AI assistant
DEXUS Interim / Quarterly Report 2008
64807_rns_2008-02-20_05b57fe7-8b7b-4f63-aece-43600af55c6b.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
DEXUS 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 1132 Email [email protected]
21 February 2008
The Manager Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000
Dear Sir / Madam
DEXUS Property Group (formerly DB RREEF Trust, ASX: DRT) Half year results for the period ending 31 December 2007
Results for Announcement to the Market
DEXUS Funds Management Limited, as responsible entity for DEXUS Property Group (formerly DB RREEF Trust) (DRT), provides the following documents to the Australian Stock Exchange:
- ASX Release DEXUS Property Group Half Year Results to 31 December 2007;
- Appendix 4D Statement "Results for announcement to the market"; and
- Financial Statements of DEXUS Diversified Trust (formerly DB RREEF Diversified Trust) for the period ending 31 December 2007, including Independent Audit Report from PricewaterhouseCoopers.
For further information, please contact:
| CEO, DEXUS Property Group: | Victor Hoog Antink | (02) 9017 1129 |
|---|---|---|
| Fund Manager, DEXUS Property Group: | Ben Lehmann | (02) 9017 1266 |
| Investor Relations: | Karol O'Reilly | (03) 8611 2930 |
| Media Relations: | Emma Parry | (02) 9017 1133 |
Yours sincerely
Tanya Cox Company Secretary
21 February 2008
DEXUS Property Group reports strong half year performance
DEXUS Property Group today announced a strong performance across the business during the half year to 31 December 2007.
Key financial highlights for the period included:
- Net profit attributable to investors of \$432.7 million
- Distribution of \$173 million representing 5.90 cents per security, up 5.4%
- Funds under management:
- Owned property assets \$9 billion
- Third party funds \$6.2 billion
- Total \$15.2 billion
- Total assets \$9.7 billion, up 2.2% Net tangible assets \$1.90, up 4.4%
- Gearing 31.3%
Portfolio operational highlights included:
- Portfolio occupancy 95.1%
- Like for like income growth 4.4%
- Lease duration steady at 5.3 years
- Acquisitions \$711 million
- Disposals \$1 billion
- Development pipelines \$2.1 billion
Victor Hoog Antink, Chief Executive Officer, DEXUS Property Group said "I am pleased to report on another strong result for the half year ending December 2007. Against a background of increasing market volatility, our high quality portfolio and proactive management approach to both property and financial fundamentals continued to deliver consistent earnings growth.
It has been a very active six months, during which time we completed the sale of the retail portfolio to our third party funds management platform, on whose behalf we raised in excess of \$1 billion.
Our development portfolio also gained significant momentum in the period, with the launch of our two 6 Star Green Star flagship developments in Brisbane and Sydney. In addition to creating sustainable future product, we have continued to realise value through the recycling of assets. This activity, combined with our strong capital base means we are even better positioned to take advantage of future market opportunities".
Office
The office portfolio contributed \$116 million or 44.6% percent to net property income. Like for like rent grew at 5 percent over the period and as at 31 December 2007 the portfolio is 9% under rented, providing scope for solid future growth. Occupancy rate remains high at 98 percent. Our high quality office portfolio, which is 92% Premium or A-grade, is valued at \$4.3 billion, up 7.5 percent. Revaluations during the period were \$293 million.
We have commenced the development of two 6 Star Green Star flagship office developments at 123 Albert Street, Brisbane, QLD and Space 1 Bligh Street, Sydney NSW. 123 Albert Street commenced construction earlier in February with Rio Tinto pre-committed to leasing 67 percent of the building.
Victor Hoog Antink said "Today we can announce that we are about to appoint Grocon as the builder for Space 1 Bligh in Sydney, with demolition and construction of Sydney's next iconic CBD office tower to begin in March 2008. Negotiations with tenants are progressing.
DEXUS is committed to once again leading the way in next generation sustainability and workspace design by continuing to provide the best in class properties for our customers."
Industrial
Overall the industrial sector performed well, the Australian and US property fundamentals were strong during the period with continued high occupancy levels and strong retention rates with our corporate customer base.
"Our portfolio is well diversified with a strong weighting to Australia and the US and whilst we expect to see a continued softening in Europe and the US market coming off the historic market highs, the quality and diversification of our portfolio stands us in good stead to deliver consistently strong returns" commented Victor Hoog Antink.
Australian portfolio
The Group's Australian industrial portfolio contributed \$59 million or 22.7 percent of net property income. Occupancy remains stable at 98.5 percent, with average lease duration of 4.5 years. Revaluations during the period were \$88 million representing an increase of 5.1 percent. The Australian industrial development pipeline was further increased by the acquisition of 47 hectares of land at Greystanes Industrial Estate, NSW in December 2007.
European portfolio
DEXUS Property Group's European industrial portfolio contributed \$11 million to net property income or 4.2 percent. Occupancy remains stable at 92.0 percent, with an average lease duration of 3.9 years. The European portfolio is valued at \$300 million, representing 3.7 percent of the DEXUS Property Group portfolio. Revaluations during the period were down \$34 million as a result of the softening conditions in the European property markets.
North American portfolio
The Group's North American industrial portfolio contributed \$54 million or 20.8 percent to net property income with like on like growth of 7%. Occupancy stands at 92.3 percent, with average lease duration of 3.6 years. Revaluations during the period declined moderately by 0.5% percent. The North American industrial development pipeline expanded after acquisitions in San Antonio, Texas and Chicago, Illinois US.
Third party funds
During the period the Group raised in excess of \$1 billion of equity in support of a number of acquisitions. As a result of this activity, the Group's third party funds management business grew by 34 percent to \$6.2 billion. The funds continued to deliver strong performance in the period, again outperforming the external benchmark index over both three and five years.
Financial and capital management
Our focused and prudent approach to financial and capital management continues to serve us well, particularly in the current market conditions. DEXUS Property Group has continued to be proactive in the area of capital management by recycling over \$950 million of assets and the early refinancing of the majority of its 2008 debt maturities in 2007.
Outlook
"The group has delivered a solid performance across all sectors, underpinned by our strong operating platform and our proactive property management approach.
We have a premium quality, diversified portfolio which we are expanding through our development pipelines to continue to deliver world-class sustainable properties and maximise returns.
Today's announcement on the full internalisation of our management structure, combined with our solid capital base and prudent financial management approach, positions us well to take advantage of future opportunities, arising from this more volatile market.
DEXUS Property Group reconfirms full year distribution guidance of 11.9 cents per stapled security, representing a 5.3 percent increase over the year to 30 June 2007", said Victor Hoog Antink.
For further information contact:
| Victor Hoog Antink, CEO: | (02) 9017 1130 |
|---|---|
| Ben Lehmann, Fund Manager: | (02) 9017 1266 |
| Karol O'Reilly, Investor Relations: | 0405 134 856 |
| Emma Parry, Media Relations: | 0421 000 329 |
About DEXUS (ASX: DXS – effective 25 Feb 08)
DEXUS is one of Australia's largest integrated property groups with total assets under management of \$15.2 billion. DEXUS's listed property portfolio, DEXUS Property Group, comprises more than \$9 billion of direct property assets in Australia, New Zealand, the United States, Canada and Europe. The unlisted portfolio comprises \$6.2 billion of Australian and New Zealand assets. DEXUS is committed to the long term integration of sustainability practices throughout its property portfolio. www.dexus.com
DEXUS Property Group ARSN 089 0324 541
Financial reporting for the half year ended 31 December 2007
| DEXUS Diversified Trust | Note 1 | |||
|---|---|---|---|---|
| (ARSN 089 324 541) | ||||
| 31 Dec 2007 | 31 Dec 2006 | % change | ||
| \$'000 | \$'000 | |||
| Revenue from ordinary activities | 344,538 | 353,151 | -2.4% | |
| Total income | 691,672 | 728,324 | -5.0% | |
| Net profit attributable to security holders after tax and after minority interests |
432,680 | 510,482 | -15.2% | |
| Distribution to security holders | 172,992 | 159,646 | 8.4% | |
| Distributions per security for the period ending |
CPU | CPU | ||
| 31 December | Note 2 | 5.90 | 5.60 | 5.4% |
| \$'000 | \$'000 | |||
| Total assets | 9,692,728 | 9,030,023 | 7.3% | |
| Total borrowings | 2,876,271 | 3,513,663 | -18.1% | |
| Security holders equity | 5,585,453 | 4,703,974 | 18.7% | |
| Market capitalisation | 5,864,132 | 5,074,461 | 15.6% | |
| \$ per unit | \$ per unit | |||
| Net tangible assets (excluding minority interests) |
\$1.90 | \$1.65 | 15.2% | |
| Securities price | \$2.00 | \$1.78 | 12.4% | |
| Securities on issue (000) | 2,932,066 | 2,850,821 | 2.9% | |
| Record date | 31 Dec 2007 | 29 Dec 2006 | ||
| Payment date | 29 Feb 2008 | 28 Feb 2007 |
Distribution Reinvestment Plan (DRP)
DXS operates a DRP and details of the terms and conditions can be obtained from the DXS website at www.dexus.com
The record date for DRP election notices for the distribution period ending 31 December 2007 was 31 December 2007.
New entities
No new entities were acquired during the half year ended 31 December 2007.
Results commentary
DEXUS Property Group's distributions for the half year have increased 5.4 percent to 5.9 cents per security. Total assets increased 2.2 percent over the period to \$9.7 billion at 31 December 2007. Net tangible assets per security increased 4.4 percent to \$1.90 per security. Gearing has reduced to 31.3 percent as at 31 December 2007.
Specific movements in the income statements for the half year ended 31 December 2007 were:
Total revenue from ordinary activities was \$345 million (2006: \$353 million), down 2.4 percent primarily as a result of:
- the disposal of the retail properties to DEXUS Wholesale Property Fund for \$950 million in October 2007; and
- the disposal of a 50% interest in the Zenith, North Sydney, NSW for \$126 million in January 2007;
offset by:
an increase in income arising from the underlying property portfolio.
Total income was \$692 million (2006: \$728 million) down 5.1 percent primarily as a result of:
- the disposal of the retail properties to DEXUS Wholesale Property Fund for \$950 million in October 2007;
- the disposal of a 50% interest in the Zenith, North Sydney, NSW for \$126 million in January 2007; and
- impact of revaluations during the period;
offset by:
- profits resulting from the sale of a 50 percent interest in the Coles Chilled Distribution Facility at North Laverton, Vic for \$58 million in December 2007; and
- an increase in income arising from the underlying property portfolio.
Net Profit attributed to security holders after minority holders was \$433 million (2006: \$511 million) down 15.2 percent, primarily as a result of:
- the disposal of the retail properties to DEXUS Wholesale Property Fund for \$950 million in October 2007;
- the disposal of a 50% interest in the Zenith, North Sydney, NSW for \$126 million in January 2007;
- impact of revaluations during the period; and
- net movements in the fair value of debt and currency derivatives;
- offset by:
- profits resulting from the sale of a 50 percent interest in the Coles Chilled Distribution Facility at North Laverton, Vic for \$58 million in December 2007; and
- an increase in income arising from the underlying property portfolio.
Distributions to security holders was \$173 million (2006: \$160 million) an increase of 8.4 percent reflecting an overall increase in income arising from the underlying property portfolio along with profits resulting from the sale of a 50 percent interest in the Coles Distribution Facility at North Laverton.
Specific movements in the Balance Sheets for the half year ended 31 December 2007 were:
- the disposal of the retail portfolio together with the disposal of the Coles Distribution Facility at North Laverton offset by, acquisitions and capital expenditure, revaluations during the period together with the impact of derivative financial instruments primarily resulted in total asset growth of 2.2 percent to \$9.7 billion (June 2007: \$9.5 billion)
- total borrowings for the group decreased 14.2% to \$2.9 billion (June 2007: \$3.4 billion) primarily as a result of the disposal of the Retail portfolio, the disposal of the Coles Distribution Facility at North Laverton together with the impact of the June 2007 Distribution Reinvestment Plan. This was partially offset by acquisitions and capital expenditure settled and incurred during the period. Gearing, on a look through basis, as at 31 December 2007 was 31.3 percent (June 2007: 35.6 percent).
- Net Assets increased by 1.5 percent to \$5.8 billion (June 2007: \$5.7 billion).Net tangible assets per security were \$1.90 (June 2007: \$1.82), an increase of 4.4% primarily as a result of revaluations during the period and net movements in the fair value of debt and currency derivatives.
For additional information regarding the results of DEXUS Property Group for the half-year ended 31 December 2007, refer to the attached ASX Release. Attached with this Appendix
4D is a copy of the Financial Statements for the half-year ended 31 December 2007, together with the Independent Auditors Review Report from PricewaterhouseCoopers.
Notes
Note 1: For the purposes of statutory reporting, the stapled entity, known as DXS, must be accounted for as a consolidated group. Accordingly, one of the stapled entities must be the "deemed acquirer" of all other entities in the group. DEXUS Diversified Trust has been chosen as the deemed acquirer of the balance of the DXS stapled entities, comprising DEXUS Industrial Trust, DEXUS Office Trust and DEXUS Operations Trust.
Note 2: The distribution for the period 1 July 2007 to 31 December 2007 is the aggregate of the distributions from DEXUS Diversified Trust, DEXUS Industrial Trust and DEXUS Office Trust. The Annual Tax Statement, issued as at 30 June 2008, will provide details of the components of DXS'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 2007
| Contents | Page |
|---|---|
| DDF Directors' Report DIT Directors' Report DOT Directors' Report DRO Directors' Report |
1 3 5 7 |
| DDF Auditor's Independence Declaration DIT Auditor's Independence Declaration DOT Auditor's Independence Declaration DRO Auditor's Independence Declaration |
9 10 11 12 |
| Income Statements | 13 |
| Balance Sheets | 14 |
| Statements of Changes in Equity | 15 |
| Cash Flow Statements | 16 |
| Notes to the Financial Statements | 17 |
| DDF Directors' Declaration DIT Directors' Declaration DOT Directors' Declaration DRO Directors' Declaration |
45 46 47 48 |
| Independent Review Report to the Security Holders of DDF Independent Review Report to the Unitholders of DIT Independent Review Report to the Unitholders of DOT Independent Review Report to the Unitholders of DRO |
49 51 53 55 |
DB RREEF Trust (DRT) (ASX Code: DRT), consists of DB RREEF Diversified Trust (DDF), DB RREEF Industrial Trust (DIT), DB RREEF Office Trust (DOT), and DB RREEF Operations Trust (DRO) (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 2007 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 Page No. 1 of 56 DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
The Directors of DB RREEF Funds Management Limited (DRFM) as Responsible Entity of DB RREEF Diversified Trust (the Trust) and its consolidated entities (DB RREEF Trust or the Trusts) present their Directors' Report together with the consolidated Financial Statements for the half-year ended 31 December 2007.
Directors
The following persons were Directors or Alternate Directors of DRFM at all times during the half-year and up to the date of this Directors' report, unless otherwise stated:
- C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1,4,5
- E A Alexander AM, BComm, FCA, FAICD, FCPA 1,2,3,5
- B R Brownjohn BComm 1,2,5
- S F Ewen OAM, FILE 1,4
- V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD 5
- C B Leitner III BA
- B E Scullin BEc 2,3,4 A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner) 4
- 1 Independent Director
- 2 Audit and Risk Committee Member
- 3 Compliance Committee Member
- 4 Nomination and Remuneration Committee Member
- 5 Finance Committee Member
No directors held an interest in the Trust as at 31 December 2007 or at the date of this report.
Review of operations
During the half-year, the operations of DB RREEF Trust consisted of investment in real property in Australia, Europe, New Zealand, Canada and United States of America. The results of the operations of DB RREEF Trust have been in line with expectations.
The results for the half-year ended 31 December 2007 were:
- Profit attributable to stapled security holders was \$432.7 million (2006: \$510.5 million);
- Distributions paid and payable to stapled security holders was \$173.0 million (2006: \$159.6 million);
- Total assets were \$9.7 billion (2007: \$9.5 billion); and
- Net assets were \$5.8 billion (2007: \$5.7 billion).
Acquisitions
Acquisition of remaining 20 percent interest in DB RREEF Industrial LLC
On 2 October 2007, DB RREEF Trust acquired the remaining 20 percent interest in the DB RREEF Industrial LLC joint venture with Calwest DBRIT, LLC (Calwest), taking its ownership to 100 percent. The acquisition price of CalWest's 20 percent interest was US\$316.9 million (\$357.2 million).
San Antonio, Texas, USA
Since July 2007, DB RREEF Industrial Properties, Inc. (US REIT) has settled the acquisition of the stablised assets in the Titan Portfolio for US\$53.9 million (AUD\$63.6 million). In addition, land was acquired for stage 1 developments for US\$6.6 million (AUD\$7.6 million).
Toronto, Canada
Acquisition of the second Whirlpool facility in Toronto, Canada was completed in December 2007 with a purchase price of CAD\$71.4 million (\$79.9 million).
Greystanes, NSW
On 21 December 2007, settlement occurred for the acquisition of a site at Greystanes. \$23.6 million was paid on settlement, with the remaining \$134.1 million to be paid upon completion of each of the four stages of development.
Chicago, Illinois, USA
In December 2007, DB RREEF Industrial, LLC acquired a three building industrial portfolio totaling 255,387 square feet located in the O'Hare submarket of Chicago. The portfolio is comprised of newly constructed distribution facilities with an acquisition price of US\$29.5 million (AUD\$34.5 million).
DB RREEF DIVERSIFIED TRUST DIRECTORS' REPORT (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Review of operations (continued)
Disposals
Retail portfolio sale to DB RREEF Wholesale Property Fund (DWPF) On 17 October 2007, DDF disposed of its 50 percent interest in Mt Druitt Trust, West Lakes Shopping Centre, North Lakes Shopping Centre, Plenty Valley Town Centre and Westfield Hurstville for \$950.4 million.
Sale of Lot 3, Boundary Road, North Laverton VIC
In May 2007, DIT entered into an agreement for the sale of 50 percent of the Coles Myer development at Boundary Rd, Laverton North for \$58.0 million. Settlement occurred on 18 December 2007.
Significant changes in the state of affairs
The Directors of DRFM 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 DB RREEF Trust, the results of those operations, or the state of DB RREEF Trust's affairs in future financial periods.
Combined financial statements
DB RREEF Trust 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 stapled group in adjacent columns in one financial report.
Rounding of amounts and currency
DB RREEF Trust comprises 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.
Auditor
PricewaterhouseCoopers (PwC) continues in office in accordance with section 327 of the Corporations Act 2001.
A copy of the Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 9.
Management representation
The Chief Executive Officer and the Chief Financial Officer have reviewed DB RREEF Trust'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 DB RREEF Trust'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
This Directors' Report is made in accordance with a resolution of the Directors.
Christopher T Beare Chair
20 February 2008 Victor P Hoog Antink
Chief Executive Officer 20 February 2008
DB RREEF INDUSTRIAL TRUST Page No. 3 of 56 DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 for the half-year ended 31 December 2007.
Directors
The following persons were Directors or Alternate Directors of DRFM at all times during the half-year and up to the date of this Directors' report, unless otherwise stated:
C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1,4,5 E A Alexander AM, BComm, FCA, FAICD, FCPA 1,2,3,5 B R Brownjohn BComm 1,2,5 S F Ewen OAM, FILE 1,4 V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD 5 C B Leitner III BA B E Scullin BEc 2,3,4 A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner) 4
1 Independent Director
- 2 Audit and Risk Committee Member
- 3 Compliance Committee Member
- 4 Nomination and Remuneration Committee Member
5 Finance Committee Member
No directors held an interest in DIT as at 31 December 2007 or at the date of this report.
