DEXUS — Interim / Quarterly Report 2013

Feb 13, 2013

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DEXUS Property Group (ASX: DXS) Appendix 4D
Results for announcement to the market
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DEXUS Property Group ARSN 089 324 541

Financial reporting for the half year ended 31 December 2012

DEXUS Diversified Trust	Note 1
		31 Dec 2012	31 Dec 2011	%
		$m	$m	Change
Revenue from ordinary activities		309.8	310.5	-0.2%
Net profit attributable to security holders after tax		267.0	145.7	83.3%
Funds from operations (FFO)1		182.2	184.3	-1.1%
Distribution to securityholders		135.9	129.2	5.2%
		CPS	CPS
Funds from operations per security		3.85	3.81	1.0%
Distributionsper securityfor theperiod		2.89	2.67	8.2%
		$m	$m
Total assets		7,545.1	8,139.3	-7.3%
Total borrowings		2,089.4	2,294.9	-9.0%
Security holders equity		5,063.4	5,111.7	-0.9%
Market capitalisation		4,772.5	4,016.4	18.8%
		$ per unit	$ per unit
Net tangible assets (excluding non-controlling interests)		1.03	1.01	2.0%
Securities price		1.015	0.83	22.3%
Securities on issue (‘000)		4,701,957	4,839,024
Record date		31 Dec 2012	30 Dec 2011
Payment date		28 Feb 2013	29 Feb 2012

1. FFO is often used as a measure of real estate operating performance after finance costs and taxes. DXS’s FFO comprises profit/loss after tax attributable to stapled security holders measured under Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark-to-market impacts, amortisation of certain tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments, deferred tax expense/benefit and DEXUS RENTS Trust capital distribution.

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DEXUS Property Group (ASX: DXS) Appendix 4D
Results for announcement to the market
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Results commentary

Refer to the ASX release for a commentary on the results of DEXUS Property Group.

Details of joint ventures and associates

	Ownership Interest	Ownership Interest	Share of netprofit after tax	Share of netprofit after tax
	31 Dec 2012	31 Dec 2011	For the 6 months ended 31 Dec 2012	For the 6 months ended 31 Dec 2011
Name of entity	%	%	$m	$m
Bent Street Trust	33.3	33.3	9.4	3.1
DEXUS Creek Street Trust	50.0	-	1.7	-
DEXUS Martin Place Trust	50.0	-	-	-

Distribution Reinvestment Plan (DRP)

As announced on 13 December 2010, the DRP has been suspended until further notice. As a consequence, the DRP will not operate for this distribution payment.

Notes

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.

2. The distribution for the period 1 July 2012 to 31 December 2012 is the aggregate of the distributions from DEXUS Diversified Trust and DEXUS Office Trust (DEXUS Operations Trust and DEXUS Industrial Trust did not pay a distribution during the period). The Annual Tax Statement, issued as at 30 June 2013, will provide details of the components of DXS’s distributions.

2

DEXUS Property Group (ARSN 089 324 541)

Interim Report 31 December 2012

Page 1 of 34

Contents Page
Directors’ Report ........................................................................................... 1
Auditor’s Independence Declaration .................................................................... 5
Consolidated Statement of Comprehensive Income .................................................. 6
Consolidated Statement of Financial Position ......................................................... 7
Consolidated Statement of Changes in Equity ......................................................... 8
Consolidated Statement of Cash Flows ............................................................... 10
Notes to the Financial Statements..................................................................... 11
Directors’ Declaration ................................................................................... 32
Independent Auditor’s Review Report ................................................................ 33

DEXUS Property Group (DXS) (ASX Code: DXS) consists of DEXUS Diversified Trust (DDF) (ARSN 089 324 541), DEXUS Industrial Trust (DIT), DEXUS Office Trust (DOT) and DEXUS Operations Trust (DXO), collectively known as DXS or the Group.

Under Australian Accounting Standards, DDF has been deemed the parent entity for accounting purposes. Therefore the DDF consolidated Financial Statements include all entities forming part of DXS.

All press releases, Financial Statements and other information are available on our website: www.dexus.com

DEXUS Diversified Trust Directors' Report For the half year ended 31 December 2012

The Directors of DEXUS Funds Management Limited (DXFM) as Responsible Entity of DEXUS Diversified Trust (DDF or the Trust) present their Directors’ Report together with the consolidated Financial Statements for the half year ended 31 December 2012. The consolidated Financial Statements represents DDF and its consolidated entities, DEXUS Property Group (DXS or the Group).

The Trust together with DEXUS Industrial Trust (DIT), DEXUS Office Trust (DOT) and DEXUS Operations Trust (DXO) form the DEXUS Property Group stapled security.

1 Directors

The following persons were Directors of DXFM at all times during the half year and to the date of this Directors’ Report, unless otherwise stated:

Report, unless otherwise stated:
Directors	Appointed
Christopher T Beare	4 August 2004
Elizabeth A Alexander, AM	1 January 2005
Barry R Brownjohn	1 January 2005
John C Conde, AO	29 April 2009
Tonianne Dwyer	24 August 2011
Stewart F Ewen, OAM	4 August 2004
W Richard Sheppard	1 January 2012
Darren J Steinberg	1 March 2012
Peter B St George	29 April 2009

2 Review of results and operations

DEXUS Property Group’s financial performance for the six months to 31 December 2012 is detailed below. Refer to the Half Year Report for further information.

Total revenue from ordinary activities for the six months to 31 December 2012 decreased by $0.7 million to $309.8 million (2011: $310.5 million).

The key drivers include:

• A 2.6% increase in like-for-like net operating income (NOI) from the Australian office portfolio and a 1.1% increase from the Australian industrial portfolio

• Rental income commencing at recently completed office and industrial developments offset by a reduction in rental income following the commencement of the NPS partnership

• Lower gross proceeds from the sale of inventory

Net profit attributable to stapled security holders is $267.0 million or 5.65 cents per security, an increase of $121.3 million from the prior corresponding period (2011: $145.7 million).

The key drivers include:

• Increased net fair value gain on investment property

• A reduction in NOI offset by lower finance costs and lower fair value losses on derivatives from discontinued operations (US and Europe), following the sale of the US central portfolio in June 2012

• Reduced corporate and administration expenses

• A 2.6% increase in like-for-like NOI from the Australian office portfolio and a 1.1% increase from the Australian industrial portfolio

• Rental income commencing at recently completed office and industrial developments offset by a reduction in rental income following the commencement of the NPS partnership

Page 1 of 34

DEXUS Diversified Trust Directors' Report (continued) For the half year ended 31 December 2012

2 Review of results and operations (continued)

Operational result

DEXUS Property Group focuses on Funds from Operations (FFO[1] ) which is often used as a measure of real estate operating performance after finance costs and taxes.

FFO for the six months to 31 December 2012 is $182.2 million, a decrease of 1.1% on the prior corresponding period and in line with guidance. In April 2012 we announced a $200 million on-market buy-back of DEXUS securities. To date we have bought back 64% of the total commitment which has contributed to a 1.0% increase in FFO per security to 3.85 cents (2011: 3.81 cents). The key drivers impacting FFO are:

• The Australian office portfolio’s NOI of $151.8 million increased by $10.5 million or 7.4% (2011: $141.3 million) driven by solid like-for-like growth of 2.6%, the commencement of new leases following the completion of 123 Albert Street, Brisbane and additional rental income from the recently acquired properties at 12 Creek Street Brisbane and 50 Carrington Street, Sydney. Occupancy[2] for the Australian office portfolio remains high at 95.2% (2011: 97.2%). The retention rate for the rolling 12 months to 31 December 2012 is 62%.

• The Australian industrial portfolio’s NOI of $57.8 million decreased by $0.6 million largely as a result of the formation of the NPS partnership which resulted in the sale of a 50% interest in 13 properties. On a like–forlike basis, property NOI increased 1.1% following strong leasing at Silverwater, NSW and Gillman, SA. The industrial portfolio ended the period with occupancy[2] at 94.4%, up 2.7% since June 2012. The rolling 12 month tenant retention rate of 63%.

• Income from discontinued operations (US and Europe) of $17.0 million decreased by $23.8 million, predominantly as a result of the sale of the US$770 million central portfolio in June 2012. As announced on 20 December 2012, 26 of the remaining 27 US properties have also now been sold, with settlement of that transaction estimated to occur on 14 February 2013.

• Financing costs for distributable earnings decreased by $10.1 million[3] to $53.6 million primarily driven by transactions including the sale of the US central portfolio in June 2012 and the NPS partnership, partially offset by the acquisition of office properties and the buy-back of securities.

• Group corporate and administration expenses are down $4.7 million to $17.8 million following the management restructure undertaken in June 2012 and business efficiencies.

• Based on our current distribution payout ratio of 75% of Funds from Operations, the distribution payable for the six months to 31 December 2012 is 2.89 cents per security (2011: 2.67 cents per security) an increase of 8.2%.

Page 2 of 34

DEXUS Diversified Trust Directors' Report (continued) For the half year ended 31 December 2012

2 Review of results and operations (continued)

Set out below is a reconciliation of profit attributable to stapled security holders to FFO and how the Group’s distribution has been calculated.

	31 Dec 2012	31 Dec 2011
	($m)	($m)
Net profit for the year attributable to stapled security holders	267.0	145.7
Net fair value gain of investment properties4	(120.4)	(60.0)
Net loss/(gain) on sale of investment properties	1.5	(2.9)
Impairment of inventories	-	2.0
Finance break costs attributable to the US sales transaction	12.4	-
Net fair value loss of derivatives	11.9	74.6
Incentive amortisation and rent straight-line4,5	14.3	16.7
Deferred tax (benefit)/expense	(4.5)	12.3
RENTS capital distribution	-	(5.3)
Impairment ofgoodwill and other	-	1.2
Funds from Operations(FFO)1	182.2	184.3
Retained earnings6	(46.3)	(55.1)
Distributions	135.9	129.2
FFO per security (cents)	3.85	3.81
Distribution per security (cents)	2.89	2.67

• 1 DEXUS Property Group’s FFO comprises profit/loss after tax attributable to stapled security holders measured under Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark-to-market impacts, amortisation of certain tenant incentives, gain/loss on sale of certain assets, straight-line rent adjustments, deferred tax expense/ benefit and DEXUS RENTS Trust capital distribution. Refer note 14.

• 2 Occupancy by area.

• 3 31 Dec 2011 includes RENTS distribution of $6.3 million (31 Dec 2012: nil).

• 4 Including DXS’s share of equity accounted investments.

• 5 Includes cash and fitout incentives amortisation.

• 6 31 Dec ember 2012 is based on the current distribution policy of 75% of FFO. 31 December 2011 is based on the previous distribution policy of 70% of FFO.

Page 3 of 34

DEXUS Diversified Trust Directors' Report (continued) For the half year ended 31 December 2012

3 Auditor's Independence Declaration

A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 5 and forms part of this Directors’ Report.

4 Rounding of amounts and currency

The Group is a registered scheme of the kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the rounding off of amounts in this Directors’ Report and the Financial Statements. Amounts in this Directors’ Report and the Financial Statements have been rounded off in accordance with that Class Order to the nearest tenth of a million dollars, unless otherwise indicated. All figures in this Directors’ Report and the Financial Statements, except where otherwise stated, are expressed in Australian dollars.

5 Directors’ authorisation

The Directors’ Report is made in accordance with a resolution of the Directors. The Financial Statements were authorised for issue by the Directors on 13 February 2013. The Directors have the power to amend and reissue the Financial Statements.

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Christopher T Beare Chair 13 February 2013

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Darren J Steinberg Chief Executive Officer 13 February 2013

Page 4 of 34

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Auditor’s Independence Declaration

As lead auditor for the review of DEXUS Diversified Trust for the half year ended 31 December 2012, 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 DEXUS Diversified Trust and the entities it controlled during the period.

