DB RRFFF

Managed in partnership with Deutsche Bank $\boxtimes$

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

Level 9 343 George Street Sydney NSW 2000

PO Box R1822 Royal Exchange NSW 1225

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

Email: [email protected]

Dear Sir / Madam

DB RREEF Trust (ASX: DRT) Half year results for the period ending 31 December 2005

Results for Announcement to the Market

Australian Stock Exchange Limited

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 2005 $\bullet$
Appendix 4D Statement "Results for announcement to the market";
Financial Statements (DB RREEF Diversified Trust) for the period ending 31 December 2005, including Independent Audit Report from PricewaterhouseCoopers;
Top 20 holders and holders spread

For further information, please contact

$\bullet$	Institutional Investors:	Tony Dixon	$(02)$ 9017 1136
	• Retail Investors:	Karol O'Reilly	$(03)$ 8611 2930
	• Media inquiries:	Kristin Silva	(02) 9249 9568

Yours sincerely

Tanya Cox Company Secretary

28 February 2006

The Manager

20 Bridge Street

Sydney NSW 2000

28 February 2006

DB RREEF Trust (ASX:DRT) Interim results to 31 December 2005

DB RREEF Funds Management Limited (DRFM), as responsible entity of DB RREEF Trust announces today the results for the six months to 31 December 2005.

Total income for the period was \$531.7 million and profit attributable to security holders of \$335.6 million. The underlying earnings per stapled security was \$155.8 million or 5.65 cents per security.

Distributions for the period ending 31 December 2005 was \$150.7m, which represents 5.45 cents per stapled security. The distribution for the period ending 31 December 2005 will be paid today, 28 February 2006. DRT's results are in line with the Explanatory Memorandum (EM) dated August 2004 in relation to the creation of DRT.

Total assets as at 31 December 2005 were \$7,549.5 million. The group's interest bearing liabilities were \$3,085.8 million representing gearing of 40%, down 4% on December 2004. Net Tangible Assets increased by 11% to \$3,725.5 million representing \$1.35 per stapled security.

DRT Portfolio Results - Strong Property Performance

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

As at 31 Dec 05	S Billion	X	Occupancy 943	Avg Lease Term ²
Commercial	3.4	49	97.5	6.6
Industrial	14	20	98.5	49
US Industrial ¹	13	18	91.2	3.3
Retail	0.9	13	99.4	5.6
TOTAL	7.0	100	95.1	5.4

¹ represents 80% ownership of US industrial portfolio

$2$ by area

$3$ by income

Other achievements in the portfolio include:

Leasing over 350,000sqm
Development approximately 59,000sqm completed ۰
Acquisitions New Zealand (NZ\$110 million) & United States (US\$28 million)

Commercial Portfolio

In the six months to December 2005, net property income from the commercial portfolio was \$119.3 million.

New leases, lease renewals and heads of agreement, accounting for approximately 45,000 sqm (6%) of portfolio area), were secured.

As a result, including current heads of agreement occupancy is 97.5% compared to 92.3% in December 2004. The leasing activity has helped extend the portfolio's average lease term to expiry by income to 6.6 years from 5.9 years at December 2004.

During the half year the Lumley Centre, Auckland NZ was completed and its acquisition concluded. In addition, the refurbishment at 321 Kent Street, Sydney was completed and 130 George Street Parramatta remains underway.

Since 31 December 2005, DRT has finalised a 10 year lease to the Commonwealth of Australia over 11.867 sqm at 130 George Street Parramatta increasing its occupancy to 98%.

Industrial Portfolio (Australia)

In the six months to December 2005, net property income from the industrial portfolio was \$54.4 million.

New leases, lease renewals and heads of agreement, accounting for almost 94,000 sqm (8% of portfolio area), were secured.

As a result, including current heads of agreement occupancy is 98.5% compared to 98.1% in December 2004. The leasing activity has helped extend the portfolio's average lease term to expiry by income to 4.9 years from 4.1 years at December 2004.

DRT completed 3 developments for a total value of over \$30 million during the period. DRT has a further 67,000 sqm of development underway, with 5 pre-commitments being secured during the 6 months ending 31 December 2005. The forecast average yield for these projects is approximately $8.1%$

Retail Portfolio

In the six months to December 2005, net property income from the retail portfolio was \$28.8 million.

New leases, lease renewals and heads of agreement, accounting for more than 31,000 sqm (11% of portfolio area), were secured.

As a result, including current heads of agreement occupancy is 99.4% which is in line with December 2004.

The redevelopment at Mt Druitt continues with stages 1 and 2 complete and final completion is due March 2006. The development pipeline for the retail portfolio includes significant expansions of Plenty Valley, Victoria and North Lakes in Queensland, both expected to commence late 2006.

US Industrial Portfolio

In the six months to December 2005, net property income from the US industrial portfolio was \$58.9 million.

New leases, lease renewals and heads of agreement, accounting for more than 2 million square feet (10% of portfolio area), were secured.

As a result, including current heads of agreement occupancy is 91.2% compared to 87.4% in December 2004. The portfolio's average lease term to expiry by income fell slightly from 3.3 years from 3.4 years at December 2004.

During the half year DRT acquired four properties, totalling approximately 450,000 square feet, in Minneapolis, Minnesota for \$US 28.0 million. These assets were 83% leased, with a current yield of 7.3%, expected to grow to 8.5%. In addition, DRT commenced a \$US 17 million development known as the Turnpike Distribution Centre located in Medley, Florida due for completion in 4^th quarter 2006.

Operations

At 31 December 2005, DB RREEF Funds Management managed over \$11.3 billion of assets, of which \$7.5 billion is owned by DRT. Revenue from the funds management business for the six months to 31 December 2005 was \$27.8 million at the DB RREEF Holdings Pty Limited level (50% owned by DB RREF Operations Trust), which generated a contribution before tax to DRT of \$2.3 million.

Outlook

The fundamentals in all the markets in which we operate are improving. We continue to focus on adding value to our portfolio through active management. Baring unforseen circumstances, DRT remains on target to achieve a full year distribution of 11.00 cents per security.

Contact details

For further information, please contact:

Institutional investors Victor Hoog Antink		61 2 9017 1130
	Tony Dixon	61 2 9017 1136
Retail Investors	Karol O'Reilly	61 3 8611 2930
Media	Kristin Silva	61 2 9249 9568

DB RREEF Trust (ASX:DRT) - Appendix 4D

Results for announcement to the market

Financial reporting for the half year ended 31 December 2005

DB RREEF Diversified Trust (ARSN 089 324 541)	Note 1
		31 December 2005	31 December 2004 % Change
Total Income (\$'000)		531,722	237,073	124%
Net Profit from ordinary activities after tax attributable to security holders and after minority interests - (\$'000)		335,607	89,464	275%
Net Profit attributable to security holders and after minority interests - (\$'000)		335,607	89.464	275%
Distribution to security holders - (\$'000)		150.735	136,519	10%
Distributions per security for the period ending: 31 December 2004 (Record date 31 December 2004) 31 December 2005 (Record date 30 December 2005).	Note 2	5.45	5.20
Total distributions - cents per unit		5.45	5.20
Total Assets (\$'000)		7,549,526	6,985,004
Total Borrowings (\$'000)		3,085,802	2.791,564
Security Holders Equity (\$'000)		3,725,599	3.500,355
Market Capitalisation (\$'000)		3.844.445	3,465,507
Net tangible assets (NTA) \$ per unit (excluding minority interests)		1.35	1.33
Securities price - \$		1.39	1.32
Securities on issue ('000)		2,765,788	2,625,384
Record date		30 December 2005	31 December 2004
Payment date - 31 December distribution		28 February 2006	28 February 2005

Distribution Reinvestment Plan (DRP)

DRT operates a DRP and details of the terms and conditions can be obtained from the DRT web site at www.dbrreef.com The record date for DRP election notices for the distribution period ending 31 December 2005 was 30 December 2005.

New Entities:

No entities were acquired during the half year ending 31 December 2005.

Results Commentry:

For a review of the results of DB RREEF Trust for the 31 December 2005 half year, refer to attached Media Release. Attached with this Appendix 4D is a copy of the audited Financial Statements for the half year ended 31 December 2005.

Notes:

Note 1: 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 entities in the group. DB RREEF Diversified Trust has been chosen as the deemed acquirer of the balance of the DRT stapled entities, comprising DB RREEF Industrial Trust, DB RREEF Office Trust and DB RREEF Operations Trust.

Note 2: Distributions for the period 1 July 2005 to 31 December 2005 is the aggregate of the distributions from DB RREEF Diversified Trust, DB RREEF Industrial Trust and DB RREEF Office Trust. The Annual Tax Statement, issued as at 30 June 2006, will provide details of the components of DRT's distribution. DB RREEF Operations Trust has not paid a distribution for the period 1 July 2005 to 31 December 2005.

COMBINED FINANCIAL STATEMENTS

DB RREEF DIVERSIFIED TRUST (ARSN 089 324 541)

HALF-YEAR REPORT 31 DECEMBER 2005

Contents	Page
DDF Directors' Report DIT Directors' Report DOT Directors' Report DRO Directors' Report	1 2 3 4
DDF Auditors' Independence Declaration DIT Auditors' Independence Declaration DOT Auditors' Independence Declaration DRO Auditors' Independence Declaration	5 6 7 8
Combined Consolidated Income Statements	9
Combined Consolidated Balance Sheets	10
Combined Consolidated Statements of Changes in Equity	11
Combined Consolidated Cash Flow Statements	12
Notes to the Combined Financial Statements	13
DDF Directors' Declaration DIT Directors' Declaration DOT Directors' Declaration DRO Directors' Declaration	64 65 66 67
Independent Audit Report to the Security Holders of DB RREEF Diversified Trust Independent Audit Report to the Unitholders of DB RREEF	68
Industrial Trust Independent Audit Report to the Unitholders of DB RREEF Office Trust	70 72
Independent Audit Report to the Unitholders of DB RREEF Operations Trust	74

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

Under Australian equivalents to International Financial Reporting Standards ("AIFRS"), DDF has been deemed the parent entity for accounting purposes. Therefore the DDF consolidated financial statements include all entities forming part of DRT. As DIT, DOT and DRO are disclosing entities, the financial statements of these entities as at 31 December 2005 are shown in adjacent columns in this report in accordance with ASIC Class Order CO 05/642: Combining Financial Reports of Stapled Security Issuers.

DB RREEF DIVERSIFIED TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The directors of DB RREEF Funds Management Limited ("DRFM") as Responsible Entity of DB RREEF Diversified Trust ("the Trust") and its consolidated entities ("the Stapled Entity") present their report together with the consolidated financial report of the Trust for the half-year ended 31 December 2005.

Directors

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

C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1
E A Alexander AM, BComm, FCA, FAICD, FCPA ¹²
B R Brownjohn BComm ¹²
S F Ewen FILE '
A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner)	Appointed 30 January 2006
V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD
C B Leitner BA
S A Mays BSc (Hons), MSc, MBA (Alternate to C B Leitner).	Resigned 30 January 2006
B E Scullin BEc ²³

¹ Independent Director ² Audit Committee Member

⁸ Compliance Committee Member

No directors held an interest in the Stapled Entity as at 31 December 2005 or at the date of this report.

Review of operations

On 27 September 2004, unitholders of the Trust, DB RREEF Industrial Trust ("DIT") and DB RREEF Office Trust ("DOT") voted to approve the stapling proposal 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.

Net profit attributable to security holders for the half-year ended 31 December 2005 was \$335.61 million (2004: \$89.46 million).

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 Stapled Entity, the results of those operations, or state of the Stapled Entity's affairs in future financial periods.

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

A copy of the Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 5.

Christopher T Beare Chair Sydney 27 February 2006

DB RREEF INDUSTRIAL TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The directors of DB RREEF Funds Management Limited ("DRFM") as Responsible Entity of DB RREEF Industrial Trust ("DIT") present their report together with the consolidated financial report of DIT for the half-year ended 31 December 2005.

Directors

The following persons were directors of DRFM during the whole of the half-year and up to the date of this report, intess otherwise stated:

C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1 E A Alexander AM, BComm, FCA, FAICD, FCPA ¹² B R Browniohn BComm ¹²
S F Ewen FILE '
A J Fay BAg Ec (Hons), ASIA (Alternate to C B Leitner)	Appointed 30 January 2006
V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD
C B Leitner BA
S A Mays BSc (Hons), MSc, MBA (Alternate to C B Leitner).	Resigned 30 January 2006
B E Scullin BEc ²³

¹ Independent Director

² Audit Committee Member

^® Compliance Committee Member

No directors held an interest in DIT as at 31 December 2005 or at the date of this report.

Review of operations

On 27 September 2004, unitholders of DIT, DB RREEF Diversified Trust ("DDF") and DB RREEF Office Trust ("DOT") voted to approve the stapling proposal outlined in the Explanatory Memorandum and Product Disclosure Statement dated 30 August 2004 to staple together DIT, DDF, 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.

Net profit attributable to unit holders for the half-year ended 31 December 2005 was \$84.93 million (2004: \$28.52 million).

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 DIT, the results of those operations, or state of DIT's affairs in future financial periods.

Rounding of amounts

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

A copy of the Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 6.

Christopher T Beare Chair Sydney 27 February 2006

DB RREEF OFFICE TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The directors of DB RREEF Funds Management Limited ("DRFM") as Responsible Entity of DB RREEF Office Trust ("DOT") present their report together with the consolidated financial report of DOT for the half-year ended 31 December 2005.

Directors

The following persons were directors of DRFM during the whole of the half-year and up to the date of this report, intess otherwise stated:

C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1
E A Alexander AM, BComm, FCA, FAICD, FCPA ¹²
B R Browniohn BComm ¹²
S F Ewen FILE '
A J Fay BAg Ec (Hons), ASIA (Alternate to C B Leitner)	Appointed 30 January 2006
V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD
C B Leitner BA
S A Mays BSc (Hons), MSc, MBA (Alternate to C B Leitner).	Resigned 30 January 2006
B E Scullin BEc ²³

¹ Independent Director

² Audit Committee Member

^® Compliance Committee Member

No directors held an interest in DOT as at 31 December 2005 or at the date of this report.

Review of operations

On 27 September 2004, unitholders of DOT, DB RREEF Diversified Trust ("DDF") and DB RREEF Industrial Trust ("DIT") voted to approve the stapling proposal outlined in the Explanatory Memorandum and Product Disclosure Statement dated 30 August 2004 to staple together DOT, DDF, DIT 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.

Net profit attributable to unit holders for the half-year ended 31 December 2005 was \$111.46 million (2004: \$58.72 million).

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 DOT, the results of those operations, or state of DOT's affairs in future financial periods.

Rounding of amounts

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

A copy of the Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 7.

Christopher T Beare Chair Sydney 27 February 2006

DB RREEF OPERATIONS TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The directors of DB RREEF Funds Management Limited ("DRFM") as Responsible Entity of DB RREEF Operations Trust ("DRO") present their report together with the consolidated financial report of DRO for the half-year ended 31 December 2005.

Directors

The following persons were directors of DRFM during the whole of the half-year and up to the date of this report, intess otherwise stated:

C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1 E A Alexander AM, BComm, FCA, FAICD, FCPA ¹² B R Browniohn BComm ¹²


A J Fay BAg Ec (Hons), ASIA (Alternate to C B Leitner)	Appointed 30 January 2006
V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD
C B Leitner BA
S A Mays BSc (Hons), MSc, MBA (Alternate to C B Leitner).	Resigned 30 January 2006
B E Scullin BEc ²³

S F Ewen FILE '

¹ Independent Director

² Audit Committee Member

^® Compliance Committee Member

No directors held an interest in DRO as at 31 December 2005 or at the date of this report.

Review of operations

On 27 September 2004, unitholders of DB RREEF Diversified Trust ("DDF"), DB RREEF Industrial Trust ("DIT") and DB RREEF Office Trust ("DOT") voted to approve the stapling proposal outlined in the Explanatory Memorandum and Product Disclosure Statement dated 30 August 2004 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.

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 Limited as Responsible Entity for DRO and 50% owned by First Australian Property Group Holdings Pty Limited ("FAP"), a subsidiary of the Deutsche Bank Group.

Net profit attributable to unit holders for the half-year ended 31 December 2005 was \$3.82 million (2004: \$1.56 million).

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 DRO, the results of those operations, or state of DRO's affairs in future financial periods.

Rounding of amounts

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

A copy of the Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 8.

'Z-

Christopher T Beare Chair Sydney 27 February 2006

Auditor's Independence Declaration

As lead auditor for the audit of DB RREEF Diversified Group for the half year ended 31 December 2005, 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 DB RREEF Diversified Trust and the entities it controlled during the period.

D.A. Prothero Partner PricewaterhouseCoopers

Sydney 27 February 2006

PricewaterhouseCoopers ABN 52 780 433 757

Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999

Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171

DX 77 Sydney Australia www.pwc.com/au

PricewaterhouseCoopers ABN 52 780 433 757

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

Auditor's Independence Declaration

As lead auditor for the audit of DB RREEF Industrial Group for the half year ended 31 December 2005, 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 DB RREEF Industrial Trust and the entities it controlled during the period.

D.A. Prothero Partner PricewaterhouseCoopers

Sydney 27 February 2006

PricewaterhouseCoopers ABN 52 780 433 757

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

Auditor's Independence Declaration

As lead auditor for the audit of DB RREEF Office Group for the half year ended 31 December 2005, 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 DB RREEF Office Trust and the entities it controlled during the period.

D.A. Prothero Partner PricewaterhouseCoopers

Sydney 27 February 2006

Auditor's Independence Declaration

As lead auditor for the audit of DB RREEF Operations Group for the half year ended 31 December 2005, 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 DB RREEF Operations Trust and the entities it controlled during the period.

