DB RREEF Trust

Managed in partnership with Deutsche Bank $\boldsymbol{\varOmega}$

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

Level 23 333 Collins Street Melbourne Vic 3000

PO Box R1822 Royal Exchange NSW 1225

Telephone 61 3 9270 4141 Direct 61 3 9270 4419 Facsimile 61 3 9270 4411

Email: [email protected]

28 February 2005

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

Dear Sir / Madam

DB RREEF Trust (ASX: DRT) Half year results for the period ending 31 December 2004

Results for Announcement to the Market

DB RREEF Funds Management Limited, as responsible entity for DB RREEF Trust (DRT), is pleased to confirm that it has lodged the following documents with the Australian Stock Exchange today:

Media Release DB RREEF Trust Interim Results to December 2004 $\bullet$
Appendix 4D Statement "Results for announcement to the market"; $\bullet$
Financial Statements (DB RREEF Diversified Trust) for the period ending 31 December 2004. $\bullet$ including Independent Audit Report from PricewaterhouseCoopers.

For further information, please contact Tony Dixon on (02) 9249 9040 (Institutional) or Karol O'Reilly on (02) 9249 9839 (Retail) or for media inquiries Kristin Silva on (02) 9249 9568.

ture regionale

Yours faithfully,

lan Thompoop Company Secretary

Att.

Managed in partnership with Deutsche Bank $\boxtimes$

28 February 2005

DB RREEF Trust (ASX:DRT) Interim results to 31 December 2004

DB RREEF Funds Management Limited (DRFM), as responsible entity of DRT, announces today the distribution for DB RREEF Trust (DRT) for the interim period to 31 December 2004 is \$136.5m. This represents 5.20 cents per stapled security, with approximately 40% tax advantaged. DRT remains on target to achieve a full year distribution of 10.50 cents per security, as outlined in the Explanatory Memorandum (EM).

At the earnings per stapled security level, the actual results for the initial period are ahead of the EM forecasts, demonstrating the strong underlying performance across the combined \$6.3bn domestic and USA property portfolios.

Earnings on a grouped accounting basis for the four listed entities, consistent with the EM disclosure, is \$137.2m before capital items. Earnings, as reported in the statutory accounts for the group, which adopts DB RREEF Diversified Trust as the parent entity, is \$98.1m before capital items. Consolidated pre acquisition earnings form part of the group distributions for the interim reporting period as security holders are entitled to the earnings of the group from 1 July 2004.

The key financial results for DRT are summarised in the table below:

Statutory Accounts 31 Dec $20041$		EМ Forecasts¹	Actual - Grouped 31 Dec 2004 ¹
\$98.1	Net Profit before capital items (\$m) ²	\$134.2	\$137.2
5.94	Earnings per Security (cps)	5.16	5.23
5.20	Distribution per Security (cps)	5.20	5.20
\$74.4	Net Profit Attributable to Security Holders (\$m) ³	\$115.4	\$117.3
4.51	Earnings Per Security (cps)	4.44	4.48

¹The "actual grouped" fqures reflect the aggregation of the four Trusts for the initial period to 31 December 2004. This accounting treatment is consistent with the disclosures as outlined in the EM and represent the summation of the results for the four Trusts comprising the stapled entity. It should be noted that investors in DRT have been entitled to the returns of the underlying Trusts from 1 July 2004.

For statutory reporting purposes, DB RREEF Diversified Trust (DDF) has been deemed as the head entity. Accordingly, the other three listed entities comprising DB RREEF Office Trust (DOT), DB RREEF Industrial Trust (DIT) and DB RREEF Operations Trust (DRO) are consolidated as subsidiary entities for accounting purposes. The financial statements reflect six months of DDF results and three months of DOT, DIT and DRO results. The earnings per stapled security per the 31 December 2004 accounts is 4,51 cents (based on the weighted number of units on issue for DDF from 1.7.04 to 31.12.04). This is calculated based on the reported net profit after capital items.

² Capital items comprise net profit from asset sales and costs associated with the restructure.

$\Gamma$ , that is a

³ Net Profit Attributable to Security Holders reflects the writing off of transaction costs and includes capital profits.

Total assets of DRT as at 31 December 2004 are \$6.5bn, with Securityholders Equity of \$3.3bn. The resultant NTA per security is \$1.22, which is 2 cents above the EM forecast. Gearing at 31 December 2004 is 44%.

Commenting on the results, Mr Victor Hoog Antink, CEO said, "These results are very satisfying in that the property portfolio is performing ahead of the EM forecast. These results support the restructure initiatives undertaken during the second half of CY2004 and reflect the first steps in delivering the broader strategies as outlined for DRT. The Board and management remain focused on delivering the earnings targets and establishing the global real estate platform as envisaged in last year's merger."

Completion of Merger

The six months to December 2004 include the first three months of operations as DB RREEF Trust (ASX:DRT), following the successful restructure to reposition and expand the listed property platform in Australia to include:

the stapling of the listed property trusts, DB RREEF Office Trust (ASX:DOT), DB RREEF Industrial Trust (ASX:DIT), and DB RREEF Diversified Trust (ASX:DDF);
the partial internalisation of the management platform, through the acquisition of a 50% stake in DRFM from Deutsche Australia Limited:
the delivery of a platform to access global real estate opportunities, expertise and partners, as demonstrated through the acquisition of an 80% interest in a \$US1 billion industrial portfolio, located across 18 major US markets.

1. DRT Operational Results - Strong Property Performance

	31 December 2004		Explanatory Memorandum
	Vacancy ¹ %	Avg Lease ² Expiry (yrs)	Vacancy ^3\%	Avg Lease ² Expiry (yrs)
Commercial	7.7%	5.9	$9.0\%$	5.6
Industrial	1.9%	4.1	5.0%	4.3
US industrial	12.6%	3.4	13.0%	3.1
Retail	$0.5\%$	N/A	0.5%	NIA

All asset classes have performed well as evidenced by the table below:

¹Statistics based on net rentable area

² Statistics based on income

Commercial Portfolio

In the six months to December 2004, net income from the Commercial portfolio increased by 12% from \$99.0m to \$110.6m over the corresponding six month period to December 2003.

New leases, lease renewals and heads of agreement, accounting for more than 70,000 square metres (13% of portfolio area), were secured.

As a result, including current heads of agreement occupancy will increase to 92.3% compared to 91.4%. The leasing activity has helped extend the portfolio's average lease term to expiry to 5.9 years from 5.6 years (by income) at June 2004.

Construction of the Lumley Centre, a fully leased office project in Auckland, New Zealand, is continuing with completion expected in June 2005.

Industrial Portfolio

The industrial portfolio contributed \$52.4m in net income, an increase of 5% over the corresponding six month period to December 2003.

In the six months to December 2004, new leases, lease renewals and heads of agreement, accounting for more than 82,000 square metres (8% of portfolio area), were secured.

As a result, portfolio occupancy has increased to 98.1% (compared to 95.0%), while average lease term to expiry (by income) is 4.1 years, compared to 4.3 years previously.

During the period, over 63,000sqm of development projects were completed, with an additional 30,000sam currently under construction.

Retail Portfolio

The industrial portfolio contributed \$20.6m in net income, an increase of 18% over the corresponding six month period to December 2003.

The retail sector continues to benefit from solid growth in retail spending and high levels of consumer confidence. The retail transactions announced in the EM are continuing, with the acquisition of 50% of Hurstville Shopping Centre, and sale of 50% of Westlakes Shopping Centre expected to be completed by April 2005.

The \$64m Westlakes development is substantially complete with the final stage to be completed by May 2005. The \$60m development at Mt Druitt is progressing well and due for completion by March 2006.

The moving annual turnover in the portfolio for the quarter ended December 2004 is summarised as follows:

	Centre T/O \$'psm	Specialty T/O \$ psm	Centre MAT Growth	Specialty MAT Growth	Specialty Occupancy Cost
			%	%	$\gamma_{\rm o}$
Whitford City	6.078	7.387	20.3%	32.7%	13.9%
Westlakes	NΙA	N/A	4.4%	2.9%	12.9%
Plenty Valley	8.644	6,623	15.9%	8.3%	10.6%
North Lakes	4.834	5.787	NIA	N/A	13.2%
Mt Druitt	5.037	7.632	5.8%	4.8%	15.4%

US Industrial Portfolio

The broad based recovery in the USA industrial markets is taking hold, and the Portfolio is benefiting from this improvement. In the six months to December 2004, new leases and lease renewals accounting for more than 880,000 square feet (4% of portfolio area) were secured, increasing the portfolio occupancy to 87.4%. The average term to expiry of the portfolio is currently 3.4 years by income.

Sales and Acquisitions

A number of sales and acquisitions by DRT are underway and are currently tracking in line with the EM forecast. Sales totalling approximately \$282.5m have been completed during the period, including Axxess Corporate Park, Seven Hills, McDowell Street, Welshpool, Edward Street Brisbane, Redwood Gardens Dingley, 50% of Whitford City, 50% of Plenty Valley. Acquisitions totalling approximately \$193.3m have been completed during the period including 50% each of Westfield North Lakes and Westfield Mt Druitt Shopping Centres.

In addition, DRFM announced today that DRT will acquire 16-20 Barrack Street, Sydney for a consideration of \$44.5 million. According to Mr Hoog Antink, "This property is expected to provide DRT with its initial value adding opportunity. We see Barrack Street as a potential repositioning and recycling opportunity, with the ability to strata title and sell floors within the building."

$\mathbf{F}^{(1)}$ (exp.), $\mathbf{D}$ .

2. Treasury, Debt Capital Management and Hedging

Gearing as at 31 December 2004 is 44%, as measured by interest bearing debt (net of cash) to total assets (net of cash), comprising total net debt of \$2.9bn.

Debt Facilities

The underwritten \$900 million syndicated bank debt and bridging facilities referred to in the EM have been established and the proceeds used to re-finance existing unsecured debt and to fund the acquisition of new assets.

During the period DRT agreed to issue a private placement of notes totalling US\$200 million to US Investors. US\$160 million of the notes settled on 21 December 2004, with the balance of US\$40 million to settle by the end of March 2005.

