DEXUS — Interim / Quarterly Report 2007

Feb 25, 2007

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 1266 Facsimile 61 2 9017 1110

Email: ben.lehmann@dbrreef.com

Dear Sir / Madam

DB RREEF Trust (ASX: DRT) Half year results for the period ending 31 December 2006

Results for Announcement to the Market

Australian Stock Exchange Limited

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

• Media Release DB RREEF Trust Interim Results to 31 December 2006; $\bullet$
• Appendix 4D Statement "Results for announcement to the market"; ٠
• Financial Statements (DB RREEF Diversified Trust) for the period ending 31 December 2006, including Independent Audit Report from PricewaterhouseCoopers;
• Half Year Report 2006; and ۰
• Top 20 holders and holders spread.

For further information, please contact:

CEO, DB RREEF Trust:	Victor Hoog Antink	$(02)$ 9017 1130
Fund Manager, DB RREEF Trust:	Ben Lehmann	$(02)$ 9017 1266
Investor Relations:	Karol O'Reilly	$(03)$ 8611 2930
Media Enquiries:	Emma Parry	$(02)$ 9017 1133

Yours sincerely

Tanya Cox Company Secretary

26 February 2007

The Manager

20 Bridge Street

Sydney NSW 2000

DB RREEF Trust (ASX:DRT)

MacTa Ratassa

26 February 2007

DB RREEF Trust today announced solid performance for the half year

Announcing DB RREEF Trust's half year results, CEO Victor Hoog Antink said: "I am pleased to report another solid performance with all key financial and operational results having improved in the period during which we also increased acquisition and development activity thus laying the foundations for further growth".

Key financial highlights

• Total income \$728 million, up 37%
• Net profit to security holders \$510 million, up 52%
• Distribution per security 5.60 cents, up 2.8% $\mathbf{r}$
• Total assets \$9 billion, up 9%
• Net tangible assets \$1.65, up 7.8%
• Gearing steady at 38.9%

Key operational highlights

• Portfolio occupancy 95.7%, up 0.6%
• Lease duration steady at 5.3 years
• Revaluations \$359 million, up 4.7%
• Funds under management \$13 billion, up 13%
• Group acquisition activity \$1.4 billion Group development pipelines \$2.9 billion, up 60%

Office

The office portfolio, contributed \$124.9 million or 46.6% to overall earnings. As a result of strong leasing activity, the occupancy rate remains high at 97.3%, with an increase in the average lease duration to 6.4 years. The overall portfolio is valued at \$3.9 billion, following revaluations in the period of \$286 million. Four development opportunities, including a new premium grade office tower at Bent Street, Sydney, are currently being progressed with an estimated value on completion of \$900 million.

Retail

The retail portfolio delivered approximately \$27.9 million representing 10.4 % to overall earnings. Moving Annual Turnover for the 12 months to 31 December 2006 was up 8% to \$1.58 billion. Occupancy remains high at 99.7% and the average lease duration steady at 5.3 years. Revaluations contributed \$64 million, an increase of 7%. Two major developments with an estimated project cost of \$190m are underway in North Lakes, QLD and Plenty Valley, VIC.

Industrial

The industrial portfolio, which covers Australia, North America and now for the first time Europe, contributed \$115.3 million, or 43.0% to overall earnings.

The Australian portfolio is valued at \$1.7 billion, representing an increase of \$118 million or 7.5% from 30 June 2006. Occupancy remains high at 97.2% and the average lease duration remains steady at 4.8 years. Five development projects were completed in the period and two major developments are underway for the Coles Group and Fosters Australia. In addition, two major development sites were secured in North Ryde, NSW, and Laverton North, VIC with a total estimated value on completion of \$600 million.

Our North American portfolio is valued at approximately \$1.4 billion. The portfolio contributed \$54.8 million of net property income, representing 20.4 percent of overall earnings. Occupancy increased to 94.1 percent in the half year with an average lease duration of 3.3 years. During the period, DB RREEF Trust secured a \$600 million investment program with Whirlpool. The first of these investments, which is in Florida, will be acquired prior to year end. In addition, three development projects, costing approximately \$140 million, are currently under construction in Florida, Virginia and California.

During the half year, DB RREEF Trust entered the European market with the acquisition of six industrial properties in France and 14 industrial properties in Germany. These properties, which cost \$339 million, have an overall occupancy of 92.2% and an average lease duration of 4.9 years.

Third party funds

DB RREEF group third party funds under management have grown to \$4.3 billion, following the acquisition of 10 properties totalling \$272 million and revaluations. These funds have generated total returns for investors that have outperformed the external benchmark index over both 1 and 3 years.

Sustainability

At DB RREEF we are committed to the long term integration of sustainability practices throughout our business. The sustainability initiatives highlighted in our 2006 Annual Report are well underway and I am pleased to announce that from 2007 we will buy approximately 15 percent of the electricity used in our commercial properties from renewable sources", said Mr Hoog Antink.

Outlook

Commenting on the six months results, Mr Hoog Antink said "During the half year our high quality portfolio has performed well and we are working proactively to maximise its future potential. We are increasing our investments with \$1 billion of acquisitions and commitments made in the year so far, and have created a development pipeline which will result in another \$2.2 billion of property being available for the group in the future.

I am pleased to confirm we are on target to pay a full year distribution of 11.3 cents per stapled security, up from 11.0 cents at 30 June 2005".

l Ceo db Rreef :	Victor Hoog Antink	$(02)$ 9017 1130
Fund Manager, DB RREEF Trust:	Ben Lehmann	$(02)$ 9017 1266
Media Relations:	Emma Parry	(02) 9017 1133/0421 000 329

For further information, please contact:

About DB RREEF

DB RREEF Funds Management Limited is one of Australia's largest property fund managers, with total funds under management as at 31 December 2006 of \$13.0 billion. The listed property portfolio comprises approximately \$8.7 billion of direct property assets in Australia, New Zealand, the United States, Germany and France and the unlisted property portfolio comprises approximately \$4.3 billion of domestic assets.

Results for announcement to the market.

DB RREEF Trust ARSN 089 324 541

Financial reporting for the half year ended 31 December 2006

DB RREEF Diversified Trust	Note 1
(ARSN 089 324 541)
		31 Dec 2006	31 Dec 2005	% change
		\$'000	\$'000
Revenue from ordinary activities		353,151	330,068	7.0%
Total income		728,476	531,722	37.0%
Net profit attributable to security holders after tax and after minority interests		510,482	335,607	52.1%
Distribution to security holders		159,646	150.735	5.9%
Distributions per security for the period ending		CPU	CPU
31 December	Note 2	5.60	5.45	2.7%
		\$'000	\$'000
Total assets		9,030,023	7,549,526	19.6%
Total borrowings		3,513,663	3,085,802	13.9%
Security holders equity		4,703,974	3,725,599	26.2%
Market capitalisation		5,060,207	3,844,446	31.6%
		\$ per unit	\$ per unit
Net tangible assets (excluding minority interests)		\$1.65	\$1.35	22.2%
Securities price		\$1,775	\$1,390	27.7%
Securíties on issue (000)		2,850,821	2,765,788	3.1%
Record date		29 Dec 2006	30 Dec 2005
Payment date		28 Feb 2006	28 Feb 2005

Distribution Reinvestment Plan (DRP)

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

The record date for DRP election notices for the distribution period ending 31 December 2006 was 29 December 2006.

New entities

During the period DB RREEF Industrial Trust, through its wholly owned subsidiary DIT France Logistique SAS, acquired all the shares in DIT France I SAS (formerly Prologis France I SAS) and DIT France XXXII EURL (formerly Prologis France XXXII EURL).

Results commentary

For a review of results of DB RREEF Trust for the half-year ended 31 December 2006, refer to the attached Media Release. Attached with this Appendix 4D is a copy of the audited Financial Statements for the half-year ended 31 December 2006.

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: The distribution for the period 1 July 2006 to 31 December 2006 is the aggregate of the distributions from DB RREEF Diversified Trust, DB RREEF Industrial Trust, DB RREEF Office Trust and DB RREEF Operations Trust. The Annual Tax Statement, issued as at 30 June 2007, will provide details of the components of DB RREEF Trust's distribution.

COMBINED FINANCIAL STATEMENTS

DB RREEF DIVERSIFIED TRUST (ARSN 089 324 541) DB RREEF INDUSTRIAL TRUST (ARSN 090 879 137) DB RREEF OFFICE TRUST (ARSN 090 768 531) DB RREEF OPERATIONS TRUST (ARSN 110 521 223)

HALF-YEAR REPORT 31 DECEMBER 2006

Contents	Page
DDF Directors' Report	1
DIT Directors' Report	3
DOT Directors' Report	4
DRO Directors' Report	5
DDF Auditor's Independence Declaration	6
DIT Auditor's Independence Declaration	7
DOT Auditor's Independence Declaration	8
DRO Auditor's Independence Declaration	9
Income Statements	10
Balance Sheets	11
Statements of Changes in Equity	12
Cash Flow Statements	13
Notes to the Financial Statements	14
DDF Directors' Declaration	40
DIT Directors' Declaration	41
DOT Directors' Declaration	42
DRO Directors' Declaration	43
Independent Audit Report to the Security Holders of DDF	44
Independent Audit Report to the Unitholders of DIT	46
Independent Audit Report to the Unitholders of DOT	48
Independent Audit Report to the Unitholders of DRO	50

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

Under Australian equivalents to International Financial Reporting Standards ("AIFRS"). DDF has been deemed the parent entity for accounting purposes. Therefore the DDF consolidated financial statements include all entities forming part of DRT. As DIT, DOT and DRO are disclosing entities, the financial statements of these entities as at 31 December 2006 are shown in adjacent columns in this report in accordance with ASIC Class Order CO 05/642: Combining Financial Reports of Stapled Security Issuers.

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

DB RREEF DIVERSIFIED TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

The Directors of DB RREEF Funds Management Cimited ("DRFM") as Responsible Entity of DB RREEF Diversified Trust and its consolidated entities ("the Group") present their Directors' Report together with the consolidated Financial Statements of the Group for the half-year ended 31 December 2006.

Directors

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

C T Beare BSc, BE (Hons), MBA, PhD, FAICD¹⁴⁶
E A Alexander AM, BComm, FCA, FAICD, FCPA³²

• B.R. Brownjohn BComm¹⁹³⁶ S F Ewen OAM, FILE¹⁴
• A J Fay BAg.Ed (Hons), ASIA (Alternate to C B Leitner)
  V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD
• C B Leitner III BA
• B E Soullin BEc^ase

Independent Director ² Audit Committee Member

• ^* Compliance Committee Member
• *Nomination and Remuneration Committee Member

⁶ Treasury Policy Committee Member

No Directors held an interest in the Group as at 31 December 2006 or at the date of this report.

Review of operations

Net profit attributable to stapled security holders for the half-year ended 31 December 2006 was \$510.5 million (2005: \$335.6 million).

Acquisitions

France

On 11 July 2006, DIT France Logistique SAS, a wholly owned subsidiary of DIT, acquired all the shares in two French companies, Prologis France I SAS and Prologis France XXXII EURL for \$119.6 million (69.9 million). These companies own six industrial properties in France with a market value of \$116.1 million (€67.8 million) (the remainder of the purchase price being for the other net assets of the companies).

Germany

On 31 December 2006, DIT, through a newly created sub-trust, DB RREEF GLOG Trust acquired thirteen industrial properties in Germany for \$208.0 million (€125.1 million). A further industrial property in Germany is due to be acquired through this trust in May 2007 for \$26.9 million (€16.2 million).

Whirtppot

On 22 August 2006, the Group entered into an agreement with Whirpool Corporation to acquire on completion, approximately 11 new facilities across the US, Canada and Europe. The first facility in Orlando. Florida is expected to be complete in April 2007, with an estimated cost of \$32.5 million (US\$25.8 million). The acquisition of the second facility in Toronto, Canada is estimated to be completed in December 2007 with an estimated cost of \$81.7 million (US\$64.7 million).

Domestic

On 20 November 2006, DOT acquired a 50 percent share in a development project at 144 Wicks Rd, North Ryde with DB RREEF Wholesale Property Fund, for \$25.9 million. In addition, on 3 November 2006, DIT acquired a vacant land parcel adjacent to the DB RREEF Industrial Estate, Laverton North for \$32.0 million. These acquisitions are in accordance with our objective of increasing the focus on delivering value to unitholders through an enhanced development pipeline.

Disposals

Disposals made during the period were Oak Park Business Centre, Minneappolis for US\$3.02 million and 121 Evans Road, Salisbury for \$24 million.

Leasing

Throughout the portfolio, over 260,000 square meters were leased in the half-year to 31 December 2006. Occupancy levels are 95.1 percent and average lease expiry is 5.3 years.

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 Directors' Report or the Financial Statements that has significantly or may significantly affect the operations of the Group, the results of those operations, or state of the Group's affairs in future financial periods.

Combined financial statements

The Group has applied Class Order 05/642 issued by the Australian Securities & Investments Commission which allows issuers of stapled securities to include their financial statements and the consolidated or combined Financial Statements of the Group in adjacent columns in one financial report.

Rounding of amounts and currency

The Trusts are registered schemes 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 the Financial Statements.

Amounts in the Directors' Report and the Financial Statements have been rounded off in accordance with that Class Order to the nearest thousand dollars, unless otherwise indicated.

All figures in this Directors' Report and the Financial Statements, except where otherwise stated, are expressed in Australian dollars.

DB RREEF DIVERSIFIED TRUST DIRECTORS' REPORT (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

Auditor

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

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

Management representation

The Chief Executive Officer and the Chief Financial Officer have reviewed the Group's financial reporting processes, policies and procedures together with
Its risk management and internal control and compliance policies an for the period have been properly meintained in accordance with the Corporations Act 2001 and the Financial Statements and their notes comply with the accounting standards and give a true and fair view.

Directors' authorisation

Christopher T Beare Chair Sydney 26 February 2007

Victor P Hoog Antink Chief Executive Officer Sydney
26 February 2007

DR RREEF INDUSTRIAL TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

The Directors of DB RREEF Funds Management Limited ("DRFM") as Responsible Entity of DB RREEF Industrial Trust ("DIT") present their Directors' Report together with the consolidated Financial Statements of DIT for the half-year ended 31 December 2006.

Directors

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

C T Beare BSc, BE (Hons), MBA, PhD, FAICD 14b E A Alexander AM, BComm, FCA, FAICD, FCPA 12 B R Brownichn BComm¹²⁵ S F Ewen OAM, FILE 1 27 Ence Party Free
A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner)
V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD C B Leitner III BA B E Scullin BEc224 Independent Director

Audit Committee Member

^* Compliance Committee Member

Nomination and Remuneration Committee Member

⁶Treasury Policy Committee Member

No Directors held an interest in DIT as at 31 December 2006 or at the date of this report.

Review of operations

Net profit attributable to unitholders for the half-year ended 31 December 2006 was \$43.2 million (2005: \$84.9 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 Directors' 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 the Financial Statements.

Amounts in the Directors' Report and the Financial Statements have been rounded off in accordance with that Class Order to the nearest thousand dollars, unless otherwise indicated

Ail figures in this Directors' Report and the Financial Statements, except where otherwise stated, are expressed in Australian dollars.

Auditor

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

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

Management representation

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

Directors' authorisation

Christopher T Beare Chair Sydney 26 February 2007

Victor P Hoog Antink Chief Executive Officer Sydney 26 February 2007

DR RREEF OFFICE TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

The Directors of DB RREEF Funds Management Limited ("DRFM") as Responsible Entity of DB RREEF Office Trust ("DOT"). present their Directors' Report together with the consolidated Financial Statements of DOT for the half-year ended 31 December 2006.