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EA Barron Partner PricewaterhouseCoopers

Sydney 13February 2013

Liability limited by a scheme approved under Professional Standards Legislation.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

DEXUS Diversified Trust Consolidated Statement of Comprehensive Income For the half year ended 31 December 2012

Note	31 Dec 2012 31 Dec 2011 $m $m
Revenue from ordinary activities Property revenue Proceeds from sale of inventory Interest revenue Management fee revenue Total revenue from ordinary activities Net fair value gain of investment properties Share of net profit of associates accounted for using the equity method 7 Total income Expenses Property expenses Cost of sale of inventory Finance costs 2 Impairment of inventories Impairment of goodwill Net fair value loss of derivatives Net loss on sale of investment properties Corporate and administration expenses Total expenses Profit before tax Tax benefit Income tax benefit Total tax benefit Profit after tax from continuing operations Profit/(loss) from discontinued operations 5 Net profit for the period Other comprehensive income/(loss): Exchange differences on translating foreign operations Total comprehensive income for the period Profit for the period attributable to: Unitholders of the parent entity Unitholders of other stapled entities (non-controlling interests) Stapled security holders Other non-controlling interest Total profit for the period Total comprehensive income for the period attributable to: Unitholders of the parent entity Unitholders of other stapled entities (non-controlling interests) Stapled security holders Other non-controlling interest Total comprehensive income for theperiod	269.7 262.4 15.7 21.8 0.8 0.8 23.6 25.5
	309.8 310.5 94.5 39.5 11.1 3.1
	415.4 353.1
	(65.3) (66.7) (14.8) (19.1) (51.8) (57.6) - (2.0) - (0.6) (0.6) - (2.7) - (31.7) (36.6)
	(166.9) (182.6)
	248.5 170.5
	0.1 -
	0.1 -
	248.6 170.5
	18.4 (23.8)
	267.0 146.7
	1.4 (1.9)
	268.4 144.8
	89.1 110.7 177.9 35.0
	267.0 145.7
	- 1.0
	267.0 146.7
	86.7 116.6 181.7 27.2
	268.4 143.8
	- 1.0
	268.4 144.8
	Cents Cents
Earnings per unit Basic earnings per unit on profit attributable to unitholders of the parent entity Diluted earnings per unit on profit attributable to unitholders of the parent entity Earnings per stapled security Basic earnings per unit on profit attributable to stapled security holders Diluted earningsper unit onprofit attributable to stapled securityholders	1.89 2.29 1.89 2.29 5.65 3.01 5.65 3.01

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Page 6 of 34

DEXUS Diversified Trust Consolidated Statement of Financial Position As at 31 December 2012

Note	31 Dec 2012 30 Jun 2012 $m $m
Current assets Cash and cash equivalents 3 Receivables Inventories 4 Derivative financial instruments Other Discontinued operations and assets classified as held for sale 5 Total current assets Non-current assets Investment properties 6 Plant and equipment Inventories 4 Investments accounted for using the equity method 7 Derivative financial instruments Deferred tax assets Intangible assets 8 Other Total non-current assets Total assets Current liabilities Payables Interest bearing liabilities 9 Current tax liabilities Provisions Derivative financial instruments Discontinued operations classified as held for sale 5 Total current liabilities Non-current liabilities Interest bearing liabilities 9 Derivative financial instruments Deferred tax liabilities Provisions Other Total non-current liabilities Total liabilities Net assets Equity Equity attributable to unitholders of the parent entity Contributed equity 10 Reserves Retained profits Parent entity unitholders' interest Contributed equity 10 Reserves Retained profits Other stapled unitholders' interest Total equity Equity attributable to unitholders of other stapled entities	46.0 59.2 25.1 30.8 10.1 26.8 7.8 3.6 8.2 10.9
	97.2 131.3 649.8 212.3
	747.0 343.6
	5,952.7 6,391.5 4.4 4.7 161.3 71.0 360.0 217.0 59.1 74.7 36.0 36.7 223.4 223.6 1.2 1.3
	6,798.1 7,020.5
	7,545.1 7,364.1
	110.1 108.5 71.7 - 1.0 2.1 151.5 152.0 12.2 8.2
	346.5 270.8 86.5 -
	433.0 270.8
	1,943.6 1,940.8 86.7 112.7 7.1 12.4 10.2 16.5 1.1 3.6
	2,048.7 2,086.0
	2,481.7 2,356.8
	5,063.4 5,007.3
	1,577.7 1,605.0 (48.4) (46.1) 225.3 197.4
	1,754.6 1,756.3
	3,106.3 3,156.5 58.0 53.2 144.5 41.3
	3,308.8 3,251.0
	5,063.4 5,007.3

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

Page 7 of 34

DEXUS Diversified Trust

Consolidated Statement of Changes in Equity

For the half year ended 31 December 2012

Note	Contributed equity Retained profits Foreign currency translation reserve Asset revaluation reserve Security- based payments reserve Stapled security- holders' equity Other non- controlling interest Total equity $m $m $m $m $m $m $m $m Stapled security holders equity
Opening balance as at 1 July 2011 Unitholders of the parent entity Other stapled entities (non-controlling interests) Other non-controlling interest Profit for the period Unitholders of the parent entity Other stapled entities (non-controlling interests) Total other comprehensive loss for the period Transactions with owners in their capacity as owners Capital payments and capital contributions, net of transaction costs Distributions paid or provided for 11 Total transactions with owners in their capacity as owners Transfer (from)/to retained profits Closing balance as at 31 December 2011 Other comprehensive income/(loss) for the period attributable to: Profit for the period attributable to:	4,812.8 325.2 (77.9) 42.7 - 5,102.8 204.0 5,306.8 - 110.7 - - - 110.7 - 110.7 - 35.0 - - - 35.0 - 35.0 - - - - - - 1.0 1.0
	- 145.7 - - - 145.7 1.0 146.7 - - 5.9 - - 5.9 - 5.9 - - (7.8) - - (7.8) - (7.8)
	- - (1.9) - - (1.9) - (1.9) (0.3) - - - - (0.3) - (0.3) - (129.2) - - - (129.2) (6.3) (135.5)
	(0.3) (129.2) - - - (129.5) (6.3) (135.8) - (5.4) - - - (5.4) 5.4 -
	4,812.5 336.3 (79.8) 42.7 - 5,111.7 204.1 5,315.8

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Page 8 of 34

DEXUS Diversified Trust

Consolidated Statement of Changes in Equity (continued) For the half year ended 31 December 2012

Note	Contributed equity Retained profits Foreign currency translation reserve Asset revaluation reserve Security- based payments reserve Stapled security- holders' equity Other non- controlling interest Total equity $m $m $m $m $m $m $m $m Stapled security holders equity
Opening balance as at 1 July 2012 Unitholders of the parent entity Other stapled entities (non-controlling interests) Profit for the period Unitholders of the parent entity Other stapled entities (non-controlling interests) Total other comprehensive income Transactions with owners in their capacity as owners Buy-back of contributed equity, net of transaction costs 10 Security-based payments expense Distributions paid or provided for 11 Total transactions with owners in their capacity as owners Closing balance as at 31 December 2012 Other comprehensive (loss)/income for the period attributable to: Profit for the period attributable to:	4,761.5 238.7 (36.0) 42.7 0.4 5,007.3 - 5,007.3 - 89.1 - - - 89.1 - 89.1 - 177.9 - - - 177.9 - 177.9
	- 267.0 - - - 267.0 - 267.0 - - (2.4) - - (2.4) - (2.4) - - 3.8 - - 3.8 - 3.8
	- - 1.4 - - 1.4 - 1.4 (77.5) - - - - (77.5) - (77.5) - - - - 1.1 1.1 - 1.1 - (135.9) - - - (135.9) - (135.9)
	(77.5) (135.9) - - 1.1 (212.3) - (212.3)
	4,684.0 369.8 (34.6) 42.7 1.5 5,063.4 - 5,063.4

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Page 9 of 34

DEXUS Diversified Trust Consolidated Statement of Cash Flows For the half year ended 31 December 2012

Note	31 Dec 2012 31 Dec 2011 $m $m
Cash flows from operating activities Receipts in the course of operations (inclusive of GST) Payments in the course of operations (inclusive of GST) Interest received Finance costs paid to financial institutions Distributions received from associates accounted for using the equity method Income and withholding taxes paid Proceeds from sale of property classified as inventory Net cash inflow from operating activities Cash flows from investing activities Proceeds from sale of investment properties Proceeds from sale of subsidiaries Payments for capital expenditure on investment properties Payments for acquisition of investment properties Payments for investments accounted for using the equity method Payments for plant and equipment Net cash outflow from investing activities Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Payments for buy-back of contributed equity Capital contribution and capital payment transaction costs Distributions paid to security holders Distributions paid to other non-controlling interests Net cash outflow from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of theperiod 3 Payments for property classified as inventory	353.8 424.3 (143.5) (175.7) 0.8 0.9 (57.5) (84.0) 5.4 4.1 (0.8) (0.5) 15.7 21.8 (86.6) (24.0)
	87.3 166.9
	168.6 103.3 24.1 - (71.2) (91.6) - (34.7) (137.3) (3.9) (0.8) (1.1)
	(16.6) (28.0)
	1,909.6 1,425.1 (1,777.9) (1,427.6) (77.5) - - (0.3) (128.2) (125.3) - (6.4)
	(74.0) (134.5)
	(3.3) 4.4 59.2 73.7 (0.5) (1.1)
	55.4 77.0

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Page 10 of 34

DEXUS Diversified Trust Notes to the Financial Statements For the half year ended 31 December 2012

Note 1

Summary of significant accounting policies

(a) Basis of preparation

In accordance with Australian Accounting Standards, the entities within the Group must be consolidated. The parent entity and deemed acquirer of DIT, DOT and DXO is DDF. These Financial Statements represent the consolidated results of DDF, which comprises DDF and its controlled entities, DIT and its controlled entities, DOT and its controlled entities, and DXO and its controlled entities. Equity attributable to other trusts stapled to DDF is a form of non-controlling interest and represents the equity of DIT, DOT and DXO. Other non-controlling interests represent the equity attributable to parties external to the Group.

DEXUS Property Group stapled securities are quoted on the Australian Securities Exchange under the “DXS” code and comprise one unit in each of DDF, DIT, DOT and DXO. Each entity forming part of the Group continues as a separate legal entity in its own right under the Corporations Act 2001 and is therefore required to comply with the reporting and disclosure requirements under the Corporations Act 2001 and Australian Accounting Standards.

DEXUS Funds Management Limited (DXFM) as Responsible Entity for DDF, DIT, DOT and DXO may only unstaple the Group if approval is obtained by a special resolution of the stapled security holders.

These general purpose interim Financial Statements for the half year ended 31 December 2012 have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.

These Financial Statements do not include notes of the type normally included in an annual financial report. Accordingly these Financial Statements should be read in conjunction with the annual Financial Statements for the year ended 30 June 2012 and any public pronouncements made by the Group during the half year in accordance with the continuous disclosure requirements of the Corporations Act 2001 . The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

(b) Critical accounting estimates

The preparation of Financial Statements requires the use of certain critical accounting estimates and management to exercise its judgement in the process of applying the Group’s accounting policies. Other than the estimation of fair values relating to derivatives and other financial instruments, inventories, investment properties, intangible assets and security-based payments, no key assumptions concerning the future or other estimation of uncertainty at the end of each reporting period could have a significant risk of causing material adjustments to the Financial Statements in the next reporting period.

(c) Changes to presentation – classification of expenses

Following a review of internal reporting, the Consolidated Statement of Comprehensive Income and the operating segments note (refer note 14) have been amended to disclose revenue and expenses on the basis of their function. The revised disclosures, which include additional financial metrics within the operating segments note, better reflects the financial information regularly reviewed by the Directors and DXS management in order to assess the performance of the functions of the Group and the allocation of resources.

Page 11 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 2 Finance costs

Note 2 Finance costs
	31 Dec 2012 31 Dec 2011 $m $m
Interest paid/payable Amount capitalised Other finance costs Net fair value loss of interest rate swaps Total finance costs	45.2 36.5 (6.1) (15.0) 1.5 1.3 11.2 34.8 51.8 57.6

The average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 7.00% (2011: 7.99%).

Note 3

Current assets – cash and cash equivalents

Note 3 Current assets – cash and cash equivalents
	31 Dec 2012 30 Jun 2012 $m $m
Cash at bank Short-term deposits Cash held in escrow1 Total current assets - cash and cash equivalents	5.5 20.8 16.4 13.7 24.1 24.7
	46.0 59.2

1 As at 31 December 2012, the Group held US$25.0 million (A$24.1 million) in escrow in relation to the US asset disposals in December 2012. These funds are expected to be released from escrow on 14 February 2013 as a result of settlement.

As at 30 June 2012, the Group held US$25.2 million (A$24.7 million) in escrow in relation to the US asset disposals in June 2012. These funds were released from escrow during the half year ended 31 December 2012.

Reconciliation to cash at the end of the period

The above figures are reconciled to cash as shown in the Statement of Cash Flows as follows:

Note	31 Dec 2012 30 Jun 2012 $m $m
Balances as above Discontinued operations 5 Balancesper Statement of Cash Flows	46.0 59.2 9.4 -
	55.4 59.2

Page 12 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 4

Inventories

(a) Land and properties held for resale

(a) Land and properties held for resale
	31 Dec 2012 30 Jun 2012 $m $m
Current assets Land and properties held for resale Total current assets - inventories Non-current assets Land and properties held for resale Total non-current assets - inventories Total assets - inventories	10.1 26.8
	10.1 26.8
	161.3 71.0
	161.3 71.0
	171.4 97.8

(b) Reconciliation

(b) Reconciliation
Note	For the For the 6 months to 12 months to 31 Dec 2012 30 Jun 2012 $m $m
Opening balance at the beginning of the period Transfer to investment properties 6 Disposals Impairment Acquisitions, additions and other Closing balance at the end of theperiod	97.8 112.2 - (7.0) (14.8) (44.0) - (14.8) 88.4 51.4
	171.4 97.8

Acquisitions

• On 30 November 2012, 50 Carrington Street, Sydney, NSW was acquired for $58.5 million, excluding acquisition costs.