D.A. Prothero Partner PricewaterhouseCoopers

Sydney 27 February 2006

Liability limited by a scheme approved under Professional Standards Legislation

PricewaterhouseCoopers ABN 52 780 433 757

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

DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST
COMBINED CONSOLIDATED INCOME STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

Page No. 9 of 75

	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2005 \$'000	31 Dec 2004 \$'000	31 Dec 2005 \$1000	31 Dec 2004 \$'000	31 Dec 2005 \$'000	31 Dec 2004 \$'000	31 Dec 2005 \$'000	31 Dec 2004 \$'000
Revenue from ordinary activities
Property revenue	326,012	193,656	47.279	46.105	117,292	108.757	1.513
Interest revenue	4,056	1,519	131	133	440	463	2,615	623
Interest revenue from Stapied Entities							19,055	8,659
Repoverables from Stapled Entities							551	8,929
Total revenue from ordinary activities	330,068	195,175	47,410	46.238	117,732	109.220	23,734	18.211

Share of net profits/(losses) of associates accounted for using the equity method	8,749	1,331	8,598	5,551	1,706	(2,939)	2.242	1,448
Net gais on sale of isvestment properties	96	19,570		Á
Net increment on revaluation of investments	184,085	20,599	54,740	13,806	47,858	25,279
Net increment on revaluation of derivatives	5,440				4,619		1,046
Net foreign exchange gain.	1,401	v	695		11
Other iscorne	1,883	398	66	32	1,817
Total income	531,722	237,073	111,509	65,627	173,743	131,560	27,022	19,659
Expenses
Property expenses	(75, 596)	(48, 254)	(8, 391)	(8, 188)	(27, 533)	(27,755)	(465)
Responsible Entity fees	(13, 549)	(5,197)	(2, 985)	(2,577)	(5, 816)	(5,346)
Finance costs	(80,080)	(40, 975)	(13, 825)	(10, 672)	(26,006)	(26, 492)	(21, 845)	(8,737)
Net loss on sale of investment properties				(187)
Net decrement on revaluation of derivatives			(1,080)
Costs associated with the Transaction		(43, 296)		(15,070)		(12,821)		(8,936)
Impainment of goodwiff	(3, 267)
Other expenses	(5, 213)	(2,304)	(302)	(409)	(1,442)	(428)	(223)	(119)
Total expenses	(177, 705)	(140, 026)	(26, 583)	(37, 103)	(60, 797)	(72,842)	(22, 533)	(17,792)
Profit before tax	354,017	97.047	84,926	28,524	112,946	58.718	4,489	1.867
Tax expense
Income tax expasse	(672)	(315)					(672)	(311)
Withholding tax expense	(7, 254)	(477)
Profit after tax	346,091	96,259	84,926	28,524	112,946	58,718	3,817	1,556
Profit attributable to:
Equity holders of the parent	135,399	74,701	84,926	28,524	111,463	58,718	3,817	1,556
Equity holders of other stapled enlities	200,208	14,763
Stapled security holders	335,607	89.464	84,926	28,524	111,463	58,718	3,817	1,556
Net profit attributable to other minority interests	10,484	6,795			1,483
Net profit	346,091	96,259	84,926	28,524	112,946	58,718	3,817	1,556
Earnings per stapied security	Cents	Cents	Cents	Cents	Cents	Cents	Cents	Cents
Basic earnings per unit on profit attributable to equity.	4.91	4.63	3.08	2.27	4.03	2.15	0.14	0.09
holders of the parent
Dituted earnings per unit on profit attributable to equity holders of the parent	4.91	4.53	3.08	2.27	4.03	2.15	0.14	0.09

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

DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST COMBINED CONSOLIDATED BALANCE SHEETS AS AT 31 DECEMBER 2005

Page No. 10 of 75

$30$ Jun 2005

$\$'000$

1.278

1.970

48.469

137

51,854

45,092

17,166

713.276

775,661

827,515

4.025

1.669

1,912

$7,040$

762,987

48,932

811.967

819,007

8.508

5,540

2,966

8,508

÷.

$\epsilon$

8,508

R 508

127

DDF Consolidated DIT Consolidated DOT Consolidated DRO Consolidated ------
30 Jun 2005 30 Jun 2005 $30$ Jun 2005 31 Dec 2005 31 Dec 2005 31 Dec 2005 31 Dec 2005 Notes $$000$ \$'000 $$000$ \$'000 $$000$ \$'000 $$100$ Current assets 3,199 Cash and cash equivalents 66.320 se oto $5.577$ 16.024 9.850 4.075 3.483 Repeivables 33.463 29.859 2.015 3.076 5.540 2.125 Held for sale investment properties $\overline{2}$ 9,700 $9,700$ Inventories $\bar{3}$ 3,369 48.469 Loan to third parties 5,006 5,006 Derivative financial instruments 1.221 417 887 10.950 3.098 Other 4.721 217 1.523 3.811 86 \$1.754 118,794 163,243 15,548 22,150 Total current assets 23,087 7.153 Non-current assets 7.057.696 $\overline{2}$ 6.548.832 1.028.332 2.449.051 Investment properties 964.197 2.640.346 $\overline{4}$ 45,092 45,092 Loans and receivables 45,092 $\epsilon_{\rm i}$ Property plant and equipment 68.567 56.982 Investments accounted for using the equity method 224,965 208,732 177,759 17,908 6 199,995 37,213 36,609 Deferred (ax assets 186 $127$ 186 $\overline{z}$ 205.789 Loan with related parties 138.948 140.182 207.354 1.292.879 Goodwill 3,215 Other 6.499 15,763 1,148 4,109 898 957 Derivative financial instuments 23,859 27,727 7.959 6.822 Total non-current assets 7.430.732 6.821.761 1.376.382 1.286.247 2.891.068 2.693.971 1,436,906 Total assets 7,549,526 6,985,004 1,391,930 1,297,998 2,914,155 2,716,121 1,444,059 Current liabilities Payables 86,996 118.479 7.576 10.459 23.440 24.050 6.631 Interest bearing liabilities $\bar{8}$ 326,476 369,836 354,338 300,643 Current lax liabilities 2.074 $2.595$ 1,579 $10^{\circ}$ 154,301 144,800 30,155 39,615 Provisions 71,636 35,517 Derivative financial instruments 867 2,164 816 77 8.673 1.121 Other 5,158 19 577,169 644,383 38,547 405,533 309,739 Total current liabilities $95,153$ 59,567 Non-current liabilities 2.421.728 1.055.580 962.449 Interest bearing liabilities 8 2.759.326 520.816 132.199 1.048.979 Loan with related parties 55,684 55,684 48,932 Deferred tax kabilities 30.307 23,637 $74$ 8,243 4,534 Derivative financial instruments 20,606 24,362 Derivative financial instruments with minority interest 33,043 1.327 375 Other 17,723 29.543 4.108 694 Total non-current liabilities 2,861,005 2,474,908 530,386 136,307 1,116,173 1,008,827 1,122,347 Total liabilities 3,438,174 3,119,291 568,933 541,840 1,211,326 1,068,394 1,432,086 4,111,352 3.865.713 822,997 756.158 1,702,829 1.647.727 11,973 Net assets Equity Equity attributable to equity holders of the parent Contributed equity $\theta$ 1,075,698 1,059,867 678,374 668,995 1,379,948 1,359,854 5,643 $(649)$
87,812 Reserves 1.321 $(512)$ 1.321 18 38 315,031 $227,112$ 143,302 89,330 Undistributed income 118,613 6,330 Parent unit holders' interest 1,392,050 1,286,467 822,997 756,158 1,498,579 1,449,222 11,973 Equity attributable to equity holders of other entities stapled to DDF Contributed equity 2,063,965 2.034.389 J. $\epsilon$ J. $(615)$ Reserves 1.339 $\blacksquare$ $\blacksquare$ , . $\blacksquare$ Undistributed income 268,245 180,110 $\ddot{\phantom{a}}$ $\ddot{\phantom{a}}$ Other stapled security holders' interest 2,333,549 2,213,888 Stapled security holders' interest 3,725,599 3,500,355 822,997 756,158 1,498,579 1,449,222 11,973 Other minority interest 385,753 365,358 204,250 198,505 3,865,713 4.111.352 1.647.727 Total equity 822.997 756.158 1,702.829 11,973

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

DB RREEF DIVERSIFIED TRUST. DB RREEF INDUSTRIAL TRUST, DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

DDF Consolidated DIT Consolidated DOT Consolidated DRO Consolidated Note 31 Dec 2005 31 Dec 2004 31 Dec 2005 31 Dec 2004 31 Dec 2005 31 Dec 2004 31 Dec 2005 31 Dec 2004 $$000$ \$000 $$000$ $$000$ Total equity at the beginning of the half-year 3.865.713 1.192.652 756,158 542,269 1.647.727 1.383.115 8,508 Adjustment on adoption of AASB 132 and AASB 139, netoffax: . er ann.
Referenci Profils $\begin{array}{c} \textbf{(2,128)} \ \textbf{(20)} \end{array}$ 3 AA3 719 $(455)$ $\ddot{\phantom{a}}$ Exchange differences on translation of foreign 3,783 $(750)$ 1,970 $(343)$ 63 operátions $(750)$ Net income recognised directly in equity $7,226$ 2.689 $(343)$ $(2, 148)$ -63 $(455)$ Profit from ordinary activities after tax 346,091 96.259 84.926 28.524 112,946 58.718 3,817 1,556 Total recognised income and expense for 353,317 95,509 87,615 28,181 110,798 58,781 3,362 1,556 the half-year Transactions with equity holders in their capacity as equity holders:
Contributions of equity and net capital distributions 61,452 ġ 45,407 9.379 137,271 20.094 $(61, 892)$ 103 5,540 to staple, net of transaction costs
Distributions provided for or paid $(150, 735)$ $(136, 519)$ $(30, 155)$ $(26,747)$ $(68, 070)$ $(50, 399)$ Transactions with minority interest: 50,960 Contribution of equity, net of transaction costs 2.476 69 Distributions provided for or paid $(11, 635)$ $(26)$
$66,335$ $(7,789)$ Misority interest on acquisition of subsidiary $(7,017)$
1,868,722 Foreign currency translation reserve 6,809 Additional equity acquired on stapling Foreign cerrency translation reserve acquired on stapling $127$ $127,870$ Undistributed income acquired on stapling $(107, 678)$ 2,030,904 $(55, 696)$ 103 $(20.776)$ 110.524 $(112.291)$ 5.540 Total transactions with equity holders 3,319,065 822,997 680,965 1,702,829 11,973 Total equity at the end of the half-year 4.111.352 1,329,605 7,096 Total recognised income and expense for the half-year is attributable to: Equity holders of the parent - DDF unitholders 135.399 74.701 111.463 58.718 84.926 28.524 3.817 1.556 Equity holders of other stapled entities 200,208 14,763 Security holders of DB RREEF Diversified Trast 335,607 89.464 84,926 28,524 111,463 58.718 3,817 1.556 Other minority interest 10,484 6,795 1,483 346,091 96,259 84,926 28,524 112,946 58,718 3,817 $1,556$ Total income and expense for the half-year

.
The above Combinad Consolidated Statements of Changes in Equity should be read in conjunction with the acconspanying notas.

DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST
COMBINED CONSOLIDATED CASH FLOW STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

		Page No. 12 of 75

		DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	Note	31 Dec 2005 \$'000	31 Dec 2004 \$'000	31 Dec 2005 \$1000	31 Dec 2004 \$'000	31 Dec 2005 \$'000	31 Dec 2004 \$'000	31 Dec 2005 \$'000	31 Dec 2004 \$'000
Cash flows from operating activities
Receipts in the course of operations (inclusive of GST)		369,279	179.711	55.401	45.167	126,909	106,931	29.712
Payments in the coorse of operations (inclusive of GST)		(143,513)	(88, 187)	(32, 554)	(16,836)	(44, 393)	(46, 295)	(431)	(15,654)
Interest received		5,303	904	131	133	435	455	3,871	6
Finance costs paid to financial institutions		(86, 673)	(52, 351)	(14, 753)	(10, 956)	(31, 679)	(20, 095)	(12, 453)	(5,790)
Distributions from investments accounted for using the		43,872	3,138	18,110		1,102	613	1,500
equity method
Income and withholding taxes paid		(2, 449)
Net cash inflow/(outflow) from operating activities
		185,819	43,215	26,335	17,508	52,374	41,609	22,199	(21, 438)
Cash flows from investing activities
Proceeds from sale of investment properties		96	334.251		4,200
Payment for purchase of controlled enlity, net of cash			(253, 875)
acquired
Cash acquired on stapling			14,285
Payments for capital expenditure on investment properties		(134, 586)	(89,006)	(18, 286)	(32, 381)	(38, 931)	(39, 630)	(7, 852)
Payments for investment properties		(137,023)	(63, 493)			(102, 539)
Payments for investments accounted for using the equity		(15, 136)	(144, 950)	(23, 211)	(138, 034)				(5,215)
method
Payments for inventory		(3, 341)
Payments for property, plant and equipment		(7, 650)
Payments for capital expenditure on property, plant and		(3,443)
equipment
Loan to third party							(4,959)
Proceeds from repayment of third party loan		5,049				5,049
Net cash outflow from investing activities		(295, 034)	(202, 786)	(41, 497)	(166, 215)	(136, 421)	(44,589)	(7, 852)	(5,215)
Cash flows from financing activities
Increase in minority interest		2,407	50,960
Borrowings provided to Stapled Entities								(432, 741)	(647, 563)
Establishment expenses and unit issue costs		(17)		(4)	(4)	(7)
Proceeds from borrowings	14 14	692,837 (445,092)	1,231,199	419,209 (376, 209)	197,272	135,115 (25, 250)	239.238 (185, 188)	508,000	675,462
Repayment of borrowings			(1,049,165)		(23, 154)			(85,000)
Distributions paid to security holders.		(135, 729)	(16, 190)	(30, 232)	(26, 451)	(15, 415)	(52, 811)	(1, 809)
Distributions paid to minority interests		(8,530)	(26)			(4, 223)
Net cash inflow/(outflow) from financing activities		105,876	216,778	12,764	147,663	90,220	1,239	(11, 550)	27,899

Net increase/(decrease) in cash and cash equivalents		(4, 339)	57,207	(2, 398)	(1,044)	6,173	(1,741)	2,797	1.246
Cash and cash equivalents at the beginning of the half-		68,959	2,487	5,577	5,157	9,850	5,139	1,278
year Effects of exchange rate changes on cash and cash		1,700	(3,444)	20		ŧ
equivalents
Cash and cash equivalents at the end of the half-year		66,320	56,250	3,199	4,113	16,024	3,398	4,075	1,246

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

Note 1. Summary of significant accounting policies

(a) Basis of preparation

On 30 September 2004, DB RREEF Diversified Trust and its subsidiaries ("the Group" or "the Stapled Entity") was formed by the stapling together of DDF, DIT, DOT and DRO ("the Trusts"). In accordance with AASB Interpretation 1002: Post-Date-of-Transition Stapling Arrangements, the Stapled Entity reflects a consolidated group. The parent entity and deemed acquirer of the trusts is DDF. The consolidated results reflect the performance of the parent, DDF, from 1 July 2004 and the additions of DIT, DOT and DRO from the date of consolidation, being 1 October 2004. Equity attributable to other stapled entities is a form of minority interest in accordance with AASB 1002 and in the DDF consolidated column, represents the equity of DIT, DOT and DRO. Other minority interests represents the equity attributable to parties external to the Stapled Entity.

The combined financial reports have been prepared under ASIC Class Order CO 05/642: Combining Financial Reports of Stapled Security Issuers, which allows issuers of stapled securities to include their financial statements and the consolidated or combined financial statements of the stapled group in adjacent columns in one financial report.

The DDF Consolidated column represents the consolidated financial report of DDF, which comprises DDF and its controlled entities, DIT and its controlled entities, DOT and its controlled entities and DRO and its controlled entities.

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

This general purpose interim financial report for the half-year ended 31 December 2005 has been prepared in accordance with the requirements of the Trusts' Constitutions, AASB 134: Interim Financial Reporting, and the Corporations Act 2001.

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

The financial report does not include notes of the type normally included in an annual financial report. Accordingly this report is to be read in conjunction with the annual financial reports of the stapled entity and each of the Trusts for the year ended 30 June 2005 and any public pronouncements made by the Stapled Entity during the half-year in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The financial statements of the Stapled Entity for the year ended 30 June 2005 were prepared in accordance with previous Australian Generally Accepted Accounting Principles ("AGAAP").

This is the first half-year financial report prepared in accordance with Australian Equivalents to International Financial Reporting Standards ("AIFRS"). The Stapled Entity changed its accounting policies on 1 July 2005 to comply with AIFRS. The transition to AIFRS has been accounted for in accordance with AASB 1: First Time Adoption of Australian Equivalents to International Financial Reporting Standards, with 1 July 2004 as the date of transition. Reconciliations and descriptions of the effects of transition from previous AGAAP to AIFRS are provided in note 15.

The accounting policies set out below have been applied in preparing the financial statements for the half-year ended 31 December 2005. With the exception of financial instruments, the comparative information presented in these financial statements has been restated to reflect these adjustments. The Stapled Entity has taken the exemption available under AASB 1 to only apply AASB 132: Financial Instruments: Disclosure and Presentation and AASB 139: Financial Instruments: Recognition and Measurement from 1 July 2005.

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

Note 1. Summary of significant accounting policies (continued)

(b) Principles of consolidation

Controlled entities

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

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. It should be noted that investors in DRT have been entitled to the returns from the underlying Trusts from 1 July 2004. The accounting policies of the subsidiary trusts are consistent with the parent.

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

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

Where control of an entity is obtained during a financial year, its results are included in the Income Statement from the date on which control is gained.

Partnerships and joint ventures

Where assets are held in a partnership or joint venture with another entity directly, the Stapled Entity's share of the results and assets of this partnership or joint venture is consolidated into the income statement and balance sheet of the Stapled Entity. Where assets are jointly controlled via ownership of units in single purpose unlisted unit trusts or shares in companies, the Stapled Entity applies equity accounting to record the operations of these investments (refer note 1(r)).

(c) Revenue recognition

Rent

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

Income support

Rental income support is brought to account on an accruals basis in accordance with the relevant contractual arrangements.

Interest income

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

(d) Dividends and distribution income

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

(e) Expenses

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

Property expenses

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

(e) Expenses (continued)

Financing costs to financial institutions

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

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

(f) Derivatives and other financial instruments

The Stapled Entity has adopted the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 July 2005. Therefore, the Stapled Entity has applied superseded AGAAP in the comparative information on financial instruments within the scope of AASB 132 and AASB 139. For further information on previous AGAAP refer to the annual financial report for the year ended 30 June 2005. The accounting policies set out below are applicable from 1 July 2005.

