DEXUS Property Group, ASX: DXS Annual results for the period ending 30 June 2009

Results for Announcement to the Market

Australian Securities Exchange Limited

DEXUS Funds Management Limited, as responsible entity for DEXUS Property Group (DXS), provides the following documents to the Australian Securities Exchange:

Appendix 4E Statement "Results for announcement to the market"; and
Financial Statements of DEXUS Diversified Trust for the period ending 30 June 2009, including Independent Audit Report from PricewaterhouseCoopers.

For further information, please contact:

CEO, DEXUS Property Group:	Victor Hoog Antink	(02) 9017 1129
Chief Financial Officer:	Craig Mitchell	(02) 9017 1183
Investor Relations:	Karol O'Reilly	(03) 8611 2930
Media Relations:	Emma Parry	(02) 9017 1133

Yours sincerely

Tanya Cox Company Secretary

DEXUS Property Group ARSN 089 324 541

Financial report for the year ended 30 June 2009

DEXUS Diversified Trust
(ARSN 089 324 541)	Note 1	30 Jun 2009	30 Jun 2008	% change
		\$'000	\$'000
Revenue from ordinary activities		775,394	699,725	10.81
Earnings from operating activities1		526,300	498,000	5.68
Net (loss) / profit attributable to security holders after tax and after minority interests		(1,459,111)	438,277	-432.92
Funds from operations2		423,800	355,380	19.25
Distribution to security holders		296,648	355,380	-16.53
		CPU	CPU
Funds from operations per security		10.43	11.90	-12.35
Distributions per security for the period ending
31 December		3.80	5.90	-35.59
30 June		3.50	6.00	-41.67
Total distributions	Note 2	7.30	11.90	-38.66
Basic and diluted earnings 3		(39.38)	13.88
Annualised tax deferred component of distribution4		34.29%	4.72%
		\$'000	\$'000
Total assets		8,351,110	9,348,987	-10.67
Total borrowings		2,509,012	3,006,919	-16.56
Security holders equity		4,939,445	5,629,055	-12.25
Market capitalisation		3,525,631	4,195,227	-15.96
		\$ per unit	\$ per unit
Net tangible assets (excluding minority interests)		1.01	1.77	-42.94
Securities price		0.75	1.38	-45.65
Securities on issue		4,700,841,666	3,040,019,487
Record date – 30 June distribution		30 June 2009	30 June 2008
Payment date - 30 June distribution		28 August 2009	29 August 2008

1 This is represented by net profit attributable to security holders after tax and after minority interest as adjusted for, property revaluations, impairments, finance costs (including unrealised interest rate swaps mark to market losses), corporate costs, tax and minority interests.
2 Funds From Operations (FFO) is often used as a measure of real estate operating performance after finance costs and taxes. It represents AIFRS profit after tax attributable to stapled security holders adjusted for: property revaluations, impairments, derivative and FX mark to market impacts, amortisation of tenant incentives, profit and loss on sale of assets, straight line rent adjustments, deferred tax expense and DEXUS RENTS Trust capital distribution. Included in FFO for the current period is a capital distribution of \$59.3 million made up of \$18.7 million and \$40.6 million in relation to the December 2008 and March 2009 equity raisings respectively.
3 This calculation is based on the consolidated profit of DXS.
4 Excludes CGT Concession of 0.63% (2008: 1.70%).

Distribution Reinvestment Plan (DRP)

DXS operates a DRP and details of the terms and conditions can be obtained from the DXS website at www.dexus.com

The record date for DRP election notices for the distribution period ending 30 June 2009 was 30 June 2009.

Associates and Joint Ventures

No new entities or associates were acquired during the year ended 30 June 2009. For details of associates refer to attached Financial Statements.

Results commentary

DEXUS Property Group's funds from operations for the year have increased 19.3 percent to \$423.8 million. However, after adjusting for \$59.3 million capital distribution in respect of the equity raisings during the period the increase in funds from operations for the year was 2.6 percent. Funds from operations per security for the year have decreased by 12.4 percent to 10.43 cents per security due to the dilutionary impacts of the two equity raisings that occurred in December 2008 and March 2009. Distributions for the year have decreased 38.7 percent to 7.3 cents per security primarily as a result of a reduction in the pay out ratio to 70 percent of funds from operations and the dilutionary impacts of the two equity raisings that occurred during the period. Total assets decreased 10.7 percent over the period to \$8.4 billion at 30 June 2009. Net tangible assets per security decreased 42.9 percent to \$1.01 per security. Gearing (net of cash) has decreased to 31.2 percent as at 30 June 2009.

Specific movements in the Income Statement for the year ended 30 June 2009 were:

Revenue from ordinary activities was \$775 million (2008: \$700 million), up 10.8 percent primarily as a result of:

Asset, property and development management fees resulting from the internalisation and consolidation of the management company from 21 February 2008;
Acquisition of the Whirlpool facilities in Toronto, Canada in December 2007 and Perris, California in January 2008;
Currency impact in respect of international assets; and
An increase in income arising from the underlying domestic property portfolio.

offset by:

Disposal of five retail properties to DEXUS Wholesale Property Fund for \$950 million in October 2007 resulting in lower property revenue; and
Demolition of the Bligh St properties in Sydney and Albert St car park in Brisbane in early 2008 which also resulted in lower property revenue.
A decrease in income arising from the underlying international property portfolio.

Earnings from operating activities were \$526 million (2008: \$498 million) up 5.7 percent primarily as a result of:

Asset, property and development management fees resulting from the internalisation and consolidation of the management company from 21 February 2008;
Acquisition of the Whirlpool facilities in Toronto, Canada in December 2007 and Perris, California in January 2008;
Currency impacts in respect of international assets; and
An increase in income arising from the underlying domestic property portfolio.

offset by:

Disposal of five retail properties to DEXUS Wholesale Property Fund for \$950 million in October 2007 resulting in lower property revenue;
Profits arising from the sale of a 50% interest in the Coles Chilled Distribution Facility at North Laverton in the prior period;
Demolition of the Bligh St properties in Sydney and Albert St car park in Brisbane in early 2008 which also resulted in lower net property income; and
A decrease in income arising from the underlying international property portfolio.

Net loss attributed to security holders after minority interests was \$1,459 million (2008: profit of \$438 million) down 432.9 percent, primarily as a result of non-cash items:

Impact of negative revaluations and impairments (\$1.7 billion) during the period compared to the prior period (positive revaluations of \$184.4 million); and
Net movements in the fair value of derivatives (\$243.7 million) compared to the prior period (\$73.0 million).

offset by:

Tax benefits in the current period of \$120.2 million compared to the prior period tax expense of \$7.9 million. This is primarily due to deferred tax benefits as a result of property revaluations and mark to market losses of derivatives.

Specific movements in the Balance Sheet for the year ended 30 June 2009 were:

Impact of revaluations and impairments (\$1.7 billion) during the period offset by currency impact in respect of international assets (\$448.5 million) and capital expenditure resulted in a decrease in total assets of 10.7 percent to \$8.4 billion (2008: \$9.3 billion).
Total borrowings for the group decreased 16.6 percent to \$2.5 billion (2008: \$3.0 billion) primarily as a result of the use of the equity raising proceeds (\$1.1 billion) to repay debt and a reduction in the payout ratio to 70% of funds from operations offset by currency impact (\$399.5 million) in relation to foreign denominated borrowings together with capital expenditure incurred during the period. Gearing (net of cash) as at 30 June 2009 was 31.2 percent (2008: 33.2 percent).
To ensure that group NTA is not impacted by currency fluctuations, the group has a policy to hedge the balance sheet, whereby currency translation movements in assets and liabilities are offsetting. This is represented by the natural hedge position reflected above. That is, currency related movements in international assets of \$448.5 million, are broadly equivalent to currency movements in foreign denominated borrowings of \$399.5 million and unrealised currency movement in the value of cross currency swaps of \$66.2 million.
Net tangible assets per security were \$1.01 (2008: \$1.77), a decrease of 42.9 percent primarily as a result of revaluations and impairments, movement in fair value of derivatives and the impact of equity raisings and DRP during the period.

Financial Statements

Attached with this Appendix 4E is a copy of the Financial Statements for the year ended 30 June 2009, together with the Independent Auditors Report from PricewaterhouseCoopers. For additional information regarding the results of DEXUS Property Group for the year ended 30 June 2009, refer to the attached ASX Release.

Notes

Note 1: For the purposes of statutory reporting, the stapled entity, known as DXS, must be accounted for as a consolidated group. Accordingly, one of the stapled entities must be the "deemed acquirer" of all other entities in the group. DEXUS Diversified Trust has been chosen as the deemed acquirer of the balance of the DXS stapled entities, comprising DEXUS Industrial Trust, DEXUS Office Trust and DEXUS Operations Trust.

Note 2: The distribution for the period 1 July 2008 to 30 June 2009 is the aggregate of the distributions from DEXUS Diversified Trust, DEXUS Industrial Trust and DEXUS Office Trust. The Annual Tax Statement, issued as at 30 June 2009, will provide details of the components of DXS' distributions.

FINANCIAL STATEMENTS DEXUS DIVERSIFIED TRUST

(ARSN 089 324 541)

ANNUAL FINANCIAL REPORT 30 JUNE 2009

Contents	Page
Directors' Report	1
Auditor's Independence Declaration	22
Income Statements	23
Balance Sheets	24
Statements of Changes in Equity	25
Cash Flow Statements	26
Notes to the Financial Statements	27
Directors' Declaration	95
Independent Auditor's Report	96

DEXUS Property Group (DXS) (ASX Code: DXS), consists of DEXUS Diversified Trust (DDF), DEXUS Industrial Trust (DIT), DEXUS Office Trust (DOT), and DEXUS Operations Trust (DXO), (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 DXS.

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

The Directors of DEXUS Funds Management Limited (DXFM) as Responsible Entity of DEXUS Diversified Trust (the Trust) and its consolidated entities, DEXUS Property Group (DXS), present their Directors' Report together with the consolidated Financial Statements for the year ended 30 June 2009.

The Trust together with DEXUS Industrial Trust, DEXUS Office Trust and DEXUS Operations Trust form the DEXUS Property Group stapled security.

1. Directors and Secretaries

1.1 Directors

The following persons were Directors or Alternate Directors of DXFM at any time during or since the end of the year to the date of this Directors' report, unless otherwise stated:

Directors	Appointed	Resigned
Christopher T Beare	4 August 2004
Elizabeth A Alexander AM	1 January 2005
Barry R Brownjohn	1 January 2005
John C Conde AO	29 April 2009
Stewart F Ewen OAM	4 August 2004
Victor P Hoog Antink	1 October 2004
Charles B Leitner III	10 March 2005	29 April 2009
Brian E Scullin	1 January 2005
Peter St George	29 April 2009
Alternate Director
Andrew J Fay for Charles B Leitner III	30 January 2006	29 April 2009

Particulars of the qualifications, experience and special responsibilities of current 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 DXFM as at 30 June 2009 are as follows:

Tanya L Cox MBA MAICD FCIS (Company Secretary)

Appointed: 1 October 2004

Tanya is the Chief Operating Officer and Company Secretary of DEXUS Property Group and is responsible for the delivery of company secretarial, operational, information technology, communications and administration services, as well as operational risk management systems and practices across the group. Prior to joining DEXUS in July 2003, Tanya 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 for Bank of New Zealand (Australia). Tanya is Chair of the Property Council of Australia National Risk Committee and Australian Athletes With a Disability, and is a director of Music and Opera Singers Trust and the AGSM Alumni Advisory Board. Tanya is a member of the Australian Institute of Company Directors and is a fellow of the Institute of Chartered Secretaries and Administrators (ICSA) and Chartered Secretaries Australia. Tanya has an MBA from the Australian Graduate School of Management and a Diploma in Applied Corporate Governance.

Tanya is Chief Operating Officer and Company Secretary of DXFM, DEXUS Holdings Pty Limited (DXH) and DEXUS Wholesale Property Limited (DWPL) and is a member of the Board Compliance Committee.

1.2 Company Secretaries (continued)

John C Easy B Comm LLB ACIS (Company Secretary)

Appointed: 1 July 2005

John is the General Counsel and joint company secretary of the DEXUS Property Group. During his time with the group he has been involved in the establishment and public listing of the Deutsche Office Trust, the acquisition of the Paladin and AXA property portfolios, and subsequent stapling and creation of the DEXUS Property Group. Prior to joining DEXUS in November 1997, John was employed as a senior associate in the commercial property / funds management practices of law firms Allens Arthur Robinson and Gilbert & Tobin. John graduated from the University of New South Wales with Bachelor of Laws and Bachelor of Commerce (Major in Economics) degrees. He is a member of Chartered Secretaries Australia and holds a Graduate Diploma in Applied Corporate Governance.

John is General Counsel and Company Secretary for DXFM, DXH and DWPL and is a member of the Board 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 helow

The Directors met 18 times during the year. 9 Board meetings were main meetings and 9 meetings were held to consider specific business. While the Board continuously considers strategy, in March 2009 it met with the executive and senior management over two days to consider DXS's strategic plans.

Board Meetings Directors	Main meeting held	Main meetings attended ²	Specific meetings held	Specific meetings attended ²
Christopher T Beare
Elizabeth A Alexander AM
Barry R Brownjohn
John C Conde AO1
Stewart F Ewen OAM
Victor P Hoog Antink
Charles B Leitner III ³
Brian E Scullin
Peter St George'

¹ Appointed 29 April 2009.

a indicates where a Director attended either personally or an Alternate was in attendance.

³ Based in New York, USA and resigned 29 April 2009.

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.

During the year the Board reviewed its Board Committee structure and following the appointment of Messers Conde and St George in April 2009 amended its Committee membership effective 1 May 2009.

2. Attendance of Directors at Board meetings and Board Committee meetings (continued)

The table below sets out the number of Board Committee meetings held during the year for the Committees in place at the end of the year and each Directors' attendance at those meetings.

		Board Audit Committee		Board Risk Committee		Board Compliance Committee		Board Nomination and Remuneration Committee		Board Finance Committee
	held	attended	held	attended	held	attended	held	attended	held	attended
Christopher T Beare							9	9	4
Elizabeth A Alexander AM					з	з			З
Barry R Brownjohn		6
John C Conde AO ¹
Stewart F Ewen OAM							9	9
Victor P Hoog Antink
Charles B Leitner III ²
Brian E Scullin	6	6	з	З		4	9	9
Peter St George

¹ Appointed 29 April 2009.

² Resigned 29 April 2009.

3. Remuneration Report

1. Introduction

This Remuneration Report has been prepared in accordance with AASB 124 Related Party Disclosures and section 300A of the Corporations Act 2001 for the year ended 30 June 2009. The information provided in this Report has been audited in accordance with the provisions of section 308 (3C) of the Corporations Act.

Key management personnel

In this report, Key Management Personnel ("KMP") are those people having the authority and responsibility for planning, directing and controlling the activities of DEXUS either directly or indirectly. They comprise Non-Executive Directors, the CEO and other members of the Executive Committee. Within this report the term 'Executive' encompasses the CEO and other members of the Executive Committee.

KMP (including the five highest paid Executives) of DEXUS for the year ended 30 June 2009 are set out below:

Name	Title	Date of qualification as a KMP
Non-Executive Directors
Christopher T Beare	Non-Executive Chair	Appointed 1 October 2004
Elizabeth A Alexander AM	Non-Executive Director	Appointed 1 January 2005
Barry R Brownjohn	Non-Executive Director	Appointed 1 January 2005
John C Conde AO	Non-Executive Director	Appointed 29 April 2009
Stewart F Ewen OAM	Non-Executive Director	Appointed 1 October 2004
Charles B Leitner III ¹	Non-Executive Director	Resigned 29 April 2009
Brian E Scullin	Non-Executive Director	Appointed 1 January 2005
Peter B St George	Non-Executive Director	Appointed 29 April 2009

Mr Leitner was appointed on 10 March 2005. Simultaneous with Mr Leitner's resignation, Mr Fay resigned as Mr Leitner's alternate.

3. Remuneration Report (continued)

1. Introduction (continued)

Key management personnel (continued)

Name	Title	Date of qualification as a KMP
Executives
Victor P Hoog Antink	Chief Executive Officer	Appointed 1 October 2004
Tanya L Cox	Chief Operating Officer	Appointed 1 October 2004
Patricia A Daniels	Head of Human Resources	Appointed 14 January 2008
John C Easy	General Counsel	Appointed 1 October 2004
Jane Lloyd	Head of Retail	Appointed 14 July 2008
Louise J Martin	Head of Office	Appointed 27 March 2008
Craig D Mitchell	Chief Financial Officer	Appointed 17 September 2007
Paul G Say	Head of Corporate Development	Appointed 19 March 2007
Mark F Turner	Head of Funds Management	Appointed 1 October 2004
Andrew P Whiteside	Head of Industrial	Appointed 28 April 2008

2. Board oversight of remuneration

The Board Nomination and Remuneration Committee ("Committee") oversees the remuneration of Directors and Executives. The Committee is responsible for reviewing, and recommending to the Board, Executive remuneration policies and structures.

The Committee assesses the appropriateness of the structure and quantum of Director and Executive remuneration on an annual basis by reference to relevant regulatory and market conditions, and engages external consultants as required to provide independent advice.

The role and membership of the Committee is set out in the Corporate Governance Statement, which may be found at http://www.DEXUS.com/Corporate-Governance.aspx.

During the reporting period Nomination and Remuneration Committee members were Messrs Beare (Chair), Ewen, Scullin and Conde (commencing 1 May 2009). Further to his appointment to the Board in April 2009 the Board resolved that Mr Conde be appointed Chair of the Nomination and Remuneration Committee effective 31 August 2009.

3. Non-Executive Directors' remuneration framework

The objectives of the Non-Executive Directors' remuneration framework are to ensure Non-Executive Directors' fees reflect the responsibilities of Non-Executive Directors and are market competitive. Non-Executive Directors' fees are reviewed annually.

Non-Executive Directors, other than the Chair, receive a base fee plus additional fees for membership of Board Committees. The table below outlines the fee structure for the reporting period.

Committee	Chair $($ \$)	Member (\$)
Non-Executive Director	300,000	130,000
Board Audit & Risk	30,000	15.000
Board Finance	30,000	15,000
Board Compliance	15,000	7.500
Board Nomination & Remuneration	٠	7,500

3. Non-Executive Directors' remuneration framework (continued)

Mr Leitner was an employee of RREEF America Inc., a Deutsche Bank group company, during the year ended 30 June 2009. and was not paid fees or any other remuneration by DEXUS. Mr Fay, the alternate Director to Mr Leitner, received a consulting fee equivalent to the base fee earned by Non-Executive Directors.

During the year the Board considered the establishment of a Committee to oversee property acquisitions, disposals and developments. However, whilst the Board concluded that a formal Committee was not appropriate, it determined that Mr Ewen be paid a fixed fee of \$30,000 per annum for assuming additional responsibilities involved in attending meetings and reviewing property investment proposals on its behalf.

Recognising the greater responsibility and time commitment required the Chair receives a higher fee than other Non-Executive Directors, which is benchmarked to the market median of comparably sized ASX listed entities. The Chair receives no Board Committee fees, nor is the Chair present during any discussion relating to the determination of the Chair's fees.

Non-Executive Directors are not eligible to receive performance based remuneration or accrue separate retirement benefits beyond statutory superannuation entitlements.

Fees paid to Non-Executive Directors are paid from a remuneration pool of \$1,750,000 per annum, which was approved by DEXUS security holders at its Annual General Meeting held in October 2008. Non-Executive Directors' fees were last adjusted in July 2007. Non-Executive Directors have received no increase in fees since that time. The next review of fees will be in respect of the year commencing 1 July 2010.

4. Approach to Executive remuneration

Philosophy underlying Executive remuneration

The Directors expect that superior execution and delivery of the DEXUS business model will create superior security holder value, through the delivery of consistent returns, generated with relatively moderate risk. The Directors consider that an appropriately skilled and qualified Executive team is essential to achieve this objective. DEXUS' approach to the structure and quantum of Executive remuneration is therefore designed to attract, motivate and retain such an Executive team.

In setting the remuneration structure, the Directors are conscious that the business of DEXUS involves longer term property investments and customer relationships. In addition, property market returns have tended to be cyclical, particularly when coupled with financial structures that act to enhance returns.

Taking these considerations into account, the Executive remuneration structure and quantum is based on the following criteria:

(a) market competitiveness and reasonableness;
(b) alignment of Executive performance payments with achievement of the Group's objectives within its risk framework, and reinforcement of DEXUS' values-based culture; and
(c) an appropriate target mix of remuneration, including performance payments linked to security holder returns over the longer term, and the avoidance of incentives that encourage short term decision taking.

DEXUS' Executive remuneration structure may be summarised as follows:

fixed remuneration, targeted at the median of fixed remuneration of entities in the comparison group, with reference to each Executive's skills and depth of experience;
total remuneration, targeted at the market median, and awarded on a variable scale for each Executive which could result in a total remuneration range from lower quartile to upper quartile, reflecting differing levels of experience, role structure and individual contribution; and
a single pool of funds available to meet performance payments, which is divided between short-term and long term elements.

3. Remuneration Report (continued)

4. Approach to Executive remuneration (continued)

(a) Market competitiveness and reasonableness

DEXUS has determined a comparison group, for remuneration benchmarking purposes, from:

1. constituents of the S&P/ASX 100 index:
1. constituents of the listed Australian Real Estate Investment Trust ("A-REIT") sector; and
other property industry entities. $\mathbf{R}$

As noted above, a single pool of funds is made available to meet all performance payments. The pool of funds available is sufficient to ensure that DEXUS can achieve its total remuneration positioning target, relative to the market. The Board exercises its discretion to vary the size of the available pool by reference to such factors as:

three year absolute total security holder return;
management costs and revenue of DEXUS Holdings; and
performance against budgeted earnings per security and distribution per security, recognising capital adjustments.

(b) Alignment of Executive performance payments with achievement of the Group's objectives

The key performance measures that determine performance payments are typically a combination of financial and non-financial objectives which reflect each Executive's role, responsibility, accountability and delivery.

These objectives can include:

Financial performance objectives
Earnings per security
Distributions per security (in line with its Distribution Policy)
Third party funds performance
Total security holder return, relative to peers
Property performance objectives
- Operating earnings
- Percentage of vacant space per property
- Expenses against budget
Non financial performance objectives
Tenant satisfaction
Employee engagement
Executive succession and talent management
Delivery of strategic projects to meet time and budget requirements
Behaviour that reinforces DEXUS' cultural values

These objectives have been selected as the Directors consider them to be the key drivers to achieve superior security holder returns over time.

The Committee reviews and approves CEO and other Executive key performance indicators (KPIs) against Group objectives at the start of each financial year and reviews achievement against KPIs at the end of each year.

3. Remuneration Report (continued)

4. Approach to Executive remuneration (continued)

(c) Target mix of remuneration

The target remuneration mix for Executives, expressed as a percentage of total remuneration, is provided in the table below.

		2009			2008
Remuneration component	CEO	CFO	Other Executives	CEO	Property Executives	Other Executives
Total fixed	35%	40%	50%	40%	45%	50%
Short term performance payment ("STPP")	30%	30%	25%	30%	30%	25%
Long term performance payment ("LTPP")	35%	30%	25%	30%	25%	25%

The Directors consider that allocating performance payments evenly between immediate short term payments and deferred long term payments is appropriate for Executives other than the CEO, whose performance payment is weighted to the longer term to provide relatively greater alignment with long term returns to security holders.

Executive remuneration structure

The table below outlines the structure of DEXUS' Executive remuneration.

Component		Remuneration framework
		Consists of cash salary and salary sacrificed fringe benefits, such as motor $\blacksquare$ vehicles.
Total fixed remuneration ("TFR")	Salary	Reviewed annually by the Board. Draws on relevant external and internal ш comparative remuneration information and advice on market practice as required.
	Superannuation	Prescribed and salary sacrifice superannuation contributions, including $\blacksquare$ insurance premiums (if required).
		The aim of performance payments is to link the achievement of the Group's ш objectives with the remuneration received by the Executives responsible for meeting those objectives.
Performance payments - STPP & LTPP		The objectives consist of financial and non-financial measures of $\blacksquare$ performance at the Group, business unit and individual level.
		The objectives represent the key drivers for the success of the business and п for delivering long term value to security holders.
		Performance payments made to each Executive depend on the extent to $\blacksquare$ which specific KPIs, set at the beginning of the financial year, are met. Payments are only made for performance at or above required performance levels.
		Performance payments are delivered in cash. The ratio of STPP to LTPP is ٠ set out in the target remuneration mix table above.
		Delivery of LTPP is deferred for three years, as described below. ٠

4. Approach to Executive remuneration (continued)

Performance payments

Annual performance payments have two elements, being immediate short term and deferred long term cash payments. As noted above, an award of a performance payment is dependent on the extent of achievement of objectives reflected in specific KPIs.

Should an Executive be awarded a performance payment, the payment is split between STPP and LTPP using the ratio set out in the target remuneration mix table above.

Short term performance payment (STPP)

The STPP is delivered in cash in September each year, following the end of the financial year.

Long term performance payment (LTPP)

The LTPP is delivered in cash in accordance with the vesting schedule as set out in the Long Term Incentive Plan rules.

The actual cash payment is based upon the subsequent three year returns of a combination of the returns received by DEXUS security holders and the returns received by its unlisted funds and mandates. Returns exceeding the benchmark are recognised by a greater long term performance payment.

The Long Term Incentive Plan operates as follows:

Following allocation into the plan, payments are subject to a three year vesting period from allocation date;
The LTPP allocation value is notionally invested during the vesting period in DEXUS securities (50 percent of LTPP value) and its unlisted funds and mandates (50 percent of LTPP value);
During the vesting period, LTPP allocation values fluctuate in line with changes in the "Composite Total Return" (simulating the notional investment exposure), comprising 50 percent of the total return of DEXUS securities and 50 percent of the combined asset weighted total return of its unlisted funds and mandates; and
At the conclusion of the three year vesting period, if the Composite Total Return meets or exceeds 100% of the Composite Performance Benchmark, the Board may approve the application of a performance factor to the final LTPP allocation value:
The "Composite Performance Benchmark" is 50 percent of the S&P/ASX 200 Property Accumulation Index and 50 percent of the Mercer Unlisted Property Fund Index over the 3-year vesting period;
For performance up to 100% of the Composite Performance Benchmark, executives receive an LTPP allocation reflecting the Composite Total Return of the preceding 3 year vesting period; and
For performance between 100% and 130% of the Composite Performance Benchmark a performance factor may be applied, ranging from 1.1 to a maximum of 1.5 times.

Provisions regarding the vesting of LTPP in the event of termination of service agreements are outlined in section 7 below.

Equity options scheme

DEXUS does not operate an equity option scheme as part of its Executive remuneration structure. The Committee has considered the introduction of such a scheme, but has determined that it would not be, at the present time, an appropriate component of the remuneration structure in light of DEXUS' business model.