Directors

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

C T Beare BSc, BE (Hons), MBA, PhD, FAICD 14b E A Alexander AM, BComm, FCA, FAICD, FCPA 12 B R Brownichn BComm¹²⁵ S F Ewen OAM, FILE 1 27 Ence Party Free
A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner)
V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD C B Leitner III BA B E Scullin BEc224 Independent Director

Audit Committee Member

^* Compliance Committee Member

Nomination and Remuneration Committee Member ⁶Treasury Policy Committee Member

No Directors held an interest in DOT as at 31 December 2006 or at the date of this report.

Review of operations

Net profit attributable to unitholders for the half-year ended 31 December 2006 was \$343.4 million (2005: \$111.5 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 Directors' 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 the Financial Statements.

Amounts in the Directors' Report and the Financial Statements have been rounded off in accordance with that Class Order to the nearest thousand dollars, unless otherwise indicated

Ail figures in this Directors' Report and the Financial Statements, except where otherwise stated, are expressed in Australian dollars.

Auditor

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

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

Management representation

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

Directors' authorisation

Christopher T Beare Chair Sydney 26 February 2007

Victor P Hoog Antink Chief Executive Officer Sydney 26 February 2007

DR RREEF OPERATIONS TRUST DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

The Directors of DB RREEF Funds Management Limited ("DRFM") as Responsible Entity of DB RREEF Operations Trust ("DRO") present their Directors' Report together with the consolidated Financial Statements of DRO for the half-year ended 31 December 2006.

Directors

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

C T Beare BSc, BE (Hons), MBA, PhD, FAICD 145 E A Alexander AM, BComm, FCA, FAICD, FCPA¹² B R Brownjohn BComm 124 S.F. Ewen OAM, FILE 14 A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner) V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD C B Leitner III BA B E Scullin BEc²³⁴

¹ Independent Director

• ² Audit Committee Member
• ³ Compliance Committee Member
• 'Nomination and Remuneration Committee Member
• ⁶ Treasury Policy Committee Member

No Directors held an interest in DRO as at 31 December 2006 or at the date of this report.

Review of operations

Net profit attributable to unitholders for the half-year ended 31 December 2006 was \$4.3 million (2005: \$3.8 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 Directors' 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 the Financial Statements.

Amounts in the Directors' Report and the Financial Statements have been rounded off in accordance with that Class Order to the nearest thousand dollars, unless otherwise indicated.

All figures in this Directors' Report and the Financial Statements, except where otherwise stated, are expressed in Australian dollars.

Auditor

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

A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 9.

Management representation

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

Directors' authorisation

Christopher T Beare Chair Sydney 26 February 2007

Victor P Hoog Antink Chief Executive Officer Sydney 26 February 2007

Auditor's Independence Declaration

As lead auditor for the audit of DB RREEF Diversified Trust for the half year ended 31 December 2006, 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.

√性力へ

Sydney 26 February 2007

JA Dunning Partner PricewaterhouseCoopers

PricewaterhouseCoopers ABN 52 780 433 757

Auditor's Independence Declaration

As lead auditor for the audit of DB RREEF Industrial Trust for the half year ended 31 December 2006, 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.

JADU

JA Dunning Partner PricewaterhouseCoopers

Sydney 26 February 2007

PricewaterhouseCoopers ABN 52 780 433 757

PRICEWATERHOUSE COPERS

Auditor's Independence Declaration

As lead auditor for the audit of DB RREEF Office Trust for the half year ended 31 December 2006, 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.

JA Dunning

Partner PricewaterhouseCoopers

Sydney 26 February 2007

PricewaterhouseCoopers ABN 52 780 433 757

PRICEWATERHOUSE COPERS ®

Auditor's Independence Declaration

As lead auditor for the audit of DB RREEF Operations Trust for the half year ended 31 December 2006, 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.

JHIDU JA Dunning

Partner PricewaterhouseCoopers

Sydney 26 February 2007

PricewaterhouseCoopers ABN 52 780 433 757

DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST,
DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST
INCOME STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

		DDF Consolidated		DIT Consolidated		DOT Consolidated			DRO Consolidated
	Notes	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 5'000	31 Dec 2005 \$'000	31 Dec 2006 5'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$'000
Ravenue from ordinary activities
Property revenue		348,286	326,012	53.441	47,279	127,812	117,292	2,662	1,513
Interest revenué		4,865	4.056	471	131	469	440	2.749	2,615
Interest revenue from the Trusts						2,143	4,426	41,066	19,055
Recoverables from the Trusts								678	551
Total revenue from ordinary activities		353,151	330,068	53.912	47,410	130,424	122.158	47,155	23.734
Share of net profits of associates accounted for using the equity method		29,564	8.749	5,132	8,598	5,182	1,706	4,016	2,242
Procéeds from sale of inventory		3,959
Net gain on sale of investment properties		32	96	67
			184,085		54,740		47.658
Net fair value gain of investment properties		340,904		13.086		269.236
Net fair value gain of derivatives		152	5,440	2,350		8,488	4,619		1,046
Net foreign exchange gain			1.401		695		ſ۹
Other income		664	1,883	244	66	281	1,817	88
Total income		728,476	531,722	74.841	111,509	413,611	178,169	51,259	27,022
Expenses
Property expenses		(85, 415)	(75,596)	(10, 269)	(8, 391)	(29, 723)	(27, 533)	(738)	(465)
Responsible Entity fees		(16, 585)	(13, 549)	(3,658)	(2,985)	(6, 562)	(5, 616)
Finance costs		(96, 044)	(80,080)	(16,774)	(13,825)	(31, 705)	(30, 432)	(43, 994)	(21, 845)
Net fair value loss of derivatives					(1,080)			(1, 154)
Carrying value of inventory sold		(3,478)
Net foreign exchange foss		(658)		(278)		(55)
Depreciation		(1, 389)						(1, 389)
Impairment of goodwill			(3.267)
Other expenses		(1,766)	(5,213)		(302)	(645)	(1,442)	(32)	(223)
Total expenses		(205, 335)	(177, 705)	(30, 979)	(26, 583)	(68, 690)	(65, 223)	(47, 307)	(22, 533)
Profit before tax		523,141	354,017	43.862	84,926	344,921	112,946	3,952	4,489
Tax expense
Income tax benefit/(expense)		(315)	(672)	(700)				385	(672)
Withholding tax expense		(3, 524)	(7.254)
Total tax expense		(3,839)	(7,926)	(700)	$\mathbf{v}$	à.	v	385	(672)
Profit after tax		519,302	346,091	43.162	84,926	344,921	112,946	4,337	3, B17
Profit attributable to:
Equity holders of the parent		119.593	135,399	43.162	84,926	343,388	111,463	4,337	3,617
Equity holders of other stapled entities (minority interest)		390,889	200,208
Stapled security holders		510,482	335,607	43,162	84,926	343,388	111,463	4,337	3, B17
Net profit attributable to other minority interests		8,820	10,484			1,533	1,483
Net profit		519,302	346,091	43,162	84,926	344,921	112,946	4,337	3,817
Eamings per unit		Cents	Cents	Cents	Cents	Cents	Cents	Cents	Cents
Basic earnings per unit on profit attributable to	15	4.22	4.91	1.52	3.08	12.11	4.05	0.15	0.14
unisholders of the parent
Dituted earnings per unit on profit attributable to unithoiders of the parent	15	4.22	4.91	1.52	3.08	12.11	4.05	0.15	0.14

The above incorse Statements should be read in conjusction with the accompanying notes.

DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST,
DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST
BALANCE SHEETS
AS AT 31 DECEMBER 2006

		DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	Notes	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000
Current assets Cash and cash equivalents		70,691	106,428	15,527	31,980	12,052	17,127	1,757	5,814
Receivables		37,360	35,254	6,254	3,532	9,110	3,089	4,667	7,610
Held for sale investment properties	2	151,484	24,000	26,484	24,000	125,000	$\sim$
Inventories	3		3,344
Derivative financial instruments		87,740	92,478	21,636	23,381	34,097	25,754	49,174	62,173
Loans and receivables	4	51,936	45,092					51,936	45,092
Loans with related parties	7			138,948	138,94B
Current tax assets			289						289
Other		7,893	6,050	890	1,879	1,861	2,101	149	146
Total current assets		407,104	312,935	209,739	223,720	182,120	48,071	107,683	121,124
Non-current assets
Investment properties	2	8,054,292	7,558.945	1,343,112	1,002,754	3,005,032	2,842,573
Property plant and equipment	5	293,834	173,468	158,539	80,350	27,451		57,766	56,472
Investments accounted for using the equity method	6	260,014	235,062	250,601	272,400	41,206	36,800	22,059	15,761
Deferred tax assets		1,642	116	146				1,496	116
Loans with related parties	7				×,	59,915	181,840	1,615,872	1,382,250
Other		13,137	7,012	1,913	842	2,151	941	63
Total non-current assets		8,622,919	7,974,603	1,754,311	1,356,346	3,135,755	3,062,154	1,697,256	1,454,599
Total assets		9.030.023	8,287,538	1,964,050	1,580,066	3,317,875	3.110.225	1,804,939	1,575,723
Current liabilities
Payables		119,865	100,901	28,317	10,509	28,987	29,024	14,407	7,821
Interest bearing liabilities	8	86,023	244,553						216,704
Loans with related parties	7				÷	55,684	55,684	48,932	48,932
Current tax liabilities		1,108	3,156	358				750	1,225
Provisions		159,646	155,523	35,949	31,113	59,511	70,232	1,151
Derivative financial instruments		14,561	20,477	5,824	9,116	2,173	374	46,281	62,327
Other		5,284	5,452					13	20
Total current liabilities		386,487	530,062	70,448	50,738	146,355	155,314	111,534	337,029
Non-current liabilities
Interest bearing liabilities	8	3,427,640	2,950,494	925,514	583,795	951,396	1,042,484	1,674,073	1,223,023
Deferred tax liabilities		48,381	48,726	146				32	74
Financial liability with minority interests		29,574	29,105		٠	٠	$\overline{\phantom{a}}$
Other		11,375	13,638	1,427	717	460	374
Total non-current liabilities		3,516,970	3,041,963	927,087	584,512	951,856	1,042,858	1,674,105	1,223,097
Total liabilities		3,903,457	3,572,025	997,535	635,250	1,098,211	1,198,172	1,785,639	1,560,126
Net assets		5,126,566	4,715,513	966,515	944,816	2,219,664	1,912,053	19,300	15,597
Equity Equity attributable to unitholders of the parent
Contributed equity	9	1,122,447	1,094,144	705,418	689,280	1,426,528	1,399,806	6,318	5,801
Reserves		(844)	739	(688)	765	1,746	(1,326)
Undistributed income		580,935	524,375	261,985	254,771	587,347	309,510	12,982	9,796
Parent unitholders' interest		1,702,538	1,619,258	966,515	944,816	2,015,621	1,707,990	19,300	15,597
Equity attributable to equity holders of other
entities stapled to DDF (minority interest)
Contributed equity	9	2.138.264	2,094,887
Reserves		858	(561)
Undistributed income		862,314	574,078						٠
Other stapled security holders' interest		3,001,436	2,668,404	۰	$\frac{1}{2}$	٠	$\overline{\phantom{a}}$	$\bullet$
Stapled security holders' interest		4,703,974	4,287,662	966,515	944,816	2,015,621	1,707,990	19,300	15,597
Other minority interest		422,592	427,851		$\blacksquare$	204,043	204,063
Total equity		5,126,566	4,715,513	966,515	944,816	2,219,664	1,912,053	19,300	15,597

The above Balanca 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
STATEMENTS OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

		DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	Notes	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$1000	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$'000
Total equity at the beginning of the period		4,715,513	3,865,713	944.816	766,158	1,912,053	1,647,727	15.597	8,508
Adiastment on adoption of AASB 132 and AASB 139. net of tax:
Undistributed income Exchange differences on translation of foreign operations		(164)	3.443 3,783	(1.652)	719 1,970	3,072	(2, 128) (20)	٠	(455)
Net income recognised directly in equity		(164)	7,226	(1,652)	2,689	3.072	(2, 148)	٠	(455)
Net profit		519.302	346,091	43.152	84,926	344.921	112,946	4,337	3,817
Total recognised income and expense for the period		519.138	353,317	41.510	87,615	347.993	110,798	4.337	3,362
Transactions with equity holders in their capacity as equity holders: Contributions of equity, set of transaction costs Distributions provided for or paid	10	71,680 (159.646)	45.407 ${150,735}$	16,138 (35.949)	9,379 (30, 155)	26.722 (59.511)	20.094 (68,070)	517 (1, 151)	103 ٠
Transactions with other minority interest: Contributions of equity, set of transaction costs Distributions provided for or paid Foreign currency translation reserve	10	3,420 (9,736) (13.803)	2,476 (11, 635) 6,809	٠	٠ ٠	(7, 593)	69 (7,789)
Total transactions with equity holders		(108.085)	(107, 678)	(19.811)	(20, 776)	(40.382)	(55, 696)	(634)	103
Total equity at the end of the period		5,126,566	4,111,352	966.515	822,997	2,219,664	1,702,829	19.300	11,973
Total recognised income and expense for the period is attributable to:
Equity holders of the parent Equity holders of other entities stapled to DDF (minority interest)		118.010 392.308	140.435 202,398	41.510 ٠	87.615	346,460	109,315	4.337 ٠	3,362
Security holders of the parent Other minority interest		510.318 8.820	342,833 10,484	41.510	87,615 ٠	346,460 1.533	109,315 1,483	4.337	3,362
Total recognised income and expense for the period		519.138	353,317	41,510	87,615	347.993	110,798	4.337	3,362

The above Statements of Changes in Equity 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
CASH FLOW STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

DOT Consolidated	DRO Consolidated
$\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ .	. .

	DDF Consolidated		DIT Consolidated			DOT Consolidated		DRO Consolidated
	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Cash flows from operating activities
Receipts in the course of operations (inclusive of GST)	503,118	369.279	57,172	55,401	138,003	126,909	129,690	29.712
Payments in the course of operations (inclusive of GST)	(272, 645)	(143, 513)	(80, 406)	(32, 554)	(48, 717)	(44, 393)	(6, 658)	(431)
Interest received	4,709	5,303	269	131	469	435	2,818	3,871
Finance costs paid to financial institutions	(98, 216)	(86, 673)	(9,729)	(14,753)	(31, 297)	(31, 679)	(24, 580)	(12, 453)
Distributions received	6,150	6.018	11,775	18.110	776	1.102
Dividends received	4,750	1,500					4.750	1,500
Income and withholding taxes paid	(3,441)	(2,449)					(1, 225)
Net cash (decrease)/increase from operating
activities	144,425	149,465	(20.919)	26,335	59,234	52,374	104,795	22,199
Cash flows from investing activities
Proceeds from safe of investment properties	24.059	96	24,059
Proceeds from sale of inventory	3,959
Payments for capital expenditure on investment properties	(67, 264)	(134, 586)	(10, 533)	(18, 286)	(15, 686)	(38,931)		(7, 852)
Payments for investment properties	(322, 649)	(137,023)	(322, 649)			(102, 539)
Payments for investments accounted for using the	(9, 128)	(15, 136)	(1, 374)	(23, 211)			(9, 126)
equity method
Payments for inventories		(3,341)
Payments for property plant and equipment	(67, 481)	(7, 650)	(33, 817)		(27, 451)		(336)
Payments for capital expenditure on property plant and	(54, 205)	(3, 443)	(46, 730)
equipment Proceeds from repayment of third party loan		5.049				5.049
Net cash (outflow)/inflow from investing activities
	(492, 709)	(296, 034)	(391, 044)	(41, 497)	(43, 137)	(136, 421)	(9, 462)	(7, 852)
Cash flows from financing activities
Increase in minority interest	1,634	2,407
Borrowings provided to the Trusts			(61, 767)	(20, 550)	(43, 164)	(25, 250)	(267, 854)	(432, 741)
Borrowings provided by the Trusts			67,659	392,270	169,720	33,415	156,464
Establishment expenses and unit issue costs		(17)		(4)		(7)
Proceeds from borrowings	1,369,995	692.837	491,544	26,939		101,700	745,000	508,000
Repayment of borrowings	(965, 984)	(445,092)	(89, 658)	(355, 659)	(97, 041)		(733,000)	(85,000)
Distributions paid to security holders	(83, 840)	(99, 375)	(14,971)	(30, 232)	(43,511)	(15, 415)		(1,809)
Distributions paid to other minority interests	(9,382)	(8,530)			(7, 239)	(4.223)
Net cash (outflow)/inflow from financing activities
	312,426	142,230	392,807	12,764	(21, 235)	90,220	(99, 390)	(11,550)
Net (decrease)/increase in cash and cash equivalents	(35, 858)	(4, 339)	(19, 156)	(2,398)	(5, 138)	6.173	(4,057)	2.797
Cash and cash equivalents at the beginning of the period	106,428	68,959	31,980	5.577	17.127	9,850	5,814	1,278
Effects of exchange rate changes on cash and cash	121	1,700	2,703	20	63	1
equivalents
Cash and cash equivalents at the end of the period	70,691	66,320	15,527	3,199	12,052	16.024	1,757	4,075

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

Note 1. Summary of significant accounting policies

(a) Basis of preparation

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

The combined Financial Statements have been prepared under ASIC Class Order CO 05/642: Combining Financial Statements 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 result of DDF, which comprises DDF and its controlled entities, DIT and its controlled entities, DOT and its controlled entities and DRO and its controlled entities. Equity attributable to other trusts stapled to DDF is a form of minority interest in accordance with AASB 1002 and, in the DDF consolidated column. represents the equity of DIT, DOT and DRO. Other minority interests represents the equity attributable to parties external to the Group.