Disposals

• On 2 October 2012, 50% of Boundary Road, Laverton, VIC - Fastline was disposed of for gross proceeds of $8.0 million.

• During the half year ended 31 December 2012, three lots located at Boundary Road, Laverton, VIC were disposed of for gross proceeds of $7.7 million.

Page 13 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 5

Assets classified as held for sale and discontinued operations

A strategic review was announced to the ASX on 16 August 2012, which resulted in all offshore property being considered non-core. On 20 December 2012, DXS announced the sale of the majority of the remaining US industrial portfolio and therefore the US industrial portfolio has been classified as a discontinued operation at 31 December 2012.

The European portfolio is also considered non-core and has been classified as a discontinued operation.

Profit/(loss) from US and European discontinued operations comprises:

	31 Dec 2012 31 Dec 2011 $m1 $m1
Revenue Expenses2 Loss before tax Tax benefit/(expense) Loss after tax Gain on measurement to fair value less costs to sell before tax Gain on sale of investment properties Withholding tax benefit Gain on measurement to fair value less costs to sell after tax Profit/(loss) from discontinued operations	28.0 85.1 (35.3) (96.1)
	(7.3) (11.0) 0.8 (12.8)
	(6.5) (23.8)
	18.7 - 1.7 - 4.5 -
	24.9 -
	18.4 (23.8)

1 Includes impact of US and European portfolios.

2 Includes $12.4 million of finance break costs attributable to US sales transaction.

The table below sets out additional information detailing the financial performance for discontinued operations.

	31 Dec 2012 31 Dec 2011 $m $m
Property revenue Management fee revenue Property expenses Corporate and administration expenses Net foreign exchange gain Finance costs Incentive amortisation and rent straight-line Income tax benefit/(expense) Funds From Operations (FFO)1 Net fair value gain of investment properties Net fair value loss of derivatives Finance break costs attributable to US sales transaction Net gain on sale of investment properties Incentive amortisation and rent straight-line Deferred tax benefit/(expense) Profit/(loss) from discontinued operations	24.0 60.7 0.3 0.2 (5.6) (17.7) (2.9) (3.2) 1.2 0.8 (12.9) (36.5) 1.0 3.1 0.8 (0.5)
	5.9 6.9 21.2 20.5 (1.0) (38.7) (12.4) - 1.2 2.9 (1.0) (3.1) 4.5 (12.3)
	18.4 (23.8)

1 Refer note 14(c)(i) for a definition of FFO.

Page 14 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 5

Assets classified as held for sale and discontinued operations (continued)

Reconciliation of the accounting impacts of the US industrial sale

On 20 December 2012, the ASX announcement estimated that the accounting profit of the US industrial sale impacting net tangible assets was US$38 million. The following table reconciles this amount to the information provided on page 14.

provided on page 14.
	31 Dec 2012 31 Dec 2011 $m $m
Gain on measurement to fair value less costs to sell after tax1 Finance break costs attributable to US sales transaction European portfolio fair value movements and other adjustments Subtotal - A$2 Converted to US$- asper the ASX announcement dated 20 December 20123	24.9 - (12.4) - 24.6 -
	37.1 -
	38.5 -

1 Includes impact of US and European portfolios as detailed on page 14.

• 2 Impact of the US portfolio sale only.

• 3 Excludes foreign currency translation reserve recycling which will be recognised in the Financial Statements at settlement.

The table below sets out the cash flow information for discontinued operations.

The table below sets out the cash flow information for discontinued operations.
	31 Dec 2012 31 Dec 2011 $m $m
Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net decrease in cashgenerated by discontinued operations	0.5 8.9 11.2 54.4 (36.0) (116.7)
	(24.3) (53.4)

Page 15 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 5

Assets classified as held for sale and discontinued operations (continued)

In addition to the residual assets and liabilities classified as held for sale in the US and European industrial portfolios, certain other investment properties are also included as assets classified as held for sale at 31 December 2012.

The table below sets out the assets classified as held for sale and discontinued operations that continue to be owned by the Group as at balance date. These assets and liabilities are presented as aggregate amounts in the Statement of Financial Position.

	Discontinued operations1 Assets held for sale2 Total 31 Dec 2012 Total 30 Jun 2012 $m $m $m $m
Assets classified as held for sale Cash and cash equivalents Receivables Current tax assets Other assets Investment properties Total assets classified as held for sale Liabilities classified as held for sale Payables Provisions Bank loans - secured Other liabilities Total liabilities classified as held for sale	9.4 - 9.4 - 2.5 - 2.5 - 0.2 - 0.2 - 0.9 - 0.9 - 585.9 50.9 636.8 212.3
	598.9 50.9 649.8 212.3
	7.2 - 7.2 - 2.6 - 2.6 - 74.1 - 74.1 - 2.6 - 2.6 -
	86.5 - 86.5 -

1 Includes the United States and European operations.

2 Includes certain assets at Quarry Greystanes, NSW whose value will be recovered through sale rather than through continuing use.

Unsecured, foreign currency borrowings that will be repaid by the Group with proceeds of the US industrial portfolio sale are not included within discontinued operations as liabilities classified as held for sale, as these borrowings are not sold as part of the transaction. Secured, foreign currency borrowings are included within discontinued operations as liabilities classified as held for sale, as these borrowings have been sold as part of the transaction. Refer note 9.

On settlement of the US sales transaction (refer note 13), a letter of credit will be issued in relation to the sale of 25 properties located in the United States. The letter of credit will be issued for US$15.0 million and is expected to remain on issue until September 2014.

Disposals

• On 13 July 2012, 114-120 Old Pittwater Road, Brookvale, NSW was disposed of for gross proceeds of $40.5 million.

• On 2 October 2012, 50% of an industrial portfolio consisting of assets at DEXUS Industrial Estate Laverton North VIC, Altona North VIC and Quarry Greystanes NSW was disposed of for gross proceeds of $110.8 million.

Page 16 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 6

Non-current assets – investment properties

Note 6 Non-current assets – investment properties
			Independent	Independent	Independent	Book value	Book value
(a) Properties	Ownership	Acquisition date	valuation date	valuation amount	valuer	31 Dec 2012	30 Jun 2012
	%			$m		$m	$m
Kings Park Industrial Estate, Bowmans Road, Marayong, NSW	100	May 1990	Dec 2012	90.5	(d)	90.5	89.0
Target Distribution Centre, Lot 1, Tara Avenue, Altona North, VIC	50	Oct 1995	Jun 2011	16.3	(c)	16.3	16.3
Axxess Corporate Park, Mount Waverley, VIC	100	Oct 1996	Dec 2012	187.2	(b)	187.2	182.8
Knoxfield Industrial Estate, 20 Henderson Road, Knoxfield, VIC	100	Aug 1996	Jun 2011	37.6	(g)	37.7	37.7
12 Frederick Street, St Leonards, NSW	100	Jul 2000	Jun 2011	33.5	(a)	34.0	33.9
2 Alspec Place, Eastern Creek, NSW	100	Mar 2004	Dec 2011	24.9	(d)	24.9	24.9
108-120 Silverwater Road, Silverwater, NSW	100	May 2010	n/a	n/a	n/a	23.0	24.3
40 Talavera Road, North Ryde, NSW	100	Oct 2002	Dec 2011	31.5	(g)	29.1	29.0
44 Market Street, Sydney, NSW	100	Sep 1987	Jun 2010	192.7	(d)	235.0	217.7
8 Nicholson Street, Melbourne, VIC	100	Nov 1993	Jun 2012	93.5	(a)	94.2	93.5
130 George Street, Parramatta, NSW	100	May 1997	Dec 2010	77.0	(f)	77.3	77.2
Flinders Gate Complex, 172 Flinders Street & 189 Flinders Lane, Melbourne, VIC	100	Mar 1999	Jun 2011	28.5	(e)	30.4	28.1
383-395 Kent Street, Sydney, NSW	100	Sep 1987	Dec 2011	133.0	(a)	134.8	134.0
14 Moore Street, Canberra, ACT**	100	May 2002	Jun 2010	37.0	(c)	27.7	27.6
Sydney CBD Floor Space1	100	Jul 2000	Dec 2011	0.1	(a)	0.1	0.1
34-60 Little Collins Street, Melbourne, VIC**	100	Nov 1984	Jun 2011	39.2	(c)	36.0	39.3
32-44 Flinders Street, Melbourne, VIC	100	Jun 1998	Jun 2011	29.5	(e)	29.9	29.9
Flinders Gate Carpark, 172-189 Flinders Street, Melbourne, VIC	100	Mar 1999	Jun 2011	54.0	(e)	54.0	54.0
383-395 Kent Street Car Park, Sydney, NSW	100	Sep 1987	Dec 2011	64.0	(a)	64.0	64.0
123 Albert St, Brisbane, QLD	100	Oct 1984	Jun 2012	375.5	(d)	376.0	375.5
2 - 4 Military Rd, Matraville, NSW	100	Dec 2009	Jun 2012	52.9	(c)	52.9	52.9
79-99 St Hilliers Road, Auburn, NSW	100	Sep 1997	Dec 2011	37.5	(g)	34.8	37.5
3 Brookhollow Avenue, Baulkham Hills, NSW	100	Dec 2002	Jun 2012	42.0	(f)	42.5	42.0
1 Garigal Road, Belrose, NSW	100	Dec 1998	Jun 2012	16.3	(a)	16.3	16.3
2 Minna Close, Belrose, NSW	100	Dec 1998	Jun 2012	24.0	(a)	24.1	24.0
145 - 151 Arthur Street, Flemington, NSW	100	Sep 1997	Jun 2011	28.0	(f)	27.6	28.5
436 - 484 Victoria Road, Gladesville, NSW	100	Sep 1997	Dec 2011	41.5	(e)	41.9	41.7
1 Foundation Place, Greystanes, NSW	100	Feb 2003	Jun 2010	41.5	(f)	44.8	43.3
5 - 15 RoseberryAvenue & 25 - 55 Rothschild Avenue, Rosebery, NSW	100	Apr 1998	Dec 2012	90.5	(a)	92.3	90.8

1 Heritage floor space retained following the disposal of 1 Chifley Square, Sydney.

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

Page 17 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 6

Non-current assets – investment properties (continued)

Non-current assets – investment properties(continued)
			Independent	Independent	Independent	Book value	Book value
(a) Properties (continued)	Ownership	Acquisition date	valuation date	valuation amount	valuer	31 Dec 2012	30 Jun 2012
	%			$m		$m	$m
10 - 16 South Street, Rydalmere, NSW	100	Sep 1997	Jun 2011	39.3	(g)	41.1	40.7
Pound Road West, Dandenong, VIC	100	Jan 2004	Dec 2012	71.4	(f)	71.4	74.5
DEXUS Industrial Estate, Boundary Road, Laverton North, VIC - Visy	50	Jul 2002	Jun 2012	9.5	(c)	9.9	9.5
DEXUS Industrial Estate, Boundary Road, Laverton North, VIC - Wrightson	50	Jul 2002	Jun 2011	3.5	(c)	3.5	3.5
DEXUS Industrial Estate, Boundary Road, Laverton North, VIC - Fosters	50	Jul 2002	Dec 2011	17.5	(c)	18.8	18.0
DEXUS Industrial Estate, Boundary Road, Laverton North, VIC - BestBar	50	Jul 2002	Dec 2010	5.7	(c)	5.9	5.9
12-18 Distribution Drive, Laverton North, VIC	50	Jul 2002	Jun 2010	48.0	(g)	50.6	50.4
250 Forest Road, South Lara, VIC	100	Dec 2002	Jun 2012	52.3	(e)	52.5	52.3
15 - 23 Whicker Road, Gillman, SA	100	Dec 2002	Dec 2010	25.5	(a)	29.0	27.3
25 Donkin Street, Brisbane, QLD	100	Dec 1998	Dec 2010	27.0	(f)	30.1	29.4
52 Holbeche Road, Arndell Park, NSW	100	Jul 1998	Jun 2012	12.5	(f)	12.5	12.5
30 - 32 Bessemer Street, Blacktown, NSW	100	May 1997	Jun 2011	16.3	(e)	15.6	15.6
27 - 29 Liberty Road, Huntingwood, NSW	100	Jul 1998	Dec 2010	8.0	(c)	8.8	8.0
154 O'Riordan Street, Mascot, NSW	100	Jun 1997	Jun 2011	13.8	(e)	14.4	14.3
11 Talavera Road, North Ryde, NSW	100	Jun 2002	Jun 2010	127.0	(g)	148.9	147.9
DEXUS Industrial Estate, Egerton Street, Silverwater, NSW	100	May 1997	Jun 2012	35.0	(g)	35.7	35.0
89 Egerton Street, Silverwater, NSW	100	May 1997	Jun 2012	4.0	(g)	-	4.0
114 Fairbank Road, Clayton, VIC	100	Jul 1997	Dec 2010	14.9	(f)	15.4	15.2
30 Bellrick Street, Acacia Ridge, QLD	100	Jun 1997	Jun 2010	19.6	(d)	20.7	20.3
Quarry Greystanes, NSW – Solaris	50	Dec 2007	Dec 2011	12.6	(e)	13.2	12.6
Quarry Greystanes, NSW – Symbion	50	Dec 2007	Jun 2012	16.1	(d)	17.1	16.1
Quarry Greystanes, NSW – Fujitsu	50	Dec 2007	n/a	n/a	n/a	20.7	20.0
Quarry Greystanes, NSW – Camerons Transport1	100	Dec 2007	n/a	n/a	n/a	15.7	14.9
Quarry Greystanes, NSW – UPS2	50	Dec 2007	n/a	n/a	n/a	4.3	-
Quarry Greystanes, NSW – WH91,2	100	Dec 2007	n/a	n/a	n/a	12.8	-
Quarry Greystanes, NSW – Brady2	50	Dec 2007	n/a	n/a	n/a	10.6	-
Boundary Road, Laverton, VIC – Fastline	50	Jun 2010	n/a	n/a	n/a	8.0	7.0
Boundary Road, Laverton, VIC – Toll3	100	Jun 2010	n/a	n/a	n/a	6.3	5.4
BoundaryRoad,Laverton,VIC – ACFS3	100	Jun 2010	n/a	n/a	n/a	6.1	5.9

• 1 50% classified as investment property held for sale at 31 December 2012.

