed our sustainability programs

Announcing DB RREEF Trust's full year results, CEO Victor Hoog Antink said: "I am pleased to report another strong performance for DB RREEF Trust. Strong market fundamentals combined with our high quality property portfolio and active management have delivered consistent capital and income growth in our office, industrial and retail businesses.

Total funds under management increased by 15% to \$13.6 billion following significant valuation uplift and an active acquisition period where we secured \$1.5 billion of assets. This, combined with the significant expansion of our development pipeline in Australia and overseas, enables us to create further value and generate additional income for our investors whilst laying strong foundations for future growth".

Office

Our high-quality office portfolio continued to perform strongly, contributing \$239 million or 45.2% in net property income, an increase of 3.4% over the year to 30 June 2007. The overall portfolio is valued at \$4 billion, following revaluations in the period of \$453 million. New leases and renewals were negotiated on 11 percent of the office portfolio and, as a result, the occupancy rate increased to a record 99.0%, with an average lease duration of 6.2 years. We continued to progress our \$1 billion development pipeline, including 123 Albert Street, Brisbane and our flagship Premium-grade project, Space, 1 Bligh · Sydney. Both projects are designed to achieve the highest levels of tenant amenity and sustainability.

Retail

The retail portfolio delivered approximately \$55 million of net income, representing 10.4 % of overall earnings. Moving Annual Turnover for the 12 months to 30 June 2007 was up 7.6% to \$1.6 billion. Occupancy stands at 99.9% and the average lease duration was steady at 5.5 years. Revaluations contributed \$214 million, an increase of 22%. Two major developments with an estimated value on completion of \$225 million continued to progress on track at North Lakes, QLD and Plenty Valley, VIC.

On 14 August 2007, DB RREEF Trust announced that it had entered into a conditional agreement to sell its 50 percent interest in five retail shopping centres to DB RREEF Wholesale Property Fund (DWPF), for an estimated consideration of \$927.75 million and an average market cap rate of 5.6 percent. The strategic sale of the retail portfolio allows DB RREEF Trust to focus on its strengths as the leading manager of combined office and industrial space in Australia, expand third party funds under management and realise the benefits of our integrated platform. The sale proceeds will initially be used to retire debt and fund future development and acquisition opportunities, both in Australia and internationally.

Industrial

Our industrial portfolio in Australia, North America and Europe has grown to \$3.6 billion up 19% contributing \$235 million, or 44.3% of net property income.

Australia: The Australian portfolio is valued at \$1.8 billion, representing an increase of \$82 million or 5.6%. Occupancy remains high at 98.3% and the average lease duration remains steady at 4.7 years. Six development projects were completed in the period, valued at approximately \$173 million. A further six are currently in the planning phase, bringing the total industrial development pipeline in Australia to approximately \$679 million.

In August 2007, DB RREEF Trust contracted to sell 50% of the recently completed Coles chilled distribution centre for \$58 million to AXA, one of our direct mandate clients.

"This transaction further demonstrates our ability to realise the benefits of our integrated platform, recycling capital to fund future growth, while at the same time realising value created through the development process." said Mr Hoog Antink.

Europe: During the year, DB RREEF Trust entered the European market with the acquisition of six industrial properties in France and in December expanded into Germany with the acquisition of 14 industrial properties. Overall, the European portfolio is valued at \$344 million and occupancy and lease durations are steady at 92.8% and 4.1 years respectively.

North America: Our North American portfolio is valued at approximately \$1.45 billion and contributed A\$107 million¹ of net property income, representing 20.1 percent of net property income. Occupancy increased to 95.2 percent with average lease durations steady at 3.4 years.

Under the Whirlpool program, DB RREEF Trust acquired the first distribution centre for \$30 million in Orlando, USA, with a second distribution centre currently under construction in Toronto, Canada. Site assessment on the remaining locations is progressing well.

Subsequent to balance date, we contracted to acquire a portfolio valued at approximately A\$70 million of high-quality, newly constructed industrial properties in San Antonio, Texas. We have also entered into a joint venture with Santa Barbara Development Services to develop additional industrial properties in San Antonio valued at approximately A\$121 million.

Third party funds

DB RREEF group third party funds under management grew by \$667 million to \$4.6 billion, following the acquisition of 10 properties totalling \$351 million and revaluation uplifts of \$330 million. These funds have generated total returns for investors that have outperformed the external benchmark index over both 3 and 5 years. Looking forward the continuing focus is on delivering superior investment returns and growing funds under management through acquisition in support of strong demand from our investors.

Executive team appointments

In 2007, we made two key appointments to our executive team, bringing further depth and expertise to our Executive Committee. In February 2007, we appointed Paul Say as Head of Corporate Development and more recently we appointed a new CFO Craig Mitchell, who will join us in September 2007.

Outlook

Mr Hoog Antink said "Our high quality portfolio continues to perform well and we are working proactively to deliver further growth and maximise its future potential through a continued focus on industrial and office and recycling of our retail assets. We have a strong, lowly geared balance sheet positioned to fund future expansion through acquisition and delivery of our development pipeline to create increased returns for our investors and meet the needs of our tenants today and in the years to come".

Based on the above, DB RREEF expects that distribution growth per security for 2008 will be in excess of 5%.

CEO DB RREEF:	Victor Hoog Antink	(02) 9017 1129
Fund Manager, DB RREEF Trust:	Ben Lehmann	(02) 9017 1266
Investor Relations:	Karol O'Reilly	(03) 8611 2940
Media Relations:	Emma Parry	(02) 9017 1133

For further information, please contact:

About DB RREEF

DB RREEF Funds Management Limited is one of Australia's largest integrated property groups, with total funds under management as at 30 June 2007 of \$13.6 billion. The listed property portfolio comprises approximately \$9 billion of direct property assets in Australia, New Zealand, the United States, Germany and France and the unlisted property portfolio comprises approximately \$4.6 billion of domestic assets.

Results for announcement to the market

DB RREEF Trust (ASX: DRT) Appendix 4E Statement Period ending 30 June 2007

Highlights of results	30-Jun-07	30-Jun-06	% Change
Revenue from ordinary activities (\$'000)	701,536	671,649	4.45%
Net profit from ordinary activities after tax attributable to security holders and after outside equity interests (\$'000)	1,168,820	1,010,342	15.69%
Distribution to security holders (\$'000)	324,638	306,259	6%
Distributions for the year per stapled security (cents per stapled security)
31 December	5.60	5.45
30 June	5.70	5.55
Total distributions	11.30	11.00	2.73%
Basic and diluted earnings (cents per unit)*	40.90	36.44
Basic earnings before transaction costs (cents per unit)*	40.90	36.44
Tax deferred component of distribution (%)	36.68%	50.85%
Total assets (\$'000)	9,486,836	8,287,538
Total borrowings (\$'000)	3,353,327	3,195,047
Unitholders equity (\$'000)	5,704,943	4,715,513
Market capitalisation (\$'000)	5,687,889	4,105,237
Net tangible assets (NTA) (\$ per unit excluding outside equity interests)	1.82	1.53
Unit price (\$)	1.965	1.465
Units on issue ('000)	2,894,600,006	2,802,209,393
Record date for the distribution and final date for the receipt of distribution reinvestment plan election notices	29 June 2007	30 June 2006
Payment date – 30 June distribution	29 August 2007	29 August 2006

* This calculation is based on the consolidated profit of DRT.

FINANCIAL STATEMENTS

DB RREEF DIVERSIFIED TRUST

(ARSN 089 324 541)

ANNUAL FINANCIAL REPORT

30 JUNE 2007

Contents	Page
Directors' Report	1
Auditors' Independence Declaration	13
Income Statements	14
Balance Sheets	15
Statements of Changes in Equity	16
Cash Flow Statements	17
Notes to the Financial Statements	18
Directors' Declaration	64
Independent Audit Report to the Security Holders of DB RREEF Diversified Trust	65

DB RREEF Trust ("DRT") (ASX Code: DRT), consists of DB RREEF Diversified Trust ("DDF"), DB RREEF Industrial Trust ("DIT"), DB RREEF Office Trust ("DOT"), and DB RREEF Operations Trust ("DRO"), ("the Trusts").

Under Australian equivalents to International Financial Reporting Standards ("AIFRS"), DDF has been deemed the parent entity for accounting purposes. Therefore the DDF consolidated financial statements include all entities forming part of DRT.

All press releases, financial reports and other information are available on our website: www.dbrreef.com.

DB RREEF DIVERSIFIED TRUST Page No. 1 of 66 DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2007

The Directors of DB RREEF Funds Management Limited ("DRFM") as Responsible Entity of DB RREEF Diversified Trust ("the Trust") and its consolidated entities ("DB RREEF Trust" or "DRT") present their Directors' Report together with the consolidated financial statements for the year ended 30 June 2007.

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

1. Directors and secretaries

1.1 Directors

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

Directors	Appointed
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 Hoog Antink	1 October 2004
Charles B Leitner III	10 March 2005
Brian E Scullin	1 January 2005
Alternate Director
Andrew J Fay for Charles B Leitner III	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 Annual Report and form part of this Directors' Report.

1.2 Company secretaries

The names and details of the Company Secretaries of DRFM as at 30 June 2007 are as follows:

Tanya L Cox MBA MAICD (Company Secretary)

Appointed: 1 October 2004

Tanya Cox joined DB Real Estate in July 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, DB RREEF Holdings Pty Limited and DB RREEF Wholesale Property Limited and is a member of the Board Risk and Compliance Committee.

John C Easy B Comm LLB ACIS (Company Secretary)

Appointed: 1 July 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 General Counsel and Company Secretary for DRFM, DB RREEF Holdings Pty Limited and DB RREEF Wholesale Property Limited and is a member of the Board Risk and Compliance Committee.

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.

The Directors met 17 times during the year. Eight Board meetings were main meetings, seven meetings were held to consider specific business. In April 2007, several Directors went as a group to Japan and China to gain an insight into these markets. While the Board continuously considers strategy, in March 2007 they met with senior management to consider business plans and strategy.

Board Meetings	Main meetings held1	Main meetings attended1	Specific meetings held1	Specific meetings attended1
Christopher T Beare	8	8	7	7
Elizabeth A Alexander AM	8	8	7	6
Barry R Brownjohn	8	8	7	6
Stewart F Ewen OAM	8	8	7	5
Victor P Hoog Antink	8	8	7	7
Charles B Leitner III2	8	8	7	6
Brian E Scullin	8	7	7	7

1 Indicates where a Director attended either personally or their Alternate was in attendance. 2 Based in New York, USA.

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
	held	attended	held	attended	held	attended	held	attended
Christopher T Beare					5	5	2	2
Elizabeth A Alexander AM1	6	6
Barry R Brownjohn	6	6					2	2
Stewart F Ewen OAM					5	5
Andy Fay2					1	1
Victor P Hoog Antink							2	2
Charles B Leitner III
Brian E Scullin	6	6	4	4	5	5

1 Appointed to the Board Risk and Compliance Committee on 31 May 2007.

2 Appointed to the Board Nomination and Remuneration Committee on 23 May 2007.

3. Remuneration report

The Directors of DRFM as Responsible Entity of the Trust and its consolidated entities ("DB RREEF Trust" or "DRT") and DB RREEF Holdings Pty Limited ("DRH") present the Remuneration Report. Section 3.1, 3.2, 3.3, 3.4, 3.6, 3.7 and 3.8 of this Remuneration Report for the year ended 30 June 2007 have been prepared by the Board Nomination and Remuneration Committee and adopted by the Board in accordance with AASB 124 Related Party Disclosures which has been transferred from the financial report and have been audited. The remaining disclosures required by the Corporations Law have not been audited.

Please note that a reference to remuneration in this report has the same meaning as compensation for the purposes of AASB 124.

3.1 Board Nomination and Remuneration Committee

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

3.2 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 2007.

3.2.1 Non-Executive Directors' remuneration framework

The objective of the Non-Executive Directors' remuneration framework is to ensure Non-Executive Directors' fees reflect the responsibilities of Directors and the demands which are made on them, as well as ensuring they are in line with market.

Non-Executive Directors' fees are reviewed annually by the Board Nomination and Remuneration Committee. The Committee also obtains advice from independent remuneration consultants from time to time. Non-Executive Directors, other than the Chair, receive a base fee plus an additional fee for membership of a Board Committee. The Chair receives no Board Committee fees. Taking into account the greater time commitment required, the Chair receives a higher fee than other Directors, which is benchmarked to market. The Chair is not present during any discussion relating to the determination 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 Annual General Meeting held on 25 November 2005.

Board and Committee fees paid to Non-Executive Directors for the years ended 30 June 2006 and 30 June 2007 are set out in the table below:

	Directors' Fees				Committee Fees
	Board	Chair DWPL	Board Audit Committee	Board Risk & Compliance Committee	Board Nomination & Remuneration Committee	Board Treasury Policy Committee	Cash salary and fees total
	(\$)	(\$)	(\$)	(\$)	(\$)	(\$)	(\$)
Christopher T Beare
2007	272,500						272,500
2006	250,000				10,625	7,500	268,125
Elizabeth A Alexander1
2007	110,000		20,000	833			130,833
2006	110,000		20,000				130,000
Barry R Brownjohn
2007	110,000		10,000			15,000	135,000
2006	110,000		10,000			15,000	135,000
Stewart F Ewen
2007	110,000				7,500		117,500
2006	110,000		2,500		7,500		120,000
Brian E Scullin2
2007	110,000	15,000	10,000	20,000	7,500		162,500
2006	110,000		7,500	20,000	7,500		145,000
Total
2007	712,500	15,000	40,000	20,833	15,000	15,000	818,333
2006	690,000		40,000	20,000	25,625	22,500	798,125

1 Appointed to the Board Risk and Compliance Committee on 31 May 2007.

2 Appointed Chair DWPL commencing 1 Jan 2007 following its acquisition by DB RREEF Holdings Pty Limited in Dec 2006.

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 2007, Charles B Leitner, Executive Director and his Alternate Director 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.

3.2.2 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 2006 and 30 June 2007 are set out in the following table.

	Short-term employee	Post-employment	Other long term benefits	Total
	benefits	benefits1
Christopher T Beare
2007	259,814	12,686	-	272,500
2006	255,986	12,139	-	268,125
Elizabeth A Alexander
2007	25,720	105,113	-	130,833
2006	29,413	100,587	-	130,000
Barry R Brownjohn
2007	29,887	105,113	-	135,000
2006	34,413	100,587	-	135,000
Stewart F Ewen
2007	107,798	9,702	-	117,500
2006	110,092	9,908	-	120,000
Brian E Scullin
2007	119,797	42,703	-	162,500
2006	132,861	12,139	-	145,000
Total
2007	543,016	275,317	-	818,333
2006	562,765	235,360	-	798,125

1 Post-employment benefits represent compulsory and salary sacrificed superannuation contributions.

DB RREEF DIVERSIFIED TRUST Page No. 4 of 66 DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2007

3.3 DB RREEF remuneration framework

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 employee's remuneration with the achievement of strategic objectives and the creation of value for investors, and conforms to market best practice.

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

• providing clear performance objectives;
• delivering competitive remuneration for contributing to the creation of value; and
• providing recognition for contribution

DRFM's annual performance management program incorporates the establishment of specific, measurable, financial and non-financial objectives for all employees, which are then monitored throughout the year. Each of these individual objectives contributes to the achievement of DB RREEF's overall plans and objectives. At each year end the degree of an employee's achievement against the objectives is assessed and the results reflected in their "at risk" performance incentive allocation.

Employee remuneration structure is a mix of:

• fixed salary subject to annual review; and
• variable "at risk" pay through short-term and long term performance incentive plans.

The balance of an employee's remuneration between these components changes to reflect the employee's accountability and responsibility for results. As an employee's accountability and responsibility increases the lower will be the fixed component and the greater the "at risk" incentive component of their remuneration.

No employee receives DB RREEF Trust securities or securities in any other DB RREEF product as part of their remuneration package. This is in line with DB RREEF's trading policy as outlined in the Corporate Governance Statement. The Board has made this decision because DRFM has responsibility for DB RREEF Trust as well as a number of third party funds and mandates. To minimise any appearance of conflict that may arise by being a manager of multiple funds, the Directors have determined that they will not invest in any fund managed by DB RREEF including DRT. This action ensures that the Directors are not motivated to act in the interests of any one group of investors over another.

Recognising the need to achieve an alignment of interest with all DB RREEF's investors and the contribution DB RREEF's managed funds make to DB RREEF Trust's performance, the Board has implemented a long term incentive scheme based on the combined performance of DB RREEF Trust and each fund managed by DB RREEF. A detailed description of the long term incentive plan is outlined below.

Fixed remuneration

To ensure that the fixed component of an employee's remuneration is competitive, external remuneration consultants are retained to provide analysis and advice regarding market remuneration for comparable roles, responsibility and accountability. The fixed pay for all employees is reviewed annually. However, there are no guaranteed fixed pay increases for any employee.

Performance incentive pool

All short term incentive payments and long term incentive allocations are taken from a single performance incentive pool. The size of the performance incentive pool in any year is determined after reference to the group's performance against certain financial and non-financial targets determined by the Board. Should these predetermined performance targets be achieved, an incentive pool, approved by the Board following the recommendation of the Board Nomination and Remuneration Committee, is made available for allocation to all employees, including Senior Executives and the Chief Executive Officer, for the financial year.

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 from the incentive pool to each employee. 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 falls below minimum threshold levels, no short term performance incentive is paid. Short term performance incentives are payable in cash in August/September each year.

Long term incentive scheme

In 2005 the Board implemented a long term incentive scheme, which has operated without change. The scheme is designed to achieve the following outcomes:

• to more closely align participants' interests with those of investors;
• to give participants an incentive to create long term, sustainable value for investors by enabling them to benefit from the long term success of DB RREEF activities; and
• to assist in attracting and retaining high quality executives.

At the end of each year, performance against set targets is assessed and the results reflected in the long term performance incentive allocation from the incentive pool to each participant. The performance assessment is weighted to financial measures that vary between positions but include matters such as DRT's total return, earnings and distribution growth, net tangible asset backing and third party fund performance. No long term performance incentive allocation is granted for less than satisfactory performance. The Nomination and Remuneration Committee recommends to the Board the employees, including executives, who will be eligible to participate in the long term incentive scheme and the amount of long term incentive that should be allocated to that participant.

In 2007, the Board has determined that all employees who were employed as at 30 June 2007 will have a minimum participation of \$1,000 each.

• 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 DB RREEF's unlisted funds and mandates; and
• the "Performance Benchmark" is 50 percent of the S&P/ASX 200 Property Accumulation Index for DB RREEF Trust and 50 percent of the Mercers Unlisted Property Fund Index for the unlisted funds and mandates.

DRFM's long term incentive scheme operates as follows:

• each year the Board, following a recommendation from the Board Nomination and Remuneration Committee, allocates participants a long term incentive value. The long term incentive value allocated varies depending on the role of the participant and the participant's performance against key performance indicators;
• the long term incentive value is held by DRH until the end of the three year vesting period, and is notionally reinvested during the vesting period in DB RREEF Trust (50 percent of long term incentive value) and DB RREEF's other 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;
• 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 hurdle	Less than 95% of benchmark	Up to 100% of benchmark	Up to 115% of benchmark	Up to 130% of benchmark	Greater than 130% of benchmark
Performance Multiplier	100%	110%	120%	140%	150%

• consequently, the long term incentive payment made to each participant at the end of the vesting period reflects the overall return received by DB RREEF investors, with performance exceeding the benchmark being recognised by a greater long term incentive payment.

In determining the construction of the Composite Total Return the DRFM Board considered the obligations participants have to 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 fund. 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. In addition, if a participant terminates their employment during the vesting period their long term incentive grant is forfeited, unless otherwise determined by the Nomination and Remuneration Committee.

Performance indicators

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

Performance indicators	Reason for use
Financial 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
Third party funds performance	to ensure focus on achieving each funds objectives
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
Project 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

3.4 Senior Executive remuneration

The disclosures in this section of the report 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.