Duration and interest rate hedging

As a result of these initiatives, the weighted average duration of debt facilities has increased from 2.5 years to 3.5 years. For the year ending 30 June 2005, approximately 80% of US\$ debt is hedged at a blended cost of debt, inclusive of fees and margins, of 4.12%, while approximately 83% of A\$ debt is hedged at a blended cost of debt, inclusive of fees and margins, of 6.18%.

Foreian Income hedaina

For the year ending 30 June 2005, approximately 88% of US\$ earnings has been hedged at a weighted average rate of A\$/US\$ 0.7106.

Distribution Reinvestment Plan

The reinvestment of the December 2004 distribution of \$136.5 million has been fully underwritten and securities are issued at \$1.2791 each.

3. Funds Management Business

At 31 December 2004. DB RREEF Funds Management managed over \$10.4 billion of assets, of which \$6.5 billion are owned by DRT. Revenue from the Funds Management business for the three months to 31 December 2004 was \$12.6m at the DB RREEF Holdings Pty Limited level (50% owned by DRO), which generated a contribution before tax to DRT of \$1.9m.

4. Board Appointments and Management

During March 2005, Charles Leitner, the Global Head of Real Estate at Deutsche Bank will join the board as a Deutsche Bank appointee and will replace Shaun Mays, who will become his alternate. Accordingly, the board will consist of seven members:

Independent / Non Executive Directors	Deutsche Bank Nominated Directors
Chris Beare (Chair)	Victor Hoog Antink (CEO)
Elizabeth Alexander AM	Charles Leitner ¹
Barry Brownjohn	Brian Scullin
Stewart Ewen
	¹ Shaun Mays CEO of Deutsche Asset Management (Australia) Limited, will remain as an alternate director to Charles Leitner.

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Senior Management Platform

The management platform has been restructured to better reflect a client orientated approach to the total funds management business, comprising responsibility for both listed and unlisted funds. The platform adopts a client account management approach whereby a range of service provider functions across property, capital management, financial, legal and operational services are provided to each of the dedicated funds. A number of internal appointments have been made to support this revised management structure, with incremental appointments continuing to be made.

5. Future Direction and Strategy

The restructure which was largely completed by December 2004 has enabled DRFM to stabilise and reposition the total real estate funds management platform to better facilitate future growth and enhance returns for all funds under management.

DRFM's short term focus for calendar 2005 comprises key initiatives:

Portfolio performance continued leasing initiatives across the portfolio to provide a $\bullet$ stable income stream:
Management platform ongoing strengthening of the DRFM management team, including the appointment of additional resources as required.
Enhanced EPU growth value add initiatives which seek to:
extract enhanced returns from the existing assets under management; and. $\blacksquare$
develop and implement longer term strategies across a range of new investment Ă opportunities.
Lever the global platform continue to lever the relationship with Deutsche Bank, including the global DB Real Estate / RREEF real estate platforms.

Contact details

For further information, please contact:

$\bullet$	Institutional investors	Victor Hoog Antink	61 2 9249 9474
		Tony Dixon-	61 2 9249 9040
$\bullet$	Media	Kristin Silva	61 2 9249 9568

$\bar{\bar{t}}$

Annexure 1 - Key Balance Sheet Statistics

Results for the Interim Period Ended 31 December 2004

	31 December 2004	EM	% Change
Investment properties	\$6,328	\$6.266	1%
Total assets	\$6,510	\$6,478	0%
Total borrowings	\$2,924	\$3.009	(3%)
Total liabilities	\$3,190	\$3.247	(2%)
Net assets attributable to members	\$3,203	\$3.158	1%
NTA per unit	\$1.22	\$1.20	2%
Gearing	44%	46%	(2%

$\bar{\mathcal{A}}$

TFigures in SAUD Million

$\bar{z}$

Annexure 2 - Property Portfolio

Commercial

Major leasing transactions concluded:

Property	Tenant	Area (sqm)	Lease Term	Lease Type
130 George St.	NSW Police	7,200 sqm	5 years	New
Parramatta
45 Clarence St,	Hudson Global	$6,811$ sqm	7 years	New
Sydney	Resources P/L
Australia Square,	Various	6,121 sqm	6.1 years	New/
Sydney				renewal
45 Clarence St.	HBOS Australia	$5,244$ sqm	8 years	New
Sydney	Pty Ltd
383 Kent Street.	Custom Call Pty	3,589 sqm	5 years	New
Sydney	Limited
Lumley Centre,	Lumley General	3,230 sqm	9 years	New
Auckland	Insurance
Southgate	Dairy Australia	$2,152$ sqm	4 years	Renewal
Melbourne	Limited
Woodside Perth	Woodside Energy	2,143 sqm	5 years	New
	Limited
30 The Bond,	EDS Pty Ltd	2,011 sam	5.2 years	New
Sydney
45 Clarence	Citco Fund	1,800 sqm	10 years	New
Street, Sydney	Services (Aust) P/L.

Industrial

Major leasing transactions concluded:

Property	Tenant	Area (sqm)	Lease Term	Lease Type
DB Distribution	Various	15,272 sqm	5 years	Renewals
Centre, Salisbury
Redwood Gardens.	Various	$10,996$ sam	7.2 years	New
Dingley,			(average)
DB Business Park,	Fujifilm Australia	11,307 sam	3 years	Extension to
Brookvale	PÆ.			2011
40 Talavera Rd.	Various	7,516 sqm	6.6 years	New
North Ryde			(average)

US Industrial

Major leasing transactions concluded:

Property Location	Tenant	Area (sq ft)	Lease Term	Lease Type
10397 West Van Buren St. Tolleson. AZ	States Logistics	278.142	1.25 years	Renewal
1614-1634 Westbelt Drive. Columbus, OH	United Stationers Supply	229,200	5 years	Renewat
9565 Santa Anita Ave, Riverside, CA	Weber Inc.	212,300	5 years	New
3601 East Plano Parkway, Plano, TX	Tekeleci	87.195	10 years	New
181 Fulling Mill Rd, Harrisburg, PA	TVC Communications	53,135	3 years	Renewal
13602 12th St. Riverside, CA	Mintek Dicital Inc.	45.700	5 years	New
4200 E Santa Ana St. Riverside, CA	Tree Island Wire, Inc.	33.600	2 years	New

$\overline{a}$

$\ddot{\cdot}$

×.

Annexure 3

$\mathcal{L}_{\mathcal{A}}$

Interest Rate Hedging

The Trust's current interest rate hedging profile is as follows:

Position as at 30 June	2005	2006	2007	2008	2009
A\$m hedged	1.523	1.383	1.018	838	338
A\$ hedge rate	6.15%	6.21%	6.21%	6.13%	6.27%
Average rate ²	6.28%	6.28%	6.27%	6.31%	6.43%
Martin Martin (			ina 2010 metata persoa antara persoa per		Experience
US\$m hedged ³	646	635	619	61	550
US\$ hedge rate ¹	5.13%	5.08%	4.98%	4.98%	4.69%
Average rate ²	4.45%	4.46%	4.44%	4.49%	4.44%

NZ\$m hedged		88	88
NZ\$ hedge rate		7.33%	7.33%
Average rate ²		7.37%	7.38%	7.31%	7.30%

¹ weighted average hedge rate including margins and fees
² weighted average fixed and floating rate including margins and fees
³ includes 80% of total hedges of DB RREEF Industrial LLC (US JV)

Foreign Income hedging

The Trust's foreign income hedging profile is currently as follows:

Position as at	USS	Average A\$/US\$
	hedge amount	hedge rate
30 June 2005	13.5	0.7106
30 June 2006	15.5	0.6930
30 June 2007	12 A	0.6859
30 June 2008	94	0.6761
30 June 2009		ก คลลา
Total	55 R	0.6904

DB RREEF TRUST (ASX:DRT) - APPENDIX 4D

.
For the purposes of statutory reporting, the stapled entity, known as DRT, must be accounted for as a consolidated group. Accordingly, one of the stapled entities must be the "deemed acquirer" of all other stapled entities in the group. DDF has been chosen as the deemed
acquirer of the balance of the DRT group, comprising DIT, DOT and DRO.

DB RREEF DIVERSIFED TRUST (ARSN 089 324 541)

Financial Reporting for the Half Year ended 31 December 2094

Results for Announcement to the Market

Highlights of Results

	31/12/2004	31/12/2003 % Change
Revenue from ordinary activities (\$'000)	480,677	108,554	443%
Net Profit from ordinary activities after tax attributable to security holders and after outside equity interests - (\$'000).	74.357	40.981	181%
Distribution to security holders - (\$'000)	136,519	44,522	307%
Distributions for the quarters ending 30 September 2003 (paid 27 November 2003) 31 December 2003 (payable 26 February 2004)		2.33 2.33 4.65
Distributions for the half year ending ‡31 December payabla (28 February 2005) - cents per unit	5.20
∏otal distributions - cents per unit	5.20
Basic and diluted earnings (cents per unit)	4.51	4.29
Tax deferred component of distribution	40.00%	44.35%
[Total Assets (\$'000)	6.510.227	1,652,137
Total Borrowings (\$'000)	2,924,228	473.062
Unitholders Equity (\$'000)	3.203.535	1,145,558
Market Capitalisation (\$'000)	3,465,507	1.110,664
Net tangible assets (NTA) \$ per unit (excluding outside equity interests)	1.22.	1,20
Unit price - \$	1.32	1.16
Unite on issue ('000)	2.625.384	957.469
Record date	31 December 2004	31 December 2003
Payment date - 31 December distribution	28 February 2005	26 February 2004

Commentary of results

For a review of the results of DB RREEF Trust for the half year to 31 December 2004, refer to the atlached Media Release. Attached with the Appendix 4D is a copy of the audited Financial Statements for the half year ended 31 December 2004.

On 27 September 2004, unitholders of the DB RREEF Diversified Trust ("the Trust" or "DDF") (formerly Deutsche Diversified Trust), DB RREEF
Office Trust (formerly Deutsche Office Trust) ("DOT"), and DB RREEF Industrial Trus their respective constitutions and replace their respective Responsible Entities. The unitholders also voted to approve the stapling proposal as outlined in the Explanatory Memorandum and Product Disclosure Statement dated 30 August 2004 to staple together DDF, DOT, DIT and a newly created trading trust, DB RREEF Operations Trust ("DRO"), to create the stapled entity known as DB RREEF Trust ("DRT").