Derivatives $\langle i \rangle$

The Stapled Entity's activities expose it to changes in interest rates and foreign exchange rates. Accordingly, the Stapled Entity enters into various derivative financial instruments to manage its exposure to the movements in interest rates and foreign exchange rates. There are policies and limits approved by the board of directors of the Responsible Entity in respect of the usage of derivatives and other financial instruments to hedge those cash flows and earnings which are subject to interest rate risks and foreign currency risk respectively. In conjunction with its advisers, the Responsible Entity continually reviews the Stapled Entity's exposures and updates its treasury policies and procedures. The Stapfed Entity does not trade in derivative instruments for speculative purposes.

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

(ii) Embedded derivatives

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

(iii) Debt and equity instruments issued by the Stapled Entity

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

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

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

(iv) Loans and receivables

Loans and other receivables are measured at amortised cost using the effective interest rate method less impairment. Loan notes receivable are classified as loans and receivables and are recognised at amortised cost using the effective interest method less impairment.

Note 1. Summary of significant accounting policies (continued)

$(q)$ GST

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

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

(h) Taxation

Under current Australian income tax legislation DDF, DIT and DOT, are not liable for income tax provided they satisfy the requirements of the ATO. However, DRO is liable for tax on income relating to its funds management business which is accounted for as follows:

The income tax expense for the period is the tax payable on the current period's taxable income based on a tax rate of 30% adjusted for changes in deferred tax assets and liabilities and unused tax losses.
Deferred tax assets and liabilities are recognised for temporary differences arising from differences between the carrying amount of assets and liabilities and the corresponding tax base of those items. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax assets or liabilities. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability (where they do not arise as a result of a business combination and did not affect either accounting profit/loss or taxable profit/loss).
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.

Withholding tax payable on distributions received by the Stapled Entity from DB RREEF Industrial Properties Inc ("US REIT") are recognised as an expense as incurred. In addition, a deferred tax liability or asset and related deferred tax expense/benefit is recognised on differences between the tax cost base of US assets and liabilities in the Trust (held by US REIT) and their accounting carrying value at balance date. Any deferred tax liability or asset is calculated using a blend of the current withholding tax rate applicable to income distributions and the applicable US federal and state taxes.

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

(i) Distributions

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

(j) Repairs and maintenance

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

(k) Cash and cash equivalents

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

Note 1. Summary of significant accounting policies (continued)

(I) Receivables

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

(m) Inventories

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

(n) Property, plant and equipment

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

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

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

(o) Investment properties

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

The basis of valuations of investment properties is fair value being the amounts for which the assets could be exchanged between knowledgeable willing parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition and subject to similar leases. Where this is not available, an appropriate valuation method is used, which may include the discounted cashflow and the capitalisation method.

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

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

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

(i) Held for sale investment properties

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

Note 1. Summary of significant accounting policies (continued)

(p) Leasing fees

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

(q) Lease incentives

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

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

(r) Investments accounted for using the equity method

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

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

When the Stapled Entity's share of losses in an associate equals or exceeds its interest in the associate (including any unsecured receivables) the Stapled Entity does not recognise any further losses unless it has incurred obligations or made payments on behalf of the associate.

(s) Acquisition of assets

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

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

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

(t) Goodwill

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

Note 1. Summary of significant accounting policies (continued)

(u) Fair value estimation of financial assets and liabilites

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

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

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

(v) Payables

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

(w) Interest bearing liabilities

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

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

(x) Earnings per stapled security

Basic and diluted earnings per stapled security is determined by dividing the net profit attributable to security holders of the Stapled Entity by the weighted average number of ordinary stapled securities outstanding during the half-year.

(y) Foreign currency

Items included in the financial statements of the Stapled Entity are measured using the currency of the primary economic environment in which the entity operates (" the functional currency"). The financial statements are presented in Australian dollars, which is the Stapled Entity's functional and presentation currency of each of DDF, DIT, DOT and DRO.

(i) Foreign currency transactions

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

(ii) Foreign operations

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

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

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

Note 1. Summary of significant accounting policies (continued)

(z) Segment reporting

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

(aa) Rounding of amounts

The Stapled Entity is the kind referred to in Class Order 98/0100, issued by the Australian Securities and Investment Commission, relating to the rounding off of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

DIT Property	Ownership	Acquisition date	Cost including all additions \$'000	Independent valuation date	Independent valuation amount \$'000	independent valuer	Consolidated book value 31 December 2005 \$'000
2A Birmingham Street, Villawood	100%	Jun 1997	7,883	Sep 2003	8,600	(d)	9,700
Total DIT held for sale investment properties			7,883		8.600		9.780
Total held for sale investment properties			7,883		8.600		9,700

Note 2 (b). Investment properties

DIT
Property	Ownership	Acquisition date	Cost including all additions \$'000	Independent valuation date	Independent valuation amount \$'800	independent valuer	Consolidated book value 31 December 2005 \$'000	Consolidated book value 30 June 2005 \$'000
79-99 St Hilliers Road, Auburn, NSW	100%	Sep 1997	34,193	Jun 2005	41,000	(d)	41,230	41,000
1 Garigal Road, 3 Belrose, NSW	100%	Dec 1998	23,669	Dec 2004	27,400	(a)	29,200	27,400
2 Minna Close, Belrose, NSW	100%	Dec 1998	33,601	Dec 2004	32,400	(a)	33,164	33,090
114-120 Old Pittwater Road, Brookvale, NSW	100%	Sep 1997	32,892	Sep 2003	42.000	(a)	42,729	42,638
145-151 Arthur Street, Flemington, NSW	100%	Sep 1997	22,932	Jun 2005	31,000	$\langle f \rangle$	33,000	31,000
436-484 Victoria Road, Gladesville, NSW	100%	Sep 1997	27,650	Dec 2004	43,000	(d)	43,219	43,182
706 Mowbray Road, Lane Cove, NSW	100%	Sep 1997	22,045	Sep 2003	25,300	$^{(f)}$	26,036	25,923
1-15 Rosebery Avenue &	100%	Apr 1998	69,691	Dec 2005	92,800	(f)	92,800	81,219
1-55 Rothschild Avenue, Rosebery, NSW	100%	& Oct 2001
10-16 South Street, Rydalmere, NSW	100%	Sep 1997	35,686	Jun 2004	42,000	(f)	44,500	42,605
19 Chifley Street, Smithfield, NSW	100%	Dec 1998	11,521	Dec 2005	17,200	${a}$	17,200	13,498
3 Brookhollow Avenue, Baulkham Hills, NSW	100%	Dec 2002	42,320	Dec 2005	42,400	(f)	42,400	41,753
52 Holbeche Road, Arndell Park, NSW	100%	Jul 1998	11,296	Dec 2005	12,500	(d)	12,500	11,104
3-7 Bessemer Street, Blacktown, NSW	100%	Jun 1997	11,022	Sep 2003	10,100	(b)	10,208	10,202
30-32 Bessemer Street, Blacktown, NSW	100%	May 1997	12,340	Sep 2003	14,500	(b)	16,400	14,540
27-29 Liberty Road, Huntingwood, NSW	100%	Jul 1998	7,962	Sep 2003	7,300	${a}$	7,900	7,300
154 O'Ríordan Street, Mascot, NSW	100%	Jun 1997	11,028	Jun 2004	13,650	(a)	14,300	13,697
Egerton Industrial Estate, Silverwater, NSW	100%	May 1997	38,272	Dec 2005	42,000	(f)	42,000	39,601
239-251 Woodpark Road, Smithfield, NSW	100%	May 1997	5,063	Sep 2003	5,750	(b)	6,200	5,756
40 Biloela Street, Villawood, NSW	100%	Jul 1997	7,195	Sep 2003	7,000	(d)	7,400	7,019
2a Birmingham Avenue, Villawood, NSW	100%	Jun 1997	n/a	n/a	n/a			8,900
27-33 Frank Street, Wetherill Park, NSW	100%	Jul 1998	15,116	Dec 2003	12.650	(b)	13,530	12,685
11 Talavera Road, North Ryde, NSW	100%	Jun 2002	132,638	Jun 2003	130,000	(a)	135,380	134,566
1 Foundation Place, Greystanes, NSW	100%	Dec 2002	39,139	Dec 2004	41,700	(a)	41,921	41,905
352 Macaulay Road, Kensington, VIC	100%	Oct 1998	7,610	Dec 2005	8,900	(g)	8,900	7,300
250 Forest Road, South Lara, VIC	100%	Dec 2002	33,757	Jun 2005	34.600	(e)	37,000	34,600
Boundary Road, Laverton North, VIC	100%	Jul 2002	54,262	Jun 2004	23,700	(c)	70,900	43,803
Pound Road West, Dandenong, VIC	100%	Jan 2004	52,812	Jun 2005	56,250	(c)	56,349	56,250
114-116 Fairbank Road, Clayton, VIC	100%	Jul 1997	10,751	Sep 2003	10,800	${a}$	10,400	10,913
15-23 Whicker Road, Gillman, SA	100%	Dec 2002	19,783	Jun 2005	21,300	${e}$	21,300	21,300
25 Donkin Street South, Brisbane, QLD	100%	Dec 1998	18,945	Jun 2005	20,700	${e}$	23,500	20,700
30 Bellrick Street, Acacía Ridge, QLD	100%	Jun 1997	13,617	Dec 2005	17,375	(e)	17,375	11,919
121 Evans Road, Salisbury, QLD	100%	Jul 1997	16,943	Dec 2005	21,000	$\langle d \rangle$	21,000	18,450
68 Haster Road, Herdsman, WA	100%	Jul 1998	9,702	Jun 2004	8,000	(e)	8,391	8,379
Total DIT investment properties - non-current			885,453		956,275		1,028,332	964,197

DOT
Property	Ownership	Acquisition date	Cost including all additions \$'000	Independent valuation date	Independent valuation amount \$'000	independent valuer	Consolidated book value 31 December 2005 \$'000	Consolidated book value 30 June 2005 \$'000
Governor Phillip Tower & Governor Macquarie Tower Office Complex 1 Farrer Place, Sydney, NSW	50%	Dec 1998	468,675	Dec 2004	512.500	(a)	545.000	515,328
45 Clarence Street, Sydney, NSW	100%	Dec 1998	197,929	Jun 2005	195.000	$\langle f \rangle$	211.343	195,000
309-321 Kent Street, Sydney, NSW	50%	Dec 1998	148,001	Dec 2005	139.250	(c)	139,250	131,655
1 Margaret Street, Sydney, NSW	100%	Dec 1998	141,423	Jun 2005	139.000	(c)	139.324	139,000
Victoria Cross 60 Miller Street, North Sydney, NSW	100%	Dec 1998	83,924	Dec 2005	90,000	(f)	90.000	86,805
Zenith Centre, 821-843 Pacific Highway, Chatswood, NSW	100%	Dec 1998	190,518	Jun 2004	216,000	(d)	212,000	223,698
240 St Georges Terrace, Perth, WA	100%	Jan 2001	238,835	Jun 2005	270,000	(e)	270,441	269,997
30-34 Hickson Road, Sydney, NSW	100%	May 2002	117,682	Mar 2004	122,000	(a)	130,000	123,654
Southgate Complex, 3 Southgate Avenue, Southgate, VIC	100%	Aug 2000	348,386	Jun 2005	361,000	(g)	380,000	361,002
O'Connell House, 15-19 Bent Street, Sydney, NSW	100%	Aug 2000	49,121	Sep 2004	55,500	$\langle f \rangle$	51,500	56,590
201 Elizabeth Street, Sydney, NSW	50%	Aug 2000	109,682	Dec 2004	117,000	$\langle f \rangle$	115,000	117,190
Garema Court, 140-180 City Walk, Civic, ACT	100%	Aug 2000	43,313	Oct 2003	44.600	(a)	44.864	44,865
Australia Square, 264 George St, Sydney, NSW	50%	Aug 2000	195,979	Jun 2005	184.000	(a)	198.000	184,267
88 Shortland St, Auckland, New Zealand	100%	Sep 2005	102,571	Dec 2005	113,624	(d)	113,624
Total DOT investment properties - non-current			2,436,039		2,559,474		2,640,346	2.449.051
Other consolidated investment properties - non-current
Kings Park Industrial Estate, Bowmans Road, Marayong, NSW	100%	May 1990	71,844	Jun 2005	78,500	(a)	82,500	78,500
Target Distribution Centre, Lot 1, Taras Avenue, Altona North, VIC	100%	Oct 1995	25,430	Jun 2005	35,000	(f)	35,000	35,000
Axxess Corporate Park, 164-180 Forster Road, 11 & 21-45 Gilby Road,	100%	Oct 1996	126,157	Dec 2005	147,750	(f)	147,750	109,444
307-355 Femtree Gully Road, Mount Waverley, VIC
Knoxfield Industrial Estate, 20 Henderson Road, Knoxfield, VIC	100%	Aug 1996	30,127	Sep 2003	31.250	(e)	31,907	31,885
12 Frederick Street, St Leonards, NSW	100%	Jul 2000	25,080	Jun 2005	31,500	(e)	33,000	31,500
40 Talavera Road, North Ryde, NSW	100%	Oct 2002	32,516	Apr 2005	28,500	$\langle f \rangle$	29,594	29,498
Wallgrove, Eastern Creek, NSW	100%	Mar 2004	23,553	n/a			23,553	23,523
Redwood Gardens Industrial Estate Stages 3,5,6 & 7 and Lot 4, Dingley, VIC'	100%	Dec 1994	23,454	Jun 2003	22,040	(c)	24.400	23,206
44 Market Street, Sydney, NSW	100%	Sep 1987	162,298	Jun 2003	144.000	(c)	151,162	149,376
8 Nicholson Street, Melbourne, VIC	100%	Nov 1993	69,421	Jun 2005	91,800	(g)	93,226	91,800
Ferguson Centre, 130 George Street, Parramatta, NSW	100%	May 1997	78,377	Jun 2003	43,800	(a)	63,760	49,626
Flinders Gate Complex, 172 Flinders Street and 189 Flinders Lane. Melbourne, VIC	100%	Mar 1999	13,590	Sep 2003	15,500	(g)	14,000	15,538
383-395 Kent Street, Sydney, NSW	100%	Sep 1987	104,832	Sep 2003	104,000	(c)	108,000	105,138
14 Moore Street, Canberra, ACT **	100%	May 2002	37,226	Apr 2005	36,250	(e)	38,250	36,250
Sydney CBD Floor Space ²	100%	Jul 2000	n/a	n/a			2,173	2,390
Whitford City Shopping Centre Marmion & Whitfords Avenue, Hillarys, WA ³	50%	Oct 1984	127,660	Dec 2005	200,000	(e)	200,000	185,997
Whitfords Avenue Lot 6 Endeavour Road, Hillarys, WA ³	50%	Dec 1992	5,492	Dec 2005	10.000	(e)	10,000	8,613
West Lakes Shopping Centre, West Lakes, SA	50%	Nov 1998	116,346	Dec 2005	131,000	(e)	131,000	122,892
Plenty Valley Town Centre, 330-464 McDonald's Road, South Morang, VIC*	50%	Nov 1999	17,535	Jun 2003	16,000	(d)	20,000	20,601
North Lakes Shopping Centre, Mango Hill, QLD ³	50%	Aug 2004	67,064	Jun 2004	60,250	(c)	75,000	65,049
Albert & Charlotte Streets Carpark, Brisbane, QLD	100%	Oct 1984	13,778	Sep 2003	32.000	(d)	37,500	32,035
34-60 Little Collins Street, Melbourne, VIC **	100%	Nov 1984	16,164	Sep 2003	41.500	(g)	47,000	41,522

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

* This relates to heritage floor space retained following the disposal of 1 Chiltey Square, Sydney.

The valuation reflects 50 percent of the independent valuation amount.