		The date they qualified or ceased to qualify as a Senior
Name	Title	Executive during the 12 months ended 30 June 2007
Victor P Hoog Antink	Chief Executive Officer
Tanya L Cox	Chief Operating Officer
John C Easy	General Counsel
Ben J Lehmann	DB RREEF Trust Fund Manager
Peter C Roberts*	Chief Financial Officer	Ceased to qualify 8 June 2007
Paul G Say	Head of Corporate Development	Qualified 19 March 2007
Mark F Turner	Head of Unlisted Funds

DB RREEF DIVERSIFIED TRUST Page No. 6 of 66 DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2007

3.4.1 Senior Executive remuneration framework

The Nomination and Remuneration Committee, in consultation with external remuneration consultants, has implemented a specific framework for Senior Executive remuneration (including the remuneration of the Chief Executive Officer) that is market competitive and is in line with DB RREEF's overall remuneration framework.

The framework for Senior Executive remuneration is based on the following key criteria:

• transparency, competitiveness and reasonableness;
• linked to performance;
• the ability to attract and retain high quality executives; and
• aligns executives and investor interests.

Alignment to investors' interests is achieved by a substantial proportion of Senior Executive remuneration being dependent upon performance. This ensures that remuneration for Senior Executives, including the Chief Executive Officer, is closely linked to:

• delivery of forecast returns; and
• achievement of key non-financial value drivers.

3.4.2 Components of Senior Executive remuneration

Each Senior Executive's remuneration package comprises the following components:

• fixed remuneration; and
• short term performance incentives; and
• long term performance incentives.

Subsequent to DRFM's corporate restructure in September 2004 and following consideration of guidance from external advisors, the Board Nomination and Remuneration Committee commissioned the development of a long term incentive scheme and revised the target remuneration mix for the Chief Executive Officer and other Senior Executives to more closely reflect the remuneration structure of DRFM's peer group.

Application of the target mix to the remuneration of the Chief Executive Officer and new Senior Executives was effected immediately. The target mix for other Senior Executives is being progressively introduced and will be fully implemented by 2008.

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

	Fixed Remuneration		At risk - short term		At risk - Long term
	2007	2006	2007	2006	2007	2006
Chief Executive Officer	45%	50%	25%	25%	30%	25%
Other Senior Executives	50%	60%	25%	25%	25%	15%

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

3.5 DB RREEF performance

DB RREEF Trust was created as a single stapled security in September 2004. Since stapling DB RREEF Trust's operational and financial performance has been in line with expectations.

Funds under management performance

As at 30 June	DRT funds under	Third party funds under	Total DB RREEF funds
	management	management	under management
2007	\$9.03 billion	\$4.63 billion	\$13.66 billion
2006	\$7.85 billion	\$3.90 billion	\$11.75 billion
2005	\$7.00 billion	\$3.50 billion	\$10.50 billion

DB RREEF Trust – ASX Market Capitalisation

Year to 30 June	Market Capitalisation
2007	\$5.69 billion
2006	\$4.10 billion
20051	\$3.70 billion

Source: IRESS.

1 Trading in DB RREEF Trust commenced 6 October 2004.

DB RREEF Trust Security Price Performance

DB RREEF Trust - Earnings, Distributions and Net Tangible Assets (NTA) performance.

Year to 30 June	Earnings per security	Distribution per security	NTA per security
2007	40.90 cents	11.3 cents	\$1.82
2006	36.44 cents	11.0 cents	\$1.53
2005	18.25 cents	10.5 cents	\$1.28

Total return analysis

• Composite Total Return 50 percent of the total return of DB RREEF Trust, plus 50 percent of the combined asset weighted total return of DB RREEF's unlisted funds and mandates.
• Composite Performance Benchmark 50 percent of the Mercers Unlisted Property Fund Index and 50 percent of the S&P/ASX 200 Property Accumulation Index.

Period to 30 June 2007	1 year (% p.a.)	2 years (% p.a.)	Since 1 October 20041 (% p.a.)
Composite Total Return	29%	25%	22%
Composite Performance Benchmark	23%	20%	20%
DB RREEF Trust	42.6%	22.3%	25.5%
S&P/ASX 200 Property Accumulation Index	25.9%	23.7%	19.8%

1 Inception date is 1 October 2004.

During the year DB RREEF Trust did not buy back or cancel any of its securities.

DB RREEF DIVERSIFIED TRUST Page No. 8 of 66 DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2007

3.6 Details of Senior Executive 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 2006 and 30 June 2007 are set out in the following table.

		Short-term employee benefits Post-employment benefits			Other long term benefits		Total
	Cash salary and fees	Short term incentive	Other short term benefit	Pension and superannuation benefits	Long term incentive value	Other long term benefit
	(\$)	(\$)	(\$)	(\$)	(\$)	(\$)	(\$)
Victor P Hoog Antink
2007	907,167	550,000	-	92,833	650,000	-	2,200,000
2006	907,714	500,000	-	92,286	250,000	-	1,750,000
Tanya L Cox
2007	311,828	175,000	-	3,172	110,000	-	600,000
2006	237,861	175,000	-	12,139	60,000	-	485,000
John C Easy
2007	286,314	110,000	-	28,686	75,000	-	500,000
2006	287,861	100,000	-	12,139	50,000	-	450,000
Ben J Lehmann
2007	407,314	250,000	-	12,686	250,000	-	920,000
2006	387,861	230,000	-	12,139	120,000	-	750,000
Peter Roberts1
2007	292,438	-	-	539,206	-	-	831,644
2006	150,469	125,000	130,000	22,350	75,000	25,000	527,819
Paul G Say2
2007	122,438	20,000	280,000	4,229	-	-	426,667
2006	-	-	-	-	-	-	-
Mark F Turner
2007	297,615	200,000	-	42,385	180,000	-	720,000
2006	274,900	180,000	-	25,100	70,000	-	550,000
Total
2007	2,625,114	1,305,000	280,000	723,197	1,265,000	-	6,198,311
2006	2,246,666	1,310,000	130,000	176,153	625,000	25,000	4,512,819

1 Peter Roberts resigned 8 June 2007

2 Paul Say commenced 19 March 2007

3 Some employees elected to salary sacrifice prior year short term incentive which restricted their ability to contribute to superannuation in 2007.

3.7 Details of Senior Executive long term incentive scheme

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 2006	Less - Long term incentive value forfeited during the year	Less - Long term incentive value vested during the year	Plus - Fluctuation due to movement in DRFM's Composite Total Return	Plus - Additional long term incentive value granted during the year	Closing balance of long term incentive value outstanding as at 30 June 20071
	\$	\$		\$	\$	\$
Victor P Hoog Antink	476,763	-	-	138,261	650,000	1,265,024
Tanya L Cox	72,094	-	-	20,907	110,000	203,001
John C Easy	65,118	-	-	18,884	75,000	159,002
Ben J Lehmann	180,470	-	-	52,336	250,000	482,806
Peter C Roberts2	75,000	75,000	-	-	-	-
Paul G Say3	-	-	-	-	-	-
Mark F Turner	82,094	-	-	23,807	180,000	285,901
Total	951,539	75,000	-	254,195	1,265,000	2,395,734

1 No long term incentive amounts were vested during the year.

2 Peter Roberts resigned 8 June 2007 3

Paul Say commenced 19 March 2007

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

3.8 Equity plans and loans

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

3.9 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	1 October 2004	Unlimited in term	In the event of early termination, DRFM is required to
Chief Executive Officer			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 DRFM's obligations in respect of notice of termination.
Other Senior Executives	Various	Unlimited 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 and DB RREEF Property Services Pty Limited ("DRPS") employees have a standard service contract with DRH. These agreements are unlimited in term and provide for one months 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:

• 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 take 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.

4. Directors' interests

The Board's policy on insider trading and trading in DB RREEF Trust securities or securities in any of the funds managed by DB RREEF by any Director or employee is outlined in the Corporate Governance Statement.

While the trading policy described in the Corporate Governance Statement applies to Directors and Senior Executives, the Board has determined that Directors will not trade in any security managed by DB RREEF.

Directors have made this decision because the Boards of DB RREEF have responsibility for DB RREEF Trust as well as the third party businesses. Directors are obliged to act in the best interest of each group of investors independently of each other. Therefore, to minimise the appearance of conflict that may arise by being a Director of multiple funds, the Directors have determined that they will not invest in any fund managed by DB RREEF including DRT. While this decision may fail to achieve the desired alignment of interests between investors and the Board, the Directors consider it to be of greater importance to demonstrate that they are not motivated to act in the interests of any one fund over another. This position is periodically reviewed by the Board.

As a direct result of DB RREEF's policy regarding Directors holding DRT securities, or securities in any of the funds managed by DB RREEF, as at the date of this Directors' Report no Director or Alternate Director directly or indirectly held:

• securities in DB RREEF Trust; or
• options over, or any other contractual interest in, securities in DB RREEF Trust; or
• an interest in any other fund managed by DRFM or any other entity that forms part of DB RREEF Trust.

5. 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 or ceased being a
			director of a listed security
Elizabeth A Alexander	CSL Limited	Jul 1991
	Boral Limited	Sep 1994
	AMCOR Limited	Apr 1994	Oct 2005
Brian E Scullin	Deutsche Asset Management	20 Dec 1999	17 Oct 2006
	IYS Instalment Receipt Limited1	24 Oct 2005	17 Oct 2006
	SPARK Infrastructure RE Limited2	1 Jan 2006
Alternate Director
Andrew J Fay	Deutsche Asset Management	4 May 2005	17 Oct 2006
	IYS Instalment Receipt Limited1	4 May 2005	17 Oct 2006
	SPARK Infrastructure RE Limited2	1 Jan 2006

1 IYS Instalment Receipt Limited had until 29 November 2006 issued ASX listed instalment receipts over units in the Deutsche Retail Infrastructure Trust, a managed investment scheme that was until 17 October 2006 listed but not quoted on the ASX and whose responsible entity was Deutsche Asset Management (Australia) Limited.

2 SPARK Infrastructure RE Limited has issued ASX listed stapled securities trading as SPARK Infrastructure Group (ASX:SKI).

6. Principal activities

During the year the principal activity of DB RREEF Trust was real estate funds management and investment in real estate assets. There were no significant changes in the nature of DB RREEF Trust's activities during the year.

The number of employees of DB RREEF Trust at the end of the reporting period being 30 June 2007 was 227 (2006: 132). The increase in 2007 is primarily due to the internalisation of retail property management.

7. Total value of trust assets

The total value of the assets of DB RREEF Trust as at 30 June 2007 was \$9,486.8 million (2006: \$8,287.5 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.

8. Review and results of operations

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

9. Likely developments and expected results of operations

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

10. Significant changes in the state of affairs

The Directors of DRFM 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 DB RREEF Trust, the results of those operations, or the state of DB RREEF Trust's affairs in future financial years.

11. Matters subsequent to the end of the financial year

Since the end of the year the Directors of DRFM 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 DB RREEF Trust, the results of those operations, or the state of DB RREEF Trust's affairs in future financial years.

12. Distributions

Distributions paid or payable by DB RREEF Trust for the year ended 30 June 2007 were 11.3 cents per security (2006: 11.0 cents per security) as outlined in note 31 of the notes to the financial statements.

DB RREEF DIVERSIFIED TRUST Page No. 11 of 66 DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2007

13. DRFM's fees and associate interests

Details of fees paid or payable by DB RREEF Trust to DRFM for the year ended 30 June 2007 are outlined in note 35 of the notes to the financial statements and form part of this Directors' Report.

The number of interests in DB RREEF Trust held by DRFM or its associates as at the end of the financial year are nil (2006: nil).

14. Interests in DB RREEF Trust

The movement in securities on issue in DB RREEF Trust during the year and the number of securities on issue as at 30 June 2007 are detailed in note 28 of the notes to the financial statements and form part of this Directors' Report.

DB RREEF Trust did not have any options on issue as at 30 June 2007 (2006: nil).

15. Environmental regulation

The Directors of DRFM 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 aware of any breaches of these requirements and to the best of their knowledge all activities have been undertaken in compliance with environmental requirements.

16. 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 DRH. The auditors are in no way indemnified out of the assets of DB RREEF Trust.

17. Audit

17.1 Auditor

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

17.2 Non-audit services

Details of the amounts paid to the Auditor, which include amounts paid for non-audit services are set out in note 7 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 external auditor 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 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 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 regarding its independence at each reporting period and Board Audit Committee approval is required before the 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.

17.3 Audit independence declaration

A copy of the Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out in the financial statements and forms part of this Directors' Report.

18. Corporate governance

DRFM's Corporate Governance Statement is set out in a separate section of the Annual Report.

19. Rounding of amounts and currency

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

DB RREEF DIVERSIFIED TRUST Page No. 14 of 66 INCOME STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

		Consolidated		Parent Entity
	Notes	2007	2006	2007	2006
		\$'000	\$'000	\$'000	\$'000
Revenue from ordinary activities
Property revenue	2	693,430	663,496	153,063	145,763
Distribution revenue		-	-	33,400	40,647
Interest revenue		8,106	8,153	560	627
Total revenue from ordinary activities		701,536	671,649	187,023	187,037
Share of net profits of associates accounted for using the equity
method	18	52,715	26,911	-	-
Proceeds from sale of inventory		3,959	-	-	-
Net gain on sale of investment properties		3,355	1,490	15	112
Net fair value gain of investment properties		831,330	686,490	217,847	186,002
Net fair value gain of investments		-	-	89,559	99,488
Net fair value gain of derivatives		52,458	73,271	11,687	15,349
Net foreign exchange gain/(loss)		1,349	2,903	33,322	(3,154)
Other income		1,672	519	87	190
Total income		1,648,374	1,463,233	539,540	485,024
Expenses
Property expenses		(170,120)	(159,295)	(39,470)	(36,211)
Responsible Entity fees	35	(33,650)	(28,695)	(11,961)	(10,534)
Finance costs	3	(184,786)	(166,116)	(42,672)	(35,377)
Carrying value of inventory sold		(3,478)	-	-	-
Depreciation		(2,488)	(1,023)	-	-
Costs associated with the Transaction	4	-	(480)	-	(160)
Impairment of goodwill		-	(3,287)	-	-
Other expenses	6	(10,588)	(8,829)	(1,580)	(1,523)
Total expenses		(405,110)	(367,725)	(95,683)	(83,805)
Profit before tax		1,243,264	1,095,508	443,857	401,219
Tax expense
Income tax benefit/(expense)	5(a)	1,110	(1,169)	-	-
Withholding tax expense	5(d)	(33,583)	(27,954)	-	-
Total tax expense		(32,473)	(29,123)	-	-
Profit after tax		1,210,791	1,066,385	443,857	401,219
Profit attributable to:
Equity holders of the parent entity		446,378	398,925	443,857	401,219
Equity holders of other Stapled Entities (minority interest)		722,441	611,417	-	-
Stapled security holders		1,168,819	1,010,342	443,857	401,219
Net profit attributable to other minority interests		41,972	56,043	-	-
Net profit		1,210,791	1,066,385	443,857	401,219
Earnings per unit		Cents	Cents	Cents	Cents
Basic earnings per unit on profit attributable to equity holders of the
parent entity	40	15.62	14.39	15.53	14.47
Diluted earnings per unit on profit attributable to equity holders of the parent entity	40	15.62	14.39	15.53	14.47

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

DB RREEF DIVERSIFIED TRUST Page No. 15 of 66 BALANCE SHEETS AS AT 30 JUNE 2007

		Consolidated		Parent Entity
	Notes	2007	2006	2007	2006
		\$'000	\$'000	\$'000	\$'000
Current assets
Cash and cash equivalents	8	59,603	106,428	9,096	15,743
Receivables	9	36,389	35,254	19,495	22,109
Held for sale investment properties	15	-	24,000	-	-
Inventories	10	-	3,344	-	-
Derivative financial instruments Other financial assets	12	145,425	92,478	33,124	26,054
Current tax assets	13	51,936 112	45,092 289	- -	- -
Other	14	9,664	6,050	2,439	1,227
Total current assets		303,129	312,935	64,154	65,133
Non-current assets
Investment properties	15	8,585,703	7,558,945	1,987,034	1,673,804
Property plant and equipment	16	314,021	173,468	-	-
Other financial assets at fair value through profit and loss	17	-	-	294,901	247,172
Investments accounted for using the equity method	18	270,155	235,062	-	-
Investments in associates Deferred tax assets	18 19	- 3,921	- 116	481,712 -	454,398 -
Other	20	9,907	7,012	803	750
Total non-current assets		9,183,707	7,974,603	2,764,450	2,376,124
Total assets		9,486,836	8,287,538	2,828,604	2,441,257
Current liabilities
Payables	21	124,509	100,901	24,129	15,671
Interest bearing liabilities	22	18,443	244,553	-	-
Loans with related parties	11	-	-	34,332	34,332
Current tax liabilities		1,930	3,156	-	-
Provisions	23	164,992	155,523	68,470	54,178
Derivative financial instruments	12	21,333	20,477	7,861	9,052
Other	24	3,150	5,452	-	-
Total current liabilities		334,357	530,062	134,792	113,233
Non-current liabilities
Interest bearing liabilities	22	3,334,884	2,950,494	702,914	706,986
Deferred tax liabilities	25	73,809	48,726	-	-
Financial liability with minority interest	26	28,305	29,105	-	-
Other	27	10,538	13,638	1,210	1,084
Total non-current liabilities		3,447,536	3,041,963	704,124	708,070
Total liabilities		3,781,893	3,572,025	838,916	821,303
Net assets		5,704,943	4,715,513	1,989,688	1,619,954
Equity
Equity attributable to equity holders of the parent entity Contributed equity	28	1,151,526	1,094,144	1,151,526	1,094,144
Reserves	29	(925)	739	-	-
Undistributed income	29	839,248	524,375	838,162	525,810
Parent entity security holders' interest		1,989,849	1,619,258	1,989,688	1,619,954
Equity attributable to equity holders of other entities stapled to
DDF (minority interest)
Contributed equity	28	2,182,833	2,094,887	-	-
Reserves	29	3,054	(561)	-	-
Undistributed income	29	1,091,034	574,078	-	-
Other stapled security holders' interest		3,276,921	2,668,404	-	-
Stapled security holders' interest		5,266,770	4,287,662	1,989,688	1,619,954
Other minority interest	30	438,173	427,851	-	-
Total equity		5,704,943	4,715,513	1,989,688	1,619,954

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

DB RREEF DIVERSIFIED TRUST Page No. 16 of 66 STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2007

		Consolidated		Parent Entity
	Notes	2007	2006	2007	2006
		\$'000	\$'000	\$'000	\$'000
Total equity at the beginning of the year		4,715,513	3,865,712	1,619,954	1,288,981
Adjustment on adoption of AASB 132 and AASB 139, net of tax:
Undistributed income		-	3,443	-	2,165
Exchange differences on translation of foreign operations	29	1,951	1,301	-	-
Net income recognised directly in equity		1,951	4,744	-	2,165
Net profit		1,210,791	1,066,385	443,857	401,219
Total recognised income and expense for the year		1,212,742	1,071,129	443,857	403,384
Transactions with equity holders in their capacity as equity holders:
Contributions of equity, net of transaction costs	28	145,328	94,776	57,382	34,278
Distributions provided for or paid	31	(324,638)	(306,259)	(131,505)	(106,689)
Transactions with other minority interest:
Contributions of equity, net of transaction costs		4,130	7,649	-	-
Distributions provided for or paid	31	(19,045)	(21,964)	-	-
Foreign currency translation reserve		(29,087)	4,470	-	-
Total transactions with equity holders		(223,312)	(221,328)	(74,123)	(72,411)
Total equity at the end of the year		5,704,943	4,715,513	1,989,688	1,619,954
Total recognised income and expense for the year is attributable to:
Equity holders of the parent entity - DDF unitholders		444,714	403,377	443,857	403,384
Equity holders of other entities stapled to DDF (minority interest)		726,056	611,428	-	-
Security holders of DB RREEF Diversified Trust		1,170,770	1,014,805	443,857	403,384
Other minority interest		41,972	56,324	-	-
Total recognised income and expense for the year		1,212,742	1,071,129	443,857	403,384

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

DB RREEF DIVERSIFIED TRUST Page No. 17 of 66 CASH FLOW STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

	Consolidated			Parent Entity
	Notes	2007	2006	2007	2006
		\$'000	\$'000	\$'000	\$'000
Cash flows from operating activities
Receipts in the course of operations (inclusive of GST)		768,804	733,609	178,475	154,091
Payments in the course of operations (inclusive of GST)		(280,014)	(252,829)	(81,829)	(60,182)
Interest received		9,702	9,295	560	581
Finance costs paid to financial institutions		(191,047)	(171,697)	(11,015)	(7,796)
Distributions received		13,177	12,165	49,050	35,750
Dividends received		4,750	1,500	-	-
Income and withholding taxes paid		(5,637)	(4,018)	-	-
Net cash inflow from operating activities	38	319,735	328,025	135,241	122,444
Cash flows from investing activities
Proceeds from sale of investment properties		194,160	11,221	-	109
Proceeds from sale of inventory		3,959	-	-	-
Payments for capital expenditure on investment properties		(167,233)	(218,013)	(84,637)	(85,722)
Payments for investment properties		(393,627)	(155,597)	-	-
Payments for investments accounted for using the equity method		(8,897)	(16,269)	(1,131)	(60,131)
Payments for inventories		-	(3,362)	-	-
Payments for property plant and equipment Payments for capital expenditure on property plant and equipment		(69,683)	(7,712)	-	-
Proceeds from repayment of third party loan		(96,591) -	(70,542) 5,049	- -	- -
Net cash outflow from investing activities		(537,912)	(455,225)	(85,768)	(145,744)
Cash flows from financing activities
Increase in minority interest		2,343	7,814	-	-
Borrowings provided to the Trusts		-	-	(141,644)	(85,963)
Borrowings provided by the Trusts		-	-	80,165	126,582
Establishment expenses and unit issue costs		-	(267)	-	-
Proceeds from borrowings		2,053,575	977,813	111,340	77,509
Repayment of borrowings		(1,693,134)	(602,066)	(46,150)	(3,341)
Distributions paid to security holders		(169,841)	(200,900)	(59,831)	(85,982)
Distributions paid to other minority interests		(18,577)	(18,918)	-	-
Net cash inflow/(outflow) from financing activities		174,366	163,476	(56,120)	28,805
Net (outflow)/inflow in cash and cash equivalents		(43,811)	36,276	(6,647)	5,505
Cash and cash equivalents at the beginning of the year		106,428	68,959	15,743	10,238
Effects of exchange rate changes on cash and cash equivalents		(3,014)	1,193	-	-
Cash and cash equivalents at the end of the year	8	59,603	106,428	9,096	15,743

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

Note 1. Summary of significant accounting policies

(a) Basis of preparation

In accordance with AASB Interpretation 1002: Post-Date-of-Transition Stapling Arrangements, the Trusts must be consolidated. The parent entity and deemed acquirer of the Trusts is DDF.