Review of operations
A review of the Trusts' operations during the half-year and the results of those operations of the DB RREEF Trust stapled security, of which DIT forms part thereof, is set out in the 31 December 2007 half-year Directors' Report of DB RREEF Diversified Trust and forms part of this Directors Report.
Significant changes in the state of affairs
The Directors of DRFM 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 the state of DIT's affairs in future financial periods.
Rounding of amounts and currency
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.
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 Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 10.
DB RREEF INDUSTRIAL TRUST DIRECTORS' REPORT (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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
This Directors' Report is made in accordance with a resolution of the Directors.
Christopher T Beare Chair 20 February 2008
Hoog Antink Chief Executive Officer 20 February 2008
DB RREEF OFFICE TRUST Page No. 5 of 56 DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 for the half-year ended 31 December 2007.
Directors
The following persons were Directors or Alternate Directors of DRFM at all times during the half-year and up to the date of this Directors' report, unless otherwise stated:
C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1,4,5 E A Alexander AM, BComm, FCA, FAICD, FCPA 1,2,3,5 B R Brownjohn BComm 1,2,5 S F Ewen OAM, FILE 1,4 V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD 5 C B Leitner III BA B E Scullin BEc 2,3,4 A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner) 4
1 Independent Director
2 Audit and Risk Committee Member
3 Compliance Committee Member
4 Nomination and Remuneration Committee Member
5 Finance Committee Member
No directors held an interest in DOT as at 31 December 2007 or at the date of this report.
Review of operations
A review of the Trusts' operations during the half-year and the results of those operations of the DB RREEF Trust stapled security, of which DOT forms part thereof, is set out in the 31 December 2007 half-year Directors' Report of DB RREEF Diversified Trust and forms part of this Directors Report.
Significant changes in the state of affairs
The Directors of DRFM 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 the state of DOT's affairs in future financial periods.
Rounding of amounts and currency
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.
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 Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 11.
DB RREEF OFFICE TRUST DIRECTORS' REPORT (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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
This Directors' Report is made in accordance with a resolution of the Directors.
Christopher T Beare Chair 20 February 2008
Victor P Hoog Antink Chief Executive Officer 20 February 2008
DB RREEF OPERATIONS TRUST Page No. 7 of 56 DIRECTORS' REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 for the half-year ended 31 December 2007.
Directors
The following persons were Directors or Alternate Directors of DRFM at all times during the half-year and up to the date of this Directors' report, unless otherwise stated:
C T Beare BSc, BE (Hons), MBA, PhD, FAICD 1,4,5 E A Alexander AM, BComm, FCA, FAICD, FCPA 1,2,3,5 B R Brownjohn BComm 1,2,5 S F Ewen OAM, FILE 1,4 V P Hoog Antink BCom, MBA, FCA, FAPI, MAICD 5 C B Leitner III BA B E Scullin BEc 2,3,4 A J Fay BAg.Ec (Hons), ASIA (Alternate to C B Leitner) 4
1 Independent Director
2 Audit and Risk Committee Member
3 Compliance Committee Member
4 Nomination and Remuneration Committee Member
5 Finance Committee Member
No directors held an interest in DRO as at 31 December 2007 or at the date of this report.
Review of operations
A review of the Trusts' operations during the half-year and the results of those operations of the DB RREEF Trust stapled security, of which DRO forms part thereof, is set out in the 31 December 2007 half-year Directors' Report of DB RREEF Diversified Trust and forms part of this Directors Report.
Significant changes in the state of affairs
The Directors of DRFM 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 the state of DRO's affairs in future financial periods.
Rounding of amounts and currency
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 Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 12.
DB RREEF OPERATIONS TRUST DIRECTORS' REPORT (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 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
This Directors' Report is made in accordance with a resolution of the Directors.
Christopher T Beare Chair 20 February 2008
Victor P Hoog Antink Chief Executive Officer
20 February 2008
Auditor's Independence Declaration
PricewaterhouseCoopers ABN 52 780 433 757
Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au
As lead auditor for the review of DB RREEF Diversified Trust for the half year ended 31 December 2007, 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 review; and
- b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of DB RREEF Diversified Trust and the entities it controlled during the period.
JADum
JA Dunning Partner PricewaterhouseCoopers
Auditor's Independence Declaration
PricewaterhouseCoopers ABN 52 780 433 757
Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au
As lead auditor for the review of DB RREEF Industrial Trust for the half year ended 31 December 2007, 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 review; and
- b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of DB RREEF Industrial Trust and the entities it controlled during the period.
JADUMIN
JA Dunning Partner PricewaterhouseCoopers
Auditor's Independence Declaration
PricewaterhouseCoopers ABN 52 780 433 757
Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au
As lead auditor for the review of DB RREEF Office Trust for the half year ended 31 December 2007, 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 review; and
- b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of DB RREEF Office Trust and the entities it controlled during the period.
JA Dunning Partner PricewaterhouseCoopers
Auditor's Independence Declaration
ABN 52 780 433 757
PricewaterhouseCoopers
Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au
As lead auditor for the review of DB RREEF Operations Trust for the half year ended 31 December 2007, 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 review; and
- b) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of DB RREEF Operations Trust and the entities it controlled during the period.
VADun
JA Dunning Partner PricewaterhouseCoopers
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 13 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST INCOME STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Notes | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | ||
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |||
| Revenue from ordinary activities | ||||||||||
| Property revenue | 339,304 | 348,286 | 66,317 | 53,441 | 118,031 | 127,812 | 2,368 | 2,662 | ||
| Interest revenue | 5,234 | 4,865 | 286 | 471 | 725 | 469 | 3,129 | 2,749 | ||
| Interest revenue from the Trusts | - | - | - | - | - | 2,143 | 41,756 | 41,066 | ||
| Recoverables from the Trusts | - | - | - | - | - | - | 1,096 | 678 | ||
| Total revenue from ordinary activities | 344,538 | 353,151 | 66,603 | 53,912 | 118,756 | 130,424 | 48,349 | 47,155 | ||
| Share of net profits of associates accounted for using the equity method |
1,472 | 29,564 | - | 5,182 | - | 5,182 | 1,931 | 4,016 | ||
| Proceeds from sale of inventory | - | 3,959 | - | - | - | - | - | - | ||
| Net gain on sale of investment properties | 7,285 | 82 | 5,919 | 67 | - | - | - | - | ||
| Net fair value gain of investment properties | 336,090 | 340,904 | 36,029 | 13,086 | 263,048 | 269,236 | - | - | ||
| Net fair value gain of derivatives | - | - | - | 984 | - | - | - | - | ||
| Net foreign exchange gain | 2,220 | - | 1,160 | - | - | - | - | - | ||
| Other income | 67 | 664 | - | 244 | 57 | 281 | - | 88 | ||
| Total income | 691,672 | 728,324 | 109,711 | 73,475 | 381,861 | 405,123 | 50,280 | 51,259 | ||
| Expenses | ||||||||||
| Property expenses | (82,192) | (85,415) | (13,261) | (10,269) | (29,106) | (29,723) | (604) | (738) | ||
| Responsible Entity fees | (17,243) | (15,767) | (4,172) | (3,658) | (7,265) | (6,562) | - | - | ||
| Finance costs | 2 | (144,776) | (91,629) | (41,284) | (15,408) | (17,088) | (23,126) | (45,289) | (43,994) | |
| Net fair value loss of derivatives | (10,837) | (4,263) | (1,937) | - | (323) | (91) | (5,188) | (1,154) | ||
| Share of net losses of associates accounted for using | - | - | (6,837) | - | (4,088) | - | - | - | ||
| the equity method | ||||||||||
| Carrying value of inventory sold | - | (3,478) | - | - | - | - | - | - | ||
| Net foreign exchange loss | - | (658) | - | (278) | (3) | (55) | - | - | ||
| Depreciation | (1,063) | (1,389) | - | - | - | - | (1,063) | (1,389) | ||
| Other expenses | (4,176) | (2,584) | (1,675) | - | (469) | (645) | (221) | (32) | ||
| Total expenses | (260,287) | (205,183) | (69,166) | (29,613) | (58,342) | (60,202) | (52,365) | (47,307) | ||
| Profit before tax | 431,385 | 523,141 | 40,545 | 43,862 | 323,519 | 344,921 | (2,085) | 3,952 | ||
| Tax expense | ||||||||||
| Income tax benefit/(expense) | 1,832 | (315) | 702 | (700) | - | - | 1,129 | 385 | ||
| Withholding tax benefit/(expense) | 4,400 | (3,524) | (647) | - | - | - | - | - | ||
| Total tax expense | 6,232 | (3,839) | 55 | (700) | - | - | 1,129 | 385 | ||
| Profit after tax | 437,617 | 519,302 | 40,600 | 43,162 | 323,519 | 344,921 | (956) | 4,337 | ||
| Profit attributable to: | ||||||||||
| Equity holders of the parent entity | 70,271 | 119,593 | 40,600 | 43,162 | 321,884 | 343,388 | (956) | 4,337 | ||
| Equity holders of other stapled entities (minority interest) | 362,409 | 390,889 | - | - | - | - | - | - | ||
| Stapled security holders | 432,680 | 510,482 | 40,600 | 43,162 | 321,884 | 343,388 | (956) | 4,337 | ||
| Net profit attributable to other minority interests | 4,937 | 8,820 | - | - | 1,635 | 1,533 | - | - | ||
| Net profit | 437,617 | 519,302 | 40,600 | 43,162 | 323,519 | 344,921 | (956) | 4,337 | ||
| Earnings per unit | Cents | Cents | Cents | Cents | Cents | Cents | Cents | Cents | ||
| Basic earnings per unit on profit attributable to equity holders of the parent entity |
15 | 2.41 | 4.22 | 1.39 | 1.52 | 11.02 | 12.11 | (0.03) | 0.15 | |
| Diluted earnings per unit on profit attributable to equity holders of the parent entity |
15 | 2.41 | 4.22 | 1.39 | 1.52 | 11.02 | 12.11 | (0.03) | 0.15 |
The above Income Statements should be read in conjunction with the accompanying notes.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 14 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST BALANCE SHEETS AS AT 31 DECEMBER 2007
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Notes | 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | ||
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |||
| Current assets | ||||||||||
| Cash and cash equivalents | 87,656 | 59,603 | 14,324 | 13,105 | 15,805 | 13,113 | 3,935 | 1,029 | ||
| Receivables | 46,411 | 36,389 | 8,323 | 8,357 | 7,747 | 4,299 | 17,082 | 11,900 | ||
| Derivative financial instruments | 675,935 | 145,425 | 117,133 | 46,031 | 58,100 | 48,777 | 51,179 | 74,655 | ||
| Other financial assets | 4 | 51,936 | 51,936 | - | - | - | - | 51,936 | 51,936 | |
| Loans with related parties | 7 | 27,636 | - | 138,948 | 138,948 | 27,636 | - | - | - | |
| Current tax assets | 195 | 112 | 195 | 74 | - | - | - | 38 | ||
| Other | 13,596 | 9,664 | 3,323 | 4,138 | 1,706 | 1,872 | 13 | 55 | ||
| Total current assets | 903,365 | 303,129 | 282,246 | 210,653 | 110,994 | 68,061 | 124,145 | 139,613 | ||
| Non-current assets | ||||||||||
| Investment properties | 3 | 8,369,124 | 8,585,703 | 1,625,893 | 1,431,220 | 3,344,960 | 3,129,783 | - | - | |
| Property plant and equipment | 5 | 288,634 | 314,021 | 95,515 | 191,397 | 27,992 | 27,530 | 84,906 | 56,906 | |
| Investments accounted for using the equity method | 6 | 112,281 | 270,155 | 377,580 | 270,193 | 94,414 | 40,750 | 17,867 | 17,886 | |
| Deferred tax assets | 6,398 | 3,921 | 792 | 314 | - | - | 5,606 | 3,607 | ||
| Loans with related parties | 7 | - | - | - | - | - | 87,281 | 1,291,879 | 1,625,754 | |
| Other | 12,926 | 9,907 | 478 | 435 | 7,644 | 2,950 | 62 | 1,283 | ||
| Total non-current assets | 8,789,363 | 9,183,707 | 2,100,258 | 1,893,559 | 3,475,010 | 3,288,294 | 1,400,320 | 1,705,436 | ||
| Total assets | 9,692,728 | 9,486,836 | 2,382,504 | 2,104,212 | 3,586,004 | 3,356,355 | 1,524,465 | 1,845,049 | ||
| Current liabilities | ||||||||||
| Payables | 113,482 | 124,509 | 17,388 | 23,638 | 34,030 | 26,754 | 15,297 | 18,031 | ||
| Interest bearing liabilities | 8 | 123,734 | 18,443 | 61,873 | - | - | - | 59,708 | 7,022 | |
| Loans with related parties | 7 | 26,391 | - | - | - | 82,075 | 55,684 | 48,932 | 48,932 | |
| Current tax liabilities | 916 | 1,930 | 558 | 328 | - | - | 358 | 1,602 | ||
| Provisions | 172,992 | 164,992 | 20,591 | 27,000 | 31,245 | 63,946 | 4,282 | 5,576 | ||
| Derivative financial instruments | 634,708 | 21,333 | 99,889 | 7,958 | 5,240 | 3,257 | 56,476 | 74,443 | ||
| Other | 2,808 | 3,150 | - | - | - | - | - | 13 | ||
| Total current liabilities | 1,075,031 | 334,357 | 200,299 | 58,924 | 152,590 | 149,641 | 185,053 | 155,619 | ||
| Non-current liabilities | ||||||||||
| Interest bearing liabilities | 8 | 2,752,537 | 3,334,884 | 16,546 | 17,169 | 499,510 | 843,727 | 1,241,471 | 1,589,128 | |
| Deferred tax liabilities | 64,823 | 73,809 | 640 | 422 | - | - | 83 | 27 | ||
| Financial liability with other minority interests | - | 28,305 | - | - | - | - | - | - | ||
| Loans with related parties | 7 | - | - | 1,022,120 | 922,312 | 269,760 | - | 88,352 | 87,281 | |
| Other | 8,863 | 10,538 | 761 | 880 | 272 | 448 | - | - | ||
| Total non-current liabilities | 2,826,223 | 3,447,536 | 1,040,067 | 940,783 | 769,542 | 844,175 | 1,329,906 | 1,676,436 | ||
| Total liabilities | 3,901,254 | 3,781,893 | 1,240,366 | 999,707 | 922,132 | 993,816 | 1,514,959 | 1,832,055 | ||
| Net assets | 5,791,474 | 5,704,943 | 1,142,138 | 1,104,505 | 2,663,872 | 2,362,539 | 9,506 | 12,994 | ||
| Equity | ||||||||||
| Equity attributable to equity holders of the parent entity | ||||||||||
| Contributed equity | 9 | 1,180,957 | 1,151,526 | 740,465 | 722,005 | 1,475,026 | 1,453,980 | 8,598 | 6,848 | |
| Reserves | (1,454) | (925) | (1,790) | (954) | 201 | 4,008 | - | - | ||
| Undistributed income | 792,645 | 839,248 | 403,463 | 383,454 | 984,507 | 700,392 | 908 | 6,146 | ||
| Parent entity security holders' interest | 1,972,148 | 1,989,849 | 1,142,138 | 1,104,505 | 2,459,734 | 2,158,380 | 9,506 | 12,994 | ||
| Equity attributable to equity holders of other entities stapled to DDF (minority interest) |
||||||||||
| Contributed equity | 9 | 2,224,089 | 2,182,833 | - | - | - | - | - | - | |
| Reserves | (1,591) | 3,054 | - | - | - | - | - | - | ||
| Undistributed income | 1,390,807 | 1,091,034 | - | - | - | - | - | - | ||
| Other stapled security holders' interest | 3,613,305 | 3,276,921 | - | - | - | - | - | - | ||
| Stapled security holders' interest | 5,585,453 | 5,266,770 | 1,142,138 | 1,104,505 | 2,459,734 | 2,158,380 | 9,506 | 12,994 | ||
| Other minority interest | 206,021 | 438,173 | - | - | 204,138 | 204,159 | - | - | ||
| Total equity | 5,791,474 | 5,704,943 | 1,142,138 | 1,104,505 | 2,663,872 | 2,362,539 | 9,506 | 12,994 | ||
The above Balance Sheets should be read in conjunction with the accompanying notes.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 15 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST STATEMENTS OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Notes | 31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
||
| Total equity at the beginning of the period | 5,704,943 | 4,715,513 | 1,104,505 | 944,816 | 2,362,539 | 1,912,053 | 12,994 | 15,597 | ||
| Exchange differences on translation of foreign operations |
(5,174) | (164) | (836) | (1,652) | (3,807) | 3,072 | - | - | ||
| Net income recognised directly in equity | (5,174) | (164) | (836) | (1,652) | (3,807) | 3,072 | - | - | ||
| Net profit | 437,617 | 519,302 | 40,600 | 43,162 | 323,519 | 344,921 | (956) | 4,337 | ||
| Total recognised income and expense for the period |
432,443 | 519,138 | 39,764 | 41,510 | 319,712 | 347,993 | (956) | 4,337 | ||
| Transactions with equity holders in their capacity as equity holders: |
||||||||||
| Contributions of equity, net of transaction costs Distributions provided for or paid Acquisition of minority interest |
10 | 70,687 (172,992) - |
71,680 (159,646) - |
18,460 (20,591) - |
16,138 (35,949) - |
21,046 (31,245) - |
26,722 (59,511) - |
1,750 (4,282) - |
517 (1,151) - |
|
| Transactions with other minority interest: Contributions of equity, net of transaction costs |
1,690 | 3,420 | - - |
- - |
- - |
- - |
- - |
- - |
||
| Distributions provided for or paid Disposal of minority interest |
10 | (8,601) (265,989) |
(9,736) - |
- - |
- - |
(8,180) - |
(7,593) - |
- - |
- - |
|
| Foreign currency translation reserve | 29,293 | (13,803) | - | - | - | - | - | - | ||
| Total transactions with equity holders | (345,912) | (108,085) | (2,131) | (19,811) | (18,379) | (40,382) | (2,532) | (634) | ||
| Total equity at the end of the period | 5,791,474 | 5,126,566 | 1,142,138 | 966,515 | 2,663,872 | 2,219,664 | 9,506 | 19,300 | ||
| Total recognised income and expense for the period is attributable to: |
||||||||||
| Equity holders of the parent entity - DDF unitholders Equity holders of other entities stapled to DDF (minority interest) |
69,742 357,764 |
118,010 392,308 |
39,764 - |
41,510 - |
318,077 - |
346,460 - |
(956) - |
4,337 - |
||
| Security holders of DB RREEF Diversified Trust | 427,506 | 510,318 | 39,764 | 41,510 | 318,077 | 346,460 | (956) | 4,337 | ||
| Other minority interest | 4,937 | 8,820 | - | - | 1,635 | 1,533 | - | - | ||
| Total recognised income and expense for the period | 432,443 | 519,138 | 39,764 | 41,510 | 319,712 | 347,993 | (956) | 4,337 |
The above Statements of Changes In Equity should be read in conjunction with the accompanying notes.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 16 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST CASH FLOW STATEMENTS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | |
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |
| Cash flows from operating activities | ||||||||
| Receipts in the course of operations (inclusive of GST) | 381,477 | 503,118 | 72,326 | 57,172 | 137,671 | 138,003 | 8,535 | 129,690 |
| Payments in the course of operations (inclusive of GST) | (136,829) | (272,645) | (25,845) | (80,406) | (47,023) | (48,717) | (1,137) | (6,658) |
| Interest received | 5,337 | 4,709 | 253 | 269 | 484 | 469 | 3,094 | 2,818 |
| Finance costs paid to financial institutions | (94,693) | (98,216) | (19,395) | (9,729) | (22,924) | (31,297) | (24,961) | (24,580) |
| Distributions received | 4,810 | 6,150 | 13,556 | 11,775 | 430 | 776 | - | - |
| Dividends received | 3,250 | 4,750 | - | - | - | - | 3,250 | 4,750 |
| Income and withholding taxes paid | (3,686) | (3,441) | (112) | - | - | - | (2,021) | (1,225) |
| Net cash inflow/(outflow) from operating activities | 159,666 | 144,425 | 40,783 | (20,919) | 68,638 | 59,234 | (13,240) | 104,795 |
| Cash flows from investing activities | ||||||||
| Proceeds from sale of investment properties | 1,007,909 | 24,059 | 58,000 | 24,059 | - | - | - | - |
| Proceeds from sale of inventory | - | 3,959 | - | - | - | - | - | - |
| Disposal of cash in Bent St Trust | (46) | - | - | - | (46) | - | - | - |
| Payments for capital expenditure on investment properties |
(95,667) | (67,264) | (12,566) | (10,533) | (24,607) | (15,686) | - | - |
| Payments for investment properties | (177,226) | (322,649) | (77,666) | (322,649) | - | - | - | - |
| Payments for investments | (253,179) | - | - | - | - | - | - | - |
| Payments for investments accounted for using the equity method |
- | (9,128) | (140,178) | (1,374) | - | - | - | (9,126) |
| Payments for property plant and equipment | (28,470) | (67,481) | - | (33,817) | (462) | (27,451) | (20,644) | (336) |
| Payments for capital expenditure on property plant and equipment |
(53,527) | (54,205) | (5,897) | (46,730) | - | - | (17,102) | - |
| Net cash inflow/(outflow) from investing activities | 399,794 | (492,709) | (178,307) | (391,044) | (25,115) | (43,137) | (37,746) | (9,462) |
| Cash flows from financing activities | ||||||||
| Increase in other minority interest | - | 1,634 | - | - | - | - | - | - |
| Borrowings provided to the Trusts | - | - | (115,279) | (61,767) | (40,834) | (43,164) | (1,015,305) | (267,854) |
| Borrowings provided by the Trusts | - | - | 130,367 | 67,659 | 395,399 | 169,720 | 1,122,524 | 156,464 |
| Equity Issued to minority Interests | 1,444 | - | - | - | - | - | - | - |
| Proceeds from borrowings | 1,278,681 | 1,369,995 | 259,772 | 491,544 | - | - | 704,000 | 745,000 |
| Repayment of borrowings | (1,708,867) | (965,981) | (128,247) | (89,658) | (344,500) | (97,041) | (753,500) | (733,000) |
| Distributions paid to security holders | (94,305) | (83,840) | (8,541) | (14,971) | (42,899) | (43,511) | (3,827) | - |
| Distributions paid to other minority interests | (8,361) | (9,382) | - | - | (7,940) | (7,239) | - | - |
| Net cash inflow/(outflow) from financing activities | (531,408) | 312,426 | 138,072 | 392,807 | (40,774) | (21,235) | 53,892 | (99,390) |
| Net (decrease)/increase in cash and cash equivalents | 28,052 | (35,858) | 548 | (19,156) | 2,749 | (5,138) | 2,906 | (4,057) |
| Cash and cash equivalents at the beginning of the period | 59,603 | 106,428 | 13,105 | 31,980 | 13,113 | 17,127 | 1,029 | 5,814 |
| Effects of exchange rate changes on cash and cash equivalents |
1 | 121 | 671 | 2,703 | (57) | 63 | - | - |
| Cash and cash equivalents at the end of the period | 87,656 | 70,691 | 14,324 | 15,527 | 15,805 | 12,052 | 3,935 | 1,757 |
The above Cash Flow Statements should be read in conjunction with the accompanying notes.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 17 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
(a) Basis of preparation
In accordance with AASB Interpretation 1002: Post-Date-of-Transition Stapling Arrangements, the Trusts 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 represent the equity attributable to parties external to the Trusts.