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

Other consolidated investment properties - non-current (continued)

Property	Ownership	Acquisition	Cost	Independent	Independent	independent	Consolidated	Consolidated
		date	including all	valuation	valuation	valuer	book value	book value
			additions \$'000	date	amount \$'800		31 December 2005 \$'000	30 June 2005 \$'000

32-44 Flinders Street, Melbourne, VIC	100%	Jun 1998	21,239	Sep 2003	24,600	$\langle g \rangle$	27,500	24,575
Flinders Gate Complex, (including air development rights)	100%	Mar 1999	47,043	Sep 2003	45,275	(g)	44,000	45,275
172 Flinders Street, Melbourne, VIC
383-395 Kent Street, Sydney, NSW	100%	Sep 1987	30,257	Sep 2003	40.000	(c)	49,000	39,420
John Martin's Carpark & Retail Plaza Joint Venture	1%	Sep 1994					100	100
Westfield Hurstville, 262-264 Forest Road and 292 Forest Road, Hurstville, NSW	50%	May 2005	245,913	Feb 2005	232,500	$\langle d \rangle$	245,913	232,730
3765 Atlanta Industrial Drive, Atlanta	80%	Sep 2004	6,468	ปนก 2005	6,984	(c)	7,055	6,702
7100 Highlands Parkway, Atlanta	80%	Sep 2004	19,074	Jun 2005	18,006	(c)	18,008	17,277
Town Park Drive, Atlanta	80%	Sep 2004	8,960	Jun 2005	9.067	(c)	9,233	8,701
Williams Drive, Atlanta	80%	Sep 2004	12,579	Jun 2005	11,299	(c)	11,499	10,842
Stone Mountain, Atlanta	80%	Sep 2004	9,127	Jun 2005	6,994	(c)	7,179	6,711
MD Food Park, Baltimore	80%	Sep 2004	25,216	Jun 2005	30,828	(c)	30,900	29,581
West Nursery, Baltimore	80%	Sep 2004	9,563	Jun 2005	8,898	(c)	9,043	8,538
Cabot Techs, Baltimore	80%	Sep 2004	28,288	Jun 2005	32,738	(c)	33,129	31,414
9112 Guildford Road, Baltimore	80%	Sep 2004	11,007	Jun 2005	12.822	(c)	12,870	12,304
8155 Stayton Drive, Baltimore	80%	Sep 2004	9,440	Jun 2005	10,144	(c)	10,478	9,734
Patuxent Range Road, Baltimore	80%	Sep 2004	15,064	Jun 2005	16,232	(c)	16,378	15,576
Bristol Court, Baltimore	80%	Sep 2004	13,196	ปนก 2005	14,049	(c)	14,472	13,481
NE Baltimore, Baltimore	80%	Sep 2004	9,639	Jun 2005	10.952	(c)	11,020	10,509
1181 Portal, 1831 Portal and 6615 Tributary, Baltimore	80%	Jun 2005	14,130	Apr 2005	13,779	(c)	14,130	13,446
10 Kenwood Circle, Boston	80%	Sep 2004	14,567	Jun 2005	14.050	(c)	14.070	13,482
Commerce Park, Charlotte	80%	Sep 2004	9,350	Jun 2005	9,038	(c)	9,038	8,672
9900 Brookford Street, Charlotte	80%	Sep 2004	5,200	Jun 2005	5.047	(c)	5,081	4,843
Westinghouse, Charlotte	80%	Sep 2004	25,807	Jun 2005	23.498	(c)	23,712	22,548
Airport Exchange, Cincinnati	80% 80%	Sep 2004	5,291	Jun 2005	4.948	(c)	5,021	4,748
Empire Drive, Cincinnati		Sep 2004	7,357	Jun 2005	8,364	(c)	8,393	8,026
International Way, Cincinnati	80%	Sep 2004	13,847	Jun 2005	13,641	(c)	14,591	13,089
Kentucky Drive, Cincinnati	80% 80%	Sep 2004 Sep 2004	14,881	Jun 2005 Jun 2005	14,664 6,740	(c)	14,768 6,838	14,071 6,468
Spiral Drive, Cincinnati Turfway Road, Cincinnati	80%	Sep 2004	7,105 6,475	Jun 2005	6.498	(c)	6,601	6,235
124 Commerce, Cincinnati	80%	Sep 2004	3,069	Jun 2005	2.796	(c)	2,818	2,683
Kenwood Road, Cincinnati	80%	Sep 2004	23,862	Jun 2005	23,368	(c) (c)	23,468	22,423
Lake Forest Drive, Cincinnati	80%	Sep 2004	16,168	Jun 2005	15,385	(c)	15,789	14,763
World Park, Cincinnati	80%	Sep 2004	16,425	ปนก 2005	13,504	(c)	15,089	12,958
Equity/Westbelt/Dividend, Columbus	80%	Sep 2004	47,276	Jun 2005	52,025	(c)	53,248	49,921
2700 International Street, Columbus	80%	Sep 2004	4,801	Jun 2005	5,418	(c)	5,451	5,199
3800 Twin Creeks Drive, Columbus	80%	Sep 2004	6,264	Jun 2005	6,548	(c)	6,630	6,283
SE Columbus, Columbus	80%	Sep 2004	17,434	Jun 2005	15,291	(c)	16,151	14,673
Arlington, Dallas	80%	Sep 2004	11,854	Jun 2005	11,322	(c)	11,487	10,864
1900 Diplomat Drive, Dallas	80%	Sep 2004	5,542	Jun 2005	5.866	(c)	5,866	5,628
2055 Diplomat Drive, Dallas	80%	Sep 2004	4,154	Jun 2005	4.616	(c)	5,424	4,429
1413 Bradley Lane, Dallas	80%	Sep 2004	4,220	Jun 2005	3,683	(c)	3,683	3,534
North Lake, Dallas	80%	Sep 2004	11,868	ปนก 2005	14,186	(c)	14,253	13,613
555 Airline Drive, Dallas	80%	Sep 2004	8,203	Jun 2005	8,457	(c)	8,476	8,115
455 Airline Drive, Dallas	80%	Sep 2004	4,096	Jun 2005	4.774	(c)	4,774	4,581
Hillguard, Dallas	80%	Sep 2004	11,045	Jun 2005	10.964	(c)	11,597	10,521
11011 Regency Crest Drive, Dallas	80%	Sep 2004	8.961	Jun 2005	8.335	(c)	8.332	7.997

Other consolidated investment properties - non-current (continued)

Property	Ownership	Acquisition	Cost	Independent	Independent	Independent	Consolidated	Consolidated
		date	including all	valuation	valuation	valuer	book value	book value
			additions	date	amount		31 December 2005	30 June 2005
			\$'000		\$'000		\$'000	\$'000
East Collins, Dallas	80%	Sep 2004	4,708	Jun 2005	5,304	(c)	5,452	5,090
3601 East Plano/1000 Shiloh, Dallas	80%	Sep 2004	16,910	Jun 2005	18,924	(c)	19,859	18,158
East Plano Parkway, Dallas	80%	Sep 2004	27,743	Jun 2005	28,155	(c)	28,458	27,016
820-860 Avenue F, Dallas	80%	Sep 2004	8,737	Jun 2005	9,624	(c)	9,796	9,234
10th Street, Dallas	80%	Sep 2004	12,222	Jun 2005	11,936	(c)	12,361	11,453
Capital Avenue Dallas	80%	Sep 2004	7,549	Jun 2005	7,025	(c)	7,073	6,741
CTC @ Valwood, Dallas	80%	Sep 2004	4,546	Jun 2005	4,911	(c)	5,001	4,712
Brackbill, Harrisburg	80%	Sep 2004	28,686	Jun 2005	31,374	(c)	31,398	30,105
Mechanicsburg, Harrisburg	80%	Sep 2004	23,692	Jun 2005	24,826	(c)	25,842	23,822
181 Fulling Mill Road, Harrisburg	80%	Sep 2004	11,550	Jun 2005	12,320	(c)	12,332	11,822
Glendale, Los Angeles	80%	Sep 2004	66,422	Jun 2005	76,556	(c)	77,020	73,460
14489 Industry Circle, Los Angeles	80%	Sep 2004	9,321	Jun 2005	11,376	(c)	11,387	10,916
14555 Alondra/6530 Altura, Los Angeles	80%	Sep 2004	23,583	Jun 2005	28,373	(c)	28,389	27,225
San Fernando Valley, Los Angeles	80%	Sep 2004	19,808	Jun 2005	24,144	(c)	24,169	23,168
Memphis Industrial, Memphis	80%	Sep 2004	12,555	Jun 2005	12.959	(c)	12,957	12,435
2950 Lexington Avenue S, Minneapolis	80%	Sep 2004	11,895	Jun 2005	11,595	(c)	11,617	11,126
Mounds View, Minneapolis	80%	Sep 2004	26,317	Jun 2005	25,756	(c)	26,166	24,714
6105 Trenton Lane, Minneapolis	80%	Sep 2004	10,135	Jun 2005	9,958	(c)	9,962	9,555
8575 Monticello Lane, Minneapolis	80%	Sep 2004	2,349	Jun 2005	2,611	(c)	2,711	2,506
7401 Cahill Road, Minneapolis	80%	Sep 2004	3,653	Jun 2005	3,023	(c)	3,042	2,901
CTC @ Dulles, Northern Virginia	80%	Sep 2004	33,411	Jun 2005	35,466	(c)	35,466	34,031
Alexandria, Northern Virgínia	80%	Sep 2004	60,383	Jun 2005	72,166	(c)	72,527	69,247
Nokes Boulevard, Northern Virginia	80%	Sep 2004	27,369	Jun 2005	37.512	(c)	37,558	35,995
Guildford, Northern Virginia	80%	Sep 2004	22,628	Jun 2005	28,373	(c)	29,034	27,225
Beaumeade Telecom, Northern Virginia	80%	Sep 2004	43,086	Jun 2005	46,378	(c)	46,636	44,503
Orlando Central Park, Orlando	80%	Sep 2004	75,624	Jun 2005	79,437	(c)	80,356	76,224
7500 Exchange Drive, Orlando	80%	Sep 2004	7,081	Jun 2005	7,540	(c)	7,909	7,235
105-107 South 41st Avenue, Phoenix 1429-1439 South 40th Avenue, Phoenix	80% 80%	Sep 2004 Sep 2004	18,919	Jun 2005	20,461 14,186	(c)	21,255 14,186	19,634
10397 West Van Buren St., Phoenix	80%	Sep 2004	11,933 9,621	Jun 2005 Jun 2005	14,186	(c)	14,173	13,613 13,613
844 44th Avenue, Phoenix	80%	Sep 2004	8,093	Jun 2005	9.821	(c)	9,837	9,424
220 South 9th Street, Phoenix	80%	Sep 2004	8,824	Jun 2005	9,139	(c)	9,237	8,770
431 North 47th Avenue, Phoenix	80%	Sep 2004	7,907	Jun 2005	9,412	(c) (c)	9,446	9,031
601 South 55th Avenue, Phoenix	80%	Sep 2004	5,679	Jun 2005	6,411	(c)	6,422	6,152
1000 South Priest Drive, Phoenix	80%	Sep 2004	6,344	Jun 2005	6.820	(c)	6,820	6,545
1120-1150 W. Alameda Drive, Phoenix	80%	Sep 2004	9,607	Jun 2005	10,238	(c)	10,425	9,824
1858 East Encanto Drive, Phoenix	80%	Sep 2004	5,438	Jun 2005	5,593	(c)	5,652	5,366
3802-3922 East University Drive, Phoenix	80%	Sep 2004	12,346	Jun 2005	13,087	(c)	13,255	12,558
Chino, Riverside	80%	Sep 2004	7,965	Jun 2005	8,866	(c)	8,998	8,508
Mira Loma, Riverside	80%	Sep 2004	13,941	Jun 2005	18.620	(c)	18,611	17,866
Ontario, Riverside	80%	Sep 2004	38,864	Jun 2005	48,571	(c)	48,705	46,607
4190 East Santa Ana Street, Riverside	80%	Sep 2004	6,407	Jun 2005	8,116	(c)	8,119	7,788
Rancho Cucamonga, Riverside	80%	Sep 2004	29,239	Jun 2005	37,091	(c)	37,623	35,591
12000 Jersey Court, Riverside	80%	Sep 2004	5,704	Jun 2005	7,593	(c)	7,736	7,286
Airway Road, San Diego	80%	Sep 2004	12,053	Jun 2005	15,387	(c)	15,430	14,765
5823 Newton Drive, San Diego	80%	Sep 2004	22,393	Jun 2005	26.190	(c)	26,190	25,131
2210 Oak Ridge Way, San Diego	80%	Sep 2004	6,821	Jun 2005	8.184	(c)	8.192	7,853

Other consolidated investment properties - non-current (continued)

Property	Ownership	Acquisition date	Cost including all additions \$'000	Independent valuation date	Independent valuation amount \$'000	independent valuer	Consolidated book value 31 December 2005 \$'000	Consolidated book value 30 June 2005 \$'000
Kent West, Seattle	80%	Sep 2004	33,985	Jun 2005	36.963	(c)	37,323	35,468
26507 79th Avenue - South, Seattle	80%	Sep 2004	3,582	Jun 2005	3.683	(c)	3,696	3,534
8005 S. 266th Street, Seattle	80%	Sep 2004	9,355	Jun 2005	10,159	(c)	10,211	9,748
West Palm Beach, South Florida	80%	Sep 2004	28,658	Jun 2005	27,963	(c)	28,045	26,831
Calvert/Murry's, Northern Virginia	80%	Sep 2004	6,908	Jun 2005	7.079	(c)	7,179	6,793
7700 68th Avenue, Brooklyn Park	100%	Nov 2005	7.475	Nov 2005	7.268	(c)	7,271
7500 West 78th Street, Bioominaton	100%	Nov 2005	6,354	Nov 2005	8.615	(c)	8.621
1285 & 1301 Corporate Center Drive, 1230 & 1270 Eagan Industrial Road, Eagan	100%	Nov 2005	20,961	Nov 2005	20.539	(c)	20,551
Total other consolidated investment properties - non-current			3.006.608		3.246.696		3.389.018	3,135,584
Total investment properties - non-current			6,328,100		6.762,445		7.057.696	6,548,832

(a) Colliers International

(b) Landmark White

(d) Jones Lang LaSalle

(e) Knight Frank Valuations (f) FPD Savills

(g) M3 Property

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

Note 2 (c), Investment properties

DB RREEF Diversified Trust

Developments

Ferguson Centre, 130 George Street, Parramatta, NSW In August 2005 construction began on the refurbishment of 130 George Street. The estimated project cost is \$28 million and completion is anticipated for March 2006.

Kings Park Industrial Estate, NSW

In September 2005, construction began on the development of Lot 61 Coronation Avenue. The estimated project cost is \$5.4 million and completion is anticipated for March 2006.

Axxess Corporate Park, VIC

The latest addition to this estate reached practical completion in November 2005. This 7,893 square metre office building was pre-leased to Alinta Limited with lease commencement from practical completion. In December 2005, the Trust entered into agreements to lease and construct an office building for Bonland Daines Pty Limited. The estimated project cost is \$24 million and completion is anticipated for June 2006. In January 2006, the Trust entered into agreements to lease and construct an office building for Omron Electronics Pty Limited. The estimated project cost is \$3 million and completion is anticipated for April 2006.

DB RREEF Industrial Trust

Disposals

Birmingham Avenue, Villawood, NSW

In December 2005, DIT entered into an agreement for sale of 2A Birmingham Avenue, Villawood for \$10.3 million. Settlement is due to occur on 31 May 2006 but the purchaser, by paying a non refundable option fee of \$1.5 million, can delay settlement for a further twelve months. The property will continue to be leased to the existing tenant until either settlement date.

Rothschild Avenue, Rosebury

In February 2005, DIT sold part of Rothschild Avenue, Rosebury, Legal proceedings in relation to interest payable on the settlement sum are continuing and are due to be heard in the the New South Wales Court of Appeal in M

Developments

Boundary Road, North Laverton, VIC In June 2005. DfT entered into agreements to lease and build a major distribution centre for Coles Myer Limited. Construction of this building has commenced and completion is expected in December 2006.

DB RREEF Office Trust

Acquisitions

NRM Tower, Auckland In September 2005, DOT purchased 88 Shortland Street, Auckland for NZ\$110.4 milliion (\$100.2 million)

DB RREEF Industrial Properties, Inc.

Acquisitions

Minneapolis Industrial Portfolio, Minnesota

In November 2005, DB RREEF Industrial Properties, Inc. purchased 7700 68th Avenue, Brooklyn Park, 7500 West 78h Street, Bloomington and 1285 & 1301 Corporate Center Drive, 1230 & 1270 Eagan Industrial Road, located in various cities of Minnesota for \$33.9 million. 9955 Valley View Road, Eden Prairie was also acquired for \$3.4 million and has been classified as inventory.

Note 2 (d). Investment properties

Reconciliation

	DDF Consolidated		DIT Consolidated		DOT Consolidated
	31 Dec 2005	30 Jun 2005	31 Dec 2005	30 Jun 2005	31 Dec 2005	30 Jun 2005
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Carrying amount at 1 July 2005	6,548,832	1,635,508	964,197	862,280	2,449,051	2,290,951
Properties acquired on stapling		3,280,344
Additions	93,892	1,812,168	18,210	24.400	15,467	67,395
Acquisitions	137,102				102.571	$\mathbf{r}$
Transfer from property, plant and equipment				39,820		٠
Transfer to held for sale investment properties	(9,700)		(9,700)
Lease incentives	43,016	22,819	1.691	6,373	24,925	13,085
Amortisation of lease incentives	(10, 701)	(11,958)	(806)	(1, 161)	(6,997)	(12, 801)
Rent straightlining	4,454	5,743			4,454	7.370
Disposals		(479.043)
Net gain from fair value adjustments	184,146	252,991	54,740	32,485	47,858	83,051
Foreign exchange difference on foreign currency translation	66,655	30,260			3.017
Carrying amount as at 31 December 2005	7,057.696	6,548,832	1.028.332	964,197	2.640.346	2.449.051

Note 3. Inventories

	DDF Consolidated		DRO Consolidated
	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000
Land and buildings Work in progress (at cost)	3,369	48.469	$\bullet$ $\bullet$	48.469
Total inventories at lower of cost and net realisable value	3.369	48.469	$\bullet$	48.469

Note 4. Loans and receivables

	DDF Consolidated		DRO Consolidated
	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000
Loan notes receivable from DB RREEF Holdings Pty Limited	45.092	45.092	45.092	45.092
Total loans and receivables	45.092	45.092	45.092	45.092

DB RREEF Holdings Pty Limited issued an equal amount of loan notes to its two owners - First Australian Property Pty Limited
and DRO, in order to fund its 100 percent acquisition of DB RREEF Funds Management Limited (the R bonds are 20 years in duration and yield 11 per cent per annum.

Note 5. Property plant and equipment

(a) Property plant and equipment

		DDF Consolidated			DIT Consolidated			DRO Consolidated
	31 Dec 2005	Construction in progress \$'000	Land and freehold buildings \$'000	Total \$'000	Construction in progress \$'000	Land and freehold buildings \$'000	Total \$'000	Construction in progress \$'000	Land and freehold buildings \$'000	Total \$'000
Opening net book amount as at 1 July 2005 Additions Depreciation charge		11,585	57,007 (25)	68,592 (25)			$\sim$	$\blacksquare$	57,007 (25)	57,007 (25)
Closing net book amount as at 31 December 2005		11,585	56.982	68.567					56,982	56,982
Cost Accumulated depreciation		11,585	57,007 (25)	68,592 (25)	$\overline{\phantom{a}}$	$\sim$	$\blacksquare$	$\sim$	57,007 (25)	57,007 (25)
Net book amount as at 31 December 2005		11,585	56,982	68,567				۰	56,982	56,982

These balances relate to assets held within DRO which consolidate to DDF.