The DDF Consolidated column represents the consolidated result of DDF, which comprises DDF and its controlled entities, DIT and its controlled entities, DOT and its controlled entities and DRO and its controlled entities. Equity attributable to other trusts stapled to DDF is a form of minority interest in accordance with AASB 1002 and, in the DDF consolidated column, represents the equity of DIT, DOT and DRO. Other minority interests represent the equity attributable to parties external to the Trusts.

DB RREEF Trust stapled securities are quoted on the Australian Stock Exchange under the code 'DRT' and comprise one unit in each of DDF, DIT, DOT and DRO. 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.

DB RREEF Funds Management Limited as Responsible Entity for each of the Trusts may only unstaple the Trusts if approval is obtained by special resolution of the stapled security holders.

This general purpose financial report for the year ended 30 June 2007 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"). Compliance with AIFRS ensures that the consolidated financial statements and notes comply with International Financial Reporting Standards ("IFRS"). The Trusts changed their accounting policies on 1 July 2005 to comply with AIFRS.

This financial report is prepared on the going concern basis and in accordance with 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(n), 1(p) and 1(r)).

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

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(p), 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.

(b) Principles of consolidation

Controlled entities

The financial statements have been prepared on a consolidated basis in recognition of the fact that while the securities issued by the Trusts are stapled into one trading security and cannot be traded separately, the financial statements must be presented on a consolidated basis. The parent entity and deemed acquirer of the Trusts is DDF. The accounting policies of the subsidiary trusts are consistent with those of the parent.

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, are 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 Income Statements from the date on which control is gained.

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 are 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(s)).

(c) Other financial assets at fair value through profit and loss

Interests held by the Trust 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 circumstances 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 accruals 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 are 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 payable.

Property expenses

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

Financing costs to financial institutions

Financing costs include interest expense and other costs incurred in respect of obtaining finance. Other transaction costs incurred including loan 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

(i) Derivatives

The Trusts' activities expose it to changes in interest rates and foreign exchange rates. Accordingly, the Trusts enter into various derivative financial instruments to manage its 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 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.

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 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 DRT

Financial instruments issued by DRT are classified as either liabilities or as equity in accordance with the substance of the contractual arrangements. Accordingly, ordinary units issued by DDF, DIT, DOT and DRO are classified as equity.

Interest and distributions are classified as expenses or as distributions 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) Financial Guarantee Contracts

Financial Guarantee contracts are recognised as a financial liability at the time the guarantee is issued. The liability is initially measured at fair value and subsequently at the higher of the amount determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation, where appropriate.

The fair value of financial guarantees is determined as the present value of the difference in the net cash flows between the contractual payments under the debt instrument and the payments that would be required without the guarantee, or the estimated amount that would be payable to a third party for assuming the obligations.

Where guarantees in relation to loans or other payables of subsidiaries or associates are provided for no compensation, the fair values are accounted for as contributions and recognised as part of the cost of the investment.

Change in accounting policy

The policy of recognising financial guarantee contracts as financial liabilities was adopted for the first time in the current financial year. In previous reporting periods, a liability for financial guarantee contracts was only recognised if it was probable that the debtor would default and a payment would be required under the contract.

The change in policy was necessary following the change to AASB 139 Financial Instruments : Recognition and Measurement . The new policy has been applied retrospectively. There were no adjustments to current and prior period numbers as the fair value calculated by management was not material.

(v) Loans and receivables

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

(g) Goods and Services Tax / Value Added Tax

Revenues, expenses and capital assets are recognised net of any amount of Australian/New Zealand goods and services tax ("GST") or French and German value added tax ("VAT"), except where the amount of GST/VAT incurred is not recoverable. In these circumstances the GST/VAT 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 Australian Taxation Office is classified as operating cash flows.

(h) Taxation

Under current Australian income tax legislation DDF, DIT and DOT, are not liable for income tax provided they satisfy certain legislative requirements. These Trusts may be liable for income tax in jurisdiction where foreign property is held (i.e. USA, France, Germany, New Zealand).

DRO is a trading trust and is subject to Australian income 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% adjusted for changes in deferred tax assets and liabilities and unused tax losses;
• Deferred tax assets and liabilities are recognised for temporary 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 cumulative amounts of deductible and taxable temporary differences to measure the deferred tax assets or liabilities. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability (where they do not arise as a result of a business combination and did not affect either accounting profit/loss or taxable profit/loss);
• Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses;
• Deferred tax assets and liabilities are not recognised for 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 recognised directly in equity are also recognised directly in equity.

Withholding tax payable on distributions received by DRT from DB RREEF Industrial Properties Inc ("US REIT") and DB RREEF Properties Inc ("US REIT II") are recognised as an expense when tax is withheld.

In addition, a deferred tax liability or asset and related deferred tax expense/benefit is recognised on differences between the tax cost base of US assets and liabilities in DRT (held by US REIT and US REIT II) and their accounting carrying values at balance date. Any deferred tax liability or asset is calculated using a blend of the current withholding tax rate applicable to income distributions and the applicable US federal and state taxes.

Under current Australian income tax legislation, the security holders will generally be entitled to receive a foreign tax credit for US withholding tax deducted from distributions paid by the US REIT and US REIT II.

DIT France Logistique SAS ("DIT France"), a wholly owned sub trust of DIT, is liable for French corporation tax on its taxable income at the rate of 34.43%. In addition, a deferred tax liability or asset and its related deferred tax expense/benefit is recognised on differences between the tax cost base of the French real estate assets and their accounting carrying value at balance date.

DB RREEF GLOG Trust, a wholly owned Australian sub trust of DIT, is liable for German income tax on its German taxable income at the rate of 26.375% (note that this rate is reduced to 15% from 1 January 2008). In addition, a deferred tax liability or asset and its related deferred tax expense/benefit is recognised on differences between the tax cost base of the German real estate assets and their accounting carrying value at balance date.

DOT NZ Sub-Trust No. 1, a wholly owned Australian sub trust of DOT, is liable for New Zealand corporate tax on its New Zealand taxable income at the rate of 33%. In addition, a deferred tax liability or asset and its related deferred tax expense/benefit is recognised on differences between the tax cost base of the New Zealand real estate assets and their accounting carrying value at balance date.

(i) Distributions

In accordance with the Trust's Constitution, the Trust distributes its distributable income to unitholders by cash or reinvestment. Distributions are provided for when they are approved by the Board of Directors and declared.

(j) Repairs and maintenance

Plant is required to be overhauled on a regular basis and is managed as part of an ongoing major cyclical 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(p). Other routine operating maintenance, repair costs and minor renewals are also charged as expenses as incurred.

(k) 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.

DB RREEF DIVERSIFIED TRUST Page No. 22 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 1. Summary of significant accounting policies (continued)

(l) 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 uncollectible 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.

(m) Inventories

Properties undergoing or having completed construction or development for ultimate 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 cost of acquisition, development and finance costs during development. When development is completed, finance costs and other holding charges are expensed as incurred.

(n) 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, unless 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.

(o) Depreciation of 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 and 50 years. Estimates for useful lives are reviewed on a regular basis.

(p) Investment properties

Investment properties consist of properties held for long term rental yields, 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 valuations 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 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 industry expertise and knowledge, 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 cash 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 in accordance with Note 1(j).

(i) 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.

(q) Leasing fees

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

(r) Lease incentives

Prospective lessees may be offered incentives as an inducement to enter into operating leases. These incentives may take various forms including cash payments, rent free periods, or a contribution to certain lessee 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 premises 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.

(s) Investments accounted for using the equity method

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

Under this method, the entity's share of the post-acquisition profits of associates is recognised as revenue 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's share of losses in an associate equal or exceed its interest in the associate (including any unsecured receivables) the Trusts do not recognise any further losses unless it has incurred obligations or made payments on behalf of the associate.

(t) 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 provide a more reliable measure of fair value. Transaction costs arising on the 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(u)). 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 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.

(u) Goodwill

Where a business combination 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.

(v) Fair value estimation of financial assets and liabilites

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 sale securities) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Trusts are the current bid price. 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.

(w) Payables

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

(x) Interest bearing liabilities

All 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.

(y) Earnings per unit

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

(z) Foreign currency

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

(i) Foreign currency transactions

Foreign currency 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 financial 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"), New Zealand, France and Germany. These operations have a functional currency of US Dollars, NZ Dollars and Euros 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.

(aa) 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.

(ab) Rounding of amounts

The Trusts are the kind referred to in Class Order 98/0100, issued by the Australian Securities and Investment 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 nearest dollar.

(ac) New accounting standards and UIG interpretations

Certain new accounting standards and UIG interpretations have been published that are not mandatory for the 30 June 2007 reporting period. Our assessment of the impact of these new standards and interpretations is set out below:

(i) 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 Trust has 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 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038], is applicable to annual reporting periods beginning on or after 1 January 2009. It requires segment information disclosure based on segments monitored by the chief operating decision maker in allocating resources and in assessing their performance rather than on a business/geographical basis. This will require more qualitative disclosure for single segment entities. Application of this standard will not affect the amounts recognised in the financial statements.

DB RREEF DIVERSIFIED TRUST Page No. 25 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 2. Property revenue
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Rent and recoverable outgoings	705,205	661,205	155,332	143,818
Incentive amortisation	(37,661)	(26,069)	(6,220)	(5,487)
Other revenue	25,886	28,360	3,951	7,432
Total property revenue	693,430	663,496	153,063	145,763

DB RREEF DIVERSIFIED TRUST Page No. 26 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 3. Finance costs
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Interest paid/payable	197,462	176,604	97	(26)
Interest paid to related party	-	-	46,321	41,030
Amount capitalised	(14,639)	(10,488)	(3,746)	(5,627)
Other finance costs	1,963	-	-	-
Total finance costs	184,786	166,116	42,672	35,377

The average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.58% (2006: 6.23%).

Note 4. Costs associated with the Transaction

Costs incurred in the prior year relate to the fees and expenses arising from the stapling of the Trust and 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").

DB RREEF DIVERSIFIED TRUST Page No. 27 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

2 age No. 27 of 66

	Note 5. Income Tax

(a) Income tax expense	Consolidated 2007 \$'000	2006 \$'000
Current tax Deferred tax	2,241	936
	(3,351)	233
Income tax expense/(benefit)	(1,110)	1,169
Deferred income tax (revenue)/expense included in income tax
expense comprises:
(Increase)/decrease in deferred tax assets Increase in deferred tax liabilities	(3,729)	207
	378	26
	(3,351)	233
(b) Reconciliation of income tax expense	Consolidated
to net profit	2007	2006
	\$'000	\$'000
Profit before tax	1,243,264	1,095,508
Profit not subject to income tax (note 1(h))	(1,241,409)	(1,087,056)
	1,855	8,452
Prima facie Tax at the Australian tax rate of 30% (2006: 30%)	557	2,535
Tax effect of amounts which are not deductible (taxable)
in calculating taxable income:
Depreciation and amortisation	(430)	88
Share of net profits of associates	47	(1,454)
Revaluation of investment properties	1,628	-
Difference in overseas tax rates	(194)	-
Previously unrecognised tax losses now recognised	(390)	-
Tax offset for franked dividends	(1,950)	-
Sundry items	(3)	-
	(1,292)	(1,366)
Over provision in prior year	(375)	-
Income tax expense/(benefit)	(1,110)	1,169
(c) Amounts recognised directly in equity	Consolidated
	2007 \$'000	2006 \$'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	-	(196)

- (196)

DB RREEF DIVERSIFIED TRUST Page No. 28 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 5. Income Tax (continued)

(d) Withholding tax expense

Withholding tax expense of \$33,583,000 includes \$31,178,000 (2006: \$24,727,000) of deferred tax expense which is recognised on differences between the tax cost base of the US assets and liabilities and their accounting carrying value at balance date. The majority of the deferred tax expense arises due to the tax depreciation and revaluation of US investment properties.

Note 6. Other expenses

		Consolidated		Parent Entity
	Note	2007	2006	2007	2006
		\$'000	\$'000	\$'000	\$'000
Audit and other fees	7	3,025	2,672	600	586
Custodian fees		515	518	172	165
Legal and other professional fees		448	415	1	-
Bad and doubtful debts		2,083	1,654	644	95
Registry costs and listing fees		443	377	142	47
Other expenses		4,074	3,193	21	630
Total other expenses		10,588	8,829	1,580	1,523
Note 7. Audit and other fees
		Consolidated		Parent Entity
		2007	2006	2007	2006
		\$	\$	\$	\$
During the year the auditor of the parent entity and its related practices and non-related audit firms earned the following remuneration:
(a) Assurance services
Audit Services
PwC audit and review of financial reports and other audit work under
the Corporations Act 2001		1,111,630	1,299,465	426,183	457,000
PwC fees paid in relation to outgoings audit		194,627	72,155	38,250	-
Fees paid to non-PwC audit firms		691,626	597,323	22,941	-
Total remuneration for assurance services		1,997,883	1,968,943	487,374	457,000
(b) Taxation services
Fees paid to PwC Australia		318,843	370,690	112,307	126,000
Fees paid to PwC US		443,588	213,160	-	-
Fees paid to non-PwC audit firms		263,815	109,975	-	-

* These services include general compliance work, one off project work and advice with respect to the management of day to day tax affairs of the Trust's.

(c) Advisory services

Total remuneration for assurance, taxation and advisory	3,024,129	2,671,718	599,681	586,000
Total remuneration for advisory services	-	8,950	-	3,000
Fees paid to PwC Australia in relation to IFRS project	-	8,950	-	3,000

DB RREEF DIVERSIFIED TRUST Page No. 29 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 8. Current assets - cash and cash equivalents

	Consolidated		Parent Entity
	2007	2006	2007
	\$'000	\$'000	\$'000	\$'000
Cash at bank1	59,603	106,428	9,096	15,743
Total current assets - cash and cash equivalents	59,603	106,428	9,096	15,743

1 Consolidated cash at bank at 30 June 2006 included \$28,933,000 held for the purchase of DIT France Logistique.

Note 9. Current assets - receivables
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Rent receivable	17,671	24,108	2,840	5,424
Less: Provision for doubtful debts	(2,232)	(1,783)	(681)	(273)
Total rental receivables	15,439	22,325	2,159	5,151
Distribution receivable from controlled entities	-	-	-	3,100
Dividend receivable	6,500	4,750	-	-
Other receivables from controlled entities	-	-	12,559	10,778
GST receivable	1,513	954	891	405
Interest receivable	6	8	-	-
Settlement adjustments receivable	-	1,367	-	1,367
Other receivables	12,931	5,850	3,886	1,308
Total other receivables	20,950	12,929	17,336	16,958
Total current assets - receivables	36,389	35,254	19,495	22,109

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 10. Current assets - inventories

	Consolidated	Parent Entity
	2007 \$'000	2006 \$'000	2007 \$'000	2006 \$'000
Land and buildings	-	3,344	-	-
Total current assets - inventories	-	3,344	-	-

Oak Park Business Centre, Minnesota

On 23 August 2006, DB RREEF Industrial Properties, Inc sold Oak Park Business Centre, Minnesota for \$4.0 million (US\$3.0 million).

DB RREEF DIVERSIFIED TRUST Page No. 30 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 11. Loans with related parties

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Current liabilities - loans with related parties
Non-interest bearing loans with the Trusts1	-	-	34,332	34,332
Total current liabilities - loan with related parties	-	-	34,332	34,332

1 Non-interest bearing loans with the Trusts were created to effect the stapling of the Trust, DIT, DOT and DRO. These loan balances eliminate on consolidation.

Note 12. Derivative financial instruments
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Current assets
Interest rate swap contracts	136,160	89,366	28,961	24,498
Forward foreign exchange contracts	9,265	3,112	4,163	1,556
Total current assets - derivative financial instruments	145,425	92,478	33,124	26,054
Current liabilities
Interest rate swap contracts	21,196	19,979	7,861	8,870
Forward foreign exchange contracts	137	498	-	182
Total current liabilities - derivative financial instruments	21,333	20,477	7,861	9,052
Net current derivative financial instruments	124,092	72,001	25,263	17,002

Refer note 32 for futher discussion regarding derivative financial instruments.

DB RREEF DIVERSIFIED TRUST Page No. 31 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 13. Current assets - other financial assets
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Loan notes receivable from DB RREEF Holdings Pty Limited	51,936	45,092	-	-
Total current assets - other financial assets	51,936	45,092	-	-

On 27 September 2004, DB RREEF Holdings Pty Limited ("DRH") issued an equal amount of loan notes to its two owners - First Australian Property Group Holdings Pty Limited ("FAP") and DRO, in order to fund its 100 percent acquisition of DB RREEF Funds Management Limited (the Responsible Entity of DRO). On 31 October 2006, DRH issued further loan notes of equal amounts to its two owners to fund the acquisition of DB RREEF Wholesale Property Limited (the Responsible Entity of DB RREEF Wholesale Property Fund). These loan notes pay a coupon of 11 percent per annum, mature on 1 October 2024 and may be redeemed at any time prior to maturity. It currently is not the intention of either the issuer or the holder to redeem the notes.