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 2007 has been prepared in accordance with the requirements of the Trusts' Constitutions, AASB 134: Interim Financial Reporting and the Corporations Act 2001.
This financial report is prepared on the going concern basis and in accordance with historical cost conventions and has not been adjusted to take account of either changes in the general purchasing power of the dollar or changes in the values of specific assets, except for the revaluation of certain non-current assets and financial instruments (refer notes 1(d), 1(g), 1(h), 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 Trusts for the year ended 30 June 2007 and any public pronouncements made by the Trusts 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.
The Financial Statements incorporate all the assets, liabilities and results of the parent and its controlled entities.
Partnerships and joint ventures
Where assets are held in a partnership or joint venture with another entity directly, the Trusts' share of the results and assets of this partnership or joint venture are consolidated into the Income Statements and Balance Sheets of the Trusts. Where assets are jointly controlled via ownership of units in single purpose unlisted unit trusts or shares in companies, the Trusts apply equity accounting to record the operations of these investments (refer note 1(i)).
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 18 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 Sheets as a receivable. Recoverability of receivables is reviewed on an ongoing basis. Debts which are known to be not collectable are written off.
Interest income
Interest income is brought to account on an accruals basis using the effective interest rate method and, if not received at balance date, is reflected in the Balance Sheets as a receivable.
Dividends and distribution income
Income from dividends and distributions are recognised when declared. Amounts not received at balance date are included as a receivable in the Balance Sheets.
(d) Derivatives and other financial instruments
(i) Derivatives
The Trusts' activities expose it to changes in interest rates and foreign exchange rates. Accordingly, the Trusts enter 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 Trusts' exposures and updates its treasury policies and procedures. The Trusts do 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 Trusts have 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.
(ii) Embedded derivatives
Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics are not closely related to those of host contracts and the host contracts are not measured at fair value with changes in fair value recognised in the Income Statements.
(iii) Debt and equity instruments issued by the Trusts
Financial instruments issued by the Trusts are classified as either liabilities or as equity in accordance with the substance of the contractual arrangements. Accordingly, ordinary units issued by DDF, DIT, DOT and 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 guarantees in relation to loans or other payables of subsidiaries or associates are provided for no compensation, the fair values are accounted for as contributions and recognised as part of the cost of the investment.
(v) Other financial assets
Loans and other receivables are measured at amortised cost using the effective interest rate method less impairment.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 19 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
(e) Taxation
Under current Australian income tax legislation DDF, DIT and DOT, are not liable for income tax provided they satisfy certain legislative requirements. These Trusts may be liable for income tax in jurisdiction where foreign property is held (i.e. USA, France, Germany, Canada, New Zealand).
DRO is a trading trust and is subject to Australian income tax as follows:
- The income tax expense for the year is the tax payable on the current year's taxable income based on a tax rate of 30 percent adjusted for changes in deferred tax assets and liabilities and unused tax losses;
- Deferred tax assets and liabilities are recognised for temporary differences arising from differences between the carrying amount of assets and liabilities and the corresponding tax base of those items. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax assets or liabilities. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability (where they do not arise as a result of a business combination and did not affect either accounting profit/loss or taxable profit/loss);
- Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses;
- Deferred tax assets and liabilities are not recognised for temporary differences between the carrying amount and tax bases of investments in controlled entities where the parent entity is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future; and
- Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity.
Withholding tax payable on distributions received by the Trusts from DB RREEF Industrial Properties Inc (US REIT) and DB RREEF US Properties Inc (US REIT II) are recognised as an expense when tax is withheld.
In addition, a deferred tax liability or asset and related deferred tax expense/benefit is recognised on differences between the tax cost base of US assets and liabilities in the Trusts (held by US REIT and US REIT II) and their accounting carrying values at balance date. Any deferred tax liability or asset is calculated using a blend of the current withholding tax rate applicable to income distributions and the applicable US federal and state taxes.
Under current Australian income tax legislation, the security holders will generally be entitled to receive a foreign tax credit for US withholding tax deducted from distributions paid by the US REIT and US REIT II.
DIT France Logistique SAS (DIT France), a wholly owned sub trust of DIT, is liable for French corporation tax on its taxable income at the rate of 34.43 percent. In addition, a deferred tax liability or asset and its related deferred tax expense/benefit is recognised on differences between the tax cost base of the French real estate assets and their accounting carrying value at balance date.
DB RREEF GLOG Trust, a wholly owned Australian sub trust of DIT, is liable for German income tax on its German taxable income at the rate of 26.38 percent (note that this rate will reduce to 15.83% from 1 January 2008). In addition, a deferred tax liability or asset and its related deferred tax expense/benefit is recognised on differences between the tax cost base of the German real estate assets and their accounting carrying value at balance date.
DOT NZ Sub-Trust No. 1, a wholly owned Australian sub trust of DOT, is liable for New Zealand corporate tax on its New Zealand taxable income at the rate of 33 percent. In addition, a deferred tax liability or asset and its related deferred tax expense/benefit is recognised on differences between the tax cost base of the New Zealand real estate 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.
(g) Property, plant and equipment
All property plant and equipment is initially recognised at cost including transaction costs. Land and freehold buildings are accounted for using the cost method. Construction in progress is subsequently recognised at fair value in the financial statements.
Revaluation increments are credited directly to the asset revaluation reserve, unless they are reversing a previous decrement charged as an expense in the Income Statements, in which case they are credited directly to the Income Statements.
Revaluation decrements are recognised directly as an expense in the Income Statements, unless they are reversing a revaluation increment previously credited to, and still included in the balance of the asset revaluation reserve, in which case they are debited directly to the asset revaluation reserve.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 20 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
(h) Investment properties
Investment properties consist of properties held for long term rental yields, capital appreciation or both. Investment properties are initially recognised at cost including transaction costs. Investment properties are subsequently recognised at fair value in the Financial Statements.
The basis of valuations of investment properties is fair value being the amounts for which the assets could be exchanged between knowledgeable willing parties in an arm's length transaction, based on current prices in an active market for similar properties in the same location and condition and subject to similar leases. Where this is not available, an appropriate valuation method is used, which may include the discounted cashflow and the capitalisation method. 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.
(i) Investments accounted for using the equity method
Some property investments are held through the ownership of units in single purpose unlisted trusts or shares in unlisted companies where the Trusts exert significant influence or joint control but does not have a controlling interest. These investments are considered to be associates and the equity method of accounting is applied in the consolidated Financial Statements.
Under this method, the entity's share of the post-acquisition profits of associates is recognised as revenue in the Consolidated 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 Trusts' share of losses in an associate equal or exceed its interest in the associate (including any unsecured receivables) the Trusts do not recognise any further losses unless it has incurred obligations or made payments on behalf of the associate.
(j) 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 assumed at the date of exchange plus costs directly attributable to the acquisition. Where equity instruments are issued in an acquisition, the value of the instruments is their published market price as at the date of exchange unless, in rare circumstances, it can be demonstrated that the published price at the date of exchange is an unreliable indicator of fair value and that other evidence and valuation methods provide a more reliable measure of fair value. Transaction costs arising on the issue of equity instruments are recognised directly in equity.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values. The excess of the acquisition cost over the fair value of the assets and liabilities acquired is recorded as goodwill (refer note 1(k)). 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 cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange at the entity's incremental financing rate.
(k) Goodwill
Where a business combination is acquired, the identifiable net assets acquired are measured at fair value. The excess of the acquisition costs over the fair value of the identifiable net assets is brought to account as goodwill in the Balance Sheets. The carrying value of the goodwill is tested for impairment at each reporting date with any decrement in value taken to the Income Statements as an expense.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 21 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
(l) Fair value estimation of financial assets and liabilites
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement and for disclosure purposes.
The fair value of financial instruments traded in active markets (such as publicly traded derivatives 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 Trusts are the current bid price. The appropriate quoted market price for financial liabilities is the current ask price.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques including dealer quotes for similar instruments and discounted cash flows. In particular, the fair value of interest-rate swaps and cross currency swaps are calculated as the present value of the estimated future cash flows and the fair value of forward exchange rate contracts is determined using forward exchange market rates at the balance sheet date.
(m) 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.
(n) Earnings per unit
Basic and diluted earnings per unit are determined by dividing the net profit attributable to equity holders of the parent entity by the weighted average number of ordinary units outstanding during the period.
(o) Foreign currency
Items included in the Financial Statements of the Trusts are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The Financial Statements are presented in Australian dollars, which is the functional and presentation currency of the Trusts.
(i) Foreign currency transactions
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period end exchange rates of financial assets and liabilities denominated in foreign currencies are recognised in the Income Statements.
(ii) Foreign operations
Foreign operations are located in the United States of America, New Zealand, France, Germany and Canada. These operations have a functional currency of US Dollars, NZ Dollars, Euros and Canadian Dollars respectively, which are translated into the presentation currency.
The assets and liabilities of the foreign operations are translated at exchange rates prevailing at the reporting date. Income and expense items are translated at the average exchange rates for the period 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.
(p) 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.
(q) Rounding of amounts
The Trusts are the kind referred to in Class Order 98/0100, issued by the Australian Securities and Investment Commission, relating to the rounding off of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 22 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 1. Summary of significant accounting policies (continued)
(r) New accounting standards and UIG interpretations
Certain new accounting standards and UIG interpretations have been published that are not mandatory for the 31 December 2007 reporting period. Our assessment of the impact of these new standards and interpretations is set out below:
(i) AASB 8 Operating Segments and AASB 2007-3 Amendments to Australian Accounting Standards arising from AASB 8 [AASB 5, AASB 6, AASB 102, AASB 107, AASB 119, AASB 127, AASB 134, AASB 136, AASB 1023 & AASB 1038], is applicable to annual reporting periods beginning on or after 1 January 2009. It requires segment information disclosure based on segments monitored by the chief operating decision maker in allocating resources and in assessing their performance rather than on a business/geographical basis. This will require more qualitative disclosure for single segment entities. Application of this standard will not affect the amounts recognised in the financial statements.
(ii) Revised AASB 101 Presentation of Financial Statements and AASB 2007-8 Amendments to Australian Accounting Standards arising from AASB 101. The revised AASB 101 that was issued in September 2007 is applicable for annual reporting periods beginning on or after 1 January 2009. It requires the presentation of a statement of comprehensive income and makes changes to the statement of changes in equity but will not affect any of the amounts recognised in the financial statements. If an entity has made a prior period adjustment or a reclassification of items in the financial statements, it will also need to disclose a third balance sheet (statement of financial position), this one being as at the beginning of the comparative period.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 23 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST Page No. Draft No of NO. 1 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
| Note 2. Finance costs | ||||||||
|---|---|---|---|---|---|---|---|---|
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
| 31 Dec 2007 31 Dec 2006 |
31 Dec 2007 31 Dec 2006 |
31 Dec 2007 31 Dec 2006 |
31 Dec 2007 | 31 Dec 2006 | ||||
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |
| Interest paid/payable | 99,402 | 101,630 | 30,572 | 20,804 | 26,271 | 31,372 | 47,279 | 43,042 |
| Amount capitalised | (7,042) | (6,376) | (2,546) | (4,284) | - | - | - | 26 |
| Other finance costs | 1,672 | 790 | 161 | 254 | 1,231 | 333 | 1,151 | 926 |
| Net fair value loss/(gain) of interest rate swaps | 50,744 | (4,415) | 13,097 | (1,366) | (10,414) | (8,579) | (3,141) | - |
| Total finance costs | 144,776 | 91,629 | 41,284 | 15,408 | 17,088 | 23,126 | 45,289 | 43,994 |
The average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.13% (2006: 6.54%) for DDF.
The average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.68% (2006: 6.66%) for DIT.
There were no finance costs eligible for capitalisation in DOT for 2007 and 2006.