Equity and loan schemes

DEXUS does not operate a security participation plan or a loan plan for Executives or Directors.

The long term element of DEXUS' performance payment is designed to simulate an equity plan, but does not provide Executives with direct equity exposure.

Hedging policy

DEXUS does not permit Executives to hedge their LTPP allocation during the vesting period.

3. Remuneration Report (continued)

5. Executive remuneration arrangements for the year ended 30 June 2009

This section outlines how the remuneration approach described above has been implemented in the 2008/09 financial year.

Changes made during the year ended 30 June 2009

Remuneration structure

As part of the Committee's annual review of the Executive remuneration structure, a number of changes were made during the year ended 30 June 2009. These included:

(a) evaluation and revision of the target remuneration mix for Executives;
(b) allocation of performance payments between STPP and LTPP in accordance with the target remuneration mix;
(c) increased focus on the review of appropriate and challenging KPIs for CEO and other Executives by Committee;
(d) additional entities incorporated in the comparison group used to benchmark Executive remuneration.

Long Term Incentive Plan review

The DEXUS Long Term Incentive Plan was reviewed, incorporating advice from external consultants. The Committee confirmed key objectives to:

$\ddot{\phantom{a}}$ achieve alignment with the long term interest of security holders;
ensure Executives are exposed to equity;
assist in creating a competitive total remuneration package that encourages the attraction and retention of executives:
have performance criteria consistent with DEXUS' long term focus;
be simple and transparent; $\ddot{\phantom{0}}$
be flexible and long term in nature;
be valued and understood by Executives; and
be cognisant of contemporary market practice.

The Committee reaffirmed that the design of the plan, including that LTPP allocations are notionally invested in both DEXUS securities and the securities of its unlisted funds, was consistent with the DEXUS business model and long term strategy, although a number of operational enhancements were implemented as follows:

eligibility restricted to Executives and senior management team;
accelerated vesting on termination was discontinued; and
automatic application of the performance multiplier was removed.

Termination provisions

During the year the Committee also reviewed Executive termination arrangements. The Group's previous practice provided for uncapped termination benefits for Executives, related to years of service. The Board has now approved amended arrangements for Executives. These termination arrangements are outlined in Section 7 'Service agreements'.

The Committee anticipates that potential regulatory changes, including the recommendations of the Productivity Commission's review of executive remuneration, could necessitate further changes in the coming year.

Total fixed remuneration

Executives are given the opportunity to receive their TFR as cash, superannuation or salary sacrificed fringe benefits, such as motor vehicles.

There are no guaranteed TFR increases in Executives' contracts of employment. In the 2010 financial year, there will be no TFR increases for Executives.

3. Remuneration Report (continued)

5. Executive remuneration arrangements for the year ended 30 June 2009 (continued)

Performance payments

As outlined under the Executive remuneration structure above. STPP and LTPP allocations are drawn from a single performance pool, with the size of the pool determined according to reasonableness and market competitiveness.

All Executive performance payments were dependent on the achievement of performance against agreed objectives, including performance of their business unit and the overall performance of DEXUS. The Board exercised its discretion regarding the final determination of performance payments and, reflecting DEXUS' performance in 2008/09, performance payments to Executives were scaled down.

As outlined above, a portion of the performance payment for each Executive is delivered as a cash-based payment in September 2009, for performance to 30 June 2009. The remaining portion of the performance payment is allocated to the Long Term Incentive Plan, to be delivered as a cash-based payment in September 2012, for performance to 30 June 2009.

6. Group performance and the link to remuneration

Total return analysis

The table below sets out the DEXUS total security holder return since inception, relative to the S&P/ASX 200 Property Accumulation Index. It also sets out DEXUS' Composite Total Return since inception, relative to the Composite Performance Benchmark. The DEXUS Composite Total Return is 50 percent of the total return of DEXUS securities, plus 50 percent of the combined asset weighted total return of its unlisted funds and mandates and the Composite Performance Benchmark is 50 percent of the S&P/ASX 200 Property Accumulation Index and 50 percent of Mercers' Unlisted Property Fund Index.

Period to 30 June 2009	1 year (% per annum)	2 years $%$ per annum)	3 years (% per annum)	Since 1 October 2004 (% per annum)
DEXUS Property Group	$-37.3%$	$-31.1%$	$-12.1%$	$-2.5%$
S&P/ASX 200 Property Accumulation Index	$-42.3%$	$-39.4%$	$-22.7%$	$-10.3%$
DEXUS Composite Total Return	$-24.2%$	$-16.1%$	$-4.0\%$	3.4%
Composite Performance Benchmark	$-27.3%$	$-19.6\%$	$-8.2%$	0.3%

¹ DEXUS' inception date is 1 October 2004.

During the year DEXUS did not buy back or cancel any of its securities.

3. Remuneration Report (continued)

6. Group performance and the link to remuneration (continued)

Total return of DEXUS securities

The graph below illustrates DEXUS' total security holder return relative to the S&P/ASX 200 Property Accumulation Index.

6 October 2004 to 30 June 2009

DEXUS has outperformed the S&P ASX 200 Property Accumulation index in the most recent year and in each period since inception in October 2004. In addition, the DEXUS Composite Total Return has likewise outperformed the Composite Performance Benchmark in the most recent year and in each period since inception in October 2004.

While the Directors recognise that improvement is always possible, they consider that DEXUS' business model, which aims to deliver consistent returns with relatively moderate risk, has been central to DEXUS' relative out-performance, and that the approach to Executive remuneration, with a focus on consistent out-performance of objectives, is aligned with and supports the superior execution of the DEXUS business model.

7. Service agreements

The employment arrangements for the CEO and other Executives are set out below.

CEO - Victor P Hoog Antink

The current employment contract commenced on 1 October 2004. The principal terms of the employment contract are as follows:

the CEO is employed under a rolling contract.
the CEO receives fixed remuneration of \$1,300,000 per annum.
the CEO may resign from his position and thus terminate this contract by giving six months written notice. On resignation any unvested LTPP will be forfeited subject to the discretion of the Board.
the Group may terminate the CEO's employment agreement by providing six months written notice or payment in lieu of the notice period (based on the fixed component of CEO's remuneration). Additionally, the Group may provide a performance payment for the period of the last review date (being 1 July) until the last day of the notice period.
in the event that the Group initiates termination for reasons outside the control of the CEO, a severance payment equal to 100% of fixed remuneration is payable.
on termination by the Group, any LTPP awards will vest in accordance with the vesting schedule of the Long Term Incentive Plan, subject to the discretion of the Board.
the Group may terminate the contract of the CEO at any time without notice if serious misconduct has occurred. In the event of termination for cause the CEO is only entitled to that portion of remuneration that is fixed, and only up to the date of termination. On termination for cause any unvested LTPP awards will immediately be forfeited.

Executives (other than the CEO)

The principal terms of Executive employment contracts are as follows:

all Executives have rolling contracts.
the Group may terminate an Executive's employment agreement by providing three months written notice or providing payment in lieu of the notice period (based on the fixed component of the Executive's remuneration). In the event that the Group initiates the termination for reasons outside the control of the Executive, a severance payment equal to a maximum of 75% of fixed remuneration will be made.
on termination by the Group, any LTPP awards will vest in accordance with the vesting schedule of the Long Term Incentive Plan, subject to the discretion of the Board.
the Group may terminate the contract at any time without notice if serious misconduct has occurred. Where termination for cause occurs the Executive is only entitled to that portion of remuneration that is fixed, and only up to the date of termination. On termination for cause any unvested LTPP awards will immediately be forfeited.

Page 13 of 97

Remuneration Report (continued)

8. Remuneration of key management personnel

Details of the structure and quantum of each component of remuneration for DEXUS Executives for the years ended 30 June 2008 and 30 June 2009 are set out in the
following table. This table includes details of the five high

CASH SALARY	MH SHORT TERM EMPL SHORT TE	OTHER OYEE BENEFITS	BENEFITS PENSION AND POST EMPLOYMENT		MOVEMENT IN	OTHER LONG TERM BENEFITS OTHER LONG	TOTAL
IFORMANCE PERFORMA		BENEFITS TERM	SHORT SUPER BENEFITS	ALLOCATIONS ⁶ LONG TERM PERFORMANCE PAYMENT	PRIOR YEAR VALUES ⁷ PERFORMANCE PAYMENT ALLOCATION LONG TERM	BENEFITS TERM
	⊛	⊕	⊕	⊕	⊕	⊕

	$\overline{5}$ 785,		100,000	915,000	(416,600)		2,583,400
90,	8		100,000	900,000	(106.947		2,893,053

150,	000		47,914	150,000	(80, 773)		619,227
200,	8		10,941	175,000	(16, 495)		708,505

	90,000		13,745	90,000	(24, 250)		417,084
	60,000	ı	5,471	100,000	ı	ı	268,941

163,	ooc		31,745	162,000	(57,688)		642,312
is	8	ı	37,129	120,000	(13,250)		591,750

	٠			п	٠	ı	ı
	ı		9,847		$\blacksquare$	1,105,000 ⁸	1,461,191

$\frac{3}{11}$	ooo		13,745	112,000	n	ı	600,000
					ı

¹ Patricia A Daniels qualified as a KMP on 14 January 2008. Actual remuneration received is for a four day week.
² Ben J Lehmann ceased to qualify as a KMP on 27 March 2008.
³ Jane Lloyd qualified as a KMP on 14 July

Remuneration Report (continued)
Remuneration of key management personnel (continued)

		SHORT TERM EMPLO	YEE BENEFITS	BENEFITS POST EMPLOYMENT			OTHER LONG TERM BENEFITS	TOTAL
	AND FEES CASH SALARY	IFORMANCE SHORT TERM PERFORMAN	SHORT OTHER BENEFITS TERM	PENSION AND SUPER BENEFITS	PERFORMANCE ALLOCATIONS ⁹ LONG TERM PAYMENT	MOVEMENT IN PRIOR YEAR PERFORMANCE ALLOCATION VALUES ⁷ LONG TERM PAYMENT	BENEFITS OTHER LONG TERM
NAME	⊕	G	ଛି	⊕	⊕	⊕	⊕	⊕
Louise J Martin ⁴
2009	405,000	175,000		95,000	175,000	(60, 625)	٠	789,375
2008	116,607	225,000		1,250	250,000		٠	592,857
Craig D Mitchell
2009	500,000	325,000		50,000	325,000	(60, 625)	ï	1,139,375
2008	273,768	250,000	162,592	42,899	250,000	ı	$\mathbf{I}$	979,259
Paul G Say
2009	486,255	200,000		13,745	200,000	(60,625)	f,	839,375
2008	466,871	225,000		13,129	250,000		×	955,000
Mark F Turner
2009	400,015	135,000		49,985	135,000	(103, 635)	J.	616,365
2008	377,172	200,000		42,828	200,000	(22,669)	f.	797,331
Andrew P Whiteside ⁵
2009	461,255	135,000		13,745	135,000	(24, 250)	t,	720,750
2008	61,228	200,000		3,282	100,000			364,510
TOTAL
2009	4,756,710	2,271,000		429,624	2,399,000	(889,071	ı	8,967,263
2008	3,482,390	2,410,000	162,592	266,776	2,345,000	(159,362)	1,105,000	9,612,396

$\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\bar{\$

⁴ Louise J Martin qualified as a KMP on 27 March 2008.
⁵ Andrew P Whiteside qualified as a KMP on 28 April 2008.
⁶ This is the LTPP allocation for the current year which is deferred for three years as described on pa

8. Remuneration of key management personnel (continued)

Long term performance payments

The table below sets out details of previous LTPP allocations and current valuations.

	YEAR OF	LTPP	MOVEMENT	CLOSING	MOVEMENT IN	VESTED	YEAR THAT
	GRANT	ALLOCATION	IN LTPP	LTPP	LTPPI	LTPP AS	LTPP WILL
				VALUE ALLOCATION ALLOCATION	ALLOCATION	AT 30 JUNE	VEST
				VALUE VALUE AS AT	VALUE AT	2009
			(SINCE GRANT	30 JUNE 09	VESTING DATE (DUE TO
			DATE)		PERFORMANCE
					MULTIPLIER)
NAME	\$		\$	\$	S	\$	\$
Victor P Hoog Antink	2009	915,000					2012
	2008	900,000	(218, 250)	681,750			2011
	2007	650,000	(177, 580)	472,420			2010
	2006	250,000	(23, 750)	226,250	113,125	339,375	2009
Tanya L Cox	2009	150,000					2012
	2008	175,000	(42, 438)	132,563			2011
	2007	110,000	(30, 052)	79,948			2010
Patricia A	2006	60,000	(5,700)	54,300	27,150	81,450	2009
Daniels ¹	2009	90,000					2012
	2008	100,000	(24, 250)	75,750		$\bar{z}$	2011
John C Easy	2009	162,000					2012
	2008	120,000	(29, 100)	90,900			2011
	2007	75,000	(20, 490)	54,510			2010
Jane Lloyd ²	2006	50,000	(4,750)	45,250	22,625	67,875	2009
Louise J	2009	112,000					2012
Martin ³	2009	175,000					2012
	2008	250,000	(60, 625)	189,375			2011
Craig D Mitchell	2009	325,000					2012
	2008	250,000	(60, 625)	189,375			2011
Paul G Say	2009	200,000					2012
	2008	250,000	(60, 625)	189,375			2011
Mark F Turner	2009	135,000					2012
	2008	200,000	(48, 500)	151,500			2011
	2007	180,000	(49, 176)	130,824			2010
	2006	70,000	(6,650)	63,350	31,675	95,025	2009
Andrew P Whiteside $^4$	2009	135,000					2012
	2008	100,000	(24, 250)	75,750			2011

¹ Patricia A Daniels qualified as a KMP on 14 January 2008.

² Jane Lloyd qualified as a KMP on 14 July 2008.

³ Louise J Martin qualified as a KMP on 27 March 2008.

⁴ Andrew P Whiteside qualified as a KMP on 28

3. Remuneration Report (continued)

8. Remuneration of key management personnel (continued)

Non-Executive Director board and committee fees

Board and Committee fees paid to Non-Executive Directors for the years ended 30 June 2008 and 30 June 2009 are set out in the table below.

	Directors	Committee Fees						Total cash
	Fees								salary and fees
NAME	Board	Chair DWPL	Board Audit	Board Risk	Board Complian ce	Board Nom & Rem	Board Treasur y Policy	Board Finance
	$($ \$)	$\overline{(*)}$	$($ \$)	$($ \$)	$\overline{(\$)}$	$\overline{(*)}$	$($ \$)	$($ \$)	$($ \$)
Christopher T Beare
2009	300,000								300,000
2008	300,000	$\blacksquare$				$\blacksquare$			300,000
Elizabeth A Alexander ¹
2009	130,000		15,000	15,000	6,250	$\blacksquare$		6,250	172,500
2008	130,000	$\overline{\phantom{a}}$	15,000	15,000	8,125			5,625	173,750
Barry R 2 Brownjohn
2009	130,000		7,500	7,500		-		15,000	160,000
2008	130,000	÷	7,500	7,500		$\blacksquare$		15,000	160,000
John C Conde
2009	22,652				1,250	1,250			25,152
2008		$\blacksquare$	$\blacksquare$	٠
Stewart F Ewen
2009	130,000					7,500			137,500
2008	130,000					7,500			137,500
Charles B Leitner III ⁴
2009
2008
Brian E Scullin
2009	130,000	30,000	6,250	6,250	15,000	7,500			195,000
2008	130,000	30,000	7,500	7,500	16,250	7,500			198,750
Peter B _St. George ⁵
2009	22,652		1,250	1,250		۰		1,250	26,402
2008
Total
2009	865,304	30,000	30,000	30,000	22,500	16,250		22,500	1,016,554
2008	820,000	30,000	30,000	30,000	24,375	15,000		20,625	970,000

$\mathbf{1}$ Elizabeth A Alexander ceased to be a member of the Board Compliance Committee and a member of the Board Finance Committee on 30 April 2009. $\overline{c}$

Barry R Brownjohn ceased to be the chair of the Board Finance Committee on 30 April 2009 and became chair of the Board Compliance Committee on 1 May 2009. $\mathbf 3$

John C Conde became a Non-Executive Director on 29 April 2009. He was appointed to the Board Compliance Committee and the Board Nomination & Remuneration Committee on 1 May 2009. $\overline{4}$

As an employee of the Deutsche Bank group, Mr Leitner waived his right to receive Director's fees. Accordingly, Mr Leitner's alternate Director, Mr Fay did not receive Director's fees when acting as his alternate. Mr Leitner ceased to be a Non-Executive Director on 29 April 2009. Accordingly, Mr Fay ceased to be Mr Leitner's alternate Director on 29 April 2009.

$\overline{5}$ Peter B St George became a Non-Executive Director on 29 April 2009. He was appointed to the Board Audit & Risk Committee and the Board Finance Committee on 1 May 2009.

3. Remuneration Report (continued)

8. Remuneration of key management personnel (continued)

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

During the year ended 30 June 2009, Charles B Leitner, Non-Executive Director, was an employee of RREEF America Inc., a Deutsche Bank group company, and was not paid fees or any other remuneration by DEXUS or any of its 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 DXFM.

Commencing 1 April 2009 Mr Ewen earned a fee equivalent to a Committee Chair fee, in addition to his Director's fee, as compensation for the added responsibilities assumed in attending meetings and reviewing property investment proposals on behalf of the Board.

During the year, Mr Fay received a consulting fee of \$108,300 from 1 July 2008 to 29 April 2009.

Non-Executive Director Remuneration

Details of the structure and quantum of each component of remuneration for each Non-Executive Director for the years ended 30 June 2008 and 30 June 2009 are set out in the following table.

		SHORT TERM EMPLOYEE BENEFITS	POST EMPLOYMENT OTHER LONG TERM BENEFITS	BENEFITS	TOTAL
NAME		$($ \$)	$($ \$)	$($ \$)	$($ \$)
Christopher T Beare
	2009	286,255	13,745		300,000
2008		286,871	13,129		300,000
Elizabeth A Alexander
	2009	157,844	14,656		172,500
2008		160,621	13,129	٠	173,750
Barry R Brownjohn
	2009	146,789	13,211		160,000
2008		123,379	36,621		160,000
John C Conde
	2009	23,075	2,077		25,152
2008
Stewart F Ewen OAM
	2009	63,073	74,427		137,500
2008		126,147	11.353		137,500
Brian E Scullin
	2009	181,255	13,745		195,000
2008		139,605	59,145		198,750
Peter B St George
	2009	24,222	2,180		26,402
2008
Total 2009		882,513	134,041		1,016,554
Total 2008		836,623	133,377	٠	970,000

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

4. Directors' interests

The Board's policy on insider trading and trading in DXS securities or securities in any of the funds managed by DEXUS 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 DEXUS.

Directors have made this decision because the Board of DXFM has responsibility for the DEXUS Property Group itself as well as the third party business. Directors are obliged to act in the best interests of each group of investor's 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 DEXUS including DXS. This position is periodically reviewed by the Board.

As a direct result of DEXUS' policy regarding Directors holding DXS securities, or securities in any of the funds managed by DEXUS, as at the date of this Directors' Report no Director or alternate Director directly or indirectly held:

DXS securities; or
options over, or any other contractual interest in, DXS securities; or
an interest in any other fund managed by DXFM or any other entity that forms part of DEXUS Property Group.

5. Directors' directorships in other listed entities

The following table sets out directorships of other listed entities, not including DXFM, 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:

Directors			Date resigned or ceased being a Director of a listed security
	Company	Date appointed
Elizabeth A Alexander AM	CSL Limited	12 July 1991
	Boral Limited	15 December 1999	24 October 2008
John C Conde AO	Whitehaven Coal Limited	3 May 2007
Brian E Scullin	Deutsche Asset Management
	(Australia) Limited ¹	24 October 2000	17 October 2006
	IYS Instalment Receipt Limited'	24 October 2000	17 October 2006
	SPARK Infrastructure RE Limited ²	1 November 2005	24 August 2007
	BT Investment Management Limited	17 September 2007
Peter St George	Boart Longyear Limited	21 February 2007
	SPARK Infrastructure RE Limited ²	8 November 2005	31 December 2008
	First Quantum Minerals Limited ³	20 October 2003
Alternate Director	Deutsche Asset Management
Andrew J Fay (alternate to	(Australia) Limited ¹	20 October 2004	17 October 2006
Charles B Leitner III)	IYS Instalment Receipt Limited ¹	20 October 2004	17 October 2006
	SPARK Infrastructure RE Limited ²	7 December 2006	12 December 2007

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. Deutsche Asset Management (Australia) Limited ceased to be the Responsible Entity of IYS Instalment Receipt Limited on 17 October 2006.

$\overline{2}$ SPARK Infrastructure RE Limited has issued ASX listed stapled securities trading as SPARK Infrastructure Group (ASX: SKI).

3 Listed for trading on the Toronto Stock Exchange in Canada and the London Stock Exchange in the United Kingdom.

6. Principal activities

During the year the principal activity of DEXUS Property Group was to own and manage high quality real estate assets and manage real estate funds on behalf of third party investors. There were no significant changes in the nature of DEXUS Property Group's activities during the year. The number of employees of DXS at the end of the reporting period being 30 June 2009 was 284 (2008: 270).

7. Total value of trust assets

The total value of the assets of the DEXUS Property Group as at 30 June 2009 was \$8,351.1 million (2008; \$9,349.0 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 the DEXUS Property Group, are 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 the DEXUS Property Group, other than the information already outlined in this Directors' Report or the Financial Statements accompanying this Directors' Report would be unreasonably prejudicial to the DEXUS Property Group,

10. Significant changes in the state of affairs

The Directors are not aware of any matter or circumstance, not otherwise dealt with in this Directors' Report or the Financial Statements that has significantly or may significantly affect the operations of the DEXUS Property Group, the results of those operations, or the state of the DEXUS Property Group'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 DXFM are not aware of any matter or circumstance not otherwise dealt with in this Directors' Report or the Financial Statements that has significantly or may significantly affect the operations of the DEXUS Property Group, the results of those operations, or the state of DXS's affairs in future financial years.

12. Distributions

Distributions paid or payable by the DEXUS Property Group for the year ended 30 June 2009 were 7.3 cents per security (2008: 11.9 cents per security) as outlined in Note 29 of the Notes to the Financial Statements.

13. DXFM's fees and associate interests

Details of fees paid or payable by the DEXUS Property Group to DXFM for the year ended 30 June 2009 are outlined in Note 33 of the Notes to the Financial Statements and form part of this Directors' Report.

The number of interests in the DEXUS Property Group held by DXFM or its associates as at the end of the financial year are nil (2008: nil).

14. Interests in DXS securities

The movement in securities on issue in the DEXUS Property Group during the year and the number of securities on issue as at 30 June 2009 are detailed in Note 26 of the Notes to the Financial Statements and form part of this Directors' Report.

The DEXUS Property Group did not have any options on issue as at 30 June 2009 (2008: nil).

15. Environmental regulation

DEXUS Property Group senior management, through its Board Risk Committee, oversee the policies, procedures and systems that have been implemented to ensure the adequacy of its environmental risk management practices. It is the opinion of this Committee that adequate systems are in place for the management of its environmental responsibilities and compliance with its various licence requirements and requlations. Further, the Committee is not aware of any breaches of these requirements and to the best of its 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 DXH. The auditors are in no way indemnified out of the assets of DXS.

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

The Trusts may decide to employ the Auditor on assignments additional to their statutory audit duties where the Auditors expertise and experience with the Trusts and/or DEXUS Property Group are important.

Details of the amounts paid or payable to the Auditor, for audit and non-audit services provided during the year are set out in Note 6 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 standard of independence for auditors imposed by the Corporations Act 2001. The reasons for the Directors being satisfied are:

Board Audit Committee has determined that the Auditor 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 Auditor's independence declaration

A copy of the Auditor's 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

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

19. Rounding of amounts and currency

The DEXUS Property Group is a registered scheme of the 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.

20. Management representation

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

21. Directors' authorisation

The Directors' Report is made in accordance with a resolution of the Directors. The financial report was authorised for issue by the Directors on 17 August 2009. The Directors have the power to amend and reissue the financial report.

$\hat{Q}$ is a set of $\hat{Q}$

Christopher T Beare Chair 17 August 2009

౹౸ఀ౷ Antink

Chief Executive Officer 17 August 2009

PRICEWATERHOUSE COPERS

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Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au

Auditor's Independence Declaration

As lead auditor for the audit of DEXUS Diversified Trust for the year ended 30 June 2009, I declare that to the best of my knowledge and belief, there have been:

a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of DEXUS Diversified Trust and the entities it controlled during the period.