Note 14. Current assets - other
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Prepayments	9,651	6,030	2,439	1,227
Tenant bonds	13	20	-	-
Total current assets - other	9,664	6,050	2,439	1,227

Note 15 (a). Current assets - held for sale investment properties

Pro ty per	Ow shi ner p ( %)	Ac isit ion qu dat e	Co st inc lud ing all add itio ns \$'0 00	Ind nde nt epe val uat ion dat e	Ind nde nt epe val uat ion nt am ou \$'0 00	Ind nde nt epe val uer	Co lida ted nso bo ok val ue Ju 30 200 7 ne \$'0 00	Co lida ted nso boo k v alu e Jun 30 e 2 006 \$'0 00
Sa QL 121 Ev Ro ad, lisb D ans ury ,	100 %	Jun 19 97	n/a	n/a	n/a	n/a	-	24, 000

Total held for sale investment properties --- 24,000

Note 15 (b). Non-current assets - investment properties

Pro ty per	Ow shi ner p ( %)	Ac isit ion qu dat e	Co st inc lud ing all add itio ns \$'0 00	Ind nde nt epe val ion uat dat e	Ind nde nt epe val ion uat nt am ou \$'0 00	Ind nde nt epe val uer	Co lida ted nso bo ok val ue 30 Ju 200 7 ne \$'0 00	Co lida ted nso boo k v alu e 30 Jun e 2 006 \$'0 00
He ld b ntit nt e y p are y
Kin Pa rk I ndu stri al E Bow Ro ad, Ma NS W sta te, gs ma ns ray ong ,	100 %	Ma 199 0 y	79 ,43 2	Jun 20 06	93 ,00 0	( f)	101 000 ,	93, 000
Ta t D istr ibu tion Ce Lot 1, Ta Av Alto No rth, VI C ntre rge ras enu e, na ,	100 %	Oc t 19 95	25 ,44 2	Jun 20 05	35 ,00 0	(c )	36, 512	36, 500
Axx Co Pa rk, 164 -18 0 F Ro ad, 11 & 21- 45 Gil by Ro ad, rate ter ess rpo ors
5 F Gu lly Ro ad, Mo W rley VIC 307 -35 tree unt ern ave ,	100 %	Oc t 19 96	156 ,67 5	De c 2 005	147 0 ,75	( f)	184 000 ,	170 ,00 0
Kno xfie ld I ndu stri al E 20 He nde n R oad Kno xfie ld, VIC sta te, rso ,	100 %	Au 199 6 g	30 ,18 8	Jun 20 06	37 ,05 0	( f)	37, 098	37, 050
12 Fre der ick Str St Leo ds, NS W eet nar ,	100 %	Jul 20 00	25 ,57 5	Jun 20 07	38 ,00 0	( f)	38, 000	35, 700
NS 40 Ta lav Ro ad, No rth Ry de, W era	100 %	Oc t 20 02	33 ,32 6	De c 2 006	31 ,20 0	( d)	33, 800	32, 500
2 A lsp Pla Ea rn C k, NS W ste ec ce, ree	100 %	Ma r 20 04	23 ,56 7	De c 2 006	26 ,00 0	(a )	26, 010	23, 555
Re dw ood Ga rde Ind rial Es St s 3 ,5,6 & 7 a nd Lot 4, Din ley VIC 1 ust tate ns age g ,	76%	De c 1 994	23, 678	Jun 20 06	28 ,85 0	(e )	29, 950	28, 850
t S Sy NS 44 Ma rke tree t, dne W y,	100 %	Se 198 7 p	172 ,18 5	Jun 20 06	185 ,00 0	( f)	220 000 ,	185 ,00 0
8 N ich ols Str Me lbo VIC eet on urn e, ,	100 %	No v 1 993	69 ,42 1	Jun 20 05	91 ,80 0	(g )	98, 000	98, 000
Fer Ce , 13 0 G Str Pa NS W ntre eet tta, gus on eor ge rra ma ,	100 %	Ma 199 7 y	99 ,56 2	Jun 20 06	80 ,00 0	( d)	93, 059	80, 000
Flin der s G Co lex , 17 2 F lind St d 1 89 Flin der s L Me lbo VIC ate t an mp ers ree ane urn e, ,	100 %	Ma r 19 99	14 ,01 4	Jun 20 06	18 ,00 0	( d)	18, 265	18, 000
St Sy NS 383 -39 5 K ent t, dne W ree y,	100 %	Se 198 7 p	105 ,79 1	Jun 20 06	115 ,00 0	( d)	131 378 ,	115 ,00 0
Mo St Ca nbe AC T 14 t, ore ree rra ,	100 %	Ma 200 2 y	37 ,39 1	Ap r 20 05	36 ,25 0	(e )	45, 000	38, 000
Sy dne CB D F loo r S e 2 y pac	100 %	Jul 20 00		n/a	-	-	2, 173	2,1 73
Ci Sho Ce We stfi eld W hitf ord ty ing ntre Ma rmi & W hitf ord s A Hi llar W A 3 pp on ven ue, ys,	50%	Oc t 19 84	129 ,61 3	Jun 20 07	252 ,35 0	( d)	252 350 ,	221 ,50 0
We stfi eld W hitf ord s A Lot 6 E nde ur R oad Hill WA 3 ven ue avo ary s, ,	50%	De c 1 992	06 5,5	Jun 20 07	24 ,65 0	( d)	24, 650	11, 000
We st L ake s S hop ing Ce We st L ake SA ntre p s, ,	50%	No v 1 998	119 ,08 8	Jun 20 07	174 ,00 0	(c )	174 000 ,	143 ,00 0
Ple Va lley To Ce , 33 0-4 64 Mc Do nal d's Ro ad, So uth Mo VIC 3 nty ntre wn ran g,	50%	No v 1 999	38 ,13 8	Jun 20 07	66 ,75 0	(c )	66, 750	20, 200
stfi Sho Ce Cn We eld No rth Lak ing ntre r A c A and No rthl ake s D rive es pp nza ven ue , ,
Ma Hi ll, QL D 3 ngo	50%	Au 200 4 g	12 1,4 67	Jun 20 07	164 ,50 0	(c )	164 500 ,	176 77,
Alb & C har lott e S ts C ark Bris ban QL D ert tree arp e, ,	100 %	Oc t 19 84	14 ,63 6	Jun 20 06	38 ,50 0	(e )	39, 354	38, 500
le C Str VIC 34- 60 Litt olli eet Me lbo ** ns urn e, ,	100 %	No v 1 984	16 ,16 4	Jun 20 06	37 ,50 0	( d)	500 39,	37, 500
Flin der s S Me lbo VIC 32- 44 tree t, urn e,	100 %	Jun 19 98	21 ,31 9	Jun 20 06	32 ,50 0	( d)	32, 585	32, 500
Flin der s G Ca rk, 172 -18 9 F lind St Me lbo VIC ate t, rpa ers ree urn e,	100 %	Ma r 19 99	47 ,04 3	Jun 20 06	39 ,00 0	( d)	39, 000	39, 000
383 -39 5 K St Sy dne NS W ent t, ree y,	100 %	Se 198 7 p	30 ,25 7	Jun 20 06	60 ,00 0	( d)	60, 000	60, 000
Ca SA Joh n M arti n's rk & Re tail Pla Joi nt V ent Ad ela ide rpa za ure , ,	1%	Se 199 4 p	-	-	-	-	100	100
To tal tity ent par en			1, 439 478 ,		1, 852 650 ,		1, 987 034 ,	1,6 73, 804

1The valuation reflects 76 percent of independent valuation as 24 percent of the property was disposed

2This relates to heritage floor space retained following the disposal of 1 Chifley Square, Sydney

3The valuation reflects 50 percent of the independent valuation amount.

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

DB RREEF DIVERSIFIED TRUST Page No. 33 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 15 (b). Non-current assets - investment properties (continued)

Pro ty per	Ow shi ner p ( %)	Ac isit ion qu dat e	Co st inc ing lud all	Ind nde nt epe ion val uat	Ind nde nt epe ion val uat	Ind nde nt epe val uer	Co lida ted nso bo ok val ue	Co lida ted nso boo k v alu e
Oth sol ida ted inv ties est nt nt er con me pro per - n on -cu rre			add itio ns \$'0 00	dat e	nt am ou \$'0 00		30 Ju 200 7 ne \$'0 00	Jun 30 e 2 006 \$'0 00
We stfi eld Hu ille For Ro ad and 2 F st R oad Hu ille NS W rstv , 26 2-2 64 est 29 rstv ore , ,	50%	Ma 200 5 y	247 ,09 2	Jun 20 07	307 ,50 0	( d)	307 500 ,	260 ,00 0
376 5 A tlan ta I ndu stri al D rive Atla nta ,	80%	Se 200 4 p	6,0 58	Jun 20 07	5,3 02	(c )	5, 302	4,9 78
710 0 H ig hla nds Pa rkw At lan ta ay,	80%	Se 200 4 p	16 ,52 3	Jun 20 07	18 ,73 5	(c )	18, 735	18, 835
Tow n P ark Dr ive Atla nta ,	80%	Se 200 4 p	7,7 77	Jun 20 07	10 ,01 5	(c )	10, 015	10, 628
Wi llia Dr ive Atla nta ms ,	80%	Se 200 4 p	11 ,73 1	Jun 20 07	13 ,90 4	(c )	13, 904	13, 302
Sto Mo ain Atla unt nta ne ,	80%	Se 200 4 p	8,5 86	Jun 20 07	7,3 05	(c )	7, 305	6,5 92
MD Fo od Pa rk, Ba ltim ore	80%	Se 200 4 p	21 ,94 5	Jun 20 07	28 ,51 4	(c )	31, 187	33, 798
We st N Ba ltim urs ery ore ,	80%	Se 200 4 p	9,2 79	Jun 20 07	10 ,01 5	(c )	10, 015	11, 570
Ca bot Te chs Ba ltim ore ,	80%	Se 200 4 p	24 ,55 0	Jun 20 07	32 ,87 4	(c )	32, 874	37, 401
911 2 G uild ford Ro ad, Ba ltim ore	80%	Se 200 4 p	9,5 99	Jun 20 07	12 ,60 8	(c )	12, 608	13, 454
5 S 815 tay ton Dr ive Ba ltim ore ,	80%	Se 200 4 p	8,1 90	Jun 20 07	9,7 80	(c )	9, 780	10, 628
Pat nt R e R oad Ba ltim uxe ang ore ,	80%	Se 200 4 p	13 ,91 3	Jun 20 07	15 ,78 9	(c )	15, 789	17, 355
Bris tol Co Ba ltim urt, ore	80%	Se 200 4 p	12 ,25 1	Jun 20 07	13 ,19 7	(c )	13, 197	15, 945
NE Ba ltim Ba ltim ore ore ,	80%	Se 200 4 p	8,7 68	Jun 20 07	10 ,48 7	(c )	10, 487	11, 301
1 P l, 1 Po rtal d 6 Tr ibu Ba ltim 118 orta 831 615 tary an ore ,	80%	Jun 20 05	12 ,37 4	Jun 20 07	13 ,78 6	( i)	13, 786	15, 355
10 Ke ood Ci rcle Bos ton nw , Co Ch	80%	Se 200 4 p	12 ,67 0	Jun 20 07	14 ,13 9	(c )	14, 774	14, 933
e P ark arlo tte mm erc , kfo rd S Ch 990 0 B tree arlo	80%	Se 200 4 p	8,5 93	Jun 20 07	10 ,25 1	(c )	10, 251	9,7 54
t, tte roo We stin hou Ch arlo tte	80% 80%	Se 200 4 p Se 200 4	4,4 62 23 ,44 5	Jun 20 07 Jun 20 07	5,3 02 27 ,21 8	(c )	5, 302 28, 541	5,0 45 26, 267
g se, Air t E xch Cin cin i nat e,	80%	p Se 200 4	4,5 74	Jun 20 07	4,5 66	(c ) (c )	4, 566	4,9 78
por ang Em ire Driv Cin cin i nat p e,	80%	p Se 200 4	6,5 22	Jun 20 07	7,0 70	(c )	7, 070	8,4 86
Ci Inte tion al W nci ti rna ay, nna	80%	p Se 200 4 p	12 ,18 8	Jun 20 07	13 ,66 8	(c )	13, 668	14, 463
Ke cky Dr ive Cin cin i ntu nat	80%	Se 200 4 p	13 ,10 9	Jun 20 07	15 ,61 2	(c )	15, 612	16, 279
, Sp iral Dr ive Cin cin i nat ,	80%	Se 200 4 p	7,0 21	Jun 20 07	6,7 16	(c )	6, 716	6,0 54
rfw Ci Tu Ro ad, nci ti ay nna	80%	Se 200 4 p	6,0 14	Jun 20 07	6,2 45	(c )	245 6,	6,3 90
Co Cin cin i 124 nat mm erc e,	80%	Se 200 4 p	2,6 66	Jun 20 07	3,1 81	(c )	3, 181	3,3 63
Ke ood Ro ad, Ci nci ti nw nna	80%	Se 200 4 p	21 ,45 7	Jun 20 07	22 ,38 7	(c )	22, 387	22, 723
Lak e F st D rive Cin cin i nat ore ,	80%	Se 200 4 p	14 ,16 1	Jun 20 07	16 ,02 5	(c )	16, 025	16, 548
Cin Wo rld Pa rk, cin nat i	80%	Se 200 4 p	14 ,97 6	Jun 20 07	15 ,43 5	(c )	15, 435	15, 337
Equ ity /W bel t/D ivid end Co lum bus est ,	80%	Se 200 4 p	43 ,25 6	Jun 20 07	48 ,78 0	(c )	48, 780	50, 081
270 0 In ion al S Co lum bus ter nat tree t,	80%	Se 200 4 p	5,2 59	Jun 20 07	4,9 61	(c )	4, 961	5,2 81
Cr Co 380 0 T win eek s D rive lum bus ,	80%	Se 200 4 p	5,4 30	Jun 20 07	5,9 50	(c )	5, 950	6,7 94
SE Co lum bus Co lum bus ,	80%	Se 200 4 p	15 ,35 5	Jun 20 07	14 ,13 9	(c )	14, 139	16, 279
Arl ing Da llas ton ,	80%	Se 200 4 p	10 ,35 3	Jun 20 07	10 ,84 0	(c )	10, 840	12, 243
190 0 D ip lom at D rive Da llas ,	80%	Se 200 4 p	5,3 36	Jun 20 07	5,4 20	(c )	5, 420	6,1 89
205 5 D ip lom at D rive Da llas ,	80%	Se 200 4 p	4,2 50	Jun 20 07	4,5 07	(c )	4, 507	4,8 43
141 3 B rad ley La Da llas ne,	80%	Se 200 4 p	3,6 45	Jun 20 07	3,5 35	(c )	3, 535	3,8 07
No rth Lak Da llas e,	80%	Se 200 4 p	11 ,35 3	Jun 20 07	15 ,67 1	(c )	15, 671	17, 355
555 Ai rlin e D rive Da llas , Ai rlin e D rive Da llas 455	80% 80%	Se 200 4 p Se 200 4	7,6 54 60	Jun 20 07 Jun 20 07	8,0 12 95	(c )	8, 012	9,2 96
, Hill rd, Da llas gua	80%	p Se 200 4	3,6 10 ,21 5	Jun 20 07	4,5 10 ,95 8	(c ) (c )	4, 595 10, 958	5,1 12 12, 088
110 11 Re Cre st D rive Da llas gen cy ,	80%	p Se 200 4 p	8,4 09	Jun 20 07	8,9 55	(c )	8, 955	9,0 46

DB RREEF DIVERSIFIED TRUST Page No. 34 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 15 (b). Non-current assets - investment properties (continued)

Pro ty per	Ow shi ner p ( %)	Ac isit ion qu dat e	Co st inc lud ing all add itio ns	Ind nde nt epe val uat ion dat e	Ind nde nt epe val uat ion nt am ou	Ind nde nt epe val uer	Co lida ted nso bo ok val ue 30 Ju 200 7 ne	Co lida ted nso boo k v alu e Jun 30 e 2 006
Oth sol ida ted inv ties nt ( tin ued ) est nt er con me pro per - n on -cu rre con			\$'0 00		\$'0 00		\$'0 00	\$'0 00
t C Eas olli Da llas ns,	80%	Se 200 4 p	4,2 25	Jun 20 07	4,4 19	(c )	4, 419	4,9 78
360 1 E Pla no/ 100 0 S hilo h, Da llas ast	80%	Se 200 4 p	14 ,73 2	Jun 20 07	17 ,26 2	(c )	18, 282	20, 030
Eas t P lan o P ark Da llas wa y,	80%	Se 200 4 p	24 ,73 1	Jun 20 07	27 ,80 7	(c )	27, 807	28, 387
820 -86 0 A F, Da llas ven ue	80%	Se 200 4 p	7,8 77	Jun 20 07	7,7 29	(c )	7, 729	9,6 87
h S Da llas 10t tree t,	80%	Se 200 4 p	10 ,87 1	Jun 20 07	11 ,25 3	(c )	11, 841	13, 304
Ca ital Av e D alla p enu s	80%	Se 200 4 p	7,0 25	Jun 20 07	7,8 59	(c )	7, 859	7,6 01
C @ CT Va lwo od, Da llas	80%	Se 200 4 p	3,9 89	Jun 20 07	5,1 84	(c )	5, 184	6,0 54
Bra ckb ill, Ha rris bur g	80%	Se 200 4 p	24 ,76 2	Jun 20 07	28 ,63 2	(c )	28, 632	33, 634
Me cha nic sbu Ha rris bur rg, g	80%	Se 200 4 p	21 ,17 8	Jun 20 07	23 ,80 1	(c )	23, 801	25, 696
181 Fu lling Mi ll R oad Ha rris bur g ,	80%	Se 200 4 p	10 ,56 2	Jun 20 07	11 ,31 1	(c )	11, 311	12, 108
Gle nda le, Los An les ge	80%	Se 200 4 p	59 ,72 1	Jun 20 07	85 ,42 5	(c )	85, 425	86, 725
Ind Cir cle Los An les 144 89 ust ry ge ,	80%	Se 200 4 p	8,0 64	Jun 20 07	13 ,07 9	(c )	13, 079	12, 983
145 Alo ndr a/6 530 Alt Los An les 55 ura ge ,	80%	Se 200 4 p	20 ,35 5	Jun 20 07	33 ,10 9	(c )	33, 109	31, 347
Sa n F and o V alle Los An les ern ge y,	80%	Se 200 4 p	17 ,11 4	Jun 20 07	28 ,86 8	(c )	28, 868	26, 234
Me his Ind ust rial Me his mp mp ,	80%	Se 200 4 p	11 ,03 9	Jun 20 07	11 ,42 9	(c )	11, 429	12, 915
295 0 L exi Av e S Min lis ton ng enu nea po ,	80%	Se 200 4 p	10 ,43 6	Jun 20 07	11 ,48 8	(c )	12, 496	13, 363
Mo und s V iew Min lis nea po ,	80%	Se 200 4 p	24 ,52 4	Jun 20 07	25 ,33 3	(c )	26, 255	29, 173
610 5 T ton La Mi lis ren ne, nne apo	80%	Se 200 4 p	8,7 64	Jun 20 07	9,5 44	(c )	544 9,	10, 763
5 M ice llo Lan Min lis 857 ont e, nea po 740 1 C ahi ll R oad Min	80%	Se 200 4 p	2,0 43	Jun 20 07	2,8 28	(c )	2, 828	3,0 94
lis nea po , C @ CT Du lles No rthe rn V inia	80% 80%	Se 200 4 p Se 200 4	3,9 44 28 3	Jun 20 07 Jun 20 07	3,6 53 37 4	(c )	3, 653	4,0 36
irg , Ale dria No rthe rn V inia xan	80%	p Se 200 4	,91 52 8	Jun 20 07	,70 67 1	(c )	37, 704 384	40, 361 181
irg , No kes Bo ule d, No rthe rn V irg inia var	80%	p Se 200 4	,66 23 ,66 4	Jun 20 07	,75 40 ,06 1	(c )	69, 061	74, 39, 015
Gu ildf ord No rthe rn V irg inia	80%	p Se 200 4	20 ,49 0	Jun 20 07	30 ,63 5	(c ) (c )	40, 30, 635	33, 634
, Bea ead e T ele No rthe rn V irg inia um com	80%	p Se 200 4	37 ,94 3	Jun 20 07	49 ,48 7	(c )	49, 487	55, 159
, Orl and o C ral Pa rk, Orl and ent o	80%	p Se 200 4 p	69 ,68 3	Jun 20 07	88 ,37 0	(c )	88, 962	91, 485
750 0 E xch e D rive Orl and ang o	80%	Se 200 4 p	6,4 18	Jun 20 07	8,2 48	(c )	8, 248	8,4 76
, 105 -10 7 S h 4 1st Av Pho eni out enu e, x	80%	Se 200 4 p	16 ,24 1	Jun 20 07	22 ,03 4	(c )	22, 479	24, 115
So 142 9-1 439 uth 40 th A Ph ix ven ue, oen	80%	Se 200 4 p	10 ,56 3	Jun 20 07	15 ,61 2	(c )	15, 612	16, 144
103 97 We st V Bu St Pho eni an ren x .,	80%	Se 200 4 p	9,1 60	Jun 20 07	16 ,14 2	(c )	16, 142	17, 624
844 44 th A Ph ix ven ue, oen	80%	Se 200 4 p	7,2 13	Jun 20 07	9,7 80	(c )	9, 780	10, 897
So St 220 uth 9th t, Pho eni ree x	80%	Se 200 4 p	8,2 94	Jun 20 07	10 ,95 8	(c )	958 10,	11, 570
No rth h A Ph ix 431 47t ven ue, oen	80%	Se 200 4 p	7,0 59	Jun 20 07	10 ,01 5	(c )	10, 015	10, 359
601 So uth th A Ph ix 55 ven ue, oen	80%	Se 200 4 p	5,3 71	Jun 20 07	6,7 75	(c )	6, 775	7,2 65
100 0 S h P ries t D rive Pho eni out x ,	80%	Se 200 4 p	5,7 76	Jun 20 07	8,2 48	(c )	8, 248	8,0 72
112 0-1 150 W . Al eda Dr ive Pho eni am x ,	80%	Se 200 4 p	8,9 88	Jun 20 07	12 ,60 8	(c )	12, 608	11, 570
8 E En to D rive Pho eni 185 ast can x ,	80%	Se 200 4 p	4,7 18	Jun 20 07	6,9 52	(c )	6, 952	7,2 65
380 2-3 922 Ea st U niv ity Driv Pho eni ers e, x	80%	Se 200 4 p	11 ,18 5	Jun 20 07	12 ,25 4	(c )	12, 254	13, 739
Ch ino Riv ide ers ,	80%	Se 200 4 p	6,9 01	Jun 20 07	11 ,78 3	(c )	11, 783	11, 974
Mir a L Riv ide om a, ers	80%	Se 200 4 p	12 ,24 5	Jun 20 07	24 ,97 9	(c )	24, 979	27, 311
On io, Riv ide tar ers	80%	Se 200 4 p	33 ,91 3	Jun 20 07	61 ,62 4	(c )	61, 624	61, 886
419 0 E Sa An a S Riv ide ast nta tree t, ers	80%	Se 200 4 p	5,7 01	Jun 20 07	11 ,48 8	(c )	11, 488	10, 763
o C Ra nch Riv ide uca mo nga ers ,	80%	Se 200 4 p	25 ,43 6	Jun 20 07	46 ,66 0	(c )	46, 660	47, 491
Jer Co Ri sid 120 00 urt, sey ver e	80%	Se 200 4 p	4,9 00	Jun 20 07	9,1 32	(c )	9, 132	9,5 18
Air Ro ad, Sa n D ieg wa y o	80%	Se 200 4 p	10 ,92 1	Jun 20 07	15 ,61 2	(c )	15, 612	16, 817
Sa 582 3 N ton Dr ive n D ieg ew o ,	80%	Se 200 4 p	19 ,34 3	Jun 20 07	31 ,22 4	(c )	31, 224	30, 270
0 O ak Rid Wa Sa n D ieg 221 ge y, o	80%	Se 200 4 p	5,8 99	Jun 20 07	8,4 84	(c )	8, 484	9,0 14