There were no finance costs eligible for capitalisation in DRO for 2007 and the average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation was 7.14% in 2006.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 24 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 3. Investment properties
(a) Properties
| DIT | Ow shi ner p |
Ac qui siti on dat e |
Co st inc ing lud all add itio ns \$'0 00 |
Ind nde nt epe ion val uat dat e |
Ind nde nt epe ion val uat t am oun \$'0 00 |
Ind nde nt epe val uer |
Co lida ted nso boo k v alu e 31 Dec ber 20 07 em \$'0 00 |
Co lida ted nso boo k va lue 30 Jun e 2 007 \$'0 00 |
|---|---|---|---|---|---|---|---|---|
| 79- 99 St H illie rs R oad , Au bur n, N SW |
100 % |
Se p 1 997 |
38, 634 |
Jun 20 07 |
45, 250 |
(a) | 47, 300 |
45, 250 |
| NS 3 B kho llow Av e, B aul kha m H ills, W roo enu |
100 % |
De c 2 002 |
45, 697 |
De c 2 005 |
42, 400 |
(f) | 59, 000 |
54, 700 |
| 1 G arig al R oad , Be lros e, N SW |
100 % |
De c 1 998 |
23, 370 |
Jun 20 07 |
31, 000 |
(d) | 31, 008 |
31, 000 |
| 2 M inn a C lose , Be lros e, N SW |
100 % |
De c 1 998 |
35, 106 |
Jun 20 07 |
35, 000 |
(d) | 35, 017 |
35, 000 |
| 114 -12 0 O ld P ittw ate r Ro ad, Br ook val e, N SW |
100 % |
Se p 1 997 |
36, 012 |
Jun 20 06 |
45, 500 |
(f) | 53, 647 |
52, 900 |
| 145 -15 1 A rthu r St t, F lem ingt NS W ree on, |
100 % |
Se p 1 997 |
24, 390 |
De c 2 007 |
37, 900 |
(c) | 37, 900 |
36, 900 |
| 4 V icto ria Roa d, G lad ille, NS W 436 -48 esv |
100 % |
Se p 1 997 |
28, 991 |
Jun 20 07 |
53, 000 |
(e) | 57, 000 |
53, 000 |
| 1 F dat ion Pla Gre s, N SW yst oun ce, ane |
100 % |
De c 2 002 |
39, 235 |
Jun 20 06 |
46, 000 |
(e) | 50, 800 |
48, 055 |
| 3 R ber y A & 5-1 ose ven ue |
100 % |
Ap r 19 98 |
74, 205 |
De c 2 005 |
92, 800 |
(f) | 104 ,18 6 |
98, 438 |
| , NS 1-5 5 R oth sch ild A Ro seb W ven ue, ery |
& O ct 2 001 |
- | ||||||
| 10- 16 Sou th S t, R yda lme NS W tree re, |
100 % |
Se p 1 997 |
36, 821 |
De c 2 006 |
47, 000 |
(f) | 49, 800 |
47, 425 |
| Ch St t, S NS 19 ifley mit hfie ld, W ree |
100 % |
De c 1 998 |
12, 253 |
De c 2 005 |
17, 200 |
(a) | 20, 000 |
18, 500 |
| Pou nd Roa d W est , Da nde g, V IC non |
100 % |
Jan 20 04 |
62, 224 |
De c 2 007 |
81, 550 |
(g) | 81, 550 |
74, 000 |
| 352 Ma lay Roa d, K ingt VIC cau ens on, |
100 % |
Oc t 19 98 |
7,6 17 |
De c 2 007 |
10, 000 |
(a) | 10, 000 |
9,3 00 |
| 1 DB RR EE F In dus tria l Es Bo und Ro ad, La No rth, VIC tate ton ary ver |
100 % |
Jul 200 2 |
74, 654 |
De c 2 007 |
85, 900 |
(c) | 85, 901 |
26, 900 |
| Fo t R oad , So uth La VIC 250 res ra, |
100 % |
Dec 20 02 |
33, 758 |
Jun 20 05 |
34, 600 |
(e) | 48, 900 |
43, 700 |
| Gi n, S 15- 23 Wh icke r Ro ad, llma A |
100 % |
De c 2 002 |
20, 237 |
De c 2 006 |
25, 500 |
(d) | 30, 000 |
25, 500 |
| 25 Don kin Stre et S h, B risb , Q LD out ane |
100 % |
De c 1 998 |
19, 510 |
De c 2 007 |
35, 600 |
(e) | 35, 600 |
28, 000 |
| SW 52 Hol bec he Roa d, A rnd ell Par k, N |
100 % |
Jul 19 98 |
11, 336 |
De c 2 005 |
12, 500 |
(d) | 14, 600 |
14, 000 |
| r St SW 3-7 Be t, B lack tow n, N sse me ree |
100 % |
Jun 19 97 |
11, 140 |
Se p 2 006 |
10, 250 |
(d) | 12, 000 |
10, 800 |
| 30- 32 Bes er S t, B lack n, N SW tree tow sem |
100 % |
Ma y 1 997 |
11, 955 |
Jun 20 06 |
17, 850 |
(f) | 19, 009 |
19, 000 |
| NS 27- 29 Lib erty Ro ad, Hu ntin od, W gwo |
100 % |
Jul 19 98 |
8,1 98 |
Jun 20 06 |
9,0 00 |
(e) | 10, 400 |
9,2 28 |
| 154 O' Rio rda n S t, M NS W tree ot, asc |
100 % |
Jun 19 97 |
11, 086 |
De c 2 006 |
16, 000 |
(a) | 16, 112 |
16, 065 |
| Tal ra R oad , No rth Ryd e, N SW 11 ave |
100 % |
Jun 20 02 |
135 ,22 8 |
Jun 20 06 |
145 ,50 0 |
(d) | 152 ,86 9 |
152 ,00 0 |
| DB RR EE F In dus tria l Es , Eg n S t, S ilve NS W tate erto tree ter, rwa |
100 % |
Ma y 1 997 |
36, 687 |
De c 2 007 |
50, 000 |
(d) | 50, 000 |
47, 583 |
| 239 -25 1 W ood k R oad , Sm ithf ield , NS W par |
100 % |
Ma y 1 997 |
5,1 02 |
Jun 20 06 |
6,4 50 |
(f) | 7,1 01 |
7,1 00 |
| Stre NS 40 Bilo ela et, Vill od, W awo |
100 % |
Jul 199 7 |
6,8 50 |
Jun 20 06 |
8,7 50 |
(a) | 8,7 98 |
8,7 97 |
| Fa irba nk Roa d, C layt VIC 114 on, |
100 % |
Jul 19 97 |
15, 900 |
Jun 20 06 |
12, 800 |
(c) | 16, 600 |
12, 800 |
| Bel lrick St t, A ia R idg e, Q LD 30 ree cac |
100 % |
Jun 19 97 |
13, 218 |
De c 2 005 |
17, 375 |
(e) | 24, 500 |
20, 650 |
| 68 Has ler Roa d, H erd WA sm an, |
100 % |
Jul 19 98 |
9,7 36 |
De c 2 006 |
9,7 50 |
(f) | 16, 000 |
10, 800 |
| Zon e In dus tria l Ep II, Epo one ne Br int- in F |
100 % |
Jul 20 06 |
12, 830 |
De c 2 007 |
10, 702 |
(d) | 10, 702 |
12, 629 |
| 19 de , Sa Qu alla vie eta ent rue gne r Ch c, C 21 du in B lan ham |
100 % 100 % |
Jul 20 06 Jul 20 06 |
23, 121 794 |
De c 2 007 De c 2 007 |
18, 896 221 |
(d) | 18, 896 221 |
19, 343 845 |
| pla rue em n 32 de l'O nie , Vi lleju st ave nue cea |
100 % |
Jul 20 06 |
23, 18, 151 |
De c 2 007 |
16, 14, 967 |
(d) (d) |
16, 14, 967 |
15, 15, 160 |
1 This site comprises, Lot 1 Boundary Road which was externally valued at 31 December 2007 for \$20 million and two remaining lots which were internally valued at 31 December 2007 for \$65.9 million. The title to all properties is freehold.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 25 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 3. Investment properties (continued)
(a) Properties (continued)
| DIT | (co ntin ued ) |
|
|---|---|---|
| shi Ow ner p |
qui siti Ac on dat e |
Co st inc lud ing all add itio ns \$'0 00 |
Ind nde nt epe val uat ion dat e |
Ind nde nt epe val uat ion t am oun \$'0 00 |
Ind nde nt epe val uer |
Co lida ted nso boo k v alu e 31 Dec ber 20 07 em \$'0 00 |
Co lida ted nso boo k va lue 30 Jun e 2 007 \$'0 00 |
|
|---|---|---|---|---|---|---|---|---|
| RN 19 ZA C d e L 'Or s R oad , Se n (1 ) me rvo |
100 % |
Jul 20 06 |
32, 296 |
De c 2 007 |
24, 097 |
(d) | 24, 097 |
33, 038 |
| RN 19 ZA C d e L 'Or s R oad , Se n (2 ) me rvo |
100 % |
Jul 20 06 |
11, 080 |
De c 2 007 |
9,1 30 |
(d) | 9,1 30 |
10, 917 |
| raß e, S ße, hof Im Hol der bus ch 3, I ndu stri est ulm stra Ell We insb en- erg |
100 % |
De c 2 006 |
26, 721 |
De c 2 007 |
25, 184 |
(d) | 25, 184 |
25, 319 |
| Sch iller ße 51, Ell hof stra en |
100 % |
De c 2 006 |
22, 133 |
De c 2 007 |
20, 819 |
(d) | 20, 819 |
20, 972 |
| Sch iller ße a, B ahn hof ße , El lhof stra 42, 42 stra 44, 50 en |
100 % |
De c 2 006 |
13, 896 |
De c 2 007 |
13, 027 |
(d) | 13, 027 |
13, 168 |
| Im Ge rbe geb iet 18, Frie dew ald we |
100 % |
De c 2 006 |
8,9 56 |
De c 2 007 |
8,0 10 |
(d) | 8,0 10 |
8,4 92 |
| Im Ste inb h 4 , 6, Kn etz ruc gau |
100 % |
De c 2 006 |
17, 575 |
De c 2 007 |
17, 107 |
(d) | 17, 107 |
16, 654 |
| Ca s-S rl-L rku traß e 3 -5, Win kels g 1 82- 184 , La nfe ld eve we nge |
100 % |
De c 2 006 |
17, 599 |
De c 2 007 |
15, 970 |
(d) | 15, 970 |
16, 675 |
| Sch nei der ße 82, La nfe ld 3 stra nge |
100 % |
De c 2 006 |
10, 094 |
De c 2 007 |
9,5 49 |
(d) | 9,5 49 |
9,5 64 |
| Übe r de r D ing elst elle , La ddi nge nwe nge n |
100 % |
De c 2 006 |
12, 782 |
De c 2 007 |
11, 756 |
(d) | 756 11, |
12, 112 |
| Nor dst raß e 1 , Lö bau |
100 % |
De c 2 006 |
2,1 58 |
De c 2 007 |
1,6 72 |
(d) | 1,6 72 |
2,0 45 |
| For r St raß e 6 , Un me na |
100 % |
De c 2 006 |
29, 241 |
De c 2 007 |
27, 893 |
(d) | 27, 893 |
27, 708 |
| r St Nie des hei raß e 2 4, W me orm s |
100 % |
De c 2 006 |
6,9 47 |
De c 2 007 |
6,7 89 |
(d) | 6,7 89 |
6,5 82 |
| Live ole r-/ K nha er-/ Os loe r St raß e, D uisb rpo ope gen urg |
100 % |
De c 2 006 |
34, 658 |
De c 2 007 |
33, 294 |
(d) | 33, 294 |
32, 840 |
| ße, Bre r R ing , Ha stra Be rlin -W ust ark me nse erm |
100 % |
De c 2 006 |
18, 729 |
De c 2 007 |
17, 709 |
(d) | 17, 709 |
17, 747 |
| The odo rStr aße , Dü ldo rf 1 sse |
100 % |
Jun 20 07 |
28, 655 |
De c 2 007 |
26, 773 |
(d) | 26, 773 |
27, 152 |
| Ora St t, O rlan do, FL nge ree |
100 % |
Jun 20 07 |
28, 780 |
Aug 20 07 |
31, 760 |
(c) | 31, 760 |
29, 867 |
| Ch 857 4 B ost h R oad , M ilton on urc |
100 % |
De c 2 007 |
78, 970 |
n/a | n/a | - | 78, 970 |
- |
| Tot al D IT i rtie stm ent nt nve pr ope s - non -cu rre |
1,3 68, 316 |
1,4 43, 750 |
1,6 25, 893 |
1,4 31, 220 |
||||
| DO T |
||||||||
| Gov or P hilli p T r & Gov or M ie T r O ffic e C plex , 1 Far Pla Syd , NS W ern owe ern acq uar owe om rer ce, ney |
50% | De c 1 998 |
487 ,94 9 |
De c 2 006 |
638 0 ,75 |
(f) | 739 ,99 9 |
646 ,71 0 |
| Cla Stre Syd , NS 45 et, W ren ce ney |
100 % |
De c 1 998 |
223 ,09 1 |
Jun 20 07 |
265 ,00 0 |
(e) | 290 ,00 0 |
265 ,00 0 |
| 309 -32 1 K St t, S ydn NS W ent ree ey, |
50% | De c 1 998 |
170 ,84 9 |
De c 2 006 |
183 ,50 0 |
(a) | 209 ,00 0 |
194 ,00 0 |
| 1 M t St t, S ydn NS W arg are ree ey, |
100 % |
De c 1 998 |
142 ,67 0 |
De c 2 007 |
200 ,00 0 |
(a) | 200 ,00 0 |
181 ,00 0 |
| Vic tori a C s 6 0 M iller St t, N orth Sy dne y, N SW ros ree |
100 % |
De c 1 998 |
92, 100 |
De c 2 005 |
90, 000 |
(f) | 110 ,00 0 |
103 ,10 1 |
| Zen ith Ce , 82 1-8 43 Pac ific Hig hwa y, C hat od, NS W ntre swo |
50% | De c 1 998 |
100 ,63 4 |
Jun 20 07 |
130 ,00 0 |
(a) | 132 ,12 8 |
130 ,00 0 |
| 0 S t G Wo ods ide Pla 24 Te e, P erth , W A za, eor ges rrac |
100 % |
Jan 20 01 |
240 ,93 0 |
Jun 20 06 |
315 ,00 0 |
(c) | 420 ,00 0 |
390 ,00 0 |
| 30 The Bo nd, 30 -34 Hic kso n R oad , Sy dne y, N SW |
100 % |
Ma y 2 002 |
118 ,11 3 |
Jun 20 06 |
150 ,00 0 |
(e) | 179 ,00 0 |
170 ,00 0 |
| Sou thg Co lex Sou thg Av e, S hga VIC ate , 3 ate out te, mp enu |
100 % |
Aug 20 00 |
360 ,61 9 |
Jun 20 07 |
380 ,00 0 |
(c) | 384 ,17 8 |
380 ,00 0 |
| O'C ell Hou 15 -19 Be nt S tree t, S ydn NS W onn se, ey, |
Aug 20 00 |
- | Se p 2 004 |
- | (e) | - | 54, 464 |
|
| 201 -21 7 E liza bet h S t, S ydn NS W tree ey, |
50% | Aug 20 00 |
117 ,38 2 |
Jun 20 07 |
158 0 ,75 |
(d) | 161 ,75 8 |
158 0 ,75 |
| Ga a C Cit , Ci , AC t, 1 40- 180 y W alk vic T rem our |
100 % |
Aug 20 00 |
43, 937 |
Jun 20 06 |
52, 000 |
(f) | 69, 000 |
63, 500 |
| Aus tral ia S re C plex , 26 4-2 78 Ge e S t, S ydn NS W qua om org ey, |
50% | Aug 20 00 |
209 ,42 5 |
De c 2 007 |
312 ,50 0 |
(e) | 312 ,50 0 |
261 ,73 9 |
| 1 Lum ley Ce , 88 Sh ortl and St , Au ckla nd, Ne w Z eal and ntre |
100 % |
Se p 2 005 |
99, 625 |
De c 2 006 |
119 ,78 2 |
(d) | 137 ,39 7 |
131 ,51 9 |
| Tot al D OT inv ies est nt p ert t me rop - n on- cur ren |
2,4 07, 324 |
2,9 95, 282 |
3,3 44, 960 |
3,1 29, 783 |
1The property was externally valued at NZ\$136,000,000 at 31 December 2006 and internally valued at NZ\$145,000,000. These valuations have been translated in to Australian dollars at the spot rate on 31 December 2007. The title to all properties is freehold, with the exception of the properties marked ** which are leasehold.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 26 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 3. Investment properties (continued)
| (a) Pro ties (co ntin ued ) per |
Ow shi ner p |
Ac qui siti on dat e |
Co st inc lud ing all |
Ind nde nt epe val uat ion |
Ind nde nt epe val uat ion |
Ind nde nt epe val uer |
Co lida ted nso boo k v alu e |
Co lida ted nso boo k va lue |
|---|---|---|---|---|---|---|---|---|
| Oth olid d in ies ate tme nt p ert t er c ons ves rop - n on- cur ren |
add itio ns \$'0 00 |
dat e |
t am oun \$'0 00 |
31 Dec ber 20 07 em \$'0 00 |
30 Jun e 2 007 \$'0 00 |
|||
| Kin Par k In dus tria l Es , Bo Ro ad, Ma , NS W tate gs wm ans ray ong |
100 % |
Ma y 1 990 |
79, 782 |
Jun 20 06 |
93, 000 |
(f) | 111 ,00 0 |
101 ,00 0 |
| Tar get Dis trib utio n C ent Lot 1, Tar Ave , Al ton a N orth , VI C re, as nue |
100 % |
Oc t 19 95 |
25, 494 |
De c 2 007 |
37, 500 |
(a) | 37, 500 |
36, 512 |
| Axx Co Pa rk, 164 -18 0 F Roa d, 1 1 & 21 -45 Gi lby Roa d, rate ter ess rpo ors |
100 % |
Oc t 19 96 |
157 ,97 3 |
De c 2 005 |
147 ,75 0 |
(f) | 184 ,00 0 |
|
| 307 -35 5 F Gu lly R oad , M t W rley , VI C tree ern oun ave |
193 ,00 0 |
|||||||
| Kno xfie ld I ndu stri al E Hen der Ro ad, Kn oxf ield , VI C sta te, 20 son |
100 % |
Aug 19 96 |
30, 220 |
Jun 20 06 |
37, 050 |
(f) | 37, 130 |
37, 098 |
| Stre St L SW 12 Fre der ick et, ard s, N eon |
100 % |
Jul 20 00 |
26, 054 |
Jun 20 07 |
38, 000 |
(f) | 38, 480 |
38, 000 |
| 40 Tal ra R oad , No rth Ryd e, N SW ave |
100 % |
Oc t 20 02 |
33, 372 |
De c 2 006 |
31, 200 |
(d) | 33, 845 |
33, 800 |
| rn C SW 2 A lspe c P lace , Ea ste k, N ree |
100 % |
Ma r 20 04 |
23, 585 |
De c 2 006 |
26, 000 |
(a) | 26, 028 |
26, 010 |
| Red od Ga rde Ind rial Est Sta ,6 & nd Lot Din gle y, V IC ust ate 3,5 7 a 4, wo ns ges |
100 % |
Dec 19 94 |
23, 901 |
Jun 20 06 |
28, 850 |
(e) | 31, 850 |
29, 950 |
| Ma rke t St t, S ydn NS W 44 ree ey, |
100 % |
Se p 1 987 |
173 ,28 9 |
Jun 20 06 |
185 ,00 0 |
(f) | 230 ,00 0 |
220 ,00 0 |
| 8 N icho lson St t, M elb VIC ree our ne, |
100 % |
No v 1 993 |
69, 643 |
De c 2 007 |
106 ,50 0 |
(e) | 106 ,50 0 |
98, 000 |
| Fer Ce , 13 0 G Stre Par , NS W ntre et, atta gus on eor ge ram |
100 % |
Ma y 1 997 |
100 ,24 1 |
Jun 20 06 |
80, 000 |
(d) | 93, 738 |
93, 059 |
| s G Co St VIC Flin der ate lex , 17 2 F lind t an d 1 89 Flin der s L , M elb mp ers ree ane our ne, |
100 % |
Ma r 19 99 |
14, 839 |
Jun 20 06 |
18, 000 |
(d) | 19, 090 |
18, 265 |
| 383 -39 5 K St t, S ydn NS W ent ree ey, Mo St anb T 14 |
100 % 100 % |
Se p 1 987 Ma 002 |
105 ,79 1 391 |
Jun 20 06 De c 2 007 |
115 ,00 0 500 |
(d) | 137 ,00 0 |
131 ,37 8 |
| t, C , AC ore ree erra 1 Syd CB r Sp D F loo ney ace |
100 % |
y 2 Jul 20 00 |
37, | n/a | 49, | (a) | 49, 500 2,1 74 |
45, 000 2,1 73 |
| A 2 We stfie ld W hitf ord Cit y S hop pin g C re M ion & W hitf ord s A Hil lary s, W ent arm ven |
50% | Oc t 19 84 |
- 129 ,97 1 |
Jun 20 07 |
- 252 ,35 0 |
- (d) |
252 ,70 8 |
252 ,35 0 |
| ue, A 2 We stfie ld W hitf ord s A Lot 6 E nde ur R oad |
50% | De c 1 992 |
06 | Jun 20 07 |
650 | 650 | 650 | |
| , Hi llary s, W ven ue avo A 2 s S g C s, S We st L ake hop pin ent We st L ake re, |
- | No v 1 998 |
5,5 | n/a | 24, | (d) | 24, | 24, 174 ,00 0 |
| 2 Ple Val ley Tow n C 330 -46 4 M cDo nal d's Roa d, S h M VIC nty ent out re, ora ng, |
- | No v 1 999 |
- | n/a | - | - | - | 66, 750 |
| LD 2 We stfie ld N orth La kes Sh ing Ce , Cn r An Av nd Nor thla kes Dr ive , M o H ill, Q ntre zac enu e a |
- | Aug 20 04 |
- | n/a | - | - | - | 164 ,50 0 |
| opp ang & C e S ts C QL Alb ert har lott tree ark , Br isba D arp ne, |
100 % |
Oc t 19 84 |
- 15, 448 |
Jun 20 06 |
- 38, 500 |
- (e) |
- 40, 164 |
39, 354 |
| 34- 60 Litt le C ollin s S t, M elb VIC ** tree our ne, |
100 % |
No v 1 984 |
16, 164 |
Jun 20 06 |
37, 500 |
(d) | 39, 500 |
39, 500 |
| s S VIC 32- 44 Flin der tree t, M elb our ne, |
100 % |
Jun 19 98 |
21, 319 |
Jun 20 06 |