• 2 Classified as development property held as investment property at 30 June 2012.

• 3 50% classified as inventory at 31 December 2012.

Page 18 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 6

Non-current assets – investment properties (continued)

Non-current assets – investment properties(continued)	Non-current assets – investment properties(continued)	Non-current assets – investment properties(continued)
(a) Properties (continued) Ownership Acquisition date Independent valuation date Independent valuation amount Independent valuer Book value 31 Dec 2012 Book value 30 Jun 2012 % $m $m $m
45 Clarence Street, Sydney, NSW 100 Dec 1998 Jun 2011 247.5 (f) 253.4 250.3 Governor Phillip Tower & Governor Macquarie Tower, 1 Farrer Place, Sydney, NSW 50 Dec 1998 Dec 2012 670.0 (a) 670.0 651.1 309-321 Kent Street, Sydney, NSW 50 Dec 1998 Jun 2012 191.0 (d) 193.6 191.0 1 Margaret Street, Sydney, NSW 100 Dec 1998 Sep 2012 186.0 (d) 188.1 175.3 Victoria Cross 60 Miller Street, North Sydney, NSW 100 Dec 1998 Sep 2012 146.0 (a) 147.1 141.1 The Zenith, 821-843 Pacific Highway, Chatswood, NSW 50 Dec 1998 Jun 2010 107.5 (e) 117.7 117.3 Woodside Plaza, 240 St Georges Terrace, Perth, WA 100 Jan 2001 Jun 2012 460.0 (f) 480.0 460.0 30 The Bond, 30-34 Hickson Road, Sydney, NSW 100 May 2002 Dec 2010 145.0 (a) 157.0 146.5 Southgate Complex, 3 Southgate Avenue, Southbank, VIC 100 Aug 2000 Jun 2012 418.4 (c) 420.1 418.4 201-217 Elizabeth Street, Sydney, NSW 50 Aug 2000 Jun 2011 144.0 (d) 148.7 148.1 Garema Court, 140-180 City Walk, Civic, ACT 100 Aug 2000 Dec 2011 29.5 (a) 52.2 48.8 Australia Square Complex, 264-278 George Street, Sydney, NSW 50 Aug 2000 Dec 2011 278.8 (f) 274.7 271.5 Non-core international properties1 n/a n/a n/a n/a n/a 97.8 656.1 Total investment properties excluding development properties 5,879.3 6,297.5 Total development properties held as investment property 73.4 94.0 Total investmentproperties 5,952.7** 6,391.5
		5,879.3 6,297.5
		73.4 94.0
		5,952.7 6,391.5

1 The 30 June 2012 book value includes New Zealand, United States and European properties. The United States and European properties are classified as discontinued operations at 31 December 2012. The title to all properties is freehold, with the exception of the properties marked ** which are leasehold.

• (a) Colliers International

• (b) Urbis

• (c) CB Richard Ellis

• (d) Jones Lang LaSalle

• (e) Knight Frank

• (f) FPD Savills

• (g) m3property

Page 19 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 6

Non-current assets – investment properties (continued)

(a) Properties (continued)

Valuation basis

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. In relation to development properties under construction for future use as investment property, fair value is determined based on the market value of the property on the assumption it had already been completed at the valuation date less costs still required to complete the project, including an appropriate adjustment for profit and risk. Properties independently valued in the last 12 months were based on independent assessments by a member of the Australian Property Institute, the New Zealand Institute of Valuers, the Appraisal Institute in the United States of America, the French Real Estate Valuation Institution or the Society of Property Researchers, Germany.

Disposals

• On 12 November 2012, 89 Egerton Street, Silverwater, NSW was disposed of for gross proceeds of $4.0 million.

• On 21 November 2012, 1777 S Vintage Avenue, Ontario was disposed of for gross proceeds of US$18.2 million (A$17.6 million).

(b) Reconciliation

(b) Reconciliation
Note	For the For the 6 months to 12 months to 31 Dec 2012 30 Jun 2012 $m $m
Opening balance at the beginning of the period Additions Acquisitions Lease incentives Amortisation of lease incentives Rent straightlining Disposals Transfer to non-current assets classified as held for sale1 Transfer to discontinued operations2 Transfer from inventories 4 Net fair value gain of investment properties Foreign exchange differences on foreign currency translation Closing balance at the end of theperiod	6,391.5 7,105.9 43.0 160.7 - 35.2 25.8 62.8 (27.1) (62.7) 1.3 4.4 (19.0) (881.1) (15.0) (187.4) (540.3) - - 7.0 99.9 73.7 (7.4) 73.0
	5,952.7 6,391.5

• 1 During the half year ended 31 December 2012, certain properties at Quarry Greystanes, NSW were transferred from investment properties to non-current assets held for sale with an intention to sell.

2 During the half year ended 31 December 2012, the US and European portfolios were transferred from investment properties to discontinued operations.

(c) Investment properties pledged as security

Refer to note 9 for information on investment properties pledged as security.

Page 20 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 7

Non-current assets – investments accounted for using the equity method

Investments are accounted for in the Financial Statements using the equity method of accounting. Information relating to these entities is set out below:

Information relating to these entities is set out below:	Information relating to these entities is set out below:
31 Dec 2012 30 Jun 2012 31 Dec 2012 30 Jun 2012 Name of entity Principal activity % % $m $m Ownership interest
Bent Street Trust Office property investment 33.3 33.3 DEXUS Creek Street Trust Office property investment 50.0 - DEXUS Martin Place Trust Office property investment 50.0 - Total non-current assets - investments accounted for using the equity method	231.6 217.0 127.7 - 0.7 -
	360.0 217.0

The above entities were formed in Australia.

Movements in carrying amounts of investments accounted for using the equity method

	For the For the 6 months to 12 months to 31 Dec 2012 30 Jun 2012 $m $m
Opening balance at the beginning of the period Units issued during the year Interest acquired during the year Share of net profit after tax1 Distributions received/receivable Closing balance at the end of theperiod	217.0 200.4 137.3 8.5 - 1.2 11.1 13.8 (5.4) (6.9)
	360.0 217.0

1 Share of net profit after tax includes a fair value gain of $4.7 million (June 2012: $7.5 million) in relation to the Group’s share of the Bligh Street investment property.

Page 21 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 8

Non-current assets – intangible assets

Note 8 Non-current assets – intangible assets
	For the For the 6 months to 12 months to 31 Dec 2012 30 Jun 2012 $m $m
Management rights Opening balance at the beginning of the period Amortisation charge Closing balance at the end of the period Cost Accumulated amortisation Accumulated impairment Total management rights Goodwill Opening balance at the beginning of the period Impairment Closing balance at the end of the period Cost Accumulated impairment Total goodwill Total non-current assets - intangible assets	221.9 222.3 (0.2) (0.4)
	221.7 221.9
	252.4 252.4 (2.9) (2.7) (27.8) (27.8)
	221.7 221.9
	1.7 2.3 - (0.6)
	1.7 1.7
	3.0 3.0 (1.3) (1.3)
	1.7 1.7
	223.4 223.6

Management rights represent the asset management rights owned by DEXUS Holdings Pty Limited, a wholly owned subsidiary of DXO, which entitle it to management fee revenue from both finite life trusts and indefinite life trusts. Those rights that are deemed to have a finite useful life (held at a value of $5.5 million (June 2012: $5.7 million)) are measured at cost and amortised using the straight-line method over their estimated remaining useful lives of 20 years. Management rights that are deemed to have an indefinite life are held at a value of $216.2 million (June 2012: $216.2 million).

As at 31 December 2012, management had not identified any events or circumstances that would indicate an impairment of the carrying value of management rights associated with indefinite life trusts.

Page 22 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 9

Interest bearing liabilities

Note 9 Interest bearing liabilities
Note	31 Dec 2012 30 Jun 2012 $m $m
Current Unsecured US senior notes (c) Total unsecured Total current liabilities – interest bearing liabilities Non-current Secured Bank loans (b) Total secured Unsecured US senior notes (c) Bank loans (a) Medium term notes Preference shares (d) Total unsecured Deferred borrowing costs Total non-current liabilities – interest bearing liabilities Total interest bearing liabilities	71.7 -
	71.7 -
	71.7 -
	- 75.5
	- 75.5
	413.2 493.7 992.8 1,046.6 549.7 340.0 - 0.1
	1,955.7 1,880.4
	(12.1) (15.1)
	1,943.6 1,940.8
	2,015.3 1,940.8

Page 23 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 9

Interest bearing liabilities (continued)

Financing arrangements

Financing arrangements	Financing arrangements
31 Dec 2012 31 Dec 2012 $m $m Type of Facility Note Currency Security Maturity Date Utilised Facility Limit
US senior notes (144A) (c) US$ Unsecured Oct-14 to Mar-21 US senior notes (USPP) US$ Unsecured Dec-14 to Mar-17 Medium term notes A$ Unsecured Jul-14 to Sep-18 Multi-option revolving credit facilities (a) Multi Currency Unsecured Sep-13 to Dec-17 Bank loans – secured (b) US$ Secured Jun-17 to Dec-17 Total Bank guarantee utilised Unused at balance date	359.7 359.7 125.2 125.2 549.7 549.7 992.8 1,497.8 74.1 74.1
	2,101.5 2,606.5
	0.9
	504.1

Each of the Group’s unsecured borrowing facilities are supported by guarantee arrangements, and have negative pledge provisions which limit the amount and type of encumbrances that the Group can have over their assets and ensures that all senior unsecured debt ranks pari passu.

(a) Multi-option revolving credit facilities

This includes 18 facilities maturing between September 2013 and December 2017 with a weighted average maturity of December 2015. The total facility limit comprises US$153.5 million (A$147.8 million) and A$1,350.0 million. Of the total facility limit, A$250.0 million (drawn A$nil million) is maturing in September 2013. A$0.9 million is utilised as bank guarantees for developments.

(b) Bank loans – secured

This includes a total of US$76.9 million (A$74.1 million) of secured bank facilities with a weighted average maturity of October 2017. The facilities are secured by mortgages over investment properties totalling US$215.9 million (A$207.9 million) as at 31 December 2012. The facilities have been classified as current within discontinued operations following the Group’s announcement to sell the majority of its US industrial portfolio. The assets held as security are classified as discontinued operations and the secured bank facilities are expected to be repaid on 14 February 2013 as a result of settlement. Refer note 5.

(c) US senior notes (144A)

This includes a total of US$374.5 million (A$359.7 million) of US senior notes with a weighted average maturity of January 2019. US$74.5 million (A$71.7 million) of the notes have been classified as current following the Group’s announcement to sell the majority of its US industrial portfolio and its commitment to repay the notes on settlement. These notes were repaid on 31 January 2013. Refer to note 5 for details of the sale of the US industrial portfolio.

(d) Preferred shares

US REIT has issued US$92,550 (A$89,128) 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 have been transferred to discontinued operations disclosed in note 5.