DB RREEF DIVERSIFIED TRUST Page No. 35 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 15 (b). Non-current assets - investment properties (continued)

Pro ty per	Ow shi ner p ( %)	Ac isit ion qu dat e	Co st inc lud ing all	Ind nde nt epe val ion uat	Ind nde nt epe val ion uat	Ind nde nt epe val uer	Co lida ted nso bo ok val ue	Co lida ted nso boo k v alu e
ida inv ties nt ( tin ) Oth sol ted est nt ued er con me pro per - n on -cu rre con			add itio ns \$'0 00	dat e	nt am ou \$'0 00		30 Ju 200 7 ne \$'0 00	30 Jun e 2 006 \$'0 00
Ke nt W Se attl est e ,	80%	Se 200 4 p	32 ,90 4	Jun 20 07	41 ,82 9	(c )	41, 829	40, 901
- S Se 265 07 79t h A out h, attl ven ue e	80%	Se 200 4 p	3,0 94	Jun 20 07	4,1 24	(c )	4, 124	4,0 36
5 S 6th St Se attl 800 . 26 t, ree e	80%	Se 200 4 p	8,1 38	Jun 20 07	10 ,13 3	(c )	10, 133	10, 494
We st P alm Be ach So uth Flo rida ,	80%	Se 200 4 p	24 ,87 3	Jun 20 07	30 ,75 3	(c )	30, 753	32, 356
Ca lve rt/M 's, No rthe rn V irg inia urry	80%	Se 200 4 p	6,2 46	Jun 20 07	7,4 70	(c )	7, 470	7,3 99
Ce Tu ike Di stri but ion nte rnp r	80%	Se 200 5 p	23 ,05 3	Jun 20 07	30 ,63 5	(c )	30, 635	-
8th Av Bro okl Pa rk 770 0 6 enu e, yn	100 %	No v 2 005	6,4 92	No v 2 005	6,2 78	(c )	6, 007	6,9 49
750 0 W 78 th S Blo ing est tree t, ton om	100 %	No v 2 005	5,6 32	No v 2 005	7,4 41	(c )	7, 116	8,4 29
Co Ce 128 5 & 13 01 rate nte r D rive , 12 30 & 1 270 Ea Ind ust rial Ro ad, Ea rpo gan gan	100 %	No v 2 005	19 ,73 9	No v 2 005	17 ,74 1	(c )	20, 178	20, 987
St Hill iers Ro ad, Au bur NS W 79- 99 n,	100 %	Se 199 7 p	38 ,29 6	Jun 20 07	45 ,25 0	(a )	45, 250	41, 749
3 B kho llow Av Ba ulk ham Hi lls, NS W roo enu e,	100 %	De c 2 002	45 ,09 6	De c 2 005	42 ,40 0	( f)	54, 700	43, 251
1 G arig al R oad Be lros NS W e, ,	100 %	De c 1 998	23 ,36 2	Jun 20 07	31 ,00 0	( d)	31, 000	31, 900
a C NS 2 M inn los Be lros W e, e,	100 %	De c 1 998	35 ,08 9	Jun 20 07	35 ,00 0	( d)	35, 000	33, 707
0 O ld P ittw r R oad Bro okv ale NS W 114 -12 ate , ,	100 %	Se 199 7 p	35 ,26 5	Jun 20 06	45 ,50 0	( f)	52, 900	45, 500
145 -15 1 A rthu r S Fle min NS W tree t, ton g ,	100 %	Se 199 7 p	24 ,38 3	Jun 20 05	31 ,00 0	( f)	36, 900	34, 135
Gl NS 436 -48 4 V icto ria Ro ad, ade svi lle, W	100 %	Se 199 7 p	28 ,86 1	Jun 20 07	53 ,00 0	(e )	53, 000	48, 500
1 F dat ion Pla Gr NS W tan oun ce, eys es,	100 %	De c 2 002	39 ,21 6	Jun 20 06	46 ,00 0	(e )	48, 055	46, 000
706 Mo wb Ro ad, La Co NS W ray ne ve,	100 %	Se 199 7 p	n/a	n/a	n/a	-	-	26, 200
5-1 3 R ber Ave & ose y nue	100 %	Ap r 19 98	73, 831	De c 2 005	92 ,80 0	( f)	98, 438	93, 158
NS 1-5 5 R oth sch ild Ave Ro seb W nue ery , ,		& O ct 2 001
So uth St Ry dal NS W 10- 16 t, ree me re,	100 %	Se 199 7 p	36 ,60 1	De c 2 006	47 ,00 0	( f)	47, 425	44, 682
19 Ch ifle Str Sm ithf ield NS W eet y , ,	100 %	De c 1 998	12 ,07 2	De c 2 005	17 ,20 0	(a )	18, 500	17, 499
VIC Pou nd Ro ad We st, Da nde non g,	100 %	Jan 20 04	60 ,96 8	Jun 20 05	56 ,25 0	(c )	74, 000	58, 000
Ma lay Ro ad, Ke nsi VIC 352 ton cau ng ,	100 %	Oc t 19 98	7,6 16	De c 2 005	8,9 00	(g )	9, 300	8,9 00
DB RR EE F In dus tria l Es Bo und Ro ad, La No rth, VI C tate ton ary ver	100 %	Jul 20 02	22 ,61 4	Jun 20 04	23 ,70 0	(c )	26, 900	17, 500
250 Fo t R oad So uth La VIC res ra, ,	100 %	De c 2 002	33 ,75 7	Jun 20 05	34 ,60 0	(e )	43, 700	40, 900
Gil SA 15- 23 Wh icke r R oad lma n, ,	100 %	De c 2 002	19 ,78 3	De c 2 006	25 ,50 0	( d)	25, 500	24, 600
Do nki n S t S h, Bris ban QL D 25 tree out e,	100 %	De c 1 998	19 ,34 5	Jun 20 05	20 ,70 0	(e )	28, 000	23, 614
52 Ho lbe che Ro ad, Ar nde ll P ark NS W ,	100 %	Jul 19 98	11 ,33 5	De c 2 005	12 ,50 0	( d)	14, 000	12, 500
r S NS 3-7 Be tree t, Bla ckt W sse me ow n,	100 %	Jun 19 97	11 ,13 9	Se 200 6 p	10 ,25 0	( d)	10, 800	10, 209
Bes er S Bla ckt NS W 30- 32 tree t, sem ow n,	100 %	Ma 199 7 y	11 ,94 6	Jun 20 06	17 ,85 0	( f)	19, 000	17, 850
27- 29 Lib Ro ad, Hu ntin ood NS W erty gw ,	100 %	Jul 19 98	8,1 99	Jun 20 06	9,0 00	(e )	9, 228	9,0 00
154 O' Rio rda n S Ma NS W tree t, t, sco	100 %	Jun 19 97	11 ,03 8	De c 2 006	16 ,00 0	(a )	16, 065	14, 600
NS 11 Ta lav Ro ad, No rth Ry de, W era	100 %	Jun 20 02	134 ,35 9	Jun 20 06	145 ,50 0	( d)	152 000 ,	145 ,50 0

DB RREEF DIVERSIFIED TRUST Page No. 36 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 15 (b). Non-current assets - investment properties (continued)

Pro ty per	Ow shi ner p ( %)	Ac isit ion qu dat e	Co st inc lud ing all add itio ns \$'0 00	Ind nde nt epe val ion uat dat e	Ind nde nt epe val ion uat nt am ou \$'0 00	Ind nde nt epe val uer	Co lida ted nso bo ok val ue 30 Ju 200 7 ne \$'0 00	Co lida ted nso boo k v alu e 30 Jun e 2 006 \$'0 00
DB RR EE F In dus tria l Es Ege St Silv NS W tate rton t, ate ree erw r, ,	100 %	Ma 199 7 y	36 ,60 0	De c 2 005	42 ,00 0	( f)	47, 583	43, 900
Sm NS 239 -25 1 W ood k R oad ithf ield W par , ,	100 %	Ma 199 7 y	5,1 02	Jun 20 06	6,4 50	( f)	7, 100	6,4 50
Bilo ela St Vill ood NS W 40 t, ree aw ,	100 %	Jul 19 97	6,8 49	Jun 20 06	8,7 50	(a )	8, 797	8,7 50
27- 33 Fra nk Str We the rill Pa rk, NS W eet ,	100 %	Jul 19 98	n/a	n/a	n/a	-	-	13, 200
114 Fa irba nk Ro ad, Cl VIC ton ay ,	100 %	Jul 19 97	11 ,14 0	Jun 20 06	12 ,80 0	(c )	12, 800	12, 800
k S QL 30 Be llric tree t, Aca cia Ri dge D ,	100 %	Jun 19 97	13 ,16 6	De c 2 005	17 ,37 5	(e )	20, 650	18, 700
68 Ha sle r R oad He rds WA ma n, ,	100 %	Jul 19 98	9,7 22	De c 2 006	9,7 50	( f)	10, 800	9,5 00
Zon e In dus tria l Ep II, Epo one ne	100 %	Jul 20 06	12 ,15 7	Jun 20 07	12 ,62 9	( h)	12, 629	-
Sa Qu 19 de Br eta int- ent in F alla vie rue gne r ,	100 %	Jul 20 06	21 ,95 4	Jun 20 07	19 ,31 5	( h)	19, 343	-
du Ch in B lan Ch lan 21 rue em c, am p	100 %	Jul 20 06	21 ,77 5	Jun 20 07	15 ,84 5	( h)	15, 845	-
32 de l'O nie Vill eju st ave nue cea ,	100 %	Jul 20 06	16 ,92 9	Jun 20 07	14 ,49 8	( h)	15, 160	-
RN 19 ZA C d e L 'Or s R oad Se n ( 1) me rvo ,	100 %	Jul 20 06	30 ,60 2	Jun 20 07	33 ,03 8	( h)	33, 038	-
C d 'Or Se n ( 2) RN 19 ZA e L s R oad me rvo ,	100 %	Jul 20 06	10 ,49 9	Jun 20 07	10 ,91 8	( h)	10, 917	-
Im Ho lde rbu sch 3, Ind ries ße, Su lms ße, El lho fen -W ein sbe ust tra tra rg	100 %	De c 2 006	25 ,31 9	De c 2 006	23 ,94 2	( d)	25, 319	-
Sch ille aße 51 Ellh ofe rstr n ,	100 %	De c 2 006	20 ,97 2	De c 2 006	19 ,83 9	( d)	20, 972	-
Sch ille rstr aße 42 , 42 Ba hnh ofs tra ße 44, 50 Ellh ofe a, n ,	100 %	De c 2 006	13 ,16 8	De c 2 006	12 ,45 5	( d)	13, 168	-
Im Ge rbe bie Frie dew ald t 18 we ge ,	100 %	De c 2 006	8,4 92	De c 2 006	8,0 34	( d)	8, 492	-
Im Ste inb h 4 , 6, Kn etz ruc gau Ca rl-L s-S ße Wi	100 %	De c 2 006	16 ,65 4	De c 2 006	15 ,75 0	( d)	16, 654	-
rku 3-5 nke lsw 182 -18 4, Lan feld tra eve eg gen , Sch ße nfe nei der stra La	100 %	De c 2 006	16 ,67 5	De c 2 006	15 ,63 9	( d)	16, 675	-
82, ld 3 nge Üb er d er D els tell Lan ddi	100 %	De c 2 006	9,5 64	De c 2 006	9,0 48	( d)	9, 564	-
ing e, gen we nge n	100 %	De c 2 006	12 ,11 2	De c 2 006	11 ,45 6	( d)	12, 112	-
No rds ße 1, Löb tra au r S For ße Un	100 %	De c 2 006	2,0 45	De c 2 006	1,9 33	( d)	2, 045	-
tra 6, me na Nie des hei r S ße W tra	100 %	De c 2 006 De	27 ,70 8	De c 2 006 De	26 ,20 8 27	( d)	27, 708	-
24, me orm s Liv ool er-/ Ko hag r-/ O slo er S ße, Du isb tra ene	100 % 100 %	c 2 006 De c 2 006	6,5 82 32 0	c 2 006 De c 2 006	6,2 30 3	( d)	6, 582 840	-
erp pen urg Bre r R ing Ha ße, Be rlin -W ark stra ust me nse erm	100 %	De c 2 006	,84 17 ,74 7	De c 2 006	,80 16 ,78 0	( d) ( d)	32, 17, 747	-
, rSt raß rf 1 The odo Dü ldo e, sse	100 %	De c 2 006	27 ,15 2	De c 2 006	25 ,82 8	( d)	27, 152	-
Ora St Orl and FL t, nge ree o,	100 %	Jun 20 07	29 ,86 7	n/a	n/a		29, 867	-
Go Ph illip To r & Go Ma arie To r O ffic e C lex , 1 Far Pla ver nor we ver nor cqu we om p rer ce,						-		-
Sy NS dne W y,	50%	De c 1 998	482 ,25 6	De c 2 006	638 ,75 0	( f)	646 710 ,	575 ,00 0
Cla Str Sy dne NS W 45 eet ren ce y, ,	100 %	De c 1 998	222 ,87 8	Jun 20 07	265 ,00 0	(e )	265 000 ,	228 ,00 0
309 -32 1 K St Sy dne NS W ent t, ree y,	50%	De c 1 998	169 ,33 6	De c 2 006	183 ,50 0	(a )	194 000 ,	165 ,00 0
1 M t S Sy dne NS W tree t, arg are y,	100 %	De c 1 998	142 ,65 0	Jun 20 05	139 ,00 0	(c )	181 000 ,	152 ,00 0
ia C r S Sy NS Vic tor s 6 0 M ille tree t, No rth dne W ros y,	100 %	De c 1 998	90 ,95 1	De c 2 005	90 ,00 0	( f)	103 101 ,	95, 000
Zen ith Ce , 82 1-8 43 Pac ific Hig hw Ch od, NS W ntre ats ay, wo	50%	De c 1 998	98 ,50 6	Jun 20 07	130 ,00 0	(a )	130 000 ,	217 ,00 0
Wo ods ide Pla 24 0 S t G Te Pe rth, W A za, eor ges rrac e,	100 %	Jan 20 01	240 ,85 4	Jun 20 06	315 ,00 0	(c )	390 000 ,	315 ,00 0
Sy NS 30 The Bo nd, 30 -34 Hi cks Ro ad, dne W on y,	100 %	Ma 200 2 y	118 ,10 0	Jun 20 06	150 ,00 0	(e )	170 000 ,	150 ,00 0
So uth te C lex So uth te A So uth VIC , 3 te, ga om p ga ven ue, ga	100 %	Au 200 0 g	356 ,45 4	Jun 20 07	380 ,00 0	(c )	380 000 ,	390 ,00 0
O'C ell Ho , 15 -19 Be nt S Sy dne NS W tree t, onn use y,	100 %	Au 200 0 g	49 ,38 2	Se 200 4 p	55 ,50 0	(e )	54, 464	54, 400
201 -21 7 E liza bet h S Sy dne NS W tree t, y,	50%	Au 200 0 g	114 ,37 4	Jun 20 07	158 ,75 0	( d)	158 750 ,	122 ,00 0
Ga a C Ci Civ AC t, 1 40- 180 ty Wa lk, ic, T rem our	100 %	Au 200 0 g	43 ,66 5	Jun 20 06	52 ,00 0	( f)	63, 500	52, 000
Au lia Sq e C lex , 26 4-2 78 Ge e S Sy dne NS W stra t, uar om p org y,	50%	Au 200 0 g	206 ,82 5	Jun 20 05	184 ,00 0	( d)	261 739 ,	226 ,00 0
1 Lum ley Ce , 88 Sh ortl and St Au ckl and Ne w Z eal and ntre , ,	100 %	Se 200 5 p	92 ,18 7	De c 2 006	123 ,35 6	( d)	131 519 ,	101 ,17 3
To tal oth sol ida ted inv ties est nt nt er con me pro per - n on -cu rre			5, 226 383 ,		6, 184 052 ,		6, 598 669 ,	5,8 85, 141
To tal inv est nt ties nt me pro per - n on -cu rre			6, 665 861 ,		8, 036 702 ,		8, 585 703 ,	7,5 58, 945

1The property was externally valued at NZ\$136,000,000 at 31 December 2006 and internally valued at NZ\$145,000,000. These valuations have been translated in to Australian dollars at the spot rate on 30 June 2007. The title to all properties is freehold, with the exception of the properties marked ** which are leasehold.