32, 500 |
(d) | 32, 581 |
32, 585 |
| Flin der s G Ca rk, 172 -18 9 F lind St t, M elb VIC ate rpa ers ree our ne, |
100 % |
Ma r 19 99 |
47, 244 |
Jun 20 06 |
39, 000 |
(d) | 39, 201 |
39, 000 |
| 5 K St t, S ydn NS W 383 -39 ent ree ey, |
100 % |
Se p 1 987 |
30, 257 |
Jun 20 06 |
60, 000 |
(d) | 60, 000 |
60, 000 |
| Joh n M arti n's Ca rk & Re tail Pla Joi nt V ent , Ad ela ide , SA rpa za ure |
1% | Se p 1 994 |
- | n/a | - | - | 100 | 100 |
| 2 We stfie ld H tvill e, 2 62- 264 Fo t R oad d 2 92 For Roa d, H tvill e, N SW est urs res an urs |
- | Ma y 2 005 |
- | n/a | - | - | - | 307 ,50 0 |
| 130 Ma ry S t, B risb tree ane |
100 % |
No v 2 007 |
2,8 00 |
n/a | n/a | - | 2,8 00 |
- |
| 376 5 A tlan ta I ndu stri al D rive , At lant a |
100 % |
Se p 2 004 |
5,9 02 |
Jun 20 07 |
5,1 04 |
(c) | 4,1 59 |
5,3 02 |
| 0 H igh lan ds Par kwa y, A tlan 710 ta |
100 % |
Se p 2 004 |
16, 021 |
Jun 20 07 |
18, 035 |
(c) | 15, 639 |
18, 735 |
| Tow n P ark Dr ive , At lant a |
100 % |
Se p 2 004 |
7,4 91 |
Jun 20 07 |
9,6 42 |
(c) | 10, 189 |
10, 015 |
| Wil liam s D rive , At lant a |
100 % |
Se p 2 004 |
11, 318 |
Jun 20 07 |
13, 385 |
(c) | 14, 116 |
13, 904 |
| Sto Mo unt ain , At lant ne a |
100 % |
Se p 2 004 |
8,2 93 |
Jun 20 07 |
7,0 33 |
(c) | 6,8 38 |
7,3 05 |
| MD Fo od Par k, B alti mo re |
100 % |
Se p 2 004 |
22, 247 |
Jun 20 07 |
30, 023 |
(c) | 29, 593 |
31, 187 |
| We st N , Ba ltim urs ery ore |
100 % |
Se p 2 004 |
9,0 30 |
Jun 20 07 |
9,6 42 |
(c) | 9,7 66 |
10, 015 |
| Cab ot T ech s, B alti mo re |
100 % |
Se p 2 004 |
23, 626 |
Jun 20 07 |
31, 647 |
(c) | 32, 951 |
32, 874 |
| 911 2 G uild ford Ro ad, Ba ltim ore |
100 % |
Se p 2 004 |
9,2 63 |
Jun 20 07 |
12, 137 |
(c) | 11, 224 |
12, 608 |
| 5 S 815 tay ton Dr ive , Ba ltim ore Pat nt R e R oad ltim |
100 % 100 % |
Se p 2 004 Se 004 |
7,8 65 487 |
Jun 20 07 Jun 20 07 |
9,4 15 200 |
(c) | 10, 027 593 |
9,7 80 |
| , Ba uxe ang ore Co Bris tol Ba ltim |
100 % |
p 2 Se 004 |
13, 862 |
Jun 20 07 |
15, 704 |
(c) | 14, 042 |
15, 789 197 |
| urt, ore NE Ba ltim , Ba ltim ore ore |
100 % |
p 2 Se p 2 004 |
11, 8,4 84 |
Jun 20 07 |
12, 10, 095 |
(c) (c) |
13, 9,8 42 |
13, 10, 487 |
1This 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.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 27 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 3. Investment properties (continued)
| (a) Pro ties (co ntin ued ) per |
Ow shi ner p |
Ac qui siti on dat e |
Co st inc lud ing all |
Ind nde nt epe val uat ion |
Ind nde nt epe val uat ion |
Ind nde nt epe val uer |
Co lida ted nso boo k v alu e |
Co lida ted nso boo k va lue |
|---|---|---|---|---|---|---|---|---|
| Oth olid d in ies t (c inu ed) ate tme nt p ert ont er c ons ves rop - n on- cur ren |
add itio ns \$'0 00 |
dat e |
t am oun \$'0 00 |
31 Dec ber 20 07 em \$'0 00 |
30 Jun e 2 007 \$'0 00 |
|||
| 1 P l, 1 Po rtal d 6 Tri but , Ba ltim 118 orta 831 615 an ary ore |
100 % |
Jun 20 05 |
11, 917 |
Jun 20 07 |
13, 271 |
(h) | 13, 313 |
13, 786 |
| 10 Ken od Circ le, Bos ton wo |
100 % |
Se p 2 004 |
12, 174 |
Jun 20 07 |
14, 223 |
(c) | 14, 824 |
14, 774 |
| Co e P ark , Ch arlo tte mm erc |
100 % |
Se p 2 004 |
8,3 50 |
Jun 20 07 |
9,8 68 |
(c) | 10, 333 |
10, 251 |
| kfo rd S t, C 990 0 B tree har lott roo e |
100 % |
Se p 2 004 |
4,4 09 |
Jun 20 07 |
5,1 04 |
(c) | 5,1 66 |
5,3 02 |
| We stin gho , Ch arlo tte use |
100 % |
Se p 2 004 |
23, 114 |
Jun 20 07 |
27, 476 |
(c) | 28, 363 |
28, 541 |
| Cin Airp ort Exc han cin nat i ge, |
100 % |
Se p 2 004 |
4,9 01 |
Jun 20 07 |
4,3 95 |
(c) | 4,3 13 |
4,5 66 |
| Em pire Dr ive , Ci ncin i nat |
100 % |
Se p 2 004 |
6,6 82 |
Jun 20 07 |
6,8 06 |
(c) | 7,0 92 |
7,0 70 |
| Inte tion al W Cin cin i nat rna ay, |
100 % |
Se p 2 004 |
11, 773 |
Jun 20 07 |
13, 158 |
(c) | 12, 468 |
13, 668 |
| Ken ky D rive , Ci ncin i tuc nat |
100 % |
Se p 2 004 |
12, 745 |
Jun 20 07 |
15, 029 |
(c) | 16, 525 |
15, 612 |
| Spi ral Driv e, C inci ti nna |
100 % |
Se p 2 004 |
6,8 10 |
Jun 20 07 |
6,4 66 |
(c) | 7,2 74 |
6,7 16 |
| , Ci Tur fwa y R oad ncin nat i |
100 % |
Se p 2 004 |
5,8 19 |
Jun 20 07 |
6,0 12 |
(c) | 5,6 93 |
6,2 45 |
| 124 Co e, C inci ti mm erc nna |
100 % |
Se p 2 004 |
2,5 70 |
Jun 20 07 |
3,0 63 |
(c) | 3,1 28 |
3,1 81 |
| d, C Ken od Roa inci ti wo nna |
100 % |
Se p 2 004 |
20, 712 |
Jun 20 07 |
21, 552 |
(c) | 18, 623 |
22, 387 |
| Lak e F st D rive , Ci ncin i nat ore |
100 % |
Se p 2 004 |
13, 662 |
Jun 20 07 |
15, 426 |
(c) | 15, 609 |
16, 025 |
| Wo rld Par k, C inci ti nna |
100 % |
Se p 2 004 |
14, 371 |
Jun 20 07 |
14, 859 |
(c) | 15, 783 |
15, 435 |
| Equ ity/W est belt /Div ide nd, Co lum bus |
100 % |
Se p 2 004 |
42, 282 |
Jun 20 07 |
46, 960 |
(c) | 41, 402 |
48, 780 |
| 270 0 In atio nal Stre Co lum bus tern et, |
100 % |
Se p 2 004 |
5,0 77 |
Jun 20 07 |
4,7 75 |
(c) | 4,7 11 |
4,9 61 |
| Cr , Co 380 0 T win eek s D rive lum bus |
100 % |
Se p 2 004 |
5,3 18 |
Jun 20 07 |
5,7 28 |
(c) | 5,7 43 |
5,9 50 |
| SE Co lum bus , Co lum bus |
100 % |
Se p 2 004 |
14, 973 |
Jun 20 07 |
13, 612 |
(c) | 11, 731 |
14, 139 |
| Arli Da llas ngt on, |
100 % |
Se p 2 004 |
9,9 58 |
Jun 20 07 |
10, 436 |
(c) | 10, 919 |
10, 840 |
| 190 0 D iplo t D rive , Da llas ma |
100 % |
Se p 2 004 |
5,1 73 |
Jun 20 07 |
5,2 18 |
(c) | 4,9 06 |
5,4 20 |
| 205 5 D iplo t D rive , Da llas ma |
100 % |
Se p 2 004 |
4,1 08 |
Jun 20 07 |
4,3 39 |
(c) | 4,6 51 |
4,5 07 |
| 141 3 B rad ley Lan e, D alla s |
100 % |
Se p 2 004 Se |
3,5 09 |
Jun 20 07 |
3,4 03 |
(c) | 2,8 53 |
3,5 35 |
| Nor th L ake , Da llas Air line Dr ive llas 555 |
100 % 100 % |
p 2 004 Se 004 |
10, 992 51 |
Jun 20 07 Jun 20 07 |
15, 086 13 |
(c) | 13, 441 97 |
15, 671 12 |
| , Da 455 Air line Dr ive , Da llas |
100 % |
p 2 Se p 2 004 |
7,3 3,5 24 |
Jun 20 07 |
7,7 4,4 24 |
(c) (c) |
7,1 3,9 47 |
8,0 4,5 95 |
| Hill rd, Dal las gua |
100 % |
Se p 2 004 |
9,9 08 |
Jun 20 07 |
10, 549 |
(c) | 10, 748 |
10, 958 |
| y C 110 11 Reg t D rive , Da llas enc res |
100 % |
Se p 2 004 |
8,1 64 |
Jun 20 07 |
8,6 21 |
(c) | 8,6 04 |
8,9 55 |
| Eas t C ollin s, D alla s |
100 % |
Se p 2 004 |
4,0 54 |
Jun 20 07 |
4,2 54 |
(c) | 5,2 63 |
4,4 19 |
| 1 E Pla no/ 0 S hilo h, D alla 360 ast 100 s |
100 % |
Se p 2 004 |
14, 858 |
Jun 20 07 |
17, 600 |
(c) | 458 22, |
18, 282 |
| Eas t Pl Pa rkw Da llas ano ay, |
100 % |
Se p 2 004 |
23, 880 |
Jun 20 07 |
26, 770 |
(c) | 29, 158 |
27, 807 |
| 820 -86 0 A F, D alla ven ue s |
100 % |
Se p 2 004 |
7,6 94 |
Jun 20 07 |
7,4 41 |
(c) | 6,7 35 |
29 7,7 |
| h S 10t tree t, D alla s |
100 % |
Se p 2 004 |
10, 878 |
Jun 20 07 |
11, 399 |
(c) | 13, 162 |
11, 841 |
| Cap ital Ave Da llas nue |
100 % |
Se p 2 004 |
6,8 98 |
Jun 20 07 |
7,5 66 |
(c) | 6,9 23 |
7,8 59 |
| CT C @ Va lwo od, Da llas |
100 % |
Se p 2 004 |
3,7 40 |
Jun 20 07 |
4,9 91 |
(c) | 5,1 44 |
5,1 84 |
| Bra ckb ill, H arri sbu rg |
100 % |
Se p 2 004 |
23, 834 |
Jun 20 07 |
27, 564 |
(c) | 21, 977 |
28, 632 |
| Me cha nics bur g, H arri sbu rg |
100 % |
Se p 2 004 |
20, 555 |
Jun 20 07 |
22, 913 |
(c) | 22, 429 |
23, 801 |
| 181 Fu lling Mi ll R oad , Ha rris bur g |
100 % |
Se p 2 004 |
10, 196 |
Jun 20 07 |
10, 889 |
(c) | 11, 248 |
11, 311 |
| Gle nda le, Los An gel es |
100 % |
Se p 2 004 |
880 57, |
Jun 20 07 |
82, 237 |
(c) | 79, 028 |
85, 425 |
| ry C 144 89 Ind ust ircle , Lo s A les nge |
100 % |
Se p 2 004 |
7,9 41 |
Jun 20 07 |
12, 591 |
(c) | 12, 848 |
13, 079 |
| 145 55 Alo ndr a/6 530 Alt , Lo s A les ura nge |
100 % |
Se p 2 004 |
19, 809 |
Jun 20 07 |
31, 874 |
(c) | 31, 150 |
33, 109 |
| San Fe ndo Va lley , Lo s A les rna nge |
100 % |
Se p 2 004 |
16, 507 |
Jun 20 07 |
27, 790 |
(c) | 28, 451 |
28, 868 |
| Me his Ind ust rial , M phi mp em s |
100 % |
Se p 2 004 |
10, 653 |
Jun 20 07 |
11, 003 |
(c) | 8,7 15 |
11, 429 |
| 295 0 L exi Ave S, Min pol is ngt on nue nea |
100 % |
Se p 2 004 |
10, 063 |
Jun 20 07 |
12, 030 |
(c) | 10, 748 |
12, 496 |
| Mo und s V iew , M inn olis eap Mi |
100 % |
Se p 2 004 Se |
23, 864 |
Jun 20 07 |
25, 275 |
(c) | 25, 069 |
26, 255 |
| 610 5 T La lis ton ren ne, nne apo 5 M icel lo L inn olis 857 ont |
100 % 100 % |
p 2 004 Se 004 |
8,4 85 63 |
Jun 20 07 Jun 20 07 |
9,1 88 22 |
(c) | 10, 487 22 |
9,5 44 28 |
| , M ane eap 740 1 C ahi ll R oad , M inn olis |
100 % |
p 2 Se p 2 004 |
1,9 3,8 12 |
Jun 20 07 |
2,7 3,5 16 |
(c) (c) |
2,4 3,8 43 |
2,8 3,6 53 |
| eap |
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 28 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 3. Investment properties (continued)
| (a) Pro ties (co ntin ued ) per |
Ow shi ner p |
Ac qui siti on dat e |
Co st inc lud ing all |
Ind nde nt epe val ion uat |
Ind nde nt epe val ion uat |
Ind nde nt epe val uer |
Co lida ted nso boo k v alu e |
Co lida ted nso boo k va lue |
|---|---|---|---|---|---|---|---|---|
| Oth olid ate d in tme nt p ert ies t (c ont inu ed) er c ons ves rop - n on- cur ren |
add itio ns \$'0 00 |
dat e |
t am oun \$'0 00 |
31 Dec ber 20 07 em \$'0 00 |
Jun 30 e 2 007 \$'0 00 |
|||
| CT C @ Du lles , No rthe rn V nia |
100 % |
Se 004 |
27, 834 |
Jun 20 07 |
36, 298 |
632 | 37, 704 |
|
| irgi Ale dria , No rthe rn V irgi nia xan |
100 % |
p 2 Se p 2 004 |
51, 104 |
Jun 20 07 |
66, 794 |
(c) (c) |
33, 63, 926 |
69, 384 |
| Nok Bou leva rd, Nor the rn V irgi nia es |
100 % |
Se p 2 004 |
22, 763 |
Jun 20 07 |
38, 566 |
(c) | 35, 674 |
40, 061 |
| Gu ildfo rd, Nor the rn V irgi nia |
100 % |
Se p 2 004 |
19, 835 |
Jun 20 07 |
29, 492 |
(c) | 29, 477 |
30, 635 |
| Bea ead e T ele , No rthe rn V irgi nia um com |
100 % |
Se p 2 004 |
36, 655 |
Jun 20 07 |
47, 641 |
(c) | 47, 074 |
49, 487 |
| Orl and o C ral Par k, O rlan do ent |
100 % |
Se p 2 004 |
67, 984 |
Jun 20 07 |
85, 642 |
(c) | 87, 615 |
88, 962 |
| 0 E xch e D rive , O rlan do 750 ang |
100 % |
Se p 2 004 |
6,1 90 |
Jun 20 07 |
7,9 40 |
(c) | 8,8 90 |
8,2 48 |
| 105 -10 7 S out h 4 1st Ave , Ph ix nue oen |
100 % |
Se p 2 004 |
15, 683 |
Jun 20 07 |
21, 640 |
(c) | 26, 978 |
22, 479 |
| 142 9-1 439 So uth 40 th A Ph ix ven ue, oen |
100 % |
Se p 2 004 |
10, 224 |
Jun 20 07 |
15, 029 |
(c) | 17, 027 |
15, 612 |
| St., 103 97 We st V Bur Ph ix an en oen |
100 % |
Se p 2 004 |
8,8 10 |
Jun 20 07 |
15, 540 |
(c) | 17, 507 |
16, 142 |
| 844 44 th A Ph ix ven ue, oen |
100 % |
Se p 2 004 |
7,2 19 |
Jun 20 07 |
9,4 15 |
(c) | 10, 415 |
9,7 80 |
| So uth 9th St t, P hoe nix 220 ree |
100 % |
Se p 2 004 |
8,0 07 |
Jun 20 07 |
10, 549 |
(c) | 11, 127 |
10, 958 |
| 431 No rth 47t h A Ph ix ven ue, oen |
100 % |
Se p 2 004 |
6,8 39 |
Jun 20 07 |
9,6 42 |
(c) | 11, 108 |
10, 015 |
| 601 So uth th A Ph ix 55 ven ue, oen |
100 % |
Se p 2 004 |
5,2 23 |
Jun 20 07 |
6,5 22 |
(c) | 45 7,7 |
6,7 75 |
| 0 S 100 out h P ries t D rive , Ph ix oen |
100 % |
Se p 2 004 |
5,6 48 |
Jun 20 07 |
7,9 40 |
(c) | 8,6 06 |
8,2 48 |
| 112 0-1 150 W . Al eda Dr ive , Ph ix am oen |
100 % |
Se p 2 004 |
8,9 42 |
Jun 20 07 |
12, 137 |
(c) | 12, 759 |
12, 608 |
| 185 8 E ast En to D rive , Ph ix can oen |
100 % |
Se p 2 004 |
4,5 65 |
Jun 20 07 |
6,6 92 |
(c) | 8,0 08 |
6,9 52 |
| 380 2-3 922 Ea st U nive rsity Dr ive , Ph ix oen |
100 % |
Se p 2 004 |
10, 831 |
Jun 20 07 |
11, 797 |
(c) | 15, 082 |
12, 254 |
| Ch ino , Ri side ver |
100 % |
Se p 2 004 |
6,6 07 |
Jun 20 07 |
11, 343 |
(c) | 10, 811 |
11, 783 |
| Mir a L a, R iver side om |
100 % |
Se p 2 004 |
11, 813 |
Jun 20 07 |
24, 047 |
(c) | 23, 508 |
24, 979 |
| On tari o, R iver side |
100 % |
Se p 2 004 |
32, 788 |
Jun 20 07 |
59, 324 |
(c) | 54, 738 |
61, 624 |
| Sa a S 419 0 E ast nta An tree t, R iver side |
100 % |
Se p 2 004 |
5,5 06 |
Jun 20 07 |
11, 059 |
(c) | 9,6 25 |
11, 488 |
| Ran cho Cu a, R iver side cam ong |
100 % |
Se p 2 004 |
24, 471 |
Jun 20 07 |
44, 918 |
(c) | 42, 366 |
46, 660 |
| Jer Co Riv ide 120 00 urt, sey ers |
100 % |
Se p 2 004 |
4,7 09 |
Jun 20 07 |
8,7 91 |
(c) | 8,8 58 |
9,1 32 |
| Airw Roa d, S Die ay an go |
100 % |
Se p 2 004 |
10, 508 |
Jun 20 07 |
15, 029 |
(c) | 16, 175 |
15, 612 |
| 582 3 N Driv e, S Die ewt on an go |
100 % |
Se p 2 004 |
18, 621 |
Jun 20 07 |
30, 059 |
(c) | 33, 745 |
31, 224 |
| 0 O y, S 221 ak Rid Wa Die ge an go |
100 % |
Se p 2 004 |
5,6 68 |
Jun 20 07 |
8,1 67 |
(c) | 9,6 13 |
8,4 84 |
| Ken t W , Se attl est e |
100 % |
Se p 2 004 |
32, 205 |
Jun 20 07 |
40, 268 |
(c) | 38, 908 |
41, 829 |
| h A - So uth , Se attl 265 07 79t ven ue e |
100 % |
Se p 2 004 |
2,9 72 |
Jun 20 07 |
3,9 70 |
(c) | 53 4,0 |
4,1 24 |
| 800 5 S . 26 6th St t, S eat tle ree |
100 % |
Se p 2 004 |
7,8 47 |
Jun 20 07 |
9,7 55 |
(c) | 9,0 88 |
10, 133 |
| We st P alm Be ach , So uth Flo rida |
100 % |
Se p 2 004 |
23, 964 |
Jun 20 07 |
29, 605 |
(c) | 26, 030 |
30, 753 |
| Ca t/M lver 's, N orth Vir gin ia urry ern Tur ke Dis trib utio n C ent |
100 % 100 % |
Se p 2 004 Se 005 |
6,0 10 856 |
Jun 20 07 Jun 20 07 |
7,1 91 492 |
(c) | 6,4 54 844 |
7,4 70 635 |
| npi er 8th Av e, B Pa rk 770 0 6 |
100 % |
p 2 No v 2 005 |
24, 6,2 52 |
No v 2 005 |
29, 6,0 44 |
(c) | 33, 5,7 99 |
30, 6,0 07 |
| klyn enu roo 750 0 W 78t h S t, B loo min est tree gto n |
100 % |
No v 2 005 |
5,6 53 |
No v 2 005 |
7,1 63 |
(c) (c) |
7,0 33 |
7,1 16 |
| 128 5 & 13 01 Co Ce r D rive , 12 30 & 1 270 Ea Ind rial Roa d, E rate nte ust n |
100 % |
No v 2 005 |
21, 106 |
No v 2 005 |
17, 079 |
(c) | 22, 255 |
20, 178 |
| rpo gan aga y, S 815 1 a nd 816 1 In terc han Par kwa Ant oni ge an o |
100 % |
Jul 20 07 |
18, 308 |
n/a | n/a | - | 18, 308 |
- |
| Co I an d II , 54 11 Inte te 1 0 E d 1 228 Co y B oul rde , Sa n A nio rsto rsta ast nto rne ne an rne rwa eva |
100 % |
Aug 20 07 |
14, 924 |
n/a | n/a | - | 14, 924 |
- |
| f Sa 302 d 4 02 Tay n R oad , Po rt o n A nto nio an ma |
100 % |
Oc t 20 07 |
16, 670 |
n/a | n/a | - | 16, 670 |
- |
| 180 3 G dst and Av e, A lam o D San An io ton ran enu ow ns, |
100 % |
Aug 20 07 |
12, 209 |
n/a | n/a | - | 12, 209 |
- |
| E Dev Ave N E llis St 3 Me Rd Be nvil le, Ch icag o (O 'Ha re) 850 12 60 71 on yer nse |
100 % |
De c 2 007 |
33, 471 |
n/a | n/a | - | 33, 471 |
- |
| Tot al o the lida ted inv est nt p ert ies t r co nso me rop - n on- cur ren |
2,5 74, 577 |
3,1 41, 677 |
3,3 98, 271 |
4,0 24, 700 |
||||
| Tot al i stm ent rtie nt nve pr ope s - non -cu rre |
6,3 50, 217 |
7,5 80, 709 |
8,3 69, 124 |
8,5 85, 703 |
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 29 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 3. Investment properties (continued)
(a) Properties (continued)
(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) Weiser Realty Advisors (USA)
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 6 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.