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

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

This general purpose interim financial report for the half-year ended 31 December 2006 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(d), 1(g), and 1(k)).

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 Group and each of the Trusts for the year ended 30 June 2006 and any public pronouncements made by the Group during the half-year in accordance with the continuous disclosure requirements of the Corporations Act 2001.

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

(b) Principles of consolidation

Controlled entities

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

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

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

Where control of an entity is obtained during a financial period, its results are included in the Income Statements 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 Group's share of the results and assets of the partnership or joint venture are consolidated into the Income Statements and Balance Sheets of the Group. Where assets are jointly controlled via ownership of units in single purpose unlisted unit trusts or shares in companies, the Group applies equity accounting to record the operations of these investments.

Note 1. Summary of significant accounting policies (continued)

(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) Derivatives and other financial instruments

(i) Derivatives

The Group's activities expose it to changes in interest rates and foreign exchange rates. Accordingly, the Group enters into various derivative financial instruments to manage its exposure to the movements in interest rates and foreign exchange rates. Policies and limits are approved by the Board of Directors of the Responsible Entity in respect of the usage of derivatives and other financial instruments to hedge those cash flows and earnings which are subject to interest rate risks and foreign currency risks respectively. In conjunction with its advisers, the Responsible Entity continually reviews the Group's exposures and updates its treasury policies and procedures. The Group 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 Group has elected not to apply hedge accounting under AASB 139: Financial Instruments: Recognition and Measurement. Accordingly, derivatives including interest rate swaps and foreign exchange contracts, are measured at fair value with any changes in fair value recognised immediately in the Income Statements.

Embedded derivatives

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

(iii) Debt and equity instruments issued by the Group

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

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

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

(iv) Financial Guarantee Contracts

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

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

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

Change in accounting policy

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

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

Note 1. Summary of significant accounting policies (continued)

(e) Taxation

Under current Australian income tax legislation DDF, DIT and DOT are not liable for income tax provided they satisfy the requirements of the Australian Taxation Office. However, DRO as a trading trust, is liable for tax 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 Group from DB RREEF Industrial Properties Inc ("US REIT") is 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 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.

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

DB RREEF GLOG Trust, a wholly owned Australian sub trust of DIT, is liable for German income tax on its German-sourced income at the rate of 26.375%. In addition a deferred tax liability or asset and its related deferred tax expense / benefit is recognised on differences between the tax cost base of the German assets and their accounting carrying value at balance date.

(f) Distributions

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

Note 1. Summary of significant accounting policies (continued)

(g) 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 valuation of investment properties is fair value being the amount for which the assets could be exchanged between knowledgeable willing parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition and subject to similar leases. Where this is not available, an appropriate valuation method is used, which may include the discounted cashflow and the capitalisation method. Discount rates and capitalisation rates are determined based on industry expertise and knowledge, and where possible a direct comparison to third party rates for similar assets in a comparable location. Rental income from current leases and assumptions about future leases, as well as any expected operational cash outflows in relation to the property, are also reflected in fair value.

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

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

Subsequent redevelopment and refurbishment costs (other than repairs and maintenance) are capitalised to the investment property where they result in an enhancement in the future economic benefits of the property.

Held for sale investment properties

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

(h) 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 Group 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 Financial Statements.

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

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

(i) 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(j)). If the cost is less than the fair value of the net assets acquired, the difference is recognised directly in the Income Statements.

Where settlement of any part of the 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.

(i) Goodwill

Where a business 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 Sheets. The carrying value of the goodwill is tested for impairment annually, or more frequently if events or circumstances indicate that it may be impaired, with any decrement in value taken to the Income Statements as an expense.

Note 1. Summary of significant accounting policies (continued)

(k) Fair value estimation of financial assets and liabilites

The fair value of financial assets and financial liabilities are 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 prices at the balance sheet date. The quoted market price used for financial assets held by the Group is the bid price. The appropriate quoted market price for financial liabilities is the 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.

(I) 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.

(m) Earnings per unit

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

(n) Foreign currency

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

(ii) Foreign operations

Foreign operations are located in the United States of America ("US"), France, Germany and New Zealand ("NZ"). These operations have functional currencies of US Dollars, Euro and NZ Dollars, 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.

(o) Segment reporting

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

(p) Rounding of amounts

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

Note 2. Investment properties

(a) Held for sale investment properties

DIT	Ownership	Acquisition date	Cost including all additions \$'000	independent valuation date	Independent valuation amount \$'000	Independent valuer	Consolidated book value 31 December 2006 \$'000	Consolidated book value 30 June 2006 \$'000
121 Evans Road, Salisbury, QLD 706 Mowbray Road, Lane Cove, NSW	100% 100%	Jun 1997 Sep 1997	n/a 22,874	n/a Jun 2006	n/a 26,200	n/a (e)	26,484	24,000 $\sim$
Total DIT held for sale investment properties			22,874		26,200		26,484	24,000
DOT
The Zenith, 821-843 Pacific Highway, Chatswood, NSW	50%	Dec 1998	97,294	Jun 2004	108,000	(d)	125,000
Total DOT held for sale investment properties			97,294		108,000		125,000
Total held for sale investment properties			120.168		134,200		151,484	24,000

(b) Properties

DIT
	Ownership	Acquisition	Cost	independent	Independent	Independent	Consolidated	Consolidated
		date	including all	valuation	valuation	valuer	book value	book value
			additions	date	amount		31 December 2006	30 June 2006
			\$'000		\$000		\$'000	\$'000
52 Holbeche Road, Arndell Park, NSW	100%	Jul 1998	11,297	Dec 2005	12,500	(d)	13,200	12,500
79-99 St Hilliers Road, Auburn, NSW	100%	Sep 1997	36,740	Jun 2005	41,000	(d)	43,776	41,749
3 Brookhollow Avenue, Baulkham Hills, NSW	100%	Dec 2002	43,890	Dec 2005	42,400	$(f)$	43,970	43,251
1 Garigal Road, Belrose, NSW	100%	Dec 1998	23,340	Dec 2004	27,400	(a)	31.900	31,900
2 Minna Close, Beirose, NSW	100%	Dec 1998	34,246	Dec 2004	32,400	(a)	33,810	33,707
3-7 Bessemer Street, Blacktown, NSW	100%	Jun 1997	11,139	Sep 2006	10,250	(d)	10,297	10,209
30-32 Bessemer Street, Blacktown, NSW	100%	May 1997	11,944	Jun 2006	17,850	$\langle f \rangle$	17.951	17,850
114-120 Old Pittwater Road, Brookvale, NSW	100%	Sep 1997	33,944	Jun 2006	45,500	$\langle f \rangle$	47.300	46,500
145-151 Arthur Street, Flemington, NSW	100%	Sep 1997	24,329	Jun 2005	31,000	$\langle f \rangle$	34,293	34,135
436-484 Victoria Road, Gladesville, NSW	100%	Sep 1997	28,291	Dec 2004	43,000	(d)	48.852	48,500
1 Foundation Place, Greystanes, NSW	100%	Dec 2002	39,162	Jun 2006	46,000	(e)	48,000	46,000
27-29 Liberty Road, Huntingwood, NSW	100%	Jul 1998	8,140	Jun 2006	9,000	(e)	9,169	9,000
706 Mowbray Road, Lane Cove, NSW	100%	Sep 1997	n/a	n/a	n/a			26,200
11 Talavera Road, North Ryde, NSW	100%	Jun 2002	133,506	Jun 2006	145,500	(d)	146.001	145,500
154 O'Riordan Street, Mascot, NSW	100%	Jun 1997	10,973	Dec 2006	16,000	(a)	16,000	14,600
1-15 Rosebery Avenue &	100%	Apr 1998	71,226	Dec 2005	92,800	${\sharp}$	93,879	93,158
1-55 Rothschild Avenue, Rosebery, NSW		& Oct 2001
10-16 South Street, Rydalmere, NSW	100%	Sep 1997	36,175	Dec 2006	47,000	$^{(f)}$	47,000	44,682
DB RREEF Industrial Estate, Egerton Street, Silverwater, NSW	100%	May 1997	36,418	Dec 2005	42,000	(行)	47,400	43,900
19 Chifley Street, Smithfield, NSW	100%	Dec 1998	12,010	Dec 2005	17,200	$\left( a\right)$	17.689	17,499
239-251 Woodpark Road, Smithfield, NSW	100%	May 1997	5,101	Jun 2006	6,450	(f)	6,494	6,450
40 Biloela Street, Villawood, NSW	100%	Jul 1997	6,826	Jun 2006	8,750	(a)	8,775	8,750
27-33 Frank Street, Wetherill Park, NSW	100%	Jul 1998	15,270	Jun 2006	13,200	$\left( a\right)$	13,349	13,200
114 Fairbank Road, Clayton, VIC	100%	Jul 1997	10,601	งีนก 2006	12,800	$\langle c \rangle$	12,800	12,800
Pound Road West, Dandenong, VIC	100%	Jan 2004	60,146	Jun 2005	56,250	$\langle c \rangle$	58,000	58,000
352 Macaulay Road, Kensington, VIC	100%	Oct 1998	7,614	Dec 2005	8,900	(g)	8,903	8,900

The title to all properties is freehold.

Note 2. Investment properties (continued)

(b) Properties (continued)

DIT (continued)

	Ownership	Acquisition date	Cost including all additions \$'000	Independent valuation date	Independent valuation amount \$'000	Independent valuer	Consolidated book value 31 December 2006 \$'000	Consolidated book value 30 June 2006 \$'000
250 Forest Road, South Lara, VIC	100%	Dec 2002	33,757	Jun 2005	34,600	(e)	40,900	40,900
DB RREEF Industrial Estate, Boundary Road, Laverton North, VIC	100%	Jul 2002	21,980	Jun 2004	23,700	(c)	24,500	17,500
30 Bellrick Street, Acacia Ridge, QLD	100%	Jun 1997	13,166	Dec 2005	17,375	(e)	18,700	18,700
25 Donkin Street South, West End, Brisbane, QLD	100%	Dec 1998	19,207	Jun 2005	20,700	(e)	25,900	23,614
15-23 Whicker Road, Gillman, SA	100%	Dec 2002	19,783	Dec 2006	25,500	(d)	25,500	24,600
68 Hasler Road, Herdsman, WA	100%	Jul 1998	9,721	Dec 2006	9,750	$\langle f \rangle$	9,750	9,500
Zone Industrial Epone II, Epone	100%	Jul 2006	12,755	May 2006	12,025	(h)	12,755
19 rue de Bretagne, Saint-Quentin Fallavier	100%	Jul 2006	23,004	May 2006	21,690	(h)	23,004
21 rue du Chemin Blanc, Champlan	100%	Jul 2006	22,846	May 2006	21,540	(h)	22,846
32 avenue de l'Oceanie, Villejust	100%	Jul 2006	17,295	May 2006	16,093	(h)	17,295	$\sim$
RN 19 ZAC de L'Ormes Road, Servon (1)	100%	Jul 2006	32,106	May 2006	30,722	(h)	32,106
RN 19 ZAC de L'Ormes Road, Servon (2)	100%	Jul 2006	11,016	May 2006	10,745	(h)	11,016	$\sim$
Im Holderbusch 3, Industriestraße, Sulmstraße, Ellhofen-Weinsberg	100%	Dec 2006	26,578	Dec 2006	25,133	(d)	26,578
Schillerstraße 51, Ellhofen	100%	Dec 2006	22,015	Dec 2006	20,825	(d)	22,015	$\sim$
Schillerstraße 42, 42a, Bahnhofstraße 44, 50, Ellhofen	100%	Dec 2006	13,823	Dec 2006	13,073	(d)	13,823
Im Gewerbegebiet 18, Friedewald	100%	Dec 2006	8.915	Dec 2006	8,433	(d)	8,915
Im Steinbruch 4, 6, Knetzgau	100%	Dec 2006	17,482	Dec 2006	16,534	(d)	17,482	$\sim$
Carl-Leverkus-Straße 3-5, Winkelsweg 182-184, Langenfeld	100%	Dec 2006	17,504	Dec 2006	16,417	(d)	17,504
Schneiderstraße 82, Langenfeld 3	100%	Dec 2006	10,040	Dec 2006	9,497	(d)	10,040	$\sim$
Über der Dingelstelle, Langenweddingen	100%	Dec 2006	12,714	Dec 2006	12,026	(d)	12,714
Nordstraße 1, Löbau	100%	Dec 2006	2,147	Dec 2006	2,029	(d)	2,147	$\sim$
Former Straße 6, Unna	100%	Dec 2006	29,086	Dec 2006	27,512	(d)	29,086
Niedesheimer Straße 24, Worms	100%	Dec 2006	6,910	Dec 2006	6,637	(d)	6,910	$\sim$
Liverpooler-/ Kopenhagener-/ Osloer Straße, Duisburg	100%	Dec 2006	34,189	Dec 2006	32,335	(d)	34,189
Bremer Ring, Hansestraße, Berlin-Wustermark	100%	Dec 2006	18,629	Dec 2006	17,615	(d)	18,629	$\overline{\phantom{a}}$
Total DIT investment properties - non-current			1,168,996		1,277,556		1,343,112	1,002,754
DOT
GPT/GMT Complex and Terraces, 1 Farrer Place, Sydney, NSW	50%	Dec 1998	474,665	Dec 2006	638,750	$\langle f \rangle$	638,750	576,000
45 Clarence Street, Sydney, NSW	100%	Dec 1998	221,714	Jun 2005	195,000	$\langle i \rangle$	245,000	228,000
309-321 Kent Street, Sydney, NSW	50%	Dec 1998	168,020	Dec 2006	183,500	(a)	183,500	165,000
One Margaret Street, Sydney, NSW	100%	Dec 1998	142,758	Jun 2005	139,000	$\langle c \rangle$	170,000	152,000
Victoria Cross, 60 Miller Street, North Sydney, NSW	100%	Dec 1998	90,086	Dec 2005	90,000	(3)	102,000	96,000
The Zenith, 821-843 Pacific Highway, Chatswood, NSW	100%	Dec 1998	97,294	Jun 2004	108,000	(d)	125,000	217,000
Woodside Plaza, 240 St George's Terrace, Perth, WA	100%	Jan 2001	240,751	Jun 2006	315,000	(c)	350,000	315,000
30 The Bond, 30-34 Hickson Road, Sydney, NSW	100%	May 2002	118,100	Jun 2006	150,000	(e)	170,000	150,000
Southgate Complex, 3 Southgate Avenue, Southbank, VIC	100%	Aug 2000	353,558	Jun 2005	361,000	$\left( 9\right)$	390,794	390,000
O'Connell House, 15-19 Bent Street, Sydney, NSW	100%	Aug 2000	49,365	Sep 2004	55,500	(e)	54,448	54,400
201-217 Elizabeth Street, Sydney, NSW	50%	Aug 2000	113,439	Dec 2004	117,000	(e)	142,000	122,000
Garema Court, 140-180 City Walk, Civic, ACT**	100%	Aug 2000	43,665	Jun 2006	52,000	$\langle f \rangle$	52,285	52,000
Australia Square Complex, 264-278 George St, Sydney, NSW	50%	Aug 2000	205,243	Jun 2005	184,000	(d)	260,000	226,000
Lumley Centre, 88 Shortland St, Auckland, New Zealand	100%	Sep 2005	102,609	Dec 2006	121,255	(d)	121,255	101,173
Total DOT investment properties - non-current			2,421,267		2.710,005		3,005,032	2,842,573