JHDWU

17 August 2009

JA Dunning Partner PricewaterhouseCoopers

DEXUS DIVERSIFIED TRUST INCOME STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009

security holders

		Consolidated		Parent Entity
	Notes	2009 \$'000	2008 \$'000	2009 \$'000	2008 \$'000
Revenue from ordinary activities
Property revenue	2	708,506	664,831	139,506	142,190
Distribution revenue				24,636	36,810
Interest revenue		3,225	8,134	3,431	715
Management fee revenue		63,663	26,760
Total revenue from ordinary activities		775,394	699,725	167,573	179,715
Share of net profits of associates accounted for using the
equity method	16	31	2,467
Net foreign exchange gain/(loss) Other income		2,179 335	3,442 1,253	(153, 701) 112	48,314 478
Total income		777,939	706,887	13,984	228,507
Expenses
Property expenses		(174, 485)	(159, 565)	(32, 678)	(34,803)
Responsible Entity fees	33		(21, 869)	(6, 358)	(9, 397)
Finance costs	3	(384, 241)	(213, 233)	14,022	(23, 560)
Net fair value (loss)/gain of investment properties		(1,517,564)	184,444	(164, 539)	30,733
Net (loss)/gain on sale of investment properties		(1,880)	2,297	(1, 330)	(5,743)
Net loss on sale of investment		(534)
Net fair value loss of investments				(176, 712)	(96, 517)
Net fair value loss of derivatives		(21, 209)	(3,503)	(5,753)	(2,203)
Depreciation and amortisation		(4,742)	(3,002)
Impairment		(168, 169)	(61)
Employee benefits expense	5	(59, 282)	(23, 340)
Other expenses		(21, 485)	(15, 892)	(1,622)	(1,213)
Total expenses		(2,353,591)	(253, 724)	(374, 970)	(142, 703)
(Loss)/profit before tax		(1, 575, 652)	453,163	(360, 986)	85,804
Tax benefit/(expense)
Income tax (expense)/benefit	4(a)	(12, 537)	1,542
Withholding tax benefit/(expense)	4 (c)	132,773	(9,444)
Total tax benefit/(expense)		120,236	(7,902)
(Loss)/profit after tax		(1,455,416)	445,261	(360, 986)	85,804
(Loss)/profit attributable to:
Equity holders of the parent entity		(300, 486)	83,470	(360, 986)	85,804
Equity holders of other stapled entities (minority interest)		(1, 158, 625)	354,807
Stapled security holders		(1,459,111)	438,277	(360, 986)	85,804
Net profit attributable to other minority interests		3,695	6,984
Net (loss)/profit		(1,455,416)	445,261	(360, 986)	85,804
Earnings per unit		Cents	Cents	Cents	Cents
Basic earnings per unit on (loss)/profit attributable to equity holders of the parent entity	39	(8.11)	2.64	(9.74)	2.72
Diluted earnings per unit on (loss)/profit attributable to equity
holders of the parent entity	39	(8.11)	2.64	(9.74)	2.72
The above Income Statements should be read in conjunction with the accompanying notes.
Earnings per stapled security
Basic earnings per unit on (loss)/profit attributable to stapled
security holders	39	(39.38)	13.88
Diluted earnings per unit on (loss)/profit attributable to stapled

$(39.38)$

13.88

Page 23 of 97

DEXUS DIVERSIFIED TRUST BALANCE SHEETS
AS AT 30 JUNE 2009

2009 Notes 2008 2009 2008 \$'000 \$'000 \$'000 \$'000 Current assets Cash and cash equivalents 99,214 7 84,845 27,268 31,004 8 Receivables 35,816 17,752 36,457 8,419 Non current assets classified as held for sale 9 98,054 20,800 Derivative financial instruments 11 205,491 191,162 97,805 70,059 Current tax assets 1,423 124 Other 12 9,372 13,618 2,731 1,307 Total current assets 439,247 336,329 166,356 110,789 Non-current assets Investment properties 13 7,120,710 8,182,295 1,397,596 1,589,089 Property, plant and equipment 14 438,620 443,633 129,718 62,644 Investments accounted for using the equity method 16 84,165 111,946 Investments in associates 16 138,276 314,989 Loans with related parties 10 408,583 119,533 Deferred tax assets 17 49,136 14,882 Intangible assets 18 213,267 255,113 Other 19 5,965 4,789 895 566 Total non-current assets 7,911,863 9,012,658 2,075,068 2,086,821 Total assets 8,351,110 9,348,987 2,241,424 2,197,610 Current liabilities Payables 20 98,410 118,396 19,503 13,968 Interest bearing liabilities 21 381,673 577,780 Loans with related parties 10 34,332 34,332 Current tax liabilities 1,051 1,019 Provisions 22 177,618 194,314 90,389 102,300 Derivative financial instruments 11 386,224 97,078 149,545 43,429 Other 23 281 1,799 Total current liabilities 1,045,257 990,386 293,769 194,029 Non-current liabilities Interest bearing liabilities 21 2,127,339 2,429,139 Deferred tax liabilities 24 9,975 76,543 Provisions 22 13,533 9,818 Other 25 8,789 8,048 877 959 Total non-current liabilities 2,159,636 877 959 2,523,548 Total liabilities 3,204,893 3,513,934 294,646 194,988 Net assets 5,146,217 5,835,053 1,946,778 2,002,622 Equity Equity attributable to equity holders of the parent entity Contributed equity 26 1,741,211 1,297,831 1,741,211 1,297,831 Reserves 27 (59, 252) 1,248 Undistributed income 27 264,819 705,510 205,567 704,791 Parent entity security holders' interest 1,946,778 2,004,589 2,002,622 1,946,778 Equity attributable to equity holders of other stapled entities (minority interest) Contributed equity 26 2,966,643 2,280,052 Reserves 27 35,820 49,689 Undistributed income 27 (9,796) 1,294,725 Other stapled security holders' interest 2,992,667 3,624,466 Stapled security holders' interest 4,939,445 5,629,055 1,946,778 2,002,622 Other minority interest 28 206,772 205,998 Total equity 5,146,217 5,835,053 1,946,778 2,002,622	Consolidated		Parent Entity

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

Page 24 of 97

DEXUS DIVERSIFIED TRUST
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2009

		Consolidated		Parent Entity
	Notes	2009 \$'000	2008 \$'000	2009 \$'000	2008 \$'000
Total equity at the beginning of the year		5,835,053	5,704,943	2,002,622	1,989,688
Exchange differences on translation of foreign operations Revaluation (decrement)/increment on investment	27 27	(53, 814)	(14, 486) 63,294
Net (expense)/income recognised directly in equity		(53, 814)	48,808	$\blacksquare$
Net (loss)/profit for the year		(1,455,416)	445,261	(360, 986)	85,804
Total recognised income and expense for the year		(1,509,230)	494.069	(360, 986)	85,804
Transactions with equity holders in their capacity as equity holders:
Contributions of equity, net of transaction costs Distributions provided for or paid Acquisition of investment	26 29	1,129,971 (296, 648)	243,524 (355, 380) 402	443,380 (138, 238)	146,305 (219, 175)
Transactions with other minority interest: Contributions of equity, net of transaction costs Distributions provided for or paid Disposal of minority interest Foreign currency translation reserve	29	484 (13, 749) 336	1,899 (17,536) (265,989) 29,121
Total transactions with equity holders		820,394	(363,959)	305,142	(72, 870)

Total equity at the end of the year		5,146,217	5,835,053	1,946,778	2,002,622
Total recognised income and expense for the year is
Equity holders of the parent entity - DDF unitholders Equity holders of other stapled entities (minority interest)		(421, 486) (1,091,439)	85.643 401,442	(360, 986)	85,804
Security holders of DEXUS Diversified Trust		(1,512,925)	487,085	(360, 986)	85,804
Other minority interest		3,695	6,984
Total recognised income and expense for the year		(1,509,230)	494,069	(360, 986)	85,804

$\sim 10^{-1}$

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

$\sim$ $\sim$

Page 25 of 97

DEXUS DIVERSIFIED TRUST
CASH FLOW STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009

			Consolidated		Parent Entity
	Notes	2009	2008	2009	2008
		\$'000	\$'000	\$'000	\$'000
Cash flows from operating activities
Receipts in the course of operations (inclusive of GST)		912,632	783,742	157,263	179,091
Payments in the course of operations (inclusive of GST)		(345, 517)	(252, 212)	(54, 403)	(74, 314)
Interest received		3,021	10,149	3,432	606
Finance costs (paid to)/received from financial institutions		(200, 156)	(174, 204)	18,592	8,189
Distributions received			9,862	24,636	36,810
Dividends received			3,250
Income and withholding taxes paid		(10, 403)	(6, 142)
Net cash inflow from operating activities	37 (a)	359,577	374,445	149,520	150,382
Cash flows from investing activities
Proceeds from sale of investment properties		19,833	793,200	7,540	446,799
Payments for capital expenditure on investment properties	37 _(b)	(105, 433)	(167, 642)	(14, 365)	(58, 198)
Payments for investment properties			(321, 327)		(2,800)
Proceeds from sale of investments		60,178	215,200		503,601
Payments for acquisition of investments net of cash			(321, 191)		(96)
Payments for investments accounted for using the equity
method		(25, 995)	(18,630)		(141, 178)
Wind up of investment			67
Payments for property, plant and equipment		(27, 165)	(80,661)
Payments for capital expenditure on property, plant and
equipment		(133, 877)	(87, 951)	(50, 741)	(15,605)
Net cash inflow/(outflow) from investing activities		(212, 459)	11,065	(57, 566)	732,523
Cash flows from financing activities
Issue of units		1,062,228		406,497
Establishment expenses and unit issue cost		(32, 677)	(154)	(11,029)
Increase in other minority interest		484	1,651
Borrowings provided to entities within DXS				(841,743)	(606, 896)
Borrowings provided by entities within DXS				525,511	104,348
Proceeds from borrowings		2,600,334	2,487,200	(72, 689)	264,620
Repayment of borrowings		(3,570,336)	(2,662,111)		(584,032)
Repayment of loan notes			(51,936)
Distributions paid to security holders		(214, 087)	(94, 306)	(102, 237)	(39,037)
Dividends paid to related parties			(5,974)
Distributions paid to other minority interests		(16, 136)	(16, 884)
Net cash outflow from financing activities		(170, 190)	(342, 514)	(95, 690)	(860, 997)
Net (decrease)/increase in cash and cash equivalents		(23,072)	42,996	(3,736)	21,908
Cash and cash equivalents at the beginning of the year		99,214	59,603	31,004	9,096
Effects of exchange rate changes on cash and cash equivalents		8,703	(3,385)
Cash and cash equivalents at the end of the year	7	84,845	99,214	27,268	31,004

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

$\ddot{\phantom{a}}$

Page 26 of 97

Note 1. Summary of significant accounting policies

(a) Basis of preparation

In accordance with AASB Interpretation 1002: Post-Date-of-Transition Stapling Arrangements, the entities within DXS must be consolidated. The parent entity and deemed acquirer of DIT, DOT and DXO 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, DXO 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 DXO. Other minority interests represent the equity attributable to parties external to the Trusts.

DEXUS Property Group stapled securities are quoted on the Australian Stock Exchange under the code "DXS" and comprise one unit in each of DDF, DIT, DOT and DXO. Each entity forming part of DXS 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.

DEXUS Funds Management Limited (DXFM) as Responsible Entity for each of the Trusts may only un-staple 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 2009 has been prepared in accordance with the requirements of the Trusts' Constitutions, the Corporations Act 2001, Australian Equivalents to International Financial Reporting Standards (AIFRS) and Interpretations. Compliance with AIFRS ensures that the consolidated and parent Financial Statements and Notes comply with International Financial Reporting Standards (IFRS).

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 valuation of certain non-current assets and financial instruments (refer Notes 1(e), 1(n), 1(p), and $1(v)$ ).

As at 30 June 2009, DXS had a current net asset deficiency of \$607.9 million. This Financial Report is prepared on a going concern basis as DXS has sufficient working capital and cash flow due to the existence of unutilised facilities of \$1,450.4 million as set out in Note 21.

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 estimations described in Notes 1(e), 1(n), 1(p), and 1(v), 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.

Uncertainty around property valuations

The global market for many types of real estate has been severely affected by the recent volatility in global financial markets. The lower levels of liquidity and volatility in the banking sector have translated into a general weakening of market sentiment towards real estate and the number of real estate transactions has significantly reduced.

Fair value of investment property is the price at which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction. A "willing seller" is not a forced seller prepared to sell at any price. The best evidence of fair value is given by current prices in an active market for similar property in the same location and condition.

The current lack of comparable market evidence relating to pricing assumptions and market drivers means that there is less certainty in regard to valuations and the assumptions applied to valuation inputs. The period of time needed to negotiate a sale in this environment may also be significantly prolonged.

The fair value of investment property has been adjusted to reflect market conditions at the end of the reporting period. While this represents the best estimates of fair value as at the balance sheet date, the current market uncertainty means that if investment property is sold in future the price achieved may be higher or lower than the most recent valuation, or higher or lower than the fair value recorded in the Financial Statements.

Note 1. Summary of significant accounting policies (continued)

(b) Principles of consolidation

(i) 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 Statement and Balance Sheet respectively. Where control of an entity is obtained during a financial year, its results are included in the Income Statement 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.

(ii) 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) Revenue recognition

(i) 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.

(ii) Management fee revenue

Management fees are brought to account on an accruals basis, and if not received at the balance date, are reflected in the Balance Sheets as a receivable.

(iii) Interest revenue

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

(iv) 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.

(d) Expenses

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

(i) 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.

(ii) Borrowing costs

Borrowing costs include interest, amortisation of discounts or premiums relating to borrowings, amortisation or ancillary costs incurred in connection with arrangement of borrowings and foreign exchange losses net of hedged amounts on borrowings, including trade creditors and lease finance charges. Borrowing costs are expensed as incurred unless they relate to qualifying assets.

Qualifying assets are assets which take more than 12 months to get ready for their intended use or sale. In these circumstances, borrowing costs are capitalised to the cost of the asset during the period of time that is required to complete and prepare the asset for its intended use or sale. Where funds are borrowed generally, borrowing costs are capitalised using a weighted average capitalisation rate.

Note 1. Summary of significant accounting policies (continued)

(e) Derivatives and other financial instruments

(i) Derivatives

The Trusts' activities expose it to a variety of financial risks including foreign exchange risk and interest rate risk. Accordingly, the Trust enters into various derivative financial instruments such as interest rate swaps, cross currency swaps and foreign exchange contracts to manage its exposure to certain risks. Written policies and limits are approved by the Board of Directors of the Responsible Entity, in relation to the use of financial instruments to manage financial risks. The Responsible Entity continually reviews the Trusts' exposures and updates its treasury policies and procedures. The Trust does not trade in derivative instruments for speculative purposes. Even though derivative financial instruments are entered into for the purpose of providing the Trust with an economic hedge, the Trusts' have elected not to apply hedge accounting under AASB 139: Financial Instruments: Recognition and Measurement for interest rate swaps and foreign exchange contracts. Accordingly, derivatives including interest rate swaps, interest rate component of cross currency swaps and foreign exchange contracts, are measured at fair value with any changes in fair value recognised in the Income Statements.

(ii) Embedded derivatives

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

(iii) Debt and equity instruments issued by the Trusts

Financial instruments issued by the Trusts 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 DXO 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 quarantee 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.

(v) Other financial assets

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

(f) Goods and services tax/value added tax

Revenues, expenses and capital assets are recognised net of any amount of Australian/New Zealand/Canadian 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 Statement 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.

Note 1. Summary of significant accounting policies (continued)

(g) 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 jurisdictions where foreign property is held (i.e United States, France, Germany, Canada, New Zealand).

DXO 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 the Trusts from DEXUS Industrial Properties Inc (US REIT) and DEXUS US 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 the Trusts (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.

DEXUS 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 15.82% from 1 January 2008 (this rate was 26.37% prior to 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 30%. 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 asset and the accounting carrying value at balance date.

DEXUS Canada Trust, a wholly owned Australian sub-trust of DIT, is liable for Canadian income tax on its Canadian taxable income at the rate of 25%. 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 Canadian real estate asset and the accounting carrying value at balance date.

Note 1. Summary of significant accounting policies (continued)

(g) Taxation (continued)

Tax consolidation

DXH is the head entity in the DXH tax consolidated group comprising DEXUS Funds Management Limited, DEXUS Property Services Pty Limited, DEXUS Financial Services Pty Limited and DEXUS Wholesale Property Limited. The implementation date for the tax consolidated group was 1 October 2004. During the year DEXUS CMBS Issuer Pty Limited was formed and joined the tax consolidated group. The entities within the DXH tax consolidated group entered into a Tax Sharing Deed and Tax Funding Deed on 29 June 2007 (effective 1 July 2006).

During the year, newly incorporated entities, DEXUS Finance No.2 Pty Limited and DEXUS Finance No.3 Pty Limited together with DEXUS Finance Pty Limited (DXF) formed the DXF tax consolidated group on 18 December 2008. DXF is the head entity of this tax consolidated group. The entities in the DXF tax consolidated group entered into a Tax Sharing Deed and Tax Funding Deed on 29 June 2009 (effective 18 December 2008).

In the opinion of the directors, the Tax Sharing Deeds limit the joint and several liability of the wholly-owned entities in the case of a default by the head entity.

For each of the consolidated tax groups, the head entity and the controlled entities continue to account for their own current and deferred tax amounts. These notional tax amounts are measured as if each entity in the tax consolidated group continues to be a stand alone taxpayer in its own right pursuant to the Tax Funding Deed.

Under the Tax Funding Deed, the wholly owned entities fully compensate the head entity for any current tax payable assumed and are compensated by the head entity for any current tax receivable. The funding amounts are determined by reference to the amounts recognised in the wholly owned entities' Financial Statements and are recognised as current intercompany receivables or payables.

(h) Distributions

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

(i) 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.

(j) 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.

(k) Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method, 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.

(I) Non-current assets (or disposal groups) held for sale and discontinued operations

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement.

Note 1. Summary of significant accounting policies (continued)

(m) 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 through profit and loss to reduce a measurement or recognition inconsistency.

(n) Property, plant and equipment

Property under development is carried at historical cost until the development is complete. All costs of development are capitalised against the property and are not depreciated. Upon completion of development, the assets are classified as investment property.

All other property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to its acquisition. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Trusts and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Income Statements during the financial period in which they are incurred.

Property under development and all other property, plant and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying amounts exceed their recoverable amounts (refer Note 1 (u)).

(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. Estimates for remaining useful lives are reviewed on a regular basis for all assets and are as follows:

Buildings (including fit-out) 5-50 years IT equipment 3-5 years

(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. Each valuation firm and its signatory valuer are appointed on the basis that they are engaged for no more than three consecutive valuations.

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. In addition, 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 1(i).

(q) Leasing fees

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

Note 1. Summary of significant accounting policies (continued)

(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 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 in the consolidated Income Statement. 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 Statement, while in the consolidated Financial Statements they reduce the carrying amount of the investment.

When the Trusts' 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) Business combinations

The purchase method of accounting is used for all business combinations, including business combinations involving entities or businesses under common control, regardless of whether equity instruments or other assets are acquired. 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 at acquisition date. The excess of the acquisition cost over the fair value of the Trusts' share of identifiable net assets acquired is recorded as goodwill (refer Note 1(v)). If the cost is less than the fair value of the Trusts' share of the identifiable 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, being the rate at which a similar borrowing could be obtained from an independent financier under comparative terms and conditions.

(u) Impairment of assets

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

Note 1. Summary of significant accounting policies (continued)

(v) Intangible assets

(i) Goodwill

As part of a business combination, 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 Statement as an expense.

(ii) Management rights

Management rights represent the asset management rights owned by the Trust which entitle it to management fee revenue from both finite and indefinite life trusts. Those rights that are deemed to have a finite useful life, are measured at cost and amortised using the straight-line method over their estimated useful lives which vary from six to 22 years.

(w) Financial assets and liabilities

(i) Classification

DXS has classified its financial assets and liabilities as follows:

Financial Asset/Liability	Classification	Valuation Basis	Reference
Cash and cash equivalents	Fair value through profit or loss	Fair value	Refer note 1(i).
Receivables	Loans and receivables	Amortised cost	Refer note 1(k).
Other financial assets	Loans and receivables	Amortised cost	Refer note 1(e).
Other financial assets	Fair value through profit or loss	Fair value	Refer note 1(m).
Pavables	Financial liability at amortised cost	Amortised cost	Refer note $1(x)$ .
Interest bearing liabilities	Financial liability at amortised cost	Amortised cost	Refer note $1(y)$ .
Derivatives	Fair value through profit or loss	Fair value	Refer note 1(e).

Financial assets and liabilities are classified in accordance with the purpose for which they were acquired.

(ii) Fair value estimation of financial assets and liabilities

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) is based on quoted market prices at the balance sheet date. The quoted market price used for financial assets held by the Trusts is the current bid 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 and cross currency swaps are calculated as the present value of the estimated future cash flows, the fair value of forward exchange rate contracts is determined using forward exchange market rates at the balance sheet date, and the fair value of interest rate option contracts are calculated as the present value of the estimated future cash flows taking into account the time value and implied volatility of the underlying instrument.

(x) Payables

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

(y) Interest bearing liabilities

Subsequent to initial recognition at fair value, net of transaction costs incurred, interest bearing liabilities are measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Income Statements over the period of the borrowings using the effective interest method. Interest bearing liabilities are classified as current liabilities unless the Trust has an unconditional right to defer the liability for at least 12 months after the reporting date.

(z) Employee benefits

(i) Wages, salaries and annual leave

Liabilities for employee benefits for wages, salaries and annual leave represent present obligations resulting from employees' services provided to reporting date, calculated at undiscounted amounts based on remuneration wage and salary rates that the Trusts expect to pay at reporting date including related on-costs, such as workers compensation, insurance and payroll tax.

(ii) Long service leave

The provision for employee benefits for long service leave represents the present value of the estimated future cash outflows, to be made resulting from employees' services provided to reporting date.

The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the rates attaching to national government bonds at reporting date which most closely match the term of the maturity of the related liabilities. The unwinding of the discount is treated as long service leave expense.

(aa) Earnings per unit

Earnings per unit are determined by dividing the net profit attributable to equity holders of the parent entity by the weighted average number of ordinary units outstanding during the year, adjusted for bonus elements in units issued during the year.

(ab) Foreign currency

Items included in the Financial Statements of the Trust 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 Trust.

(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, New Zealand, France, Germany and Canada. These operations have a functional currency of US Dollars, NZ Dollars, Euros and Canadian Dollars respectively, which are translated into the presentation currency.

The assets and liabilities of the foreign operations are translated at exchange rates prevailing at the reporting date. Income and expense items are translated at the average exchange rates for the period. 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 are treated as assets and liabilities of the foreign operation and translated at exchange rates prevailing at the reporting date.

(ac) 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.

(ad) 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.

Note 1. Summary of significant accounting policies (continued)

(ae) New accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2009 reporting period. Our assessment of the impact of these new standards and interpretations is set out below:

AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from $(i)$ AASB 8 are effective for annual reporting periods commencing on or after 1 January 2009. AASB 8 will result in a significant change in the approach to segment reporting, as it requires adoption of a "management approach" to reporting on financial performance. The information being reported will be based on what the key decision-makers use internally for evaluating segment performance and deciding how to allocate resources to operating segments. The Trusts intend to apply the revised standard from 1 July 2009. Application of AASB 8 may result in different segments, segment results and different type of information being reported in the segment note of the financial report. However, it will not affect any of the amounts recognised in the Financial Statements.
$(ii)$ Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101. The revised AASB 101 that was issued in September 2007 is applicable for annual reporting periods beginning on or after 1 January 2009. It requires the presentation of a statement of comprehensive income and makes changes to the Statements of Changes in Equity but will not affect any of the amounts recognised in the Financial Statements. If an entity has made a prior period adjustment or a reclassification of items in the Financial Statements, it will also need to disclose a third balance sheet (Statement of Financial Position), this one being as at the beginning of the comparative period. The Trusts intend to apply the revised standard from 1 July 2009.
$(iii)$ Revised AASB 123 Borrowing Costs and AASB 2007-6 Amendments to Australian Accounting Standards arising from AASB 123 [AASB 1, AASB 101, AASB 107, AASB 111, AASB 116 & AASB 138 and Interpretations 1 & 12]. The revised AASB 123 is applicable to annual reporting periods commencing on or after 1 January 2009. It has removed the option to expense all borrowing costs and - when adopted - will require the capitalisation of all borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset. There will be no impact on the Financial Report of the Trusts, as the Trusts already capitalise borrowing costs relating to qualifying assets.
Revised AASB 3 Business Combinations, AASB 127 Consolidated and Separate Financial Statements and AASB $(iv)$ 2008-3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127. Revised accounting standards for business combinations and Consolidated Financial Statements were issued in March 2008 and are operative for annual reporting periods beginning on or after 1 July 2009, but may apply earlier. The Trusts will apply the revised standards from 1 July 2009. However, the new rules generally apply only prospectively to transactions that occur after the application date of the standard. Their impact will therefore depend on whether the Trusts will enter into any business combinations or other transactions that affect the level of ownership held in the controlled entities in the year of initial application.

The revised AASB 3 continues to apply the acquisition method to business combinations, but with some significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments classified as debt subsequently remeasured through the income statement. There is a choice on an acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair value or at the non-controlling interest's proportionate share of the acquiree's net assets. All acquisition-related costs must be expensed. This is different to the Trusts' current policy which is set out in note 1(t) above. For example, under the new rules:

The revised AASB 127 requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the entity is remeasured to fair value, and a gain or loss is recognised in profit or loss.

Note 1. Summary of significant accounting policies (continued)

(ae) New accounting standards and interpretations (continued)

$(v)$ AASB 2008-7 Amendments to Australian Accounting Standards - Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate (effective 1 July 2009). In July 2008, the AASB approved amendments to AASB 1 First-time Adoption of International Financial Reporting Standards and AABS 127 Consolidated and Separate Financial Statements. The Trusts will apply the revised rules prospectively from 1 July 2009. After that date, all dividends received from investments in subsidiaries, jointly controlled entities or associates will be recognised as revenue, even if they are paid out of pre-acquisition profits, but the investments may need to be tested for impairment as a result of the dividend payment. Under the entity's current policy, these dividends are deducted from the cost of the investment. Furthermore, when a new intermediate parent entity is created in internal reorganisations it will measure its investment in subsidiaries at the carrying amounts of the net assets of the subsidiary rather than the subsidiary's fair value.
$(vi)$ AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project In July 2008, AASB 2008-5 was issued comprising amendments to various standards arising from the annual improvements project. The amendments are effective for reporting periods beginning on or after 1 January 2009. The following amendments are considered relevant to the Trusts:

AASB 101 (Amendment) Presentation of Financial Statements

The amendment clarifies that some rather than all financial assets and liabilities classified as held for trading in accordance with AASB 139 Financial Instruments: Recognition and Measurement are examples of current assets and liabilities respectively. The Trusts will apply the AASB 139 (Amendment) from 1 July 2009. This clarification will enable the Trusts to distinguish between current and non current derivative balances.

AASB 119 (Amendment) Employee Benefits (effective from 1 January 2009)

The amendments relevant to the Trusts includes

. The distinction between short-term and long-term employee benefits will be based on whether benefits are due to be settled within or after 12 months of employee service being rendered.

• AASB 137 Provisions, Contingent Liabilities and Contingent Assets requires contingent liabilities to be disclosed, not recognised. AASB 119 has been amended to be consistent.

The Trusts will apply the AASB 119 (Amendment) from 1 July 2009. There will be no impact on the amounts recognised in the Financial Statements.

AASB 123 (Amendment) Borrowing Costs

The definition of borrowing costs has been amended so that interest expense is calculated using the effective interest method defined in AASB 139 Financial Instruments: Recognition and Measurement. This eliminates the inconsistency of terms between AASB 139 and AASB 123. The Trusts will apply the AASB 123 (Amendment) prospectively to the capitalisation of borrowing costs on qualifying assets from 1 July 2009. This is not expected to have any impact on the amounts recognised in the entity's Financial Statements.

AASB 127 (Amendment) Consolidated and Separate Financial Statements (effective from 1 January 2009)

Where an investment in a subsidiary that is accounted for under AASB 139 Financial Instruments: Recognition and Measurement is classified as held for sale under AASB 5 Non-current Assets Held for Sale and Discontinued Operations, AASB 139 would continue to be applied. The amendment will not have an impact on the Trusts' operations because it is the Trusts' policy for an investment in subsidiary to be recorded at fair value through profit or loss in the standalone accounts of each entity.

AASB 128 (Amendment) Investments in Associates (and consequential amendments to AASB 132 Financial

Instruments: Presentation and AASB 7 Financial Instruments: Disclosures) (effective from 1 January 2009) An investment in associate is treated as a single asset for the purposes of impairment testing and any impairment loss is not allocated to specific assets included within the investment, for example, goodwill. Reversals of impairment are recorded as an adjustment to the investment balance to the extent that the recoverable amount of the associate increases. The Trusts will apply the AASB 128 (Amendment) to impairment tests related to investment in associates and any related impairment losses from 1 July 2009. Due to the prospective application this will not affect any of the amounts recognised at 30 June 2009.

