DEXUS — Capital/Financing Update 2006

Jul 17, 2006

DB RREEF

Managed in partnership with Deutsche Bank $\boxdot$

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

Level 9 343 George Street Sydney NSW 2000

PO Box R1822 Royal Exchange NSW 1225

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

Email: tony.dixon@dbrreef.com

18 July 2006

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

Dear Sir/Madam

DB RREEF Trust (ASX: DRT) Leasing Update

DB RREEF Funds Management Limited, as responsible entity for DB RREEF Trust (DRT), wishes to provide the following Leasing Update.

For further information, please contact

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

Yours sincerely

Tanya Cox Company Secretary

märket update

18 July 2006

DB RREEF Trust (ASX:DRT) Leasing Update

DB RREEF Funds Management Limited ("DRFM"), as responsible entity of DB RREEF Trust ("DRT"), provides the following leasing update in respect of its portfolio.

The overall occupancy level of DRT has increased to 96.2 per cent up from 95.1 per cent in December 2005. The improvement has primarily arisen from recent positive net absorption across all CBD office markets in Australia driven by tenant expansion, and the continued leasing of vacant space in the US industrial portfolio.

The portfolio's weighted average lease term to expiry by income has increased to 5.5 years, from 5.3 years in December 2005.

Details of leasing activity finalised in the half year to 30 June are summarised below:

Commercial Portfolio

• Occupancy has increased to 98.2 percent by area including heads of agreement (97.5 percent as at December 2005).
• Weighted average lease term to expiry is 6.8 years by income (6.6 years as at December 2005).

Major leases signed since January 2006:

Property	Tenant	Area (sqm)	Term (yrs)	Commences
Governor Phillip Tower,	A T Kearney Australia	665	6	Apr-06
Sydney NSW	Allied Irish Bank	517	5	Jul-06
	CMC Group Asia Pacific	1,550	6	Jun-06
44 Market St, Sydney NSW	Servcorp	1,050	8	Sep $-06$
321 Kent Street,	Sydney IVF	4,433	15	Sep $-06$
Sydney NSW	Bluestone Administrative Services	2,962		Jul-06
	Urbis JHD	1,481	6	$Oct-06$
130 George Street,	Child Support Agency	5,066	10	Dec-05
Parramatta NSW	Medicare Australia	6,801	10	$Dec-05$

Industrial Portfolio

• Occupancy has increased to 99.2 percent by area (98.5 percent as at 31 December 2005)
• Weighted average lease term to expiry is 4.8 years by income (4.9 years as at December 2005).

Property	Tenant	Area (sam)	Term (yrs)	Commences
145-151 Arthur Street,	Acer Computer Australia	$5,250$ sqm		Mar-06
Flemington	AWA	$3,964$ sqm	5	Apr-06
19 Chifley Street, Smithfield	BOC	7,193 sqm	3.3	Apr-06

US Portfolio

• Occupancy has increased to 92.5 percent by area (91.2 percent as at 31 December 2005).
• Weighted average lease term to explry is 3.3 years by income.

Major new leases signed include:

Property	Tenant	Area (sqft)	Term (yrs)	Commences
201 Cumberland Parkway, Harrisburg, PA	Square D Company	340,000	8	Oct-05
3601 East Plano Parkway, Dallas, TX	Tekelec	137,380	8	Jan-06
8259 Exchange Drive, Orlando, FL	Universal City Development Partners	156,660	6	Jan-06
10397 W Van Buren, Phoenix, AZ	States Logistics Services	278,142	5	Jan-07
21902 64th Ave-South, Seattle, WA	Graebal Companies	157,135	7	May-06
850 North Lake Drive, Dallas, TX	Michaels Stores	230,400	10	Jun-06
1901-1919 Dividend Drive, Columbus, OH	Sygma Network of Ohio	144,850	6	Jun-08

Victor Hoog Antink, CEO of DRFM, said "These successes across all portfolios have been driven by continuing strong fundamentals. I am particularly pleased with the momentum we've been able to generate across the office portfolio and believe the portfolio is well positioned to take advantage of the significant rental growth that is expected as a result of the low supply and strong demand."

DB RREEF is one of Australia's largest property fund managers, with total funds under management as at 31 December 2005 in excess of \$11.3 billion. The listed property portfolio comprises approximately \$7.5 billion of direct property assets, in Australia, New Zealand and the United States, and the unlisted property portfolio comprises approximately \$3.8 billion of domestic assets.