Note 2. Investment properties (continued)

(b) Properties (continued)

Other consolidated investment properties - non-current

	Ownership	Acquisition date	Cost including all additions \$'000	independent valuation date	Independent valuation amount \$7000	Independent valaer	Consolidated book value 31 December 2006 \$'000	Consolidated book value 30 June 2006 \$'000
Kings Park Industrial Estate, Bowmans Road, Marayong, NSW	100%	May 1990	79,215	Jun 2006	93,000	份	94,021	93,000
Target Distribution Centre, Taras Road, Altona North, VIC	100%	Oct 1995	25,430	Jun 2005	35,000	(c)	36,500	36,500
Axxess Corporate Park, 164-180 Forster Road, 11 & 21-45 Gilby Road,	100%	Oct 1996	155,670	Dec 2005	147,750	(f)	176,000	170,000
307-355 Ferntree Gully Road, Mount Waverley, VIC
Knoxfield Industrial Estate, Henderson Road, Knoxfield, VIC	100%	Aug 1996	30,154	Jun 2006	37,050	(行)	37,065	37,050
12 Frederick Street, St Leonards, NSW	100%	Jul 2000	25,528	Jun 2005	31,500	(a)	35,791	35,700
40-50 Talavera Road, North Ryde, NSW	100%	Oct 2002	33,097	Dec 2006	31,200	(d)	31,200	32,500
2 Alspec Place, Eastern Creek NSW	100%	Mar 2004	23,557	Dec 2006	26,000	(a)	26,000	23,555
Redwood Gardens Industrial Estate Stages 3,5,6 & 7 and Lot 4, Dingley, VIC	76%	Dec 1994	23,649	Jun 2006	28,850	(e)	28,900	28,850
44 Market Street, Sydney, NSW	100%	Sep 1987	168,759	Jun 2006	185,000	(f)	187,721	185,000
8 Nicholson Street, Melbourne, VIC	100%	Nov 1993	69,421	Jun 2005	91,800	(g)	98,000	98,000
130 George Street, Parramatta, NSW	100%	May 1997	98,978	Jun 2006	80,000	(d)	86,000	80,000
Flinders Gate Complex, 172 Flinders Street and 189 Flinders Lane, Melbourne, VIC	100%	Mar 1999	13,830	Jun 2006	18,000	(d)	18,081	18,000
383-395 Kent Street, Sydney, NSW	100%	Sep 1987	105,412	Jun 2006	115,000	(d)	120,000	115,000
14 Moore Street, Canberra, ACT **	100%	May 2002	37,317	Apr 2005	36,250	(e)	40,000	38,000
Sydney CBD Floor Space®	100%	Jul 2000	n/a	n/a			2,173	2,173
Westfield Whitford City Shopping Centre Marmion & Whitfords Avenue, Hillarys, WA 3	50%	Oct 1984	129,369	Dec 2005	200,000	$\langle f \rangle$	240,500	221,500
Westfield Whitford Avenue Lot 6 Endeavour Road, Hillarys, WA 3	50%	Dec 1992	5,506	Dec 2005	10,000	(钋	12,000	11,000
West Lakes Shopping Centre, West Lakes, SA	50%	Nov 1998	118,714	Dec 2005	131,000	(a)	150,000	143,000
Plenty Valley Town Centre, 330-464 McDonald's Road, South Morang, VIC ®	50%	Nov 1999	21,366	Jun 2004	17,835	$\langle c \rangle$	20,800	20,200
Westfield North Lakes Shopping Centre, Cnr Anzac Avenue and Northlakes Drive, Mango Hill, QLD 3	50%	Aug 2004	76,344	Jun 2004	60,250	$\langle c \rangle$	102,000	77,176
Albert & Charlotte Streets Carpark, Brisbane, QLD	100%	Oct 1984	14,275	Jun 2006	38,500	(e)	38,991	38,500
34-60 Little Collins Street, Melbourne, VIC **	100%	Nov 1984	16,164	Jun 2006	37,500	(d)	37,500	37,500
32-44 Flinders Street, Melbourne, VIC	100%	Jun 1998	21,319	Jun 2006	32,500	(d)	32,581	32,500
Flinders Gate Carpark, Melbourne, VIC	100%	Mar 1999	47,043	Jun 2006	39,000	(d)	39,000	39,000
383-395 Kent Street Carpark, Sydney, NSW	100%	Sep 1987	30,257	Jun 2006	60,000	(d)	60,000	60,000
John Martin's Carpark & Retail Plaza Joint Venture, Adelaide, SA	1%	Sep 1994					100	100
Westfield Hurstville, 262-264 Forest Road and 292 Forest Road. Hurstville, NSW	50%	May 2005	246,386	Dec 2006	268,000	(d)	268,000	260,000
3765 Atlanta Industrial Drive, Atlanta	80%	Sep 2004	6,344	Jun 2006	4,832	$\langle c \rangle$	4,969	4,978
7100 Highlands Parkway, Atlanta	80%	Sep 2004	17,665	Jun 2006	17,827	(c)	17,673	18,835
Town Park Drive, Atlanta	80%	Sep 2004	8,320	Jun 2006	10,104	$\langle c \rangle$	9,996	10,628
Williams Drive, Atlanta	80%	Sep 2004	12,379	Jun 2006	12,329	$\langle c \rangle$	12,780	13,302
Stone Mountain, Atlanta	80%	Sep 2004	8,974	Jun 2006	6,321	$\langle c \rangle$	6,323	6,592
MD Food Park, Baltimore	80%	Sep 2004	23,536	Jun 2006	29,445	$\langle c \rangle$	31,750	33,799
West Nursery, Baltimore	80%	Sep 2004	9,663	Jun 2006	10,580	$\langle c \rangle$	11,448	11,570
Cabot Techs, Baltimore	80%	Sep 2004	26,332	Jun 2006	35,498	$\langle c \rangle$	35,146	37,401
9112 Guildford Road, Baltimore	80%	Sep 2004	10,268	Jun 2006	12,637	$\langle c \rangle$	12,672	13,454
8155 Stayton Drive, Baltimore	80%	Sep 2004	8,770	Jun 2006	10,234	(c)	9,997	10,628
Patuxent Range Road, Baltimore	80%	Sep 2004	14,510	Jun 2006	16,509	$\langle c \rangle$	16,293	17,355
Bristol Court, Baltimore	80%	Sep 2004	12,817	Jun 2006	14,295	(c)	15,237	15,945
NE Baltimore, Baltimore	80%	Sep 2004	9,344	Jun 2006	10,808	$\langle c \rangle$	10,868	11,301
1181 Portal, 1831 Portal and 6615 Tributary, Baltimore (Fort Holabird)	80%	Jun 2005	13,237	Jun 2006	14,154	(c)	14,472	15,355
Kenwood Circle, Boston	80%	Sep 2004	13,500	Jun 2006	14,214	$\langle c \rangle$	14,021	14,933
Commerce Park, Charlotte	80%	Sep 2004	8,829	Jun 2006	9,329	$\langle c \rangle$	9,197	9,754
9900 Brookford Street, Charlotte	80%	Sep 2004	4,797	Jun 2006	4,910	$\langle c \rangle$	4,728	5,045
Westinghouse, Charlotte	80%	Sep 2004	24,479	Jun 2006	23,519	$\langle c \rangle$	25,195	26,267

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

²The 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.

Note 2. Investment properties (continued)

(b) Properties (continued)

Other consolidated investment properties - non-current (continued)

	Ownership	Acquisition date	Cost including all additions \$'000	Independent valuation date	Independent valuation amount \$'000	Independent valuer	Consolidated book value 31 December 2006 \$'000	Consolidated book value 30 June 2006 \$'000
Airport Exchange, Cincinnati	80%	Sep 2004	4,908	Jun 2006	4,804	$\langle c \rangle$	4,644	4,978
Empire Drive, Cincinnati	80%	Sep 2004	6,926	Jun 2006	7,639	$\langle c \rangle$	8,035	8,486
International Way, Cincinnati	80%	Sep 2004	13,018	Jun 2006	13,762	$\langle c \rangle$	13,724	14,463
Kentucky Drive, Cincinnati	80%	Sep 2004	13,820	Jun 2006	15,570	$\langle c \rangle$	15,247	16,279
Spiral Drive, Cincinnati	80%	Sep 2004	7,406	Jun 2006	5,776	$\langle c \rangle$	6,380	6,054
Turfway Road, Cincinnati	80%	Sep 2004	6,388	Jun 2006	6,129	$\langle c \rangle$	6,356	6,390
124 Commerce, Cincinnati	80%	Sep 2004	2,858	Jun 2006	3,159	$\langle c \rangle$	3,160	3,363
Kenwood Road, Cincinnati	80%	Sep 2004	22,821	Jun 2006	21,449	$\langle c \rangle$	21,717	22,723
Lake Forest Drive, Cincinnati	80%	Sep 2004	15,155	Jun 2006	15,826	$\langle c \rangle$	15,566	16,548
World Park, Cincinnati	80%	Sep 2004	16,097	Jun 2006	14,475	$\langle c \rangle$	15,241	15,337
Equity/Westbelt/Dividend, Columbus	80%	Sep 2004	44,780	Jun 2006	47,609	$\langle c \rangle$	47,845	50,081
2700 International Street, Columbus	80%	Sep 2004	5,356	Jun 2006	5,107	(c)	5,489	5,281
3800 Twin Creeks Drive, Columbus	80%	Sep 2004	5,866	Jun 2006	6,461	$\langle c \rangle$	6,422	6,794
SE Columbus, Columbus	80%	Sep 2004	16,319	Jun 2006	15,328	$\langle c \rangle$	15,395	16,279
Arlington, Dallas	80%	Sep 2004	11,105	Jun 2006	11,811	$\langle c \rangle$	11,511	12,243
1900 Diplomat Drive, Dallas	80%	Sep 2004	5,645	Jun 2006	5,862	$\langle c \rangle$	6,024	6,189
2055 Diplomat Drive, Dallas	80%	Sep 2004	4,553	Jun 2006	4,662	$\langle c \rangle$	4,851	4,843
1413 Bradley Lane, Dallas	80%	Sep 2004	3,910	Jun 2006	3,676	$\langle c \rangle$	3,576	3,807
North Lake, Dallas	80% 80%	Sep 2004	12,082	Jun 2006 Jun 2006	16,456	$\langle c \rangle$	16,404	17,355 9,296
555 Airline Drive, Dallas 455 Airline Drive, Dallas	80%	Sep 2004	7,988 3,925	Jun 2006	8,321 4,831	$\langle c \rangle$	8,874 4,802	5,112
Hillguard, Dallas	80%	Sep 2004 Sep 2004	10,609	Jun 2006	11,146	$\langle c \rangle$ $\langle c \rangle$	11,519	12,088
11011 Regency Crest Drive, Dallas	80%	Sep 2004	8,345	Jun 2006	7,330	$\langle c \rangle$	8,551	9,046
East Collins, Dallas	80%	Sep 2004	4,526	Jun 2006	4,882	$\langle c \rangle$	4,713	4,978
3601 East Plano/1000 Shiloh, Dallas	80%	Sep 2004	15,594	Jun 2006	17,995	$\langle c \rangle$	18,290	20,030
East Plano Parkway, Dallas	80%	Sep 2004	26,138	Jun 2006	27,031	$\langle c \rangle$	27,102	28,387
820-860 Avenue F, Dallas	80%	Sep 2004	8,326	Jun 2006	9,198	$\langle c \rangle$	9,196	9,687
10th Street, Dallas	80%	Sep 2004	11,515	Jun 2006	12,299	$\langle c \rangle$	12,611	13,304
Capital Avenue Dallas	80%	Sep 2004	7,068	Jun 2006	7,236	$\langle c \rangle$	7,141	7,601
CTC @ Valwood, Dallas	80%	Sep 2004	4,260	Jun 2006	5,900	$\langle c \rangle$	5,704	6,054
Brackbill, Harrisburg	80%	Sep 2004	26,564	Jun 2006	31,688	$\langle c \rangle$	31,588	33,634
Mechanicsburg, Harrisburg	80%	Sep 2004	22,564	Jun 2006	24,434	$\langle c \rangle$	24,643	26,696
181 Fulling Mill Road, Harrisburg	80%	Sep 2004	11,215	Jun 2006	11,415	$\langle c \rangle$	11,557	12,108
Glendale, Los Angeles	80%	Sep 2004	63,177	Jun 2006	78,984	$\langle c \rangle$	82,079	86,725
14489 Industry Circle, Los Angeles	80%	Sep 2004	8,648	Jun 2006	12,226	$\langle c \rangle$	12,195	12,983
14555 Alondra/6530 Altura, Los Angeles	80%	Sep 2004	21,832	Jun 2006	29,755	$\langle c \rangle$	29,445	31,347
San Fernando Valley, Los Angeles	80%	Sep 2004	18,373	Jun 2006	24,903	$\langle c \rangle$	24,642	26,234
Memphis Industrial, Memphis	80%	Sep 2004	11,846	Jun 2006	12,173	$\langle c \rangle$	12,349	12,915
2950 Lexington Avenue S, Minneapolis	80% 80%	Sep 2004	11,196	Jun 2006 Jun 2006	11,626	$\langle c \rangle$	12,551 28,812	13,363
Mounds View, Minneapolis 6105 Trenton Lane, Minneapolis	80%	Sep 2004 Sep 2004	25,838 9,398	Jun 2006	27,421 10,110	$\langle c \rangle$	10,114	29,173 10,763
8575 Monticello Lane, Minneapolis	80%	Sep 2004	2,194	Jun 2006	2,962	$\langle c \rangle$ $\langle c \rangle$	2,909	3,094
7401 Cahill Road, Minneapolis	80%	Sep 2004	4,071	Jun 2006	3,847	$\langle c \rangle$	3,819	4,036
CTC @ Dulles, Northern Virginia	80%	Sep 2004	30,983	Jun 2006	37,912	$\langle c \rangle$	37,942	40,361
Alexandria, Northern Virginia	80%	Sep 2004	56,419	Jun 2006	68,617	$\langle c \rangle$	69,902	74,181
Nokes Boulevard, Northern Virginia	80%	Sep 2004	25,390	Jun 2006	36,649	$\langle c \rangle$	36,661	39,015
Guildford, Northern Virginia	80%	Sep 2004	21,785	Jun 2006	32,015	$\langle c \rangle$	32,052	33,634
Beaumeade Telecom, Northern Virginia (Kenwood)	80%	Sep 2004	40,315	Jun 2006	52,377	(c)	52,000	55,159