Note 15 (b). Non-current assets - investment properties (continued)

(a) Colliers International (b) Landmark White (c) CB Richard Ellis (d) Jones Lang LaSalle (e) Knight Frank Valuations (f) FPD Savills (g) M3 Property (h) Catella (i) Weiser Realty Advisors

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 location and condition and subject to similar leases. Properties independently valued in the last 12 months were based on independent assessments by a member of the Australian Property Institute, the New Zealand Institute of Valuers, the Appraisal Institute in the United States of America, the French Real Estate Valuation Institution or the Society of Property Researchers, Germany .

Developments

105 Phillip St, Parramatta

Approval has been received to construct a thirteen level office tower with approximately 19,400 sqm of floorspace at 105 Phillip St, Parramatta, a site at the rear of the existing building at 130 George St, Parramatta. No decision has been made to proceed with the development at this stage, however the manager is marketing the potential development to tenants.

North Lakes Shopping Centre

In September 2006 construction began on the expansion of North Lakes Shopping Centre with an estimated project cost of \$101.3 million (50% share). The redevelopment of North Lakes phase 1 is scheduled to be completed by the end of November 2007 with any residual leasing to be completed within the subsequent 6 months. Phase 2 (Myer) is due for completion in June 2008.

Plenty Valley Town Centre

Construction began in November 2006 for the expansion of Plenty Valley Town Centre. Project costs are estimated to be \$101.4 million and the project is due to complete in June 2008.

Boundary Road, North Laverton, VIC

In February 2006, DIT entered into an agreement to lease and build a warehouse and distribution facility for Wrightson Seeds Australia Limited. Practical completion was achieved on 31 October 2006 with a development cost of \$6.1 million.

Turnpike Distribution Center, Medley, Florida

Development of a single 268,119 square feet industrial building was completed as of May 31, 2007, and the property is currently 100% leased. This property has been transferred to investment properties from property, plant and equipment during the year.

Acquisitions

Prologis France I SAS

On 11 July 2006, DIT France Logistique, a wholly owned subsidiary of DIT, acquired all the shares in Prologis France I SAS. This company has investment properties with a market value of approximately \$73.4 million (€42.9 million) on acquisition, Zone Industrial Epone II Epone, 19 rue de Bretagne Saint-Quentin Fallavier, 21 rue du Chemin Blanc Champlan and 32 avenue de l'Oceanie Villejust.

Prologis France XXXII EURL

On 11 July 2006, DIT France Logistique, a wholly owned subsidiary of DIT, acquired all the shares in Prologis France XXXII EURL. This company has investment properties with a market value of approximately \$42.7 million (€24.9 million) on acquisition, RN 19 ZAC de L'Ormes Road Servon (1) and RN 19 ZAC de L'Ormes Road Servon (2).

DB RREEF GLOG Trust

On 31 December 2006, DIT via a newly created sub-trust, DB RREEF GLOG Trust, acquired 13 properties located in Germany for \$208.0 million (€125.1 million). On 29 June 2007, the final property in Dusseldorf was acquired for \$25.6 million (€16.2 million). Registration of the transfer of title with the Land Registry in Germany has occurred progressively since December with the transfer of the final two properties still to occur at 30 June 2007 although DB RREEF GLOG Trust had possession and beneficial title to the properties from 31 December 2006.

Note 15 (c). Non-current assets - investment properties (continued)

Acquisitions (continued)

DRT US Whirlpool Trust

On 22 August 2006, DIT, DDF and DB RREEF US Properties, LLC ("DRUS", and together with DIT and DDF, collectively, "Investor") entered into an investor agreement ("Investor Agreement") with Whirlpool Corporation ("Whirlpool"), the world's largest maker of home appliances. Under this agreement, the Investor or its affiliate has committed to investing up to \$489 million (US\$415 million) to acquire certain facilities across the US, Canada and Europe, to be built over the next three years and leased long term to Whirlpool or its affiliates for the warehousing and distribution of Whirlpool finished products. Subsequently, Panattoni Development Company, LLC ("Developer"), and Whirlpool entered into the Development Agreement. Under this agreement, the Developer would acquire real property, develop and construct regional distribution centers (each, an "RDC") and sell the completed RDC to the Investor for lease to Whirlpool pursuant to the Investor Agreement. This build-to-suit program is anticipated to comprise the development of approximately 10,000,000 square feet of 10-12 class A, state-of-the-art distribution facilities in the US, Canada and Europe. The acquisition of the first facility in Orlando, Florida was completed in June 2007 with a purchase price of \$28.6 million (US\$24.3 million). The acquisition of the facility in Toronto, Canada is estimated to be completed in December 2007 with an estimated cost of \$76.2 million (US\$64.7 million). The acquisition of the additional facilities will occur following construction completion and occupancy by Whirlpool.

In connection with the June acquisition of the Orlando property, DDF sold its interest in DRUS to DIT and accordingly, DDF is no longer an investor in this program.

Disposals

121 Evans Road, Salisbury, QLD

In June 2006, DIT entered into an agreement for sale of 121 Evans Road, Salisbury for \$24.0 million. Settlement occurred on 25 August 2006.

706 Mowbray Road, Lane Cove, NSW On 31 January 2007, DIT sold 706 Mowbray Road, Lane Cove for \$29.3 million.

27-33 Frank Street, Wetherill Park, NSW On 20 June 2007, DIT sold 27-33 Frank Street, Wetherill Park for \$16.0 million.

The Zenith, 821-843 Pacific Highway, Chatswood, NSW On 31 January 2007, DOT sold 50% of The Zenith, 821 - 843 Pacific Highway, Chatswood, NSW for \$126.2 million.

Reconciliation

	Co lida nso	ted	Pa t E ntit ren y
	30 Ju 200 7 ne	30 Jun e 2 006	30 Ju 200 7 ne	30 Jun e 2 006
	\$'0 00	\$'0 00	\$'0 00	\$'0 00
Ca ing t at 1 J uly 20 06 rry am oun	558 945 7, ,	6,5 20, 919	1, 673 804 ,	1,3 98, 751
Ad diti ons	132 479 ,	115 ,03 8	94, 638	84, 483
Acq uis itio ns	396 178 ,	155 ,79 3	-	-
Tra nsf er f lan d e ipm ty p t an ent rom pro per qu	30, 328	-	-	-
nsf for Tra er t o h eld le i stm ent ties sa nve pro per	-	( ) 24, 000	-	-
Lea inc ive ent se s	59, 655	87, 943	6, 965	10, 055
Am orti ion of lea inc ive sat ent se s	( 37, 702 )	( 26, 443 )	( 6, 220 )	( 5,4 87)
Re nt s tra ig htli nin g	9, 986	14, 484	-	-
Dis als pos	( 165 918 ) ,	( 8,2 77)	-	-
Ne in f fai lue ad jus t ga tme nts rom r va	831 330 ,	695 ,66 6	217 847 ,	186 ,00 2
For eig xch e d iffe fore ign nsl atio tra n e ang ren ce on cu rre ncy n	( ) 229 578 ,	27, 822	-	-
Ca ing t 30 Ju 200 nt a 7 rry am ou s a ne	8, 585 703 ,	7,5 58, 945	1, 987 034 ,	1,6 73, 804

Note 16. Non-current assets - property plant and equipment

(a) Property plant and equipment

	Consolidated			Parent Entity
2007	Construction in progress	Freehold land and buildings	Total	Construction in progress	Freehold land and buildings	Total
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Opening balance as at 1 July 2006	104,190	69,278	173,468	-	-	-
Additions	114,937	65,312	180,249	-	-	-
Foreign exchange differences on foreign currency translation	(6,880)	-	(6,880)	-	-	-
Depreciation charge	-	(2,488)	(2,488)	-	-	-
Transfer to investment properties	(30,328)	-	(30,328)	-	-	-
Closing balance as at 30 June 2007	181,919	132,102	314,021	-	-	-
Cost	181,919	135,613	317,532	-	-	-
Accumulated depreciation	-	(3,511)	(3,511)	-	-	-
Net book value as at 30 June 2007	181,919	132,102	314,021	-	-	-
	Consolidated			Parent Entity
2006	Construction	Freehold land	Total	Construction	Freehold land	Total
	in progress	and buildings		in progress	and buildings
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Opening balance as at 1 July 2005	15,107	12,806	27,913	-	-	-
Additions	89,083	57,495	146,578	-	-	-
Depreciation charge	-	(1,023)	(1,023)	-	-	-
Closing balance as at 30 June 2006	104,190	69,278	173,468	-	-	-
Cost	104,190	70,301	174,491	-	-	-
Accumulated depreciation	-	(1,023)	(1,023)	-	-	-
Net book value as at 30 June 2006	104,190	69,278	173,468	-	-	-

(b) Basis of valuation

Freehold land and buildings are accounted for using the cost method (refer note 1(n)). Construction in progress is recognised at fair value. As at 30 June 2007, the fair value of construction in progress is equal to cost.

(c) Non-current assets pledged as security

Refer to note 22 for information on non-current assets pledged as security by the parent entity and its controlled entities.

(d) Acquisitions and developments

Acquisitions

144 Wicks Road, North Ryde, NSW

On 20 November 2006, DOT (through its sub-trust Wicks Road Trust), acquired a 50% ownership interest in the former Peter Board High School site, 144 Wicks Road, North Ryde, NSW for a consideration of \$25.9 million.

Dohertys Road, North Laverton, VIC

In November 2006, DIT purchased 440 Dohertys Road, North Laverton a land parcel adjacent to DB RREEF Industrial Estate, Laverton North for \$32.0 million.

Summit Oaks, Valencia, California

On December 13, 2006, DB RREEF Industrial Properties Sub A Inc. ("DB RREEF Sub A") formed a joint venture (Summit Oaks RP-V2, LLC, "Summit Oaks") with Parker Oaks, LLC to acquire a property located in Santa Clarita, California. DB RREEF Sub A is owned 100% by US REIT. At closing, Parker Oaks, LLC ("Parker") contributed land with an agreed upon value of \$1.8 million (US\$1.4 million) (net of reimbursement for carrying costs incurred prior to the acquisition) which represents the only scheduled contribution that will be made by Parker to the Joint Venture. US REIT contributed \$2.1 million (\$US1.7 million) in cash and also funded \$3.5 million (US\$2.8 million) in the form of a land loan that repaid the existing bank land loan. At closing, the ownership percentage is 54% and 46% for DB RREEF Sub A and Parker respectively. After funding 100% of the remaining equity contributions, the ownership percentage is expected to become 91.6% and 8.4% for DB RREEF Sub A and Parker respectively.

Developments

Boundary Road, North Laverton, VIC

In June 2005, DIT entered into agreements to lease and build a major distribution centre for Coles Myer Limited. Practical completion was achieved on 15 February 2007. In August 2006, DIT entered into agreement to lease and build a distribution centre (including external canopy areas) for Fosters Limited. Construction of this building has commenced and completion is expected in July 2007.

Turnpike Distribution Center, Medley, Florida

Development of a single 268,119 square feet industrial building was completed as of May 31, 2007, and the property is currently 100% leased. This has been transferred to investment properties at 30 June 2007.

Dulles Town Crossing, Herndon, Virginia

The development of this land parcel consists of two four-story office buildings comprising 220,000 square feet in a rapidly growing area of Virginia. The total budgeted cost for the project is \$56.1 million (US\$47.6 million), including the initial cost of the land. The current plan calls for construction completion in early 2008 with stabilization occurring approximately 12-15 months thereafter. Total costs incurred to June 30, 2007 are \$12.8 million (US\$10.9 million).

Summit Oaks, Valencia, California

The development of this land consists of a five-story office building comprising 139,392 square feet in Santa Clarita, California. The total budgeted cost for the project is \$53.3 million (US\$45.2 million). The current plan calls for construction completion in August 2008 with stabilization occurring approximately 12-15 months thereafter. Total costs incurred to June 30, 2007 are \$12.4 million (US\$10.5 million).

Note 17. Non-current assets - other financial assets at fair value through profit and loss

Investments are adjusted to their fair value through the Income Statements.

Name of Entity	Principal activity		Ownership interest	Parent Entity
		2007	2006	2007	2006
Controlled Entities		%	%	\$'000	\$'000
DB RREEF Hurtsville Trust	Retail property investment	100	100	294,901	247,172
DB RREEF Industrial Trust1	Industrial property investment	100	100	-	-
1 DB RREEF Office Trust	Commercial property investment	100	100	-	-
DB RREEF Operations Trust1	Financial services	100	100	-	-
	Total non-current assets - other financial assets at fair value through profit and loss			294,901	247,172
Reconciliation				Parent Entity
Opening balance as at 1 July 2006				247,172	233,867
Distributions				(15,650)	(16,800)
Fair value gain				63,379	30,105
Closing balance as at 30 June 2007				294,901	247,172

1 In accordance with AASB Interpretation 1002, DDF is the deemed acquirer of DIT, DOT and DRO and therefore they are reflected in the financial statements as controlled entities of DDF.

All controlled entities are wholly owned by the Trust. Both the parent entity and the controlled entities were formed in Australia.

\$'000 \$'000

Note 18. Non-current assets - investments accounted for using the equity method

Investments 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	Principal activity	Ownership	Ownership	Consolidated		Parent Entity
		interest 2007 %	interest 2006 %	2007 \$'000	2006 \$'000	2007 \$'000	2006 \$'000
Held by parent entity
Mt Druitt Shopping Centre Trust	Retail property investment	50	50	211,517	182,500	211,517	182,500
DB RREEF Industrial Properties, Inc.1	Asset, property and funds management	50	50	-	-	270,195	271,898
Held by controlled entities
2 O'Connell Street Trust	Commercial property investment	50	50	8,565	9,702	-	-
4 O'Connell Street Trust	Commercial property investment	50	50	16,054	15,197	-	-
Bligh Street Trust	Commercial property investment	50	50	16,133	11,902	-	-
DB RREEF Holdings Pty Limited ("DRH")	Asset, property and funds management	50	50	17,886	15,761	-	-
Total				270,155	235,062	481,712	454,398

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

1 The remaining 50% of this entity is owned by DIT. As a result, this entity is classed as controlled on a DDF consolidated basis.

Movements in carrying amounts of investments accounted for using the equity method	Consolidated
	2007	2006
	\$'000	\$'000
Opening balance as at 1 July 2006	235,062	208,732
Interest acquired during the year	2,053	18,335
Share of net profits after tax	52,715	26,911
Distributions/Dividends received	(19,675)	(18,916)
Closing balance as at 30 June 2007	270,155	235,062
Results attributable to associates
Operating profits before income tax	55,550	29,187
Income tax expense	(2,835)	(2,276)
Operating profits after income tax	52,715	26,911
Less: Distributions/Dividends received	(19,675)	(18,916)
	33,040	7,995
Undistributed income attributable to associates as at 1 July 2006	13,299	5,304
Undistributed income attributable to associates as at 30 June 2007	46,339	13,299
	Consolidated
	2007	2006

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	52,715	26,911
Assets	534,997	274,809
Liabilities	190,754	66,294
Share of associates' expenditure commitments Capital commitments	-	-

Contingent event of investments accounted for using the equity method

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

Upon satisfaction of certain conditions, FAP may elect to exercise a put option granted to it in relation to the sale of its 50% investment in DRH.

DB RREEF DIVERSIFIED TRUST Page No. 42 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 19. Non-current assets - deferred tax assets

		Consolidated		Parent Entity
		2007	2006	2007	2006
	Notes	\$'000	\$'000	\$'000	\$'000
The balance comprises temporary differences attributable to:
Amounts recognised in profit or loss
Derivative financial instruments		2,140	46	-	-
Tax losses		1,497	-	-	-
Other		284	70	-	-
Net deferred tax assets		3,921	116	-	-
Movements
Opening balance at 1 July 2006		116	127	-	-
Change on adoption of AASB 132 and AASB 139		-	196	-	-
Credited/(charged) to the Income Statements		3,805	(207)	-	-
Closing balance at 30 June 2007		3,921	116	-	-
Note 20. Non-current assets - other
		Consolidated		Parent Entity
		2007	2006	2007	2006
		\$'000	\$'000	\$'000	\$'000
Tenant and other bonds		2,631	1,819	803	750
Other		7,276	5,193	-	-
Total non-current assets - other		9,907	7,012	803	750
Note 21. Current liabilities - payables
		Consolidated		Parent Entity
		2007	2006	2007	2006
		\$'000	\$'000	\$'000	\$'000
Trade creditors		41,554	51,964	6,423	10,394

Total current liabilities – payables	124,509	100,901	24,129	15,671
Other	-	34	-	-
Deferred settlement of property acquisition	-	475	-	475
Accrued interest	33,931	24,095	1,591	1,258
GST payable	2,797	1,350	-	-
Responsible Entity fee payable	3,375	2,692	1,342	1,093
Prepaid income	4,944	7,727	690	1,409
Accrued capital expenditure	24,284	2,117	13,204	-
Amount payable to other minority interest	3,978	3,509	-	-
Accruals	9,646	6,938	879	1,042
Trade creditors	41,554	51,964	6,423	10,394

DB RREEF DIVERSIFIED TRUST Page No. 43 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 22. Interest bearing liabilities

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Current
Secured
Bank loans	12,828	29,402	-	-
Total secured	12,828	29,402	-	-
Unsecured
Bank loans	7,070	217,000	-	-
Total unsecured	7,070	217,000	-	-
Deferred borrowing costs	(1,455)	(1,849)	-	-
Total current liabilities - interest bearing liabilities	18,443	244,553	-	-
Non-current
Secured
Commercial paper	344,500	452,449	-	-
Commercial mortgage backed securities	684,693	710,883	-	-
Bank loans	357,195	422,508	-	-
Total secured	1,386,388	1,585,840	-	-
Unsecured
Commercial notes	471,309	538,140	-	-
Bank loans	1,026,957	825,449	-	-
Medium term notes	456,153	7,025	-	-
Intercompany loan1	-	-	703,442	707,039
Preference shares	109	125	-	-
Total unsecured	1,954,528	1,370,739	703,442	707,039
Deferred borrowing costs	(6,032)	(6,085)	(528)	(53)
Total non-current liabilities - interest bearing liabilities	3,334,884	2,950,494	702,914	706,986

1 The intercompany loan represents a loan from DB RREEF Finance Pty Limited to the Trust. These loan balances eliminate on consolidation.

DB RREEF DIVERSIFIED TRUST Page No. 44 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 22. Interest bearing liabilities (continued)

Financing arrangements

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
The Trusts have access to the following lines of credit:
Borrowing facilities
Commercial paper	346,000	453,300	-	-
Commercial mortgage backed securities	684,693	710,883	-	-
Commercial notes	471,309	538,140	-	-
Bank loans	1,818,854	1,794,434	-	-
Medium term notes	456,153	7,025	-	-
	3,777,009	3,503,782	-	-
Bank guarantee facility utilised at balance date	(3,306)	(5,000)	-	-
Used at balance date	(3,360,705)	(3,202,856)	-	-
Unused at balance date	412,998	295,926	-	-
Fair Value	Consolidated 2007		Consolidated 2006
	Carrying	Fair value	Carrying	Fair value
	amount		amount
The carrying amounts and fair values of borrowings at balance date	\$'000	\$'000	\$'000	\$'000
are:
Commercial paper	344,500	344,500	452,449	452,449
Commercial mortgage backed securities	684,693	683,511	710,883	711,550
Commercial notes	471,309	460,740	538,140	514,989
Bank loans	1,404,050	1,389,849	1,494,359	1,473,107
Medium term notes	456,153	451,185	7,025	7,585
	3,360,705	3,329,785	3,202,856	3,159,680

None of the classes of borrowings is readily traded on organised market in standardised form.

The fair value of borrowings is based upon market prices where a market exists or by discounting the expected future cash flows by the currrent interest rates for liabilities with similar risk profiles.