AASB 131 (Amendment) Interests in Joint Ventures (and consequential amendments to AASB 132 and AASB 7) (effective from 1 January 2009)

Where an investment in a joint venture is accounted for in accordance with AASB 139, only certain, rather than all, disclosure requirements in AASB 131 need to be made in addition to disclosures required by AASB 132 and AASB 7. This amendment will not have an impact on the Trusts' operations.

Note 1. Summary of significant accounting policies (continued)

(ae) New accounting standards and interpretations (continued)

AASB 136 (Amendment) Impairment of Assets

Where fair value less costs to sell is calculated on the basis of discounted cash flows, disclosures equivalent to those for a value-in-use calculation should be made. The Trusts will apply the AASB 136 (Amendment) and provide the required disclosure where applicable for impairment tests from 1 July 2009. This is not expected to have an impact on the amounts recognised in the Trusts' Financial Statements.

AASB 138 (Amendment) Intangible Assets (effective from 1 January 2009)

A prepayment may only be recognised in the event that payment has been made in advance of obtaining a right of access to goods or a receipt of services. Therefore to the extent that the expenditure is incurred to provide future economic benefits to an entity, but no intangible asset or other asset is acquired or created that can be recognised, the entity recognises such expenditure as an expense when it has a right to access the goods or when it receives the services. The Trusts will apply the AASB 138 (Amendment) from 1 July 2009, however this is not expected to have an impact on the amounts recognised in the Trusts' Financial Statements.

AASB 140 (Amendment) Investment Property (and consequential amendments to AASB 116)

Under this amendment, property that is under construction or development for future use as investment property falls within the scope of AASB 140. Where the fair value model is applied, such property is, therefore, measured at fair value. However, where fair value of investment property under construction is not reliably measurable, the property is measured at cost until the earlier of the date construction is completed and the date at which fair value becomes reliably measurable. The Trusts will apply the AASB 140 (Amendment) from 1 July 2009.

AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project (effective 1 July 2009). The amendments to AASB 5 Discontinued Operations and AASB 1 First-Time Adoption of Australian-Equivalents to International Financial Reporting Standards are part of the IASB's annual improvements project published in May 2008. They clarify that all of a subsidiary's assets and liabilities are classified as held for sale if a partial disposal sale plan results in loss of control. Relevant disclosures should be made for this subsidiary if the definition of a discontinued operation is met. The Trusts will apply the amendments prospectively to all partial disposals of subsidiaries from 1 July 2009.

AASB 2009-2 Amendments to Australian Accounting Standards - Improving Disclosures about Financial $(vii)$ Instruments (effective for annual periods beginning on or after 1 January 2009) In April 2009, the AASB published amendments to AASB 7 Financial Instruments: Disclosure to improve the information that entities report about their liquidity risk and the fair value of their financial instruments. The amendments require fair value measurement disclosures to be classified into a new three-level hierarchy and additional disclosures for items whose fair value is determined by valuation techniques rather than observable market values. The AASB also clarified and enhanced the existing requirements for the disclosure of liquidity risk of derivatives. The Trusts will apply the amendments from 1 January 2009. They will not affect any of the amounts recognised in the Financial Statements.

$(viii)$ AASB 2009-3 Amendments to Australian Accounting Standards - Embedded Derivatives (effective for annual periods ending on or after 30 June 2009) The amendments made by the AASB to Interpretation 9 and AASB 139 clarify that where a financial asset is reclassified out of the 'at fair value through profit or loss' category, all derivatives embedded in that asset have to be assessed and, if necessary, separately accounted for in financial statements. The Trusts will apply the amendments retrospectively for the financial half year ending 31 December 2009. There will be no impact on the Trusts' financial statements as at 31 December 2009 as it has not reclassified any financial assets out of the 'at fair value through profit or loss' category.

Note 2. Property revenue

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$000	\$'000
Rent and recoverable outgoings	733,800	682,038	143.019	146,070
Incentive amortisation	(47, 242)	(42,034)	(5, 811)	(5,822)
Other revenue	21,948	24,827	2.298	1,942
Total property revenue	708,506	664,831	139.506	142,190

Note 3. Finance costs

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Interest paid/payable	164.053	183.164	(9.224)
Interest (received)/paid to related parties	٠		(3,567)	10,429
Amount capitalised	(35,050)	(17,949)	(8,020)	(6, 141)
Other finance costs	5,647	3,281	122	237
Net fair value loss of interest rate swaps	249,591	44,737	6.667	19,035
Total finance costs	384,241	213,233	(14.022)	23,560

The average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.60% (2008: 6.40%).

Note 4. Income tax

(a) Income tax expense/(benefit)

		Consolidated
	2009	2008
	\$'000	\$'000
Current tax	7.079	4,256
Deferred tax	5.458	(5,798)
Income tax expense/(benefit)	12,537	(1, 542)
Deferred income tax expense included in income tax expense comprises:
(Increase) in deferred tax assets	(298)	(6, 135)
Increase in deferred tax liabilities	5,756	337
	5,458	(5,798)

(b) Reconciliation of income tax benefit to net (loss)/profit

		Consolidated
	2009	2008
	\$'000	\$'000
(Loss)/profit before tax	(1,575,652)	453,163
Loss/(profit) not subject to income tax (note $1(g)$ )	1,489,557	(492,953)
	(86,095)	(39, 790)
Prima facie tax benefit at the Australian tax rate of 30% (2008: 30%)	(25, 829)	(11,937)
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Depreciation and amortisation	(1, 816)	(1,640)
Impairment	22,371
Share of net profits of associates		700
Revaluation of investment properties	16,125	13,445
Previously unrecognised tax losses now recognised	(1,802)	(641)
Reversal of recognised tax loss	3,470
Tax offsets from franked dividends		(1, 567)
Sundry items	18	25
	38,366	10,322
Under/(over) provision in prior year		73
Income tax benefit	12,537	(1, 542)

(c) Withholding tax expense

Withholding tax income of \$132,773,000 (2008: \$9,444,000 expense) includes \$135,183,000 (2008: \$7,236,000 expense) of deferred tax benefit 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 benefit arises due to the tax depreciation and revaluation of US investment properties as well as mark-to-market of derivatives.

Note 5. Other expenses

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Audit and other fees	3.096	3,232	591	504
Custodian fees	532	489	124	136
Legal and other professional fees	1,305	1,295	80	260
Registry costs and listing fees	755	511	206	161
Occupancy expenses	267	463	۰
Administration expenses	4,557	1.716	$\blacksquare$
Other staff expenses	1,881	1.015	$\blacksquare$
RREEF management fees	3,792	2,828	۰
Other expenses	5,300	4.343	621	152
Total other expenses	21,485	15,892	1.622	1,213

Note 6. Audit and advisory fees

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

	Consolidated			Parent Entity
	2009	2008	2009	2008
	S	S	S	S
(a) Assurance services
PwC audit and review of financial reports and other
audit work under the Corporations Act 2001	1,353,129	1,262,986	355.252	385,980
PwC fees paid in relation to outgoings audit ¹	61.675	171,118	42,277	24,206
Remuneration for audit services to PwC	1,414,804	1,434,104	397.529	410,186
Fees paid to non-PwC audit firms	820,195	885,981
Total remuneration for assurance services	2,234,999	2,320,085	397.529	410,186
(b) Taxation services
Fees paid to PwC Australia	376,970	518,070	185,900	117,359
Fees paid to PwC US	330.022	269,105
Remuneration for taxation services to PwC	706.992	787,175	185,900	117,359
Fees paid to non-PwC taxation firms	216,113	295,648	50,613	370
Total remuneration for taxation services $^{\text{2}}$	923.105	1,082,823	236,513	117,729
Total audit and taxation fees ¹	3,158,104	3,402,908	634.042	527,915
(c) Fees paid to PwC for transaction services
PwC assurance services in respect of capital raisings	575,000		211,916
PwC taxation services	195,990		74,840
PwC other transaction and advisory fees	262,100		57.071
Total transaction service fees	1,033,090	u.	343,827
Total audit, taxation and transaction service fees	4,191,194	3,402,908	977,869	527,915

1 Fees paid in relation to outgoing audits are included in property expenses. Therefore total audit and taxation fees included in other expenses is \$3,096 thousand.

2 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 Trusts.

Page 41 of 97

Note 7. Current assets - cash and cash equivalents

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Cash at bank	74.159	88,516	27.268	31.004
Short-term deposits	10.686	10,698	$\tilde{\phantom{a}}$
Total current assets - cash and cash equivalents	84,845	99.214	27,268	31,004

Note 8. Current assets - receivables

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Rent receivable	20,815	12,254	2,232	1,802
Less: provision for doubtful debts	(4, 487)	(1,487)	(397)	(377)
Total rental receivables	16.328	10.767	1,835	1,425
Fee receivable	8.324	11,907
Other receivables from related parties			13,107	4,700
GST receivables			1,229
Interest receivable	67	290
Other receivables	11.097	13,463	1,581	2,294
Total other receivables	19,488	25,660	15,917	6,994
Total current assets - receivables	35.816	36,427	17,752	8,419

Note 9. Non-current assets classified as held for sale

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Investment property held for sale	43.054	$\overline{\phantom{a}}$	20,800
Property, plant and equipment held for sale	55.000	$\overline{\phantom{a}}$	$\blacksquare$	$\overline{\phantom{a}}$
Total non-current assets classified as held for sale	98.054	$\overline{\phantom{0}}$	20,800

As part of the asset sale program announced on 21 April 2009, certain assets have been classified as non-current assets held
for sale and are carried at fair value less cost to sell.

The investment properties classified as held for sale comprise 3-7 Bessemer Street, Blacktown, NSW (\$9.1 million); 68 Hasler Road, Herdsman, WA (\$11.3 million), Redwood Gardens Industrial Estate, Dingley, VIC (\$20.8 million) and Nordstraße 1, Lobau (\$1.9 million).

The property, plant and equipment held for sale comprises of 343 George St, Sydney (\$55 million).

Refer note 35 for further discussion regarding these forthcoming disposals.

Note 10. Loans with related parties

	Consolidated			Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$000
Non-current assets - loan with related parties
Intercompany loans ¹	$\blacksquare$	-	248,366	119.533
Intercompany loans with entities within DXS ²	$\blacksquare$	۰	160,217
Total non-current assets - loan with related parties	$\blacksquare$		408.583	119,533
Current liabilities - loan with related parties
Non-interest bearing loans with the Trusts ³	$\blacksquare$	۰	34,332	34.332
Total current liabilities - loan with related parties			34.332	34,332

1 The intercompany loans represent interest-bearing loans with DEXUS Finance Pty Limited (DXF) to or from the Trusts. These loan balances eliminate on consolidation.

2 Interest bearing loan with entities within DXS.

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

Note 11. Derivative financial instruments

		Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Current assets
Interest rate swap contracts	122,293	138,359	68,455	34,470
Cross currency swap contracts	79,786	42,141	27,605	30,567
Forward foreign exchange contracts	3,412	10,662	1,745	5,022
Total current assets - derivative financial instruments	205,491	191.162	97,805	70.059
Current liabilities
Interest rate swap contracts	301,203	95,602	91,397	42,539
Cross currency swap contracts	84,709		57,896
Forward foreign exchange contracts	312	1,476	252	890
Total current liabilities - derivative financial instruments	386,224	97,078	149,545	43,429
Net current derivative financial instruments	(180.733)	94,084	(51,740)	26,630

Refer Note 30 for further discussion regarding derivative financial instruments.

Note 12. Current assets - other

	Consolidated			Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Prepayments	13.618	9.372	2.731	1,307
Total current assets - other	13,618	9.372	2.731	1.307

NOTES TO THE FINANCIAL STATEMENTS (continued FOR THE YEAR ENDED 30 JUNE 2009

Note 13. Non-current assets - investment properties

(a) Properties

(a) Properties	Ownership	date	all additions Acquisition Cost including	Independent valuation date	Independent valuation	Independent valuer	Consolidated book value 30
					amount		Jun 2009
Held by parent entity			\$'000		\$'000		\$1000
	100%	May 1990	81,060	Jun 2008	99,000	ම	91,200
Kings Park Industrial Estate, Bowmans Road, Marayong, NSW Target Distrbution Centre, Lot 1, Tara Avenue, Altona North, VIC	100%	Oct 1995	25,555	Dec 2007	37,500	ම	30,000
Axxess Corporate Park, 164 - 180 Forster Road, 11 & 21 - 45 Gilby
Road, 307 - 355 Ferntree Gully Road, Mount Waverley, VIC	100%	Oct 1996	158,320	Jun 2008	192,650		180,600
Knoxfield Industrial Estate, 20 Henderson Road, Knoxfield, VIC	100%	aeet puA	31,081	Jun 2009	33,000	$\widehat{a}$	33,000
12 Frederick Street, St Leonards, NSW	100%	Jul 2000	25,710	Jun 2009	33,100	ම	33,100
40 Talavera Road, North Ryde, NSW	100%	Oct 2002	33,112	Jun 2009	29,200	€	29,200
2 Alspec Place, Eastern Creek, NSW	100%	Mar 2004	23,634	Dec 2008	24,800	ල	23,300
and Lot 4, Redwood Gardens Industrial Estate Stages 3, 5, 6 & 7
Dingley, Vic ³	100%	Dec 1994	21,177	Jun 2008	30,000	จ
44 Market Street, Sydney, NSW	100%	Sep 1987	181,679	Jun 2008	225,000	⊙	190,000
8 Nicholson Street, Melbourne, VIC	100%	Nov 1993	70,347	Jun 2009	85,000	⊜	85,000
30 George Street, Parramatta, NSW	100%	Nay 1997	81,921	Dec 2008	90,000	$\widehat{\mathbf{e}}$	72,000
Flinders Gate Complex, 172 Flinders Street & 189 Flinders Lane,
Melbourne, VIC	100%	Mar 1999	16,413	Dec 2008	25,150	€	22,000
383 - 395 Kent Street, Sydney, NSW	100%	Sep 1987	106,282	Jun 2008	153,000	€	120,000
14 Moore Street, Canberra, ACT**	100%	May 2002	38,277	Dec 2007	49,500	$\widehat{a}$	41,000
Sydney CBD Floor Space	100%	Jul 2000	215	n/a			196
Westfield Whitford City Shopping Centre Marmion & Whitfords
Avenue, Hillarys, WA ²	50%	Oct 1984	132,180	Jun 2007	252,350		245,350
Westfield Whitfords Avenue Lot 6 Endeavour Road, Hillarys, WA ²	50%	Dec 1992	5,506	Jun 2007	24,650		24,650
34 - 60 Little Collins Street, Melbourne, VIC**	100%	Nov 1984	16,845	Dec 2008	40,900		36,000
32 - 44 Flinders Street, Melbourne, VIC	100%	Jun 1998	21,773	Dec 2008	38,800		34,000
Flinders Gate Carpark, 172 - 189 Flinders Street, Melbourne, VIC	100%	Mar 1999	47,741	Dec 2008	54,600		49,000
383 - 395 Kent Street, Sydney, NSW	100%	Sep 1987	30,745	Jun 2008	65,000	EEEEE	58,000
John Martin's Carpark & Retail Plaza Joint Venture	19 ₆	Sep 1994		n/a

Total parent entity

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

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

3 This asset has been transferred to non current assets classified as hearted for sele (refer note 9 ) as its carrying amount will be recovered principally through an expected sale transaction rather than through continuin

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

$\ddot{\phantom{0}}$

book value 30 June 2008 \$'000

104,000
34,200

192,650
35,300
37,000
33,300
24,800

30,250
225,000
99,000
92,000

21,350
153,000
46,500
2,174

255,350 24,650
41,000 32,592

39,263
65,000
100

Sep 1987
Sep 1994 Mar 1999

John Martin's Carpark & Retail Plaza Joint Venture

1,589,089

1,397,596

583,200

1,149,573

Consolidated

(a) Properties (continued)	Ownership	Acquisition Cost including dale	all additions	Independent valuation date	Independent amount valuation	Independent valuer	30 June 2009 Consolidated book value	book value 30 June 2008 Consolidated
Held by other stapled entities			\$'000		\$'000		\$'000	\$'000
79-99 St Hilliers Road, Auburn, NSW	60%	Sep 199,	40,659	Jun 2009	40,000	$\circ$	40,000	47,281
3 Brookhollow Avenue, Baulkham Hills, NSW	100%	Dec 2002	36,739	Jun 2008	44,800		41,000	44,800
1 Garigal Road, Belrose, NSW	100%	Dec 1998	23,693	Jun 2009	24,000		24,000	28,800
2 Minna Close, Belrose, NSW	100%	Dec 1998	36,316	Jun 2009	27,600		27,600	33,000
114 - 120 Old Pittwater Road, Brookvale, NSW	100%	Sep 1997	34,995	Dec 2008	48,000	EEEE®	44,000	51,500
145 - 151 Arthur Street, Flemington, NSW	100%	Sep 1997	25,146	Jun 2009	30,750		30,750	35,000
436 - 484 Victoria Road, Gladesville, NSW	100%	Sep 1997	28,778	Jun 2009	46,000	€	46,000	55,000
1 Foundation Place, Greystanes, NSW	100%	Dec 2002	39,287	Jun 2008	48,000	ିତ୍ର	41,000	48,000
5 - 15 Roseberry Avenue & 25 - 55 Rothschild Avenue, Rosebery,		Apr 1998 &
NSW	100%	Oct 2001	74,996	Jun 2008	102,700	ರ	88,000	102,700
10 - 16 South Street, Rydalmere, NSW	100%	Sep 1997	37,311	Dec 2008	44,000	⊙	41,000	48,000
19 Chifley Street, Smithfield, NSW	00%	Dec 1998	12,277	2008 $\overline{5}$	18,350	Ξ	16,300	18,350
Pound Road West, Dandenong, VIC	00%	Jan 2004	73,847	2007 . Pec	81,550	ම	77,000	91,486
352 Macaulay Road, Kensington, VIC	00%	Oct 1998	7,696	2007 . Pec	10,000	.তি	8,205	9,100
DEXUS Industrial Estate, Boundary Road, Laverton North, VIC	100%	Jul 2002	103,063	2009 $\overline{5}$	102,400	ම	102,400	81,400
250 Forest Road, South Lara, VIC	100%	Dec 2002	37,816	Jun 2008	44,750	ିତ୍ର	48,758	44,750
15 - 23 Whicker Road, Gillman, SA	100%	Dec 2002	20,283	Dec 2008	26,800	$\circledcirc$	25,700	25,800
25 Donkin Street, Brisbane, QLD	100%	Dec 1998	19,567	Dec 2007	35,600	⊕ ⊜	32,000	35,800
52 Holbeche Road, Arndell Park, NSW	100%	Jul 1998	11,392	Jun 2008	13,500		11,300	13,500
3 - 7 Bessemer Street, Blacktown, NSW	100%	Jun 1997	11,208	Dec 2008	9,850	$\widehat{\mathbf{a}}$		11,100
30 - 32 Bessemer Street, Blacktown, NSW	100%	Vier _Vel v	12,479	Dec 2008	16,300	ම	14,900	19,044
27 - 29 Liberty Road, Huntingwood, NSW	100%	Jul 1998	8,112	2008 i Lig	9,650	ত্ৰি	8,000	9,650
154 O'Riordan Street, Mascot, NSW	100%	Jun 1997	11,202	2008 Dec	15,000	∈€ຣ	13,500	15,000
1 Talavera Road, North Ryde, NSW	100%	Jun 2002	136,004	2008 $\overline{5}$	160,000		130,000	160,000
DEXUS Industrial Estate, Egerton Street, Silverwater, NSW	100%	Vlay 1997	37,517	Dec 2007	50,000		40,000	48,200
239 - 251 Woodpark Road, Smithfield, NSW	100%	Vlay 1997		2008 Sec	6,200	ূন্ত		6,800
40 Biloela Street, Villawood, NSW	100%	1997 1997	6,889	2008 oec.	7,000	Ξ	6,500	8,100
114 Fairbank Road, Clayton, VIC	Pool	1997 1997	15,878	2008 . ور	15,600	ල	14,000	16,200
30 Bellrick Street, Acacia Ridge, QLD	100%	Jun 1997	13,291	2008 $\overline{5}$	22,700	$\widehat{\mathbb{C}}$	20,000	22,700
68 Hasler Road, Herdsman, WA	100%	S661 MM	9,743	Jun 2008	17,500	€		17,500
Zone Industrial Epone II, Epone	100%	Jul 2006	12,893	Jun 2009	5,990		5,990	10,417
32 avenue de l'Oceanie, Villejust	100%	Jul 2006	20,535	Jun 2009	9,598		9,598 8,851	13,533
21 rue du Chemin Blanc, Champlan	100%	Jul 2006	24,320	Jun 2009	8,851			16,913

1 This asset has been transferred to non current assets classified as held for sale (refer note 9) as its carrying amount will be recovered principally through an expected sale transaction rather than through continuing us

Page 45 of 97

DEXUS DIVERSIFIED TRUST	NOTES TO THE FINANCIAL STATEMENTS (continue	FOR THE YEAR ENDED 30 JUNE 2009

(a) Properties (continued)	Ownership	date	all additions Acquisition Cost including	Independent valuation date	Independent amount valuation	Independent valuer	Consolidated book value 30 June 2009	Consolidated book value 30 June 2008
Held by other stapled entities (continued)			\$'000		\$'000		\$1000	\$'000
I9 rue de Bretagne, Saint-Quentin Fallavier	100%	Jul 2006	24,308	lun 2009	9,755		9,755	18,389
RN 19 ZAC de L'Ormes Road, Servon (1)	100%	Jul 2006	31,821	Jun 2009	15,528		15,528	21,867
m Holderbusch 3, Industriestraße, Sulmstraße, Ellhofen - RN 19 ZAC de L'oOrmes Road, Servon (2)	100%	2006 $\bar{z}$	10,872	Jun 2009	5,286	εe	5,286	7,923
Weinsberg	$00\%$	Dec 2006	25,319	Jun 2009	21,753		21,753	23,376
Schillerstraße 51 Ellhofen	$00\%$	2006 Dec:	20,972	Jun 2009	16,554		16,554	19,537
Schillerstraße 42, 42a, Bahnhofstraße 44, 50 Ellhofen	$00\%$	2006 Sec	13,168	Jun 2009			9,120	12,156
Im Gewerbegebiet 18 Friedewald	100%	2006 Dec:	8,606	Jun 2009	9,120 5,869		5,869	6,611
Im Steinbruch 4, 6, Knetzgau	100%	2006 Dec'	16,752	Jun 2009	13,737		13,737	17,520
Carl-Leverkus-Straße 3-5, Winkelsweg 182-184, Langenfeld	100%	2006 . Dec	16,774	Jun 2009	12,285	∈	12,285	15,059
Schneiderstraße 82, Langenfeld 3	100%	2006 bec.	9,634	Jun 2009	8,016		8,016	8,809
Über der Dingelstelle, Langenweddingen	100%	2006 Dec:	12,144	Jun 2009	7,833	εe	7,833	10,728
Nordstraße 1, Lobau	100%	2006 oe O	2,045	Jun 2009	1,904	≘		1,427
Former Straße 6, Unna	100%	2006 oe. Dec	27,708	Jun 2009	22,953	€	22,953	27,297
Niedesheimer Straße 24, Worms	100%	2006 oe O	6,644	Jun 2009	6,129	ε	6,129	6,578
iverpooler-/ Kopenhagener-/ Osloer Straße, Duisburg	100%	2006 oec. O	32,840	Jun 2009	25,535		25,535	33,153
TheodorStraße, Düsseldorf	100%	2006 ်မှု ၁၉	27,152	Jun 2009	20,544	$\epsilon$	20,544	25,509
Bremer Ring, Hansestraße, Berlin-Wustermark	loo%	Dec 2006	17,747	lun 2009	13,893		13,893	17,142
13201 South Orange Avenue, Orlando	100%	Jun 2007	23,635	lun 2009	30,441	€	30,441	30,646
8574 Bostron Church Road, Milton, Ontario, Canada	100%	2007 9e C	75,962	lun 2009	55,017	ε	55,017	70,304
Governor Philip Tower & Governor Macqaurie Tower Office Complex,
1 Farrer Place, Sydney, NSW ¹	50%	Dec 1998	193,817	Dec 2008	680,000	ত্ত্ৰ	515,000	744,993
45 Clarence Street, Sydney, NSW	100%	Dec 1998	22,062	Jun 2009	250,000		250,000	290,163
309 - 321 Kent Street, Sydney, NSW	50%	Dec 1998	171,222	Dec 2008	199,250		177,000	210,483
1 Margaret Street, Sydney, NSW	100%	Dec 1998	144,899	Dec 2007	200,000		170,000	94,000
Victoria Cross 60 Miller Street, North Sydney, NSW	100%	Dec 1998	111,984	Dec 2008	124,800		120,000	110,068
The Zenith, 821 - 843 Pacific Highway, Chatswood, NSW ¹	50%	Dec 1998	110,436	Jun 2007	130,000	oocecee	110,000	130,000
Woodside Plaza, 240 St Georges Terrace, Perth, WA	100%	Jan 2001	240,094	Jun 2008	446,500		100,000	446,500
30 The Bond, 30 - 34 Hickson Road, Sydney, NSW	100%	Vlay 2002	117,986	Jec 2008	170,000		150,000	179,036
Southgate Complex, 3 Southgate Avenue, Southgate, VIC	100%	Aug 2000	368,453	Jun 2009	340,000	εe	340,000	370,000
201 - 217 Elizabeth Street, Sydney, NSW ¹	50%	2000 Aug	120,259	Jun 2009	140,000		140,000	164,130