Note 2. Investment properties (continued)

(b) Properties (continued)

Other consolidated investment properties - non-current (continued)

	Ownership	Acquisition date	Cost including all additions \$'000	Independent valuation date	Independent valuation amount \$'000	Independent valuer	Consolidated book value 31 December 2006 \$'000	Consolidated book value 30 June 2006 \$'000
Orlando Central Park, Orlando	80%	Sep 2004	73,896	Jun 2006	86,942	$\langle c \rangle$	87,754	91,484
7500 Exchange Drive, Orlando	80%	Sep 2004	6,882	Jun 2006	7,962	$\langle c \rangle$	7,977	8,476
105-107 South 41st Avenue, Phoenix	80%	Sep 2004	17.171	Jun 2006	22,549	$\langle c \rangle$	22.642	24,115
1429-1439 South 40th Avenue, Phoenix	80%	Sep 2004	11,226	Jun 2006	15,247	$\langle c \rangle$	15,321	16,144
10397 West Van Buren St., Phoenix	80%	Sep 2004	9,021	Jun 2006	17,362	$\langle c \rangle$	16,722	17,624
844 44th Avenue, Phoenix	80%	Sep 2004	7,526	Jun 2006	10,236	$\langle c \rangle$	10,300	10,897
220 South 9th Street, Phoenix	80%	Sep 2004	8,011	Jun 2006	10,980	$\langle c \rangle$	10,912	11,570
431 North 47th Avenue, Phoenix	80%	Sep 2004	7,455	Jun 2006	9,786	$\langle c \rangle$	9,865	10,359
601 South 55th Avenue, Phoenix	80%	Sep 2004	5,278	Jun 2006	6,824	$\langle c \rangle$	6,831	7,265
1000 South Priest Drive, Phoenix	80%	Sep 2004	5,877	Jun 2006	7,604	$\langle c \rangle$	7,521	8,072
1120-1150 W. Alameda Drive, Phoenix	80%	Sep 2004	9,550	Jun 2006	11,031	$\langle c \rangle$	11,197	11,570
1858 East Encanto Drive, Phoenix	80%	Sep 2004	5,046	Jun 2006	7,015	$\langle c \rangle$	6,803	7,265
3802-3922 East University Drive, Phoenix	80%	Sep 2004	11,618	Jun 2006	12,712	$\langle c \rangle$	12,999	13,739
Chino, Riverside	80%	Sep 2004	7,406	Jun 2006	11,350	$\langle c \rangle$	11,250	11,974
Mira Loma, Riverside	80%	Sep 2004	12,893	Jun 2006 Jun 2006	26,007	$\langle c \rangle$	25,643	27,311
Ontario, Riverside 4190 East Santa Ana Street, Riverside	80% 80%	Sep 2004 Sep 2004	36,205 6,014	Jun 2006	58,679 10,155	$\langle c \rangle$	58,287 10,193	61,886 10,763
Rancho Cucamonga, Riverside	80%	Sep 2004	27,159	Jun 2006	44,992	$\langle c \rangle$ $\langle c \rangle$	44,672	47,491
12000 Jersey Court, Riverside	80%	Sep 2004	5,269	Jun 2006	9,300	$\langle c \rangle$	8,931	9,518
Airway Road, San Diego	80%	Sep 2004	11,699	Jun 2006	16,029	$\langle c \rangle$	15,870	16,817
5823 Newton Drive, San Diego	80%	Sep 2004	20,746	Jun 2006	28,434	$\langle c \rangle$	28,434	30,270
2210 Oak Ridge Way, San Diego	80%	Sep 2004	6,332	Jun 2006	8,467	$\langle c \rangle$	8,474	9,014
Kent West. Seattle	80%	Sep 2004	33,836	Jun 2006	38,213	$\langle c \rangle$	39,147	40,901
26507 79th Avenue - South. Seattle	80%	Sep 2004	3,291	Jun 2006	3,837	$\langle c \rangle$	3,772	4,036
8005 S. 266th Street, Seattle	80%	Sep 2004	8,727	Jun 2006	10,001	$\langle c \rangle$	9,868	10,494
West Palm Beach, South Florida	80%	Sep 2004	26,649	Jun 2006	30,769	$\langle c \rangle$	30,439	32,356
Calvert/Murry's, Northern Virginia	80%	Sep 2004	6,683	Jun 2006	7,042	$\langle c \rangle$	7,008	7,399
7700 68th Avenue, Brooklyn Park, Minnesota	100%	Nov 2005	6,961	Nov 2005	6,734	(c)	6,539	6,949
7500 West 78th Street, Bloomington, Minnesota	100%	Nov 2005	5,976	Nov 2005	7,982	(c)	7,972	8,429
1285 & 1301 Corporate Center Drive, 1230 & 1270 Eagan Industrial Road, Eagan, Minnesota	100%	Nov 2005	20,108	Nov 2005	19,029	$\langle c \rangle$	19,766	20,987
Total other consolidated investment properties - non-current			3,014,149		3.522,424		3,706,148	3,713,618
Total investment properties - non-current			6,604,412		7.609.985		8.054.292	7,558,945

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

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

Note 2. Investment properties (continued)

(b) Properties

DB RREEF Diversified Trust

Developments

105 Phillip St. Parramatta

Approval has been received to construct a thirteen level office tower with approximately 19,400 som of floorspace at 105 Philip St, Parramatta, a site at the rear of the existing building at 130 George St, Parramatta. This project will commence when adequate tenant pre-commitments have been secured.

North Lakes Shopping Centre

In December 2006 construction began on the expansion of North Lakes Shopping Centre with an estimated project cost of \$85.2 million (50% share). The redevelopment of North Lakes is scheduled to be completed by the end of October 2007 with any residual leasing to be completed within the subsequent 6 months.

DB RREEF Industrial Trust

Acquisitions

Prologis France | SAS

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

Prologis France XXXII EURL

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

DB RREEF GLOG Trust

On 31 December 2006, DIT via a newly created sub-trust, DB RREEF GLOG Trust, acquired 13 properties located in Germany for \$208.0 million (€125.1 million). While, registration of the transfer of title with the Land Registr has not yet occured, DB RREEF GLOG Trust has possession and beneficial title to the properties. DB RREEF GLOG Trust anticipates legal transfer of title taking place by March 2007. The seller, IVG, has indemnified DB RREEF GLOG Trust through the provision of a bank guarantee equivalent to the purchase price should the transfer of title not proceed. Management expect the transfer of title to occur as a matter of course.

Disposals

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

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

Developments

Boundary Road, North Laverton, VIC In February 2006, DIT entered into an agreement to lease and build a warehouse and distribution facility for Wrightson Seeds Australia Limited. Practical completion was achieved on 31 October 2006 with a development cost o

DB RREEF Office Trust

Disposals

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

Note 2. Investment properties (continued)

(c) Reconciliation

	DDF Consolidated		DIT Consolidated		DOT Consolidated
	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Carrying amount at the beginning of the period	7.558.945	6,520,919	1.002.754	936,284	2,842,573	2,449,051
Additions	44,864	115,038	7.504	10.736	3.052	19,656
Acquisitions	338,827	155,793	338,827			102,599
Transfer from property, plant and equipment	6,089		6.089			.
Transfer to held for sale investment properties	(151, 484)	(24,000)	(26, 484)	(24,000)	(125,000)
Lease incentives	27,703	87,943	2,554	3,805	13,175	51,968
Amortisation of lease incentives	(17, 638)	(26, 443)	(1, 359)	(1,863)	(10, 350)	(16, 857)
Rent straightlining	5,208	14,484			3,734	9.077
Disposals		(B, 277)		(8,277)
Net gain from fair value adjustments	341,238	695,666	13,227	86,069	269,343	236,665
Foreign exchange differences on foreign currency translation	(99, 460)	27,822			8,505	(10,586)
Carrying amount at the end of the period	8,054,292	7,558,945	1,343,112	1.002,754	3,005,032	2,842,573

Note 3. Inventories

	DDF Consolidated
	31 Dec 2006 \$'000	30 Jun 2006 \$'000
Land and buildings	$\bullet$	3.344
Total inventories at lower of cost and net realisable value	۰	3.344

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

Note 4. Loans and receivables

	DDF Consolidated		DRO Consolidated
	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000
Loan notes receivable from DB RREEF Holdings Pty Limited	51.936	45.092	51.936	45.092
Total loans and receivables	51.936	45.092	51.936	45.092

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

Note 5. Property plant and equipment

(a) Property plant and equipment

	DDF Consolidated			DIT Consolidated			DOT Consolidated			DRO Consolidated
31 Dec 2006	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	Construction in progress \$'000	Land and freehold buildings \$'000	Total \$'000
Opening balance as at 1 July 2006	104.190	69,278	173,46B	67,544	12,806	80,350	$\mathbf{r}$				56,472	56,472
Additions	66,115	63.951	130,066	50,461	33,817	84,278	$\mathbf{r}$	27,451	27.451		2.683	2,683
Foreign exchange differences on foreign currency transfation	(2, 222)		(2, 222)		$\mathbf{r}$		$\mathbf{r}$					$\blacksquare$
Depreciation charge		(1, 389)	(1, 389)		$\mathbf{r}$		$\mathbf{r}$				(1, 389)	(1, 389)
Transfer from property plant and equipment	(6,089)		(6,089)	(6,089)	$\mathbf{r}$	(6,089)	$\mathbf{r}$	$\mathbf{r}$
Closing balance as at 31 December 2006	161,994	131,840	293,834	111,916	46,623	158,539		27,451	27,451		57.766	57,766
Cost	161,994	134,252	296,246	111,916	46,623	158,539	$\mathbf{r}$	27,451	27,451		60,178	60,178
Accumulated depreciation		(2, 412)	(2, 412)	$\mathbf{r}$	$\mathbf{r}$		$\mathbf{r}$	$\mathbf{r}$			(2, 412)	(2, 412)
Closing balance as at 31 December 2006	161,994	131,840	293,834	111,916	46,623	158,539		27,451	27,451		57,766	57,766

		DDF Consolidated			DIT Consolidated			DOT Consolidated			DRO Consolidated
	30 Jun 2006	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	Construction in progress \$'000	Land and freehold buildings \$'000	Total \$'000
Opening balance as at 1 July 2005.		15,107	12,806	27,913	15,107	12,806	27,913					$\overline{\phantom{0}}$
Additions		89,083	57.495	146.578	52,437	$\sim$	52.437				$\sim$	57.495	57,495
Depreciation charge			(1,023)	(3,023)								(1,023)	(1,023)
Closing balance as at 30 June 2006		104,390	69,278	173,468	67,544	12,806	80,350					56,472	56,472
Cost		104,190	70,301	174,491	67,544	12,806	80,350					57,495	67,495
Accumulated depreciation		$\overline{\phantom{0}}$	(1,023)	(1,023)	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$					$\sim$	(1,023)	(1,023)
Closing balance as at 30 June 2006.		104,190	69.278	173,468	67,544	12,806	80,350					56,472	56,472

(b) Basis of valuation

Land and freehold buildings are accounted for using the cost method. Construction in progress is recognised at fair value. As at 31 December 2006, the fair value of construction in progress is equal to cost.

(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.

Note 5. Property plant and equipment

(d) Acquisitions and developments

DB RREEF Office Trust

Acquisitions

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

DB RREEF Industrial Trust

Developments

Boundary Road, North Laverton, VIC

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

Acquisitions

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

DB RREEF Industrial Properties, Inc.

Acquisitions

On 13 December 2006, DB RREEF Industrial Properties Sub A Inc. ("DB RREEF Sub A") formed a joint venture (Summit Oaks RP-V2, LLC, "Summit Oaks") with Parker Oaks, LLC ("Parker") to acquire a property located in Santa Clari DB RREEF Sub A is owned 100% by US REIT. On settlement, Parker contributed land with an agreed upon value of \$1.8 million (US\$1.4 million) (net of reimbursement for carrying costs incurred prior to the acquisition) which represents the only scheduled contribution that will be made by Parker to the Joint Venture. US REIT contributed \$2.1 million (US\$1.7 million) in cash and also funded \$3.5 million (US\$2.8 million) in the form of a la bank land loan.

Developments

Turnpike Distribution Center, Medley, Florida

The total projected investment for Tumpike Distribution Center, including all construction costs, due diligence and closing costs, is estimated at \$21.6 million (US\$17.1 million). Development of a single 268,119 square foo is on schedule to be completed by March 2007 and the property is projected to be leased / stabilised by December 2007. Total costs incurred to 31 December 2006 are \$19.6 million (US\$15.5 million).

Dulles Town Crossing, Herndon, Virginia

Development of this land parcel is expected to begin by March 2007. The development will consist of two four-story office buildings comprising 220,000 square feet in a rapidly growing area of Virginia. The total budgeted c (US\$47.6 million), including the initial cost of the land. The current plan calls for construction completion in early 2008 with stabilisation occurring approximately 12-15 months thereafter.

Summit Oaks, Valencia, California

Development of this vacant land is expected to begin by March 2007. The development will consist of a five-story office building comprising 139,392 square feet in Santa Clarita, California. The total budgeted cost for the (US\$45.2 million). The current plan calls for construction completion in August 2008 with stabilisation occurring approximately 12-15 months thereafter.

Note 6. Investments accounted for using the equity method

These investments are accounted for in the consolidated financial statements using the equity method of accounting.

Information relating to these entities is set out below.

Name of Entity	Principal activity	Ownership interest	Ownership interest	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
		31 Dec 2006 ₩	30 Jun 2006 ℀	31 Dec 2006 \$'000	30 Jun 2006 \$000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$000	31 Dec 2006 \$'000	30 Jun 2006 \$'000
Mt Druitt Shopping Centre Trust	Retail property investment	50	50	196,749	182,501
2 O'Connell Street Trust	Commercial property investment	50	50	8,630	9,701	$\mathbf{u}$		8.630	9,701
4 O'Connell Street Trust	Commercial property investment	50	50	16,340	15,197	$\mathbf{u}$		16,340	15,197
Bligh Street Trust	Commercial property investment	50	50	16,236	11,902	$\mathbf{u}$		16.236	11,902
DB RREEF Holdings Pty Limited?	Asset, property and funds management	50	50	22,059	15,761	$\sim$				22,059	15.761
DR RREEF Industrial Properties, inc. '	Asset and property investment	50	50		$\overline{\phantom{a}}$	250,587	272.400
DB RREEF US Properties. fnc."	Asset and property investment	50	50		$\overline{\phantom{a}}$	14
Total				260.014	235,062	250,601	272.400	41.206	36,800	22,059	15.761

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

² During the period, DB RREEF Holdings Pty Limited acquired DB RREEF Wholesale Property Limited (the Responsible Entity of DB RREEF Wholesale Property Fund).