Additional information

In addition to the facilities in the table above, the Group has a credit approved commitment for $470 million of bilateral facilities with a weighted maturity of 3.9 years which will be used to facilitate the acquisition of three Sydney office properties as announced to the ASX on 21 December 2012. Signing is expected to be completed by the end of the first quarter of calendar 2013.

Page 24 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 10

Contributed equity

(a) Contributed equity of unitholders of the parent entity

(a) Contributed equity of unitholders of the parent entity
	For the For the 6 months to 12 months to 31 Dec 2012 30 Jun 2012 $m $m
Opening balance at the beginning of the period Capital payments Buy-back of contributed equity Transaction costs Closing balance at the end of theperiod	1,605.0 1,798.1 - (175.0) (27.3) (18.0) - (0.1)
	1,577.7 1,605.0

(b) Contributed equity of unitholders of other stapled entities

(b) Contributed equity of unitholders of other stapled entities
	For the For the 6 months to 12 months to 31 Dec 2012 30 Jun 2012 $m $m
Opening balance at the beginning of the period Capital contributions Buy-back of contributed equity Transaction costs Closing balance at the end of theperiod	3,156.5 3,014.7 - 175.0 (50.2) (33.0) - (0.2)
	3,106.3 3,156.5
(c) Number of securities on issue	For the For the 6 months to 12 months to 31 Dec 2012 30 Jun 2012 No. of securities No. of securities
Opening balance at the beginning of the period Buy-back of contributed equity Closing balance at the end of theperiod	4,783,817,657 4,839,024,176 (81,860,267) (55,206,519)
	4,701,957,390 4,783,817,657

Page 25 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 11

Distributions paid and payable

(a) Distribution to security holders

(a) Distribution to security holders
	31 Dec 2012 31 Dec 2011 $m $m
31 December (payable 28 February 2013)	135.9 129.2
	135.9 129.2
(b) Distribution to other non-controlling interests	31 Dec 2012 31 Dec 2011 $m $m
DEXUS RENTS Trust (paid 18 October 2011) DEXUS RENTS Trust (paid 17 January 2012)	- 3.2 - 3.1
	- 6.3

(c) Distribution rate

(c) Distribution rate
	31 Dec 2012 31 Dec 2011 Cents per security Cents per security
31 December (payable 28 February 2013) Total distributions	2.89 2.67
	2.89 2.67

Page 26 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 12

Contingent liabilities

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

Details and estimates of maximum amounts of contingent liabilities are as follows:
	31 Dec 2012 30 Jun 2012 $m $m
Bank guarantees by the Group in respect of variations and other financial risks associated with the development of: 1 Bligh Street, Sydney, NSW1 Boundary Road, Laverton , VIC 123 Albert Street, Brisbane, QLD 57-75 Templar Road, Erskine Park, NSW 1 Foundation Place, Greystanes, NSW Contingent liabilities in respect of developments	- 0.2 0.5 0.4 0.1 0.5 0.1 - 0.2 -
	0.9 1.1

1 Bank guarantee held in relation to an equity accounted investment.

DDF together with DIT, DOT and DXO is also a guarantor of a total of A$1,350.0 million and US$153.5 million (A$147.8 million) of bank bilateral facilities, a total of A$545.0 million of medium term notes, a total of US$130.0 million (A$125.2 million) of privately placed notes, and a total of US$374.5 million (A$359.7 million) public 144A senior notes, which have all been negotiated to finance the Group and other entities within DXS. The guarantees have been given in support of debt outstanding and drawn against these facilities, and may be called upon in the event that a borrowing entity has not complied with certain requirements such as failure to pay interest or repay a borrowing, whichever is earlier. During the period no guarantees were called.

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

On settlement of the US sales transaction (refer note 13), a letter of credit will be issued in relation to the sale of 25 properties located in the United States. The letter of credit will be issued for US$15.0 million and is expected to remain on issue until September 2014.

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

Note 13

Events occurring after reporting date

On 17 January 2013, the acquisition of 40 Market Street, Melbourne, VIC was settled for $46.7 million, excluding acquisition costs.

On 18 January 2013, the acquisition of 131 Mica Street, Carole Park, QLD was settled for $21.0 million, excluding acquisition costs.

On 29 January 2013, the Group received written notification from the buyer of the 25 properties located in the United States of the buyer’s intention to settle on 14 February 2013. These properties are classified as discontinued operations held for sale (refer note 5). The settlement will be for gross proceeds of US$542.8 million.

On 1 February 2013, the sale of Quarry Greystanes, NSW – Camerons Transport was settled for gross proceeds of $14.9 million.

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

Page 27 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 14

Operating segments

(a) Description of segments

The Chief Operating Decision Maker (CODM) has been identified as the Board of Directors as they are responsible for the strategic decision making within the Group. DXS management has identified the Group’s operating segments based on the sectors analysed within the management reports reviewed by the CODM in order to monitor performance across the Group and to appropriately allocate resources. Refer to the table below for a brief description of the Group’s operating segments.

Following a review of internal reporting, the operating segments note has been amended to disclose revenue and expenses on the basis of their function and to provide additional financial metrics. The revised disclosures better reflect the financial information regularly reviewed by the Directors and DXS management in order to assess the performance of the functions of the Group and the allocation of resources.

Office	This comprises office space with any associated retail space; as well as car
	parks and office developments in Australia and New Zealand.
Industrial	This comprises domestic industrial properties, industrial estates and
	industrial developments.
Property management	This comprises property management services for third party clients and
	owned assets.
Development and trading	This comprises revenue earned and costs incurred by the Group on
	developments and inventory.
Funds management	This comprises funds management of thirdpartyclient assets.
DXS asset management	This comprises asset management of assets owned bythe Group.
All other segments	This comprises corporate expenses associated with maintaining and
	operating the Group. This segment also includes the treasury function of
	the Groupwhich is managed through a centralised treasurydepartment.
Discontinued operations	This comprises industrial properties, industrial estates and industrial
	developments in the United States, as well as the European industrial
	portfolio.

Page 28 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 14

Operating segments (continued)

(b) Segment information provided to the CODM

31 December 2012	Office Industrial Property management Development and trading Funds management DXS asset management All other segments Continuing operations Discontinued operations Total $m $m $m $m $m $m $m $m $m $m
Segment performance measures Property revenue and property management fees Proceeds from sale of inventory Management fee revenue Total operating segment revenue Property expenses Property management salaries Corporate and administration expenses Cost of sale of inventory Foreign exchange gains Net operating EBIT Interest revenue Finance costs Incentive amortisation and rent straight-line Tax benefit Other Funds From Operations (FFO) Net fair value gain of investment properties Net fair value loss of derivatives Finance break costs attributable to US sales transaction Net (loss)/gain on sale of investment properties Incentive amortisation and rent straight-line Deferred tax benefit Net profit/(loss) attributable to stapled security holders 31 December 2012 Segment asset measures Investment properties Non-current assets held for sale Inventories Equity accounted investment properties Directproperty portfolio	201.4 70.1 6.1 - - - - 277.6 24.0 301.6 - - - 15.7 - - - 15.7 - 15.7 - - 9.8 0.4 13.4 - - 23.6 0.3 23.9
	201.4 70.1 15.9 16.1 13.4 - - 316.9 24.3 341.2
	(49.6) (12.3) - - - - - (61.9) (5.6) (67.5) - - (5.2) - - - - (5.2) - (5.2) - - (7.4) - (6.5) (6.7) (11.1) (31.7) (2.9) (34.6) - - - (14.8) - - - (14.8) - (14.8) - - - - - - - - 1.2 1.2
	151.8 57.8 3.3 1.3 6.9 (6.7) (11.1) 203.3 17.0 220.3
	- - - - - - 0.8 0.8 - 0.8 - - - - - - (41.5) (41.5) (12.9) (54.4) 13.3 - - - - - - 13.3 1.0 14.3 - - - - - - 0.1 0.1 0.8 0.9 - - - - - - 0.3 0.3 - 0.3
	165.1 57.8 3.3 1.3 6.9 (6.7) (51.4) 176.3 5.9 182.2
	92.8 6.4 - - - - - 99.2 21.2 120.4 - - - - - - (10.9) (10.9) (1.0) (11.9) - - - - - - - - (12.4) (12.4) - (2.7) - - - - - (2.7) 1.2 (1.5) (13.3) - - - - - - (13.3) (1.0) (14.3) - - - - - - - - 4.5 4.5
	244.6 61.5 3.3 1.3 6.9 (6.7) (62.3) 248.6 18.4 267.0
	4,560.0 1,392.7 - - - - - 5,952.7 - 5,952.7 - 50.9 - - - - - 50.9 585.9 636.8 - - - 171.4 - - - 171.4 - 171.4 358.7 - - - - - - 358.7 - 358.7
	4,918.7 1,443.6 - 171.4 - - - 6,533.7 585.9 7,119.6

Page 29 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 14

Operating segments (continued)

(b) Segment information provided to the CODM (continued)

31 December 2011	Office Industrial Property management Development and trading Funds management DXS asset management All other segments Continuing operations Discontinued operations Total $m $m $m $m $m $m $m $m $m $m
Segment performance measures Property revenue and property management fees Proceeds from sale of inventory Management fee revenue Total operating segment revenue Property expenses Property management salaries Corporate and administration expenses Cost of sale of inventory Foreign exchange gains Net operating EBIT Interest revenue Finance costs Incentive amortisation and rent straight-line RENTS cash distributions Tax expense Other Funds From Operations (FFO) Net fair value gain of investment properties Impairment of inventories Net fair value loss of derivatives Net gain on sale of investment properties Incentive amortisation and rent straight-line RENTS capital distributions Deferred tax expense Impairment of goodwill and other Net profit/(loss) attributable to stapled security holders 30 June 2012 Segment asset measures Investment properties Non-current assets held for sale Inventories Equity accounted investment properties Directproperty portfolio	189.0 72.2 5.5 - - - - 266.7 60.7 327.4 - - - 21.8 - - - 21.8 - 21.8 - - 9.8 1.9 13.8 - - 25.5 0.2 25.7
	189.0 72.2 15.3 23.7 13.8 - - 314.0 60.9 374.9
	(47.7) (13.8) - - - - - (61.5) (17.7) (79.2) - - (6.4) - - - - (6.4) - (6.4) - - (7.7) - (6.4) (5.9) (16.6) (36.6) (3.2) (39.8) - - - (19.1) - - - (19.1) - (19.1) - - - - - - - - 0.8 0.8
	141.3 58.4 1.2 4.6 7.4 (5.9) (16.6) 190.4 40.8 231.2
	- - - - - - 0.8 0.8 - 0.8 - - - - - - (21.7) (21.7) (36.5) (58.2) 13.3 0.3 - - - - - 13.6 3.1 16.7 - - - - - - (6.3) (6.3) - (6.3) - - - - - - - - (0.5) (0.5) - - - - - - 0.6 0.6 - 0.6
	154.6 58.7 1.2 4.6 7.4 (5.9) (43.2) 177.4 6.9 184.3
	32.8 6.7 - - - - - 39.5 20.5 60.0 - - - - (2.0) - - (2.0) - (2.0) - - - - - - (35.9) (35.9) (38.7) (74.6) - - - - - - - - 2.9 2.9 (13.3) (0.3) - - - - - (13.6) (3.1) (16.7) - - - - - - 5.3 5.3 - 5.3 - - - - - - - - (12.3) (12.3) - - - - - - (1.2) (1.2) - (1.2)
	174.1 65.1 1.2 4.6 5.4 (5.9) (75.0) 169.5 (23.8) 145.7
	4,458.4 1,373.5 - - - - - 5,831.9 559.6 6,391.5 - 187.4 - - - - - 187.4 24.9 212.3 - - - 97.8 - - - 97.8 - 97.8 221.1 - - - - - - 221.1 - 221.1
	4,679.5 1,560.9 - 97.8 - - - 6,338.2 584.5 6,922.7

Page 30 of 34

DEXUS Diversified Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 14

Operating segments (continued)

(c) Other segment information

(i) Funds From Operations (FFO)

The Board assesses the performance of each operating sector based on FFO. FFO is a global financial measure of real estate operating performance after finance costs and taxes, and is adjusted for certain non-cash items. The Directors consider FFO to be a measure that reflects the underlying performance of the Group. DEXUS’s FFO comprises net profit/loss after tax attributable to stapled security holders calculated in accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark to market impacts, amortisation of certain tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments, deferred tax expense/benefit and DEXUS RENTS Trust capital distribution.

(ii) Reconciliation of segment revenue to the Statement of Comprehensive Income

	2012 2011 $m $m
Gross operating segment revenue Revenue from discontinued operations Share of property revenue from associates Interest revenue Total revenue from ordinary activities	341.2 374.9 (24.3) (60.9) (7.9) (4.3) 0.8 0.8
	309.8 310.5

(iii) Reconciliation of segment assets to the Statement of Financial Position

The amounts provided to the CODM as a measure of segment assets is the direct property portfolio. The direct property portfolio values are allocated based on the operations of the segment and physical location of the asset and are measured in a manner consistent with the Statement of Financial Position. The reconciliation below reconciles the total direct property portfolio balance to total assets in the Statement of Financial Position.