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

DEXUS DIVERSIFIED TRUST	NOTES TO THE FINANCIAL STATEMENTS (continued	FOR THE YEAR ENDED 30 JUNE 2009

(a) Properties (continued)	Ownership	date	all additions Acquisition Cost including	Independent valuation date	Independent valuation amount	Independent valuer	Consolidated book value 30 June 2009	book value Consolidated 30 June 2008
Held by other stapled entities (continued)			\$'000		\$'000		$\frac{2000}{5}$	\$000
Australia Square Complex, 264 - 278 George Street, Sydney, Garema Court, 140 - 180 City Walk, Civic, ACT **	100%	Aug 2000	44,095	Vlar 2009	50,600	€	48,000	60,000
NSW ¹	50%	Aug 2000	211,049	Jec 2007	312,500	ତ	267,000	303,000
Lumley Centre, 88 Shortland Street, Auckland, New Zealand ²	ğ	2005 Sep?	91,155	Jun 2008	124,718	ε	104,603	122,928
3765 Atlanta Industrial Drive, Atlanta	$\delta$	2004 Sep?		2008 $\ddot{5}$	4,571	$\widehat{\mathcal{Q}}$		4,571
7100 Highlands Parkway, Atlanta	ğ	2004 Sep:	15,300	Jun 2009	13,680	$\widehat{\mathfrak{G}}$	13,680	13,401
Town Park Drive, Atlanta	$100\%$	2004 $\frac{1}{2}$	6,848	Jun 2009	8,257	$\circledcirc$	8,257	8,934
Williams Drive, Atlanta	ioo%	POOS deS	10,445	Jun 2009	8,874	$\circledcirc$	8,874	10,285
Stone Mountain, Atlanta	100%	POOS des	7,601	Jun 2009	6,778	$\widehat{c}$	6,778	6,233
MD Food Park, Baltimore		Sep 2004	20,569	Jun 2009	23,170	$\odot$	23,170	24,102
West Nursery, Baltimore		Sep 2004	8,308	Jun 2009 8009 nul	8,997	$\odot$	8,997	9,038
Cabot Techs, Baltimore	% 100% 100%	POOS deS	21,769		30,811	$\widehat{c}$	30,811	30,646
9112 Guildford Road, Baltimore		POOS des	8,502	Jun 2009	9,860	$\widehat{\circ}$	9,860	9,557
8155 Stayton Drive, Baltimore	100%	2004 Sep:	7,282	Jun 2009	9,613	$\widehat{\circ}$	9,613	9,038
Patuxent Range Road, Baltimore	100%	2004 Sep:	12,477	Jun 2009	14,050	$\widehat{\mathbf{c}}$	14,050	13,609
Bristol Court, Baltimore	100%	Sep 2004	11,345	Jun 2009	12,817	$\odot$	12,817	12,466
NE Baltimore, Baltimore	100%	2004 Sep:	7,786	Jun 2009	8,874	$\odot$	8,874	9,038
1181 Portal, 1831 Portal and 6615 Tributary, Baltimore	100%	2005 $\overline{5}$	11,016	Jun 2009	13,064	$\widehat{\mathbf{c}}$	13,064	12,258
10 Kenwood Circle, Boston	ioo%	Sep 2004	11,156	Jun 2009	10,352	T	10,352	10,596
Commerce Park, Charlotte	100%	Sep 2004	7,892	Jun 2009	8,011		8,011	9,246
9900 Brookford Street, Charlottle	100%	Sep 2004	4,266	Jun 2009	4,190	ତ ତ		4,571
Westinghouse, Charlotte	100% 100%	Sep 2004	21,668	Jun 2009	22,184	ତ ତ	4,190 22,184	25,660
Airport Exchange, Cincinnati		2004 Sep:	4,569	Jun 2009	3,328		3,328	3,532
Empire Drive, Cincinnati	100%	2004 Sep:	6,573	lun 2009	6,902	$\widehat{c}$	6,902	6,960
International Way, Cincinnati	00%	2004 Sep?	10,846	Jun 2009	12,571	$\odot$	12,571	12,258
Kentucky Drive, Cincinnati	60%	2004 Sep S	11,749	Jun 2009	18,487	$\circledcirc$	18,487	15,791
Spiral Drive, Cincinnati	òo,	2004 နိ	6,294	Jun 2009	5,792	$\circledcirc$	5,792	6,233
Turtway Road, Cincinnati	čex	2004 $\frac{1}{2}$	5,614	Jun 2009	4,930	ତ ତ	4,930	5,298
124 Commerce, Cincinnati	60%	2004 Sep	2,454	Jun 2009	2,588		2,588	2,597
Kenwood Road, Cincinnati	60%	2004 Sep	19,844	Jun 2009	21,044	⊙	21,044	21,816

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

2 The property was externally valued at NZ\$155 million at 30 June 2008. The independent valuation amount of the property as at 30 June 2009 has been translated at the period end spot rate.
The title to all properties is fr

	NOTES TO THE FINANCIAL STATEMENTS (continued	FOR THE YEAR ENDED 30 JUNE 2009
DEXUS DIVERSIFIED TRUST

(a) Properties (continued)	Ownership	Acquisition Cost including date	all additions	Independent valuation date	Independent valuation amount	Independent valuer	book value 30 June 2009 Consolidated	book value 30 June 2008 Consolidated
Held by other stapled entities (continued)			000.\$		\$'000		\$'000	\$'000
Lake Forest Drive, Cincinnati	100 ^o	2004 Sep ₂	12,700	Jun 2009	2,848	⊙	2,848	14,648
World Park, Cincinnati	$100\%$	ЮOZ e Sep	13,232	2009 jan	10,722	⊙	10,722	13,245
Equity/Westbelt/Dividend, Columbus	100%	2004 Sep.	39,542	Jun 2009	36,973	⊙	36,973	41,554
2700 International Street, Columbus	$00\%$	2004 $rac{1}{20}$	4,762	Jun 2009	4,314	O	4,314	5,194
3800 Twin Creeks Drive, Columbus	ioo%	2004 $\frac{1}{2}$	4,917	Jun 2009	5,792	O	5,792	5,714
SE Columbus, Columbus	00%	2004 Sep:	14,270	Jun 2009	11,708	$\widehat{\circ}$	11,708	12,155
Arlington, Dallas	00%	2004 Sep:	9,096	Jun 2009	8,504	O	8,504	9,350
1900 Diplomat Drive, Dallas	100%	2004 Sep?	4,778	Jun 2009	3,697	O	3,697	4,259
2055 Diplomat Drive, Dallas	100%	2004 Sep?	3,820	Jun 2009	2,650	T	2,650	3,013
1413 Bradley Lane, Dallas	100%	2004 Sep:	3,216	Jun 2009	2,526	⊙	2,526	2,805
North Lake, Dallas	100%	2004 Sep?	10,129	Jun 2009	10,476	$\widehat{\circ}$	10,476	12,466
555 Airline Drive, Dallas	100%	2004 Sep:	6,743	Jun 2009	6,285	$\circledcirc$	6,285	6,649
455 Airline Drive, Dallas	100%	2004 Sep ₃	3,241	Jun 2009	3,451	$\circledcirc$	3,451	3,532
Hillguard, Dallas	100%	ROOK Sep?	9,125	Jun 2009	9,736	O	9,736	10,077
11011 Regency Crest Drive, Dallas	100%	2004 Sep.	7,498	Jun 2009	7,271	T	7,271	8,207
East Collins, Dallas	100%	2004 Sep?	3,707	Jun 2009	2,835	⊙	2,835	3,740
3601 East Plano/1000 Shiloh, Dallas	100%	2004 Sep S	13,593	Jun 2009	11,585	$\widehat{\circ}$	11,585	18,439
East Plano Parkway, Dallas	100%	2004 Sep:	22,146	Jun 2009	23,663	$\widehat{\circ}$	23,663	25,452
820-860 Avenue F, Dallas	100%	2004 Sep:	7,240	Jun 2009	5,854	⊙	5,854	6,233
10th Street, Dallas	100%	2004 Sep.	10,141	Jun 2009	10,722	$\widehat{\circ}$	10,722	11,116
Capital Avenue Dallas	100%	2004 Sep?	6,532	Jun 2009	5,916	⊙	5,916	6,545
CTC @ Valwood, Dallas	100%	2004 Sep?	3,557	Jun 2009	3,821	⊙	3,821	4,155
Brackbill, Harrisburg	100%	2004 Sep:	23,240	Jun 2009	16,039	⊙	16,039	21,623
Mechanicsburg, Harrisburg	100%	2004 Sep?	18,896	Jun 2009	21,937	$\widehat{\mathbf{c}}$	21,937	19,946
181 Fulling Mill Road, Harrisburg	OO%	2004 Sep?	9,414	Jun 2009	10,969	T	10,969	10,103
Glendale, Los Angeles	100%	2004 Sep?	53,509	Jun 2009	63,717	$\circledcirc$	63,717	73,759
14489 Industry Circle, Los Angeles	00%	2004 Sep?	7,514	lun 2009	9,490	$\circ$	9,490	12,523
14555 Alondra/6530 Altura, Los Angeles	100%	2004 Sep ^:	18,171	lun 2009	20,705	⊙	20,705	24,413
San Fernando Valley, Los Angeles	100%	2004 ခ ၁	15,168	Jun 2009	24,156	⊙	24,156	25,971
Memphis Industrial, Memphis	100%	2004 Sep:	9,741	Jun 2009	6,409	T	6,409	6,441
2950 Lexington Avenue S, Minneapolis	100%	2004 Sep:	9,386	Jun 2009	8,689	$\circledcirc$	8,689	9,360
Mounds View, Minneapolis	100%	2004 $\frac{1}{2}$	23,135	Jun 2009	19,534	$\widehat{\circ}$	19,534	22,024
6105 Trenton Lane, Minneapolis	100%	2004 Sep	8,153	2009 $\overline{5}$	8,504	ි	8,504	8,207

DEXUS DIVERSIFIED TRUST	NOTES TO THE FINANCIAL STATEMENTS (continued)	FOR THE YEAR ENDED 30 JUNE 2009

(a) Properties (continued)	Ownership	date	all additions Acquisition Cost including	Independent valuation date	Independent valuation	Independent valuer	Consolidated book value	book value Consolidated
Held by other stapled entities (continued)					amount		30 June 2009	30 June 2008
			000.\$		\$'000		\$'000	\$'000
8575 Monticello Lane, Minneapolis	ğ	2004 $\frac{1}{2}$	1,823	Jun 2009	2,095		2,095	2,182
7401 Cahill Road, Minneapolis	ioo%	2004 Sep:	3,562	Jun 2009	2,896	$\circledcirc$	2,896	3,272
CTC @ Dulles, Northern Virginia	Nool	2004 Sep:	25,554	Jun 2009	29,579	$\widehat{\mathbf{c}}$	29,579	30,646
Alexandria, Northern Virginia	iOO%	Sep 2004	47,388	Jun 2009	48,522	$\widehat{\mathbf{c}}$	48,522	54,153
Nokes Boulevard, Northern Virginia	100%	2004 Sep ₂	22,143	Jun 2009	52,379	$\widehat{\mathbf{c}}$	52,379	48,203
Guildford, Northern Virginia	100%	Sep 2004	18,218	Jun 2009	13,680	$\odot$	13,680	22,231
Beaumeade Telecom, Northern Virginia	100%	Sep 2004	33,682	Jun 2009	43,135	⊙	43,135	45,710
Orlando Central Park, Orlando	100%	Sep 2004	63,461	Jun 2009	67,802	⊙	67,802	76,252
'500 Exchange Drive, Orlando	100%	Sep 2004	5,669	Jun 2009	5,916	⊙	5,916	7,376
105-107 South 41st Avenue, Phoenix	100%	Sep 2004	14,559	Jun 2009	19,596	$\mathfrak{D}$	19,596	22,173
1429-1439 South 40th Avenue, Phoenix	100%	Sep 2004	10,346	Jun 2009	14,296	ତ୍ର	14,296	15,063
10397 West Van Buren St., Phoenix	100%	Sep 2004	8,853	Jun 2009	13,557	⊙	13,557	15,375
844 44th Avenue, Phoenix	100%	POOS deS	6,623	Jun 2009	8,504	$\widehat{\mathbf{c}}$	8,504	8,415
220 South 9th Street, Phoenix	100%	Sep 2004	7,338	Jun 2009	10,254	୍ତ	10,254	10,492
431 North 47th Avenue, Phoenix	100%	Sep 2004	6,255	Jun 2009	9,182	⊙	9,182	9,246
601 South 55th Avenue, Phoenix	100%	Sep 2004	4,781	Jun 2009	7,025	⊙	7,025	5,921
1000 South Priest Drive, Phoenix	100%	Sep 2004	5,174	Jun 2009	4,215	⊙	4,215	6,233
120-1150 W. Alameda Drive, Phoenix	100%	Sep 2004	8,234	Jun 2009	9,243	⊙	9,243	10,389
858 East Encanto Drive, Phoenix	100%	Sep 2004	4,481	Jun 2009	6,162	୍ତ	6,162	6,649
3802-3922 East University Drive, Phoenix	100%	Sep 2004	10,550	Jun 2009	9,453 8,011 16,145 35,741	⊙	9,453 8,011	11,947
Chino, Riverside	100%	Sep 2004	6,563	Jun 2009		⊙		9,661
Mira Loma, Riverside	100%	Sep 2004	10,843	Jun 2009		୍ତ	16,145	20,777
Ontario, Riverside	100%	2004 Sep:	30,046	Jun 2009		$\widehat{\mathbf{c}}$	35,741	50,384
4190 East Santa Ana Street, Riverside	100%	2004 5e	5,053	Jun 2009	6,778	$\widehat{\mathbf{c}}$	6,778	9,350
Rancho Cucamonga, Riverside	100%	2004 ep Sep	22,442	Jun 2009	27,730	$\circ$	27,730	37,918
2000 Jersey Court, Riverside	100%	POOS des	4,345	Jun 2009	5,792	⊙	5,792	7,688
Airway Road, San Diego	100%	Sep 2004	9,686	Jun 2009	9,860	$\mathfrak{D}$	9,860	10,389
5823 Newton Drive, San Diego	100%	POOS des	17,065	lun 2009	18,487	$\odot$	18,487	23,998
2210 Oak Ridge Way, San Diego	100%	POOS des	5,185	lun 2009	6,902	ତ ତ	6,902	6,732
Kent West, Seattle	100%	2004 Sep	29,789	2009 $\overline{a}$	29,579		29,579	36,360

(a) Properties (continued)	Ownership	date	all additions Acquisition Cost including	Independent valuation date	Independent valuation amount	Independent valuer	Consolidated June 2009 book value 30	Consolidated book value 30 June 2008
Held by other stapled entities (continued)			\$'000		\$'000		\$'000	\$'000
26507 79th Avenue South, Seattle	00%	Sep 2004		Jun 2009	3,389			3,740
8005 South 266th Street, Seattle	100%	POOS des		Jun 2009	8,011			9,038
West Palm Beach, South Florida		POOS deS	2,745 7,243 7,049 5,494 5,494	Jun 2009	15,282	9999	3,389 8,011 15,282	21,296
Calvert / Murray's, Northern Virginia	10% 100% 100%	Sep 2004		Jun 2009	4,794		4,794	5,090
Turnpike Distribution Center		Sep 2004	22,840	Jun 2009	23,786		23,786	29,919
7700 68th Avenue, Brooklyn Park	100%	Vov 2005	5,791	Jun 2009	3,574		3,574	4,467
7500 West 78th Street, Bloomington	100%	Nov 2005	5,477	Jun 2009	5,299	ତ ତ	5,299	5,402
1285 & 1301 Corporate Center Drive, 1230 & 1270 Eagan
Industrial Road, Eagan	100%	Nov 2005	19,720	Jun 2009	16,391	⊙	16,391	16,102
850 E Devon Avenue, 1260 N Ellis Street, 371 Meyer Road
Bensenville, Chicago (O'Hare)	l00%	Dec 2007	31,864	Jun 2009	22,184		22,184	30,646
3722 Redlands Avenue, Perris, Riverside County	100%	Jan 2008	34,836	Jun 2009	108,578	ତ ତ	108,578	131,934
8151 & 8161 Interchange Parkway, San Antonio	100%	Jul 2007	16,857	Jun 2009	14,788	⊙	14,788	16,102
Cornerstone I and II, 5411 Interstate 10 East and 1228 Cornerway
Boulevarde, San Antonio	$\frac{8}{6}$	Aug 2007		Jun 2009	14,787		14,787	13,920
302 and 402 Tayman Road, Port of San Antonio	100%	Oct 2007	14,420 17,775	Jun 2009	20,950	ତ୍ର ତ	20,950	19,842
1803 Grandstand Avenue, Alamo Downs, San Antonio	100%	Aug 2007	11,191	Jun 2009	9,860	T	9,860	11,115

Total other stapled entities investment properties
Total investment properties

6,593,206

$\frac{5,723,114}{7,120,710}$

$\frac{6,133,041}{7,716,241}$

5,276,044

Page 50 of 97

Note 13. Non-current assets - investment properties (continued)

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

Valuation basis

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, the Society of Property Researchers, Germany or the Appraisal Institute in Canada.

Key valuation assumptions

The below table illustrates the key valuation assumptions used in the determination of the investment properties fair value.

2009				North
	Australian office	Australian industrial	Australian retail	America industrial	Europe industrial
Weighted average capitalisation rate (%)	7.7	8.8	6.8	8.2	8.1
Weighted average lease expiry by income (Yrs)	5.4	4.3	4.5	4.3	3.1
Vacancy by income (%)	2.4	3.6	$^{\circ}$ 0.7	13.3	9.7

2008				North
	Australian office	Australian industrial	Australian retail	America industrial	Europe industrial
Weighted average capitalisation rate (%)	6.4	7.5	5.8	6.9	6.4
Weighted average lease expiry by income (Yrs)	5.7	4.4	4.5	3.9	3.6

Together with taking active market evidence into account, ten year discounted cashflows and capitalisation valuation methods are used. In addition to the key assumptions set out in the table above, assumed portfolio downtime ranges from six to twelve months and tenant retention ranges from 50% to 75%.

Disposals

3765 Atlanta Industrial Drive, Atlanta

On 30 October 2008, the Atlanta Industrial property located on 3765 Atlanta Industrial Drive, Atlanta, GA was disposed of for \$6.8 million (US\$4.7 million).

Redwood Gardens (two lots)

Two strata lots within the Redwood Gardens Estate were disposed of on 29 June 2009; 358-360 Boundary Road for \$2.8 million and 43 Garden Boulevard for \$3.4 million.

Woodpark Rd, Smithfield

On 26 June 2009, 239-251 Woodpark Rd, Smithfield was disposed of for \$5.6 million.

Developments

60 Miller Street, North Sydney, NSW

The development of a new 4,532 square metres annex building at 60 Miller Street, North Sydney achieved practical completion on 31 March 2009, with 100% pre-committed office area. Total construction costs are approximately \$26.1 million.

Note 13. Non-current assets - investment properties (continued)

(b) Reconciliation

			Consolidated		Parent Entity
		2009	2008	2009	2008
	Note	\$'000	\$'000	\$'000	\$'000
Opening balance as at 1 July 2008		8,182,295	8,585,703	1,589,089	1,987,034
Additions		65,623	112,923	15,040	44,594
Acquisitions			317,765		2,800
Transfer from/(to) property plant and equipment	14	23,118	(2,376)	(10,000)	(44,416)
Lease incentives		50,822	49,962	3,487	4,023
Amortisation of lease incentives		(47,242)	(42,034)	(5, 811)	(5,822)
Rent straightlining		3.668	3.536
Disposals		(20, 740)	(737, 457)	(8, 870)	(429, 857)
Transfer to non current assets classified as held for
sale	9	(43, 054)		(20, 800)
Transfer to equity accounted investment ¹			(54, 478)
Net (loss)/gain from fair value adjustments		(1,517,564)	184,444	(164, 539)	30,733
Foreign exchange differences on foreign currency
translation		423,784	(235,693)
Carrying amount as at 30 June 2009		7,120,710	8,182,295	1,397,596	1,589,089

1 On 15 October 2007, the Bent Street Trust was transferred to equity accounted investments due to the sale of 31.8% to DEXUS Wholesale Property Fund (DWPF).

Note 14. Non-current assets - property, plant and equipment

(a) Property, plant and equipment

		Consolidated				Parent Entity
30 June 2009		Land and				Land and
	£. Construction	freehold	IT and		Construction in	freehold	IT and
	progress	buildings	office	Total	progress	buildings	office	Total
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Opening balance as at 1 July 2008	220,062 148,386	217,470	6,101	443,633		41,300		62,644
Additions		29,616	1,459	179,461	21,344 57,074			57,074
Foreign exchange differences on foreign currency	24,709			24,709
Depreciation charge		(2, 375)	(1,801)	(4, 176)
Impairment	5 (11,21)	(15, 674)		126,889)
Transfer to non current assets classified as held for sale		(55,000)		(55,000)
Transfer to IT and office		(970)	670
Transfer (to)/from investment properties	(33, 118)	10,000		(23, 118)		10,000		10,000
Closing balance as at 30 June 2009	248,824	183,067	6,729	438,620	78,418	51,300	$\blacksquare$	129,718
Cost	360,039	206,838	9,115 (2,386)	575,992	78,418	51,300		129,718
Accumulated depreciation and impairment Impairment	叵 (111,21)	(15, 674) (8,097)		(10, 483) (126, 889)

Net book value as at 30 June 2009	248,824	183,067	6,729	438,620	78,418	51,300		129,718
		Consolidated				Parent Entity
30 June 2008	ء \$'000 Construction	Land and \$'000	IT and \$'000	Total \$'000	Construction in \$'000	Land and \$'000	IT and \$'000	\$'000 Total
Opening balance as at 1 July 2007	$\overline{6}$ 181,91	132,102		314,021
Additions	141,436	43,177	6,686	191,299	18,228			18,228
Foreign exchange differences on foreign currency	(9,227) J,		(585)	$(9, 227)$ $(2, 796)$
Depreciation charge Disposal of interest		$(2,211)$ $(2,818)$		(52,040)
Transfer (to)/from investment properties	$(49, 222)$ $(44, 844)$	47,220		2,376	3,116	41,300		44,416
Closing balance as at 30 June 2008	220,062	217,470	6,101	443,633	21,344	41,300		62,644
Cost	220,062	223,192	6,686	449,940	21,344	41,300		62,644
Accumulated depreciation		(5, 722)	(585)	(6, 307)
Net book value as at 30 June 2008	220,062	217,470	6,107	443,633	21,344	41,300	ŧ.	62,644

Page 53 of 97

$\hat{\boldsymbol{\beta}}$

Note 14. Non-current assets - property, plant and equipment (continued)

(b) Non-current assets pledged as security

Refer to Note 21 for information on non-current assets pledged as security by the parent entity and its controlled entities.

(c) Impairment

During the period, DXS carried out a review of the recoverable amount of its development properties resulting in the recognition of an impairment loss of \$126.9 million that has been recognised in the Income Statement.

The value in use has been determined using management forecasts in a 10 year discounted cash flow model. Forecasts were based on projected returns of the project in light of current market conditions which include estimates of operating cash flows. sales values and total project costs. Year 10 earnings have been used to determine terminal value. The cash flows have been discounted at the cost of capital for each project.

The total impairment comprises \$15.3 million for Wicks Road; \$33.5 million for Greystanes; \$0.4 million for 343 George Street, \$31.7 million for Atlantic Corporate Park; \$35.3 million for Summit Oaks; \$6.4 million for the San Antonio development properties and \$4.3 million in relation to other US developments.

(d) Acquisitions and developments

Development

123 Albert Street, Brisbane

On 11 February 2008 demolition of the asset previously known as the Albert and Charlotte Streets Carpark commenced. Laing O'Rourke Constructions were the appointed contractor and completion is expected in December 2010. Rio Tinto have precommitted to approximately 64% of the 38,245 square metres of commercial office area. Marketing of the balance of the office space plus the 320 square metres of retail space continues. Total development costs including land are estimated to be \$350.0 million. Total amount paid to date is \$119.4 million.

105 Phillip Street, Parramatta, NSW

Development approval has been received to construct a 13 level office tower with approximately 20.380 square metres of floor space at 105 Phillip Street Parramatta, a site at the rear of the existing building at 130 George Street Parramatta. No decision has been made to proceed with the development at this stage. This asset has been transferred from investment properties in June 2009.

144 Wicks Road, North Ryde, NSW

In November 2006, DOT (through its sub-trust Wicks Road Trust), acquired a 50% ownership interest in 144 Wicks Road, North Ryde, NSW for a consideration of \$25.9 million. The DA for stage 1 (estimated 26,000 square metres net lettable area) is expected to be approved by October 2009. Demolition of the former high school building was completed by December 2008.

Boundary Road, North Laverton, VIC

In October 2007. DIT entered into an agreement to lease and build an office warehouse facility for Best Bar (VIC) Pty Ltd. This project was completed in August 2008. The total costs for the project is \$11.9 million.

In August 2006, DIT entered into an agreement to lease and build a distribution centre for Fosters Limited. Practical completion was achieved on 6 July 2007 with a development cost of \$33.1 million. This property was transferred to investment properties at 31 December 2008.

The site includes 19.3 hectare of serviced land, 24.5 hectare of unserviced land with conditional subdivision approval and 48.6 hectare of "englobo" land undergoing rezoning from rural to industrial use.

Norwest Estate, Brookhollow Road, NSW

On 13 March 2009, subdivision approval was received for 2.1 hectare of vacant land accommodating 23,083 square metres of lettable area. No decision has been made to proceed with the development at this stage.

Southern Employment Lands, Greystanes Estate, NSW

The Greystanes site has a gross land area of 47.62 hectares acquired from Boral in 4 stages. Acquisition of Stage 2 and 3 occurred during the year with a total cost of \$27.2 million. The final stage is expected to be acquired in financial year 2010. Total - development costs excluding land acquisition to 30 June 2009 are \$81.1 million.

$\mathbf{r}$

$\blacksquare$

Note 14. Non-current assets – property, plant and equipment (continued)

(d) Acquisitions and developments (continued)

Summit Oaks, Valencia, California

The development of this land consists of a five-story office building comprising 146,385 square feet in Santa Clarita, California. The total budgeted cost for the project is estimated to be US\$44.6 million (A\$55.0 million). In June 2009, a 10-year lease with a two 5-year extension options at fair market value was signed for the entire building. The tenant will occupy the building in two phases. The tenant will occupy one-third of the building in October 2009 and the other two-thirds of the building will be occupied in October 2010.

Atlantic Corporate Park, Virginia

The development of this land parcel consists of two four-story office buildings comprising 220,000 square feet in Virginia. The total budgeted cost for the project is US\$47.6 million (A\$ 58.7 million), including the initial cost of the land. This project shell was considered substantially completed on 31 July 2008.

San Antonio, Texas

The development of the San Antonio properties acquired in the initial phase consisted of eight warehouse and office buildings comprising 660,875 square feet in San Antonio, Texas. Total budgeted cost for this project is US\$44.7 million (A\$55.1 million). The project shell was considered substantially completed on 10 July 2008 for Tri County 5 (35,700 square feet) and Tri County 6 (57,800 square feet) properties and on 19 January 2009 for Interchange North (88,875 square feet) property. Shell construction is nearing completion for Port of San Antonio III (275,000 square feet) property with the rail installation remaining to be completed. Currently, development on Interchange 8171, Interchange 8181, Interchange 8191 and Tri County 2 properties (203,500 square feet) is on hold and it will not commence until majority of the space on the other completed buildings is leased.