For the purposes of stalutory reporting, DDF was the deemed acquirer of DOT, DIT and DRO, The financial statements therefore rellect six months of DDF net profit and three months of net profit from DIT, DOT and DRO. The comparative percentages are not meaningful due to this material restructure of the business that was undertaken during the period.

It should be noted that investors in DRT have been entitled to the returns of the underlying trusts from 1 July (in the case of DDF, DIT and DOT) even though the financial statements reflect the consolidated position from 1 October 2004.

DB RREEF Funds Management Limited has propared information in addition to the financial statements that have been released to the Australian Stock Exchange that explains more fully the performance of the full group for the half year,

FINANCIAL STATEMENTS

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) (ARSN 089 324 541)

HALF YEAR REPORT 2004

$\mathbf{F}^{(1)}$ and $\mathbf{F}^{(1)}$

$\sim$

Contents	Page
Directors' report	1
Auditor's independence declaration	3
Statements of financial performance	4
Statements of financial position	5
Statements of cash flows	6
Notes to the financial statements	7
Directors' declaration	27

Independent audit report to the stapled security holders of DB RREEF Diversified Trust (formerly Deutsche Diversified Trust)

$\frac{3}{2} \frac{1}{2} \frac{1}{2}$

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2004

The directors of DB RREEF Funds Management Limited (formerly Paladin Australia Limited) ("DB RREEF Funds Management") as Responsible Enlity of DB RREEF Diversified Trust (formerly Deutsche Diversified Trust) ("the Trust") present their report together with the consolidated financial report of the Trust and its subsidiaries ("the Group") for the half year ended 31 December 2004.

Directors

On 1 October 2004, DB RREEF Funds Management replaced DB Real Estate Australia Limited as Responsible Entity of the Trust. The following persons were directors of DB Real Estate Australia Limited up to 30 September 2004.

CT Beare BSc, BE (Hons), MBA, PhD, FAICD⁺ S.F. Ewen F.I.L.E^1,2 S.A. Mays BSc (Hons), MSc, MBA W B Robinson ABIA, AASA 183 B E Sculin BEc² D C Shields BE (Hons), MBA

From 1 October 2004 and up to the date of this report, the following persons were directors of DB RREEF Funds Management, unless otherwise stated:

C T Beare BSc, BE (Hons), MBA, PhD, FAICD⁺ Appointed 1 January 2005 E A Alexander BComm, AM, FCA, FAICD, CPA 12 Appointed 1 January 2005 B R Brownjohn BComm^5.2 S.F. Ewen F.I.L.E⁴² V P Hood Antink BCom, MBA, FCA, FAPI, MAICD Appointed 1 October 2004 S A Mays BSc (Hons), MSc, MBA Appointed 1 January 2005 B E Scullin BEc³ Appointed 1 October 2004; Resigned 17 December 2004 D S Weaver B.Arch, MBA, AFIRE ⁴Independent Director

² Audit Committee Member ³ Compliance Committee Member

No directors held an interest in the Group as at 31 December 2004, or at the date of this report.

Review of operations

On 27 September 2004, unitholders of the Trust, DB RREEF Office Trust (formerly Deutsche Office Trust) ("DOT") and DB RREEF industrial Trust (formerly Deutsche Industrial Trust) ("DIT") voted to replace their respective constitutions and replace their respective Responsible Entities. The unitholders also voted to approve the stapling proposal as outlined in the Explanatory Memorandum and Product Disclosure Statement dated 30 August 2004 to staple together the Trust, DIT, DOT and the newly formed trading trust DB RREEF Operations Trust ("DRO") to create a Stapled Entity known as DB RREEF Trust ("DRT"). The result of these resolutions became effective on 30 September 2004. The Stapled Entity trades on the Australian Stock Exchange under the code DRT.

For the purposes of statutory reporting, the stapled entity must be accounted for as a consolidated group. The parent entity and deemed acquirer of DOT, DIT and DRO is DDF.

DB RREEF Funds Management is a wholly owned subsidiary of DB RREEF Holdings Pty Limited (DRH). DRH is 50% owned by DB RREEF Funds Management as Responsible Entity for the DRO and 50% owned by First Australia Property Group Holdings Pty Ltd (FAP), a subsidiary of the Deutsche Bank Group.

As part of the stapling process, DDF, DIT and DOT each paid a special distribution by way of a capital return that was applied on behalf of each unitholder to subscribe for new issued units in each of the other trusts, including DRO. The number of units issued by each trust changed so that each trust had the same number of issued units. The number of units owned by an investor in DDF equals the same number of units in DIT, DOT and DRO.

Net profit attributable to stapled security holders for the half year ended 31 December 2004 was \$74.36 million. Net profit attributable to stapled security holders before costs associated with the Transaction, as described in Note 4, for the half year ended 31 December 2004 was \$117.65 million.

A review of the results, operations and likely developments of the Group are contained in the Responsible Entity's report on pages x to x of this Half Year Report.*

Significant changes in the state of affairs

The directors of the Responsible Entity are not aware of any matter or circumstance not otherwise dealt with in this report or the financial statements that has significantly or may significantly affect the operations of the Trust, the results of those operations, or the state of the Trust's affairs in future financial years.

provided the

$\sim$

凱

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) DIRECTORS' REPORT (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2004

Rounding of amounts

The Trust is a registered scheme of a kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the "rounding off" of amounts in the Directors' Report and financial report. Amounts in the Directors' Report and financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, unless otherwise indicated.

Auditor

PricewaterhouseCoopers continues in office in accordance with section 327 of the Corporations Act 2001,

A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 3.

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$\pm$

This report is made in accordance with a resolution of the directors.

Christopher T Beare Chair Sydney 28 February 2005

į.

PRICEWATERHOUSE COPERS @

PricewaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8256 0000 Facsimile +61 2 8266 9999

Auditors' Independence Declaration

As lead auditor for the audit of the DB RREEF Diversified Trust for the half year ended 31 December 2004, 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 the DB RREEF Diversified Trust and the entities it controlled during the period.

DA Prothero Partner PricewaterhouseCoopers

Sydney 28 February 2005

ý.

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST)
STATEMENTS OF FINANCIAL PERFORMANCE
FOR THE HALF YEAR ENDED 31 DECEMBER 2004

		Consolidated		Parent Entity
	Noles	31 Dec 2004 \$'000	31 Dec 2003 \$'000	31 Dec 2004 \$'000	31 Dec 2003 \$'000

Revenue from ordinary activities
Property income		194,937	78,564	81,648	78,564
Interest income		1,519	230	394	230
Other revenues from ordinary activities		398
Proceeds from sale of investment properties		282,492	29.760	278,291	29.760
Share of net profits of associates accounted for using the equity method		1,331		8,529
Total revenue from ordinary activities		480,677	108,554	368,862	108,554
Expenses from ordinary activities
Property experises		(48, 525)	(21, 200)	(21, 225)	(21, 200)
Responsible entity fees		(5, 197)	(4,927)	(4.247)	(4,927)
Borrowing costs expense		(40, 975)	(10,008)	(9,382)	(10,008)
Other expenses from ordinary activities	3	(2, 304)	(601)	(561)	(601)
Book value of property investments sold		(262, 922)	(30, 837)	(258, 535)	(30, 837)
Costs associated with the Transaction	4	(43, 296)		(15,100)
Total expenses from ordinary activities		(403, 219)	(67, 573)	(309,050)	(67, 573)
Profit from ordinary activities before tax		77,458	40.981	59,812	40,981
Tax expense		(783)
Profit from ordinary activities after tax		76,670	40,981	59,812	40,981
Net profit attributable to outside equity interests		(2, 313)
Net profit attributable to security holders	a	74,357	40.981	59,812	40,981
Net increase in asset revaluation reserve	9	13,299	7,995	13.299	7,995
Net (decrease) in foreign currency translation reserve	9	(623)		(343)
Total revenues, expenses and valuation adjustments attributable to security/unit holders of the Group/Trust recognised directly in equity		12,676	7,995	12,955	7,995
Total changes in equity other than those resulting from transactions with security/unit holders as owners		67,033	48,976	72,768	48,976

		Cents	Cents	Cents	Cents
Basic earnings - cents per stapled security	14	4.51	4.29	3.62	4.29
Diluted earnings - cents per stapled security	14	4.61	4.20	3.62	4.29
Basic earnings before the Transaction - cents per stapled security	14	7.13	4.29	7,48	4,29
The above statements of financial performance should be tead in conjunction with the accompanying notes.
		31 Dec 2004	31 Dec 2003	31 Dec 2004	31 Dec 2003
		\$1000	\$000	\$'000	\$'000
Distribution		74,357	40,981	59,812	40,981
Net profit attributable to security insiders		44,774	2,484	(440)	2,464
Movement in undistributed income		17,388	1,077		1,077
Transfer from asset revaluation reserve
Distribution paid and payable	9,10	136,519	44,522	59,372	44,522
Distribution paid/payable - cents per stapled security
		Cents	Cents	Cents	Cents
Ordinary securities	10	5.20	4.65	2,26	4.65

$\sim 10^7$

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DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST)
STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2004

		Consolidated		Parent Entity
	Notes	31 Dec 2004 \$'000	30 Jun 2004 \$'000	31 Dec 2004 \$'000	30 Jun 2004 \$'000
Current assets
Cash assets		56,250	2,487	11,566	2,487
Receivables		32,504	63,112	12,542	63.112
Investment properties	5	221,467		202.317
Other		13,611	4,394	3,027	4,394
Total current assets		323,832	69,993	229,452	69,993
Non-current assets
Investment properties	5	5,928,995	1,635,508	1,317,047	1,635,508
Investments accounted for using the equity method	6	189,700		271,541
Other		67,700	1,524	753	1,524
Total non-current assets		6,186,395	1,637,032	1,589,341	1,637,032
Total assets		6,510,227	1,707,025	1,818,793	1,707,025
Current liabilities
Payables		97,755	14,869	18,846	14,669
Provisions		136,519	23,171	59,372	23,171
Interest bearing liabilities	7	781,953	474,200		474,200
Other		6,565
Total current liabilities		1,022,792	512,240	78,218	512,240
Non-current liabilities
Interest bearing liabilities	7	2,142,275		525,026
Loan with controlled entities			585	25,553 972	585
Other		25,576
Total non-current liabilities		2,167,851	585	551,551	585
Total liabilities		3,190,643	512,825	629,769	512,825
Net assets		3.319.584	1,194,200	1.189.024	1,194,200
Equity
Contributed equity	в	2,956,202	1,028,028	1,009,456	1,028,028
Reserves	9	234,443	153,961	166,917	153,961
Undistributed income	9	10,890	12,211	12,651	12,211
Outside equity interests in controlled entities		116,049
Total equity		3,319,584	1,194,200	1,189,024	1,194,200

The above statements of financial position should be read in conjunction with the accompanying notes.