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

	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006 \$'000	30 Jun 2006 \$000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$000	31 Dec 2006 \$'000	30 Jun 2006 \$'000
Movements in carrying amounts of investments accounted for using the equity method
Carrying amount as at 1 July 2006	235,062	208,732	272,400	177.759	36,800	36,609	15,761	17.166
Interest acquired during the period	1,847	18,335	1,374	34.060			2,282
Share of net profits/(losses) after tax	29.564	26,911	5,182	83.566	5.182	2.433	4,016	4.845
Distributions/dividends received	(6,459)	(18.916)	(11,775)	(29,041)	(776)	(2,242)		(6,250)
Foreign exchange differences on foreign currency translation	$\overline{\phantom{a}}$		(16, 580)	5.157			$\mathbf{u}$	$\overline{\phantom{a}}$
Adjustment on application of AASB 132 & AASB 139				899
Carrying amount as at 31 December 2006	260,014	235,062	250.601	272.400	41,206	36,800	22.059	15.761

Note 7. Loans with related parties

	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000
Non-interest bearing loan with the Trusts'	٠	٠	138,948	138,94B
Total current assets - loan with related parties			138,948	138,94B
	DDF Consolidated 31 Dec 2006 \$'000	30 Jun 2006 \$'000	DIT Consolidated 31 Dec 2006 \$'000	30 Jun 2006 \$'000	DOT Consolidated 31 Dec 2006 \$'000	30 Jun 2006 \$'000	DRO Consolidated 31 Dec 2006 \$'000	30 Jun 2006 \$'000
Intercompany loans"	٠			٠	59,915	181,840	1,615,872	1,382,250
Total non-current assets - loan with related parties		٠	٠	٠	59,915	181,840	1,615,872	1,382,250
	DDF Consolidated 31 Dec 2006 \$'000	30 Jun 2006 \$'000	DIT Consolidated 31 Dec 2006 \$'000	30 Jun 2006 $000*$	DOT Consolidated 31 Dec 2006 \$'000	30 Jun 2006 \$'000	DRO Consolidated 31 Dec 2006 \$'000	30 Jun 2006 \$'000
Non-interest bearing loan with the Trusts'	$\cdot$			$\overline{\phantom{a}}$	55,684	55,684	48,932	48,932
Total current liabilities - loan with related parties	۰	٠	$\cdot$	٠	55,684	55,684	48,932	48,932

The non-interest bearing foans with the Trusts were created to effect the stapling of DDF, DIT, DOT and DRO. These loan balances eliminate on consolidation.
*The intercompany loans represent loans with DB RREEF Finance Pty

Note 8. Interest bearing liabilities
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000
Current
Secured
Bank loans	26,203	29.402
Total secured	26,203	29,402	$\tilde{\phantom{a}}$	$\sim$	$\cdot$	$\sim$	۰
Unsecured
Bank loans	61,291	217,000					٠	217,000
Total unsecured	61,291	217,000	٠	$\sim$	۰	$\sim$	$\bullet$	217,000
Deferred borrowing costs	(1,471)	(1, 849)						(296)
Total current liabilities - interest bearing liabilities	86,023	244,553	$\bullet$	$\sim$	۰	$\sim$	٠	216,704
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006
Non-current	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Secured
Commercial paper	452,449	452,449			452,449	452.449
Commercial mortgage backed securities	698,091	710,883			500,000	500,000
Bank loans	385,035	422,508
Total secured	1,535,575	1,585,840	$\bullet$	$\sim$	952,449	952,449	٠
Unsecured
Commercial notes	505,498	538,140					252,749	269,070
Medium term notes	256,598	7,025					250,000
Preferred shares	117	125
Bank toans	1,136,841	825,449					1,113,462	772.980
Intercompany loans 3	٠		926,012	583,838		91,372	59,915	181,840
Total unsecured	1,899,054	1,370,739	926,012	583,838	$\ddot{}$	91,372	1,676,126	1,223,890
Deferred borrowing costs	(6,989)	(6,085)	(498)	(43)	(1,053)	(1,337)	(2,053)	(867)
Total non-current liabilities - interest bearing liabilities	3,427,640	2,950,494	925,514	583,795	951,396	1,042,484	1,674,073	1,223,023

"The intercompany loans represent loans with DB RREEF Finance Pty Limited to or from the Trusts. These loan balances eliminate on consolidation.

Note 8, Interest bearing liabilities (continued)

Cinancing seconomente

, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
The Group has access to the following fines of credit:
Borrowing facilities
Commercial paper	453.300	453.300		$\sim$	453,300	453.300
Commercial mortgage backed securities.	698,091	710,883		$\sim$	500,000	500,000
Commercial notes i	505,497	538,140	$\overline{\phantom{a}}$	٠			252,749	269,070
Bank loans.	1,888,272	1,794,434	۰	$\sim$	۰	۰.	1,477,035	1,342,524
Medium term notes	256,599	7.025		۰	$\overline{\phantom{a}}$	$\blacksquare$	250.000
	3,801,759	3,503,782		٠	953,300	953,300	1,979,784	1,611,594
Bank guarantee facility utilised at balance date	(5,000)	(5,000)	$\cdot$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$		(5,000)	(5,000)
Used at balance date by DB RREEF Industrial Properties, Inc.			$\overline{\phantom{a}}$	$\overline{\phantom{a}}$			(84, 671)	(52, 469)
Used at balance date	(3,522,006)	(3,202,856)	۰.	٠	(952, 449)	(952, 449)	(1,616,211)	(1,259,050)
Unused at balance date.	274.753	295.926			851	851	273.902	295.075

Bank foans

DB RREEF Finance Pty Limited, a wholly-owned subsidiary of DRO, has syndicated bank debt facilities which comprises a \$300.0 million, multi-currency revolving credit facility maturing in September 2008, a \$300.0 million multi-currency revolving credit facility maturing in March 2010 and a US\$210 million (\$265.4 million) multi-currency revolving credit facility maturing in September 2010.
In addition, DB RREEF Finan maturing in December 2010, December 2013 and December 2007 respectively. Of the \$100.0 million is collined in different and the standard content in the color hand the following in December 2010, December 2013 and December and US\$120.0 million multi-currency revolving credit facilities.

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

The consolidated accounts of the Group include the debt facilities of the US joint venture. The facilities include a total of US\$100.4 million (\$126.9 million) of secured bank debt facilities that amortise through monthly principal and interest payments with a weighted average maturity date of January 2009 and a US\$225.0 million (\$284.3 million) secured interest only bank loan maturing in September 2009. These facilities are secured by mortgages over investment properties of the US joint venture totalling \$363.6 million and \$685.3million respectively as at 31 December 2006.

Commercial notes - US Private Placement

DB RREEF Finance Pty Limited has on issue US\$200.0 million (\$252.8 million) of notes which were privately placed with investors on terms to maturity ranging from December 2011 to March 2017.

DB RREEF Industrial Properties, Inc has on issue US\$200.0 million (\$252.8 million) of notes which were privately placed with investors on terms to maturity ranging from February 2011 to February 2016.

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

Commercial paper and commercial mortgage backed securities

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On 31 January 2007, DB RREEF Trust settled the sale of a 50% share of the Zenith Centre, Chatswood, one of the properties secured under the above CP and CMBS program The proceeds of the sale were used to repay \$107.9 million of the CP in February 2007. The \$500.0 million CMBS will not be impacted.

The US joint venture has liabilities resulting from a US\$156.8 million (\$198.1 million) CMBS issue, maturing in September 2008 (inclusive of a one year extension option beginning September 2007).
This is secured by investm

Medium term notes

The US joint venture has liabilities resulting from US\$5.2 million (\$6.6 million) unsecured medium term notes maturing in September 2010.

On 4 August 2006, DB RREEF Finance Pty Limited issued \$250.0 million of unsecured medium term notes, maturing in February 2010. These notes are supported by the Group guarantee
arrangements. These notes have negative pledg unsecured debt ranks pari pasu.

On 8 February 2007, DB RREEF Finance Pty Limited issued \$200.0 million of unsecured medium term notes, maturing in February 2011.

Preferred Shares

DB RREEF Industrial Properties, Inc has issued US\$92,550 (\$116,959) of preferred shares as part of the requirement to be classified as a Real Estate investment Trust ("REIT") under US tax legislation. These preferred shares will remain on issue until such time that the Board decides that it is no longer in the company's interest to qualify as a REIT.

Note 9. Contributed equity
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dac 2006 \$'000	30 3un 2006 \$'000	31 Doc 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000
(a) Contributed equity of equity holders of the parent
Opening balance at the beginsing of the period.	1.094,144	1,059.867	689,280	668.995	1,399.806	1,359.854	5,801	5,540
Distributions rainvested	28,303	34,284	16,141	20.289	26,722	39,959	517	261
Cost of distributions reinvested		(7)	(3)	(4)		(7)
Closing balance at the end of the period	1,122,447	1.094.144	705,418	689.280	1,426,528	1,399.806	6,318	5.80%
(b) Contributed equity of equity holders of other entities stapled to DDF
Opening balance at the beginsing of the period	2.094,887	2,034.388		$\ddot{\phantom{a}}$
Distributions reinvested	43,380	60,509	$\overline{\phantom{a}}$	$\ddot{\phantom{a}}$
Cost of distributions reinvested	${3}$	(10)		$\ddot{\phantom{a}}$
Closing balance at the end of the period	2,138,264	2,094.887	$\cdot$	$\ddot{\phantom{a}}$	$\bullet$	$\mathbf{r}_\mathrm{f}$	٠
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006	30 Jun 2006	31 Dac 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006	31 Dec 2006	30 Jun 2006
	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 at the beginning of the period	2,802,209.393	2,732.082,389	2.802.209.393	2.732.082.389	2.802.209.393	2.732.082.389	2.802.209.393	2,732.082,389
Distributions rainvested	48,611,675	70.127.004	48.611.675	70.127.004	48.611.675	70.127.004	48,611.675	70,127,004
Cinsing balance at the end of the neriod	2.850.821.068	2 802 209 393	2.850.821.068	2 802 209 393	2.850.821.068	2 802 209 393	2.850.821.068	2 802 209 393

Terms and conditions

form the conditional state and of the stapled securities for the purposes of distributions and on termination. Each stapled security entitles the holder to one vote, either in person
or by proxy, at a meeting of each of th

Distribution reinvestment plan

Under the distribution relavestment plan ("DRP"), stapled security holders may elect to have all or part of their distribution entitlements salisfied by the issue of new stapled securities, rather than being paid in cash.

48,611,675 securities were issued to existing DRT security holders on 29 August 2006, under this DRP at a unit price of \$1.4746 in relation to the June 2006 distribution period.

48,811,675 securities were issued to existing DIY unifholders on 29 August 2006, under this DRP at a unit price of \$0.3321 in relation to the June 2006 distribution period.

48,811,875 securities were issued to existing DOT pritholders on 29 Apgust 2006, under this DRP at a prit price of \$0.5497 in relation to the June 2006 distribution period.

48,611,675 securities were issued to existing DRO unifholders on 29 August 2006, under this DRP at a unit price of \$0.0106 in relation to the June 2006 distribution period.

Further units are to be issued under the DRP in relation to the December 2006 distribution period.

Note 10. Distributions paid and payable

	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
(a) Distribution to stapled security holders	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$'000
31 December (payable 28 February 2007).	159,646	150,735	35,949	30,155	59,511	68,070	1,151
	159,646	150,735	35,949	30,155	59,511	68,070	1,151
(b) Distribution to other minority interests
DB RREEF Industrial Holdings, LLC (paid)	2,143	3.846
DB RREEF RENTS Trust (paid 17 October 2006)	3,737	4,223			3,737	4,223
DB RREEF RENTS Trust (payable 16 January 2007).	3,856	3,566			3,856	3,566
	9,736	11,635			7,593	7.789
Total distributions	189,382	162,370	35,949	30,155	67,104	75,859	1,151
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005
	Cents per	Cents per	Cents per	Cents per	Cents per	Cents per	Cents per	Cents per
	security	security	unit	unit	unit	unit	unit	ี นกลี่
31 December (payable 28 February 2007).	5.60	5.45	1.26	1.09	2.09	2.48	0.04
Total	5.60	5.45	1.26	1.09	2.09	2.48	0.04

(c) Franked distributions

The franked portions of the final distributions recommended for the year ended 30 June 2007 will be franked out of existing franking credits or out of franking credits arising from the payment of income tax in
the year end

	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005
	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000	\$'000
Franking Credits
Opening balance at the beginning of the period	495			$\overline{\phantom{a}}$		$\overline{\phantom{a}}$	495
Franking credits arising during the period on payment of tax	1,225	1.069					1,225	1.069
at 30 percent
Franking debits arising from payment of dividends	(345)	(574)			$\overline{\phantom{a}}$	-	(345)	(574)
Closing balance at the end of the period	1.375	495			-		1.375	495

Note 11. Contingent liabilities

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

---------------------------------------	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006 5'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$'000	31 Dec 2006 \$'000	30 Jun 2006 \$1000
Bank guarantees by the Group in respect of variations and other financial risks associated with the development of: 240 St Georges Terrace, Perth, WA Coles Myer development at Boundary Road, Laverton,	5,000	200 5,000	5,000	5,000	$\sim$ $\sim$	200	٠ 5,000	5,000
VIC.
Total contingent liabilities	5,000	5,200	5,000	5,000		200	5,000	5,000

The Trusts are also guarantors of a A\$600.0 million and US\$210.0 million syndicated bank debt facility, a total of A\$460.0 million and US\$120.0 million of bank bi-lateral facilities, A\$250.0 million of
medium term notes an outstanding and drawn against these facilities.

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

The directors of the Responsible Entity are not aware of any other contingent liabilities in relation to the Group, other than those disclosed in the Financial Statements, which should
be brought to the attention of securi

Note 12. Events occurring after reporting date

DB RREEF Industrial Trust

706 Mowbray Road, Lane Cove, NSW

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

DB RREEF Office Trust

The Zenith, 821 - 843 Pacific Highway, Chatswood, NSW

On 31 January 2007, DOT sold 50% of The Zenth, 821 - 843 Pacific Highway, Chatswood, NSW for \$126.2 million. The proceeds of the sale were used to repay \$107.9 million of the CP in February 2007.

DB RREEF Finance Pty Limited

On 8 February 2007, DB RREEF Finance Pty Limited issued \$200 million of unsecured medium term notes, maturing in February 2011.

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

Note 13. Segment information

DDF Consolidated Business segments

The Group 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 2006	Retail	Commercial & Car Park	Industrial	Eliminations/ Unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue	32,459	164.492	151,335		348,286
Interest revenue	142	470	1.274	2,979	4.865
Share of net profits of associates	20,366	5,182		4,016	29.564
accounted for using the equity method
Proceeds from sale of inventory	×.		3.959		3,959
Net gain on sale of investment properties			82		82
Net fair value gain of investment properties	50,146	281,433	9,325		340,904
Net fair value gain of derivatives				152	152
Other income		281	244	139	664
Total segment revenue	103.113	451,858	166.219	7,286	728,476
Segment result attributable to stapled security holders	92,230	372,101	49.162	(3,011)	510,482

31 December 2005	Retail	Commercial & Car Park	Industrial	Eliminations/ Unallocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue	32,574	149,864	141,690	1,884	326,012
Interest revenue	135	443	647	2.831	4,056
Share of net profits of associates	4,801	1,706		2,242	8,749
accounted for using the equity method
Net gain/(loss) on sale of investment properties		131	(35)		96
Net fair value gain/(loss) of investment properties	31,122	71.224	81,955	(216)	184,085
Net fair value gain/(loss) of derivatives		4,619	1,911	(1,090)	5,440
Net foreign exchange gain	۰	11	1,390		1,401
Other income	$\mathbf{r}$	1,817	66		1,883
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

Note 13. Segment information (continued)

DIT

Geographical segments

DIT's investments are located in Australia, the United States of America, France and Germany.

31 December 2006	Australia	United States of America	France	Consolidated
	\$'000	\$'000	\$'000	\$'000
Property revenue	48.312		5,129	53,441
Interest revenue	381		90	471
Share of net profits of associates accounted for using the equity method		5.182		5.182
Net gain on sale of investment properties	67	٠	٠	67
Net fair value gain of investment properties	13.086	٠		13,086
Net fair value gain of derivatives	2.350			2.350
Other income	244			244
Total segment revenue	64,440	5.182	5,219	74.841
Segment result attributable to unitholders	36.892	5,182	1.088	43.162

DIT acquired 13 properties in Germany on 31 December 2006, no income has been received for the half year ended 31 December 2006.