Acquisitions
Toronto, Canada
On 22 August 2006, DIT, DDF and DB RREEF US Properties, LLC (collectively, the Investor) entered into an investor agreement with Whirlpool Corporation. Under this agreement, the Investor or its affiliate has committed to investing up to US\$415.0 million (AUD\$489.0 million) to acquire certain facilities across the US, Canada and Europe, to be built over the subsequent three years and leased long term to Whirlpool Corporation or its affiliates. The acquisition of the first facility in Orlando, Florida was completed in June 2007 with a purchase price of US\$24.3 million (AUD\$28.6 million). The acquisition of the second facility in Toronto, Canada was completed in December 2007 with a purchase price of CAD\$71.4 million (AUD\$79.9 million). Acquisition of the remaining facilities will occur following construction completion and occupancy by Whirlpool Corporation. DDF sold its interest in DB RREEF US Properties, LLC to DIT in June 2007 and accordingly, DDF is no longer an investor in this program.
San Antonio, Texas, USA
In July 2007, US REIT entered into a contract to acquire and develop certain real property commonly known as The Titan Industrial Portfolio (Titan Portfolio). Since July 2007, US REIT acquired seven stabilised assets as shown below:
| Pro ty per |
Pur cha pric se e |
|---|---|
| D\$' AU 000 |
|
| Co Co , Sa rsto I an d II , 54 11 Inte rsta te 1 0 E ast d 1 228 y B oul rde n A nto nio rne ne an rne rwa eva |
16, 068 |
| 302 d 4 02 Tay n R oad , Po f Sa n A nio rt o nto an ma |
15, 801 |
| 3 G dst and Av e, A lam o D San An io 180 ton ran enu ow ns, |
13, 063 |
| y, S 815 1 a nd 816 1 In terc han Par kwa Ant oni ge an o |
18, 700 |
| 63, 632 |
Chicago, Illinois, USA
In December 2007, DB RREEF Industrial, LLC acquired a three building industrial portfolio totaling 255,387 square feet located in the O'Hare submarket of Chicago. The portfolio is comprised of newly constructed distribution facilities developed by Seefried Properties. The acquisition price was US\$29.5 million (AUD\$34.5 million).
Acquisition of Floor Space - 130 Mary Street, Brisbane QLD On 22 November 2007, DDF acquired floor space at 130 Mary Street, Brisbane for \$2.8 million. DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 30 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 3. Investment properties (continued)
(a) Properties (continued)
Developments
Pound Rd West, Dandenong, VIC
expected to be achieved in February 2008. The development at Lot 17, Pound Rd West consists of office and warehouse of some 4,965 square meters. The total budgeted cost for the project is \$8.7m. Construction of this building has commenced and completion is
Redwood Garden, Dingley, VIC
The development consists of an office / warehouse facility for Sperian Protection Australia totalling some 3,400 square meters. Estimated cost to complete is \$3.7 million.
123 Albert Street, Brisbane, QLD
On 11 December 2007, approval was obtained from Brisbane City Council to build a 38,167 square meters office tower at 123 Albert Street, Brisbane. Development costs are estimated to be \$310.2 million and completion is expected in October 2010. Rio Tinto have entered into an agreement for lease over 25,615 square meters of the building.
60 Miller Street, North Sydney, NSW
The development consists of a new 4,532 square meters annex building at 60 Miller Street, North Sydney. Development costs are estimated to be \$27.6 million and completion is expected in February 2009.
Disposals
50 percent interest in shopping centres
On 17 October 2007, DDF sold its 50 percent interest in West Lakes Shopping Centre, North Lakes Shopping Centre, Plenty Valley Town Centre and Westfield Hurstville to DB RREEF Wholesale Property Fund (DWPF) for \$735.2 million.
(b) Reconciliation
| DD F C ons |
olid d ate |
DIT Co nso |
lida ted |
DO T C ons |
olid d ate |
|
|---|---|---|---|---|---|---|
| 31 Dec 20 07 |
30 Jun 20 07 |
31 Dec 20 07 |
30 Jun 20 07 |
31 Dec 20 07 |
30 Jun 20 07 |
|
| \$'0 00 |
\$'0 00 |
\$'0 00 |
\$'0 00 |
\$'0 00 |
\$'0 00 |
|
| Ca rryi the be gin nin f th erio d t at ng am oun g o e p |
8,5 85, 703 |
7,5 58, 945 |
1,4 31, 220 |
1,0 02, 754 |
3,1 29, 783 |
2,8 42, 573 |
| Add ition s |
62, 283 |
132 ,47 9 |
9,6 08 |
16, 304 |
10, 355 |
9,9 53 |
| Acq uisi tion s |
177 ,07 4 |
396 ,17 8 |
76, 186 |
396 ,17 8 |
- | - |
| nsf er f Tra ty, pla nt a nd ipm ent rom pro per equ |
52, 041 |
30, 328 |
52, 041 |
6,0 89 |
- | - |
| Lea ince ntiv se es |
16, 732 |
59, 655 |
1,7 94 |
6,4 34 |
10, 517 |
26, 202 |
| Am orti ion of l e in tive sat eas cen s |
(20 4) ,56 |
(37 2) ,70 |
(1,6 40) |
(3,0 07) |
(11 7) ,98 |
(21 0) ,63 |
| Ren t st raig htlin ing |
2,9 59 |
9,9 86 |
- | - | 1,5 50 |
6,8 00 |
| Dis als pos |
(73 57) 7,4 |
(16 5,9 18) |
- | (39 ,91 6) |
- | (12 6,0 02) |
| 1 Tra nsf qui ed inve er t ty a unt stm ent o e cco |
(54 ,47 8) |
- | - | - | (54 ,47 8) |
- |
| Net in f fai lue adj ust nts ga rom r va me |
336 ,09 0 |
831 ,33 0 |
36, 029 |
62, 320 |
263 ,04 8 |
381 ,10 6 |
| For eig xch e d iffe for eig nsla tion tra n e ang ren ces on n c urre ncy |
(51 ,25 9) |
(22 78) 9,5 |
20, 655 |
(15 6) ,93 |
(3,8 28) |
10, 781 |
| Ca ing f th erio t at the d o d rry am oun en e p |
8,3 69, 124 |
8,5 85, 703 |
1,6 25, 893 |
1,4 31, 220 |
3,3 44, 960 |
3,1 29, 783 |
1 On 15 October 2007, the Bent Street Trust was transferred to equity accounted investments due to the sale of 31.8 percent to DB RREEF Wholesale Property Fund.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 31 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 4. Other financial assets
| DDF Consolidated | DRO Consolidated | |||
|---|---|---|---|---|
| 31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
|
| Loan notes receivable from DB RREEF Holdings Pty Limited | 51,936 | 51,936 | 51,936 | 51,936 |
| Total other financial assets | 51,936 | 51,936 | 51,936 | 51,936 |
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 (FAP) 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 of equal amounts to its two owners to fund the acquisition of DB RREEF Wholesale Property Limited (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.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 32 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 5. Property plant and equipment
(a) Property plant and equipment
| DD F C olid ate ons |
d | DIT Co lida ted nso |
DO T C olid d ate ons |
DR O C olid d ate ons |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 31 Dec ber 20 07 em |
Con ctio stru n in p rog res s \$'00 0 |
Lan d a nd free hol d bui ldin gs \$'0 00 |
Tot al \$'0 00 |
Con ctio stru n in p rog res s \$'0 00 |
Lan d a nd free hol d bui ldin gs \$'0 00 |
Tot al \$'0 00 |
Con ctio stru n in p rog res s \$'0 00 |
Lan d a nd free hol d bui ldin gs \$'0 00 |
Tot al \$'0 00 |
Con ctio stru n in p rog res s \$'0 00 |
Lan d a nd free hol d bui ldin gs \$'0 00 |
Tot al \$'0 00 |
| Ope ning ba lanc 1 Ju ly 2 007 at e as Add ition s For eign han ge d iffer n fo reig exc enc es o n cu rren cy tran slat ion |
181 ,919 67, 151 (2,1 09) |
132 ,102 14, 715 - |
314 ,021 81, 866 (2,1 09) |
144 ,774 8,1 99 - |
46, 623 - - |
191 ,397 8,1 99 - |
- 462 - |
27, 530 - - |
27, 530 462 - |
- 15, 194 - |
56, 906 13, 869 - |
56, 906 29, 063 - |
| Dep reci atio n ch arg e Dis al o f int st pos ere Tra nsfe r to inve stm ent pert ies pro |
- (49 ,185 ) (47 ,961 ) |
(1,0 63) (2,8 55) (4,0 80) |
(1,0 63) (52 ,040 ) (52 ,041 ) |
- (49 ,185 ) (47 ,961 ) |
- (2,8 55) (4,0 80) |
- (52 ,040 ) (52 ,041 ) |
- - - |
- - - |
- - - |
- - - |
(1,0 63) - - |
(1,0 63) - - |
| Clo sin g b ala at 3 1 D mb er 2 007 nce as ece |
149 ,815 |
138 ,819 |
288 ,634 |
55, 827 |
39, 688 |
95, 515 |
462 | 27, 530 |
27, 992 |
15, 194 |
69, 712 |
84, 906 |
| Cos t Acc late d de ciat ion umu pre |
149 ,815 - |
143 ,393 (4,5 74) |
293 ,208 (4,5 74) |
55, 827 - |
39, 688 - |
95, 515 - |
462 - |
27, 530 - |
27, 992 - |
15, 194 - |
74, 286 (4,5 74) |
89, 480 (4,5 74) |
| Net bo ok val t 31 De ber 20 07 ue as a cem |
149 ,815 |
138 ,819 |
288 ,634 |
55, 827 |
39, 688 |
95, 515 |
462 | 27, 530 |
27, 992 |
15, 194 |
69, 712 |
84, 906 |
| 30 J 20 07 une |
DD F C olid ated ons Con ctio stru n in p rog ress \$'00 0 |
Lan d a nd free hold bui ldin gs \$'00 0 |
Tot al \$'00 0 |
DIT Co lida ted nso Con ctio stru n in p rog ress \$'00 0 |
Lan d a nd free hold bui ldin gs \$'00 0 |
Tot al \$'00 0 |
DO T C olid ated ons Con ctio stru n in p rog ress \$'00 0 |
Lan d a nd free hold bui ldin gs \$'00 0 |
Tot al \$'00 0 |
DR O C olid ated ons Con ctio stru n in p rog ress \$'00 0 |
Lan d a nd free hold bui ldin gs \$'00 0 |
Tot al \$'00 0 |
| Ope ning ba lanc 1 Ju ly 2 at 006 e as Add ition s For eign han ge d iffer n fo reig exc enc es o n cu rren cy slat ion tran |
104 ,190 114 ,937 (6,8 80) |
69, 278 65, 312 - |
173 ,468 180 ,249 (6,8 80) |
67, 544 83, 319 - |
12, 806 33, 817 - |
80, 350 117 ,136 - |
- - - |
- 27, 530 - |
- 27, 530 - |
- - - |
56, 472 2,9 22 - |
56, 472 2,9 22 - |
| Dep reci atio n ch arg e Tra nsfe inve ies r to stm ent pert pro |
- (30 ,328 ) |
(2,4 88) - |
(2,4 88) (30 ,328 ) |
- (6,0 89) |
- - |
- (6,0 89) |
- - |
- - |
- - |
- - |
(2,4 88) - |
(2,4 88) - |
| Clo sin g b ala at 3 0 J 20 07 nce as une |
181 ,919 |
132 ,102 |
314 ,021 |
144 ,774 |
46, 623 |
191 ,397 |
- | 27, 530 |
27, 530 |
- | 56, 906 |
56, 906 |
| Cos t Acc late d de ciat ion umu pre |
181 ,919 - |
135 ,613 (3,5 11) |
317 ,532 (3,5 11) |
144 ,774 - |
46, 623 - |
191 ,397 - |
- - |
27, 530 - |
27, 530 - |
- - |
60, 417 (3,5 11) |
60, 417 (3,5 11) |
| Net bo ok val t 30 Ju 200 7 ue as a ne |
181 ,919 |
132 ,102 |
314 ,021 |
144 ,774 |
46, 623 |
191 ,397 |
- | 27, 530 |
27, 530 |
- | 56, 906 |
56, 906 |
(b) Basis of valuation
Freehold land and buildings are accounted for using the cost method. Construction in progress is recognised at fair value. As at 31 December 2007, 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.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 33 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 5. Property plant and equipment (continued)
(d) Acquisitions and developments
Acquisitions
San Antonio, Texas, USA In July 2007, eight parcels of land were acquired in San Antonio, Texas for US\$6.6 million (AUD\$7.6 million).
Greystanes, NSW On 21 December 2007, settlement occurred for the acquisition of a site at Greystanes. \$23.6 million was paid on settlement, with the remaining \$134.1 million to be paid upon completion of each of the four stages of development.
Developments
Boundary Road, North Laverton, VIC In August 2006, DIT entered into agreement to lease and build a distribution centre for Fosters Limited. Practical completion was achieved on 6 July 2007 with a development cost of \$32.7 million.
Boundary Road, North Laverton, VIC
In October 2007, DIT entered into an agreement to lease and build an office warehouse facility for Best Bar (VIC) Pty Ltd. Completion is estimated to occur in September 2008. The total budgeted cost for the project is \$12.1 million.
Atlantic Corporate Park, Sterling, Virginia
The development consists of two four-story office buildings comprising 20,438 square meters in Virginia. The total budgeted cost for the project is US\$47.6 million (AUD\$54.0 million). The current plan calls for construction completion in early 2008 with stabilization occurring approximately 12-15 months thereafter.
Summit Oaks, Valencia, California
The development consists of a five-story office building comprising 12,949 square meters in Santa Clarita, California. The total budgeted cost for the project is US\$45.2 million (AUD\$51.3 million). The current plan calls for construction completion by June 2008 with stabilization occurring approximately 12-15 months thereafter.
Beaumeade, Ashburn, Virginia
The development consists of two flex industrial buildings comprising 12,727 square meters in Ashburn, Virginia. The total budgeted cost for the project is US\$16.9 million (AUD\$19.2 million). Construction is due to start in May 2008 and completion is expected by December 2009.
Disposals
Boundary Road, North Laverton, VIC In May 2007, DIT entered into an agreement for the sale of 50 percent of the Coles Myer development at Boundary Rd, Laverton North for \$58.0 million. Settlement occurred on 18 December 2007. The remaining 50% has been transferred to investment properties at 31 December 2007.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 34 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUSTNOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 6. Investments accounted for using the equity method
Investments are accounted for in the consolidated Financial Statements using the equity method of accounting (refer note 1).