$\frac{3}{2}\mathcal{R}$

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$\frac{1}{3}$

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) STATEMENTS OF CASH FLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2004

		Consolidated		Parent Entity
	Note	31 Dec 2004 31 Dec 2003			31 Dec 2004 31 Dec 2003
		\$'000	\$'000	S'ODD	\$'000
Cash flows from operating activities
Receipts in the course of operations		179,711	80,442	79,876	80,442
Payments in the course of operations		(88, 187)	(22, 893)	(28, 435)	(22, 893)
Interest received		904	230	394	230
Borrowing costs paid		(52, 351)	(12,593)	(9,466)	(12,593)
Distributions from investments accounted for using the equity method		3,138		2,525
Net cash inflow from operating activities		43.215	45.186	44,894	45,186
Cash flows from investing activities
Proceeds from sale of investment properties		334,251		330,051
Payments for capital expenditure on investment properties		(89,006)	(48,784)	(56,087)	(48, 784)
Payment for purchase of controlled entity, net of cash acquired	15	(253, 875)
Cash acquired on stapling		14,285
Payments for investment properties		(63, 491)		(63, 491)
Payments for investments accounted for using the equity method		(144, 950)		(277,908)
Net cash (outflow) from investing activities		(202, 786)	(48.784)	(67, 435)	(48, 784)
Cash flows from financing activities
Proceeds from issue of units			7,013		7,013
Increase in minority interest		50.960
Proceeds from borrowings		1,231,199	48,408	905,732	48,408
Repayment of borrowings		(1,049,165)	(6, 146)	(857,922)	(6, 146)
Distributions paid		(16, 190)	(44, 619)	(16, 190)	(44, 619)
Distributions paid by controlled entities to outside equity interests		(26)
Net cash inflow from financing activities		216,778	4,656	31,620	4,656
Net increase in cash held		57,207	1,058	9,079	1,058
Cash at the beginning of the period		2.467	1,375	2,487	1,375
Effects of exchange rate changes on cash		(3,444)
Cash at the end of the period		56.250	2,433	11,566	2,433

The above statements of cash flows should be read in conjunction with the accompanying notes.

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Page No. 6 of 28

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Note 1. Summary of significant accounting policies

(a) Basis of preparation

On 30 September 2004, DB RREEF Diversifed Trust and its subsidiaries ("the Group") was formed by the stapling together of DDF, DIT, DOT and DRO ("the Trusts"). For the purposes of statutory reporting, the stapled entity reflects a consolidated group. The parent entity and deemed acquirer of the trusts is DDF. The basis of this approach is consistent with current practice in relation to the financial reporting obligations of stapled entities that were formed after 1 July 2004. The consolidated results reflect the performance of the parent. DDF, from 1 July 2004 and the additions of DIT and DOT from the date of consolidation, being 1 October 2004 to 31 December 2004. investors however are entitled to distributions and earnings of the underlying trusts from the period commencing 1 July 2004.

DB RREEF Trust stapled securities are quoted on the Australian Stock Exchange under the code DRT and comprise of one unit in each of DDF, DIT, DOT and DRO. Each entity forming part of the Group continues as a separate legal entity in its own right under the Corporations Act 2001 and is therefore each required to comply with the reporting and disclosure requirements under the Corporations Act 2001 and Australian Accounting Standards.

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

This general purpose financial report has been prepared in accordance with the requirements of the Australian Accounting Standards. other authoritative pronouncements of the Australian Accounting Standards Board and Urgent Issues Group Consensus Views.

It is prepared on the basis of the going concern and historical cost conventions and has not been adjusted to take account of either changes in the general purchasing power of the dollar or changes in the values of specific assets, except to the extent that the Trust's investments have been revalued.

This report is to be read in conjunction with any public pronouncements made by DDF and the Trusts during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

(b) Principles of consolidation

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.

On 30 September 2004, DDF was deemed to have acquired the other trusts and as a result, the underlying assets and liabilities of the other trusts were adjusted to fair value as at this date. Information from the financial statements of the subsidiaries has been included from 1 October 2004. The accounting policies of the subsidiary trusts are consistent with the parent where applicable.

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

Outside equity interests in the results and equity of controlled entities are shown separately in the consolidated Statements of Financial Performance and Statements of Financial Position respectively.

Where control of an entity is obtained during a financial year, its results are included in the consolidated Statements of Financial Performance from the date on which control commences.

Investments in associates are accounted for in the consolidated financial statements using the equity method. Under this method, the consolidated entity's share of the post-acquisition profits of associates is recognised as revenue in the consolidated Statements of Financial Performance, and its share of post-acquisition movements in reserves is recognised in consolidated reserves. Associates are those entities over which the consolidated entity exercises significant influence, but not control.

(c) Tax expense

$\sim$

Under current Australian income tax legislation DDF and its controlled entities, DOT and DIT are not liable for income tax provided they satisfy the requirements of the ATO, DRO has income tax expenses arising from the activities of its funds management business. DRO's taxable income is taxed at the tax rate of 30%.

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

No provision is made for additional taxes which would become payable if certain reserves of the foreign controlled entity were to be distributed as it is not expected that any substantial amount will be distributed from those reserves in the foreseeable future.

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

Tax effect accounting procedures were followed whereby the income tax expense in the Statements of Financial Performance is matched with the accounting profit allowing for permanent differences.

proceeding and

Żλ.

(c) Tax expense (continued)

The future tax benefit relating to tax losses is not carried forward as an asset unless the benefit is virtually certain of realisation. Income tax on cumulative timing differences is set aside to the deforred income tax or the future income tax benefit accounts at the rates which are expected to apply when those timing differences reverse.

(d) Distributions

In accordance with the Trust's Constitution, as amended in September 2004, the Trust distributes its distributable income to unitholders by cash or reinvesiment. The Trust's constitution now provides that the distributions are payable half yearly.

(e) Foreign currency

Foreign currency investments

Investments in foreign assets are converted to Australian Dollars ("A\$") at the rate of exchange on the date of the transactions or at hedged rates if applicable.

Foreign investments are held in the United States of America ("US") and New Zealand ("NZ").

Translation of foreign currency operations

All foreign operations are deemed self-sustaining in accordance with AASB 1912: Foreign Currency Translation, as each is financially and operationally independent of the Australian operations.

The financial reports of overseas operations are translated to Australian dollars using the current rate method, except for hedged assets and liabilities which are translated at the applicable currency hedge contract rates. Any exchange differences are taken directly to the foreign currency translation reserve.

Exchange rates

The following exchange rates have been used to translate financial statements of foreign operations to Australian dollars:

Spot A\$/US\$ Average A\$/US\$ 1	Statements of Financial Position Statements of Financial Performance	31 Dec 2004 0.7815 0.7182
Spot A\$/NZ\$	Statements of Financial Position	1.0884
Average A\$/NZ\$ '	Statements of Financial Performance	1.0790

¹ The average exchange rate includes applicable hedges.

(f) International Financial Reporting Standards ("IFRS")

The adoption of Australian equivalents to IFRS ("AIFRS") will be first reflected in the financial statements for the half year ended 31 December 2005 and the year ended 30 June 2006.

The Responsible Entity has established a project team to manage the transilion to AIFRS, including training of staff, and systems and internal control changes necessary to gather all the required financial information. In some cases choices of accounting policies are available, including elective exemptions under Accounting Standard AASB 1: First-time Adoption of Australian Equivalents to IFRS. Some of these choices are still being analysed to determine the most appropriate accounting policy.

The major changes identified to date that will be applied to existing accounting policies are as follows:

Investment properties

Changes in the fair values of investment properties will be adjusted through the Statements of Financial Performance rather than through the asset revaluation reserve of the Statements of Financial Position. Certain real estate investments currently classified as investment properties (such as properties under construction) may not meet the IFRS definition of investment property. Therefore, a separate class of assets may be shown on the face of the Statements of Financial Position.

Financial instruments

All interest rate and foreign currency derivatives will be recognised at fair value in the Statements of Financial Position, with changes in fair value during the period recognised in the Statements of Financial Performance, or if classified as a cashflow hedge and proved to be effective, deferred in equity.

in chantured

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FOR THE HALF YEAR ENDED 31 DECEMBER 2004 DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) NOTES TO THE FINANCIAL STATEMENTS (continued)

(f) International Financial Reporting Standards ("IFRS") (continued)

Income tax

Under the AASB 112: Income Taxes, deferred tax balances are determined using the balance sheet method which calculates temporary differences based on the carrying amounts of an entity's assets and liabilities in the Statements of Financial Position and their associated tax bases. In addition, current and deferred taxes attributable to amounts directly in equity are also recognised directly in equity. This will result in a change to the current accounting policy, under which deferred tax balances are determined using the income statement method, items are only tax-affected if they are included in the determination of pre-tax accounting profit and loss and/or taxable income or loss and current and deferred taxes cannot be recognised directly in equity.

Disclosure and presentation of equity

Accounting Standard AASB 132: Financial Instruments: disclosure and presentation, prescribes the criteria for recognising a financial instrument as either debt or equity. Whilst technical interpretation of this standard is still pending, the standard may require that units in the Trusts be classified as debt rather than equity and that distributions to unitholders be classified as borrowing costs. This would not result in any substantive change in the financial position of the Group, but would significantly after the presentation of contributed equity in the consolidated financial statements.

Lease Revenue

The Group may be required to recognise rental revenue on a straightline basis for leases which contain fixed increases.

These changes are the only material changes anticipated, but should not be regarded as the only changes in accounting policies that will result from the transition to IFRS as not all standards have been analysed and regulatory bodies have significant ongoing projects that could affect the interpretation of the differences between Australian Generally Accepted Accounting Principles and IFRS.

While the application of IFRS may introduce volatility into forecast financial information, this will not affect the cashflows from operations and hence the distributions paid to stapled security holders.