	DDF Consolidated			DIT Consolidated			DRO Consolidated
30 Jun 2005	Construction in progress \$'000	Freehold buildings \$'000	Total \$'000	Construction in progress \$'000	Freehold buildings \$'000	Total \$'000	Construction in progress \$'000	Freehold buildings \$'000	Total \$'000
Opening net book amount as at 1 July 2004	23,700	$\sim$	23,700	23,700	$\blacksquare$	23,700		$\overline{\phantom{a}}$
Additions	16,120	$\blacksquare$	16,120	16,120	$\blacksquare$	16.120		$\sim$	$\blacksquare$
Transfer from property, plant and equipment	(39, 820)	$\blacksquare$	(39, 820)	(39, 820)	$\blacksquare$	(39, 820)		$\sim$
Closing net book amount as at 30 June 2005
Cost Accumulated depreciation	$\sim$ $\sim$	$\sim$ $\blacksquare$	$\sim$ $\overline{\phantom{a}}$	$\blacksquare$	$\overline{\phantom{a}}$ $\blacksquare$	$\sim$	$\blacksquare$	$\overline{\phantom{a}}$	$\blacksquare$

Net book amount as at 30 June 2005

Note 5. Property plant and equipment (continued)

(b) Basis of valuation

Land and freehold buildings are accounted for using the cost method (refer note 1(n))). Construction in progress is recognised at fair value. As at 31 December 2005, the fair value of construction in progress is equal to c

(c) Non-current assets pledged as security

Refer to note 8 for information on non-current assets pledged as security by the parent entity and its controlled entities.

(d) Acquisitions and developments

Turnpike Distribution Center, Medley, Florida

On 29 September 2005, DB RREEF Industrial Holdings, LLC ("DB JV") purchased Turnpike Distribution Center in Medley, Florida for \$7.6 million, pursuant to the Option Agreement between CalWest and DB JV. This 17.7 acre vacant land acquisition completed the remaining requirements of the IRC Section 1031 exchange initiated by the 3 June 2005 disposition of 1855 Domoch Court in San Diego, CA and the simultaneous acquisition of Fort Holabird in Baltimore, MD.

The total projected investment for Turnpike Distribution Center, including all construction costs, due diligence and closing costs, is estimated at \$23.3 million. Development is estimated to be completed by December 2006.

Note 6. Investments accounted for using the equity method

Investments are accounted for in the consolidated financial statements using the equity method of accounting (Refer note 1). Information relating to these entities is set out below.

Name of Trust	Principal activity	Ownership	Ownership	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
		interest 31 Dec 2005 %	interest 30 Jun 2005	carrying amount 31 Dec 2005 \$'000	30 Jun 2005 \$'000	carrying amount carrying amount 31 Dec 2005 \$'000	30 Jun 2005 \$'000	carrying amount carrying amount 31 Dec 2005 \$'000	30 Jun 2005 \$'000	carrying amount carrying amount 31 Dec 2005 \$'000	carrvino amount 30 Jun 2005 \$'000
Mt Druitt Shopping Centre Trust Retail property investment		50	50	169,844	154,957
2 O'Connell Street Trust	Commercial property investment	50	50	8,132	7,927			8,132	7,927
4 O'Connell Street Trust	Commercial property investment	50	50	12,144	12,242			12,144	12,242
Bligh Street Trust	Commercial property investment	50	50	16,937	16,440			16,937	16,440
DB RREEF Holdings Pty Limited Asset, property and funds	management	50	50	17,908	17,166					17,908	17,166
DR RREEF Industrial Properties, Asset and property investment inc.		50	50			199,995	177,759
Total				224,965	208.732	199,995	177.759	37.213	36.609	17.908	17,166

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

	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000
Movements in carrying amounts of investments accounted for using the equity method
Carrying amount as at 1 July 2005	208,732		177,759		36.609	40,234	17.166	14,595
Interest acquired on stapling		36,965						$\overline{\phantom{a}}$
Interest acquired during the period	15,136	167.678	23,211	138,033			$\sim$
Share of net profits/(losses) after tax	8.749	12,302	8,598	51,522	1.706	489	2,242	2,571
Distributions/dividends received	(7,652)	(8,213)	(18, 110)	(1.715)	(1, 102)	(4, 114)	(1,500)
Adjustment on application of AASB 132 & AASB 139			899
Foreign exchange difference on foreign currency translation	. .		7.638	(10,081)			$\sim$
Carrying amount as at 31 December 2005	224.965	208,732	199,995	177,759	37,213	36,609	17,908	17,166

Note 7. Loan with related parties DDF Consolidated DIT Consolidated DOT Consolidated DRO Consolidated 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 \$1000 \$'000 stonn \$3000 \$1000 \$1000 \$1000 \$1000 Non-interest bearing loan with Stapled Entities 138,948 138,948 Loan to DB RREEF Finance Pty Limited 1,234 205.789 207.354 1,292,879 713.276 138,948 140,182 205,789 207,354 1,292,879 713,276 Total non-current assets - loan with related parties DRO Consolidated DDF Consolidated DIT Consolidated DOT Consolidated 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 \$'000 \$'000 \$'000 \$'000 \$'000 \$'000 \$'000 \$'000 Non-interest bearing loan with Stapled Entities 55,684 55,684 48,932 48,932 55,684 55,684 48,932 48,932 Total non-current liabilities - loan with related parties Note 8. Interest bearing liabilities DDF Consolidated DIT Consolidated DOT Consolidated DRO Consolidated 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 \$'000 \$1000 \$'000 \$'000 \$'000 \$'000 \$'000 \$'000 Current Secured Commercial paper 118,338 118,338 Commercial mortgage backed securities 27,246 236,000 236,000 $\overline{a}$ $\overline{\phantom{a}}$ L. 15,498 Bank loans Total secured 27,246 369.836 354 338 Unsecured Bank loans 300.935 300.935 i, $\overline{a}$ l, $\overline{a}$ i. 300,935 300,935 Total unsecured Deferred borrowing costs $(1,705)$ $(292)$ 326,476 354.338 300.643 Total current liabilities - interest bearing liabilities 369.836 ÷, DDF Consolidated DIT Consolidated DOT Consolidated DRO Consolidated 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 30 Jun 2005 31 Dec 2005 \$'000 \$'000 \$'000 \$'000 \$'000 \$'000 \$'000 \$'000 Non-current Secured Commercial paper 452,449 452,449 452,449 452,449 Commercial mortgage backed securities 713,817 705.169 500,000 500,000 ÷, l, $\ddot{\cdot}$ Bank loans 439.666 l, 443.910 . Total secured 1,610,176 1.597.284 952,449 952.449 Unsecured Commercial notes 272.814 261.780 272,814 261.780 571.375 Medium term notes 7.123 6,836 292,618 Preferred shares 126 $121$ $\overline{a}$ Bank toans 875,563 555,707 520.863 132,199 104,747 205,789 208,589 Intercompany loan Total unsecured 1,155,626 824.444 520.863 132.199 104.747 1.049.978 762,987 Deferred borrowing costs $(6, 476)$ l, $(47)$ $(1,616)$ l. $(999)$ Total non-current liabilities - interest bearing 2,759,326 2,421,728 520,816 132,199 1,055,580 952,449 1,048,979 762,987

The intercompany loan represents a loan from DB RREEF Finance Pty Limited to DDF, DIT and DOT. These (can balances eliminate on consolidation.

liabilities

Note 8, Interest bearing liabilities

Financing arrangements
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2005 \$'000	30 Jun 2005 \$000	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000
The Stapled Entity has access to the following lines of credit:
Borrowing facilities
Commercial paper	453,300	578.200		124.900	452.449	452,449
Commercial mortgage backed securities	713,817	941,169		236,000	500,000	500,000		$\overline{\phantom{a}}$
Commercial notes	272,814	261,780					272,814	261,780
Bank loans	1,817,611	1,330,033		۰		$\overline{\phantom{a}}$	1,346,455	874,869
Medium term notes	7,123	6,835		٠				٠
	3.264.665	3,118,017		360,900	952.449	952,449	1,619.269	1,136,649
Used at balance date	3,093,857	2,791,443	$\blacksquare$	354,338	952,449	952,449	1,145,124	554,398
Bank guarantee facility utilised at balance date	5,000					$\overline{\phantom{a}}$	5,000
Used at balance date by Stapled Entities				٠		$\overline{\phantom{a}}$	304.188	263,089
Unused at balance date	165,808	326,574	$\cdot$	6.562			164.957	319,162

Bank loans

Dis RREEF Finance Pty Limited, a wholly-owned subsidiary of DRO, has syndicated bank debt facilities which comprises
of a \$300 million three year, multi-currency revolving credit facility maturing in September 2007, a \$300 mortgaged backed securities. The facilities include a total of \$360 million 5 year revolving credit facilities and a total of \$100 million 364 next and the property of the control of the state of which \$5 million is utilised as a bank guarantee facility for the Coles Myer development (refer note 11).
These bank debt facilities are supported by the Stapled Entity the US\$210 million and the \$100 million facilities.

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

The consolidated accounts of the Stapled Entity include the debt facilities of the US joint venture. The facilities include US\$120 million (\$163.7 million) of bank mortgages that amortise through monthly principal and interest payments with a weighted average maturity date of September 2008 and a US\$225 million (\$306.9 million) secured interest only bank loan maturing in September 2009.

Commercial notes - USA Private Placement
DB RREEF Finance Pty Limited also issued US\$200 million (\$272.8 million) of notes which were privately placed with investors on terms to maturity ranging from December 2011 to March 2017

Commercial paper and commercial mortgage backed securities

DB RREEF Office Trust has kabilities resulting from the issuance of \$452.4 million (facility limit of \$453.3 million) asset backed commercial paper ("CP") and \$500 million commercial mortgage backed securities ("CMBS"). The CMBS has an anticipated maturity date of April 2009.

The US joint venture has liabilities resulting from a US\$157 million (\$214.2 million) CMBS issue, maturing in
September 2008 (inclusive of a two by one year extension option beginning September 2006).

Medium term notes

The US joint venture has liabilities resulting from US\$5 million (\$6.8 million) unsecured medium term notes maturing in September 2010.

Preferred Shares

DB RREEF Industrial Properties, Inc has issued US\$92,550 (\$126,245) of preferred shares as part of the requirement to
be classified as a Real Estate Investment Trust ("REIT") under US tax legislation. These preferred share ssue until such time that the Board decides that it is no longer in the company's interest to qualify as a REIT.

Note 9. Contributed equity

	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2005	30 Jun 2005	31 Dec 2005	30 Jun 2005	31 Dec 2005	30 Jun 2005	31 Dec 2005	30 Jun 2005
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
(a) Contributed equity of equity holders of the parent
Opening balance as at 1 July 2005	1,059,867	1.028.028	668,995	502.793	1,359,854	1.365.325	5,540
Issue of units to staple		21,101		331.559		302.826		5.168
Placement of units				10,770		22,517		83
Issue of stapled securities		316.263
Capital distribution to staple		(362, 916)	$\blacksquare$	(205,663)	$\blacksquare$	(387, 235)
Distributions reinvested	15,836	57,558	9,383	29.634	20,102	56,608	103	289
Cost of distributions reinvested	(5)	(167)	(4)	(98)	$^{(8)}$	(187)
Closing balance as at 31 December 2005	1,075,698	1.059.867	678.374	668.995	1.379.948	1.359.854	5,643	5.540
(b) Contributed equity of equity holders of other entities
Opening balance as at 1 July 2005	2.034.389
Additional equity acquired on stapling		1,868,722
Issue of units		33.371
Issue of stapled securities		(316, 263)
Capital distribution/(consolidation) to staple		362,916
Distributions reinvested	29,588	85,926
Cost of distributions reinvested	(12)	(283)
Closing balance as at 31 December 2005	2.063.965	2.034.389	$\sim$	$\sim$	$\sim$	×.	$\ddot{}$
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2005	30 Jun 2005	31 Dec 2005	30 Jun 2005	31 Dec 2005	30 Jun 2005	31 Dec 2005	30 Jun 2005
	No. of securities No. of securities		No. of units	No. of units	No. of units	No. of units	No. of units	No. of units
(c) Number of securities on issue
Opening balance as at 1 July 2005	2,732,082,389	996.612.986	2,732,082,389	338.230.559	2,732,082,389	1,148,052,162	2,732,082,389
Additional units created on stapling		1,581,311,602
Issue of units to staple				2,072,241,677		1.514.131.505		2,583,842,392
Placement of units		41.521.457		41.521.457		41.521.457		41.521.457
Issue of stapled securities
Capital split/(consolidation) to staple			٠	173.033.512		(78, 341, 275)
Distributions reinvested	33.705.917	112,636,344	33.705.917	107,055,184	33.705.917	106,718,540	33,705,917	106,718,540
Closing balance as at 31 December 2005	2,765,788,306	2,732,082,389	2,765,788,306	2,732,082,389	2,765,788,306	2,732,082,389	2,765,788,306	2,732,082,389

Terms and conditions

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

Distribution reinvestment plan
Under the distribution reinvestment plan ("DRP"), stapled security holders may elect to have all or part of their
distribution entitlements satisfied by the issue of new stapled securities,

33,705,917 securities were issued to existing security holders on 29 August 2005, under this DRP at a unit price of \$1.3477 in relation to the June 2005 distribution period.

Note 10. Distributions paid and payable
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
(a) Distribution to stapled security holders	31 Dec 2005 \$'000	31 Dec 2004 \$'000	31 Dec 2005 \$'000	31 Dec 2004 \$'000	31 Dec 2005 \$'000	31 Dec 2004 \$'000	31 Dec 2005 \$'000	31 Dec 2004 \$'000
31 December (payable 28 February 2006)	150,735	136,519	30,155	26,747	68,070	50,399
	150,735	136,519	30,155	26,747	68,070	60,399	$\blacksquare$
(b) Distribution to minorty interests
DB RREEF Industrial Holdings, LLC (paid)	3.846
DB RREEF RENTS Trust (paid 17 October 2005)	4,223			$\sim$	4,223
DB RREEF RENTS Trust (payable 17 January 2006)	3,566	$\blacksquare$			3,566
	11,635		$\blacksquare$	$\sim$	7,789		$\blacksquare$
Total distributions	162,370	136,519	30,155	26,747	75,859	50,399
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2005	31 Dec 2004	31 Dec 2005	31 Dec 2004	31 Dec 2005	31 Dec 2004	31 Dec 2005	31 Dec 2004
	Cents per	Cents per	Cents per	Cents per	Cents per	Cents per	Cents per	Cents per
	security	security	unit	unit	unit	unit	unit	unit
31 December (payable 28 February 2006)	5.45	5.20	1.09	1.02	2.48	1.92
Total	5.45	5.20	1.09	1.02	2.48	1.92

Note 11, Contingent liabilities

Details and estimates of maximum amounts of

contingent sabsities are as follows:
	DDF Consolidated		DiT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000	31 Dec 2005 \$'000	30 Jun 2005 \$'000
Bank guarantees by the stapled entity in respect of variations and other financial risks associated with the development of:
240 St Georges Terrace, Perth, WA	2.200	2.200			2.200	2.200
Coles Myer development at Boundary Road, Laverton, VIC.	5.000	5.000	5.000	5.000			5.000	5.000
Total contingent liabilities	7,200	7,200	5,000	5,000	2,200	2.200	5,000	5,000

The Trusts are also guarantors of a A\$600 million and US\$210 million syndicated bank debt facility and a total of A\$460 million bank bi-lateral facilities and US\$200 million of privately placed notes, which have all been negotiated to finance the Stapled Entity. The guarantees have been given in support of debt outstanding and drawn against these facilities.

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

On 30 September 2004, the DB JV entered into a put/ball option agreement ("the Agreement") with CalWest providing
DB JV an option to buy six land parcels owned by CalWest. Through 31 December 2005, one parcel was removed f purchase price for the remaining four parcels is \$18.0 million and the option to buy will expire on 15 July 2006. The purchase price
is increased monthly by multiplying the previous month's price by the applicable price fa a maximum price of \$18.5 million that will be reached at 15 July 2006. On 15 July 2006, it is anticipated that all uncalled parcels will be put to DB JV by CalWest, therefore requiring the DB JV to purchase all uncalled parcels.

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

Note 12. Events occurring after reporting date

DB RREEF Industrial Properties, Inc.

Since the end of the financial haif year, DB RREEF Industrial Properties Inc has issued US \$200 million (\$272.8 million) of notes in February 2006 which were privately placed with investors on terms to maturity ranging from February 2011 to February 2016. Proceeds of the note issue were used to repay bank debt.

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

Note 13. Segment information

DDF Consolidated Business segments

The Stapled Entity operates in the following segments:

Retail - investment in the retail property sector

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

Industrial - investment in the industrial property sector

31 December 2005	Retail	Commercial & Car Park	Industrial	Eliminations/ Unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Rental and other property income	32,574	149.864	141,690	1,884	326,012
Interest revenue	135	443	647	2,831	4,056
Net gain/(loss) on sale of investment properties		131	(35)		96
Other revenue		1,828	1,456	٠	3,284
Net increment on revaluation of properties	31,122	71,224	81,955	(216)	184,085
Increment on revaluation of derivatives		4,619	1,911	(1,090)	5,440
Share of net profits of associates	4,801	1,706		2,242	8,749
accounted for using the equity method
Total segment revenue	68,632	229,815	227,624	5,651	531,722
Segment result attributable to stapled security holders	58,736	161,100	121,811	(6,040)	335,607
31 December 2004	Retail	Commercial & Car Park	Industrial	Eliminations/ Unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Rental and other property income	26,351	89,678	77,627		193,656
Interest revenue		260	280	979	1,519
Net gain/(loss) on sale of investment properties	16,251	3,447	(128)		19,570
Other revenue			16	382	398
Net increment on revaluation of properties	16,173	(61)	4.487		20.599
Share of net profits of associates	2,977	572	(3,666)	1,448	1,331
accounted for using the equity method
Total segment revenue	61,752	93.896	78,616	2.809	237,073
Segment result attributable to stapled security holders	52,665	41,879	29,190	(34,270)	89,464

Note 13. Segment information (continued)

DIT

Business segment

DIT operates solely within the industrial property sector.

Geographical segments

DIT's investments are located in Australia and United States of America.

31 December 2005		Australia United States of America	Consolidated
	\$'000	\$'000	\$'000
Rental and other property income	47,279		47,279
Other revenue	892		892
Net increment on revaluation of properties	54,740		54,740
Share of net profits of associates		8,598	8,598
accounted for using the equity method
Total segment revenue	102,911	8,598	111,509
Segment result attributable to unit holders	76,328	8.598	84,926

31 December 2004		Australia United States of	Consolidated
	\$'000	America \$'000	\$'000
Rental and other property income	46,105		46,105
Other revenue	13,971		13,971
Net increment on revaluation of properties
Share of net profits of associates		5,551	5,551
accounted for using the equity method
Total segment revenue	60.076	5,551	65,627

Note 13. Segment information (continued)

DOT

Business segments

DOT operates solely within the commercial and car park property sector.