	31 Dec 2012 30 Jun 2012 $m $m
Investment properties Investment properties classified as held for sale Inventories Investment properties accounted for using the equity method1 Direct property portfolio Cash and cash equivalents Receivables Intangible assets Derivative financial instruments Deferred tax assets Current tax assets Plant and equipment Prepayments and other assets2 Other assets classified as discontinued operations Total assets	5,952.7 6,391.5 636.8 212.3 171.4 97.8 358.7 221.1
	7,119.6 6,922.7
	46.0 59.2 25.1 30.8 223.4 223.6 66.9 78.3 36.0 36.7 - 0.2 4.4 4.7 10.7 7.9 13.0 -
	7,545.1 7,364.1

1 This represents the Group’s portion of investment properties accounted for using the equity method.

2 Other assets include the Group’s share of total net assets of its investments accounted for using the equity accounted method less the Group’s share of the investment property value which is included in the direct property portfolio.

Page 31 of 34

DEXUS Diversified Trust Directors’ Declaration For the half year ended 31 December 2012

In the Directors’ opinion:

• (a) the Financial Statements and notes set out on pages 6 to 31 are in accordance with the Corporations Act 2001, including:

• (i) complying with Australian Accounting Standards, the Corporations Act 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the Group’s financial position as at 31 December 2012 and of its performance for the half year ended on that date; and

• (b) there are reasonable grounds to believe that DEXUS Diversified Trust will be able to pay its debts as and when they become due and payable.

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

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Christopher T Beare Chair 13 February 2013

Page 32 of 34

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Independent auditor’s review report to the stapled security holders of DEXUS Diversified Trust

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of DEXUS Diversified Trust, which comprises the statement of financial position as at 31 December 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors’ declaration for the DEXUS Property Group (the consolidated entity). The consolidated entity comprises both DEXUS Diversified Trust (the Trust) and the entities it controlled during that half-year.

Directors’ responsibility for the half-year financial report

The directors of DEXUS Funds Management Limited (the Responsible Entity) are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error.

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 a 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 2012 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 DEXUS 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. 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.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Liability limited by a scheme approved under Professional Standards Legislation.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

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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 DEXUS 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 2012 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

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PricewaterhouseCoopers

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EA Baron Partner

Sydney 13 February 2013

DEXUS Industrial Trust (ARSN 090 879 137)

Interim Report 31 December 2012

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Contents Page
Directors’ Report .............................................................................................. 1
Auditor’s Independence Declaration ....................................................................... 3
Consolidated Statement of Comprehensive Income ..................................................... 4
Consolidated Statement of Financial Position ............................................................ 5
Consolidated Statement of Changes in Equity ............................................................ 6
Consolidated Statement of Cash Flows .................................................................... 7
Notes to the Financial Statements.......................................................................... 8
Directors’ Declaration .......................................................................................17
Independent Auditor’s Review Report ....................................................................18

DEXUS Property Group (DXS) (ASX Code: DXS) consists of DEXUS Diversified Trust (DDF), DEXUS Industrial Trust (DIT), DEXUS Office Trust (DOT) and DEXUS Operations Trust (DXO), collectively known as DXS or the Group.

Under Australian Accounting Standards, DDF has been deemed the parent entity for accounting purposes. Therefore the DDF consolidated Financial Statements include all entities forming part of DXS. The DDF consolidated Financial Statements are presented in separate Financial Statements.

All press releases, Financial Statements and other information are available on our website: www.dexus.com

DEXUS Industrial Trust Directors' Report For the half year ended 31 December 2012

The Directors of DEXUS Funds Management Limited (DXFM) as Responsible Entity of DEXUS Industrial Trust present their Directors’ Report together with the consolidated Financial Statements for the half year ended 31 December 2012. The consolidated Financial Statements represents DEXUS Industrial Trust and its consolidated entities (DIT or the Trust).

The Trust together with DEXUS Diversified Trust (DDF), DEXUS Office Trust (DOT) and DEXUS Operations Trust (DXO) form the DEXUS Property Group (DXS or the Group) stapled security.

1 Directors

The following persons were Directors of DXFM at all times during the half year and to the date of this Directors’ Report, unless otherwise stated:

Report, unless otherwise stated:
Directors	Appointed
Christopher T Beare	4 August 2004
Elizabeth A Alexander, AM	1 January 2005
Barry R Brownjohn	1 January 2005
John C Conde, AO	29 April 2009
Tonianne Dwyer	24 August 2011
Stewart F Ewen, OAM	4 August 2004
W Richard Sheppard	1 January 2012
Darren J Steinberg	1 March 2012
Peter B St George	29 April 2009

2 Review and results of operations

The results for the half year ended 31 December 2012 were:

• profit attributable to unitholders was $35.1 million (December 2011: $22.5 million loss);

• total assets were $1,429.0 million (June 2012: $1,534.8 million); and

• net assets were $691.5 million (June 2012: $664.2 million).

A review of the results, financial position and operations of the Group, of which the Trust forms part thereof, is set out in the Directors’ Report of the DEXUS Property Group Interim Report.

3 Auditor’s Independence Declaration

A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 3 and forms part of this Directors’ Report.

4 Rounding of amounts and currency

The Trust is a registered scheme of the kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the rounding off of amounts in this Directors’ Report and the Financial Statements. Amounts in this 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.

Page 1 of 19

DEXUS Industrial Trust Directors' Report (continued) For the half year ended 31 December 2012

5 Directors’ authorisation

This Directors’ Report is made in accordance with a resolution of the Directors. The Financial Statements were authorised for issue by the Directors on 13 February 2013. The Directors have the power to amend and reissue the Financial Statements.

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Christopher T Beare Chair 13 February 2013

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Darren J Steinberg Chief Executive Officer 13 February 2013

Page 2 of 19

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Auditor’s Independence Declaration

As lead auditor for the review of DEXUS Industrial Trust for the half year ended 31 December 2012, 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 DEXUS Industrial Trust and the entities it controlled during the period.

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EA Barron Partner PricewaterhouseCoopers

Sydney 13 February 2013

Liability limited by a scheme approved under Professional Standards Legislation.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

DEXUS Industrial Trust Consolidated Statement of Comprehensive Income For the half year ended 31 December 2012

31 Dec 2012 31 Dec 2011 Note $'000 $'000	31 Dec 2012 31 Dec 2011 Note $'000 $'000
Revenue from ordinary activities Property revenue Interest revenue Total revenue from ordinary activities Net fair value gain of investment properties Other income Total income Expenses Property expenses Responsible Entity fees Finance costs 2 Net fair value loss of derivatives Net loss on sale of investment properties Net fair value loss of investment properties Other expenses Total expenses Profit before tax Tax expense Income tax benefit Total tax benefit Profit after tax from continuing operations Profit/(loss) from discontinued operations 4 Net profit/(loss) for the period Other comprehensive income/(loss): Exchange differences on translating foreign operations Total comprehensive income/(loss) for theperiod	45,222 48,886 72 61
	45,294 48,947 1,517 - - 7
	46,811 48,954
	(10,362) (11,606) (1,419) (1,535) (13,030) (37,966) (239) (10) (1,115) (49) - (254) (371) (470)
	(26,536) (51,890)
	20,275 (2,936)
	356 -
	356 -
	20,631 (2,936)
	14,499 (19,583)
	35,130 (22,519)
	2,476 (6,394)
	37,606 (28,913)
Earnings per unit	Cents Cents
Basic earnings per unit on profit/(loss) attributable to unitholders of the parent entity Diluted earnings per unit on profit/(loss) attributable to unitholders of the parent entity	1.24 (0.96) 1.24 (0.96)

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Page 4 of 19

DEXUS Industrial Trust Consolidated Statement of Financial Position As at 31 December 2012

Note	31 Dec 2012 30 Jun 2012 $'000 $'000
Current assets Cash and cash equivalents 3 Receivables Loan with related parties 5 Derivative financial instruments Current tax assets Other Discontinued operations and assets classified as held for sale 4 Total current assets Non-current assets Investment properties 6 Investments accounted for using the equity method 7 Derivative financial instruments Other Total non-current assets Total assets Current liabilities Payables Current tax liabilities Provisions Derivative financial instruments Discontinued operations classified as held for sale 4 Total current liabilities Non-current liabilities Loans with related parties 5 Interest bearing liabilities 8 Derivative financial instruments Deferred tax liabilities Other Total non-current liabilities Total liabilities Net assets Equity Contributed equity 9 Reserves Accumulated losses Total equity	16,314 11,862 2,473 16,629 138,948 266,021 882 1,332 - 198 665 2,806
	159,282 298,848 342,358 102,264
	501,640 401,112
	918,995 1,058,533 - 65,599 8,302 9,386 82 158
	927,379 1,133,676
	1,429,019 1,534,788
	91,029 75,871 973 973 - 10,000 9,160 1,430
	101,162 88,274 90,231 -
	191,393 88,274
	525,473 696,367 - 49,404 20,518 35,096 - 595 111 811
	546,102 782,273
	737,495 870,547
	691,524 664,241
	1,082,464 1,092,787 27,006 24,530 (417,946) (453,076)
	691,524 664,241

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

Page 5 of 19

DEXUS Industrial Trust Consolidated Statement of Changes in Equity For the half year ended 31 December 2012

Note	Contributed equity Accumulated losses Foreign currency translation reserve Total equity $'000 $'000 $'000 $'000
Opening balance as at 1 July 2011 Loss after tax for the period Other comprehensive loss for the period Transactions with owners in their capacity as owners Capital contribution, net of transaction costs 9 Closing balance as at 31 December 2011 Opening balance as at 1 July 2012 Profit after tax for the period Other comprehensive income for the period Transactions with owners in their capacity as owners Buy back of contributed equity 9 Closing balance as at 31 December 2012	925,116 (390,193) 41,642 576,565 - (22,519) - (22,519) - - (6,394) (6,394) 174,909 - - 174,909
	1,100,025 (412,712) 35,248 722,561
	1,092,787 (453,076) 24,530 664,241 - 35,130 - 35,130 - - 2,476 2,476 (10,323) - - (10,323)
	1,082,464 (417,946) 27,006 691,524

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Page 6 of 19

DEXUS Industrial Trust Consolidated Statement of Cash Flows

For the half year ended 31 December 2012

Note	31 Dec 2012 31 Dec 2011 $'000 $'000
Cash flows from operating activities Receipts in the course of operations (inclusive of GST) Payments in the course of operations (inclusive of GST) Interest received Finance costs paid Income and withholding taxes paid Net cash inflow from operating activities Cash flows from investing activities Proceeds from sale of investment properties Payments for capital expenditure on investment properties Proceeds from investments accounted for using the equity method Proceeds from sale of investments Net cash inflow from investing activities Cash flows from financing activities Proceeds from capital contribution Capital contribution transaction costs Payments for buy back of contributed equity Borrowings provided by entities within DXS Borrowings provided to entities within DXS Repayment of US REIT loan Proceeds from borrowings Repayment of borrowings Distributions paid to unitholders Net cash outflow from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of theperiod 3	54,998 75,152 (14,900) (24,783) 1,093 823 (11,990) (18,907) (16) (386)
	29,185 31,899
	79,287 72,930 (5,362) (11,722) 10,849 - 15,256 -
	100,030 61,208
	- 174,979 - (70) (10,323) - 15,440 124,655 (153,900) (379,909) 36,847 - - 14,089 - (9,015) (10,000) (12,360)
	(121,936) (87,631)
	7,279 5,476 11,862 39,837 85 (1,796)
	19,226 43,517

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Page 7 of 19

DEXUS Industrial Trust Notes to the Financial Statements For the half year ended 31 December 2012

Note 1

Summary of significant accounting policies

(a) Basis of preparation

DEXUS Property Group stapled securities are quoted on the Australian Securities Exchange under the “DXS” code and comprise one unit in each of DDF, DIT, DOT and DXO. Each entity forming part of DXS 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.

DEXUS Funds Management Limited (DXFM) as Responsible Entity for each entity within DXS may only unstaple the Group if approval is obtained by a special resolution of the stapled security holders.

These general purpose interim Financial Statements for the half year ended 31 December 2012 have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

These Financial Statements do not include notes of the type normally included in an annual financial report. Accordingly these Financial Statements should be read in conjunction with the annual Financial Statements for the year ended 30 June 2012 and any public pronouncements made by DXS 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.