Note 15. Non-current assets - other financial assets at fair value through profit or loss

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

Name of entity	Principal activity	Ownership Interest		Parent Entity
		2009	2008	2009	2008
		%	℅	\$'000	\$'000
Controlled Entities
DEXUS Industrial Trust ¹	Industrial property investment	100.0	100.0
DEXUS Office Trust ¹	Commercial property investment	100.0	100.0
DEXUS Operations Trust ¹	Financial services	100.0	100.0	$\overline{\phantom{a}}$
DEXUS Finance Pty Limited	Financial services	25.0	25.0	$\overline{\phantom{0}}$

Total non-current assets - other financial assets at fair value through profit and loss

Reconciliation		Parent Entity
	2009	2008
	\$'000	\$'000
Opening balance as at 1 July 2008	$\blacksquare$	294,901
Acquisitions	$\overline{\phantom{a}}$	96
Fair value loss	$\blacksquare$	(6,596)
Disposal	$\blacksquare$	(288, 401)
Closing balance as at 30 June 2009

All controlled entities are wholly owned by the Trust with the exception of DEXUS Finance Pty Limited. Both the parent entity and the controlled entities were formed in Australia.

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

Note 16. 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 Interest		Consolidated		Parent Entity
		2009	2008	2009	2008	2009	2008
		%	%	\$'000	\$'000	\$'000	\$'000
Held by parent entity
DEXUS Industrial	Asset, property and funds
Properties, Inc. ¹	management	50.0	50.0	۰.		138,276	314,989
Held by controlled entities
Bent Street Trust ²	Commercial property
	investment	34.9	68.2	84.165	111,946
Total				84,165	111,946	138.276	314,989

These entities were formed in Australia with the exception of DEXUS 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.

2 On 15 October 2007, the Bent Street Trust was transferred from investment properties due to the sale of 31.8% to DWPF. On 5 February 2009, a further 33.3% of the Bent Street Trust was sold to CBUS Property.

Note 16. Non-current assets - investments accounted for using the equity method (continued)

Movements in carrying amounts of investments accounted for using i
Literatur $\overline{\mathbf{r}}$ -44

the equity method	Consolidated
	2009	2008
	\$'000	\$'000
Opening balance as at 1 July 2008	111,946	270,155
Interest acquired and additions	32,916	67,070
Transfer from investment properties		54,478
Share of net profits after tax	31	2,467
Distributions/dividends received	(16)	(12, 587)
Transfer to other financial assets		(18,054)
Disposal of investment	(60, 712)	(210, 768)
Wind up of investment		(40, 815)
Closing balance as at 30 June 2009	84.165	111,946
Results attributable to associates
Operating profits before income tax	31	3,744
Income tax expense		(1, 277)
Operating profits after income tax	31	2,467
Less: Distributions/dividends received	(16)	(12, 587)
	15	(10, 120)
Undistributed income attributable to associates as at 1 July 2008	(6, 367)	3,129
Undistributed income attributable to associates as at 30 June 2009	(6, 352)	(6, 367)

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:

	Consolidated
	2009	2008
	\$'000	\$'000
Profits from ordinary activities after income tax expense	31	2,467
Assets	86,075	117,024
Liabilities	1,910	9.296
Share of associates' expenditure commitments
Capital commitments	96.318	191,742

Page 57 of 97

Note 17, Non-current assets - deferred tax assets

		Consolidated	Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
The balance comprises temporary differences attributable to:
Investment property	24,462
Derivative financial instruments	10,759	4,103
Tax losses	4,494	2,552
Employee provision	8.390	6,849
Other	1,031	1,378
Total non-current assets - deferred tax assets	49,136	14,882
Movements
Opening balance at 1 July 2008	14,882	3,921
Acquisition		4.811
Credited to the Income Statements	34,254	6,150
Closing balance at 30 June 2009	49.136	14,882

Note 18. Intangible assets

		Consolidated	Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$000
Management rights
Opening balance as at 1 July 2008	252,176
Additions		252,382	. –
Amortisation charge	(566)	(206)
Impairment	(41, 110)
Closing balance as at 30 June 2009	210,500	252,176
Cost	252,382	252,382
Accumulated amortisation	(772)	(206)
Impairment	(41, 110)
Total management rights	210,500	252,176

Management rights represent the asset management rights owned by DXH which entitle it to management fee revenue from both finite life trusts (\$9,223,164) and indefinite life trusts (\$201,276,836). Those rights that are deemed to have a finite useful life are measured at cost and amortised using the straight-line method over their estimated useful lives which vary from six to 22 years.

Impairment of Management Rights

During the period, DXS carried out a review of the recoverable amount of its intangible assets resulting in the recognition through the Income Statement of an impairment loss of \$41.1 million in relation to management rights.

The value in use has been determined using management forecasts in a 5 year discounted cash flow model. Forecasts were based on projected returns of the business in light of current market conditions. The performance in year 5 has been used as a terminal value. The cash flows have been discounted at 8.2%.

Page 58 of 97

Note 18. Intangible assets (continued)

		Consolidated	Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Goodwill
Opening balance as at 1 July 2008	2,937
Additions		2,998
Impairment	(170)	(61)	$\blacksquare$
Closing balance as at 30 June 2009	2,767	2,937
Cost	2,998	2,998
Accumulated impairment	(231)	(61)
Total goodwill	2,767	2,937
Total intangibles	213,267	255,113

Note 19. Non-current assets - other

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Tenant and other bonds	883	1,240	481	566
Other	5,082	3,549	414
	5,965	4,789	895	566

Note 20. Current liabilities - payables

		Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Trade creditors	41,576	51,383	12,539	7,015
Accruals	8,609	8.052	2,053	1,840
Amount payable to other minority interest	2,244	4.631
Accrued capital expenditure	8,764	13.419	1,673	500
Prepaid income	11,153	7.218	2,717	2,118
Responsible Entity fee payable	۰		521	505
GST payable	766	1.554	٠	158
Accrued interest	25,298	32,139		1,832
Total current liabilities - payables	98,410	118.396	19.503	13.968

Note 21. Interest bearing liabilities

		\$'000	\$'000	\$'000
Current
Secured
Commercial mortgage backed securities	(a)		500,000
Bank loans	(d)	724	79,208
Total secured		724	579,208	۰
Unsecured
Medium term notes		250,000
Bank loans	(c)	131,161
Total unsecured		381,161
Deferred borrowing costs		(212)	(1,428)
Total current liabilities - interest bearing liabilities		381,673	577,780
Non-current
Secured
Bank loans	(d),(e),(f)	639,897	235,725
Total secured		639,897	235,725
Unsecured
US senior notes		492,976	415,541
Bank loans	(b), (c)	798,102	1,328,060
Medium term notes		206,436	455,425
Preference shares	(g)	114	96
Total unsecured		1,497,628	2,199,122	$\blacksquare$
Deferred borrowing costs		(10, 186)	(5,708)
Total non-current liabilities - interest bearing liabilities		2,127,339	2,429,139	ä,
Total interest bearing liabilities		2,509,012	3,006,919	$\blacksquare$

Page 60 of 97

Note 21. Interest bearing liabilities (continued)

					2009	2009
					\$'000	\$'000
Type of Facility	Notes	Currency	Security	Maturity Date		Utilised Facility Limit
US senior notes		USD	Unsecured	Feb-11 to Mar-17	492,976	492,976
Medium term notes		AUD	Unsecured	Feb-10 to Feb-11	450,000	450,000
Medium term notes		USD	Unsecured	Sep-10	6.436	6.436
Multi-option revolving credit facilities	(b)	Multi Currency	Unsecured	Dec-10 to Dec-13	539,290	1,330,393
Syndicated revolving credit facility	(c)	Multi Currency	Unsecured	Mar-10 to Sep-10	389.973	558,812
Bank debt - secured	(d)	USD	Secured	Oct-11 to Jan-15	113,323	113,323
Bank debt - secured	(e)	USD	Secured	Sep-11	277,298	277,298
Bank debt - secured	(f)	AUD	Secured	Jul-11 to Dec-12	250,000	750,000
Total					2,519,296	3,979,238
Bank guarantee utilised					9,545
Unused at balance date					1,450,397

Each of the Trusts' unsecured borrowing facilities are supported by the Trusts' quarantee arrangements, and 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.

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

(a) Commercial mortgage backed securities and commercial paper

During the period, \$500.0 million of commercial mortgage backed securities (CMBS) were repaid and associated mortgages discharged.

(b) Multi-option revolving credit facilities

This includes 12 facilities maturing between December 2010 and December 2013 with a weighted average maturity of July 2012. The total facility limit comprises US\$120.0 million (A\$147.9 million) and A\$1,182.5 million of the total facility limit, \$6.3 million and US\$2.6 million (A\$3.2 million) are utilised as bank guarantees for developments.

(c) Syndicated revolving credit facility

Consists of a A\$300 million facility and a US\$210 million (A\$258.8 million) facility, maturing in March 2010 and September 2010 respectively.

(d) Bank loans - secured

This includes a total of US\$92.0 million (A\$113.4 million) of secured bank debt facilities that amortise through monthly principal and interest payments with a weighted average maturity date of January 2014. The facilities are secured by mortgages over investment properties totalling US\$157.1 million (A\$193.6 million) as at 30 June 2009.

(e) Bank loans - secured

A US\$225.0 million (AUD\$277.3 million) secured interest only bank loan maturing in September 2011. This facility is secured by mortgages over investment properties totalling US\$425.5 million (A\$524.4 million) as at 30 June 2009.

(f) Bank loans - secured

This includes three facilities of A\$250 million each comprising a:

A\$250.0 million secured bank loan maturing in October 2011. This loan is secured by mortgages over one DDF $(i)$ investment property and two DOT investment properties totalling A\$825.0 million as at 30 June 2009.
A\$250.0 million secured facility maturing in July 2011. When utilised, the facility will be secured over investment $(ii)$ properties to the value no more than A\$625 million, to be finalised prior to first utilisation. The facility ceases to be available if it is not drawn by February 2010.
$(iii)$ A\$250.0 million secured facility maturing in December 2012. When utilised, the facility will be secured over investment properties, to be finalised prior to first utilisation. This facility ceases to be available if it is not drawn by December 2009.

Page 61 of 97

Note 21. Interest bearing liabilities (continued)

(g) Preferred shares

US REIT has issued US\$92,550 (A\$114,062) 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 decides that it is no longer in DXS's interest to qualify as a REIT.

Note 22. Provisions

	Consolidated		Parent Entity
Current	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Provision for distribution	164.529	182,388	90.389	102,300
Provision for employee benefits	13,089	11.926	$\blacksquare$
	177,618	194,314	90,389	102,300

Movements in each class of provision during the financial year, other than employee benefits, are set out below:

Consolidated		Parent Entity
2009	2008	2009	2008
\$'000	\$'000	\$'000	\$'000
182,388	164,992	102,300	68,470
296,648	355,380	138,238	219.175
(314.507)	(337, 984)	(150, 149)	(185, 345)
164.529	182,388	90,389	102.300

Provision for distribution

Provision is made for distributions to be paid for the period ended 30 June 2009 payable on 28 August 2009.

		Consolidated		Parent Entity
Non-current	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Provision for employee benefits	13,533	9.818	$\blacksquare$
	13.533	9818

Note 23. Current liabilities - other

	Consolidated		Parent Entity
2009	2008	2009	2008
\$'000	\$'000	\$'000	\$'000
281	.799		$\overline{\phantom{0}}$
281	.799	$\overline{\phantom{0}}$

Note 24. Non-current liabilities - deferred tax liabilities

		Consolidated	Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
The balance comprises temporary differences attributable to:
Derivative financial instruments	3,615	352
Goodwill	2,767	2.937
Investment properties		72,326
Property, plant and equipment	2,670
Other	923	928
Total non-current liabilities - deferred tax liabilities	9,975	76,543
Movements
Opening balance at 1 July 2008	76,543	73,809
Acquisition		3.390
(Debited)/credited to Income Statements	(66, 568)	(656)
Closing balance at 30 June 2009	9,975	76,543

Note 25. Non-current liabilities - other

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Tenant bonds	8,471	7.543	877	959
Other borrowing costs	242	441	٠
Other	76	64	$\blacksquare$
Total non-current liabilities - other	8,789	8.048	877	959

Note 26. Contributed equity

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

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Opening balance as at 1 July 2008	1.297,831	1,151,526	1.297,831	1,151,526
Issue of units	406,496		406.496
Distributions reinvested	47,912	146.305	47,912	146,305
Cost of issuing equity	(11,028)		(11,028)
Closing balance as at 30 June 2009	1,741,211	1,297,831	1,741,211	1,297,831

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

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Opening balance as at 1 July 2008	2,280,052	2.182.833	$\overline{\phantom{a}}$
Issue of units	655,732		$\bullet$
Distributions reinvested	52,508	97.373	$\blacksquare$
Cost of issuing units	(21, 649)	(154)
Closing balance as at 30 June 2009	2.966,643	2.280.052

(c) Number of securities on issue

	Consolidated			Parent Entity
	2009	2008	2009	2008
	No. of	No. of	No. of	No. of
	securities	securities	units	units
Opening balance as at 1 July 2008	3,040,019,487	2,894,600,006	3.040.019.487	2,894,600,006
Issue of units	1,560,453,600		1,560,453,600
Distributions reinvested	100.368,579	145,419,481	100,368,579	145,419,481
Closing balance as at 30 June 2009	4,700,841,666	3,040,019,487	4,700,841,666	3,040,019,487

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.

(d) Issue of securities

During the current year DXS carried out two separate security issue programs issuing a total of 1,560.5 million securities to raise \$1,062.2 million excluding equity raising costs of \$32.7 million. This comprised of the following:

December 2008 Institutional placement and share purchase plan

On 10 December 2008 pursuant to an institutional placement 391.7 million securities were issued at a price of 77.0 cents per security.

On 6 February 2009 pursuant to a security purchase plan 16.4 million securities were issued at a price of 70.7 cents per security.

Note 26. Contributed equity (continued)

(d) Issue of securities (continued)

May 2009 Institutional placement, institutional entitlement offer and the retail entitlement offer

On 6 May 2009 pursuant to an institutional placement, institutional entitlement offer and the retail entitlement offer for which valid applications were received, a total of 1025.1 million securities were issued at a price of 65.0 cents per security. On 28 May 2009 pursuant to a retail entitlement offer 127.2 million securities were issued at a price of 65.0 cents per security.

(e) 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 2008, 45,087,887 units were issued at a unit price of 128.8 cents in relation to the June 2008 distribution period.

On 27 February 2009, 55,280,692 units were issued at a unit price of 76.6 cents in relation to the December 2008 distribution period.

Approval of issues of Stapled Securities to an underwriter in connection with issues under a Distribution Reinvestment Plan

At the Extraordinary General Meeting held on 6 February 2009 by DXFM, as Responsible Entity for DDF, DIT, DOT and DXO, security holders resolved to authorise DXFM, as Responsible Entity, to issue stapled securities, each comprising a unit in each of the above mentioned trusts (Stapled Securities), to an underwriter or persons procured by an underwriter within a period of 24 months from the date of the meeting in connection with any issue of Stapled Securities under the DXS distribution reinvestment plan.

Such an issue will not be counted for the purposes of the calculation of the Trusts' annual placement limit of 15% under the ASX Listing Rules.

Note 27. Reserves and undistributed income

(a) Reserves

		Consolidated	Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Foreign currency translation reserve	(66, 171)	(12, 357)
Asset revaluation reserve	42,739	63,294
Total reserves	(23, 432)	50,937
Movements:
Foreign currency translation reserve
Opening balance as at 1 July 2008 Exchange difference arising from the translation of the	(12, 357)	2,129
financial statements of foreign operations	(53, 814)	(14,486)
Total movement in foreign currency translation reserve	(53, 814)	(14,486)	н.,
Closing balance as at 30 June 2009	(66,171)	(12,357)
Asset revaluation reserve
Opening balance as at 1 July 2008	63,294
Transfer to undistributed income	(20, 555)
Revaluation increment on investment		63,294
Total movement in asset revaluation reserve	(20, 555)	63,294
Closing balance as at 30 June 2009	42,739	63,294	$\blacksquare$

(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.

Asset revaluation reserve

The asset revaluation reserve is used to record the fair value adjustment arising on a business combination (refer Note 34)

(c) Undistributed income

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Undistributed income as at 1 July 2008	2,000.235	1,930,282	704,791	838,162
Net profit attributable to security holders	(1,459,111)	438,277	(360, 986)	85,804
Transfer from revaluation reserves	20,555
Transfer of capital reserve of minority interest	(10,008)	(13,346)	$\blacksquare$
Acquisition of investment		402	۰
Distributions provided for or paid	(296, 648)	(355.380)	(138,238)	(219, 175)
Undistributed income as at 30 June 2009	255,023	2,000,235	205,567	704,791

Note 28. Other minority interests

	Consolidated		Parent Entity
Interest in	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Contributed equity	200.503	200,019	$\blacksquare$
Reserves	51,696	41,352	$\blacksquare$
Undistributed income	(45.427)	(35, 373)	$\blacksquare$	$\blacksquare$
Total other minority interests	206,772	205,998	$\blacksquare$

Note 29. Distributions paid and payable

(a) Distribution to security holders

$\sim$

	Consolidated Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
31 December (paid 27 February 2009)	132.119	172,992	47,849	116,875
30 June (payable 28 August 2009)	164,529	182,388	90,389	102,300
	296,648	355,380	138,238	219,175
(b) Distribution to other minority interests
DEXUS Industrial Holdings, LLC (paid)		421
DEXUS RENTS Trust (paid 16 October 2008)	4,651	3,978
DEXUS RENTS Trust (paid 16 January 2009)	4.243	4,202
DEXUS RENTS Trust (paid 17 April 2009)	2,611	4,304
DEXUS RENTS Trust (payable 15 July 2009)	2,244	4,631
	13,749	17,536
Total distributions	310.397	372,916	138,238	219.175

Note 29. Distributions paid and payable (continued)

(c) Distribution rate

	Consolidated		Parent Entity
	2009 Cents per security	2008 Cents per security	2009 Cents per unit	2008 Cents per unit
31 December (paid 27 February 2009)	3.80	5.90	1.38	3.99
30 June (payable 28 August 2009)	3.50	6.00	1.92	3.37
Total distributions	7.30	11.90	3.30	7.36

(d) Franked dividends

The franked portions of the final dividends recommended after 30 June 2009 will be franked out of existing franking credits or out of franking credits or out of franking credits arising from the payment of income tax in th

		Consolidated		Parent Entity
Franking credits	2009	2008	2009	2008
	$$^{1000}$	\$'000	\$'000	\$'000
Opening balance as at 1 July 2008	14,139	3.512	÷.
Franking credits arising during the year on payment of
tax at 30%	7.240	4,694
Franking debits arising from payment of interim dividend	$\blacksquare$	(5,296)	۰
Franking credits arising on receipt of dividend	$\blacksquare$	5,024
Franking credits on acquisition	$\blacksquare$	6,205
Closing balance as at 30 June 2009	21,379	14.139

Note 30. Financial Risk Management

To ensure the effective and prudent management of the Trusts' capital and financial risks, DXS has a well established framework consisting of a Board Finance Committee and a Capital Markets Committee. The Board Finance Committee is accountable to and primarily acts as an advisory body to the DXFM Board and includes three Directors of the DXFM Board. Its responsibilities include reviewing and recommending financial risk management polices and funding strategies for approval.

The Capital Markets Committee is a management committee that is accountable to both the Board Finance Committee and the Executive Committee. It convenes at least quarterly and conducts a review of financial risk management exposures including liquidity, funding strategies and hedging. It is also responsible for the development of financial risk management policies and funding strategies for recommendation to the Board Finance Committee, and the approval of treasury transactions within delegated limits and powers.

Further information on the Trusts' governance structure, including terms of reference, is available at www.dexus.com

(1) Capital risk management

The Trust manages its capital to ensure that entities within the Trust will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The capital structure of the Trust consists of debt (see Note 21), cash and cash equivalents, and equity attributable to security holders (including hybrid securities). The capital structure is monitored and managed in consideration of a range of factors includina:

the cost of capital and the financial risks associated with each class of capital;
gearing levels and other covenants;
potential impacts on net tangible assets and security holder's equity;
potential impacts on the Trust's credit rating; and
other market factors and circumstances.

To minimise the potential impacts of foreign exchange risk on the Trust's capital structure, the Trust's policy is to hedge the majority of its foreign asset and liability exposures. Consequently the size of the assets and liabilities on the balance sheet (translated into Australian Dollars) and gearing ratios will rise and fall as exchange rates fluctuate. This policy ensures that net tangible assets are not materially affected by currency movements (refer foreign exchange risk below)

The Trust has a stated target gearing level of below 40% (2008: stated target gearing range was 40% to 45%). The gearing ratio calculated in accordance with our covenant requirements at 30 June 2009 was 32.0% (as detailed below).

	Consolidated			Parent Entity
Gearing ratio	2009	2008	2009	2008
	\$ 000	\$'000	\$'000	\$'000
Total interest bearing liabilities ¹	2,519,410	3.014.055	$\blacksquare$
Total tangible assets ²	7,881,793	8.887.706	2,143,619	2.127.551
Gearing ratio	32.0%	33.9%	$0.0\%$	0.0%

1 Total interest bearing liabilities excludes deferred borrowing costs as reported internally to management.

2 Total tangible assets comprise total tangible assets less derivatives and deferred and current tax balances as reported internally to management.

The Trust is rated BBB+ by Standard and Poor's (affirmed in April 2009). The Trust considers potential impacts upon the rating when assessing the strategy and activities of the Trust and regards those impacts as an important consideration in its management of the Trust's capital structure.

DXFM is the Responsible Entity for the managed investment schemes that are stapled to form the Trust. DXFM has been issued with an Australian Financial Services Licence (AFSL). The licence is subject to certain capital requirements including the requirement to hold minimum net tangible assets (of \$5 million), and maintaining a minimum level of surplus liquid funds. Furthermore, the Responsible Entity maintains trigger points in accordance with the requirements of the licence. These trigger points maintain a headroom value above the AFSL requirements and the entity has in place a number of processes and procedures should a trigger point be reached.

Note 30. Financial Risk Management (continued)

(1) Capital risk management (continued)

DWPL, a wholly owned entity, has also been issued with an AFSL as it is the Responsible Entity for DEXUS Wholesale Property Fund. It is subject to the same requirements.

During the period, both the Responsible Entities complied with the AFSL requirements.

(2) Financial risk management

The Trust's activities expose it to a variety of financial risks: credit risk, market risk (including currency risk, interest rate risk and price risk), and liquidity 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 such as interest rate swaps, cross currency interest rate swaps, and foreign exchange contracts to manage its exposure to certain risks. The Trust does not trade in derivative instruments for speculative purposes. The Trust uses different methods to measure the different types of risks to which it is exposed, including monitoring the current and forecast levels of exposure, and conducting sensitivity analyses.

Risk management is implemented by a centralised treasury department (Group Treasury) whose members act under written policies that are endorsed by the Board Finance Committee and approved by the Board of Directors of the Responsible Entity. Group Treasury identifies, evaluates and hedges financial risks in close cooperation with the Trust's business units. The treasury policies approved by the Board of Directors cover overall treasury risk management, as well as policies and limits covering specific areas such as liquidity risk, interest rate risk, foreign exchange risk, credit risk and the use of derivatives and other financial instruments. In conjunction with its advisers, the Responsible Entity continually reviews the Trust's exposures and (at least annually) updates its treasury policies and procedures.

(a) Liquidity risk

Liquidity risk is the risk that the Trust will not have sufficient available funds to meet financial obligations in an orderly manner when they fall due or at an acceptable cost.

The Trust identifies and manages liquidity risk across short, medium and long-term categories:

Short-term liquidity management includes continuously monitoring forecast and actual cash flows;
Medium-term liquidity management includes maintaining a level of committed borrowing facilities above the forecast committed debt requirements (liquidity headroom buffer). Committed debt includes future expenditure that has been approved by the Board or Investment Committee (as required within delegated limits), and may also include projects that have a very high probability of proceeding, taking into consideration risk factors such as the level of regulatory approval, tenant pre-commitments and portfolio considerations; and
Long-term liquidity risk is managed through ensuring an adequate spread of maturities of borrowing facilities so that refinancing risk is not concentrated, and ensuring an adequate diversification of funding sources where possible subject to market conditions.

Refinancing risk

A key liquidity risk is the Trust's ability to refinance its current debt facilities. As the Trust's debt facilities mature, they are usually required to be refinanced by extending the facility or replacing the facility with an alternative form of capital.

The refinancing of existing facilities may also result in margin price risk, whereby market conditions may result in an unfavourable change in credit margins on the refinanced facilities. The Trust's key risk management strategy for margin price risk on refinancing is to spread the maturities of debt facilities over different time periods to reduce the volume of facilities to be refinanced and the exposure to market conditions in any one period.

An analysis of the contractual maturities of the Trust's interest bearing liabilities and derivative financial instruments are shown in the table below. The amounts in the table represent undiscounted cash flows.

DEXUS DIVERSIFIED TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2009 Note 30. Financial Risk Management (continued)

(2) Financial risk management (continued)

			Consolidated 30 June 2009			Consolidated 30 June 2008
	within one year \$'000	Expiring and two vears \$'000	Expiring Expiring between one between two and five vears \$'000	Expiring after five years \$'000	Expiring within one year \$'000	Expiring between one and two years \$'000	Expiring between two vears \$'000	and five Expiring after five years \$'000
Receivables	35,816				36,457
Payables	98,410	×.			118,396
	(62, 594)	$\blacksquare$	٠	$\blacksquare$	(81,939)	۰	$\blacksquare$
Interest bearing liabilities
Fixed interest rate liabilities Floating interest bearing	250,724	336,517	496,351	225,629	234,208	250,000	650,215	190,893
liabilities	131,161	481,214	597,699		345,000	251,497	776,874	315,272
Total interest bearing liabilities ¹	381,885	817,731	1,094,051	225,629	579,208	501,497	1,427,089	506,165
Derivative financial instruments
Derivative assets	739.625	456.059	559,433	31,656	606,517	96,307	126,715	22,976
Derivative liabilities	767,637	543.917	804,598	225.981	557,309	84,510	75,801	11,178
Total net derivative
financial instruments ²	(28,012)	(87, 858)	(245, 165)	(194, 325)	49,208	11,797	50,914	11,798

1 Refer to Note 21 (interest bearing liabilities). Excludes deferred borrowing costs and preference shares.

2 The notional maturities on derivatives is only shown for cross currency interest rate swaps (refer foreign exchange rate risk) and forward foreign exchange contracts as they are the only instruments where a principal amount is exchanged. For interest rate swaps, only the net interest cash flows (not the notional principal) are included. For derivative assets and liabilities that have floating rate interest cash flows, future cash flows have been calculated using static interest rates prevailing at 30 June 2009. Refer to Note 11 Derivative Financial Instruments for fair value of derivatives.