$\langle \cdot \rangle$

Note 2. Individually significant items

On 1 October 2004, DB RREEF Funds Management replaced DB Real Estate Australia Limited as Responsible Entity of the Trust, and replaced Deutsche Asset Management (Australia) Limited as Responsible Entity of DIT and DOT.

The management fee structure was amended to reflect new fee arrangements as follows:

Australian and New Zealand assets:

Fee: 0.45% per annum of gross assets
Basis: annualised average gross assets calculated on a month-end basis, in accordance with the Trusts' Constitutions
Calculated: monthly
Payment frequency: monthly
Effective date: 1 October 2004
No fees will be payable in relation to the DB RREEF Operations Trust

US assets:

Fee: 0.25% per annum of gross assets to DB RREEF Funds Management
Fee: 0.10% per annum of gross assets to RREEF America LLC ("RREEF") (the US Fund Manager)
Basis: annualised average gross assets calculated on a month-end basis, in accordance with the Trusts' Constitutions
Calculated: monthly
Payment frequency: monthly
Effective date: 1 October 2004
In addition, a management fee of US\$700,000 per annum (subject to annual escalation by reference to the US inflation rate) is payable by the US foreign operations to RREEF.
Performance fees no longer apply to the Trust. The last period for which performance fees were calculated for the Trust was the six months ending 30 June 2004. No performance fees were earned post 30 June 2004. Similarly, performance fees carried forward from previous periods are no longer available.

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Note 3. Other expenses from ordinary activities

	Consolidated		Parent Entity
	31 Dec 2004	31 Dec 2003	31 Dec 2004	31 Dec 2003
	\$'000	\$000	\$'000	\$000
Auditor's remuneration	472	40	112	40
Custodian fees	168	90	90	90
Legal and other professional fees	67	50	28	50
Bad and doubtful debis	617	44		44
Registry costs and listing feas	245	134	128	134
Other expenses	735	243	203	243
Total other expenses from ordinary activities	2,304	601	561	601

Note 4. Costs associated with the Transaction

The costs relate to the fees and expenses arising from the consolidation of the Trust and DIT, DOT and DRO, the acquisition of the US REIT, and the associated debt
arranging and interest rate hedging, (together referred to

à.

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RREEF DIVERSIRED TRUST (FORMERLY DEUTSCHE DIVERSIRED TRUST)	TES TO THE FINANCIAL STATEMENTS (continued)	RITHE HALF YEAR ENDED 31 DECEMBER 2004

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DIS RREEF DWERS FRED TRUST (FORMERLY DEUTSCHE DIVERSIRIED TRUST) NOTES TO THE FINANCIAL STATEMENTS (CONTINUES) FOR THE HALF YEAR ENDED 31 DECEMBER 2004								Page No. 12 of 28
Note 5 (b). Current essets -- investments
Property	OWNERSING	ã Acquisition	additions ğ Including all	date Independent valuation	valuation ampunt independent	Independent valuer	book value 31 Dec 2004 Total	book value 30 Jun 2004 Ē
Held by parent entity Industrial			\$300		5'000		\$1000	\$100
Reckwood Gardens Industrial Estate Stages 3,5.6 & 7 and Lot 4, Dinglay, Vie 1 Total industrial Properties	100%	Dag 1994	$\frac{24.691}{24.691}$	SODS FILL	$\frac{z}{z}$	회	24,591 24,591
1 Chifley Square, Sydney, NSW Total Commercial Properties Commercial	100%	NA SORS	82.636 62.636	Mar 2001	$\frac{37,300}{37,300}$	T	62,636 62,636
West Lakes Shopping Cantre, West Lakes, SA Total Restil Properlies Retail	Š	Nov 1998	110,281 110,281	LGGS Unit	36,000 84,000	€	115,090 116,090
Total parent entity			197,608		147,341		$\frac{202.317}{202.317}$
Hold by controlled entitles Industrial Properties			11,939		17,809		19,150
Total controlled entities			11,959		008.41		10,150
Total investment properties - current			$\frac{203,55}{203}$		168, 141		221,467
Note 5 (b). Non-current assets - investments
Property	Ownership	Acquisition dato	Cost additions Including all	Independent dute valuetlon	Independent valuation ampunt	Independent valua	Fotel book value \$1 Dec 2004	iclal book value 30 Jun 2004
Held by parent entity industrial			\$10000		\$1000		\$1000	SUPIS
Earget Distribution Centre, Lot 1, Taras Avenue, Altona North, Vic Kings Park Industrial Estate, Bowness Pead, Marayong, NSW		May 1990 Cet 1995	09,538	Jun 2003	64,300		68,495	65,254
Axxess Corporate Park, 154-180 Forster Road, 11 & 21-46 Gilby Road, 307-355 Fernitee Gully Road, Mount Waveragy, Vic Knoxfleitd industrial Estate, 20 Henderson Road, Knoxfleid, Vic	\$\$\$\$\$\$\$\$ \$\$\$\$\$\$\$\$	Cet 1996	25,429 96,554 30,077	Jun 2003 Sep 2003 E002 GOS	31,500 89,600	eggeeg	98,238 31,907	31,907
12 Frederick Street, St Leonerds, NSW		Aug 1936	24,852		31,250		31,856	91,342 31,800
40 Talavera Road, North Ryde, NSW		Jul 2000 Oct 2002	30,415	Jun 2003 May 2002	25,000 22,939		26,049 30,415	26,046
Redwood Gardens Industrial Estate Stages 3,5,6 & 7 and Lot 4, Dingley, Vic- Wakgrove, Eastern Creek, NSW		Hotiz religi Dec 1994	20,462	្នឹ			20,492	ន្ទ្រី ខ្លី ខ្ញុំ ^ភ
XSES Corporate Park, Powers & Station Road, Seven Hills, NSM Total Industrial Properties		Jul 2000						23,478 15,788 227,585
			297,315		285,350		307,452

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Note 5 (b). Non-current assets -- investments (continued)
Property	Ownership	Acquisition	Cost	independent	Independent	Imdagem deent	Total	Tolai
		date	Including all add Bons	date valuation	OCKA-B Backette valuation	valuer	31 Dec 2004 brook value	30 Jun 2004 DOOK YEARS
Commercial			\$1000				S, BSC	\$OO
44 Market Street, Sydney, NSW		Sep 1987		CO2 sin
B Nicholson Street, Melbourne, Vic		Nov 1993	155,736 67.976	Jan 2003			15,580 84,250 47,773	45,078 82,499
Fergusion Centre, 130 George Street, Parramatia, NSW		Nay 1997	60,001	Jan 2003
Flinders Gase Complex, 172 Flinders Street and 189 Flinders tame, Melbourne, Vic-		Mar 1999	13,583	Sep 2003	144,009 82,009 15,509 15,509	sesess		44,539
363-395 Kent Street, Sydney, NSW							15,597	15,508
14 Moore Street, Canberg, ACT **		Sep 1987 1991 day	104,545 37,215	Sep 2003	104,000		104,868 37,215	102.649
I Chilley Square, Sydney, NSW	ត្តិ ដូច្នាំ និង តំនួន ដូច្នាំ និង និង	CODE PT		Apr 2005	34,500			37,181 \$9,848
144 Edward Street, Ensbane, Cid		Juli 2000
Fotal Commercial Properties			449,057		423,800		435,223	$\frac{40,529}{527,531}$
Retail & Car Park
Whiterd City Shopping Centre Mamion & Whitfords Avenue, Hillarys, WA?		Cod 1984	25,686	Jun 2003
Whitfords Avenue Lot 6 Endeavour Road, Hilarys, WA?	និនិនិនិ	Dec 1992		Jun 2003	0081. 1.900	eestaassa	8,613 184,439	335,372
West Lakes Shopping Centre, West Lakes, SA				Jun 2003	86,000
Plenty Volley Town Centre, 330-464 McDonald's Road, South Morang, Ve"				CODS unt	16,000		115,090 19,616	15,897 103,944 35,152
North Lakes Shopping Centre, Mango Hill, Qid	50%	Nov 1998 Nov 1999 Aug 2004 Col 1994	Q&Q C&Q C@Q&&QQ				63,687
Albert & Charlotte Streets Carpark, Brisbare, Old	ioo*			Jun 2004 Sep 2003 Sep 2003	60,250 60,350 60,50		32,035	32,032
34-60 Little Collins Street, Mathourne, Vic."	ŠŠŠ	Nov 1994
32-44 Filnders Street, Methourne, Vic		Jun 1896		Sep 2003	24,600		41,522 24,575	41,522 24,575
Finders Cate Complex, (Including air development rights) 172 Flinders Street, Melbourne, Vic		14881 1989 1989 1989 1989 1989 1989					45,275
383-395 Kant Street, Sydney, NSW	190% 190% 190%			Sep 2003 SEP 2003	45,275 40,000		38,420	45,275
John Marian's Carpark & Relail Plaza Joint Venture			ŝ				ŝ	39,420
West Lakes Shopping Certie, West Lakes, SA								S ₃
Total Retail and Car Park Properties			49,923		506,900		574,372	103,543 760,172
Total perent entity			1,187,295		1,196,050		1.317,047	1,635.508
Heid by controlled entities
Industrial properties			855,846		891,575		932,028
Commercial properties US Proparties			2,289,137 1,321,077		2,316,350 1,321,077		2,358,846
							1,321,076
Total controlled entities			4,466,060		200'629'9		1,811,948
Total investment properties - non-current			5,653,355
					5,725,052		5,928,985	1635508

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$5,928,985$ 5,150,462

5,890,193

5,862,922

The title to all properties is freenold, with the oxxogation of the properties marked ** which are leasenod
The valuelion reflects 88% of independant valuation amount as 17% of the property was disposed.
* The valuation re

Total investment properties (current and non-current)

Note. 5 (c). Current and non-current assets - investments (continued)

Valuer

(a) OB Rohard Elis
(b) Oelle's Internalistasi
(d) PPD Savils
(d) PPD Savils
(b) Moraft Frank
(b) MD Property

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Note, 6 (c), Current and non-current assets - investments (continued)

Valuations of investment properties

The basis of valuation of mostment poperties is the strainer between the mostless of a straing the strain of the strain of the strain mostless in a most most moment is a most moment of the strain moment is a moment in the expenditure incurred since the date of valuation.