Geographical segments

DOT's investments are located in Australia and New Zealand.

31 December 2005	Australia \$'000	New Zealand \$'000	Consolidated \$'000
Rental and other property income Increment on revaluation of investments Other revenue Share of net profits of associates accounted for using the equity method	113,464 39,771 6,822 1,706	3.828 8,087 65	117,292 47,858 6,887 1,706
Total segment revenue	161,763	11,980	173,743
Segment result attributable to unit holders	99,934	11,529	111,463
31 December 2004	Australia \$'000	New Zealand \$'000	Consolidated \$'000
Rental and other property income Increment on revaluation of investments Other revenue Share of net losses of associates accounted for using the equity method	108,757 25,279 237 (2,939)	226	108,757 25,279 463 (2,939)

Total segment revenue	131,334	226	131,560

Note 13. Segment information (continued)

DRO

Business segments

DRO's associate and wholly owned entities are involved in property development and provide financial services to trusts within DRT, and to other clients.

Geographical segments

DRO operates solely in Australia.

31 December 2005	Financial services	Property development	Investments in funds management company	Eliminations/ Unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Rental and other property income		1,513			1,513
Other revenue	1.677	$\bullet$	2.500	35	4.212
Interest revenue from Stapled Entities	19,055				19,055
Share of net profits of associates accounted for using the equity method		$\bullet$	2,242	٠	2.242
Total segment revenue	20,732	1.513	4.742	35	27,022
Segment result attributable to unit holders	58	$\bullet$	4,742	(983)	3,817

31 December 2004	Financial services	Property development	Investments in funds management company	Eliminations/ Unallocated	Consolidated
		\$'000	\$'000	\$'000	\$'000
Other revenue Interest revenue from Stapled Entities	8,929 8.659	$\overline{\phantom{0}}$	618	5	9.552 8.659
Share of net profits of associates accounted for using the equity method		۰	1,448	$\overline{\phantom{a}}$	1,448
Total segment revenue	17,588		2.066	5	19.659
Segment result attributable to unit holders			2,066	(510)	1.556

Note 14. Note to the consolidated cash flow statements

Non-cash transactions

DB RREEF Finance Pty Limited, a wholly owned subsidiary of DRO, is the legal borrower of \$327.38 million US denominated debt. However, proceeds of \$53.88 million, repayments of \$2.64 million, and finance costs of \$6.94 million associated with this debt, have been excluded from DRO's Consolidated Cash Flow Statement. These cashflows are disclosed in DIT and DDF's Consolidated Cash Flow Statements as the operators of the bank account where these cash inflows and outflows have occurred.

DB RREEF Finance Pty Limited, a wholly owned subsidiary of DRO, is the legal borrower of \$104.75 million NZ denominated debt. However, proceeds of \$101.70 million and finance costs of \$1.88 million associated with this debt, have been excluded from DRO's Consolidated Cash Flow Statement. These cashflows are disclosed in DOT's Consolidated Cash Flow Statement as the operator of the bank account where these cash inflows and outflows have occurred.

Note 15. Explanation of transition to Australian Equivalents to IFRS

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

At the date of transition to AIFRS: 1 July 2004

DDF Consolidated			Consolidated effect of
		Previous	transition to
		AGAAP	AIFRS	AIFRS
	Notes	\$'000	\$'000	\$'800
Current assets
Cash and cash equivalents		2,487		2.487
Receivables		11,352		11,352
Property sale proceeds receivable		51,760		51,760
Other	d(iv)	4,394	(607)	3,787
Total current assets		69,993	(607)	69,386
Non-current assets
Investment properties		1,635,508		1,635,508
Other	d(iv)	1.524	(941)	583
Total non-current assets		1,637,032	(941)	1,636,091
Total assets		1,707,025	(1, 548)	1,705,477
Current liabilities
Payables		14,869		14.869
Interest bearing liabilities		474,200		474,200
Provisions		23,171		23,171
Total current liabilities		512,240	$\overline{a}$	512,240
Non-current liabilities
Other		585		585
Total non-current liabilities		585	$\blacksquare$	585
Total liabilities		512,825	$\blacksquare$	512,825

Net assets		1,194.200	(1, 548)	1.192.652
Equity
Equity attributable to equity holders of the parent
Contributed equity		1,028,028		1,028,028
Reserves	d(v)	153,961	(153, 961)
Undistributed income		12,211	152,413	164,624
Parent unitholders' interest	d(x)	1,194,200	(1, 548)	1.192.652
Total equity	d(x)	1,194,200	(1, 548)	1,192,652

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

At the end of the last half-year reporting period under previous AGAAP: 31 December 2004

DDF Consolidated			Consolidated effect of
	Notes	Previous AGAAP \$'000	transition to AIFRS \$'000	AIFRS \$'000

Current assets
Cash and cash equivalents Receivables		56,250 32,584		56,250 32,504
Held for sale investment properties		221,467		221,467
Other	d(iv)	13,611	(870)	12,741
Total current assets		323,832	(870)	322,962

Non-current assets Investment properties	d(ív)	5,928,995	5,510	5,934,505
Loan note receivable from associate		45,092		45,092
Investments accounted for using the equity method	d(ví)	189,700	(242)	189,458
Goodwill		3,143		3,143
Other	d(iv)	19,465	${4,918}$	14,547
Total non-current assets		6,186,395	350	6,186,745
Total assets		6,510,227	(520)	6.509.707

Current liabilities		97,755		97,755
Pavables Provisions		781,953 136,519		781,953 136,519
Other		6,565	$\overline{\phantom{a}}$	6,565
Total current liabilities		1.022.792	$\blacksquare$	1,022,792
Non-current liabilities
Interest bearing liabilities		2,142,275		2,142,275
Other		25,576		25,576
Total non-current liabilities		2,167,851	$\blacksquare$	2,167,851
Total liabilities		3,190,643		3,190,643

Net assets		3,319,584	(520)	3,319,064

Equity Contributed equity		1,009,456		1,009,456
Reserves	d(v)	166,917	(167, 260)	(343)
Undistributed income		12,651	167,301	179,952
Parent unitholders' interest		1,189,024	41	1,189,065
Equity attributable to equity holders of other entities
stapled to DDF Contributed equity		1,948,746		1,948,746
Reserves	d(v)	67,526	(67, 806)	(280)
Undistributed income		(1,761)	67,245	65,484
Other stapled security holders' interest		2,014,511	(561)	2,013,950
Stapled security holders' interest		3,203,535	(520)	3,203,015
Other minority interest		116,049		116,049
Total equity	d(x)	3,319,584	(520)	3,319,064

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

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

	DDF Consolidated

DDF Consolidated		Previous	Consolidated effect of transition to
	Notes	AGAAP \$'000	AIFRS \$'000	AIFRS \$'000
Current assets
Cash and cash equivalents Receivables		68,959 29,859		68,959 29,859
Inventory		48,469		48,469
Loan to third parties		5,006		5,006
Other	d(ív)	13,362	(2, 412)	10,950
Total current assets		165,655	(2, 412)	163,243
Non-current assets
Invesment properties	d(iv)	6,542,062	6,770	6,548,832
Loan note receivable from associate		45,092		45,092
Goodwill Investments accounted for using the equity method	d(ví)	3,215 208,974	(242)	3,215 208,732
Deferred tax asset		127		127
Other	d(iv)	31,852	(16,090)	15,762
Total non-current assets		6,831,322	(9, 562)	6,821,760
Total assets		6,996,977	(11, 974)	6,985,003
Current liabilities
Payables		118,479		118,479
Interest bearing fiabilities		369,836		369,836
Current tax liabilities		2,595		2,595
Provisions		144,800	$\blacksquare$	144,800
Other		8,673		8,673
Total current liabilities		644,383		644,383
Non-current liabilities
Interest bearing liabilities		2,421,728		2,421,728
Deferred tax liabilities Other	d(iii)	29,543	23,637	23,637 29,543

Total non-current liabilities		2,451,271	23,637	2,474,908
Total liabilities		3,095,654	23,637	3,119,291

Net assets		3,901,323	(35, 611)	3,865,712
Equity
Contributed equity Reserves	d(iii), (v)	1.059.867 236,307	(236, 956)	1,059,867 (649)
Undistributed income		6,743	222,332	229,075
Parent unitholders' interest		1,302,917	(14, 624)	1,288,293
Equity attributable to equity holders of other entities
stapled to DDF
Contributed equity		2,034,388		2,034,388
Reserves Undistributed income	d(iii), (v)	187,522	(187,996)	(474)
		9,844	168,303	178,147
Other stapled security holders' interest		2,231,754	(19, 693)	2,212,061
Stapled security holders' interest		3,534,671	(34, 317)	3,500,354
Other minority interest	d(v)	366,652	(1, 294)	365,358
Total equity	d(x)	3,901,323	(35,611)	3,865,712

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

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

Reconciliation of profit for the half-year ended 31 December 2004

DDF Consolidated			Consolidated
			effect of
		Previous	transition to
		AGAAP	AIFRS	AIFRS
	Notes	\$'000	\$'000	\$'000
Revenue from ordinary activities
Property revenue	$d(i)$ , $(iv)$	194.937	(1,281)	193,656
Interest revenue		1,519		1,519
Proceeds from sale of investment properties	d(ii)	282,492	(282, 492)
Total revenue from ordinary activities		478.948	(283, 773)	195,175
Net gain on sale of investment properties	d(ii)		19,570	19,570
Share of net profits of associates accounted for using the equity method		1,331		1,331
Increment on revaluation of investments	d(i), (iv), (v)		20,599	28.599
Other income		398		398
Total income		480,677	(243, 604)	237,073
Expenses
Property expenses	d(iv)	(48, 525)	271	(48, 254)
Responsible Entity fees		(5, 197)		(5, 197)
Finance costs		(40, 975)		(40, 975)
Book value of property investments sold	d(i)	(262, 922)	262,922
Costs associated with the Transaction		(43, 296)		(43,296)
Other expenses		(2,304)		(2, 304)
Total expenses		(403, 219)	263.193	(140, 026)
Profit before tax		77,458	19,589	97,047
Tax expense
Income tax expense		(311)		(311)
Withholding tax expense		(477)		(477)
Profit after tax		76,670	19,589	96,259
Net profit attributable to other minority interests	d(v)	2.313	4.482	6.795
Net profit attributable to stapled security holders		74,357	15,107	89,464

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

Reconciliation of profit for the year ended 30 June 2005

	DDF Consolidated

Previous transition to AGAAP AIFRS AIFRS \$'000 Notes \$'000 \$'000 Revenue from ordinary activities Property revenue d(i), (iv) 512,709 (3,914) 5,932 Interest revenue 5,932 Proceeds from sale of investment properties d(i) 504,750 (504, 750) 1,023,391 (508, 664) Total revenue from ordinary activities Net gain on sale of investment properties d(ii) 25,707 12,544 Share of net profits of associates accounted for using the equity method Increment on revaluation of investments 256,607 d(i), (iv), (v) Net foreign exchange gain 42 Other income 260 1,036,237 (226, 350) Total income Expenses Property expenses d(w) 1,492 (126, 499) (127, 991) Responsible Entity fees (21, 141) (21, 141) Fínance costs (117, 265) (117, 265) Decrement on revaluation of investments d(v) (4, 934) 4.934 Book value of property investments sold d(i) 479.043 (479, 043) Costs associated with the Transaction (42, 281) (42, 281) (9,206) (9,206) Other expenses (801, 861) 485,469 Total expenses 234,376 259,119 Profit from before tax Tax expense Income tax expense (990) (990) d(iii) (23, 514) Withholding tax expense (2,072) Profit after tax 231,314 235,604 (11,791) (59, 111) Net profit attributable to other minority interests d(v) 219.523 176,493 Net profit attributable to stapled security holders	DDF Consolidated		Consolidated effect of




				588,795


				514,727
				25.707
				12,544
				256,607
				42
				260
				809,887








				(316, 392)
				493,495


				(25, 586)
				466,919
				(70, 902)
				396,017

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(c) Reconciliation of the Consolidated Statement of Cash Flows for DDF Consolidated

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

(d) Notes to the recondiliation for DDF Consolidated

(i) Rental revenue

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

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

The effect is:

For the half-year ended 31 December 2004 Rental revenue increased by \$1,727,000, and increment on revaluation of investments decreased by \$1,727,000.

For the year ended 30 June 2005

Rental revenue increased by \$5,744,000 and increment on revaluation of investments decreased by \$5,744,000.

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

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

For the half-year ended 31 December 2004

Proceeds from sale of investment properties of \$282,492,000, and book value of property investments sold of \$262,922,000 is no longer shown in the Consolidated Income Statement, with the net amount of \$19,570,000 being shown instead as net gain on sale of investment properties.

For the year ended 30 June 2005

Proceeds from sale of investment properties of \$504,750,000, and book value of property investments sold of \$479,043,000 is no longer shown in the Consolidated Income Statement, with the net amount of \$25,707,000 being shown instead as net gain on sale of investment properties.

(iii) Tax expense

Previously, under AGAAP, depreciation allowances for tax purposes, revaluations of investment properties held in the US REIT and the revaluation of derivatives did not impact on the tax expense in the Consolidated Income Statement. A liability was only recognised if management intended to dispose of an investment property, without acquiring a replacement asset, within the permitted time frame.

Under AASB 112: Income Taxes, deferred tax balances are determined using the balance sheet method. A deferred tax fiability is recognised for depreciation aflowances for tax purposes, revaluations of investment properties held in the US REIT and the revaluation of derivatives associated with this operation. This change does not impact on Australian assets owned by trusts classed as flow through vehicles under Australian Taxation Law.

The effect is:

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

At 31 December 2004 There is no effect on the Trust.

At 30 June 2005 Deferred tax liabilities increased by \$23,637,000 and foreign currency translation reserve has increased by \$123,000.

For the half-year ended 31 December 2004 There is no effect on the Trust.

For the year ended 30 June 2005 Withholding tax expense has increased by \$23,514.000.

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(d) Notes to the reconciliation for DDF Consolidated (continued)

(iv) Lease incentives

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

Under AASB117: Leases, and UIG 115: Operating Leases - Incentives, all lease incentives are required to be capitalised and amortised against property revenue over the life of lease to which they relate. All incentives will now be incorporated into the property book values. Amortisation recorded on these incentives will be offset by a notional fair value adjustment to the Consolidated Income Statement and to investment properties to bring the balance of the investment properties back to fair value, resulting in no impact to the net profit of the Stapled Entity.

The effect is:

At 1 July 2004

Other assets - current decreased by \$607,000, other assets - non-current decreased by \$941,000 and undistributed income decreased by \$1,548.000.

At 31 December 2004

Other assets - current decreased by \$870,000, other assets - non-current decreased by \$4,918,000 and investment properties increased by \$5,788,000. \$278,000 of the increase in investment properties has been adjusted through revaluations since the transition date.

At 30 June 2005

Other assets - current decreased by \$2.412.000, other assets - non-current decreased by \$16,090,000 and investment properties increased by \$18,502,000. \$11,732,000 of the increase in investment properties has been adjusted through revaluations since the transition date.

For the half-year ended 31 December 2004

Property expenses decreased by \$271,000, property revenue decreased by \$3,006,000 and increment on revaluation of investments increased by \$1,593,000 with the remainder being taken to investment properties.

For the year ended 30 June 2005

Property expenses decreased by \$1,492,000, property revenue decreased by \$9,658,000 and increment on revaluation of investments increased by \$147,000 with the remainder being taken to investment properties.

(v) Investment property

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

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

The effect is:

At 1 July 2004

The asset revaluation reserve was decreased by \$153,961,000 and undistributed income increased by \$153,961,000.

At 31 December 2004

The asset revaluation reserve was decreased by \$235,066,000 and undistributed income increased by \$218,816,000 with the remainder being taken to the Consolidated Income Statement.

At 30 June 2005

The asset revaluation reserve was decreased by \$425,217,000, undistributed income increased by \$218,816,000 and minority interest decreased by \$1,294,000 with the remainder being taken to the consolidated income statement.

For the half-year ended 31 December 2004

The increment on revaluation of investments has increased by \$20,732,000 and net profit attributable to minority interest has increased by \$4,482,000.

For the year ended 30 June 2005

The increment on revaluation of investments has increased by \$267,138,000 and net profit attributable to minority interest has increased by \$59,111,000.

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(d) Notes to the reconciliation for DDF Consolidated (continued)

(vi) Investments accounted for using the equity method

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

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

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

The effect is:

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

At 31 December 2004 Investments accounted for using the equity method decreased by \$242,000 with the adjustment taken to undistributed income.

At 30 June 2005 Investments accounted for using the equity method decreased by \$242,000 with the adjustment taken to undistributed income.

For the half-year ended 31 December 2004 There is no effect on the Trust.

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

(vii) Derivatives

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

At 1 July 2005:

A derivative financial asset of \$15,672,000 and a derivative financial liability of \$18,521,000 were recorded to recognise the fair value of interest rate swaps, \$3,127,000 being taken to undistributed income with the balance of \$278,000 being taken to minority interest.
A derivative financial asset of \$5,716,000 and a derivative financial liability of \$115,000 were recorded to recognise the fair
value of foreign exchange contracts, with the net of \$5,601,000 being taken to undistributed income. An additional deferred tax asset of \$689,000 was recorded to recognise the tax impact of the value of derivative
financial instruments, with the adjustment taken to undistributed income.

(ix) Valuation of sub-trust

Under previous AGAAP, DOT's sub-trust, DB RREEF RENTS Trust recorded its investment in DOT Commercial Trust at cost. On 1 July 2005, DOT applied AASB 132 and AASB 139, and the basis of valuation of this investment was changed to fair value. The impact of this change at 1 July 2005 was to increase other minority interest by \$6.368.000 with a corresponding decrease in undistributed income.

(x) Impairment

Goodwill was generated upon acquisition of the US REIT. Goodwill has been tested for impairment based on the underlying property values and at 30 June 2005, the asset had not been impaired.