31 December 2005	Australia	United States of America	France	Consolidated
	\$'000	\$'000	\$'000	\$'000
Property revenue	47.279			47,279
Interest revenue	131			131
Share of net profits of associates accounted		8.598		8.598
for using the equity method
Net fair value gain of investment properties	54,740			54,740
Net foreign exchange gain	695			695
Other income	66			66
Total segment revenue	102.911	8.598		111.509
Segment result attributable to unitholders	76.328	8.598		84,926

Note 13. Segment information (continued)

DOT

Geographical segments

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

31 December 2006	Australia \$'000	New Zealand \$'000	Consolidated \$'000
Property revenue	122,821	4,991	127,812
Interest revenue	421	48	469
Interest revenue from the Trusts	2,143		2,143
Share of net profits of associates accounted for using the equity method	5,182	٠	5,182
Net fair value gain of investment properties	257,776	11,460	269,236
Net fair value gain of derivatives	8.488		8,488
Other income	281		281
Total segment revenue	397,112	16,499	413,611
Segment result attributable to unitholders	327,980	15,408	343,388
31 December 2005	Australia \$'000	New Zealand \$'000	Consolidated \$'000

Interest revenue	375	65	440
Interest revenue from the Trusts	4.426		4.426
Share of net profits of associates accounted	1.706		1.706
for using the equity method
Net fair value gain of investment properties	39,771	8.087	47.858
Net fair value gain of derivatives	4.619		4.619
Net foreign exchange gain	11		11
Other income	1.817		1.817
Total segment revenue	166.189	11,980	178.169
Segment result attributable to unitholders	99,934	11,529	111,463

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.

31 December 2006	Financial services	Property development	Investments in funds management company	Eliminations/ Unaliocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue	٠	2.662			2.662
Interest revenue	81		2,628	40	2,749
Interest revenue from the Trusts	41,066				41,066
Recoverables from the Trusts	678				678
Share of net profits of associates accounted for using the equity method			4,016		4,016
Other income	٠	2		86	88
Total segment revenue	41,825	2.664	6.644	126	51,259
Segment result attributable to unitholders	(869)	(728)	5,691	243	4,337

31 December 2005	Financial services	Property development	Investments in funds management company	Eliminations/ Unaliocated	Consolidated
	\$'000	\$'000	\$'000	\$'000	\$'000
Property revenue		1,513			1,513
Interest revenue	80		2.500	35	2,615
Interest revenue from the Trusts	19,055				19,055
Recoverables from the Trusts	551				551
Share of net profits of associates accounted for using the equity method			2,242		2,242
Net fair value gain of derivatives	1,046				1,046
Total segment revenue	20,732	1.513	4,742	35	27,022
Segment result attributable to unitholders	58		3.796	(37)	3,817

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 \$202.0 million US denominated debt. However, proceeds of \$96.8 million, repayments of \$32.5 million, and finance costs of \$11.0 million associated with this debt during the period, have been excluded
from DRO's Consolidated Cash Flow Statements. These cashflows are d 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, was the legal borrower of \$111.1 million NZ denominated debt, which was repaid in October 2006. The repayment of \$97.1 million and finance costs of \$2.5 million associated with this debt during the period, have been excluded from DRO's Consolidated Cash Flow Statements. These cashflows are disclosed in DOT's Consolidated Cash Flow Statements as the operator 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 \$203.0 million EURO denominated debt. However, proceeds of \$394.8 million, repayments of \$56.9 million, and finance costs of \$1.4 million associated with this debt during the period, have been excluded trom DRO's Consolidated Cash Flow Statements. These cashflows are disclosed in DIT's Consolidated Cash Flow Statements as the operators of the bank account where these cash inflows and outflows have occurred.

Note 15. Earnings per unit

(a) Basic earnings per unit on profit attributable to equity holders of the parent entity
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005
	cents	cents	cents	cents	cents	cents	cents	cents
	4.22	4.91	1.52	3.08	12.11	4.05	0.15	0.14
(b) Diluted earnings per unit on profit attributable to equity holders of the parent entity
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005	31 Dec 2006	31 Dec 2005
	cents	cents	cents	cents	cents	cents	cents	cents
	4.22	4.91	1.52	3.08	12.11	4.05	0.15	0.14
(c) Basic earnings per unit on profit attributable to stapled security holders	DDF Consolidated
	31 Dec 2006	31 Dec 2005
	cents	cents
	18.00	12.18
(d) Diluted earnings per unit on profit attributable to stapled security holders
	DDF Consolidated
	31 Dec 2006	31 Dec 2005
	cents	cents
	18.00	12.18
(e) Reconciliation of earnings used in calculating earnings per unit attributable to equity holders of the parent
	DDF Consolidated		DIT Consolidated		DOT Consolidated		DRO Consolidated
	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$'000	31 Dec 2006 \$'000	31 Dec 2005 \$'000
Net profit	519,302	346,091	43,162	84,926	344,921	112,946	4,337	3,817
Net profit attributable to equity holders of other entities stapled to DDF (minority	(390, 889)	(200, 208)
Net profit attributable to other minority interests	(8, 820)	(10, 484)			(1,533)	(1,483)
Net profit attribiable to the unitholders of the Trust used in calculating basic and dituted earnings per unit	119,593	135,399	43,162	84,926	343,368	111,463	4,337	3,817
(f) Welghted average number of units used as a denominator

DRO Consolidated DDF Consolidated DIT Consolidated DOT Consolidated 31 Dec 2005 31 Dec 2006 31 Dec 2005 31 Dec 2006 31 Dec 2005 31 Dec 2006 31 Dec 2005 31 Dec 2006 Weidhted number of units outstanding used 2,835,233,629 2,754,980,430 2,835,233,629 2,754,980,430 2,835,233,629 2,754,980,430 2,835,233,629 2,754,980,430 in the calculation of basic earnings per unit

DB RREEF DIVERSIFIED TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

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 10 to 39:

• 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 and its consolidated entities' financial position as at 31 December 2006 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 2006.

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.

Christopher T Beare Chair Sydney 26 February 2007

DB RREEF INDUSTRIAL TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

The Directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Industrial Trust ("DIT") declare that the Financial Statements and notes set out on pages 10 to 39:

• 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 DIT and its consolidated entities' financial position as at 31 December 2006 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 DIT and its consolidated entities will be able to pay their debts as and when they become due and payable; and
• (c) DIT has operated in accordance with the provisions of the Constitution dated 22 December 1999 (as amended) during the half-year ended 31 December 2006.

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.

Christopher T Beare Chair Sydney 26 February 2007

DB RREEF OFFICE TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

The Directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Office Trust ("DOT") declare that the Financial Statements and notes set out on pages 10 to 39:

• 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 DOT and its consolidated entities' financial position as at 31 December 2006 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 DOT and its consolidated entities will be able to pay their debts as and when they become due and payable; and
• (c) DOT has operated in accordance with the provisions of the Constitution dated 1 December 1999 (as amended) during the half-year ended 31 December 2006.

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.

Christopher T Beare Chair Sydney 26 February 2007

DB RREEF OPERATIONS TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2006

The Directors of DB RREEF Funds Management Limited as Responsible Entity of DB RREEF Operations Trust ("DRO") declare that the Financial Statements and notes set out on pages 10 to 39:

• 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 DRO and its consolidated entities' financial position as at 31 December 2006 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 DRO and its consolidated entities will be able to pay their debts as and when they become due and payable; and
• (c) DRO has operated in accordance with the provisions of the Constitution dated 11 August 2004 during the half-year ended 31 December 2006.

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.

Christopher T Beare Chair Sydney 26 February 2007

PRICEWATERHOUSE COPERS

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

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Diversified Trust (the trust) and DB RREEF Diversified Trust Group (defined below) for the half-year ended 31 December 2006 included on DB RREEF Diversified Trust's web site. The directors of DB RREEF Funds Management Limited (the Responsible Entity of the trust) are responsible for the integrity of the DB RREEF Diversified Trust's 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 Trust:

• gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the DB RREEF Diversified Trust Group (defined below) as at 31 December 2006 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 Diversified Trust Group (the consolidated entity), for the half-year ended 31 December 2006. 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 their subsidiaries.

PricewaterhouseCoopers ABN 52 780 433 757

PRICEWATERHOUSE COPERS IS

The directors of DB RREEF Funds Management Limited 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 trust 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 € disclosures in the financial report, and
• assessing the appropriateness of accounting policies and disclosures used and the 發 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.

Pricouratemandelegras

PricewaterhouseCoopers

TAEDening

JA Dunning Partner

Sydney 26 February 20

RICEWATERHOUSE COPERS

Independent audit report to the unit holders of DB RREEF Industrial Trust

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Industrial Trust (the trust) and the DB RREEF Industrial Trust Group (defined below) for the half-year ended 31 December 2006 included on DB RREEF Industrial Trust's web site. The directors of DB RREEF Funds Management Limited (as Responsible Entity of the trust) are responsible for the integrity of the DB RREEF Industrial Trust's 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 Trust:

• gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the DB RREEF Industrial Trust Group (defined below) as at 31 December 2006 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 ø 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 Trust Group (the consolidated entity), for the half-year ended 31 December 2006. The consolidated entity comprises both DB RREEF Industrial Trust (the trust) and the entities it controlled during that half-year.

The directors of DB RREEF Funds Management Limited are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001.

PricewaterhouseCoopers ABN 52 780 433 757

PRICEWATFRHOUSE COPERS IS

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 trust 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 3B) disclosures in the financial report, and
• assessing the appropriateness of accounting policies and disclosures used and the ⊕ reasonableness of significant accounting estimates made by the directors.

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

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

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

Independence

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

PricewaterhouseCoopers

JA Dunning Partner

Sydney 26 February 2007

Independent audit report to the unit holders of DB RREEF Office Trust

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Office Trust (the trust) and the DB RREEF Office Trust Group (defined below) for the half-year ended 31 December 2006 included on DB RREEF Office Trust's web site. The directors of DB RREEF Funds Management Limited (as Responsible Entity of the trust) are responsible for the integrity of the DB RREEF Office Trust's 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 Trust:

• gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the DB RREEF Office Trust Group (defined below) as at 31 December 2006 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 Trust Group (the consolidated entity), for the half-year ended 31 December 2006. The consolidated entity comprises both DB RREEF Office Trust (the trust) and the entities it controlled during that half-year.

The directors of DB RREEF Funds Management Limited are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001.

PricewaterhouseCoopers ABN 52 780 433 757

PRICEWATERHOUSE COPERS ®

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 trust 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:

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

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

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

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

Independence

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

Pricewastalvaux Cognes

PricewaterhouseCoopers

JADuu

JA Dunning Partner

Sydney 26 February 2007

PRICEV/ATERHOUSE COPERS

Independent audit report to the unit holders of DB RREEF Operations Trust

Matters relating to the electronic presentation of the audited financial report

This audit report relates to the financial report of DB RREEF Operations Trust (the trust) and the DB RREEF Operations Trust Group (defined below) for the half-year ended 31 December 2006 included on DB RREEF Operations Trust's web site. The directors of DB RREEF Funds Management Limited (as Responsible Entity of the trust) are responsible for the integrity of the DB RREEF Operations Trust's 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 Trust:

• gives a true and fair view, as required by the Corporations Act 2001 in Australia, of the financial position of the DB RREEF Operations Trust Group (defined below) as at 31 December 2006 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 Ø 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 Trust Group (the consolidated entity), for the half-year ended 31 December 2006. The consolidated entity comprises both DB RREEF Operations Trust (the trust) and the entities it controlled during that half-year.

The directors of DB RREEF Funds Management Limited are responsible for the preparation and true and fair presentation of the financial report in accordance with the Corporations Act 2001.

PricewaterhouseCoopers ABN 52 780 433 757

PRICEWATERHOUSE COPERS CO

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 trust 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:

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

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

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

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

Independence

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

Priewaterhause Compas

PricewaterhouseCoopers

JADUL

JA Dunning Partner

Sydney 26 February 2007

DB RREEF Trust

half year report 2006

Meneged in partnership with Deutsche Benk $Z\hspace{-0.1cm}Z$

contents

key results

chief executive officer's report

LAM PLEASED TO PRESENT THE HALF YEAR REPORT TO SECURITY HOUDERS OF DR RREEF TRUST FOR THE SIX MONTHS. TO 31 DECEMBER 2006

ACQUISITIONS IN THE HALF YEAR PERIOD INCLUDED. LAND IN AUSTRALIA FOR DEVELOPMENT OPPORTUNITIES AND INDUSTRIAL PROPERTIES IN THE US. FRANCE AND GERMANY.

In this period, we continued to deliver on our objective to enhance security holder. value with a strong performance across. the business.

portfolio performance

delivering growth

Total income was \$728 million, with profit attributable to security holders of \$510 million. DB RREEF Trust will pay distributions for the half year of \$159.6 million. This represents 5.60 cents per security compared to 5.45 cents for the same period last year ~ an increase of 2.8 percent.

At 31 December 2006, total assets were \$9 billion. Net tangible assets increased during the half year by 9.7 percent to \$4.7 billion, representing \$1.65 per stapled security.

DB RREEF Funds Management Limited manages approximately \$13.0 billion of assets, including \$4.3 billion managed on behalf of third party clients.

strong fundamentals.

Our continued focus has been to enhance and maintain our high quality portfolio in Australia and overseas, undertake quality building refurbishments and concentrate on development opportunities, thereby attracting and retaining quality tenants. Key fundamentals of the portfolio have remained strong throughout the half year.

During the period, DB RREEF Trust leased approximately 220,000 square metres of space across the portfolio, which resulted in an overall occupancy rate of 95.7 percent. and an average lease duration of 5.3 years. The portfolio value increased by \$770 million. driven primarily by strong acquisition activity. in the period of over \$400 million and revaluations contributing a further \$359 million.

domestic and international expansion.

Acquisitions in the half year included land in Australia for development opportunities and industrial properties in the US. France and Germany. In addition, we have secured approximately \$627 million of future commitments in the USA, Canada and Europe which includes the Whirlpool international investment program, announced in August 2006.

Together these acquisitions build on DB RREEF Trust's strategy for international expansion, and provide investors with exposure to quality international assets. diversified across geographic regions. These acquisitions progress us further fowards our target international asset mix of 35 to 50 percent, and demonstrate the effectiveness of our strategic relationship with RREEF in our international expansion plans.

We have delivered on our strategy to enhance our development pipeline with eight development projects underway in the industrial, office and retail portfolios. with an estimated cost of \$459 million. Total developments including future pipeline has an estimated value on completion of morethan \$2.2 billion.

diversification

Our portfolio is diversified across office. industrial and retail sectors in Australia and internationally, as shown in the graph.

portfolio diversification as at 31 december 2006

鵽	- Anstralia & N7 office	48%
豂	- Australian retail	12%
除。	- Australian industrial	20%
_	- ES industrial	17%
	38 French industrial	1%
	縣 German industrial	つる

1 Germany excludes the property located in Düsseldorf which is contracted to be purchased in May 2007.

• 2 US excludes the Whirlpool International Investment Program, Summit Oaks and 20 percent minority. interest in joint venture assets.
• 1. Office includes car parks.

sector performance

OFFICE - ENHANCING OUR QUALITY PORTFOLIO

Australia/New Zealand

The Australia/New Zealand office portfolio consists of 24 office buildings and five car parks of which 86 percent are premium and A-grade. The portfolio contributes \$124.9 million of net property income to the DB RREEF Trust or approximately 46.6 percent of total property income for the half year.

As a result of strong leasing activity throughout the half year, our office sector occupancy rate remains high at 97.3 percent (compared to the average market occupancy rate of 93.6 percent¹) and the average lease duration increased to 6.4 years, compared to 6.3 years at 30 June 2006.

The Australia/New Zealand office portfolio is valued at \$3.9 billion, following revaluations of \$286 million.

We continue to actively manage our portfolio and since year end we have sold a 50 percent interest in The Zenith, Chatswood, NSW, for \$126.25 million, with proceeds being used to fund future opportunities.