DB RREEF DIVERSIFIED TRUST Page No. 45 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 22. Interest bearing liabilities (continued)

Bank loans

DB RREEF Finance Pty Limited, a wholly-owned subsidiary of DRO, has syndicated bank debt facilities which comprises a \$300.0 million multi-currency revolving credit facility maturing in September 2008, a \$300.0 million multi-currency revolving credit facility maturing in March 2010 and a US\$210 million (\$247.437 million) multi-currency revolving credit facility maturing in September 2010. In addition, DB RREEF Finance Pty Limited has bi-lateral bank debt facilities comprising multi-currency revolving credit facilities of \$360.0 million, US\$120.0 million (\$141.393 million) and \$100.0 million maturing in December 2010, December 2013 and December 2007 respectively. Of the \$100.0 million facility, \$1.496 million and US\$1.536 million (\$1.810 million) is utilised as bank guarantees for developments (refer note 34). These bank debt facilities are supported by the Trusts' guarantee arrangements. These facilities have negative pledge provisions which limit the amount and type of encumbrances that the Trusts' can have over their assets and ensures that all senior unsecured debt ranks pari pasu. DB RREEF Industrial Properties, Inc may borrow under the US\$210.0 million, \$360.0 million, \$100.0 million and US\$120.0 million multi-currency revolving credit facilities.

The current debt facilities will be refinanced as at / or prior to their maturity.

The consolidated accounts of the Trusts include the debt facilities of the US joint venture. The facilities include a total of US\$89.039 million (\$104.913 million) of secured bank debt facilities that amortise through monthly principal and interest payments with a weighted average maturity date of March 2009 and a US\$225.0 million (\$265.111 million) secured interest only bank loan maturing in September 2009. These facilities are secured by mortgages over investment properties of the US joint venture totalling \$331.2 million and \$696.4 million respectively as at 30 June 2007.

Commercial notes - USA Private Placement

DB RREEF Finance Pty Limited has on issue US\$200.0 million (\$235.655 million) of notes which were privately placed with investors on terms to maturity ranging from December 2011 to March 2017.

DB RREEF Industrial Properties, Inc has on issue US\$200.0 million (\$235.654 million) of notes which were privately placed with investors on terms to maturity ranging from February 2011 to February 2016.

These notes are supported by the Trusts' guarantee arrangements. These notes have negative pledge provisions which limit the amount and type of encumbrances that the Trusts can have over their assets and ensures that all senior unsecured debt ranks pari pasu.

Commercial paper and commercial mortgage backed securities

DOT has liabilities resulting from the issuance of \$344.5 million (facility limit of \$346.0 million) asset backed commercial paper ("CP") and \$500.0 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 8 investment properties of DOT with a total value of \$2,437.5 million as at 30 June 2007.

The US joint venture has liabilities resulting from a US\$156.8 million (\$184.693 million) CMBS issue, maturing in September 2008 (inclusive of a one year extension option beginning September 2007). This is secured by investment properties of the US joint venture totalling \$549.8 million as at 30 June 2007.

Medium term notes

The US joint venture has liabilities resulting from US\$5.222 million (\$6.153 million) unsecured medium term notes maturing in September 2010.

On 4 August 2006, DB RREEF Finance Pty Limited issued \$250.0 million of unsecured medium term notes, maturing in February 2010. On 8 February 2007, DB RREEF Finance Pty Limited issued a further \$200.0 million of unsecured medium term notes, maturing in February 2011. These notes are supported by the Trusts' guarantee arrangements. These notes have negative pledge provisions which limit the amount and type of encumbrances that the Trusts' can have over their assets and ensures that all senior unsecured debt ranks pari pasu.

Preferred shares

DB RREEF Industrial Properties, Inc has issued US\$92,550 (\$109,049) of preferred shares as part of the requirement to be classified as a Real Estate Investment Trust ("REIT") under US tax legislation. These preferred shares will remain on issue until such time that the Board decides that it is no longer in the company's interest to qualify as a REIT.

DB RREEF DIVERSIFIED TRUST Page No. 46 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 23. Current liabilities - provisions

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Provision for distribution
Opening balance as at 1 July 2006	155,523	144,800	54,178	67,756
Additional provisions	324,638	306,259	131,505	106,689
Payments and reinvestment of distributions	(315,169)	(295,536)	(117,213)	(120,267)
Closing balance as at 30 June 2007	164,992	155,523	68,470	54,178

Provision for distribution

Provision is made for distributions to be paid for the period ending 30 June 2007 payable on 29 August 2007.

Note 24. Current liabilities - other

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Tenant bonds	13	20	-	-
Other borrowing costs	3,137	5,432	-	-
Total current liabilities - other	3,150	5,452	-	-

Note 25. Non-current liabilities - deferred tax liabilities

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
The balance comprises temporary differences attributable to:
Amounts recognised in profit or loss
Investment property	73,360	48,652	-	-
Other	449	74	-	-
Total non-current liabilities - deferred tax liabilities	73,809	48,726	-	-
Movements
Opening balance at 1 July 2006	48,726	23,685	-	-
Credited/(charged) to income tax benefit/(expense)	378	26	-	-
Credited/(charged) to withholding tax expense	24,705	25,015	-	-
Closing balance at 30 June 2007	73,809	48,726	-	-

Note 26. Non-current liabilities - financial liabilities with minority interest

DB RREEF Industrial Properties,Inc. ("US REIT") owns 80% of DB RREEF Industrial, LLC, a joint venture with Calwest Industrial Properties, LLC ("Calwest"), the 20% owner. The joint venture agreement entitles Calwest to receive 40% of certain cashflows arising from the joint venture, rather than the 20% that it would be entitled to in terms of its ownership interest, up until 30 June 2014, after which time the rights to the casfhlows revert to the ownership percentages. This additional entitlement is known as the "special interest" or "Calwest promote".

The joint venture agreement entitles US REIT to purchase the special interest from Calwest at any time up until 30 June 2014 at an agreed predetermined price (which increases over time) ("the agreed price"). Calwest has a right to sell the special interest to the US REIT, from 1 July 2009 to 30 June 2014, at a price not exceeding the agreed price.

The agreed price at 30 June 2007 was \$28,305,000 (2006: \$29,105,000), which is the value recognised in the financial statements.

Note 27. Non-current liabilities - other

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Tenant bonds	7,975	7,982	1,210	1,084
Other borrowing costs	2,541	5,634	-	-
Other	22	22	-	-
Total non-current liabilities - other	10,538	13,638	1,210	1,084

DB RREEF DIVERSIFIED TRUST Page No. 47 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 28. Contributed equity
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
(a) Contributed equity of equity holders of the parent entity
Opening balance as at 1 July 2006	1,094,144	1,059,867	1,094,144	1,059,866
Distributions reinvested	57,382	34,284	57,382	34,284
Cost of distributions reinvested	-	(7)	-	(6)
Closing balance as at 30 June 2007	1,151,526	1,094,144	1,151,526	1,094,144
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000

(b) Contributed equity of equity holders of other entities stapled

to DDF (minority interest)
Opening balance as at 1 July 2006	2,094,887	2,034,388	-	-
Distributions reinvested	87,946	60,509	-	-
Cost of distributions reinvested	-	(10)	-	-
Closing balance as at 30 June 2007	2,182,833	2,094,887	-	-
	Consolidated			Parent Entity
	2007	2006	2007	2006
	No. of	No. of	No. of	No. of
	securities	securities	units	units
(c) Number of securities on issue
Opening balance as at 1 July 2006	2,802,209,393	2,732,082,389	2,802,209,393	2,732,082,389
Distributions reinvested	92,390,613	70,127,004	92,390,613	70,127,004
Closing balance as at 30 June 2007	2,894,600,006	2,802,209,393	2,894,600,006	2,802,209,393

Terms and conditions

Each stapled security ranks equally with all other stapled securities for the purposes of distributions and on termination of the Trust. Each stapled security entitles the holder 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.

On 29 August 2006, 48,611,675 units were issued at a unit price of \$1.4746 in relation to the June 2006 distribution period. On 28 February 2007, 43,778,938 units were issued at a unit price of \$1.6822 in relation to the December 2006 distribution period.

DB RREEF DIVERSIFIED TRUST Page No. 48 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 29. Reserves and undistributed income
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
(a) Reserves
Foreign currency translation reserve	2,129	178	-	-
Total reserves	2,129	178	-	-
Movements:	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Foreign currency translation reserve
Opening balance as at 1 July 2006	178	(1,123)	-	-
Exchange difference arising from the translation of the financial
statements of foreign operations	1,951	1,301	-	-
Total movement in foreign currency translation reserve	1,951	1,301	-	-
Closing balance as at 30 June 2007	2,129	178	-	-

(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

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Undistributed income as at 1 July 2006	1,098,453	407,222	525,810	229,115
Net profit attributable to security holders	1,168,819	1,010,342	443,857	401,219
Transfer of capital reserve of minority interest	(12,352)	(16,014)	-	-
Distributions provided for or paid	(324,638)	(306,259)	(131,505)	(106,689)
Adjustment on adoption of AASB 132 and 139	-	3,162	-	2,165
Undistributed income as at 30 June 2007	1,930,282	1,098,453	838,162	525,810

DB RREEF DIVERSIFIED TRUST Page No. 49 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 30. Other minority interests
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Interest in
Contributed equity	348,062	343,932	-	-
Reserves	(1,119)	15,616	-	-
Undistributed income	91,230	68,303	-	-
Total other minority interests	438,173	427,851	-	-

Note 31. Distributions paid and payable

	Consolidated	Parent Entity
	2007	2006	2007	2006
(a) Distribution to security holders	\$'000	\$'000	\$'000	\$'000
31 December (paid 28 February 2007)	159,646	150,736	63,035	52,511
30 June (payable 29 August 2007)	164,992	155,523	68,470	54,178
Total distributions	324,638	306,259	131,505	106,689
(b) Distribution to other minority interests
DB RREEF Industrial Holdings, LLC (paid)	3,599	7,178	-	-
DB RREEF RENTS Trust (paid 17 October 2006)	3,737	4,223	-	-
DB RREEF RENTS Trust (paid 17 January 2007)	3,856	3,566	-	-
DB RREEF RENTS Trust (paid 18 April 2007)	3,876	3,488	-	-
DB RREEF RENTS Trust (payable 16 July 2007)	3,977	3,509	-	-
	19,045	21,964	-	-
Total distributions	343,683	328,223	131,505	106,689
(c) Distribution rate	Consolidated			Parent Entity
	2007	2006	2007	2006
	Cents per	Cents per	Cents per	Cents per
	security	security	unit	unit
31 December (paid 28 February 2007)	5.60	5.45	2.21	1.93
30 June (payable 29 August 2007)	5.70	5.55	2.37	1.96
Total distributions	11.30	11.00	4.58	3.89

(d) Franked dividends

The franked portions of the final dividends recommended after 30 June 2007 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 2007.

Franking credits	Consolidated		Parent Entity
	2007 \$'000	2006 \$'000	2007 \$'000	2006 \$'000
Opening balance as at 1 July 2006	744	-	-	-
Franking credits arising during the year on payment of tax at 30%	3,261	1,564	-	-
Franking debits arising from payment of interim dividend	(493)	(820)	-	-
Closing balance as at 30 June 2007	3,512	744	-	-

DB RREEF DIVERSIFIED TRUST Page No. 50 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 32. Financial risk management

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) 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. - 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 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 Trust's exposure to credit risk on its financial assets is the carrying amount of its financial assets, as recognised in the Balance Sheet.

(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 Trusts functional currency will have an adverse affect on DRT.

The Trusts operate internationally with investments in the United States, New Zealand, France and Germany and are exposed to foreign exchange risk arising from currency exposures in US dollars, NZ dollars, and Euro.

Exposure to foreign exchange risk is minimised by the way the Trust manages its borrowing arrangements. The Trust matches the currency of its investment with the currency of its debt where practical. Residual foreign exchange risk is managed by the use of forward foreign exchange contracts.

(ii) Fair value interest rate risk

Fair value interest rate risk is the risk of an adverse change in the net fair (or market) value of an asset or liability due to movements in interet rates. 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 is approximated by the carrying value of that asset or liability, as recognised in the Balance Sheet.

(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

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.

Generally, fair value risk on borrowings issued at fixed rates is mitigated by entering into swaps for equivalent notional amounts and maturity dates that convert the fixed interest rate obligation on the borrowing into a variable rate obligation (i.e. fair value risk is converted to cash flow risk).

Cash flow interest rate risk on borrowings is managed by the use of interest rate swaps. Under the terms of these 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 principal amounts.

Fixed debt and swaps currently in place cover approximately 97% (2006: 95%) of the loan principal outstanding, with a further \$2.3 billion (2006: \$2.7 billion) in 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 liabilities) is set out in the table below:

Note 32. Financial risk management (continued)
Consolidated 30 June 2007		Floating	1 year	Fixed interest maturing in: Over 1 and	Over 2 and	Over 3 and	Over 4 and	More than	Total
		interest rate	or less	less than 2 years	less than 3 years	less than 4 years	less than 5 years	5 years
	Notes	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Financial assets Cash and cash equivalents Loans and receivables	8 13	59,603 -	- -	- -	- -	- -	- -	- 51,936	59,603 51,936
Total		59,603	-	-	-	-	-	51,936	111,539
Weighted average interest rate		6.21%	-	-	-	-	-	11.00%
Financial liabilities
Interest bearing liabilities	22	1,925,893	12,828	244,786	515,803	329,448	65,251	266,805	3,360,814
Interest rate swaps1		(1,826,934)	280,000	326,290	216,412	108,432	225,156	670,644	-
Forward start interest rate swaps1		-	(212,479)	(362,173)	(457,170)	(294,068)	(170,696)	(809,136)	(2,305,722)
Forward start interest rate swaps maturities1		-	-	80,000	-	11,086	-	2,214,636	2,305,722
Total		98,959	80,349	288,903	275,045	154,898	119,711	2,342,949	3,360,814
Weighted average interest rate (including swaps)		5.75%	5.58%	5.54%	5.75%	5.84%	5.89%	5.90%
Net financial (liabilities)/assets		(39,356)	(80,349)	(288,903)	(275,045)	(154,898)	(119,711)	(2,291,013)	(3,249,275)
Consolidated 30 June 2006				Fixed interest maturing in:
		Floating	1 year	Over 1 and	Over 2 and	Over 3 and	Over 4 and	More than	Total
		interest	or less	less than	less than	less than	less than	5 years
		rate		2 years	3 years	4 years	5 years
		\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Financial assets
Cash and cash equivalents	8	106,428	-	-	-	-	-	-	106,428
Loans and receivables	13	-	-	-	-	-	-	45,092	45,092
Total		106,428	-	-	-	-	-	45,092	151,520
Weighted average interest rate		6.25%	-	-	-	-	-	11.00%
Financial liabilities
Interest bearing liabilities	22	2,070,961	14,582	21,712	263,290	302,704	146,942	382,790	3,202,981
Interest rate swaps1		(1,919,769)	668,349	180,000	214,572	515,533	290,205	51,110	-
Forward start interest rate swaps1		-	(707,257)	(130,000)	(445,465)	(468,182)	(309,029)	(642,884)	(2,702,817)
Forward start interest rate swaps maturities1		-	-	-	183,814	-	45,533	2,473,470	2,702,817
Total		151,192	(24,326)	71,712	216,211	350,055	173,651	2,264,486	3,202,981
Weighted average interest rate (including swaps)		5.75%	5.66%	5.66%	5.63%	5.85%	5.96%	6.03%

Net financial (liabilities)/assets (44,764) 24,326 (71,712) (216,211) (350,055) (173,651) (2,219,394) (3,051,461)

1 notional principal amounts

(e) Foreign exchange rate risk exposures

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

Weighted average exchange rate 30 June 2007	Contracts to sell US\$ at an agreed exchange rate:
	1 year or less	Over 1 and less than 2 years	More than 2 years
To pay US\$ million To receive A\$ million	12.8 18.4	13.6 19.5	19.6 27.3
Weighted average exchange rate	0.6957	0.6971	0.7170
Weighted average exchange rate 30 June 2007	Contracts to sell Euro at an agreed exchange rate:
	1 year or less	Over 1 and less than 2 years	More than 2 years
To pay € million To receive A\$ million	2.7 4.8	1.7 3.1	2.6 4.8
Weighted average exchange rate	0.5702	0.5560	0.5370
Weighted average exchange rate 30 June 2007	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 To receive A\$ million	7.9 6.9	- -	- -
Weighted average exchange rate	1.1417	-	-
Weighted average exchange rate 30 June 2006	Contracts to sell US\$ at an agreed exchange rate:
	1 year or less	Over 1 and less than 2 years	More than 2 years
To pay US\$ million To receive A\$ million	17 24	15 22	26 36
Weighted average exchange rate	0.7086	0.7015	0.7041
Weighted average exchange rate 30 June 2006	Contracts to sell Euro at an agreed exchange rate:
	1 year or less	Over 1 and less than 2 years	More than 2 years
To pay € million To receive A\$ million	18 30	1 2	2 5
Weighted average exchange rate	0.5839	0.5626	0.5402
Weighted average exchange rate 30 June 2006	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 To receive A\$ million	- -	- -	- -
Weighted average exchange rate	-	-	-

Note 33. Contingent liabilities

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

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Bank guarantees by the Trusts in respect of variations and other
financial risks associated with the development of:
240 St Georges Terrace, Perth, WA	-	200	-	-
Coles Myer development at Boundary Road, Laverton, VIC	1,000	5,000	-	-
60 Miller Street, North Sydney, NSW	496	-	-	-
Dulles Town Crossing, Virginia	1,810	-	-	-
Total contingent liabilities	3,306	5,200	-	-

The Trusts are also guarantors of a A\$600 million and US\$210 million syndicated bank debt facility and a total of A\$460 million and US\$120 million of bank bi-lateral facilities, a total of \$450 million of medium term notes and a total of US\$400 million of privately placed notes, which have all been negotiated to finance the Trusts. The guarantees have been given in support of debt outstanding and drawn against these facilities.

The guarantees are issued in respect of the Trusts 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 Trusts, 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 34. Commitments

(a) Capital commitments

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

Capital expenditure commitments in relation to	Consolidated	Parent Entity
development works:	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Not longer than one year
Axxess Corporate Park, Mount Waverley, VIC	-	7,900	-	7,900
Plenty Valley Town Centre, 330-464 McDonald's Road, South
Morang, VIC	81,576	35,000	81,576	35,000
North Lakes Shopping Centre, Mango Hill, QLD	48,398	50,000	48,398	50,000
Boundary Road, Laverton North VIC	3,547	55,820	-	-
Pound Road West, Dandenong, VIC	8,539	1,957	-	-
114 Fairbank Road, Clayton, VIC	3,170	-	-	-
21 rue du Chemin Blanc, Champlan	339	-	-	-
32 avenue de L'Oceanie, Villejust	157	-	-	-
1 Margaret Street, Sydney, NSW	-	264	-	-
201 Elizabeth Street, Sydney NSW	215	-	-	-
Governor Phillip Tower & Governor Macquarie Tower Office
Complex 1 Farrer Place, Sydney, NSW	2,446	14,534	-	-
309-321 Kent Street, Sydney, NSW	2,323	5,254	-	-
Australia Square, 264 George St, Sydney, NSW	3,115	2,248	-	-
Southgate Complex, 3 Southgate Avenue, Southgate, VIC	20	100	-	-
Williams Drive , Atlanta	124	398	-	-
West Nursery Rd, Baltimore	-	235	-	-
Commerce Park, Charlotte	233	-	-	-
Regency Crest Drive, Dallas	474	-	-	-
NE Baltimore	6	215	-	-
Kenwood Rd, Cincinnati	42	124	-	-
East Collins Blvd, Dallas	-	180	-	-
10th Street, Dallas	-	530	-	-
Mechanicsburg, Harrisburg	149	471	-	-
Glendale, Los Angeles	340	124	-	-
Memphis Industrial, Memphis	13	221	-	-
South Priest Drive, Pheonix	-	410	-	-
Kent West , Seattle	571	573	-	-
Airport Exchange Blvd, Cincinnati	390	-	-	-
E Plano/Shiloh, Dallas	219	-	-	-
Capital Ave, Dallas	231	-	-	-
Mounds View, Minneapolis	229	-	-	-
Trenton Lane, Minneapolis	906	-	-	-
Braemar Ridge, Minneapolis	277	-	-	-
Eagandale Business Campus, Minneapolis	2,355	-	-	-
West Alameda Drive, Phoenix	196	-	-	-
44th Ave, Phoenix	274	-	-	-
Westinghouse Blvd, Charlotte	471	-	-	-
	161,345	176,558	129,974	92,900

DB RREEF DIVERSIFIED TRUST Page No. 55 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 34. Commitments (continued)
	Consolidated		Parent Entity
Later than one year but not later than five years	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Plenty Valley Town Centre, 330-464 McDonald's Road, South
Morang, VIC	-	40,000	-	40,000
North Lakes Shopping Centre, Mango Hill, QLD	-	25,000	-	25,000
Governor Phillip Tower & Governor Macquarie Tower Office
Complex 1 Farrer Place, Sydney, NSW	11,037	-	-	-
Australia Square, 264 George St, Sydney, NSW	176	-	-	-
North Lake Drive, Dallas	118	-	-	-
10th Street, Dallas	295	-	-	-
Eq/West/Div, Columbus	353	-	-	-
	11,979	65,000	-	65,000
Later than five years
Australia Square, 264 George St, Sydney, NSW	836	-	-	-
	836	-	-	-
Total capital commitments	174,160	241,558	129,974	157,900
(b) Lease payable commitments	Consolidated		Parent Entity
Commitments in relation to leases contracted for at the	2007	2006	2007	2006
reporting date but not recognised as liabilities, payable:	\$'000	\$'000	\$'000	\$'000
Within one year	290	290	290	290
Later than one year but not later than five years	1,162	1,162	1,162	1,162
Later than five years	7,260	7,550	7,260	7,550
Total lease payable commitments	8,712	9,002	8,712	9,002

Payments made under operating leases are expensed on a straight line basis over the term of the lease, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.