(xi) Equity

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

	1 Jul 2004 \$'000	31 Dec 2004 \$'000	30 Jun 05 \$'000
Total equity under AGAAP	1.194.200	3.319.584	3,901,323
AIFRS adjustments to equity: Investment properties Investments accounted for using the equity method Other assets Deferred tax liabilities	- (1,548)	(278) (242) $\overline{\phantom{a}}$ $\blacksquare$	(11, 732) (242) (23, 637)
Total equity under AIFRS	1,192,652	3,319,064	3,865,712

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

At the date of transition to AIFRS: 1 July 2004

DIT Consolidated		Previous	Consolidated effect of transition to
	Notes	AGAAP \$'000	AIFRS 5'000	AIFRS \$'000
Current assets
Cash and cash equivalents		5,157		5,157
Receivables		2,937		2,937
Held for sale investment properties		23,055		23,055
Other	d(iii)	4,800	(2,624)	2,176
Total current assets		35,949	(2,624)	33,325
Non-current assets
Investment properties	d(v)	885,980	(23,700)	862,280
Property plant and equipment	d(v)		23,700	23,700
Other	d(iii)	10,705	(9, 139)	1,566
Total non-current assets		896,685	(9, 139)	887,546
Total assets		932,634	(11, 763)	920,871
Current liabilities
Payables		11,004		11,064
Provisions		27,058		27,058
Total current liabilities		38,062	$\overline{\phantom{a}}$	38,062
Non-current liabilities
Interest bearing liabilities		339,474		339,474
Other		1,076		1,076
Total non-current liabilities		340,550		340,550
Total liabilities		378,612	٠	378,612
Net assets
		554,022	(11, 763)	542,259
Equity
Equity attributable to equity holders of the parent
Contributed equity Reserves		502,793 50,261	(50, 261)	502,793
Undistributed income	d(iv)	968	38,498	39,466
Total equity	d(viii)	554,022	(11,763)	542,259

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

At the end of the last half-year reporting period under previous AGAAP: 31 December 2004

DIT Consolidated	Notes	Previous AGAAP \$'000	Consolidated effect of transition to AIFRS 5'000	AIFRS \$'000
Current assets
Cash and cash equivalents		4,113		4,113
Receivables		2,959		2,959
Held for sale investment properties Other	d(iii)	19,150 2,065	(361)	19,150 1,704

Total current assets		28,287	(361)	27,926
Non-current assets
Investment properties	d(iii)	932,026	188	932,214
Investments accounted for using the equity method		131,142		131,142
Loan with related parties Other		136,666		136,666 1,170
	d(iii)	2,467	(1, 297)
Total non-current assets		1,202,301	(1, 109)	1,201,192
Total assets		1,230,588	(1,470)	1,229,118
Current liabilities
Payables		9,878		9.878
Interest bearing liabilities		360,012		360,012
Provisions		26,746	ä	26,746
Total current liabilities		396,636	٠	396,636
Non-current liabilities
Interest bearing liabilities		150,354		150,354
Other		1,164		1,164
Total non-current liabilities		151,518	$\overline{\phantom{a}}$	151,518
Total liabilities		548,154	٠	548,154

Net assets		682,434	(1,470)	680,964
Equity Equity attributable to equity holders of the parent
Contributed equity		640,062		640,062
Reserves	d(iv)	42,372	(42, 715)	(343)
Undistributed income			41,245	41,245
Total equity	d(viii)	682,434	(1, 470)	680,964

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

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

DIT Consolidated

DIT Consolidated			Consolidated effect of
		Previous	transition to
		AGAAP	AIFRS	AIFRS
	Notes	\$'000	5'000	\$'000
Current assets
Cash and cash equivalents		5,577		5.577
Receivables		3,076		3,076
Other	d(iii)	3,751	(653)	3,098
Total current assets		12,404	(653)	11,751
Non-current assets
Investment properties	d(iii)	961,355	2,842	964,197
Investments accounted for using the equity method	d(vi)	192,297	(14, 538)	177,759
Loan with related parties Other		140,182 7,551	(3, 442)	140,182 4,189
	d(iii)
Total non-current assets		1,301,385	(15, 138)	1,286,247
Total assets		1,313,789	(15,791)	1,297,998
Current liabilities
Payables		10,459		10,459
Interest bearing liabilities		354,338		354,338
Provisions Other		39,615 1,121	۰	39,615 1,121

Total current liabilities		405,533	$\tilde{\phantom{a}}$	405,533
Non-current liabilities
Interest bearing liabilities		132,199		132,199
Other		4,108		4,188
Total non-current liabilities		136,307		136,307
Total liabilities		541,840	٠	541,840

Net assets		771,949	(15, 791)	756,158
Equity
Equity attributable to equity holders of the parent
Contributed equity		668,995		668,995
Reserves Undistributed income	d(iv), {vi}	97,853 5,101	(98, 502) 82,711	(649) 87,812

Total equity	d(viii)	771,949	(15,791)	756,158

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

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

Reconciliation of profit for the half-year ended 31 December 2004

DIT Consolidated

			effect of
		Previous	transition to
		AGAAP	AIFRS	AIFRS
	Notes	\$'000	5'000	\$'000
Revenue from ordinary activities
Property revenue	d(iii)	46.485	(380)	46,105
Interest revenue		133		133
Total revenue from ordinary activities		46.618	(380)	46,238
Share of net profits of associates accounted for using the equity method		5,551		5,551
Increment on revaluation of investments	d(iii), (iv)	3.795	10.011	13,806
Proceeds from sale of investment properties	d(ii)	4.200	(4, 200)
Other income		32		32
Total income		60,196	5.431	65,627
Expense from ordinary activities
Property expenses	d(ii)	(8, 412)	224	(8, 188)
Responsible Entity fees		(2,577)		(2,577)
Finance costs		(10, 672)		(10, 672)
Book value of property investments sold	d(ii)	(4, 387)	4.387
Net loss on sale of investment properties	d(ii)		(187)	(187)
Costs associated with the Transaction		(15,070)		(15,070)
Other expenses		(409)		(409)
Total expenses from ordinary activities		(41,527)	4,424	(37, 103)
Net profit attributable to unitholders		18.669	9.855	28.524

Consolidated

Reconciliation of profit for the year ended 30 June 2005

DIT Consolidated			Consolidated effect of
		Previous	transition to
		AGAAP	AIFRS	AIFRS
	Notes	\$'000	\$'800	\$'000
Revenue from ordinary activities
Property revenue	d(iii)	94.903	(1, 148)	93,755
Interest revenue		282		282
Total revenue from ordinary activities		95,185	(1, 148)	94,037
Proceeds from sale of investment properties		26,200	(26, 200)
Net gain on sale of investment properties	d(ii)		979	979
Share of net profits of associates accounted for using the equity method	d(ví)	20,078	31,443	51,521
Increment on revaluation of investments	d(iii), (iv)	3,795	27.586	31,381
Net foreign exchange gain		29		29
Total income		145,287	32,660	177,947
Expense from ordinary activities
Property expenses	d(iii)	(17, 683)	620	(17,063)
Responsible Entity fees		(5,491)		(5, 491)
Finance costs		(24, 627)		(24, 627)
Book value of property investments sold	d(ii)	(25, 221)	25,221
Costs associated with the Transaction		(14, 729)		(14, 729)
Other expenses		(1, 341)		(1,341)
Total expenses from ordinary activities		(89,092)	25,841	(63, 251)
Net profit attributable to unitholders		56,195	58.501	114.696

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(c) Reconciliation of the Consolidated Statement of Cash Flows for DIT Consolidated

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

(d) Notes to the recondiliation for DIT Consolidated

(i) Rental revenue

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

The effect is:

For the half-vear ended 31 December 2004 There is no effect on DIT.

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

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

For the half-year ended 31 December 2004

Proceeds from sale of investment properties of \$4,200,000 and book value of property investments sold of \$4,387,000 is no longer shown in the Consolidated Income Statement, with the net amount of \$187,000 being shown instead as net loss on sale of investment properties.

For the year ended 30 June 2005

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

(iii) Lease incentives

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

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

The effect is:

At 1 July 2004

Other assets - current decreased by \$2,624,000, other assets - non-current decreased by \$9,139,000 and undistributed income decreased by \$11,763,000.

At 31 December 2004

Other assets - current decreased by \$361,000, other assets - non-current decreased by \$1,297,000, investment properties increased by \$36,000 and undistributed income decreased by \$1,622,000. \$152,000 of the increase in investment properties has been adjusted through revaluations since the transition date.

At 30 June 2005

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

For the half-year ended 31 December 2004

Property expenses decreased by \$224,000, property revenue decreased by \$380,000 and increment on revaluation of investments increased by \$307,000 with the remainder being taken to investment properties.

For the year ended 30 June 2005

Property expenses decreased by \$620,000, property revenue decreased by \$1,148,000 and increment on revaluation of investments increased by \$898,000 with the remainder being taken to investment properties.

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(d) Notes to the reconciliation for DIT Consolidated (continued)

(iv) Investment property

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

The effect is:

At 1 July 2004 The asset revaluation reserve was decreased by \$50,261,000 and undistributed income increased by \$50,261,000.

At 31 December 2004 The asset revaluation reserve was decreased by \$42,715,000 and undistributed income increased by \$33,012,000 with the remainder being taken to the Consolidated Income Statement.

At 30 June 2005 The asset revaluation reserve was decreased by \$52,520,000 and undistributed income increased by \$25,832,000 with the remainder being taken to the Consolidated Income Statement.

For the half-year ended 31 December 2004 The increment on revaluation of investments has increased by \$9,704,000.

For the year ended 30 June 2005 The increment on revaluation of investments has increased by \$26,688,000.

(v) Property, plant and equipment

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

At 1 July 2004 Investment properties decreased by \$23,700,000 and property, plant and equipment increased by \$23,700,000.

At 31 December 2004 There is no effect on DIT.

At 30 June 2005 There is no effect on DIT.

(vi) Investments accounted for using the equity method

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

As a result, these adjustments are now reflected in the share of net profits of associates using the equity method on the Consolidated Income Statement, and the investments accounted for using the equity method on the Balance Sheet.

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

The effect is:

At 1 July 2004 There is no effect on DIT.

At 31 December 2004 There is no effect on DIT.

At 30 June 2005 The asset revaluation reserve decreased by \$45,982,000, investments accounted for using the equity method decreased by \$14,538,000 with the adjustment taken to the Consolidated Income Statement.

For the half-year ended 31 December 2004 There is no effect on DIT.

For the year ended 30 June 2005 Share of net profits of associates accounted for using the equity method has increased by \$31,443,000.

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(d) Notes to the reconciliation for DIT Consolidated (continued)

(vii) Derivatives

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

At 1 July 2005:

A derivative financial asset of \$3,717,000 and a derivative financial liability of \$6,732,000 was recorded to recognise the fair value of interest rate swaps, with the net of \$3,015,000 being taken to undistributed income.
A derivative financial asset of \$2,858,000 and a derivative financial fiability of \$23,000 was recorded to recognised the fair value of foreign exchange contracts, with the net of \$2,835,000 being taken to undistributed income.
Investments accounted for using the equity method increased by \$652,000 to record a derivative financial asset, and undistributed income increased by \$652,000.
Investments accounted for using the equity method increased by \$247,000 to record a deferred tax asset which arose upon the recognition of a derivative financial asset, and undistributed income increased by \$247,000.

(viii) Equity

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

	1 Jul 2004 \$'000	31 Dec 2004 \$'000	30 Jun 05 \$'000
Total equity under AGAAP	554.022	682.434	771.949
AIFRS adjustments to equity: Investment properties Investments accounted for using the equity method	۰ -	(1,470) ۰	(1,253) (14,538)
Other assets	(11,763)	٠
Total equity under AIFRS	542.259	680.964	756.158

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

At the date of transition to AIFRS: 1 July 2004

DOT Consolidated		Previous AGAAP	Consolidated effect of transition to AIFRS	AIFRS
	Notes	5'000	\$'000	\$'000
Current assets
Cash and cash equivalents		5,139		5,139
Receivables Other	d(ii)	3.759 7.314	(2,790)	3,759 4,524

Total current assets		16.212	(2,790)	13.422
Non-current assets
Investment properties		2,290,951		2,290,951
Investments accounted for using the equity method Other	d(i)	40,234 15,574	(14, 864)	40,234 710

Total non-current assets		2,346,759	(14, 864)	2,331,895
Total assets		2,362,971	(17, 654)	2,345,317
Current liabilities
Payables		19,229		19,229
Provisions		52,810		52,810
Total current liabilities		72,039	$\blacksquare$	72,039
Non-current liabilities
Interest bearing liabilities		889,500		889,500
Other		663		663
Total non-current liabilities		890,163	$\blacksquare$	890,163
Total liabilities		962,202	$\blacksquare$	962,202

Net assets		1,400,769	(17, 654)	1,383,115
Equity
Equity attributable to equity holders of the parent
Contributed equity Reserves		1,365,325 32,539		1,365,325
Undistributed income	$d(iv)$ , $(v)$	2,905	(32,539) 14,885	17,790
Total equity	dívii)	1,400,769	(17, 654)	1,383,115

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

At the end of the last half-year reporting period under previous AGAAP: 31 December 2004

DOT Consolidated		Previous AGAAP	Consolidated effect of transition to AIFRS	AIFRS
	Notes	\$'800	\$'000	\$'000
Current assets
Cash and cash equivalents		3.398		3.398
Receivables		6,050		6,050
Other	d(iii)	5.648	(920)	4,728
Total current assets		15,096	(920)	14,176
Non-current assets
Investment properties	d(iii)	2,358,846	3,208	2,362,054
Investments accounted for using the equity method	d(v)	36,924	(243)	36,681
Other	d(ii)	8,970	(3,224)	5,746
Total non-current assets		2,404,740	(259)	2,404,481
Total assets		2,419,836	(1, 179)	2,418,657
Current liabilities
Payables		25,843		25,843
Provisions		50,399		50,399
Total current liabilities		76,242	٠	76,242
Non-current liabilities
Interest bearing liabilities		950,238		950,238
Loan with related parties		61.892		61,892
Other		680		680
Total non-current liabilities		1,012,810	$\blacksquare$	1,012,810
Total liabilities		1,089,052	$\blacksquare$	1,089,052

Net assets		1,330,784	(1, 179)	1,329,605
Equity
Equity attributable to equity holders of the parent
Contributed equity		1,303,433		1,303,433
Reserves	d(iv)	27,351	(27, 288)	63
Undistributed income			26,109	26,109
Total equity	dívii)	1,330,784	(1, 179)	1.329.605

DB RREEF OFFICE TRUST
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

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

DOT Consolidated			Consolidated effect of
		Previous	transition to
		AGAAP	AIFRS	AIFRS
	Notes	\$'000	\$'000	\$'000
Current assets
Cash and cash equivalents		9,850		9,850
Receivables		3,483		3,483
Loan to third parties Other	d(iii)	5,006 5,484	(1,673)	5,006 3,811

Total current assets		23,823	(1,673)	22,150
Non-current assets
Investment properties	d(iii)	2.446.810	2.241	2,449,051
Investments accounted for using the equity method	d(v)	36,852	(243)	36,609
Loan with related parties		207,354		207,354
Other	d(iii)	7,310	(6, 353)	957
Total non-current assets		2,698,326	(4, 355)	2,693,971
Total assets		2,722,149	(6,028)	2,716,121
Current liabilities
Payables		24,050		24,050
Provisions		35,517	$\blacksquare$	35,517
Total current liabilities		59,567	ä,	59.567
Non-current liabilities
Interest bearing liabilities		952,449		952,449
Loan with related parties		55,684		55,684
Other		694		694
Total non-current liabilities		1,008,827	$\qquad \qquad \blacksquare$	1,008,827
Total liabilities		1.068.394	$\blacksquare$	1,068,394

Net assets		1.653,755	(6, 028)	1,647,727
Equity
Equity attributable to equity holders of the parent
Contributed equity		1,359,854		1,359,854
Reserves	d(iv)	91.856	(91, 818)	38
Undistributed income		3,540	85,790	89,330
Total equity attributable to unitholders		1,455,250	(6,028)	1,449,222
Other minority interest		198,505		198,505
Total equity	dívii)	1.653.755	(6, 028)	1,647,727

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

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

Reconciliation of profit for the half-year ended 31 December 2004

DOT Consolidated
------------------	--

	Nates	Previous AGAAP \$'000	effect of transition to AIFRS \$'000	AIFRS \$'000
Revenue from ordinary activities Property revenue Interest revenue	d(i), (iii)	108,624 463	133	108,757 463
Total revenue from ordinary activities		109,087	133	109,220
Share of net profits/(losses) of associates accounted for using the equity method	d(v)	1.174	(4, 113)	(2,939)
Increment on revaluation of investments	$d(i)$ , (iii), (iv), (v)		25,279	25,279
Total income		110.261	21,299	131,560
Expense from ordinary activities Property expenses Responsible Entity fees Finance costs Costs associated with the Transaction Other expenses	d(iii)	(27, 955) (5, 346) (26, 492) (12, 821) (428)	200 ۰	(27, 755) (5, 346) (26, 492) (12, 821) (428)
Total expenses from ordinary activities		(73, 042)	200	(72, 842)
Net profit attributable to unitholders		37,219	21,499	58,718

Consolidated

Reconciliation of profit for the year ended 30 June 2005

DOT Consolidated		Previous	Consolidated effect of transition to
	Notes	AGAAP \$'000	AIFRS \$'000	AIFRS \$'000
Revenue from ordinary activities
Property revenue Interest revenue	d(i), (iii)	216.686 1.411	(426)	216,260 1,411
Total reversue from ordinary activities		218.097	(426)	217,671
Share of net profits/(losses) of associates accounted for using the equity method	d(v)	2,277	(4, 113)	(1, 836)
Increment on revaluation of investments	$d(i)$ , (iii), (iv), (v)		78,054	78,054
Other income		260		260
Total income		220.634	73.515	294,149
Expense from ordinary activities
Property expenses	d(iii)	(56, 751)	863	(55, 888)
Responsible Entity fees Finance costs		(10,825)		(10, 825)
Decrement on revaluation of investments	d(iv)	(53, 894) (6.807)	6,807	(53, 894)
Costs associated with the Transaction		(12, 480)		(12, 480)
Other expenses		(2,982)		(2,982)
Total expenses from ordinary activities		(143, 739)	7,670	(136,069)
Profit from ordinary activities		76.895	81.185	158,080
Less: net profit attributable to minority interests		(619)		(619)
Net profit attributable to unitholders		76.276	81,185	157,461

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(c) Reconciliation of the Consolidated Statement of Cash Flows for DOT Consolidated

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

(d) Notes to the reconciliation for DOT Consolidated

(i) Rental revenue

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

The effect is:

For the half-year ended 31 December 2004 Rental revenue increased by \$3,354,000, and increment on revaluation of investments decreased by \$3,354,000.