DB RREEF Diversified Trust Acquisitions

Westfield Month Lakes Shopping Centre, Old
On 19 August 2004, DDF acquired a 50% increst in Westlich North Lakes Shopping Centre and is Bulky Goods Land for S60 milion and \$0,76 milion respectively.

investment in Mount Drutt Shopping Cantre Trast
On 16 September 2004, DDF acquired a 60% attenet in Mount Drutt Shopping Comte Trust for \$132.5 milion.

Disposals

in November 2004, EDDF sold 1448 Edward Street. Brisbans for a consideration of \$44.66 military 144 Edward Street, Brisbana, Qid

Powers Road, Saven Hills, NSW

to October 2004, the property was settled for consideration of \$29.76 million with a daferred settlement fee of \$2.48 million.

Between July to December 2604, at eleven subdivided lots of this properly wore settled for \$16.55 million. Station Road, Seven Hills, NSW

Redwood Gardens industrial Estate Stages 3,5,8 & 7 and Lot 4, Dingley, Vic
Between July to December 2004, seven of twenty four subcivided lets of this properly were eard for a consideration of 85.99 militon.

On 19 August 2004, 50% of the properties were sold for a collective consideration of \$192.5 million. Whitford City and Whitfords Avenue, Hillarys, WA

Pisaty Valley Town Centre, South Morang, VIC
Ch 19 August 2004, DDF sold 50% of the property for a consideration of \$19 million.

r Chifley Square, Sydney, NSW
In March 2004, DDF enviroid into put and call options over the property. The spilons can be obtacted 201 March 201 Scotter of March 2005, 1 March 2005,

Davolopments

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Axxess Carporate Park (Mount Worestley)
DDF has secured an office pre commitment, to Alma United for a 10 year non Diverse (As # Complete Down of World More in the More of the Crate is \$1.2 million.
DDF has secured an offi

Westlakes

$\ddot{\phantom{a}}$

The \$63.8 million advertigment of Wast Lakes is scheduled to be completed in stage completed behaving one was achieved on 6 December 2004. Stage was been defined the mond on 26 February 2005
and the final stage is due to c

Mount Druitt

The S60 million development Continenced in November 2004, with completion due in strage in September 2005. On tanging die development the Trust hard development cost are estimated to be \$170.15 nillion.

DB RREEF Industrial Trust
Disposals

l. $\bar{z}$ $\mathbb{Z}^2$ $\mathbb{Z}^{2}$ .

On 3 November 2004, the Trust sold 33 McDowell Street, Weishpool for 34.2 million. McDowell Street, Welshpool WA

Rothschild Avenue, Rosebery NSW
in February 2005, the Trust sold Rothschild Avenue, Rosebery for \$22 milion.

$\sim$

$\ldots$

Note, 5 (c). Current and non-current assets - investments (continued)

DB RREEF Industrial Trust (continued)

Developments

Boundary Road, North Laveston VID
In Docember 2004, construction of the fust building for Visy Industrial Packaging and Stage 1 infrastuare works reached completion.

Brookhollow Avente, Baulkham Hills NSW
The approved Mastephan for the estate provides for approximately 26,030 square network and accommentation the moment of the side.

Posnd Road West, Dandenong VIC
In December 2004, construction of the building for Aluminium Specialises Group was compileded at a cost of approximately 98 million.

DB RREEF Office Trust Developments The Tust entered ato a contrast to pucking Tower. Aucklend on completion of its development in N25113.4 milion (subject to an area survey and its problem to the development as a seamly of the completion. Its currently esti

DB REEEF Operations Trust

Acquisition

investment in DB RREEF Holdings Pry Limited
On 1 Coader 2004, DRD acquired a SD% interest in DB RREEF Holdings Pry Limited ("DRH"). DRH index States according the DR Man active in 2004, DR Man in 2013 and
\$54.47 million in

Acquisition

DB RREEF Industrials Properties, Inc.
On 20 September 2004, DIT and DDF each recolled a 30% interest in the US REIT, The US RRET (Wext and September
1930s.

Reconciliedoe

$\cdots$ $-$

$\cdots$

L, $\bar{z}$ $\overline{\phantom{a}}$ L, i.

	- Containstite 31 Dec 2004 2010: 1000	DOO/S UNIT DE	1984 1992.992.13 Anasal	30 Jun 2004 \$1000
				576,332
Cenrying amount at 1 July 2004 Proporties accuracion stapling Additions Disposals		1,573,332 164,984 162,506) 7,698	1,835,508 ------------------------------------

Poreign exchange difference on localgin currency franslater Revaluation net increments	1,485,688 3,280,343 1,566,169 (2,823) 10,888 1,888,69			134,994 (52,506) 1,698
Carrying amount at the end of the period	,380,482		519,964	1.638,808

1,835,808

1,519,964

$\ddot{\phantom{0}}$

Investments are accounted for in the consolidated financial statements using the equity method of accounting and are carried at Directors' valuation by the parent entity. Information relating to these entities is set out below.

Name of Trust	Principal activity	Ownership	Consolidated		Parent Entity
		interest	carrying amount	carrying amount	carrying amount	carrying amount
		31 Dec 2004	31 Dec 2004	30 Jun 2004	31 Dec 2004	30 Jun 2004
		℁	5'000	\$000	\$'000	\$'000
Held by parent entity
Mt Druitt Shopping Centre Trust	Retail property investment	50	140,399	٠	140.399
DB RREEF Industrial Properties, Inc.	Asset and property management	50			131,142
			140,399		271.541
Held by controlled entities
2 O'Connell Street Trust	Commercial property investment	50	8,068		$\overline{\phantom{a}}$
4 O'Connell Street Trust	Commercial property investment	50	12,272		$\mathbf{r}$
Bligh Street Trust	Commercial property investment	50	16,583		$\sim$
DB RREEF Holdings Pty Limited	Asset and property management	50	12,377
			49,301
						韵
Total			189,700		271,541

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

	Consolidated		Parent Entity
	31 Dec 2004 \$'000	30 Jun 2004 \$000	31 Dec 2004 5'000	30 Jun 2004 5000
Movements in carrying amounts of investments accounted for using the equity method
Carrying amount at 1 July 2004
Interest acquired on stapling	35,363	$\ddot{}$
Interest acquired during the period	154.751		278,192
Share of net profits after tax	1,331		8,319
Distributions received	(2,745)		(2,527)
Foreign exchange difference on loreign currency translation			(12, 443)
Carrying amount at the end of the period	189,700	_________	271,541

Page No. 16 of 28

÷.

Note 7. Current and non-current liabilities - interest bearing liabilities

	Consolidated			Parent Entity
	31 Dec 2004	30 Jun 2004	31 Dec 2004	30 3un 2004
Current	\$1000	\$'000	\$'000	\$'000
Secured
Commercial paper	124 012
Commercial mortgage backed securities	236,000
Bank loans	5,961
Total secured	365,973	÷	٠

Unsecured	352,000	349,200
Bank loans		125,000		349,200
Medium-term notes (MTN) Preference shares	63,980			125,000

Total unsecured	415,980	474.200	ä,	474,200
Total current liabilities - interest bearing liabilities	781,953	474,200	$\overline{\phantom{a}}$	474,200
Non current
Secured
Commercial paper	447,460
Commercial mortgage backed securities	700,575
Bank loans Intercompany foan*	442,090		525,026

Total secured	1,590,125	$\omega$	525,026	$\blacksquare$
Unsecured
Commercial notes	211,415
Bank loans	340,735
Total unsecured	552,150	$\omega$	٠
Total non current liabilities - interest bearing liabilities	2,142,275	×	525,026
Financing arrangements
	Consolidated		Parent Entity
	31 Dec 2004	30 Jun 2004	31 Dec 2004	30 Jun 2004
The Stapled Entity has access to the following lines of credit:	\$'000	\$'000	5'000	\$'000
Borrowing facilities
Commercial paper	578,200
Commercial mortgage backed securities	936,575
Commercial notes	211.417
Bank loans	1,420,061	400,000		400,000
Medium-term notes (MTN).		125,000	$\ddot{\phantom{a}}$	125,000
Preference shares	63,9B0
	3,210,233	525,000	$\overline{\phantom{a}}$	525.000
Used at balance date	2,924,229	474,200	٠	474,200
Unused at balance date	286,004	50,800		50,800

¹ The intercompany loan represents a loan from DB RREEF Finance Company Pty Limited.

$\bar{z}$

鬱

ä,

$\bar{z}$

Note 7. Current and non-current liabilities - interest bearing liabilities (continued)

DB RREEF Finance Pty Limited, a wholly-owned subsidiary of DRO, entered into syndicated bank debt facilities on 29 September 2004. The facilities include a \$300 milion three year, multi-currency revolving credit facility, a \$300 million 364 day revolving credit facility and a US\$210 million three year revolving credit facility. These facilities are supported
by Group guarantee arrangements. DB

DB RREEF Finance Pty Limited also entered into two bilateral arrangements on 29 September 2004. A \$170 million 364 day bridge facility which is non-revolving and its balance has been repaid by asset sale proceeds and the limit reduced to \$52 million as at 31 December 2004. A US\$200 million 180 day bridge facility was executed to provide lunds for the repayment of the US dollar denominated preference shares in December 2004 and May 2005. US\$160 million of this limit was cancelled in December 2004 when US\$160 million notes issued. The balance of US\$40 million notes will issue in March 2005 and the US dollar bridge will be cancelled. The US dollar denominated notes were privately placed with investors on terms to maturity ranging from December 2011 to March 2017.

DB RREEF Office Trust has liabilities resulting from the issuance of asset backed commercial paper ("CP") and commercial mortgage backed securities ("CMBS"). The CMBS
has a legal maturity date of October 2010 and an antici and CMBS. The CMBS has a legal maturity date of June 2007 and an anticipated maturity date of December 2005.

The consolidated accounts of the Group include the debt facilities of the US joint venture. The facilities include US\$125 million of bank mortgages that amortise through monthly principal and interest payments with a weighted average maturity date of September 2008, a US\$157 million CMBS maturing in September 2008, a US\$225 million secured bank loan maturing in September 2009, US\$5 million unsecured medium term notes maturing in September 2010 and US\$50 million preference shares.