The Trust has a commitment for ground rent payable in respect of a leasehold property included in property investments. An amount of \$290,356 was paid in respect of the year ended 30 June 2007 (2006: \$290,356). This commitment was reviewed in 2003 and annual lease payments were increased by a CPI factor as per the lease agreement. This commitment is next subject for review in 2012 and expires in 2037.

No provisions have been recognised in respect of non-cancellable operating leases.

(c) Lease receivable commitments	Consolidated	Parent Entity
The future minimum lease payments receivable by the	2007	2006	2007	2006
Trusts are:	\$'000	\$'000	\$'000	\$'000
Within one year	572,632	541,745	173,502	147,352
Later than one year but not later than five years	1,677,318	1,531,569	549,873	423,153
Later than five years	1,018,754	967,674	435,658	273,761
Total lease receivable commitments	3,268,704	3,040,988	1,159,033	844,266

Note 35. Related parties

Responsible Entity

DB RREEF Funds Management Limited is the responsible entity of the Trusts.

Responsible Entity fees

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

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

Related party transactions

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

Unitholdings

At 30 June 2007 Deutsche Bank AG and its related parties, schemes and portfolios managed by Deutsche Bank AG and its related parties hold 57,302,807 stapled securities (2006: 48,480,053) in DRT.

Investments

DB RREEF Funds Management Limited, the Responsible Entity, is a wholly owned subsidiary of DRH. DRH is 50% owned by DRO and 50% owned by First Australian Property Group Holdings Limtied, a subsidiary of Deutsche Bank Group. The Trust is the parent entity and deemed acquirer of DRO.

DB RREEF Funds Management Limited

DB RREEF Funds Management is the Responsible Entity of the Trust. There were a number of transactions and balances between the Trust and Responsible Entity and related entities as detailed below:

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Responsible Entity fees paid and payable	33,147	28,695	11,961	10,534
Aggregate amounts payable to the Responsible Entity at reporting date	3,375	2,692	1,342	1,093
DB RREEF Holdings Pty Limited
Loan note interest earned from DB RREEF Holdings Pty Limited	5,461	4,960	-	-
Loan notes receivable at reporting date	51,936	45,092	-	-
Property management fees paid and payable to DB RREEF
Holdings Pty Limited	9,273	6,260	728	-
Recovery of administration expenses paid to DB RREEF Holdings
Pty Limited	8,511	8,589	2,516	1,742

Note 35. Related parties (continued)

RREEF

RREEF (a subsidiary of Deustche Bank AG), as fund manager of the DB RREEF Industrial Properties, Inc. is entitled to the following fees:

	Consolidated		Parent Entity
	2007 2006		2007	2006
	\$'000	\$'000	\$'000	\$'000
Investment management fee paid and payable	1,561	1,053	-	-
Asset management fee paid and payable	344	303	-	-
Acquisition fee paid and payable	3,549	555	-	-
Property management fees paid and payable	4,901	4,758	-	-
Construction supervision fee paid and payable	792	1,150	-	-
Development fees	918	172	-	-
Leasing commissions	2,841	3,708	-	-
Performance fees	(10)	211	-	-

Deutsche Bank AG

Dealings with the bank include, not only transactions in its capacity as part owner of the Responsible Entity, but also in the provision of financial services. There were a number of transactions and balances between the Trust and the Responsible Entity and related entities as detailed below:

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
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	14,826	13,334	(295)	(467)
Interest and financing fees paid and payable on borrowings to
Deutsche Bank AG	601	585	-	-
Borrowings from Deutsche Bank AG	13,034	10,103	-	-
Proceeds from Borrowings from Deutsche Bank AG	14,688	-	-	-
Loan repayment to Deutsche Bank AG	11,757	5,251	-	-
Interest (received)/paid and (receivable)/payable on swaps for whom
the counterparty was Deutsche Bank AG	16,890	(12,834)	-	1
Other transactions with Deustche Bank AG:
Costs associated with the Transaction	-	480	-	160
Interest paid and payable to FAP	234	566	-	-

DB RREEF DIVERSIFIED TRUST Page No. 58 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 35. Related parties (continued)

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

• C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1,4,5 E A Alexander AM, BComm, FCA, FAICD, FCPA 1,2,3 B R Brownjohn BComm 1,2,5 S F Ewen OAM, FILE 1,4 A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner) 4 V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD 5 C B Leitner III BA B E Scullin BEc 2,3,4
• 1 Independent Director
• 2 Audit Committee Member
• 3 Risk and Compliance Committee Member
• 4 Nomination and Remuneration Committee Member
• ⁵ Treasury Policy Committee Member

No directors held an interest in the Trust as at 30 June 2007 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 2007
Tanya L Cox	Chief Operating Officer
John C Easy	General Counsel
Ben J Lehmann	DB RREEF Trust Fund Manager
Peter Roberts	Chief Financial Officer	Qualified until 8 June 2007
Paul G Say	Head of Corporate Development	Qualified from 19 March 2007
Mark F Turner	Head of Unlisted Funds

No key management personnel or their related parties held an interest in the Trust for the years ended 30 June 2006 and 30 June 2007 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 2006 and 30 June 2007 or at the date of this report.

	2007	2006
Compensation
Short-term employee benefits	4,753,130	4,434,850
Post-employment benefits	998,514	418,594
Other long term benefits	1,265,000	650,000
	7,016,644	5,503,444

The Trust has taken advantage of the relief provided by ASIC Class Order 06/50 and has transferred the detailed remuneration disclosures to the Directors' Report. The relevant information can be found in section 3 of the Directors Report on pages 2 to 9.

DIT France Logistique SAS

On 13 July 2007, DIT France Logistique SAS, a wholly owned subsidiary of DB RREEF Industrial Trust has been acceded as borrower under the syndicated bank debt facility. The existing EUR 37 million borrowing of DB RREEF Finance Pty Limited under this syndicated bank debt facility was transferred to DIT France Logistique SAS on 31 July 2007.

Sale of Lot 3, Boundary Road, North Laverton, Victoria

On 23 July 2007 DB RREEF Industrial Trust exchanged contracts to sell 50% of Lot 3, Boundary Road, North Laverton (the Coles Group Limited chilled distribution centre) for \$58 million. Settlement is conditional upon the registration of plan of subdivision.

The Titan Industrial Portfolio

In July 2007, DB RREEF Industrial Properties, Inc. ("US REIT") entered into a contract to acquire and develop certain real property commonly known as The Titan Industrial Portfolio ("Titan Portfolio") located in the City of San Antonio, Texas. The Portfolio consists of 1,047,000 square feet of existing assets and 95 acres of land for development of approximately 1,550,000 square feet. The estimated purchase price of the existing assets is \$58,050,000 and the estimated cost to develop the land is \$95,500,000 including the cost of the land. The acquisition of two existing buildings, Interchange Park 8151 and Interchange Park 8161 closed on July 3, 2007, as the first acquisition in the Titan Portfolio. The purchase price of these buildings was \$16,188,730.

The development component will be structured in two phases as a joint venture, 96.5% owned by DB RREEF and 3.5% owned by Santa Barbara Development Services ("SBDS"). It will include an initial phase of approximately 660,000 square feet to be developed immediately. The total estimated cost for Phase I is \$44,200,000. The contract includes an eight month option from the initial closing date to purchase the Phase II land, contingent upon achieving a return on cost equal to or above the pro-forma, with mutually agreed upon market rents and developer cost guarantees. It is anticipated that the Phase II option will be exercised and development commences shortly thereafter. The Phase II development consists of approximately 890,000 square feet at an estimated cost of \$51,300,000.

Retail portfolio sale to DWPF

DRFM as Responsible Entity of DRT has entered into a conditional contract with DB RREEF Wholesale Property Limited ("DWPL") as Responsible Entity of DB RREEF Wholesale Property Fund to sell its 50% interest in five shopping centres for an estimated consideration of \$927.75 million ("Retail Transaction").

Completion of the Retail Transaction is conditional on:

• DWPF obtaining FIRB approval; and
• DWPF raising equity capital to its satisfaction.

Since 30 June 2007, 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 Trust, the results of those operations, or state of the Trust's affairs.

DB RREEF DIVERSIFIED TRUST Page No. 60 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 37. Segment information

Business segments

The Trusts operate in the following segments:

Retail - investment in the retail property sector

Commercial and car park - investment in the commercial and car park property sectors

Industrial - investment in the industrial property sector

2007	Retail	Commercial & Car Park	Industrial	Eliminations/ Unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue	66,079	318,122	309,229	-	693,430
Interest revenue	264	1,159	2,094	4,589	8,106
Share of net profits of associates accounted for using the equity method	40,656	5,717	-	6,342	52,715
	106,999	324,998	311,323	10,931	754,251
Proceeds from sale of inventory	-	-	3,959	-	3,959
Net gain/(loss) on sale of investment properties	-	(105)	3,460	-	3,355
Net fair value gain of investment properties	184,424	448,406	198,500	-	831,330
Net fair value gain of derivatives	-	-	-	52,458	52,458
Net foreign exchange gain/(loss)	-	(166)	1,515	-	1,349
Other income	-	1,508	-	164	1,672
Total segment income	291,423	774,641	518,757	63,553	1,648,374
Segment result	309,610	625,653	284,482	(50,926)	1,168,819
Segment assets	1,229,217	4,104,675	3,931,680	221,265	9,486,836
Segment liabilities	4,006	938,666	2,273,561	565,660	3,781,893
Investments accounted for using the equity
method	211,517	40,750	-	17,888	270,155
Acquisition of investment properties	-	-	396,178	-	396,178
Additions to property plant and equipment	-	31,495	148,754	-	180,249
Amortisation expense	2,174	24,585	10,902	-	37,661
Other non-cash expenses	-	2,488	-	-	2,488

DB RREEF DIVERSIFIED TRUST Page No. 61 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 37. Segment information (continued)

2006	Retail \$'000	Commercial & Car Park \$'000	Industrial \$'000	Eliminations/ Unallocated \$'000	Consolidated \$'000
Property revenue Interest revenue Share of net profits of associates accounted for	64,441 257	304,249 837	294,652 1,462	154 5,597	663,496 8,153
using the equity method	19,632 84,330	2,434 307,520	- 296,114	4,845 10,596	26,911 698,560
Net gain on sale of investment properties Net fair value gain of investment properties Net fair value gain of derivatives Net foreign exchange gain Other income	- 76,901 - - -	131 307,526 - 117 329	1,359 302,063 - 2,786 -	- - 73,271 - 190	1,490 686,490 73,271 2,903 519
Total segment income	161,231	615,623	602,322	84,057	1,463,233
Segment result	140,857	469,881	338,973	60,631	1,010,342
Segment assets Segment liabilities Investments accounted for using the equity method Acquisition of investment properties Additions to property plant and equipment Amortisation expense Impairment of goodwill Other non-cash expenses	932,720 19,161 182,500 - - 2,157 - -	3,678,670 1,054,880 36,801 102,599 57,495 18,712 - 1,023	3,520,817 1,385,629 - 53,194 89,083 5,200 3,287 -	155,331 1,112,355 15,761 - - - - -	8,287,538 3,572,025 235,062 155,793 146,578 26,069 3,287 1,023

Geographical segments

The Trusts' investments are located in Australia, New Zealand, the United States of America, France and Germany.

2007 Australia		New Zealand United States of America	France	Germany	Consolidated
\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Rental and other property income 515,435 Segment assets 7,692,110 Acquisitions of investment properties Additions to property plant and equipment 148,632	10,041 133,617 - - -	150,173 1,303,064 29,867 31,617	9,583 112,441 118,856 -	8,198 245,604 247,455 -	693,430 9,486,836 396,178 180,249
2006 Australia	New Zealand	United States of America	France	Germany	Consolidated
\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Rental and other property income 498,281 Segment assets 6,292,518 Acquisitions of investment properties Additions to property plant and equipment 109,932	8,595 102,125 - 102,599	156,620 1,892,895 53,194 36,646	- - - -	- - - -	663,496 8,287,538 155,793 146,578

DB RREEF DIVERSIFIED TRUST Page No. 62 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 38. Reconciliation of net profit / (loss) to net cash inflow from operating activities

	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Net profit	1,210,791	1,066,385	443,857	401,219
Capitalised interest	(14,639)	(10,488)	(3,746)	(5,627)
Depreciation	2,488	1,023	-	-
Net increment on revaluation of investments	(831,330)	(686,490)	(307,406)	(285,490)
Share of net profits of associates accounted for using the equity
method	(17,549)	(5,036)	-	-
Net fair value gain of derivatives	(50,873)	(73,271)	(8,260)	(15,349)
Net gain on sale of investment properties	(3,809)	(1,487)	(15)	(109)
Profit on sale of inventories	(481)	-	-	-
Net foreign exchange (gain)/loss	(1,027)	10,772	(32,301)	3,508
Provision for doubtful debts	640	635	408	(11)
Impairment of goodwill	-	3,287	-	-
Change in operating assets and liabilities
(Increase)/decrease in receivables	(120,872)	(1,412)	2,203	(13,205)
(Increase)/decrease in prepaid expenses	(1,853)	368	(1,212)	845
Decrease in other non-current assets - investments	41,229	1,209	21,867	26,828
Decrease in other current assets	113	3,098	-
Decrease/(increase) in other non-current assets	30,115	(2,384)	(53)	1,776
Increase/(decrease) in payables	768	6,267	(4,748)	2,317
Decrease/(increase) in other current liabilities	351	(655)	-	(1,880)
Increase in other non-current liabilties	43,620	16,204	24,647	7,622
Increase in deferred tax liabilities	32,053	-	-	-
Net cash inflow from operating activities	319,735	328,025	135,241	122,444
Note 39. Non-cash financing and investing activities
	Consolidated		Parent Entity

		Consolidated			Parent Entity
	Note	2007	2006	2007	2006
		\$'000	\$'000	\$'000	\$'000
Distributions reinvested	28	145,328	94,793	57,382	34,284

DB RREEF DIVERSIFIED TRUST Page No. 63 of 66 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2007

Note 40. Earnings per unit
	Consolidated	Parent Entity
	2007	2006	2007	2006
	cents	cents	cents	cents
(a) Basic earnings per unit on profit attributable to equity
holders of the parent entity	15.62	14.39	15.53	14.47
	Consolidated		Parent Entity
	2007	2006	2007	2006
	cents	cents	cents	cents
(b) Diluted earnings per unit on profit attributable to equity
holders of the parent entity	15.62	14.39	15.53	14.47
(c) Basic earnings per unit on profit attributable to stapled security holders
	Consolidated
	30 June 2007	30 June 2006
	cents	cents
	40.90	36.44
(d) Diluted earnings per unit on profit attributable to stapled security holders
	Consolidated
	30 June 2007	30 June 2006
	cents	cents
	40.90	36.44
(e) Reconciliation of earnings used in calculating earnings per unit
	Consolidated		Parent Entity
	2007	2006	2007	2006
	\$'000	\$'000	\$'000	\$'000
Net profit	1,210,791	1,066,385	443,857	401,219
Net profit attributable to equity holders of other entities stapled to
DDF (minority interests)	(722,441)	(611,417)	-	-
Net profit attributable to other minority interests	(41,972)	(56,043)	-	-
Net profit attributable to the unitholders of the Trust in
calculating basic and diluted earnings per unit	446,378	398,925	443,857	401,219

(f) Weighted average number of units used as a denominator

Weighted average number of units outstanding used in the calculation of basic and diluted earnings per unit 2,857,716,193 2,772,613,360 2,857,716,193 2,772,613,360

DB RREEF Trust (ASX:DRT)

TOP 20 INVESTORS REPORT as at 31 July 2007

Rank	Investor	Balance	Issued Capital%
1	HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	547,885,550	18.93%
2	J P MORGAN NOMINEES AUSTRALIA LIMITED	451,674,120	15.60%
3	NATIONAL NOMINEES LIMITED	395,908,903	13.68%
4	ANZ NOMINEES LIMITED (CASH INCOME A/C)	255,978,638	8.84%
5	CITICORP NOMINEES PTY LIMITED	192,524,769	6.65%
6	RBC DEXIA INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED (APN A/C)	151,831,426	5.25%
7	COGENT NOMINEES PTY LIMITED	47,511,516	1.64%
8	AMP LIFE LIMITED	44,865,096	1.55%
9	CITICORP NOMINEES PTY LIMITED (CFS WSLE PROPERTY SECS A/C)	43,693,962	1.51%
10	ANZ NOMINEES LIMITED (INCOME REINVEST PLAN A/C)	43,208,769	1.49%
11	QUESTOR FINANCIAL SERVICES LIMITED (TPS RF A/C)	36,581,367	1.26%
12	COGENT NOMINEES PTY LIMITED (SMP ACCOUNTS)	32,495,655	1.12%
13	BOND STREET CUSTODIANS LIMITED (ENH PROPERTY SECURITIES A/C)	19,826,185	0.68%
14	QUEENSLAND INVESTMENT CORPORATION	13,491,064	0.47%
15	CITICORP NOMINEES PTY LTD (CFSIL CFS WS INDX PROP A/C)	13,191,390	0.46%
16	UBS NOMINEES PTY LTD	11,039,291	0.38%
17	BOND STREET CUSTODIANS LIMITED (PROPERTY SECURITIES A/C)	10,982,285	0.38%
18	AUSTRALIAN EXECUTOR TRUSTEES LIMITED (No 1 ACCOUNT)	10,804,430	0.37%
19	SUNCORP CUSTODIAN SERVICES PTY LIMITED	10,268,417	0.35%
20	MLEQ NOMINEES PTY LIMITED (UNPAID1 A/C)	9,986,880	0.35%
	TOTAL FOR TOP 20	2,343,749,713	80.97%
	TOTAL OTHER INVESTORS	550,850,293	19.03%
	GRAND TOTAL	2,894,600,006	100%

Investor Ranges as at 31 July 2007

Ranges	Investors	Securities	% Issued Capital
1 to 1000	1,312	533,375	0.02
1001 to 5000	4,648	15,082,548	0.52
5001 to 10000	6,311	48,122,946	1.66
10001 to 100000	12,068	293,266,827	10.13
100001 and Over	369	2,537,594,310	87.67
Total	24,708	2,894,600,006	100.00

The number of security investors holding less than a marketable parcel of 276 securities (\$1.815 on 31/07/2007) is 563 and they hold 43,526 securities.