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

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

For the half-year ended 31 December 2004 There is no effect on DOT.

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

(iii) Lease incentives

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

The effect is:

At 1.July 2004

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

At 31 December 2004

Other assets - current decreased by \$920,000, other assets - non-current decreased by \$3,224,000, investment properties increased by \$3,799,000 and undistributed income decreased by \$345,000. \$591,000 of the increase in investment properties has been adjusted through revaluation since the transition date.

At 30 June 2005

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

For the half-year ended 31 December 2004

Property expenses decreased by \$200,000, property revenue decreased by \$3,221,000 and increment on revaluation of investments increased by \$2,128,000 with the remainder being taken to investment properties.

For the year ended 30 June 2005

Property expenses decreased by \$863,000, property revenue decreased by \$7,796,000 and increment on revaluation of investments increased by \$3,059,000 with the remainder being taken to investment properties.

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(d) Notes to the reconciliation for DOT Consolidated (continued)

(iv) Investment property

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

The effect is:

At 1 July 2004

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

At 31 December 2004

The asset revaluation reserve was decreased by \$27,288.000 and undistributed income increased by \$157,000 with the remainder being taken to the Consolidated Income Statement.

At 30 June 2005

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

For the half-year ended 31 December 2004 The increment on revaluation of investments has increased by \$22,635,000.

For the year ended 30 June 2005 The increment on revaluation of investments has increased by \$85,302,000.

(v) Investments accounted for using the equity method

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

The effect is:

At 1 July 2004

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

At 31 December 2004

Investments accounted for using the equity method decreased by \$243,000 with the adjustment taken to the Consolidated Income Statement.

At 30 June 2005

Investments accounted for using the equity method decreased by \$243,000 with the adjustment taken to the Consolidated Income Statement.

For the half-year ended 31 December 2004 The share of net losses of associates accounted for using the equity method has increased by \$4,113,000 and the increment on revaluation of investments has increased by \$3,870,000.

For the year ended 30 June 2005

The share of net losses of associates accounted for using the equity method has increased by \$4,113,000 and the increment on revaluation of investments has increased by \$3,870,000.

(vi) Derivatives

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

At 1 July 2005:

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

(vii) Valuation of sub-trust

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

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

(d) Notes to the reconciliation for DOT Consolidated (continued)

(vii) Equity

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

	1 Jul 2004 \$'000	31 Dec 2004 \$'000	30 Jun 05 \$'000
Total equity under AGAAP	1,400.769	1.330.784	1.653.755
AIFRS adjustments to equity: Investment properties Investments accounted for using the equity method Other assets	× (17, 654)	(936) (243) $\blacksquare$	(5,785) (243)
Total equity under AIFRS	1.383.115	1.329.605	1.647.727

Page No. 63 of 75

Note 15. Explanation of transition to Australian Equivalents to IFRS (continued)

DRO Consolidated

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

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

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

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

(c) Reconciliation of the Consolidated Statement of Cash Flows for DRO Consolidated

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

(d) Notes to the reconciliation for DRO Consolidated

(i) Derivatives

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

At 1 July 2005:

A derivative financial liability of \$13,999,000 and a derivative financial asset of \$13,350,000 was recorded to recognise the fair value of interest rate swaps with the net of \$649,000 being taken to undistributed income.
A derivative financial asset of \$5,762,000 and a derivative financial liability of \$5,762,000 was recorded to recognise the fair value of foreign exchange contracts, with the no net movement being taken to undistributed income.
An additional deferred tax asset of \$194,000 was recorded to recognise the tax impact of the value of derivative financial instruments, with the adjustment taken to undistributed income.

DB RREEF DIVERSIFIED TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Diversified Trust ("the Trust") declare that the financial statements and notes set out on pages 1 to 63:

comply with applicable Accounting Standards and AASB 134: Interim Financial Reporting, the Corporations $(i)$ Regulations 2001 and other mandatory professional reporting requirements; and
give a true and fair view of the Trust's and consolidated entity's financial position as at 31 December 2005 and of $(ii)$ 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;
(b) there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and
(c) the Trust has operated in accordance with the provisions of the Constitution dated 15 September 1984 (as amended) during the half-year ended 31 December 2005.

The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the Corporations Act 2001.

61 S --

Christopher T Beare Chair Sydney 27 February 2006

DB RREEF INDUSTRIAL TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Industrial Trust ("the Trust") declare that the financial statements and notes set out on pages 1 to 63:

comply with applicable Accounting Standards and AASB 134: Interim Financial Reporting, the Corporations $(i)$ Regulations 2001 and other mandatory professional reporting requirements; and
give a true and fair view of the Trust's and consolidated entity's financial position as at 31 December 2005 and of $(ii)$ 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;
(b) there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and
(c) the Trust has operated in accordance with the provisions of the Constitution dated 22 December 1999 (as amended) during the half-year ended 31 December 2005.

The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the Corporations Act 2001.

(1 S.

Christopher T Beare Chair Sydney 27 February 2006

DB RREEF OFFICE TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Office Trust ("the Trust") declare that the financial statements and notes set out on pages 1 to 63:

comply with applicable Accounting Standards and AASB 134: Interim Financial Reporting, the Corporations $(i)$ Regulations 2001 and other mandatory professional reporting requirements; and
$(ii)$ give a true and fair view of the Trust's and consolidated entity's financial position as at 31 December 2005 and of 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;
(b) there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and
(c) the Trust has operated in accordance with the provisions of the Constitution dated 1 December 1999 (as amended) during the half-year ended 31 December 2005.

The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the Corporations Act 2001.

61 S.

Christopher T Beare Chair Sydney 27 February 2006

DB RREEF OPERATIONS TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

The directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Operations Trust ("the Trust") declare that the financial statements and notes set out on pages 1 to 63:

comply with applicable Accounting Standards and AASB 134: Interim Financial Reporting, the Corporations $(i)$ Regulations 2001 and other mandatory professional reporting requirements; and
$(ii)$ give a true and fair view of the Trust's and consolidated entity's financial position as at 31 December 2005 and of 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;
(b) there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and
(c) the Trust has operated in accordance with the provisions of the Constitution dated 11 August 2004 during the half-year ended 31 December 2005.

The directors have been given the declarations by the chief executive officer and chief financial officer required by section 295A of the Corporations Act 2001.

(1 S.

Christopher T Beare Chair Sydney 27 February 2006

Independent audit report to the stapled security holders of DB RREEF Diversified Group

PricewaterhouseCoopers ABN 52 780 433 757

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

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Diversified Group (the consolidated entity) for the half-year ended 31 December 2005 included on DB RREEF Diversified Group's web site. The directors of DB RREEF Funds Management Limited are responsible for the integrity of the DB RREEF Diversified Group web site. We have not been engaged to report on the integrity of this web site. The audit report refers only to the financial report identified below. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this web site.

Audit opinion

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

gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the DB RREEF Diversified Group (defined below) as at 31 December 2005 and of its performance for the half-year ended on that date, and
is presented in accordance with the Corporations Act 2001, Accounting Standard AASB ٠ 134: 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 balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors' declaration for the DB RREEF Diversified Group (the consolidated entity), for the half-year ended 31 December 2005. The consolidated entity comprises both DB RREEF Diversified Trust (the trust) and the entities it controlled during that half-year, including DB RREEF Office Trust, DB RREEF Industrial Trust, DB RREEF Operations Trust, and the entities they 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 consolidated entity 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 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 134: Interim Financial Reporting and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the consolidated entity's financial position, and its performance as represented by the results of its operations, changes in equity and cash flows.

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

examining, on a test basis, information to provide evidence supporting the amounts and $\bullet$ disclosures in the financial report, and
assessing the appropriateness of accounting policies and disclosures used and the $\bullet$ 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.

Independence

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

Fracenatorhouse Corps.

PricewaterhouseCoopers

D.A. Prothero Partner

Sydney 27 February 2006

Independent audit report to the stapled security holders of DB RREEF Industrial Group

PricewaterhouseCoopers ABN 52 780 433 757

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

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Industrial Group (the consolidated entity) for the half-year ended 31 December 2005 included on DB RREEF Industrial Group's web site. The directors of DB RREEF Funds Management Limited are responsible for the integrity of the DB RREEF Industrial Group web site. We have not been engaged to report on the integrity of this web site. The audit report refers only to the financial report identified below. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this web site.

Audit opinion

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

gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the DB RREEF Industrial Group (defined below) as at 31 December 2005 and of its performance for the half-year ended on that date, and
is presented in accordance with the Corporations Act 2001, Accounting Standard AASB 134: 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 balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors' declaration for the DB RREEF Industrial Group (the consolidated entity), for the half-year ended 31 December 2005. The consolidated entity comprises both DB RREEF Industrial Trust (the trust) and the entities it controlled during that half-year.

PRICEWATERHOUSE COPERS ®

Audit approach

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 134: Interim Financial Reporting and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the consolidated entity's financial position, and its performance as represented by the results of its operations, changes in equity and cash flows.

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

examining, on a test basis, information to provide evidence supporting the amounts and $\bullet$ disclosures in the financial report, and
assessing the appropriateness of accounting policies and disclosures used and the ٠ 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.

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

Independence

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

warraterhow Cooper

PricewaterhouseCoopers

D.A. Prothero Partner

Sydney 27 February 2006

Independent audit report to the stapled security holders of DB RREEF Office Group

PricewaterhouseCoopers ABN 52 780 433 757

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

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Office Group (the consolidated entity) for the half-year ended 31 December 2005 included on DB RREEF Office Group's web site. The directors of DB RREEF Funds Management Limited are responsible for the integrity of the DB RREEF Office Group web site. We have not been engaged to report on the integrity of this web site. The audit report refers only to the financial report identified below. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this web site.

Audit opinion

In our opinion, the financial report of DB RREEF Office Group:

gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the DB RREEF Office Group (defined below) as at 31 December 2005 and of its performance for the half-year ended on that date, and
is presented in accordance with the Corporations Act 2001, Accounting Standard AASB 134: 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 balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors' declaration for the DB RREEF Office Group (the consolidated entity), for the half-year ended 31 December 2005. The consolidated entity comprises both DB RREEF Office Trust (the trust) and the entities it controlled during that half-year.

Audit approach

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

examining, on a test basis, information to provide evidence supporting the amounts and $\bullet$ 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.

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

Independence

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

nanaderhanos

PricewaterhouseCoopers

D.A. Prothero Partner

Sydney 27 February 2006

Independent audit report to the stapled security holders of DB RREEF Operations Group

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Operations Group (the consolidated entity) for the half-year ended 31 December 2005 included on DB RREEF Operations Group's web site. The directors of DB RREEF Funds Management Limited are responsible for the integrity of the DB RREEF Operations Group web site. We have not been engaged to report on the integrity of this web site. The audit report refers only to the financial report identified below. It does not provide an opinion on any other information which may have been hyperlinked to/from the financial report. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this web site.

Audit opinion

In our opinion, the financial report of DB RREEF Operations Group:

gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the DB RREEF Operations Group (defined below) as at 31 December 2005 and of its performance for the half-year ended on that date, and
is presented in accordance with the Corporations Act 2001, Accounting Standard AASB 134: 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 balance sheet, income statement, statement of changes in equity, cash flow statement, accompanying notes to the financial statements, and the directors' declaration for the DB RREEF Operations Group (the consolidated entity), for the half-year ended 31 December 2005. The consolidated entity comprises both DB RREEF Operations Trust (the trust) and the entities it controlled during that half-year.

PricewaterhouseCoopers ABN 52 780 433 757

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

Audit approach

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 134: Interim Financial Reporting and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding of the consolidated entity's financial position, and its performance as represented by the results of its operations, changes in equity and cash flows.

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

examining, on a test basis, information to provide evidence supporting the amounts and $\bullet$ 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.

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

Independence

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

nen et stom Coper

PricewaterhouseCoopers

D.A. Prothero Partner

Sydney 27 February 2006

DB RREEF TRUST

TOP 20 INVESTORS REPORT as at 31 January 2006

Rank	Investor	Balance	Issued
			Capital%
$\overline{1}$	J P MORGAN NOMINEES AUSTRALIA LIMLTED	511, 170, 482	18.48%
$\overline{2}$	WESTPAC CUSTODIAN NOMINEES LIMITED	375,577,288	13.58%
3	NATIONAL NOMINEES LIMITED	369,865,321	13.37%
$\overline{4}$	CITICORP NOMINEES PTY LIMITED	186,413,730	6.74%
$\overline{5}$	ANZ NOMINEES LIMITED	138, 144, 433	4.99%
$\overline{6}$	RBC GLOBAL SERVICES AUSTRALIA NOMINEES PTY LIMITED	137,612,986	4.98%
7	CITICORP NOMINEES PTY LIMITED	69,845,866	2.53%
$\overline{8}$	COGENT NOMINEES PTY LIMITED	$\overline{51,032,511}$	1.85%
9	AMP LIFE LIMITED	38,532,973	1.39%
10	QUESTOR FINANCIAL SERVICES LIMITED	38,076,902	1.38%
$\overline{11}$	VICTORIAN WORKCOVER AUTHORITY	34,552,082	1.25%
$\overline{12}$	RBC GLOBAL SERVICES AUSTRALIA NOMINEES PTY LIMITED	34,114,546	1.23%
$\overline{13}$	COGENT NOMINEES PTY LIMITED	27, 289, 738	0.99%
14	WESTPAC FINANCIAL SERVICES LIMITED	24,358,602	0.88%
15	TRANSPORT ACCIDENT COMMISSION	24, 116, 720	0.87%
$\overline{16}$	UBS NOMINEES PTY LTD	22, 177, 497	0.80%
$\overline{17}$	BOND STREET CUSTODIANS LIMITED	20,723,161	0.75%
$\overline{18}$	AUSTRALIAN EXECUTOR TRUSTEES LIMITED	16,039,252	0.58%
$\overline{19}$	ANZ NOMINEES LIMITED	14,420,480	0.52%
$\overline{20}$	CITICORP NOMINEES PTY LIMITED	13,315,678	0.48%
	TOTAL FOR TOP 20	2, 147, 380, 248	77.64%
	TOTAL OTHER INVESTORS:	618,408,058	22.36%
	GRAND TOTAL:	2,765,788,306	100.00%

Investor Ranges as at 31 January 2006

Ranges	Investors	Securities	% Issued Capital
$-1000$	1,228	511,996	0.02
$1001 - 5000$	4,893	15,936,601	0.58
5001 10000	6,666	51,289,666	1.85
10001 100000	13,029	319,674,890	11.56
100001 and Over	418	2,378,375,153	85.99
Total	26,234	2,765,788,306	100.00

The number of security investors holding less than a marketable parcel of 365 securities (\$1.370 on 31/01/2006) is 611 and they hold 66876 securities.

AI assistant

DEXUS — Interim / Quarterly Report 2006

64807_rns_2006-02-27_ea49a8e4-b950-4ca4-a78b-652927583179.pdf

DB RREEF Trust (ASX: DRT) Half year results for the period ending 31 December 2005

Results for Announcement to the Market

DB RREEF Trust (ASX:DRT) Interim results to 31 December 2005

DRT Portfolio Results - Strong Property Performance

Commercial Portfolio

Industrial Portfolio (Australia)

Retail Portfolio

US Industrial Portfolio

Operations

Outlook

Contact details

DB RREEF Trust (ASX:DRT) - Appendix 4D

Results for announcement to the market

Financial reporting for the half year ended 31 December 2005

Distribution Reinvestment Plan (DRP)

New Entities:

Results Commentry:

Notes:

COMBINED FINANCIAL STATEMENTS

DB RREEF DIVERSIFIED TRUST (ARSN 089 324 541)

HALF-YEAR REPORT 31 DECEMBER 2005

DB RREEF DIVERSIFIED TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

Directors

Review of operations

Significant changes in the state of affairs

Rounding of amounts

Auditor

DB RREEF INDUSTRIAL TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

Directors

Review of operations

Significant changes in the state of affairs

Rounding of amounts

Auditor

DB RREEF OFFICE TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

Directors

Review of operations

Significant changes in the state of affairs

Rounding of amounts

Auditor

DB RREEF OPERATIONS TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

Directors

Review of operations

Significant changes in the state of affairs

Rounding of amounts

Auditor

Auditor's Independence Declaration

PricewaterhouseCoopers ABN 52 780 433 757

Auditor's Independence Declaration

PricewaterhouseCoopers ABN 52 780 433 757

Auditor's Independence Declaration

Auditor's Independence Declaration

DB RREEF DIVERSIFIED TRUST. DB RREEF INDUSTRIAL TRUST, DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFOR THE HALF-YEAR ENDED 31 DECEMBER 2005

DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTCOMBINED CONSOLIDATED CASH FLOW STATEMENTSFOR THE HALF-YEAR ENDED 31 DECEMBER 2005

Note 1. Summary of significant accounting policies

(a) Basis of preparation

Note 1. Summary of significant accounting policies (continued)

(b) Principles of consolidation

Controlled entities

Partnerships and joint ventures

(c) Revenue recognition

Rent

Income support

Interest income

(d) Dividends and distribution income

(e) Expenses

Property expenses

(e) Expenses (continued)

Financing costs to financial institutions

(f) Derivatives and other financial instruments

Derivatives $\langle i \rangle$

(ii) Embedded derivatives

(iii) Debt and equity instruments issued by the Stapled Entity

(iv) Loans and receivables

Note 1. Summary of significant accounting policies (continued)

$(q)$ GST

(h) Taxation

(i) Distributions

DEXUS Interim / Quarterly Report 2006

DB RREEF DIVERSIFIED TRUST. DB RREEF INDUSTRIAL TRUST, DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST COMBINED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER 2005

DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST
COMBINED CONSOLIDATED CASH FLOW STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2005