In respect of current liabilities, it is management's intention to:

replace commercial paper as it matures, utilising existing commercial paper facilities
replace CMBS with new unsecured bank loans

-reduce bank loans by \$52 million from committed asset sales and extend remaining bank loans annually as they mature in accordance with their terms

repay preference shares utilising undrawn funds arranged in 2004 as part of the US private placement, with maturities of between seven and twelve years

ğ.

Page No. 18 of 28

Note 8. Contributed equity

	Consolidated		Parent Entity
	31 Dec 2004 \$'000	30 Jun 2004 \$000	31 Dec 2004 5'000	30 Jun 2004 \$'000

(a) Value of securities on issue
Opening balance as at 1 July 2004	1,028,028	976.048	1,028,028	976,048
Additional equity acquired on stapling	1,868,722
Placement of units		30,869		30,669
issue of stapled securities	54,472		21,101
issue of units to staple			316,263
Capital distribution to staple			(362, 916)
Distributions reinvested	6,980	21,111	6,980	21,111
Closing balance	2,958,202	1,028,028	1,009,456	1,028,028
(b) Number of securities on issue
Opening balance as at 1 July 2004	996,612,986	951,443,626	996,612,986	951,443,626
Additional units created on stapling	1,587,229,406
Placement of units:		26,862,822		26,862,822
issue of stapled securities	41,521,457		41,521,457
issue of units to staple.			1,581,311,602
Distributions reinvested		18,306,538	5,917,804	18,306,538
Cinsing balance.	2,625,363,849	996,612,986	2,625,363,849	996,612,986

Terms and conditions

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

Distribution reinvestment plan

The Trust has established a new distribution reinvestment plan ("DRP") under which holders of stapled securities may elect to have all or part of their distribution entitiements satisfied by the issue of new ordinary units rather than by being paid in cash.

Units were issued to existing unitroders under the old DAP plan in relation to distributions for the June 2004 and December 2003 distribution periods. Units will be issued under the new DRP for the half-year ended December 2004.

On 26 August 2004, 5,917,804 units were issued at a unit price of \$1.1795

Stabling unit change

$\sim 10$

$\mathcal{L}$

$\Delta\omega$ and $\Delta\omega$

On 30 September 2004, the Group was formed by the consolidation of the ODF, DIT, DOT and DRO, Each frust subscribed for units in accordance with the stapling ratios described in the Explanatory Memorandum and Product Disclosure Statement dated 30 August 2004.

As part of the staping process, the Trust, DIT and DOT each paid a special distribution by way of a capital return that was applied on behalf of each unitholder to subscribe for new issued units in each of the other trusts, including DRO. The number of units issued by each trust changed so that each trust had the same number of issued units. The number of stapled securities owned by an investor in DRT equals the same number of units in the Trust, DIT, DOT and DRO. Each frust has 2,825,363,849 units on issue.

On 19 October 2004, 1,581,311,602 units were issued by the parent at a unit price of \$0.2000 (refer to the Explanatory Memorandum and Product Disclosure Statement dated 30 August 2004). This was the price at which the Trust's units were issued to unithelitens of DIT and DOT as part of the stapling process described above. This was funded from the capital distribution that was paid by DIT and DOT.

On 4 November 2034, 41,521,457 units were issued by the Group at a unit price of \$1.3119. This issue of units was made in consideration for the acquisition of management rights from FAP, a subsidiary of Deutsche Australia Limited. The consideration paid was litrough the issue of fully paid DRT stapled securities priced at a volume weighted average price over the ten business days immediately following initial quolation of DRT securities on the Australian Stock Exchange. The parent's component of the DRT issue price was \$0.5082.

المسامات

$\sim$ $\sim$

للمحافظ المتعارض المقلب المستعمل المتعاطف المراجعات

$\sum_{i=1}^{N-1}$

Note 9. Reserves and undistributed income

Note 9. Reserves and undistributed income
	Consolidated		Parent Entity
	31 Dec 2004	30 Jun 2004	31 Dec 2004	30 Jun 2004
	\$'000	\$'000	\$'000	\$'000
(a) Reserves
Asset revaluation reserve	235,066	153,961	167,260	153,961
Forefor currency translation reserve	(623)		(343)
Total reserves	234,443	153,951	166,917	153,961
Movements:
Asset revaluation reserve
Opening balance as at 1 July 2004	153,961	147,317	153,961	147,317
Increment on revaluation of investment properties	15,250	7,698	16,250	7,698
Asset revaluation reserve acquired on stapling	85,194
Fair value adjustment for capitalised lease incentives	(2, 951)		(2, 951)
Total movement in asset revaluation reserve	98,493	7,698	13,299	7,698
Transfer to undistributed income	(17, 388)	(1.054)		(1.054)
Closing balance	235,066	153,961	167,260	153,961
Foreign currency translation reserve
Opening balance as at 1 July 2004
Foreign currency translation reserve acquired on stapling	127
Exchange difference arising from the translation of the financial statements of foreign operations	(750)		(343)
Total movement in foreign currency translation reserve	(623)		(343)
Closing balance	(523)		(343)

$\ddot{\phantom{0}}$

(b) Nature and purpose of reserves

Asset revaluation reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of assets.

Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
linancial statements of self-sustaining foreign operations.

(c) Undistributed income

(c) Undistributed income	Consolidated		Parent Entity
	31 Dec 2004 \$'000	30 Jun 2004 \$'000	31 Dec 2004 \$'000	30 Jun 2004 \$'000
Undistributed income at 1 July 2004 Net profit attributable to security holders Transfer from asset revaluation reserve Undistributed Income acquired on stapling Distributions provided for or paid	12.211 74.357 17.388 43.453 (136.519)	10.726 90.834 1.054 $\overline{\phantom{a}}$ (90, 403)	12.211 59,812 $\tilde{\phantom{a}}$ (69,372)	10.726 90.834 1.054 (90, 403)
Undistributed income at the end of the period	10.890	12.211	12.651	12,211

à.

ija.
P

Note 10. Distribution paid and payable

$\overline{\phantom{a}}$

	Consolidated		Parent Entity
	31 Dec 2004 \$'000	31 Dec 2003 \$000	31 Dec 2004 \$'000	31 Dec 2003 \$ 000
31 December (payable 28 February 2005)	136,519	44,522	59,372	44.522
Total distributions	136,519	44.522	59,372	44,522

	Consolidated		Parent Entity
	31 Dec 2004 Cents per security	31 Dec 2003 Cents per security	31 Dec 2004 Cents per unit	31 Dec 2003 Cents per unit
31 December payable	5.20	4.65	2.26	4.65

The number of units has increased by 1,622,833,059 for the parent as a result of the Transaction. Had the Transaction not occurred and the number of units outstanding
remained at 1,002,530,790, the distribution per unit by

$\bar{z}$

$\mathbf{\hat{g}}_{\mathrm{b}}$

Page No. 21 of 28

$\mathbb{Z}^2$

$\hat{\mathcal{A}}$

Note 11. Contingent liabilities

The directors of the Responsible Enlity are not aware of any matters in relation to the Group, other than those disclosed in the financial statements, which should
be brought to the attention of security holders as at the

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

31 Dec 2004 3'000	30 Jun 2004 \$ 000	31 Dec 2004 3'000	30 Jun 2004 \$'000

5.412
5.412	A SALE A PERSONAL BASE AND SALE METAL		.
	---------	Consolidated	Parent Entity .

$\frac{d}{2}a$

à.

$\ddot{\phantom{a}}$

Note 12. Events occurring after reporting date

Since the end of the period, the directors of the Responsible Entity are not aware of any matter or circumstance not otherwise dealt with in their report once me ensity me period, the uneclose of the responsive Erray are not aware of any mader of oriounstance not observed udar with it their report
Of the financial statements that has significantly or may significantly affec Group's affairs in future financial periods.

Note 13. Segment information

Business segments

The Group operates in the following segments:

Retail & Carpark - investment in the retail and car park property sectors

Commercial - investment in the commercial property sector

Industrial - investment in the industrial property sector

Financial Services - provision of finance services to the Trusts

31 December 2004	Retail & Car Park	Commercial	Industrial	Financial Services	Eliminations/ Unallocated	Consolidated
	\$'000	\$'000	\$'000	\$000	\$'000	\$'000
Rental and other property income	36,885	80,348	77,704			194,937
Share of net profits of associates accounted for using the equity method	2,978	572			(2,219)	1,331
Proceeds on sale of investments	211,501	44,650	26,341			282,492
Other revenue		256	643	8,664	(7, 646)	1,917
Total segment revenue	251,364	125,826	104,688	8,664	(9, 865)	480,677
Segment result	45.272	34,028	18,895		(23, 838)	74,357
31 December 2003	Retail & Car Park	Commercial	Industrial	Financial Services	Eliminations/ Unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Rental and other property income	35,763	25,117	17,684			78,564
Proceeds on sale of investments
Other revenue		$\hat{\phantom{a}}$	29,760		230	29,990
Total segment revenue	35,763	25,117	47,444		230	108,554
	25,215	18,482	12,612		(15, 328)	40,981
Segment result

a increasers are

$\mathbb{R}^d$

Geographical segments

$\sim$ 1000 and 1000 $\sim$ 1000 $\sim$

$\mathbb{R}^2$

$\mathbb{Z}$ $\sim$ $\sim$ $\ddotsc$

The Group's investments are located in Australia, New Zealand and the United States of America.