1 Source: Jones Lang LaSatie, June 2006

DB RREEF Trust is currently progressing four development opportunities with an estimated value on completion of \$900 million. These include:

• a an office fower at Bent Street, Sydney, NSW, for which we are seeking tenant pre-commitments. A Stage 2 Development Application is due to be lodged in the second quarter 2007
• a a 20,400 square metre office fower at 105 Phillip Street, Parramatta, NSW
• * an office fower on the existing car park site at Charlotte Street, Brisbane, QLD, for 42,000 square metres
• a an extension to the existing lower five levels of Victoria Cross, North Sydney, NSW, creating an additional 5,000 square metres

Artist's impression of the proposed office tower at Bent Street, Sydney, NSW

office lease expiry profile as at 31 december 2006.

sector performance (continued)

RETAIL - SECURE INCOME STREAMS

Australia

The Australian retail portfolio consists of a 50 percent interest in six shopping. centres providing net property income of approximately \$27.9 million to DB RREEF. Trust or approximately 10.4 percent of total property income for the half year to 31 December 2006.

Moving annual turnover for the 12 months to 31 December 2006 is up eight percent to \$1.58 billion over the same period last year.

The portfolio's occupancy remains stable at 99.7 percent and the average lease. duration is 5.3 years.

In the retail sector, we continue to maximise value by working in partnership with Westfield to create an optimum shopping environment. for our tenants and, most importantly, our customers.

Throughout the half year, revaluations were completed on the retail portfolio which provided an increase in value of \$64 million. (seven percent).

Works have commenced on two development projects - North Lakes Shopping Centre, QLD, and Plenty Valley Shopping Centre, VIC. Combined the cost of our interest in these developments is approximately \$190 million. and will add a total 66,600 square metres of net lettable area to the portfolio.

Westfield West Lakes Shopping Centre, SA

retail lease expiry profile

Westfield Mount Druitt, NSW

sector performance (continued)

INDUSTRIAL - CONTINUED FOCUS ON PORTFOLIO GROWTH AND DEVELOPMENT

Australia

The Australian industrial portfolio was valued at \$1.7 billion at 31 December 2006. an increase of \$118 million or 7.5 percent. from 30 June 2006.

The portfolio consists of 41 industrial properties and contributed \$56.6 million. of net property income to DB RREEF Trust or approximately 21.1 percent of total net property income for the half year.

Occupancy in the portfolio is 97.2 percent down from 99.2 percent at 30 June 2006. due to a number of anticipated vacancies. arising. The average lease duration remains steady at 4.8 years.

We have sold two properties - Evans Road, Salisbury, QLD, in August 2006, and 706 Mowbray Road, Lane Cove, NSW, in January 2007 - for a total of \$53.3 million.

During the last six months, DB RREEF Trust has secured two significant development sites. a 50 percent interest in 144 Wicks Road, North Ryde, NSW, and the other adjoining the DB RREEF Industrial Estate in Dohertys Road, Laverton North, VIC.

These acquisitions are consistent with the industrial portfolio's overall objective to increase value to security holders through a strong development pipeline.

A number of developments with an estimated end value on completion of \$56.7 million. have been completed at four key sites:

• ® DB RREEF Industrial Estate, Laverton North, VIC
• ^® Pound Read, Dandenong, VIC
• Kings Park Industrial Estate, Marayong, NSW
• * Axxess Corporate Park Estate, Mt Waverley, VIC

In addition, two development projects with an estimated cost of \$132 million are progressing to accommodate the tenancy requirements of the Coles Group and Fosters Australia tenancies at the DB RREEF Industrial Estate in Laverton North.

Axxess Corporate Park, Mount Waverley, VIC

australian industrial leasing expiry profile chart

sector performance (continued)

INDUSTRIAL - CONTINUED FOCUS ON PORTFOLIO GROWTH AND DEVELOPMENT

North America

The North American industrial portfolio of 102 properties is valued at approximately \$1.4 billion (based on 80 percent ownership of joint venture assets). The portfoliocontributes \$54.8 million of net property income which represents 20.4 bercent of the total net property income attributed to DB RREEF Trust in the half year.

Occupancy increased to 94.1 percent in the half year with the average lease duration being 3.3 years.

In December 2006, DB RREEF Trust secured a 92 percent interest in a suburban. office development site in Summit Oaks, in the strong growth market of Valencia, California. Early works have commenced for the development of a 139,392 square foot, five-storey, office building with a separate car bark. The estimated cost of the development will be \$57 million. This complements other developments within the portfolio and will further enhance the quality and contribution. the North American portfolio will make to DB RREEF Trust.

The \$24 million Turnpike Distribution Centre development in Florida, is now fully leased. with practical completion taking place in January 2007. Works are continuing on the office development at Atlantic Corporate Park, Virginia, with completion due in the first haff of 2008.

Under the Whirlpool international investment program the first distribution centre in Orlando, Florida, has been completed with an estimated value on completion of \$41 million. Whirtpool has begun its fit-out and it is anticipated that DB RREEF Trust will acquire the facility by April 2007. A further site has been secured in Toronto, Canada, with construction expected to be complete by December 2007, DB RREEF Trust expects to acquire the property in the first half of 2008. Additional sites for the Whirlpool international investment program are actively being sought.

During the half year, DB RREEF Trust sold a new core asset. Oak Park Business Centre. Minneapolis, USA, for \$4.0 million.

Yown Park Drive Atlanta, USA

north american industrial lease expiry profile as at 31 december 2006.

sector performance (continued)

INDUSTRIAL - CONTINUED FOCUS ON PORTFOLIO GROWTH AND DEVELOPMENT

Europe

In the half year to 31 December 2006, DB RREEF Trust entered the European property market and acquired two portfolios. When construction is complete, these 19 industrial properties have a combined book value of \$339 million.

In August 2006, a French portfolio was acquired for a total cost of \$119 million. The portfolio consists of six logistics properties in Paris and Lyon - major logistics warehouse markets in France. During the half year, the French portfolio contributed \$3.9 million of net property income, representing 1.5 percent of the total net property income attributed to DB RREEF Trust. The portfolio is 87.6 percent occupied and its average lease duration is 2.7 years.

On 31 December 2006, DB RREEF Trust secured the investment of 14 logistics properties located across Germany for \$220 million, including costs. The German portfolio includes a \$27.1 million development profect in Düsseldorf which will be acquired, upon completion, in May 2007. At 31 December 2006, the occupancy level for the German portfolio was 94.1 percent and the average lease duration was 6.0 years.

Combined, this European portfolio represents. approximately four percent of DB RREEF Trust's direct property portfolio. The average occupancy rate is 92.2 percent with an average lease duration of 4.9 years.

european industrial lease expiry profile as at 31 december 2006

THIRD PARTY FHADS HAIDER MANAGEMENT NOW TOTAL \$4.3 BB HON AN INCREASE OF \$369 MB HON SINCE BINE 2006. IN SUMMARY, DURING THE HALF YEAR OUR HIGH QUALITY. PORTEOUG HAS PERFORMED WELL AND WE ARE WORKING. PROACTWELY TO MAXIMISE ITS FUTURE POTENTIAL

third party funds

delivering growth

Third party funds under management now total \$4.3 billion, an increase of \$369 million since June 2006.

The business, comprising wholesale funds, mandates and syndicates, has performed well against the external benchmarks and has grown through acquisition, development and revaluation. During the half year we have significantly increased our resources servicing this area particularly in respect of retail asset management where we manage 15 retail properties of which six are expected to be redeveloped over the next two years.

During the half year, following the approval of wholesale investors, we completed the fast important step in the stapling proposal approved by security holders in 2004, by acquiring the Responsible Entity managing the wholesale fund from Deutsche Bank. As part of the change of ownership, the Fund has been renamed the DB RREEF Wholesale Property Fund.

active capital management

DB RREEF Trust continues to maintain and enhance its strong balance sheet, which is supported by a Standard and Poors (S&P). long term corporate credit rating of BBB+.

DB RREEF Trust's overall level of debt is \$3.5 billion, which represents gearing of 38.9 percent, as measured by interest bearing debt to total assets (both net of cash).

During the half year, DB RREEF Trust further diversified its sources of debt by successfully completing two medium term notes (MTNs) issues into the Australian debt capital market (for a combined total of \$450 million). Both issues received a strong response. from investors and were increased from the original offer size.

DB RREEF Trust continues to maintain a prudent financial risk management profile. A high proportion of DB RREEF Trust's forecast interest bearing exposure is hedged with a weighted average duration. of approximately six years. In addition, DB RREEF Trust's foreign exchange exposure is conservatively hedged for up to five years.

sustainability

At DB RREEF we are committed to the long term integration of sustainability practices. throughout our business and the period to 31 December 2006 has been no exception. The sustainability projects highlighted in the 2006 Annual Report are now underway and on track for completion in 2007.

Consistent with our commitment to sustainable and economically viable measures, we have committed to buyapproximately 15 percent of the electricity. used in our commercial properties in NSW, VIC, QLD and ACT from renewable sources. DB RREEF estimates this policy will cut around 15,000 tonnes of carbon dioxide. a vear, the equivalent of taking more than 3.750 cars off the road each year.

outlook

In summary, during the half year our higheaality portfolio has berformed well and we are working proactively to maximise its future. potential. We are increasing our investments with \$1 billion of acquisitions and commitments made in the year so far, and have created a development pipeline which will result in another \$2.2 billion of property being available for the group in the future.

We intend to pay a full year distribution of 11.3 cents per stapled security.

Victor P Hoog Antink Chief Executive Officer

26 February 2007

financial reports

THE FOLLOWING FINANCIAL STATEMENTS FOR DB RREEF TRUST ARE A SUMMARY OF THE INCOME STATEMENT, BALANCE SHEET, STATEMENT OF CHANGES IN EQUITY AND CONSOLIDATED CASH FLOW STATEMENT.

The full financial statements, together with the notes to the financial statements and the Directors' Report can be obtained from the DB RREEF Trust website at www.dbrreef.com or by contacting the Infoline on 1800 819 675.

income statement

	31 December 2006 31 December 2005
	( \$'000)	\$(\$'000)
Property revenue	348,286	326,012
Interest revenue	-4.865	4.056
Contribution from equity accounted investments.	29,564	8.749
Property revaluations	340.904	184.085
Derivatives gains	152	5.440
Other income	4,705	3.380
Total income	728,476	531,722
Financing costs	(96,044)	(80.080)
Impairment of goodwill		(3.267)
Other expenses	(109.291)	(94.358)
Total expenses	(205, 335)	(177.705)
Profit before tax	523,141	354,017
Income and withholding tax expense	(3.839)	(7.926)
Other minority interests (including RENTS)	(8,820)	(10.484)
Net profit to stapled security holders	510,482	335,607

balance sheet

	31 December 2006	30 June 2006
	$($ \$'000)	(\$'000)
Cash and receivables	108.051	141.682
Investment properties	8.737.565	7.979.058
Other (including derivative financial instruments)	184.407	166.798
Total assets	9.030.023	8,287,538
Payables and provisions	279.511	256.424
Interest bearing liabilities	3.513.663	3.195.047
Other (including derivative financial instruments)	110.283	120.554
Total liabilities	3,903,457	3,572,025
Less minority interest	422.592	427.851
Net assets (after minority interest)	4,703,974	4.287.662

statement of changes in equity

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
	31 December 2006 - 31 December 2005
Total equity at the beginning of the half year	4.715.513	3.865.713
Opening AIFRS adjustments	2.5	3,443
Exchange differences on translation of
foreign operations	(164)	3 783
Net profit	519.302	346.091
Contribution of equity	71.680	45.407
Distributions provided for or paid	(159.646)	(150.735)
Minority interest movements during the half year	(20.119)	(2.350)
equity at the end of the half year	5.126.566

financial reports (continued)

consolidated cash flow

		31 December 2006 31 December 2005
	(\$'000)	(\$'000)
Net cash inflow from operating activities	144.425	149.465
Net cash outflow from investing activities	(492.709)	(296.034)
Net cash inflow from financing activities	312.426	342.230
Net increase/(decrease) in cash and
cash equivalents	(35.858)	(4.339)
Cash and cash equivalents at the beginning of the period	106.428	68 959
Effects of exchange rate changes on cash and cash equivalents	123	1 ZON 3
Cash and cash equivalents at the end of the half year	70.691	66.320

investor information

DB RRFFF Trust is listed on the Australian Stock Exchange (ASX). The ASX code is DRT.

Security holders wishing to trade their security. holding will need to use the services of a stockbroker or online broking facility to be able to trade their DB RRFFF Trust securities.

distribution payments

Distributions are paid for the six months to December and June each year. Security holders can receive their distribution by direct credit into their nominated bank account or receive additional DB RRFFF Trust securities via the distribution reinvestment plan.

Security holders wishing to change their method of payment should contact the DB RREEF Infoline on 1800 819 675.

annual tax statement

After the end of each financial year you will receive a tax statement. This statement summarises the distributions paid to you. during the year and includes information. required to complete your tax return.

apportionment percentages

Apportionment percentages for DB RREEF Trust stapled securities since stapling can be found on the tax information page on our website at www.dbrreef.com or by contacting the Infoline on 1800 819 675.

enauiries

For englaries about DB RRFFF Trust. please call:

Infoline: 1800 819 675 Outside Australia +61 2 8280 7126 Or email: enquires.drt@dbrreef.com

website

Information relating to the DB RREEF Trust can be found at www.dbrreef.com/drt

The website contains information on DB RREEF's products, property portfolio and corporate information. The site allows security holders access to their investment details. product reports and ASX announcements.

complaints handling

Any security holder wishing to lodge a complaint should do so in writing and ferward. it to DB RREEF Funds Management Limited at the address shown in the directory. DB RREEF Funds Management Limited is a member of Financial Industry Complaints. Service Limited (FICS), an independent dispute resolution scheme who may be contacted at:

Financial Industry Complaints Services Limited PO Box 579 Collins Street West Melbourne VIC 8007

Phone: 1300 780 808 Facsimile +613 9621 2291 Email: fics@fics.asn.au Website: www.fics.asn.au.

directory

DB RREEF Diversified Transf ARSN 089 324 541

DB RREEF Industrial Trust ARSN 090 879 137

DB RREEF Office Trust ARSN 090 768 531

DB RREEF Operations Trust ARSN 110 521 223

responsible entity

DB RREEF Funds Management Limited ABN 24 060 920 783

registered office of responsible entity

Level 9, 343 George Street Sydney NSW 2000

PO Box R1822 Royal Exchange Sydney NSW 1225

Phone: +61 2 9017 1100 Fax: +61 2 9017 1101

directors of the responsible entity

Christopher T Beare, Chair Elizabeth A Alexander AM Barry R Brownjohn Stewart F Ewen OAM Victor P Hoog Antink Charles B Leitner III (Alternate Andrew 3 Fay) Brian E Scullin

secretaries of the responsible entity

Tanya L Cox Bohn C Easy

investor enophies

Ernall: enquiries.drt@dbrreef.com Freecall: 1800 819 675 Phone: +61 2 9017 1330 Website: www.dbrreef.com

auditors

PricewaterhouseCoopers Chartered Accountants 201 Sussex Street Svdney NSW 2000

security registry

Eink Market Services Limited Level 12, 680 George Street Sydney NSW 2000

Locked Bag A14 Sydney South NSW 1235

المريد والمحافظ فالمحافظ والمتعاقب والمحافر فالرماح والمحافر

Phone: +61 2 8280 7126 Freecall: 1800 819 675 Fax: +61 2 9287 0303 Eraal: registrars@linkmarketservices.com.au Website: www.linkmarketservices.com.au

For enquiries regarding your holding you can either contact the Security Registry, or access your holding details via the web at www.dbrreef.com/drt and follow the links to the security registry page. Listed on the Australian Stock Exchange, [ASX Code: DRT. NE | WALCOMENTAL

InfoLine, 1800 819 675, Monday to Friday. between 8.30am and 5.30pm (Sydney time).

Lumley Centre, Auckland, NZ