Information relating to these entities is set out below.
| f en tity Nam e o |
Pri nci tivi pal ty ac |
shi Ow ner p inte t res |
shi Ow ner p inte t res |
DD F C olid ons |
d ate |
DIT Co nso |
lida ted |
DO T C ons |
olid d ate |
DR O C olid ons |
d ate |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 31 Dec 20 07 |
30 Jun 20 07 |
31 Dec 20 07 |
30 Jun 20 07 |
31 Dec 20 07 |
30 Jun 20 07 |
31 Dec 20 07 |
30 Jun 20 07 |
31 Dec 20 07 |
30 Jun 20 07 |
||
| % | % | \$'0 00 |
\$'0 00 |
\$'0 00 |
\$'0 00 |
\$'0 00 |
\$'0 00 |
\$'0 00 |
\$'0 00 |
||
| t 1 Mt Dru itt S hop pin g C re T ent rus |
Ret ail ty i stm ent pro per nve |
- | 50. 0 |
- | 211 ,51 7 |
- | - | - | - | - | - |
| 2 O 'Co ll S tree t Tr ust nne |
Co ial p erty inv est nt mm erc rop me |
50. 0 |
50. 0 |
8,6 63 |
8,5 65 |
- | - | 8,6 63 |
8,5 63 |
- | - |
| 4 O 'Co ll S t Tr tree ust nne |
Co ial p inv erty est nt mm erc rop me |
50. 0 |
50. 0 |
16, 361 |
16, 054 |
- | - | 16, 361 |
16, 054 |
- | - |
| h S Blig tree t Tr ust |
Co ial p erty inv est nt mm erc rop me |
50. 0 |
50. 0 |
15, 787 |
16, 133 |
- | - | 15, 787 |
16, 133 |
- | - |
| ust2 t St Ben t Tr ree |
Co ial p inv erty est nt mm erc rop me |
68. 2 |
100 .0 |
53, 603 |
- | - | - | 53, 603 |
- | - | - |
| DB RR EE F H old ing s P ty L imit ed |
Ass nd fun ds et, ty a pro per ent ma nag em |
50. 0 |
50. 0 |
17, 867 |
17, 886 |
- | - | - | - | 17, 867 |
17, 886 |
| DR RR EE F In dus tria l Pr rtie ope s, . 3 Inc |
Ass et a nd ty i stm ent pro per nve |
50. 0 |
50. 0 |
- | - | 377 ,58 0 |
270 ,19 3 |
- | - | - | - |
| Tot al |
112 ,28 1 |
270 ,15 5 |
377 ,58 0 |
270 ,19 3 |
94, 414 |
40, 750 |
17, 867 |
17, 886 |
1 On 17 October 2007, Mt Druitt Shopping Centre Trust was sold to DWPF for a settlement price of \$215.2 million
2 On 15 October 2007, the Bent Street Trust was transferred from investment properties due to the sale of 31.8 percent to DB RREEF Wholesale Property Fund.
3 The remaining 50 percent of this entity is owned by DDF. As a result, this entity is classed as controlled on a DDF consolidated basis.
These entities were formed in Australia with the exception of DB RREEF Industrial Properties, Inc. which was formed in the United States.
| DD F C ons |
olid d ate |
DIT Co nso |
lida ted |
DO T C ons |
olid d ate |
DR O C ons |
olid d ate |
|
|---|---|---|---|---|---|---|---|---|
| Dec 31 20 07 \$'0 00 |
30 Jun 20 07 \$'0 00 |
Dec 31 20 07 \$'0 00 |
30 Jun 20 07 \$'0 00 |
Dec 31 20 07 \$'0 00 |
30 Jun 20 07 \$'0 00 |
Dec 31 20 07 \$'0 00 |
30 Jun 20 07 \$'0 00 |
|
| Mo ent s in ing ts o f in tme nts nte d fo ing the uity tho d vem ca rry am oun ves ac cou r us eq me |
||||||||
| Ca rryi 1 J uly 200 t as at 7 ng am oun |
,15 5 270 |
235 ,06 2 |
270 ,19 3 |
272 ,40 0 |
750 40, |
36, 800 |
17, 886 |
15, 761 |
| Inte t ac qui red du ring the riod res pe |
3,7 04 |
2,0 53 |
140 ,17 8 |
1,3 60 |
3,7 04 |
- | - | 2,2 82 |
| es2 nsf er f Tra inv est nt p erti rom me rop |
54, 478 |
- | - | - | 54, 478 |
- | - | - |
| Sha f ne ofit s/(l es) aft t pr er t re o oss ax |
1,4 72 |
52, 715 |
(6,8 37) |
53, 186 |
(4,0 88) |
5,7 17 |
1,9 31 |
6,3 43 |
| Dis trib utio ns/ div ide nds eive d rec |
(6,7 60) |
(19 ,67 5) |
(13 ,55 6) |
(22 ,46 4) |
(43 0) |
(1,7 67) |
(1,9 50) |
(6,5 00) |
| Dis al o f in tme nt pos ves |
(21 68) 0,7 |
- | - | - | - | - | - | - |
| For eig xch e d iffe for eig tra nsla tion n e ang ren ces on n c urre ncy |
- | - | (12 ,39 8) |
(34 ,28 9) |
- | - | - | - |
| Ca ing t as at 31 Dec ber 20 07 rry am oun em |
112 ,28 1 |
270 ,15 5 |
377 ,58 0 |
270 ,19 3 |
94, 414 |
40, 750 |
17, 867 |
17, 886 |
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 35 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 7. Loans with related parties
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| Current assets | 31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
| Non-interest bearing loan with the Trusts 1 | - | - | 138,948 | 138,948 | - | - | - | - |
| Loan receivable from Bent Street Trust | 4,411 | - | - | - | 4,411 | - | - | - |
| Loan receivable from DB RREEF Wholesale Property Fund | 23,225 | - | - | - | 23,225 | - | - | - |
| Total current assets - loan with related parties | 27,636 | - | 138,948 | 138,948 | 27,636 | - | - | - |
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
| Non-current assets | 31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
| Intercompany loans2 | - | - | - | - | - | 87,281 | 1,291,879 | 1,625,754 |
| Total non-current assets - loan with related parties | - | - | - | - | - | 87,281 | 1,291,879 | 1,625,754 |
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
| Current liabilities | 31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
| Non-interest bearing loan with the Trusts 1 | - | - | - | - | 55,684 | 55,684 | 48,932 | 48,932 |
| Loan payable to Bent Street Trust | 26,391 | - | - | - | 26,391 | - | - | - |
| Total current liabilities - loan with related parties | 26,391 | - | - | - | 82,075 | 55,684 | 48,932 | 48,932 |
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
| Non-current liabilities | 31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
| Intercompany loans2 | - | - | 1,022,120 | 922,312 | 269,760 | - | 88,352 | 87,281 |
Total non-current liabilities - loan with related parties - - 1,022,120 922,312 269,760 - 88,352 87,281
1 Non-interest bearing loans with the Trusts were created to effect the stapling of DDF, DIT, DOT and DRO. These loan balances eliminate on consolidation.
2 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 | ||||||||
|---|---|---|---|---|---|---|---|---|
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
| 31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
|
| Current | ||||||||
| Secured | ||||||||
| Bank loans | 3,515 | 12,828 | - | - | - | - | - | - |
| Total secured | 3,515 | 12,828 | - | - | - | - | - | - |
| Unsecured | ||||||||
| Bank loans | 122,074 | 7,070 | 61,873 | - | - | - | 60,201 | 7,070 |
| Total unsecured | 122,074 | 7,070 | 61,873 | - | - | - | 60,201 | 7,070 |
| Deferred borrowing costs | (1,855) | (1,455) | - | - | - | (493) | (48) | |
| Total current liabilities - interest bearing liabilities | 123,734 | 18,443 | 61,873 | - | - | - | 59,708 | 7,022 |
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
| 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | |
| Non-current | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 |
| Secured | ||||||||
| Commercial paper | - | 344,500 | - | - | - | 344,500 | - | - |
| Commercial mortgage backed securities | 500,000 | 684,693 | - | - | 500,000 | 500,000 | - | - |
| Bank loans | 342,070 | 357,195 | - | - | - | - | - | - |
| Total secured | 842,070 | 1,386,388 | - | - | 500,000 | 844,500 | - | - |
| Unsecured | ||||||||
| Commercial notes | 453,720 | 471,309 | 17,027 | 17,687 | - | - | 226,860 | 235,654 |
| Bank loans Medium term notes |
1,005,265 455,923 |
1,026,957 456,153 |
- - |
- - |
- - |
- - |
566,290 450,000 |
905,595 450,000 |
| Preferred shares | 105 | 109 | - | - | - | - | - | - |
| Total unsecured | 1,915,013 | 1,954,528 | 17,027 | 17,687 | - | - | 1,243,150 | 1,591,249 |
| Deferred borrowing costs | (4,546) | (6,032) | (481) | (518) | (490) | (773) | (1,679) | (2,121) |
| Total non-current liabilities - interest bearing liabilities | 2,752,537 | 3,334,884 | 16,546 | 17,169 | 499,510 | 843,727 | 1,241,471 | 1,589,128 |
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 36 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 8. Interest bearing liabilities (continued)
| Financing arrangements | |
|---|---|
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | 31 Dec 2007 | 30 Jun 2007 | |
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |
| The Trusts have access to the following lines of credit: | ||||||||
| Borrowing facilities | ||||||||
| Commercial paper | - | 346,000 | - | - | - | 346,000 | - | - |
| Commercial mortgage backed securities | 500,000 | 684,693 | - | - | 500,000 | 500,000 | - | - |
| Commercial notes | 453,720 | 471,309 | - | - | - | - | 226,860 | 235,654 |
| Bank loans | 2,179,904 | 1,818,854 | - | - | - | - | 1,834,319 | 1,448,830 |
| Medium term notes | 455,923 | 456,153 | - | - | - | - | 450,000 | 450,000 |
| 3,589,547 | 3,777,009 | - | - | 500,000 | 846,000 | 2,511,179 | 2,134,484 | |
| Bank guarantee facility utilised at balance date | (4,013) | (3,306) | - | - | - | - | (1,497) | (1,496) |
| Used at balance date by DB RREEF Industrial Properties, Inc. |
- | - | - | - | - | - | (441,491) | (121,362) |
| Used at balance date by DIT France Logistique SAS | - | - | - | - | - | - | (61,873) | - |
| Used at balance date | (2,882,567) | (3,360,705) | - | - | (500,000) | (844,500) | (1,303,351) | (1,598,319) |
| Unused at balance date | 702,967 | 412,998 | - | - | - | 1,500 | 702,967 | 413,307 |
Bank loans
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 (\$238.2 million) USD currency revolving credit facility maturing in September 2010. In addition, DB RREEF Finance Pty Limited has bi-lateral bank debt facilities comprising multi-currency revolving credit facilities of \$860.0 million and US\$120.0 million (\$136.116 million) with maturities of \$360.0 million in December 2010, \$250.0 million in December 2012, \$250.0 million in September 2013 and US\$120.0 million (\$136.1 million) in December 2013. Of one of the \$250.0 million facilities, \$1.5 million and US\$2.2 million (\$2.5 million) are utilised as bank guarantees for developments. These bank debt facilities are supported by the Trusts' guarantee arrangements. These facilities have negative pledge provisions which limit the amount and type of encumbrances that the Trusts' can have over their assets and ensures that all senior unsecured debt ranks pari pasu. US REIT may borrow under the US\$210.0 million, \$860.0 million, and US\$120.0 million multi-currency revolving credit facilities. DIT France may borrow under the two \$300.0 million and the US\$210.0 million multi-currency revolving credit facilities.
The current debt facilities will be refinanced as at / or prior to their maturity.
Bank loans - secured
The facilities include a total of US\$79.7 million (\$90.4 million) of secured bank debt facilities that amortise through monthly principal and interest payments with a weighted average maturity date of April 2009 and a US\$225.0 million (\$255.2 million) secured interest only bank loan maturing in September 2011 (maximum assuming two twelve month extension options are executed). These facilities are secured by mortgages over investment properties totalling US\$236.5 million (\$268.2 million) and US\$586.1 million (\$664.9 million) respectively as at 31 December 2007.
Commercial notes - US Private Placement
DB RREEF Finance Pty Limited has on issue US\$200.0 million (\$226.9 million) of notes which were privately placed with investors on terms to maturity ranging from December 2011 to March 2017.
US REIT has on issue US\$200.0 million (\$226.9 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 Trusts' guarantee arrangements. These notes have negative pledge provisions which limit the amount and type of encumbrances that the Trusts can have over their assets and ensures that all senior unsecured debt ranks pari pasu.
Commercial paper and commercial mortgage backed securities
DOT has liabilities resulting from the issuance of \$500.0 million commercial mortgage backed securities (CMBS). The CMBS has an anticipated maturity date of April 2009 and is secured by mortgages over seven investment properties of DOT with a total value of \$2,087.4 million as at 31 December 2007. The mortgage over one of the investment properties (St Georges Terrace, Perth WA) was removed during the period.
During the period, \$344.5 million (facility limit of \$346.0 million) of asset backed commercial paper (CP) was repaid and the associated standby and liquidity facilities were cancelled.
The US\$156.7 million (\$177.8 million) CMBS issue was repaid during the period, using funds drawn from existing borrowing facilities, and associated mortgages cancelled.
Medium term notes
US REIT has liabilities resulting from US\$5.2 million (\$5.9 million) unsecured medium term notes maturing in September 2010.
DB RREEF Finance Pty Limited has on issue \$450.0 million of unsecured medium term notes, maturing in February 2010 (\$250.0 million) and February 2011 (\$200.0 million). These notes are supported by the Trusts' guarantee arrangements. These notes have negative pledge provisions which limit the amount and type of encumbrances that the Trusts' can have over their assets and ensures that all senior unsecured debt ranks pari pasu.
Preferred Shares
US REIT has issued US\$92,550 (\$104,980) 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.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 37 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 9. Contributed equity
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| 31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
|
| (a) Contributed equity of equity holders of the parent | ||||||||
| Opening balance at the beginning of the period | 1,151,526 | 1,094,144 | 722,005 | 689,280 | 1,453,980 | 1,399,806 | 6,848 | 5,801 |
| Distributions reinvested | 29,431 | 57,382 | 18,460 | 32,725 | 21,046 | 54,174 | 1,750 | 1,047 |
| Closing balance at the end of the period | 1,180,957 | 1,151,526 | 740,465 | 722,005 | 1,475,026 | 1,453,980 | 8,598 | 6,848 |
| (b) Contributed equity of equity holders of other entities stapled to DDF | ||||||||
| Opening balance at the beginning of the period | 2,182,833 | 2,094,887 | - | - | - | - | - | - |
| Distributions reinvested | 41,256 | 87,946 | - | - | - | - | - | - |
| Closing balance at the end of the period | 2,224,089 | 2,182,833 | - | - | - | - | - | - |
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| 31 Dec 2007 No. of securities |
30 Jun 2007 No. of securities |
31 Dec 2007 No. of units |
30 Jun 2007 No. of units |
31 Dec 2007 No. of units |
30 Jun 2007 No. of units |
31 Dec 2007 No. of units |
30 Jun 2007 No. of units |
|
| (c) Number of securities on issue Opening balance at the beginning of the period Distributions reinvested |
2,894,600,006 37,466,012 |
2,802,209,393 92,390,613 |
2,894,600,006 37,466,012 |
2,802,209,393 92,390,613 |
2,894,600,006 37,466,012 |
2,802,209,393 92,390,613 |
2,894,600,006 37,466,012 |
2,802,209,393 92,390,613 |
| Closing balance at the end of the period | 2,932,066,018 | 2,894,600,006 | 2,932,066,018 | 2,894,600,006 | 2,932,066,018 | 2,894,600,006 | 2,932,066,018 | 2,894,600,006 |
Terms and conditions
Each stapled security ranks equally with all other stapled securities for the purposes of distributions and on termination of the Trust. Each stapled security entitles the holder to one vote, either in person or by proxy, at a meeting of each of the Trusts.
Distribution reinvestment plan
Under the distribution reinvestment plan (DRP), stapled security holders may elect to have all or part of their distribution entitlements satisfied by the issue of new stapled securities, rather than being paid in cash.
37,466,012 securities were issued to existing DRT security holders on 29 August 2007, under this DRP at a unit price of \$1.8867 in relation to the June 2007 distribution period.
37,466,012 securities were issued to existing DDF security holders on 29 August 2007, under this DRP at a unit price of \$0.7856 in relation to the June 2007 distribution period.
37,466,012 securities were issued to existing DIT security holders on 29 August 2007, under this DRP at a unit price of \$0.4927 in relation to the June 2007 distribution period.
37,466,012 securities were issued to existing DOT security holders on 29 August 2007, under this DRP at a unit price of \$0.5617 in relation to the June 2007 distribution period.
37,466,012 securities were issued to existing DRO security holders on 29 August 2007, under this DRP at a unit price of \$0.0467 in relation to the June 2007 distribution period.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 38 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 10. Distributions paid and payable
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| (a) Distribution to stapled security holders | 31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
| 31 December (payable 29 February 2008) | 172,992 | 159,646 | 20,591 | 35,949 | 31,245 | 59,511 | 4,282 | 1,151 |
| 172,992 | 159,646 | 20,591 | 35,949 | 31,245 | 59,511 | 4,282 | 1,151 | |
| (b) Distribution to other minority interests | ||||||||
| DB RREEF Industrial Holdings, LLC (paid) | 421 | 2,143 | - | - | - | - | - | - |
| DB RREEF RENTS Trust (paid 16 October 2007) | 3,978 | 3,737 | - | - | 3,978 | 3,737 | - | - |
| DB RREEF RENTS Trust (payable 16 January 2008) | 4,202 | 3,856 | - | - | 4,202 | 3,856 | - | - |
| 8,601 | 9,736 | - | - | 8,180 | 7,593 | - | - | |
| Total distributions | 181,593 | 169,382 | 20,591 | 35,949 | 39,425 | 67,104 | 4,282 | 1,151 |
| (c) Distribution rate | DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | ||||
| 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | |
| Cents per | Cents per | Cents per | Cents per | Cents per | Cents per | Cents per | Cents per | |
| security | security | unit | unit | unit | unit | unit | unit | |
| 31 December (payable 29 February 2008) | 5.90 | 5.60 | 0.70 | 1.26 | 1.07 | 2.09 | 0.15 | .04 |
| Total | 5.90 | 5.60 | 0.70 | 1.26 | 1.07 | 2.09 | 0.15 | .04 |
(d) Franked dividends
The franked portions of the final dividend recommended for the year ended 30 June 2008 will be franked out of existing franking credits or out of franking credits arising from the payment of income tax in the year ended 30 June 2008.