31 December 2004	Australia	New Zealand	United States of America	Consolidated
	5'000	\$'000	\$'000	\$'000
Rental and other property income	158,666		36,271	194,937
Share of net profits of associates accounted for using the equity method	1,331			1,331
Proceeds on sale of investments	282,492			282,492
Other revenue	1,232	135	550	1,917
Total segment revenue	443,721	135	36,821	480,677
Segment result	63,120	135	11,102	74,357
31 December 2003	Australia \$'000	New Zealand \$'000	United States of America \$'000	Consolidated \$'000
Rental and other property income	78,564	$\tilde{\phantom{a}}$		78,564
Proceeds on sale of investments	29,760			29,760
Other revenue	230	$\bullet$		230
Total segment revenue	108,554	٠		108,554
Segment result	40,981	٠		40,981

المادة وسيط

$\mathbb{R}^2$

ومتعاطي والمعاون ووالمواردة المقارب والمتقطعة الموارد والعامر والمراجع

Note 14. Earnings per security

	Consolidated		Parent Entity
	31 Dec 2004	31 Dec 2003	31 Dec 2004	31 Dec 2003
	Cents per security	Cents per security	Cents per unit	Cents per unit
Basic and difuted earnings	4.51	4.29	3.62	4.29
Weighted average number of securities outstanding used in the
calculation of basic and diluted earnings per security	1,650,198,385	955,592,264	1,650,198,385	955,592,284
Basic earnings per security before the Transaction	\$'000		\$'000
Net profit attributable to security holders	74.357		59,812
Add: Costs associated with the Transaction	43,296		15,100
	117,653		74.912
Add: Book value of property investments sold	262,922		258,535
Less: Proceeds from the sale of invesment properties	(282, 492)		(278,291)
Basic earnings before the Transaction and investment sales	98,053		55,156
Number of units had the Transaction not occurred			1,001,147,825
Basic earnings per security before the Transaction - cents per unit!	7.13		$7,48$ $^3$
Basic earnings per security before the Transaction and investment sales - cents per unit	5.94		5.51

'Basic earnings per unit before the Transaction incorporates the financial impact of the acquisition of the US REIT. The weighted average number of units has increased by 649,050,560 as a result of the Transaction. Had the Transaction not occurred, the weighted average number of units outstanding would be 1,001,147,825.

Note 15. Acquisitions of controlled entities

Name of entity	Country of	Class of	Equity
	Incorporation	shares	holding
DB RREEF Industrial Holdings LLC	United States of America	Ordinarv	80%

Acquisition of controlled entity

On 30 September 2004, the Group (via DDF and DIT) acquired 80% of DB RREEF Industrial Holdings, LLC. The operating results of this newly controlled entity have been included in the Statements of Financial Performance since the date of acquisition.

protection.

$\sim$ $\pm$

Details of the acquisition are as follows:

DOMINIO DI USO QUULISSISONI CHE CAR IMBUSTO,	5'000
Fair value of identifiable net assets of controlled entity acquired
Investment properties	1,446,780
Other assets	12,399
Cash assets	43.210
Interest bearing liabilities	(1.062, 279)
Payables	(44.636)
Provisions	(28, 422)
	367,052
Less: Outside equity interests	(73, 411)
	293,641
Goodwill on consolidation	3,443
Cash consideration	297,034

Outflow of cash to acquire controlled entity, net of cash acquired
Cash consideration	297,085
Less: Balances acquired Cash assets	(43.210)
	(43.210)
Outflow of cash

$\frac{\delta}{2\pi}$ :

Note 15. Acquisitions of controlled entities (continued)

Name of entities	Country of	Class of	Equity
	incorporation	shares	holding
DB RREEF industrial Trust (formerly Deutsche Industrial Trust)	Australia	Ordinarv	6%
DB RREEF Office Trust (formerly Deutsche Office Trust)	Australia	Ordinarv	6%
DB RREEF Operations Trust	Australia	Ordinary	0%

Acquisition of controlled entities

On 30 September 2004, DDF was deemed to acquire 100% of DB RREEF Industrial Trust, DB RREEF Office Trust and DB RREEF Operations Trust as a result of stapling the Trusts. The operating results of these newly controlled entities has been included in the Statement of Financial Performance since the date of acquisition.

Details of the acquisition are as follows:	\$'000
Fair value of identifiable net assets of controlled entities acquired
Investment properties	3.280.343
Investments accounted for using the equity method	37.106
Other assets	23.276
Cash assets	14.285
interest bearing liabilities	(1.319, 600)
Payables	(31,704)
Provisions	(13.374)
Net assets acquired on stapling	1,990,331
	1,990,331

$\mathcal{A}_\mathrm{c}$

$\bar{\mathcal{A}}$

Ñ,

ģ.

$\bar{t}$

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) DIRECTORS' DECLARATION FOR THE HALF YEAR ENDED 31 DECEMBER 2004

The directors of DB RREEF Funds Management Limited (formerly Paladin Australia Limited) as Responsible Entity of DB RREEF Diversified Trust (formerly Deutsche Diversified Trust) ("the Trust") a listed property trust declare that the financial statements and notes set out on pages 1 to 26:

(a) comply with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
give a frue and fair view of the Trust and the consolidated entity's financial position as at 31 December 2004 and of $(b)$ their performance, as represented by the results of their operations and their cash flows, for the half year ended on that date.

In the Directors' opinion:

(a) the financial statements and notes are in accordance with the Corporations Act 2001;
there are reasonable grounds to believe that the Trust will be able to pay its debts as and when they become due (b) and payable; and
(c) the Trust has operated in accordance with the provisions of the Constitution dated 15 September 1984 (as amended) during the half year ended 31 December 2004.

properties.

$\mathbb{R}^2$

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

Christopher T Beare Chair Svdney 28 February 2005

PRICEWATERHOUSE COPERS ®

PricewaterhouseCoopers ABN 52 780 433 757

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia www.pwc.com/au Telephone +61 2 8286 0000 Facsimile +61 2 8266 9999

Independent audit report to the stapled security holders of DB RREEF Diversified Trust (formerly Deutsche Diversified Trust)

Audit opinion

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

gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of DB RREEF Diversified Trust and the DB RREEF Diversified Trust Group (defined below) as at 31 December 2004 and of their performance for the half-vear ended on that date, and
is presented in accordance with the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory financial reporting requirements in Australia, and the Corporations Regulations 2001.

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

Scope

The financial report and directors' responsibility

The financial report comprises the statement of financial position, statement of financial performance, statement of cash flows, accompanying notes to the financial statements, and the directors' declaration for both DB RREEF Diversified Trust (the Trust) and the DB RREEF Diversified Trust Group (the consolidated entity) for the half-year ended 31 December 2004. The consolidated entity comprises both DB RREEF Diversified Trust (the registered scheme) and the entities it controlled during that half year.

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

Audit approach

We conducted an independent audit in order for the registered scheme to lodge the financial report with the Australian Securities and Investments Commission. Our audit was conducted in accordance with Australian Auditing Standards, in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the availability of persuasive rather than conclusive evidence. Therefore, an

por respecies

$\mathcal{A}$

PRICEWATERHOUSE(COPERS ®

audit cannot guarantee that all material misstatements have been detected. For further explanation of an audit, visit our website http://www.pwc.com/au/financialstatementaudit.

We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial Reporting and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the Trust's and the consolidated entity's financial position, and of their performance as represented by the results of their operations and cash flows.

We formed our audit opinion on the basis of these procedures, which included:

examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
assessing the appropriateness of accounting policies and disclosures used and the reasonableness of significant accounting estimates made by the directors.

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

While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls.

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

.
Videopolisti

Independence

In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations Act 2001.

concertations Cooper

Price hterhouseCoopers

DA Prothero Partner

Sydney 28 February 2004

AI assistant

DEXUS — Interim / Quarterly Report 2005

64807_rns_2005-02-27_a9357c43-3113-4940-8bd7-1428e21d6372.pdf

DB RREEF Trust

DB RREEF Trust (ASX: DRT) Half year results for the period ending 31 December 2004

Results for Announcement to the Market

DB RREEF Trust (ASX:DRT) Interim results to 31 December 2004

Completion of Merger

1. DRT Operational Results - Strong Property Performance

Commercial Portfolio

Industrial Portfolio

Retail Portfolio

US Industrial Portfolio

Sales and Acquisitions

2. Treasury, Debt Capital Management and Hedging

Debt Facilities

Duration and interest rate hedging

Foreian Income hedaina

Distribution Reinvestment Plan

3. Funds Management Business

4. Board Appointments and Management

Senior Management Platform

5. Future Direction and Strategy

Contact details

Annexure 1 - Key Balance Sheet Statistics

Results for the Interim Period Ended 31 December 2004

Annexure 2 - Property Portfolio

Commercial

Industrial

US Industrial

Annexure 3

Interest Rate Hedging

Foreign Income hedging

DB RREEF TRUST (ASX:DRT) - APPENDIX 4D

DB RREEF DIVERSIFED TRUST (ARSN 089 324 541)

Results for Announcement to the Market

Commentary of results

FINANCIAL STATEMENTS

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) (ARSN 089 324 541)

HALF YEAR REPORT 2004

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) DIRECTORS' REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2004

Directors

Review of operations

Significant changes in the state of affairs

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) DIRECTORS' REPORT (continued) FOR THE HALF YEAR ENDED 31 DECEMBER 2004

Rounding of amounts

Auditor

PRICEWATERHOUSE COPERS @

PricewaterhouseCoopers ABN 52 780 433 757

Auditors' Independence Declaration

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST)STATEMENTS OF FINANCIAL PERFORMANCEFOR THE HALF YEAR ENDED 31 DECEMBER 2004

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST)STATEMENTS OF FINANCIAL POSITIONAS AT 31 DECEMBER 2004

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) STATEMENTS OF CASH FLOWSFOR THE HALF YEAR ENDED 31 DECEMBER 2004

Note 1. Summary of significant accounting policies

(a) Basis of preparation

(b) Principles of consolidation

(c) Tax expense

(c) Tax expense (continued)

(d) Distributions

(e) Foreign currency

Foreign currency investments

Translation of foreign currency operations

Exchange rates

(f) International Financial Reporting Standards ("IFRS")

Investment properties

Financial instruments

FOR THE HALF YEAR ENDED 31 DECEMBER 2004 DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) NOTES TO THE FINANCIAL STATEMENTS (continued)

(f) International Financial Reporting Standards ("IFRS") (continued)

Income tax

Disclosure and presentation of equity

Lease Revenue

Note 2. Individually significant items

Australian and New Zealand assets:

US assets:

Note 3. Other expenses from ordinary activities

Valuations of investment properties

Note, 5 (c). Current and non-current assets - investments (continued)

DB RREEF Industrial Trust (continued)

DB REEEF Operations Trust

Acquisition

DEXUS Interim / Quarterly Report 2005

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST)
STATEMENTS OF FINANCIAL PERFORMANCE
FOR THE HALF YEAR ENDED 31 DECEMBER 2004

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST)
STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER 2004

DB RREEF DIVERSIFIED TRUST (FORMERLY DEUTSCHE DIVERSIFIED TRUST) STATEMENTS OF CASH FLOWS
FOR THE HALF YEAR ENDED 31 DECEMBER 2004