Critical accounting estimates

The preparation of Financial Statements requires the use of certain critical accounting estimates and management to exercise its judgement in the process of applying the Group’s accounting policies. Other than the estimation of fair values relating to certain derivatives and other financial instruments and investment properties, no key assumptions concerning the future or other estimation of uncertainty at the end of each reporting period could have a significant risk of causing material adjustments to the Financial Statements in the next reporting period.

Page 8 of 19

DEXUS Industrial Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 2 Finance costs

Note 2 Finance costs
	31 Dec 2012 31 Dec 2011 $'000 $'000
Interest paid to related parties Net fair value loss of interest rate swaps Amount capitalised Other finance costs Total finance costs	7,309 21,939 5,719 16,538 - (562) 2 51
	13,030 37,966

Note 3

Current assets – cash and cash equivalents

Note 3 Current assets – cash and cash equivalents
	31 Dec 2012 30 Jun 2012 $'000 $'000
Cash at bank Cash held in escrow1 Short-term deposits Total current assets - cash and cash equivalents	1,058 9,100 15,256 - - 2,762
	16,314 11,862

1 As at 31 December 2012, the Trust held US$15.8 million (A$15.3 million) in escrow in relation to US asset disposals in December 2012. These funds are expected to be released from escrow on 14 February 2013 as a result of settlement.

Reconciliation to cash at the end of the period

The above figures are reconciled to cash as shown in the Statement of Cash Flows as follows:

Note	31 Dec 2012 30 Jun 2012 $m $m
Balances as above Discontinued operations 4 Balancesper Statement of Cash Flows	16,314 11,862 2,912 -
	19,226 11,862

Page 9 of 19

DEXUS Industrial Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 4

Assets classified as held for sale and discontinued operations

A strategic review was announced to the ASX on 16 August 2012, which resulted in all offshore property being considered non-core. On 20 December 2012, DXS announced the sale of the majority of the remaining US industrial portfolio and therefore the US industrial portfolio has been classified as a discontinued operation at 31 December 2012.

The European portfolio is also considered non-core and has been classified as a discontinued operation.

The table below sets out the financial performance for discontinued operations.

	31 Dec 2012 31 Dec 2011 $'000 $'000
Property revenue Interest revenue Share of net profit of associates accounted for using �the equity method Net fair value gain/(loss) of investment properties Net foreign exchange gain Net loss on sale of investment properties Property expenses Responsible Entity fees Finance costs Net fair value loss of derivatives Other expenses Profit/(loss) before tax Income tax expense Withholding tax expense Total tax expense Profit/(loss) after tax Loss on measurement to fair value less costs to sell before tax Withholding tax benefit Loss on measurement to fair value less costs to sell after tax Profit/(loss) from discontinued operations Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net increase in cashgenerated by discontinued operations	6,819 15,216 668 746 25,334 12,734 284 (3,182) 635 360 (342) (3,150) (1,068) (2,323) (225) (496) (11,361) (37,796) (604) (491) (211) (341)
	19,929 (18,723)
	(74) (67) - (793)
	(74) (860)
	19,855 (19,583)
	(5,923) - 567 -
	(5,356) -
	14,499 (19,583)
	(2,357) (201) (1,859) 72,500 36,847 -
	32,631 72,299

Page 10 of 19

DEXUS Industrial Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 4

Assets classified as held for sale and discontinued operations (continued)

The table below sets out the discontinued operations classified as held for sale that continue to be owned by the Trust as at balance date. These assets and liabilities are presented as aggregate amounts in the Statement of Financial Position.

Financial Position.
	Discontinued operations1 31 Dec 2012 Total 30 Jun 2012 $'000 $'000
Assets classified as held for sale Cash and cash equivalents Receivables Loans with related parties Other assets Investment properties Investments accounted for using the equity method Total assets classified as held for sale Liabilities classified as held for sale Payables Loans with related parties Interest bearing liabilities Other Total liabilities classified as held for sale	2,912 - 1,697 - 87,827 - 422 - 162,954 102,264 86,546 -
	342,358 102,264
	2,545 - 37,874 - 49,126 - 686 -
	90,231 -

1 Includes the Unites States and European operations.

Disposals

• On 13 July 2012, 114-120 Old Pittwater Road, Brookvale, NSW was disposed of for gross proceeds of $40.5 million.

• On 2 October 2012, 50% of DEXUS Industrial Estate Laverton North VIC was disposed of for gross proceeds of $36.9 million.

Page 11 of 19

DEXUS Industrial Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 5

Loans with related parties

Note 5 Loans with related parties
	31 Dec 2012 30 Jun 2012 $'000 $'000
Current assets - loans with related parties Non-interest bearing loans with entities within DXS1 Interest bearing loans with entities within DXS Total current assets - loans with related parties Non-current liabilities - loans with related parties Interest bearing loans with related parties2 Interest bearing loans with entities within DXS Total non-current liabilities - loans with related parties	138,948 138,948 - 127,073
	138,948 266,021
	525,473 696,367 - -
	525,473 696,367

• 1 Non-interest bearing loans with entities within DXS were created to effect the stapling of the Trust, DDF, DOT and DXO. These loan balances eliminate on consolidation within DXS.

2 Interest bearing loans with DEXUS Finance Pty Limited (DXF). These loan balances eliminate on consolidation within DXS.

Note 6

Non-current assets – investment properties

Note 6 Non-current assets – investment properties
	For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 $'000 $'000
Opening balance at the beginning of the period Additions Lease incentives Amortisation of lease incentives Net fair value gain/(loss) of investment properties Rent straightlining Disposals Transfer to non-current assets classified as held for sale Foreign exchange differences on foreign currency translation Closing balance at the end of theperiod	1,058,533 1,307,485 3,211 15,259 2,973 9,791 (3,211) (7,297) 14,653 (21,616) 108 921 (4,000) (172,919) (151,681) (77,375) (1,591) 4,284
	918,995 1,058,533

Disposals

 On 12 November 2012, 89 Egerton Street, Silverwater, NSW was disposed of for gross proceeds of $4.0 million.

Page 12 of 19

DEXUS Industrial Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 7

Non-current assets – investments accounted for using the equity method

Investments are accounted for in the Financial Statements using the equity method of accounting. Information relating to this entity is set out below.

Information relating to this entity is set out below.	Information relating to this entity is set out below.
Ownership Interest
31 Dec 2012 30 Jun 2012 31 Dec 2012 30 Jun 2012
Name of entity Principal activity % % $'000 $'000
DEXUS Industrial Properties, Inc.1 Asset, property and funds management 50.0 50.0 Total non-current assets - investments accounted for using the equity method	- 65,599
	- 65,599

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

DEXUS Industrial Properties, Inc. was formed in the United States.

Movements in carrying amounts of investments accounted for using the equity method

	For the 6 months to 31 Dec 2012 For the 12 months to 30 Jun 2012 $'000 $'000
Opening balance at the beginning of the period 65,599 162,513 Share of net profit after tax 25,334 3,398 Distributions received/receivable - (109,656) Transfer to discontinued operations (86,546) - Foreign exchange difference on foreign currency translation (4,387) 9,344 Closing balance at the end of the period - 65,599 Results attributable to investments accounted for using the equity method Operating profit before income tax 25,334 3,398 Operating profit after income tax 25,334 3,398 25,334 3,398 Accumulated losses at the beginning of the period (223,528) (226,926) Accumulated losses at the end of theperiod (198,194) (223,528)	65,599 162,513 25,334 3,398 - (109,656) (86,546) - (4,387) 9,344
	- 65,599
	25,334 3,398
	25,334 3,398
	(223,528) (226,926) (198,194) (223,528)

Page 13 of 19

DEXUS Industrial Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 8

Interest bearing liabilities

Note 8 Interest bearing liabilities
Note	31 Dec 2012 30 Jun 2012 $'000 $'000
Non-current Bank loans (a) Total secured Deferred borrowing costs Total non-current liabilities - interest bearing liabilities Total interest bearing liabilities	- 50,927
	- 50,927
	- (1,523)
	- 49,404
	- 49,404

The Group’s unsecured borrowing facilities are supported by the Trust’s guarantee arrangements, and have negative pledge provisions which limit the amount and type of encumbrances that the Trust can have over its assets and ensures that all senior unsecured debt ranks pari passu.

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

(a) Bank loans – secured

The US$51.9 million (A$50.0 million, June 2012: A$50.9 million) bank facility was secured by a mortgage over one investment property. The facility was classified as current within discontinued operations following DXS’ announcement to sell the majority of its US portfolio. The assets held as security are classified as discontinued operations and the secured bank facility is expected to be repaid on 14 February 2013 as a result of settlement.

Note 9

Contributed equity

(a) Contributed equity

(a) Contributed equity
	For the 6 months to 31 Dec 2012 For the 12 months to 30 Jun 2012 $'000 $'000
Opening balance at the beginning of the period Capital contribution Capital contribution transaction costs Buy back of contributed equity Closing balance at the end of theperiod	1,092,787 925,116 - 174,979 - (78) (10,323) (7,230)
	1,082,464 1,092,787

(b) Number of units on issue

	For the 6 months to 31 Dec 2012 For the 12 months to 30 Jun 2012 No. of units No. of units
Opening balance at the beginning of the period Buy back of contributed equity Closing balance at the end of theperiod	4,783,817,657 4,839,024,176 (81,860,267) (55,206,519)
	4,701,957,390 4,783,817,657

Page 14 of 19

DEXUS Industrial Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 10

Contingent liabilities

The Trust together with DDF, DXO and DOT is also a guarantor of a total of A$1,350.0 million and US$153.5 million (A$147.8 million) of bank bilateral facilities, a total of A$545.0 million of medium term notes, a total of US$130.0 million (A$125.2 million) of privately placed notes, and a total of US$374.5 million (A$359.7 million) public 144A senior notes, which have all been negotiated to finance the Group and other entities within DXS. The guarantees have been given in support of debt outstanding and drawn against these facilities, and may be called upon in the event that a borrowing entity has not complied with certain requirements such as failure to pay interest or repay a borrowing, whichever is earlier. During the period no guarantees were called.

The guarantees are issued in respect of the Trust and do not constitute an additional liability to those already existing in interest bearing liabilities on the Statement of Financial Position.

The Directors of the Responsible Entity are not aware of any other contingent liabilities in relation to the Trust, 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 11

Events occurring after reporting date

On 18 January 2013, the acquisition of 131 Mica Street, Carole Park, QLD was settled for $21.0 million, excluding acquisition costs.

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

Page 15 of 19

DEXUS Industrial Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 12

Operating segments

The Chief Operating Decision Maker (CODM) has been identified as the Board of Directors as they are responsible for the strategic decision making within the Group. DXS management has identified the DXS’s operating segments based on the sectors analysed within the management reports reviewed by the CODM in order to monitor performance across the Group and to appropriately allocate resources. Refer to the table below for a brief description of the Group’s operating segments.

Office	This comprises office space with any associated retail space; as well as car
	parks and office developments in Australia and New Zealand.
Industrial	This comprises domestic industrial properties, industrial estates and
	industrial developments.
Property management	This comprises property management services for third party clients and
	owned assets.
Development and trading	This comprises revenue earned and costs incurred by the Group on
	developments and inventory.
Funds management	This comprises funds management of thirdpartyclient assets.
DXS asset management	This comprises asset management of assets owned bythe Group.
All other segments	This comprises corporate expenses associated with maintaining and
	operating the Group. This segment also includes the treasury function of
	the Groupwhich is managed through a centralised treasurydepartment.
Discontinued operations	This comprises industrial properties, industrial estates and industrial
	developments in the United States, as well as the European industrial
	portfolio.

Consistent with how the CODM manages the business, the operating segments within DXS are reviewed on a consolidated basis and are not monitored at an individual trust level. The results of the individual trusts are not limited to any one of the segments described above.

Disclosures concerning DXS’s operating segments, as well as the operating segments’ key financial information provided to the CODM, are presented in the DEXUS Property Group Financial Statements.

Page 16 of 19

DEXUS Industrial Trust Directors’ Declaration For the half year ended 31 December 2012

In the Directors’ opinion:

• (a) the Financial Statements and notes set out on pages 4 to 16 are in accordance with the Corporations Act 2001, including:

• (i) complying with Australian Accounting Standards, the Corporations Act 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2012 and of its performance for the half year ended on that date; and

• (b) there are reasonable grounds to believe that DEXUS Industrial Trust will be able to pay its debts as and when they become due and payable.

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

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Christopher T Beare Chair 13 February 2013

Page 17 of 19

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Independent auditor’s review report to the unitholders of DEXUS Industrial Trust

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of DEXUS Industrial Trust, which comprises the statement of financial position as at 31 December 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors’ declaration for the DEXUS Industrial Trust Group (the consolidated entity). The consolidated entity comprises both DEXUS Industrial Trust (the Trust) and the entities it controlled during that half-year.

Directors’ responsibility for the half-year financial report

The directors of DEXUS Funds Management Limited (the Responsible Entity) are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error.