		Parent 30 June 2009				Parent 30 June 2008
		Expiring	Expiring			Expiring	Expiring
	within one	and two	Expiring between one between two and five	Expiring after five	Expiring within one	between one and two	between two	and five Expiring after
	year \$'000	years \$'000	years \$'000	years \$'000	year \$'000	years \$'000	years \$'000	five years \$'000
Receivables	17,752				8,419
Payables	19,503	۰	$\sim$	$\sim$	13,968	۰	٠
	(1,751)	$\qquad \qquad \blacksquare$	٠		(5, 549)
Loans with related parties	٠		$\blacksquare$	408,583	٠			119,533
Derivative financial instruments
Derivative assets	400,156	282,016	295,380	18,072	520,595	16,914	38,978	4,313
Derivative liabilities Total net derivative	385,775	282,679	311,257	43,402	478,687	20,101	40,186	4,567
financial instruments ¹	14,381	(663)	(15, 877)	(25, 330)	41,908	(3, 187)	(1,208)	(254)

1 The notional maturities on derivatives is only shown for cross currency interest rate swaps (refer foreign exchange rate risk) and forward foreign exchange contracts as they are the only instruments where a principal amount is exchanged For interest rate swaps, only the net interest cash flows (not the notional principal) are included. For derivative assets and liabilities that have floating rate interest cash flows, future cash flows have been calculated using static interest rates prevailing at 30 June 2009. Refer to Note 11 Derivative Financial Instruments for fair value of derivatives.

Note 30, Financial Risk Management (continued)

(2) Financial risk management (continued)

(b) Market risk

Market risk is the risk that the fair value or future cash flows of the Trust's financial instruments will fluctuate because of changes in market prices. The market risks that the Trust is exposed to are detailed further below.

(i) Interest rate risk

Interest rate risk is the risk that fluctuating interest rates will cause an adverse impact on interest payable (or receivable), or an adverse change on the capital value (present market value) of long-term fixed rate instruments.

Interest rate risk for the Trust arises from interest bearing financial assets and liabilities that the Trust holds. 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.

The primary objective of the Trust's risk management policy for interest rate risk is to minimise the effects of interest rate movements on the Trust's portfolio of financial assets and liabilities and financial performance. The policy sets out the minimum and maximum hedging amounts for the Trust which is managed on a portfolio basis.

Cash flow interest rate risk on borrowings is managed through the use of interest rate swaps, whereby a floating interest rate exposure is converted to a fixed interest rate exposure. Fair value interest rate risk on borrowings is also managed through the use of interest rate swaps, whereby a fixed interest exposure is converted to a floating interest rate exposure. The mix of fixed and floating rate exposures is monitored regularly to ensure that the interest rate exposure on the Trust's cash flows is managed within the parameters defined by the Group Treasury Policy.

As at 30 June 2009, 92% (2008: 85%) of the financial assets and liabilities (including DEXUS RENTS Trust) of the Trust have an effective fixed interest rate.

The Trust holds borrowings in multiple currencies with both fixed and floating rate exposures and is exposed to interest rate risk related to each particular currency.

The net notional amount of fixed rate debt and interest rate swaps in place in each year and the weighted average effective hedge rate per currency is set out in the next table.

Consolidated 30 June 2009	June 2010 \$'000	June 2011 \$'000	June 2012 \$'000	June 2013 \$'000	June 2014 \$'000	> June 2015 \$'000
Fixed rate debt
AUD fixed rate debt ¹	345.833	116,667
USD fixed rate debt ¹	475.654	372,205	271,870	246,219	219,508	119,260
Interest rate swaps
AUD hedged ¹	429,967	674.467	643,200	499,167	485,000	230,667
AUD hedge rate $(\%)^2$	5.02%	5.32%	4.97%	5.25%	5.74%	6.19%
USD hedged $1$	693,700	710,533	775,867	884,033	835,700	427,622
USD hedge rate $(\%)^2$	5.91%	5.95%	6.16%	5.74%	5.64%	4.71%
EUR hedged ¹	140,000	137,500	127,500	105,000	70,000	27,667
EUR hedge rate $(\%)^2$	5.20%	5.16%	5.24%	5.54%	6.27%	5.21%
CAD hedged ¹	70,000	70.000	70,000	70,000	70,000	47,833
CAD hedge rate $(\%)^2$	4.77%	4.77%	4.77%	4.77%	4.77%	4.77%
Combined fixed debt and swaps
(A\$ equivalent)	2,535,026	2,439,264	2,230,805	2,149,345	1,981,831	1.003,773
Hedge rate (%)	5.53%	5.63%	5.68%	5.58%	5.67%	5.67%

1 Average amounts for the period. Hedged amounts above do not include potential hedges that are cancellable at the counterparty's option.

2 The above hedge rates do not include margins payable on borrowings.

Note 30. Financial Risk Management (continued)

(2) Financial risk management (continued)

(b) Market risk (continued)

Sensitivity on interest expense

The table below shows the impact on unhedged net interest expense (excluding non-cash items) of a 50 basis points increase or decrease in short-term and long-term market interest rates. The sensitivity on cash flow arises due to the impact that a change in interest rates will have on the Trust's floating rate debt and derivative cash flows. Net interest expense is only sensitive to movements in markets rates to the extent that floating rate debt is not hedged.

		Consolidated		Parent Entity
		2009	2008	2009	2008
		$(+/-)$ \$'000	(+/-) \$'000	$(+/-)$ \$'000	(+/-) \$'000
$+/-0.50\%$ (50 basis points)	AUD	613	474	1,567	510
$+/- 0.50\%$ (50 basis points)	USD.	180	804	(1, 146)	(616)
$+/- 0.50\%$ (50 basis points)	EUR	13	52	$\sim$
$+/- 0.50\%$ (50 basis points)	CAD	$\blacksquare$	$\blacksquare$	٠
Total A\$ equivalent		856	1,395	154	(132)

The increase or decrease in interest expense is proportional to the increase or decrease in interest rates.

Sensitivity on fair value of interest rate swaps

The table below shows the impact on the income Statements for changes in the fair value of interest rate swaps for a 50 basis points increase and decrease in short-term and long-term market interest rates. The sensitivity on the fair value arises from the impact that changes in market rates will have on the mark-to-market valuation of the interest rate swaps. The fair value of interest rate swaps is calculated as the present value of estimated future cash flows on the instruments. Cash flows are discounted using the forward price curve of interest rates at the end of the reporting period. Although interest rate swaps are transacted for the purpose of providing the Trust with an economic hedge, the Trust has elected not to apply hedge accounting to its interest rate derivatives. Accordingly, gains or losses arising from changes in the fair value are reflected in the Income Statement.

		Consolidated		Parent Entity
		2009	2008	2009	2008
		$(+/-)$ \$'000	$(+/-)$ \$'000	(+/-) \$'000	(+/-) \$'000
$+/- 0.50\%$ (50 basis points)	AUD	15.026	8.306	(8,665)	(9,010)
$+/-0.50\%$ (50 basis points)	USD	27,651	32,896	5.082	8,430
$+/-0.50\%$ (50 basis points)	EUR	2.651	4.594	$\blacksquare$
$+/- 0.50\%$ (50 basis points)	CAD	2.714	2.704	$\bullet$
Total A\$ equivalent		56,607	52,798	(2, 402)	(252)

(ii) Foreign exchange risk

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

The Trust operates internationally with investments in the United States, New Zealand, France, Germany and Canada. As a result of these activities, the Trust has foreign exchange risk, arising primarily from:

Translation of investments in foreign operations;
Borrowings and cross currency swaps denominated in foreign currencies; and
Earnings distributions and other transactions denominated in foreign currencies.

(2) Financial risk management (continued)

(b) Market risk (continued)

The objective of the Trust's foreign exchange risk management policy is to ensure that movements in exchange rates have minimal adverse impact on the Trust's foreign currency assets and liabilities, and net foreign currency cash flows as outlined below.

Foreign currency assets and liabilities

Exposure to foreign exchange risk is minimised by predominantly matching the currency of the Trust's debt with the currency of its investment to form a natural hedge against movements in exchange rates. This policy reduces the risk that movements in foreign exchange rates will have an adverse impact on security holder's equity and net tangible assets.

Where Australian dollar borrowings are used to fund the foreign currency investment, the Trust may transact cross currency swaps for the purpose of providing an alternate source of foreign currency funding whilst maintaining the natural hedge. In these instances the Trust has committed foreign currency borrowing capacity in place that can replace the foreign currency amounts that are due under the cross currency swaps.

The Trust's net foreign currency exposures for net investments in foreign operations and hedging instruments are as follows:

		Consolidated	Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
USD assets $1$	1,311,445	1,765,567	374,110	312,905
USD net borrowings ²	(966, 477)	(1,293,606)		86,926
USD cross currency swaps ³	(251,700)	(420,000)	(221, 700)	(420,000)
USD denominated net investment	93,268	51,961	152,410	(20, 169)
% hedged	93%	97%	59%	103%
EUR assets ¹	138,675	198,400
EUR net borrowings ²	(39, 305)	(200, 500)
EUR cross currency swaps ³	(100,000)
EUR denominated net investment	(630)	(2, 100)
% hedged	100%	101%
CAD assets ¹	51,600	68,300
CAD net borrowings ²
CAD cross currency swaps 3	(70,000)	(70,000)
CAD denominated net investment	(18, 400)	(1,700)
% hedged	136%	102%
NZD assets ¹	130,000	157,509
NZD net borrowings ²
NZD cross currency swaps 3
NZD denominated net investment	130,000	157,509
% hedged	0%	0%
Total foreign net investment (AUD equivalent)	198,835	173,702	187,839	(20, 953)
Total % hedged	90%	93%	59%	103%

1 Assets exclude working capital and cash as reported internally to management.

2 Net borrowings is equal to interest bearing liabilities less cash. Where there are no interest bearing liabilities, cash is excluded.

3 Cross currency swap amounts comprise the foreign currency denominated leg of the cross currency swaps.

Note 30. Financial Risk Management (continued)

(2) Financial risk management (continued)

(b) Market risk (continued)

Sensitivity on equity (foreign currency translation reserve)

The table below shows the impact on the foreign currency translation reserve for changes in the translated value of foreign currency assets and liabilities for an increase and decrease in foreign exchange rates per currency. The increase and decrease in cents per currency has been based on the historical movements of the Australian dollar relative to each currency¹. The cents per currency has been applied to the spot rates prevailing at 30 June 2009 (see footnote below). The impact on the foreign currency translation reserve arises as the translation of the Trust's foreign currency assets and liabilities are recorded (in Australian Dollars) directly in the foreign currency translation reserve.

			Consolidated		Parent Entity
		2009	2008	2009	2008
		\$'000	\$'000	\$'000	\$'000
+ 15.7 cents (19%) (2008:9.6 cents)	USD (AUD equivalent)	18.636	4,895
- 15.7 cents (19%) (2008:9.6 cents)	USD (AUD equivalent)	(27, 577)	(5,980)
+ 6.4 cents (11%) (2008:6.1 cents)	EUR (AUD equivalent)	(110)	(313)
$-6.4$ cents (11%) (2008:6.1 cents)	EUR (AUD equivalent)	137	383
$+10.0$ cents (8%) (2008:12.6 cents)	NZD (AUD equivalent)	7.615	11,349
$-10.0$ cents (8%) (2008:12.6 cents)	NZD (AUD equivalent)	(8,931)	(13, 869)
$+7.3$ cents (8%) (2008:12.6 cents)	CAD (AUD equivalent)	(1, 417)	(159)
$-7.3$ cents $(8\%)$ $(2008:12.6$ cents)	CAD (AUD equivalent)	1,656	194

1 The sensitivity on market rates has been based on the standard deviation of the annual change in the Australian dollar exchange rate per currency since 1984 or commencement. 2 Exchange rates at 30 June 2009: AUD/USD 0.8114 (2008: 0.9626), AUD/EUR 0.5751 (2008: 0.6096), AUD/NZD 1.2428 (2008: 1.2609), AUD/CAD 0.9379 (2008: 0.9715)

Sensitivity on fair value of cross currency swaps

The table below shows the impact on the Income Statements for changes in the fair value of cross currency swaps for a 50 basis point increase and decrease in market rates. The sensitivity on the fair value arises from the impact that changes in shortterm and long-term market rates will have on the interest rate mark-to-market valuation of the cross currency swaps.¹ The Trust has elected not to apply hedge accounting to its cross currency swaps. Accordingly, gains or losses arising from changes in the fair value are reflected in the Income Statements.

		Consolidated			Parent Entity
		2009	2008	2009	2008
		$(+/-)$ \$'000	$(+/-)$ \$'000	$(+/-)$ \$'000	(+/-) \$'000
$+/- 0.50\%$ (50 basis points)	USD (AUD equivalent)	45	98	42	98
$+/- 0.50\%$ (50 basis points)	EUR (AUD equivalent)	2	$\blacksquare$	$\blacksquare$
$+/- 0.50\%$ (50 basis points)	CAD (AUD equivalent)	91	87	$\blacksquare$
Total A\$ equivalent		138	184	42	98

1 Note the above sensitivity is reflective of how changes in interest rates will affect the valuation of the cross currency swaps. The effect of movements in foreign exchange rates on the valuation of cross currency swaps is reflected in the foreign currency translation reserve sensitivity (above).

Note 30. Financial Risk Management (continued)

(2) Financial risk management (continued)

(b) Market risk (continued)

Net foreign currency denominated cash flows

Foreign exchange risk exists in relation to net cash flows and transactions with foreign operations that are denominated in foreign currencies. This risk is managed through the use of forward foreign exchange contracts (after taking into account the natural hedging through foreign denominated interest expense).

Forward foreign exchange contracts outstanding at 30 June 2009 are as follows:

	2009	2009	2009 Weighted	2008	2008	2008
	To pay US\$ million	To receive A\$ million	average exchange rate	million	To pay US\$ To receive A\$	Weighted average million exchange rate
I year or less Over 1 and less than 2 years More than 2 years	7.3 5.6 9.6	10.6 7.9 13.9	0.6848 0.7084 0.6892	9.5 5.2 17.2	13.9 7.7 17.2	0.6844 0.6725 0.6868

	2009	2009	2009 Weighted	2008	2008	2008
	To pay NZ\$ million	To receive A\$ million	average exchange rate	million	To pay NZ\$ To receive A\$	Weighted average million exchange rate
1 year or less	4.0	3.4	1.1780	7.5	6.6	1.1311
Over 1 and less than 2 years	2.0	1.7	1.1847	4.0	3.4	1.1780
More than 2 years			$\bullet$	2.0	1.7	1.1847

Note 30. Financial Risk Management (continued)

(2) Financial risk management (continued)

(b) Market risk (continued)

Sensitivity on fair value of foreign exchange contracts

The table below shows the impact on the Income Statements for changes in the fair value of forward foreign exchange contracts for an increase and decrease in market rates. The increase and decrease in cents per currency has been based on the historical movements of the Australian dollar relative to each currency¹. The cents per currency has been applied to the spot rates prevailing at 30 June 2009 (see footnote below). The sensitivity on the fair value arises from the impact that changes in market rates will have on the mark-to-market valuation of the forward foreign exchange contracts.

Although forward foreign exchange contracts are transacted for the purpose of providing the Trust with an economic hedge, the Trust has elected not to apply hedge accounting to its forward foreign exchange contracts. Accordingly, gains or losses arising from changes in the fair value are reflected in the Income Statement.

		Consolidated			Parent Entity
		2009	2008	2009	2008
		\$'000	\$'000	\$'000	\$'000
+ 15.7 cents (19%) (2008:9.6 cents)	USD (AUD Equivalent)	4.277	2.720	2.100	1.333
$-15.7$ cents (19%) (2008:9.6 cents)	USD (AUD Equivalent)	(6,329)	(3,327)	(3, 108)	(1,630)
$+10.0$ cents (8%) (2008:12.6 cents)	NZD (AUD Equivalent)	347	(883)
$-10.0$ cents $(8%)$ $(2008.12.6$ cents)	NZD (AUD Equivalent)	(408)	(1,080)	٠

(iii) Price risk

The Trust is exposed to equity securities price risk from equity securities and derivative financial instruments that the Trust transacts. Equity securities price risk is subject to a number of risks. The key risk variable is the quoted market price of equity securities which are affected by a number of factors largely out of the control of the Trust. The Trust does not use financial instruments to hedge the price risk.

As at 30 June 2009, the Trust does not have a material exposure to price risk.

(c) Credit risk

Credit risk is the risk of loss to the Trust in the event of non-performance by the Trust's financial instrument counterparties. Credit risk arises from cash and cash equivalents, loans and receivables, and derivative financial instruments. The Trust and parent entity have exposure to credit risk on all financial assets.

The Trust manages this risk by:

adopting a process for determining an approved counterparty, with consideration of qualitative factors as well as the counterparty's rating:
regularly monitoring counterparty exposure within approved credit limits that are based on the lower of a S&P, Moody's and Fitch credit rating. The exposure includes the current market value of in-the-money contracts as well as potential exposure, which is measured with reference to credit conversion factors as per APRA quidelines:
entering into ISDA Master Agreements once a financial institution counterparty is approved;
ensuring tenants, together with approved credit limits, are approved and ensuring that leases are undertaken with a $\mathbf{r}$ large number of tenants;
for some trade receivables, obtaining collateral where necessary in the form of bank guarantees and tenant bonds; and
regularly monitoring loans and receivables on an ongoing basis.

A minimum S&P rating of A- (or Moody's or Fitch equivalent) is required to become or remain an approved counterparty. As at 30 June 2009, the lowest rating of counterparties the Trust is exposed to was A (S&P).

Note 30. Financial Risk Management (continued)

(2) Financial risk management (continued)

(c) Credit risk (continued)

Financial instrument transactions are spread among a number of approved financial institutions within specified credit limits to minimise the Trust's exposure to any one counterparty. As a result, there is no significant concentration of credit risk for financial instruments.

The maximum exposure to credit risk at 30 June 2009 is the carrying amount of financial assets recognised on the Balance Sheets of the Trust and parent entity.

As at 30 June 2009, the Trust and the parent have no significant concentrations of credit risk for trade receivables. Trade receivable balances and the credit quality of trade debtors are consistently monitored on an ongoing basis. As a result, the Trust and parent entity's exposure to bad debts is not significant.

For the consolidated entity, the ageing analysis of loans and receivables net of provisions at 30 June 2009 is (\$'000): 31,479.1 (0-30 days), 1,897.2 (31-60 days), 979.5 (61-90 days), 1,460.4 (91+ days). The ageing analysis of loans and receivables net of provisions at 30 June 2008 is (\$'000): 32,014.9 (0-30 days), 1,313.1 (31-60 days), 702.6 (61-90 days), 2,456.4 (91+ days)). Amounts over 31 days are past due, however, no receivables are impaired.

For the parent entity, the ageing analysis for loans and receivables net of provisions at 30 June 2009 is (\$'000): 17,343.9 (0-30 days), 39.2 (31-60 days), 25.1 (61-90 days), 344.0 (91+ days). The ageing analysis of loans and receivables net of provisions for the parent entity at 30 June 2008 is (\$'000): 8,124.3 (0-30 days), 123.7 (31-60 days), 37.6 (61-90 days), 133.4 (91+ days). Amounts over 31 days are past due, however, no receivables are impaired.

The credit quality of financial assets that are neither past due nor impaired is consistently monitored to ensure that there are no adverse changes in credit quality.

Note 30. Financial Risk Management (continued)

(2) Financial risk management (continued)

(d) Fair value of financial instruments

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 interest rates.

At 30 June 2009, the carrying amounts and fair value of financial assets and liabilities are shown as follows:

		Consolidated		Consolidated
	2009	2009	2008	2008
	Carrying		Carrying
	amount ¹	Fair value ²	amount ¹	Fair value ²
	\$'000	\$'000	\$000	\$'000
Financial assets
Cash and cash equivalents	84,845	84,845	99,214	99,214
Loans and receivables (current)	35,816	35,816	36,457	36,457
Derivative assets	205,491	205,491	191,162	191,162
Total financial assets	326,152	326,152	326,833	326,833
Financial liabilities
Trade payables	98,410	98,410	118,396	118,396
Derivative liabilities	386,224	386,224	97,078	97,078
Interest bearing liabilities
Multi-option facilities	539,290	539,290	861,521	861,521
Multi-option syndicated facilities	389,973	389,973	466,539	466,539
Secured term facilities	250,000	250,000
US senior notes	492,975	530,175	415,542	438,050
Commercial mortgage backed securities			500,000	494,108
Medium term notes	456,436	482,797	455,425	445,510
Other	390,622	411,735	314,933	318,913
Preference shares	114	114	96	96
Total financial liabilities	3,004,044	3,088,718	3,229,530	3,240,211

	Parent		Parent
	2009 Carrying	2009	2008 Carrying	2008
	amount '	Fair value ²	amount	Fair value ²
	\$'000	\$'000	\$'000	\$'000
Financial assets
Cash and cash equivalents	27,268	27.268	31.004	31,004
Loans and receivables (current)	17,752	17.752	8,419	8,419
Derivative assets	97,805	97.805	70,059	70,059
Intercompany loans	408,583	408,583	119,533	119,533
Total financial assets	551,408	551,408	229,015	229,015
Financial liabilities
Trade payables	19,503	19,503	13.968	13,968
Derivative liabilities	149,545	149,545	43,429	43,429
Intercompany loans			34,332	34,332
Total financial liabilities	169,048	169,048	91,729	91,729

1 Carrying value is equal to the value of the financial instruments on the balance sheet.

2 Fair value is the amount for which the financial instrument could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction, however, not recognised on the balance sheet.

Note 30. Financial Risk Management (continued)

(2) Financial risk management (continued)

(d) Fair value of financial instruments (continued)

The fair value of fixed rate interest bearing liabilities have been determined by discounting the expected future cash flows by the relevant market rates. The discount rates applied range from 0.60% to 4.71% for USD and 3.08% to 4.78% for AUD. Refer note 1(w) for fair value methodology for financial assets and liabilities.

Note 31. Contingent liabilities

Details and estimates of maximum amounts of
contingent liabilities are as follows:	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Bank guarantees by the Trusts in respect of variations and other financial risks associated with the development of:
60 Miller Street, North Sydney, NSW	497	496
Atlantic Corporate Park, Sterling, Virginia, USA	1.359	1.596
San Antonio properties	841	709
Bligh Street, Sydney, NSW ¹	3,820	3.820
Albert Street, Brisbane, QLD	2,000		2,000
Beaumeade, Ashburn, Norther Virginia, USA	1,028
Total contingent liabilities	9,545	6,621	2.000

1 Bank guarantee held in relation to an equity accounted investment. (Refer Note 16)

The Trust together with DIT, DOT and DXO is also a guarantor of a A\$300.0 million and US\$210.0 million syndicated bank debt facility and a total of A\$1,182.5 million and US\$120.0 million (A\$147.9 million) of bank bi-lateral facilities, a total of A\$450.0 million of medium term notes and a total of US\$400.0 million (A\$493.0 million) of privately placed notes, which have all been negotiated to finance the Trust and other entities within DXS. The guarantees have been given in support of debt outstanding and drawn against these facilities.

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

The Directors of the Responsible Entity are not aware of any other contingent liabilities in relation to the Trust, 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 32. 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 development works:

development works:	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Not longer than one year
3 Brookhollow Avenue, Norwest, NSW	421	227
10-16 South Street Rydalmere, NSW		189
5-13 Rosebery Avenue, Rosebery, NSW		200
Egerton Street, Silverwater, NSW		475
Boundary Road, Laverton North, VIC		6,890
Pound Road West, Dandenong, VIC		1,257
Governor Phillip Tower & Governor Macquarie Tower
Office Complex 1 Farrer Place, Sydney, NSW	3,310	39
309-321 Kent Street, Sydney, NSW		163
Southgate Complex, 3 Southgate Avenue, Southgate,
VIC	74	203
Westinghouse Boulevard, Charlotte		87
O'Hare, Chicago		347
Kenwood Road, Cincinnati	276	203
Turfway Road, Cincinnati		141.
SE, Columbus		460
Capital Avenue Dallas Regency Crest Drive, Dallas	193	31
Summit Avenue, Dallas		26
10th Street, Dallas	100 63
Avenue F, Dallas		222
CTC @ Valwood, Dallas	26
Glendale, Los Angeles		264
Lexington Avenue, Minneapolis	28	126
Mounds View, Minneapolis	12	856
Trenton Lane, Minneapolis	25	557
Braemar Ridge, Minneapolis		17
Eagandale Business Campus, Minneapolis	179	114
Alexandria, North Virginia		838
Nokes Boulevard, Northern Virginia	1,232
West Alameda Drive, Phoenix	59	96
44th Avenue, Phoenix		73
South Priest Drive, Phoenix		105
East University, Phoenix	308	348
South 41st Avenue, Phoenix	211	205
South 40th Avenue, Phoenix		208
South 55th Avenue, Phoenix	468
South 9th Street, Phoenix	136
Chino, Riverside	48
Interchange South, San Antonio	128

$\hat{\mathcal{A}}$

Note 32. Commitments (continued)

(a) Capital commitments (continued)

Capital expenditure commitments in relation to development works:

development works:	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Not longer than one year
5823 Newton Drive, San Diego	338
Kent West, Seattle		277
Southern Employment Lands, Greystanes	27,174	63,848
Australia Square Complex, 264 - 278 George Street,
Sydney, NSW	68
180 Flinders Lane, Melbourne, VIC	752		752
189 Flinders Lane, Melbourne, VIC	169	340	169	340
8 Nicholson Street, Melbourne, VIC		255		255
The Zenith, 821-843 Pacific Highway, Chatswood,
NSW	197	1,191
60 Miller Street, North Ryde, NSW	195	10,921
144 Wicks Road, North Ryde, NSW		325
14 Moore Street, Canberra, ACT	441		441
44 Market Street, Sydney, NSW	830		830
123 Albert Street, Brisbane QLD	122,565	57,293	108,110	57,293
	160,026	149,417	110,302	57,888
Later than one year but no later than five years
Governor Phillip Tower & Governor Macquarie Tower
Office Complex 1 Farrer Place, Sydney, NSW	1,532	7,664
Southgate Complex, 3 Southgate Avenue, Southgate,
VIC	1,066
Southern Employment Lands, Greystanes		27,174
44 Market Street, Sydney, NSW	1,160		1,160
123 Albert Street, Brisbane, QLD	50,657	148,767	65,112	148,767
	54.415	183,605	66,272	148,767

214,441

333,023

176,574

206,655

Total capital commitments

Note 32, Commitments (continued)

(b) Lease payable commitments

Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities novoblo

payable:	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$ 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	6.680	6,970	6.680	6,970
Total lease payable commitments	8,132	8.422	8.132	8,422

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 2009 (2008: \$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

The future minimum lease payments receivable by

the Trusts are:	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Within one year	526.791	457.594	91,732	90.728
Later than one year but not later than five years	1.725.306	1.447.477	287.312	291,568
Later than five years	794,480	666,413	163,684	187,665
Total lease receivable commitments	3,046,577	2.571.484	542,728	569,961

Note 33. Related parties

Responsible Entity

DXFM is the Responsible Entity of the Trusts.