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | |||||
|---|---|---|---|---|---|---|---|---|
| 31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
31 Dec 2007 \$'000 |
31 Dec 2006 \$'000 |
|
| Franking Credits | ||||||||
| Opening balance at the beginning of the period | 3,512 | 744 | - | - | - | - | 3,512 | 744 |
| Franking credits arising during the period on payment of tax at 30 percent |
2,021 | 1,225 | - | - | - | - | 2,021 | 1,225 |
| Franking credits arising from receipt of dividends | 1,393 | 2,036 | - | - | - | - | 1,393 | 2,036 |
| Franking debits arising from payment of dividends | (2,390) | - | - | - | - | - | (2,390) | - |
| Closing balance at the end of the period | 4,536 | 4,005 | - | - | - | - | 4,536 | 4,005 |
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 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
31 Dec 2007 \$'000 |
30 Jun 2007 \$'000 |
|
| Bank guarantees by the Trusts in respect of variations and other financial risks associated with the development of: |
||||||||
| Coles Myer development at Boundary Road, Laverton, VIC |
1,000 | 1,000 | 1,000 | 1,000 | - | - | 1,000 | 1,000 |
| 60 Miller Street, North Sydney, NSW | 497 | 496 | - | - | 497 | 496 | 497 | 496 |
| Atlantic Corporate Park, Sterling, Virginia USA | 1,742 | 1,810 | - | - | - | - | - | - |
| The Titan Industrial Portfolio | 774 | - | - | - | - | - | - | - |
| Total contingent liabilities | 4,013 | 3,306 | 1,000 | 1,000 | 497 | 496 | 1,497 | 1,496 |
The Trusts are also guarantors of a AUD\$600 million and USD\$210 million syndicated bank debt facility and a total of AUD\$860 million and USD\$120 million of bank bi-lateral facilities, a total of \$450 million of medium term notes and a total of USD\$400 million of privately placed notes, which have all been negotiated to finance the Trusts. The guarantees have been given in support of debt outstanding and drawn against these facilities.
The guarantees are issued in respect of the Trusts 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 Trusts, other than those disclosed in the Financial Statements, which should be brought to the attention of security holders as at the date of completion of this report.
Note 12. Events occurring after reporting date
DRT US Whirlpool Trust
On 22 August 2006, DIT, DDF and DB RREEF US Properties, LLC (collectively, the Investor) entered into an investor agreement with Whirlpool Corporation. Under this agreement, the Investor or its affiliate has committed to investing up to USD\$415.0 million (AUD\$489.0 million) to acquire certain facilities across the US, Canada and Europe, to be built over the subsequent three years and leased long term to Whirlpool Corporation or its affiliates. The acquisition of the first facility in Orlando, Florida was completed in June 2007 with a purchase price of USD\$24.3 million (AUD\$28.6 million). The acquisition of the second facility in Toronto, Canada was completed in December 2007 with a purchase price of CAD\$71.4 million (AUD\$79.9 million). The acquisition of the third facility in Perris, Southern California was completed on 17 January 2008 with a purchase price of USD\$128.6 million (AUD\$145.4 million). Acquisition of the remaining facilities will occur following construction completion and occupancy by Whirlpool Corporation. DDF sold its interest in DB RREEF US Properties, LLC to DIT in June 2007 and accordingly, DDF is no longer an investor in this program.
123 Albert Street, Brisbane QLD
On 8 February 2008, Rio Tinto signed a 10 year lease to occupy approximately 25,000 square metres at 123 Albert Street, Brisbane.
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 Trusts, the results of those operations, or state of the Trusts' affairs in future financial periods.
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 40 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 13. Segment information
DDF Consolidated Business segments
The Trusts operate 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 2007 | Retail | Commercial & Car Park |
Industrial | Eliminations/ Unallocated |
Consolidated |
|---|---|---|---|---|---|
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |
| Property revenue | 24,267 | 154,138 | 160,899 | - | 339,304 |
| Interest revenue | 486 | 748 | 893 | 3,107 | 5,234 |
| Share of net profits/(losses) of associates accounted for using the equity method |
3,629 | (4,088) | - | 1,931 | 1,472 |
| Net gain on sale of investment properties | 1,366 | - | 5,919 | - | 7,285 |
| Net fair value gain of investment properties |
709 | 291,949 | 43,432 | - | 336,090 |
| Net foreign exchange gain/(loss) | - | (3) | 2,223 | - | 2,220 |
| Other income | 7 | 57 | 3 | - | 67 |
| Total segment revenue/income | 30,464 | 442,801 | 213,369 | 5,038 | 691,672 |
| Segment result attributable to stapled security holders |
21,832 | 369,171 | 118,509 | (76,832) | 432,680 |
| 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 |
| Other income | - | 281 | 244 | 139 | 664 |
| Total segment revenue/income | 103,113 | 451,858 | 166,219 | 7,134 | 728,324 |
| Segment result attributable to stapled security holders |
92,230 | 372,101 | 60,729 | (14,578) | 510,482 |
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 41 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 13. Segment information (continued)
DIT
Geographical segments
DIT's investments are located in Australia, the United States of America, France, Germany and Canada.
| 31 December 2007 | Australia United States of America |
France | Germany | Canada | Consolidated | |
|---|---|---|---|---|---|---|
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |
| Property revenue | 51,523 | 1,030 | 4,732 | 9,032 | - | 66,317 |
| Interest revenue | 155 | 17 | 75 | 30 | 9 | 286 |
| Share of net profits of associates accounted | - | - | - | - | - | |
| for using the equity method | ||||||
| Net gain on sale of investment properties | 5,919 | - | - | - | - | 5,919 |
| Net fair value gain of investment properties | 67,445 | 3,016 | (19,860) | (14,572) | - | 36,029 |
| Net foreign exchange gain | - | 1,184 | (203) | 179 | - | 1,160 |
| Total segment revenue/income | 125,042 | 5,247 | (15,256) | (5,331) | 9 | 109,711 |
| Segment result attributable to unitholders | 86,249 | (13,250) | (19,385) | (13,078) | 64 | 40,600 |
| 31 December 2006 | Australia United States of | France | Germany | Consolidated | ||
| America | ||||||
| \$'000 | \$'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 | - | - | - | 67 | |
| Net fair value gain of investment properties | 13,086 | - | - | - | 13,086 | |
| Net fair value gain of derivatives | 984 | - | - | - | 984 | |
| Other income | 244 | - | - | - | 244 | |
| Total segment revenue/income | 63,074 | 5,182 | 5,219 | - | 73,475 | |
| Segment result attributable to unitholders | 36,892 | 5,182 | 1,088 | - | 43,162 |
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 42 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
Note 13. Segment information (continued)
DOT
Geographical segments
DOT's investments are located in Australia and New Zealand.
| 31 December 2007 | Australia | New Zealand | Consolidated |
|---|---|---|---|
| \$'000 | \$'000 | \$'000 | |
| Property revenue | 113,048 | 4,983 | 118,031 |
| Interest revenue | 583 | 142 | 725 |
| Net fair value gain of investment properties | 253,348 | 9,700 | 263,048 |
| Other income | 57 | - | 57 |
| Total segment revenue/income | 367,036 | 14,825 | 381,861 |
| Segment result attributable to unitholders | 308,097 | 13,787 | 321,884 |
| 31 December 2006 | Australia | New Zealand | Consolidated |
| \$'000 | \$'000 | \$'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 | - | 5,182 |
| Net fair value gain of investment properties | 257,776 | 11,460 | 269,236 |
| Other income | 281 | - | 281 |
| Total segment revenue/income | 388,624 | 16,499 | 405,123 |
| Segment result attributable to unitholders | 327,980 | 15,408 | 343,388 |
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 2007 | Financial services |
Property development |
Investments in funds management company |
Eliminations/ Unallocated |
Consolidated |
|---|---|---|---|---|---|
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |
| Property revenue | - | 2,368 | - | - | 2,368 |
| Interest revenue | 78 | 18 | 2,880 | 153 | 3,129 |
| Interest revenue from the Trusts | 41,756 | - | - | - | 41,756 |
| Recoverables from the Trusts | 1,096 | - | - | - | 1,096 |
| Share of net profits of associates accounted for using the equity method |
- | - | 1,931 | - | 1,931 |
| Total segment revenue/income | 42,930 | 2,386 | 4,811 | 153 | 50,280 |
| Segment result attributable to unitholders | (3,532) | (1,209) | 3,847 | (62) | (956) |
| 31 December 2006 | Financial services |
Property development |
Investments in funds management company |
Eliminations/ Unallocated |
Consolidated |
|---|---|---|---|---|---|
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |
| Property revenue | - | 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 | - | 2 | - | 86 | 88 |
| Total segment revenue/income | 41,825 | 2,664 | 6,644 | 126 | 51,259 |
| Segment result attributable to unitholders | (869) | (728) | 5,691 | 243 | 4,337 |
DB RREEF DIVERSIFIED TRUST, DB RREEF INDUSTRIAL TRUST, Page No. 44 of 56 DB RREEF OFFICE TRUST AND DB RREEF OPERATIONS TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 \$323.3 million US denominated debt. However, during the period, proceeds of \$345.5 million, repayments of \$464.2 million, and finance costs of \$14.3 million associated with this debt during the period, have been excluded from DRO's Consolidated Cash Flow Statements. These cashflows are disclosed in DIT and DDF's Consolidated Cash Flow Statements as the operators of the bank account where these cash inflows and outflows have occurred.
DB RREEF Finance Pty Limited, a wholly owned subsidiary of DRO, is the legal borrower of \$272.6 million EURO denominated debt. However, during the period, proceeds of \$8.7 million, repayments of \$102.8 million, and finance costs of \$8.0 million associated with this debt during the period, have been excluded from 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 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | |
| cents | cents | cents | cents | cents | cents | cents | cents | |
| 2.41 | 4.22 | 1.39 | 1.52 | 11.02 | 12.11 | (0.03) | 0.15 | |
| (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 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | |
| cents | cents | cents | cents | cents | cents | cents | cents | |
| 2.41 | 4.22 | 1.39 | 1.52 | 11.02 | 12.11 | (0.03) | 0.15 | |
| (c) Basic earnings per unit on profit attributable to stapled security holders | ||||||||
| DDF Consolidated |
(d) Diluted earnings per unit on profit attributable to stapled security holders
| DDF Consolidated | |||||
|---|---|---|---|---|---|
| 31 Dec 2007 | 31 Dec 2006 | ||||
| cents | cents | ||||
| 14.82 | 18.00 |
31 Dec 2007 31 Dec 2006 cents cents 14.82 18.00
(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 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | |
| \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | \$'000 | |
| Net profit | 437,617 | 519,302 | 40,600 | 43,162 | 323,519 | 344,921 | (956) | 4,337 |
| Net profit attributable to equity holders of other entities stapled to DDF (minority interests) |
(362,409) | (390,889) | - | - | - | - | - | - |
| Net profit attributable to other minority interests | (4,937) | (8,820) | - | - | (1,635) | (1,533) | - | - |
| Net profit attribtable to the unitholders of the Trust used in calculating basic and diluted earnings per unit |
70,271 | 119,593 | 40,600 | 43,162 | 321,884 | 343,388 | (956) | 4,337 |
(f) Weighted average number of units used as a denominator
| DDF Consolidated | DIT Consolidated | DOT Consolidated | DRO Consolidated | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | 31 Dec 2007 | 31 Dec 2006 | ||
| Weighted number of units outstanding used | 2,920,052,460 | 2,835,233,629 | 2,920,052,460 | 2,835,233,629 | 2,920,052,460 | 2,835,233,629 | 2,920,052,460 | 2,835,233,629 | |
| in the calculation of basic earnings per unit |
DB RREEF DIVERSIFIED TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 13 to 44:
- comply with applicable Accounting Standards and AASB 134: Interim Financial Reporting, the Corporations $(i)$ Regulations 2001 and other mandatory professional reporting requirements; and
- (ii) give a true and fair view of the Trust and its consolidated entities' financial position as at 31 December 2007 and of their performance, as represented by the results of their operations and their cash flows, for the half-year ended on that date.
In the Directors' opinion:
- (a) the Financial Statements and notes are in accordance with the Corporations Act 2001;
- (b) there are reasonable grounds to believe that the Trust and its consolidated entities will be able to pay their debts as and when they become due and payable; and
- (c) the Trust has operated in accordance with the provisions of the Constitution dated 15 August 1984 (as amended) during the half-year ended 31 December 2007.
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 20 February 2008
DB RREEF INDUSTRIAL TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 13 to 44:
- comply with applicable Accounting Standards and AASB 134: Interim Financial Reporting, the Corporations $(i)$ Regulations 2001 and other mandatory professional reporting requirements; and
- (ii) give a true and fair view of DIT and its consolidated entities' financial position as at 31 December 2007 and of their performance, as represented by the results of their operations and their cash flows, for the half-year ended on that date.
In the Directors' opinion:
- (a) the Financial Statements and notes are in accordance with the Corporations Act 2001;
- (b) there are reasonable grounds to believe that 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 1 August 1997 (as amended) during the half-year ended 31 December 2007.
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 20 February 2008
DB RREEF OFFICE TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 13 to 44:
- comply with applicable Accounting Standards and AASB 134: Interim Financial Reporting, the Corporations $(i)$ Regulations 2001 and other mandatory professional reporting requirements; and
- (ii) give a true and fair view of DOT and its consolidated entities' financial position as at 31 December 2007 and of their performance, as represented by the results of their operations and their cash flows, for the half-year ended on that date.
In the Directors' opinion:
- (a) the Financial Statements and notes are in accordance with the Corporations Act 2001;
- (b) there are reasonable grounds to believe that 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 17 June 1998 (as amended) during the half-year ended 31 December 2007.
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 20 February 2008
DB RREEF OPERATIONS TRUST DIRECTORS' DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2007
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 13 to 44:
- comply with applicable Accounting Standards and AASB 134: Interim Financial Reporting, the Corporations $(i)$ Regulations 2001 and other mandatory professional reporting requirements; and
- (ii) give a true and fair view of DRO and its consolidated entities' financial position as at 31 December 2007 and of their performance, as represented by the results of their operations and their cash flows, for the half-year ended on that date.
In the Directors' opinion:
- (a) the Financial Statements and notes are in accordance with the Corporations Act 2001;
- (b) there are reasonable grounds to believe that 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 2007.
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 20 February 2008
INDEPENDENT AUDITOR'S REVIEW REPORT
to the members of DB RREEF Diversified Trust
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of DB RREEF Diversified Trust (the Trust), which comprises the balance sheet as at 31 December 2007, and the income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, other selected explanatory notes and the directors' declaration for the DB RREEF Diversified Trust (the consolidated entity). The consolidated entity comprises both 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.
Directors' Responsibility for the Half-Year Financial Report
The directors of DB RREEF Funds Management Limited (the Responsible Entity of the Trust) are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of DB RREEF Diversified Trust, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
For further explanation of a review, visit our website http:/www.pwc.com/au/financialstatementaudit.
PricewaterhouseCoopers ABN 52 780 433 757
Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au
While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.
Our review did not involve an analysis of the prudence of business decisions made by directors or management.
Matters relating to the electronic presentation of the reviewed financial report
This review report relates to the financial report of DB RREEF Diversified Trust (the Trust) for the halfyear ended 31 December 2007 included on DB RREEF Diversified Trust's web site. The Responsible Entity's directors 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 review report refers only to the financial report identified above. 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 reviewed financial report to confirm the information included in the reviewed financial report presented on this web site.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of DB RREEF Diversified Trust is not in accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.
PriceroateMarseCouper
PricewaterhouseCoopers
JA Dunning
Partner
INDEPENDENT AUDITOR'S REVIEW REPORT
to the members of DB RRFFF Industrial Trust
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of DB RREEF Industrial Trust, which comprises the balance sheet as at 31 December 2007, and the income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, other selected explanatory notes and the directors' declaration for the DB RREEF Industrial Trust (the consolidated entity). The consolidated entity comprises both DB RREEF Industrial Trust (the Trust) and the entities it controlled during that half-year.
Directors' Responsibility for the Half-Year Financial Report
The directors of DB RREEF Funds Management Limited (the Responsible Entity of the Trust) are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of DB RREEF Industrial Trust, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-vear financial report consists of making enguiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
For further explanation of a review, visit our website http:/www.pwc.com/au/financialstatementaudit.
PricewaterhouseCoopers ABN 52 780 433 757
Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au
While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.
Our review did not involve an analysis of the prudence of business decisions made by directors or management.
Matters relating to the electronic presentation of the reviewed financial report
This review report relates to the financial report of DB RREEF Industrial Trust (the Trust) for the halfyear ended 31 December 2007 included on DB RREEF Industrial Trust's web site. The Responsible Entity's directors 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 review report refers only to the financial report identified above. 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 reviewed financial report to confirm the information included in the reviewed financial report presented on this web site.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of DB RREEF Industrial Trust is not in accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.
Pricewoterhouse Coopes
PricewaterhouseCoopers
JA Dunning Partner
INDEPENDENT AUDITOR'S REVIEW REPORT
to the members of DB RRFFF Office Trust
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of DB RREEF Office Trust, which comprises the balance sheet as at 31 December 2007, and the income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, other selected explanatory notes and the directors' declaration for the DB RREEF Office Trust (the consolidated entity). The consolidated entity comprises both DB RREEF Office Trust (the Trust) and the entities it controlled during that half-year.
Directors' Responsibility for the Half-Year Financial Report
The directors of DB RREEF Funds Management Limited (the Responsible Entity of the Trust) are responsible for the preparation and fair presentation of the half-vear financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of DB RREEF Office Trust, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-vear financial report consists of making enguiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
For further explanation of a review, visit our website http:/www.pwc.com/au/financialstatementaudit.
PricewaterhouseCoopers ABN 52 780 433 757
Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au
While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.
Our review did not involve an analysis of the prudence of business decisions made by directors or management.
Matters relating to the electronic presentation of the reviewed financial report
This review report relates to the financial report of DB RREEF Office Trust (the Trust) for the half-year ended 31 December 2007 included on DB RREEF Office Trust's web site. The Responsible Entity's directors 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 review report refers only to the financial report identified above. 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 reviewed financial report to confirm the information included in the reviewed financial report presented on this web site.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of DB RREEF Office Trust is not in accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.
PricewatchauseCeepers
PricewaterhouseCoopers
JA Dunning Partner
INDEPENDENT AUDITOR'S REVIEW REPORT to the members of DB RREEF Operations Trust
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of DB RREEF Operations Trust, which comprises the balance sheet as at 31 December 2007, and the income statement, statement of changes in equity and cash flow statement for the half-year ended on that date, other selected explanatory notes and the directors' declaration for the DB RREEF Operations Trust (the consolidated entity). The consolidated entity comprises both DB RREEF Operations Trust (the Trust) and the entities it controlled during that half-year.
Directors' Responsibility for the Half-Year Financial Report
The directors of DB RREEF Funds Management Limited (the Responsible Entity of the Trust) are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditor's Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of DB RREEF Operations Trust, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-vear financial report consists of making enguiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. It also includes reading the other information included with the financial report to determine whether it contains any material inconsistencies with the financial report. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
For further explanation of a review, visit our website http:/www.pwc.com/au/financialstatementaudit.
PricewaterhouseCoopers ABN 52 780 433 757
Darling Park Tower 2 201 Sussex Street GPO BOX 2650 SYDNEY NSW 1171 DX 77 Sydney Australia Telephone +61 2 8266 0000 Facsimile +61 2 8266 9999 www.pwc.com/au
While we considered the effectiveness of management's internal controls over financial reporting when determining the nature and extent of our procedures, our review was not designed to provide assurance on internal controls.
Our review did not involve an analysis of the prudence of business decisions made by directors or management.
Matters relating to the electronic presentation of the reviewed financial report
This review report relates to the financial report of DB RREEF Operations Trust (the Trust) for the halfyear ended 31 December 2007 included on DB RREEF Operations Trust's web site. The Responsible Entity's directors 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 review report refers only to the financial report identified above. 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 reviewed financial report to confirm the information included in the reviewed financial report presented on this web site.
Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of DB RREEF Operations Trust is not in accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and of its performance for the half-year ended on that date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.
PricewaterhouseCarpers
PricewaterhouseCoopers
JA Dunning Partner