DXFM is also the Responsible Entity of Abbotsford Property Trust, Abbotsford Property Investment Trust, Gordon Property Trust, Gordon Property Investment Trust, Northgate Property Trust and Northgate Property Investment Trust (collectively known as "the Syndicates"). On 29 June 2008, Abbotsford Property Trust and Abbotsford Property Investment Trust were wound up.

DXH is the parent entity of DEXUS Wholesale Property Limited (DWPL), the Responsible Entity for DWPF.

Responsible Entity fees

Under the terms of the Trusts' Constitutions, the Responsible Entity is entitled to receive fees in relation to the management of the Trusts. DXFM's parent entity, DXH is entitled to be reimbursed for administration expenses incurred on behalf of the Trusts. DEXUS Property Services Pty Limited (DXPS), a wholly owned subsidiary of DXH is entitled to property management fees from the Trusts.

Investments

On 21 February 2008, DXO purchased the remaining 50% interest in DXH from FAP. Deutsche Bank and RREEF ceased to be a related party on this date. As a result amounts shown in the current period are nil and amounts shown in the prior period reflect transactions from 1 July 2007 to 20 February 2008.

Note 33. Related parties (continued)

Related party transactions

Prior to DXO's acquisition of the remaining 50% interest in DXH on 21 February 2008, all related party transactions were conducted on normal commercial terms and conditions unless otherwise stated. Following the acquisition, Responsible Entity fees in relation to DXS assets moved to cost recovery as reflected in the parent entity's transactions with DXFM. All agreements with third party funds remain unchanged.

DEXUS Funds Management Limited and its related entities

On 21 February 2008 DXO purchased the remaining 50% interest in DXH (DXFM's parent entity) from FAP. As a result DXH became a wholly owned entity of DXS with all inter company related party transactions being eliminated on consolidation in the current period. Amounts shown in the prior period reflect transactions from 1 July 2007 to 20 February 2008.

	Consolidated		Parent Entity
	2009	2008	2009	2008
	s	\$	S	\$
Responsible Entity fees paid and payable		21,869,324	6,358,061	9,397,076
Loan note interest earned from DXH	۰	3.693.880
Property management fees to DXPS	۰	8.400.054	2,409,931	736,069
Recovery of administration expenses paid to DXH		4.952.925	4,269,966	1,188,892
Aggregate amounts payable to the Responsible Entity at reporting date			520.758	504,613
Property management fees payable at reporting date			667.500	581,988
Administration expenses payable at reporting date			381,051

DEXUS Wholesale Property Fund¹

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$	\$	s	\$
Responsible Entity fee income	16.164,383	6,200,512
Property management fee income	5,800,897	993,255
Recovery of administration expenses	674,901	797.068
Aggregate amount receivable at reporting date	1,324,213	1.853.954
Property management fees receivable at reporting date	527,970	193.673	$\blacksquare$
Administration expenses receivable at reporting date	191.249	56,428	-

The Syndicates¹

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$	\$	\$	\$.
Responsible Entity fee income	1.722.262	742.994	۰
Property management fee income	1,830,192	235.080
Recovery of administration expenses	196.541	300,100	$\blacksquare$
Aggregate amount receivable at reporting date	609.967	329,230	$\blacksquare$
Property management fees receivable at reporting date	91.106	98.885
Administration expenses receivable at reporting date	58.371	-

1 Amounts in 2008 reflect transactions between 21 February 2008 and 30 June 2008.

Note 33. Related parties (continued)

Bent Street Trust¹

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$	\$	\$	\$
Property management fee income	5,418,913	6,400,740	٠
Recovery of administration expenses	17,928	18,286	۰
Aggregate amount receivable at reporting date	$\blacksquare$	3,446,957	٠
Administration expenses receivable at reporting date	$\blacksquare$	16.685	٠

1 Amounts in 2008 reflect transactions between 21 February 2008 and 30 June 2008.

RREEF

On 21 February 2008, DXO purchased the remaining 50% interest in DXH from FAP. RREEF (a subsidiary of Deutsche Bank and fund manager of DEXUS Industrial Properties, Inc.) ceased to be a related party on this date. As a result amounts shown in the current period are nil and amounts shown in the prior period reflect transactions from 1 July 2007 to 20 February 2008.

	Consolidated		Parent Entity
	2009	2008	2009	2008
	\$	\$	\$	\$
Investment management fee	$\blacksquare$	2,174,822
Asset management fee	$\blacksquare$	229,230
Acquisition fee	$\blacksquare$	3,245,899
Property management fees	۰	3,081,512
Construction supervision fee	٠	622,598
Development fees	$\blacksquare$	1,444,421
Leasing commissions	٠	1,772,242
Performance fees	۰	64,411

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. On 21 February 2008, DXO purchased the remaining 50% interest in DXH from FAP, a subsidiary of Deutsche Bank. Deutsche Bank ceased to be a related party on this date. As a result amounts shown in the current period are nil and amounts shown in the prior period reflect transactions from 1 July 2007 to 20 February 2008.

	Consolidated		Parent Entity
	2009	2008	2009	2008
	S	\$	S	\$
Deutsche Bank AG in its capacity as a financier:
Interest paid on swaps for whom the counterparty was
Deutsche Bank AG	$\blacksquare$	9,955,000		226,271
Interest and financing fees on borrowings to Deutsche
Bank AG		431,000
Proceeds from Borrowings from Deutsche Bank AG	۰	7,033,000
Loan repayment to Deutsche Bank AG		10.650.755
Interest received on swaps for whom the counterparty
was Deutsche Bank AG	$\blacksquare$	10,315,000		870,762
Other transactions with Deutsche Bank AG:
Interest paid and payable to FAP		814.000
Purchase of DXH shares		79,829,700
Redemption of loan notes	۰	51,936,300
Dividends paid	۰	5,974,000

Note 33. Related parties (continued)

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

Directors

C T Beare, BSc, BE (Hons), MBA, PhD, FAICD^1,4,5
E A Alexander AM, BComm, FCA, FAICD. FCPA^1,2,6,8,9
B R Brownjohn, BComm^1,2,5,6
S F Ewen OAM, FILE^1,4
V P Hoog Antink, BCom, MBA, FCA, FAPI, FRICS, MAICD
C B Leitner III, BA¹⁷
B E Scullin, BEc^1,3,4,7,10
A J Fay, BAg.Ec (Hons), ASIA (Alternate to C B Leitner III)¹⁷
P St George, MBA^11,14,15,16

JC Conde AO, BE (Hons), BSc, BE(Hons), MBA^12,13,16

$\overline{1}$ Independent Director $\overline{2}$
Audit Committee Member $\overline{\mathbf{3}}$
Compliance Committee Member $\overline{4}$
Nomination and Remuneration Committee Member 5
Finance Committee Member 6
Risk Committee Member $\overline{7}$
Audit Committee Member from 1 July 2008 to 1 May 2009
$\overline{8}$ Compliance Committee Member from 1 July 2008 to 1 May 2009 $\mathbf{9}$
Finance Committee Member from 1 July 2008 to 1 May 2009
10 Risk Committee Member from 1 July 2008 to 1 May 2009
$11$ Audit Committee Member from 1 May 2009 to 30 June 2009
¹² Compliance Committee Member from 1 May 2009 to 30 June 2009
¹³ Nomination & Remuneration Committee Member from 1 May 2009 to 30 June 2009
¹⁴ Finance Committee Member from 1 May 2009 to 30 June 2009
¹⁵ Risk Committee Member from 1 May 2009 to 30 June 2009
¹⁶ Appointed Independent Director 29 April 2009
¹⁷ Resigned 29 April 2009

No directors held an interest in the Trust as at 30 June 2009 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:

Qualification date of other key

		management personnel during the
Name	Position	12 months ended 30 June 2009
Victor P Hoog Antink	Chief Executive Officer
Tanya L Cox	Chief Operating Officer
Pat A Daniels	Head of Human Resources
John C Easy	General Counsel
Jane Lloyd	Head of Retail	14 July 2008
Louise J Martin	Head of Office
Craig D Mitchell	Chief Financial Officer
Paul G Say	Head of Corporate Development
Mark F Turner	Head of Unlisted Funds
Andrew P Whiteside	Head of Industrial

Note 33. Related parties (continued)

Other key management personnel (continued)

No key management personnel or their related parties held an interest in the Trust for the years ended 30 June 2008 and 30 June 2009 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 2008 and 30 June 2009 or at the date of this report.

	2009	2008
		\$
Compensation
Short-term employee benefits	7,911,223	6,891,605
Post-employment benefits	563,665	400.153
Other long-term benefits	1,509,929	3,290,638
	9,984,817	10,582,396

The Trust has shown the detailed remuneration disclosures in the Directors' Report. The relevant information can be found in section 3 of the Directors' Report on pages 3 to 17.

Note 34. Business Combinations

(a) Summary of acquisition

There were no transactions or events resulting in a business combination in the current period to 30 June 2009.

During the prior period, on 21 February 2008, DXO acquired the remaining 50% interest in DXH. Prior to this acquisition DXO held a 50% share in DXH and accounted for DXH on an equity accounting basis. The acquisition of the remaining 50% has resulted in DXO effectively controlling DXH and thus this acquisition was accounted for as a 'business combination achieved in stages' as described in AASB 3 Business Combinations. The acquisition resulted in goodwill of \$2.998 million.

The acquired business contributed revenues of \$37.428 million and net profit of \$2.278 million to the Trusts for the period from 21 February 2008 to 30 June 2008. If the acquisition had occurred on 1 July 2007, consolidated revenue and consolidated profit for the year ended 30 June 2008 would have been \$943.197 million and \$441.169 million respectively. These amounts have been calculated using the Trusts' accounting policies.

Note 34. Business Combinations (continued)

(a) Summary of acquisition (continued)

2008
\$'000
79,830
768
80,598
77,600
2,998

(b) Purchase consideration

		Consolidated		Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration		79,830	-
Less: Cash balances acquired	$\blacksquare$	12,486	$\sim$
Outflow of cash	$\blacksquare$	67.344	$\blacksquare$

1 Represents consideration for the remaining 50% of DXH shares. In addition to this \$51,936,300 of loan notes were repaid resulting in total cash outlay of \$131,766,000.

Page 88 of 97

Note 34. Business Combinations (continued)

(c) Assets and liabilities acquired

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

	Acquiree's carrying
	amount	Fair value
	\$'000	\$'000
Property plant and equipment	4,529	4.529
Deferred tax assets	1.467	1.467
Intangible assets - management rights	125,796	252,382
Other non-current assets	40	40
Cash and cash equivalents	12,486	12,486
Receivables	22,688	22,688
Other current assets	877	877
Provisions	(14, 556)	(14, 556)
Payables	(13,360)	(13,360)
Interest bearing liabilities	(111,353)	(111,353)
Net assets	28,614	155,200

Identifiable net assets acquired

77,600

Note 35. Events occurring after reporting date

On 31 July 2009, DWPF purchased a further 1.53% of Bent Street Trust from DCT for \$3.3 million.

Subsequent to the reporting date, DXF issued \$160.0 million of medium term notes with a maturity of July 2014.

Subsequent to the reporting date, DDF exchanged sales contracts on six separate lots at Redwood Gardens Industrial Estate, Dingley for total consideration of \$6.6 million. The settlement of these property sales will occur between August and November 2009.

On 8 July 2009, 68 Hasler Rd, Herdsman was settled for consideration of \$11.3 million.

On 3 July 2009, DIT US Whirlpool Trust acquired 6241 Shook Road, Columbus, Ohio for a consideration of US64.5 million (A\$79.5 million).

On 23 July 2009, 3-7 Bessemer St, Blacktown was settled for consideration of \$9.1 million.

On 27 July 2009, DIT GLOG Trust disposed of Nordstrasse 102708, Löbau, Germany for a consideration of Eur 1.0 million (A\$1.7 million).

In July 2009, DXO entered into an unconditional contract to sell 343 George St, Sydney for \$55.0 million. Settlement is to occur in October 2009. The property has been reclassified as held for sale at 30 June 2009.

Since the end of the year, other than the matter discussed above, the Directors are not aware of any matter or circumstance not otherwise dealt with in their Directors' Report or the Financial Statements that has significantly or may significantly affect the operations of the Trusts, the results of those operations, or state of the Trusts' affairs in future financial periods.

Note 36. Segment information

Business segments

The Trusts operate in the following segments:
Retail – investment in the retail property sector;
Office and car park – investment in the office and car park property sectors; and
Industrial – investment in the industrial p

2009	Retail	Office & Car Park	Industrial	Eliminations / unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue	23,312	332,950	353,626	(1, 382)	708,506
Interest revenue	159	855	577	1,634	3,225
Management fees				63,663	63,663
	23,471	333,805	354,203	63,915	775,394
Share of net profits / (losses) of associates accounted
for using the equity method		31			31
Net foreign exchange gain / (loss)		355	1,824		2,179
Other income		195	19	121	335
Total segment revenue/income	23,471	334,386	356,046	64,036	777,939
Segment result	4,962	(409, 536)	(772, 545)	(281, 992)	(1,459,111)
Segment assets	271,302	4,079,395	3,539,815	460,599	8,351,110
Segment liabilities	4,430	1,071,691	1,696,101	432,672	3,204,893
Non current assets classified as held for sale		55,000	41,150		96,150
Investment accounted for using the equity method		84,165			84,165
Additions to property plant and equipment		61,514	116,487	1,460	179,461
Net (loss)/gain on sale of investment properties		(541)	(1,289)	(50)	(1,880)
Net loss on sale of investment		(534)			(534)
Net fair value (loss)/gain of investment properties	(11, 282)	(588, 649)	(917, 349)	(284)	(1,517,564)
Impairment		(15, 675)	(111, 214)	(41, 280)	(168, 169)
Net fair value (loss) of derivatives				(21, 209)	(21, 209)
Incentive amortisation expense	392	30,529	16,321		47,242
Other non-cash expenses		(4, 176)		(566)	(4, 742)

Note 36. Segment information (continued)

Business segments (continued)

2008	Retail	Office & Car Park	Industrial	Eliminations / unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue	35,673	323,501	306,304	(647)	664,831
Interest revenue	136	1,034	4,634	2,330	8,134
Management fees				26,760	26,760
Share of net profits / (losses) of associates accounted
for using the equity method	3,629	(4,055)		2,893	2,467
	39,438	320,480	310,938	31,336	702,192
Net (loss)/gain on sale of investment properties	(3, 114)	(476)	5.887		2,297
Net fair value gain/(loss) of investment properties	3,058	268,356	(86, 695)	(275)	184,444
Net fair value (loss) of derivatives				(3,503)	(3,503)
Net foreign exchange gain / (loss)				3,442	3,442
Other income		4	129	1,120	1,253
Total segment revenue/income	39,382	588,364	230,259	32,120	890,125
Segment result	24,013	509,152	46,933	(141, 821)	438,277
Segment assets	281,958	4,736,899	4,096,314	233,816	9,348,987
Segment liabilities	2,295	1,249,601	2,424,004	(161, 966)	3,513,934
Investment accounted for using the equity method		111,946			111,946
Acquisition of investment properties		2,800	314,965		317,765
Additions to property plant and equipment		22,368	162,245	6,686	191,299
Incentive amortisation expense	952	29,404	11,678		42,034
Other non-cash expenses		2,796		267	3,063

Geographical segments

$\bar{z}$

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

2009
	Australia \$'000	New Zealand \$'000	United States \$'000	France \$'000	Germany \$'000	Canada \$'000	Consolidated \$'000
Rental and other property income	480.090	10.047	183.337	8,093	21,586	5,353	708,506
Segment assets	6.250.592	105.507	1,639,215	62,197	213.029	80,571	8,351,110
Additions to property plant and equipment	151.153	$\blacksquare$	28,308	$\blacksquare$	۰	$\bullet$	179.461

Note 36. Segment information (continued)

Geographical segments (continued)

$\overline{\mathbf{t}}$

2008

	Australia	New Zealand	United States	France	Germany	Canada	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Rental and other
property income	478.574	9.807	146.570	9.396	17.887	2,597	664.831
Segment assets	6,844,831	124.484	1.968.077	99,390	231,065	81.140	9,348,987
Acquisitions of investment properties	$\blacksquare$	٠	241,175	$\blacksquare$	۰	76,590	317.765
Additions to property plant and equipment	120,813		70.486			۰	191,299

Note 37. Reconciliation of net profit to net cash inflow from operating activities

(a) Reconciliation

		Consolidated	Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$'000
Net (loss)/profit	(1,455,416)	445,261	(360, 986)	85,804
Capitalised interest	(35,050)	(17,949)	(8,020)	(6, 141)
Depreciation and amortisation	4.743	3,002
Impairment	168,168	61
Net decrement/(increment) on revaluation of investments	1,517,564	(184, 444)	341,251	65,784
Share of net profits of associates accounted for using the equity method	(31)	(2,467)
Net fair value (loss)/gain of derivatives	21.209	3,503	5,753	2,203
Net fair value loss/(gain) of interest rate swaps	222,468	69,561	9,138	31,869
Net loss/(gain) on sale of investment properties	1,880	(2,297)	1,330	5,743
Net loss on sale of investment	534
Net foreign exchange loss/(gain)	(2, 179)	30,597	153,701	(9, 515)
Provision for doubtful debts	3,000	(290)	20
Change in operating assets and liabilities
Decrease/(increase) in receivables	(2, 389)	460	(9, 353)	11,078
Decrease/(increase) in prepaid expenses	(4, 246)	(3,554)	(1, 424)	1,132
Decrease/(increase) in other non-current assets -
investments	35,794	78,375	4,509	(45, 562)
Decrease/(increase) in other current assets	(5,631)	23,758	9,650
Decrease/(increase) in other non-current assets	(1.176)	(85,989)	(329)	237
Decrease/(increase) in payables	(12, 944)	1,282	4,362	2,544
Decrease/(increase) in current liabilities	(355)	(21, 785)		(3, 569)
Decrease/(increase) in other non-current liabilities	4,456	31,624	(82)	8,775
Decrease/(increase) in deferred tax liabilities	(100,822)	5,736
Net cash inflow from operating activites	359,577	374,445	149,520	150,382

(b) Capital expenditure on investment properties

Payments for capital expenditure on investment properties includes \$86.9 million (2008: \$90.8 million) of maintenance and incentive capital expenditure. $\hat{\mathcal{A}}$

$\bar{\lambda}$

Note 38. Non-cash financing and investing activities

	Note	Consolidated		Parent Entity
		2009	2008	2009	2008
		\$'000	\$'000	\$'000	\$'000
Distributions reinvested	26	100.420	243,678	47.912	146,305

Note 39. Earnings per unit

Earnings per unit are determined by dividing the net profit attributable to equity holders by the weighted average number of ordinary units outstanding during the year. The weighted average number of units has been adjusted for the bonus elements in units issued during the year and comparatives have been appropriately restated.

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

	Consolidated		Parent Entity
	restated		restated
2009	2008	2009	2008
cents	cents	cents	cents
(8.11)	2.64	(9.74)	2.72

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

. . . Consolidated		Parent Entity
	restated		restated
2009	2008	2009	2008
cents	cents	cents	cents
(8.11)	2.64	(9.74)	2.72

(c) Basic earnings per unit on (loss)/profit attributable to stapled security holders

	×	Consolidated
	. .	restated
٠.	2009	2008
	cents	cents

	(39.38) Contract Contract	13.88

(d) Diluted earnings per unit on (loss)/profit attributable to stapled security holders

Consolidated
	restated
2009	2008
cents	cents
(39.38)	13.88

Note 39. Earnings per unit (continued)

(e) Reconciliation of earnings used in calculating earnings per unit

	Consolidated			Parent Entity
	2009	2008	2009	2008
	\$'000	\$'000	\$'000	\$000
Net (loss)/profit	(1,455,416)	445,261	(360, 986)	85,804
Net loss/(profits) attributable to equity holders of other stapled
entities (minority interests)	1,158,625	(354, 807)
Net (profit) attributable to other minority interests	(3,695)	(6,984)
Net profit attributable to the unitholders of the Trust used in
calculating basic and diluted earnings per unit	(300, 486)	83,470	(360, 986)	85,804
(f) Weighted average number of units used as a denominator
	Consolidated			Parent Entity
	2009	2008	2009	2008
		restated		restated
	securities	securities	units	units
Weighted average number of units outstanding used in calculation of
basic and diluted earnings per unit	3,705,637,381	3,156,757,941	3,705,637,381	3,156,757,941

Page 94 of 97

The Directors of DEXUS Funds Management Limited as Responsible Entity DEXUS Diversified Trust (the Trust) declare that the Financial Statements and notes set out on pages 23 to 94:

$(i)$ comply with applicable Australian Equivalents to International Financial Reporting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
$(ii)$ give a true and fair view of the consolidated entity's financial position as at 30 June 2009 and of their performance, as represented by the results of their operations and their cash flows, for the year ended on that date.

In the Directors' opinion:

the Financial Statements and notes are in accordance with the Corporations Act 2001; $(a)$
$(b)$ there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and
the Trust has operated in accordance with the provisions of the Constitution dated 15 August 1984 (as amended) $(c)$ during the year ended 30 June 2009.

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

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

Christopher T Beare Chair Sydney 17 August 2009

PricewaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Svdnev Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au

Independent auditor's report to the stapled security holders of DEXUS Diversified Trust

Report on the financial report

We have audited the accompanying financial report of DEXUS Diversified Trust (the Trust), which comprises the balance sheet as at 30 June 2009, and the income statement, statement of changes in equity and cash flow statement for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors' declaration for both DEXUS Diversified Trust and the DEXUS Diversified Trust Group (the consolidated entity). The consolidated entity comprises the Trust and the entities it controlled at the year's end or from time to time during the financial year.

Directors' responsibility for the financial report

The directors of DEXUS Funds Management Limited, as responsible entity of the Trust, are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that compliance with the Australian equivalents to International Financial Reporting Standards ensures that the financial report, comprising the financial statements and notes, complies with International Financial Reporting Standards.

Auditor's responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

Our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

Our audit did not involve an analysis of the prudence of business decisions made by directors or management.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

PRICEWATERHOUSE COPERS

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor's opinion

In our opinion:

the financial report of DEXUS Diversified Trust is in accordance with the Corporations Act 2001, including: $(a)$
giving a true and fair view of the Trust's and consolidated entity's financial position as at 30 June $(i)$ 2009 and of their performance for the year ended on that date; and
complying with Australian Accounting Standards (including the Australian Accounting $(i)$ Interpretations) and the Corporations Regulations 2001; and
the financial report also complies with International Financial Reporting Standards as disclosed in Note 1. $(b)$

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 3 to 17 of the directors' report for the year ended 30 June 2009. The directors of the responsible entity are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Auditor's opinion

In our opinion, the Remuneration Report of DEXUS Diversified Trust for the year ended 30 June 2009, complies with section 300A of the Corporations Act 2001.

Matters relating to the electronic presentation of the audited financial report

This auditor's report relates to the financial report and remuneration report of DEXUS Diversified Trust (the Trust) for the year ended 30 June 2009 included on DEXUS Diversified Trust's web site. The directors of the responsible entity, DEXUS Funds Management Limited, are responsible for the integrity of the DEXUS Diversified Trust web site. We have not been engaged to report on the integrity of this web site. The auditor's report refers only to the financial report and remuneration report named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements or the remuneration report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report and remuneration report to confirm the information included in the audited financial report and remuneration report presented on this web site.

PricewateMonseCeopers

PricewaterhouseCoopers

JEDUU JA Dunning

Partner

17 August 2009

AI assistant

DEXUS — Annual Report 2009

64807_rns_2009-08-17_6ccd678b-9e15-4017-93ea-28ede680ca12.pdf

DEXUS Property Group, ASX: DXS Annual results for the period ending 30 June 2009

Results for Announcement to the Market

DEXUS Property Group ARSN 089 324 541

Financial report for the year ended 30 June 2009

Distribution Reinvestment Plan (DRP)

Associates and Joint Ventures

Results commentary

offset by:

offset by:

offset by:

Financial Statements

Notes

FINANCIAL STATEMENTS DEXUS DIVERSIFIED TRUST

(ARSN 089 324 541)

ANNUAL FINANCIAL REPORT 30 JUNE 2009

1. Directors and Secretaries

1.1 Directors

1.2 Company Secretaries

Tanya L Cox MBA MAICD FCIS (Company Secretary)

1.2 Company Secretaries (continued)

John C Easy B Comm LLB ACIS (Company Secretary)

2. Attendance of Directors at Board meetings and Board Committee meetings

2. Attendance of Directors at Board meetings and Board Committee meetings (continued)

3. Remuneration Report

1. Introduction

Key management personnel

3. Remuneration Report (continued)

1. Introduction (continued)

Key management personnel (continued)

2. Board oversight of remuneration

3. Non-Executive Directors' remuneration framework

3. Non-Executive Directors' remuneration framework (continued)

4. Approach to Executive remuneration

Philosophy underlying Executive remuneration

3. Remuneration Report (continued)

4. Approach to Executive remuneration (continued)

(a) Market competitiveness and reasonableness

(b) Alignment of Executive performance payments with achievement of the Group's objectives

3. Remuneration Report (continued)

4. Approach to Executive remuneration (continued)

(c) Target mix of remuneration

Executive remuneration structure

4. Approach to Executive remuneration (continued)

Performance payments

Short term performance payment (STPP)

Long term performance payment (LTPP)

Equity options scheme

Equity and loan schemes

Hedging policy

3. Remuneration Report (continued)

5. Executive remuneration arrangements for the year ended 30 June 2009

Changes made during the year ended 30 June 2009

Remuneration structure

Long Term Incentive Plan review

Termination provisions

Total fixed remuneration

3. Remuneration Report (continued)

5. Executive remuneration arrangements for the year ended 30 June 2009 (continued)

Performance payments

6. Group performance and the link to remuneration

Total return analysis

3. Remuneration Report (continued)

6. Group performance and the link to remuneration (continued)

Total return of DEXUS securities

7. Service agreements

CEO - Victor P Hoog Antink

Executives (other than the CEO)

8. Remuneration of key management personnel

8. Remuneration of key management personnel (continued)

Long term performance payments

3. Remuneration Report (continued)

8. Remuneration of key management personnel (continued)

Non-Executive Director board and committee fees

3. Remuneration Report (continued)

8. Remuneration of key management personnel (continued)

Non-Executive Director Remuneration

4. Directors' interests

DEXUS Annual Report 2009

DEXUS DIVERSIFIED TRUST INCOME STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009

DEXUS DIVERSIFIED TRUST BALANCE SHEETS
AS AT 30 JUNE 2009

DEXUS DIVERSIFIED TRUST
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2009

DEXUS DIVERSIFIED TRUST
CASH FLOW STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2009