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 a 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 2012 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 DEXUS 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-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. 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.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Liability limited by a scheme approved under Professional Standards Legislation.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

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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 DEXUS 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 2012 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

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PricewaterhouseCoopers

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EA Baron Partner

Sydney 13 February 2013

DEXUS Office Trust

(ARSN 090 768 531)

Interim Report 31 December 2012

Page 1 of 18

Contents Page
Directors’ Report .............................................................................................. 1
Auditor’s Independence Declaration ....................................................................... 3
Consolidated Statement of Comprehensive Income ..................................................... 4
Consolidated Statement of Financial Position ............................................................ 5
Consolidated Statement of Changes in Equity ............................................................ 6
Consolidated Statement of Cash Flows .................................................................... 7
Notes to the Financial Statements.......................................................................... 8
Directors’ Declaration .......................................................................................15
Independent Auditor’s Review Report ....................................................................16

DEXUS Property Group (DXS) (ASX Code: DXS) consists of DEXUS Diversified Trust (DDF), DEXUS Industrial Trust (DIT), DEXUS Office Trust (DOT) and DEXUS Operations Trust (DXO), collectively known as DXS or the Group.

Under Australian Accounting Standards, DDF has been deemed the parent entity for accounting purposes. Therefore the DDF consolidated Financial Statements include all entities forming part of DXS. The DDF consolidated Financial Statements are presented in separate Financial Statements.

All press releases, Financial Statements and other information are available on our website: www.dexus.com

DEXUS Office Trust Directors' Report For the half year ended 31 December 2012

The Directors of DEXUS Funds Management Limited (DXFM) as Responsible Entity of DEXUS Office Trust present their Directors’ Report together with the consolidated Financial Statements for the half year ended 31 December 2012. The consolidated Financial Statements represents DEXUS Office Trust and its consolidated entities (DOT or the Trust).

The Trust together with DEXUS Diversified Trust (DDF), DEXUS Industrial Trust (DIT) and DEXUS Operations Trust (DXO) form the DEXUS Property Group (DXS or the Group) stapled security.

1 Directors

The following persons were Directors of DXFM at all times during the half year and to the date of this Directors’ Report, unless otherwise stated:

Report, unless otherwise stated:
Directors	Appointed
Christopher T Beare	4 August 2004
Elizabeth A Alexander, AM	1 January 2005
Barry R Brownjohn	1 January 2005
John C Conde, AO	29 April 2009
Tonianne Dwyer	24 August 2011
Stewart F Ewen, OAM	4 August 2004
W Richard Sheppard	1 January 2012
Darren J Steinberg	1 March 2012
Peter B St George	29 April 2009

2 Review of results and operations

The results for the half year ended 31 December 2012 were:

• profit attributable to unitholders was $144.7 million (December 2011: $76.0 million);

• total assets were $3,601.2 million (June 2012: $3,368.4 million); and

• net assets were $2,485.0 million (June 2012: $2,451.1 million).

A review of the results, financial position and operations of the Group, of which the Trust forms part thereof, is set out in the Directors’ Report of the DEXUS Property Group Interim Report.

3 Auditor's Independence Declaration

A copy of the Auditor's Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 3 and forms part of this Directors’ Report.

4 Rounding of amounts and currency

The Trust is a registered scheme of the kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the rounding off of amounts in this Directors’ Report and the Financial Statements. Amounts in this 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.

Page 1 of 17

DEXUS Office Trust Directors' Report (continued) For the half year ended 31 December 2012

5 Directors’ authorisation

The Directors’ Report is made in accordance with a resolution of the Directors. The Financial Statements were authorised for issue by the Directors on 13 February 2013. The Directors have the power to amend and reissue the Financial Statements.

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Christopher T Beare Chair 13 February 2013

Darren J Steinberg Chief Executive Officer 13 February 2013

Page 2 of 17

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Auditor’s Independence Declaration

As lead auditor for the review of DEXUS Office Trust for the half year ended 31 December 2012, 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 DEXUS Office Trust and the entities it controlled during the period.

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EA Barron Partner PricewaterhouseCoopers

Sydney 13 February 2013

Liability limited by a scheme approved under Professional Standards Legislation.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

DEXUS Office Trust Consolidated Statement of Comprehensive Income For the half year ended 31 December 2012

31 Dec 2012 31 Dec 2011 Note $'000 $'000	31 Dec 2012 31 Dec 2011 Note $'000 $'000
Revenue from ordinary activities Property revenue Interest revenue Total revenue from ordinary activities Net fair value gain of investment properties Share of net profit of associates accounted for using the equity method 4 Net foreign exchange gain Total income Expenses Property expenses Responsible Entity fees Finance costs 2 Other expenses Total expenses Profit before tax Other comprehensive income: Exchange differences on translating foreign operations Total comprehensive income for the period Net profit for the period attributable to: Unitholders of DEXUS Office Trust Non-controlling interests Net profit for the period Total comprehensive income for the period attributable to: Unitholders of DEXUS Office Trust Non-controlling interests Total comprehensive income for theperiod	135,855 134,303 207 206
	136,062 134,509 70,118 19,736 11,073 3,108 8 13
	217,261 157,366
	(35,949) (35,354) (5,213) (4,912) (30,695) (39,287) (669) (799)
	(72,526) (80,352)
	144,735 77,014
	1,276 (1,509)
	146,011 75,505
	144,735 76,006 - 1,008
	144,735 77,014
	146,011 74,497 - 1,008
	146,011 75,505
Earnings per unit	Cents Cents
Basic earnings per unit on profit attributable to unitholders of the parent entity Diluted earningsper unit onprofit attributable to unitholders of theparent entity	0.22 1.43 0.22 1.43

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Page 4 of 17

DEXUS Office Trust Consolidated Statement of Financial Position As at 31 December 2012

Note	31 Dec 2012 30 Jun 2012 $'000 $'000
Current assets Cash and cash equivalents Receivables Derivative financial instruments Other Total current assets Non-current assets Investment properties 3 Derivative financial instruments Investments accounted for using the equity method 4 Other Total non-current assets Total assets Current liabilities Payables Loans with related parties 5 Provisions Derivative financial instruments Total current liabilities Non-current liabilities Loans with related parties 5 Derivative financial instruments Other Total non-current liabilities Total liabilities Net assets Equity Contributed equity 6 Reserves Retained profits Total equity	5,181 3,091 12,644 6,502 2,908 1,284 2,913 2,961
	23,646 13,838 3,214,479 3,132,600 2,242 4,124 359,983 217,043 809 779
	3,577,513 3,354,546
	3,601,159 3,368,384
	38,919 41,854 55,684 55,684 74,172 67,672 2,675 1,288
	171,450 166,498 896,344 693,109 47,791 57,088 572 545
	944,707 750,742
	1,116,157 917,240
	2,485,002 2,451,144
	1,825,984 1,863,965 (13,233) (14,509) 672,251 601,688
	2,485,002 2,451,144

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

Page 5 of 17

DEXUS Office Trust Consolidated Statement of Changes in Equity

For the half year ended 31 December 2012

Note	Contributed equity Retained profits Foreign currency translation reserve Unitholder equity Non- controlling interests Total equity $'000 $'000 $'000 $'000 $'000 $'000
Opening balance as at 1 July 2011 Profit before tax for the period Other comprehensive loss for the period Transactions with owners in their capacity as owners Capital payment, net of transaction costs 6 Distributions paid or provided for 7 Transfer to retained profits Closing balance as at 31 December 2011 Opening balance as at 1 July 2012 Profit before tax for the period Other comprehensive income for the period Transactions with owners in their capacity as owners Buy back of contributed equity, net of transaction costs 6 Distributions paid or provided for 7 Closing balance as at 31 December 2012	2,063,214 556,723 (15,815) 2,604,122 204,028 2,808,150 - 76,006 - 76,006 1,008 77,014 - - (1,509) (1,509) - (1,509) (175,049) - - (175,049) - (175,049) - (73,481) - (73,481) (6,324) (79,805) - (5,424) - (5,424) 5,424 -
	1,888,165 553,824 (17,324) 2,424,665 204,136 2,628,801
	1,863,965 601,688 (14,509) 2,451,144 - 2,451,144 - 144,735 - 144,735 - 144,735 - - 1,276 1,276 - 1,276 (37,981) - - (37,981) - (37,981) - (74,172) - (74,172) - (74,172)
	1,825,984 672,251 (13,233) 2,485,002 - 2,485,002

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Page 6 of 17

DEXUS Office Trust Consolidated Statement of Cash Flows For the half year ended 31 December 2012

	31 Dec 2012 31 Dec 2011 $'000 $'000
Cash flows from operating activities Receipts in the course of operations (inclusive of GST) Payments in the course of operations (inclusive of GST) Interest received Finance costs paid to financial institutions Distributions received from associates accounted for using the equity method Net cash inflow from operating activities Cash flows from investing activities Payments for capital expenditure on investment properties Payments for investments accounted for using the equity method Net cash outflow from investing activities Cash flows from financing activities Borrowings provided to entities within DXS Borrowings provided by entities within DXS Repayment of borrowings Capital payment Capital payment transaction costs Payments for buy back of contributed equity Distributions paid to unitholders Distributions paid to non-controlling interests Net cash inflow/(outflow) from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of theperiod	146,493 157,855 (43,947) (52,054) 207 206 (9,453) (7,349) 5,428 4,056
	98,728 102,714
	(30,083) (28,417) (137,295) (3,848)
	(167,378) (32,265)
	(107,350) (94,328) 283,732 519,540 - (250,000) - (174,979) - (70) (37,981) - (67,672) (64,738) - (6,365)
	70,729 (70,940)
	2,079 (491) 3,091 7,671 11 (56)
	5,181 7,124

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Page 7 of 17

DEXUS Office Trust Notes to the Financial Statements For the half year ended 31 December 2012

Note 1

Summary of significant accounting policies

(a) Basis of preparation

DEXUS Property Group stapled securities are quoted on the Australian Securities Exchange under the “DXS” code and comprise one unit in each of DDF, DIT, DOT and DXO. Each entity forming part of DXS continues as a separate legal entity in its own right under the Corporations Act 2001 and is therefore required to comply with reporting and disclosure requirements under the Corporations Act 2001 and the Australian Accounting Standards.

DEXUS Funds Management Limited (DXFM) as Responsible Entity for each entity within DXS may only unstaple the Group if approval is obtained by a special resolution of the stapled security holders.

These general purpose interim Financial Statements for the half year ended 31 December 2012 have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

These Financial Statements do not include notes of the type normally included in an annual financial report. Accordingly these Financial Statements should be read in conjunction with the annual Financial Statements for the year ended 30 June 2012 and any public pronouncements made by DXS 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.

As at 31 December 2012, the Trust had a net current asset deficiency of $147.8 million (June 2012: $152.7 million). The DXS Group has in place both external and internal funding arrangements to support the cashflow requirements of the Trust. The Trust is a going concern and the Financial Statements have been prepared on that basis.

Critical accounting estimates

The preparation of Financial Statements requires the use of certain critical accounting estimates and management to exercise its judgment in the process of applying the Trust’s accounting policies. Other than the estimation of fair values relating to certain derivatives and other financial instruments and investment properties, no key assumptions concerning the future or other estimation of uncertainty at the end of each reporting period could have a significant risk of causing material adjustments to the Financial Statements in the next reporting period.

Page 8 of 17

DEXUS Office Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 2 Finance costs

Note 2 Finance costs
	31 Dec 2012 31 Dec 2011 $'000 $'000
Interest paid/payable Interest paid to related parties Amount capitalised Other finance costs Net fair value loss of interest rate swaps Total finance costs	- 3,835 29,520 8,097 - (1,264) - 300 1,175 28,319
	30,695 39,287

Note 3

Non-current assets – investment properties

Note 3 Non-current assets – investment properties
	For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 $'000 $'000
Opening balance at the beginning of the period Additions Lease incentives Amortisation of lease incentives Net fair value gain of investment properties Rent straightlining Foreign exchange differences on foreign currency translation Closing balance at the end of the period	3,132,600 3,026,959 9,937 44,088 14,846 22,595 (14,836) (29,216) 70,118 67,158 567 (338) 1,247 1,354
	3,214,479 3,132,600

Page 9 of 17

DEXUS Office Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 4

Non-current assets – investments accounted for using the equity method

Investments are accounted for in the Financial Statements using the equity method of accounting. Information relating to these entities is set out below:

Information relating to these entities is set out below:
31 Dec 2012 30 Jun 2012 Name of entity Principal activity % % Ownership Interest	31 Dec 2012 30 Jun 2012 $'000 $'000
Bent Street Trust Office property investment 33.3 33.3 DEXUS Creek Street Trust Office property investment 50.0 - DEXUS Martin Place Trust Office property investment 50.0 - Total non-current assets - investments accounted for using the equity method	231,571 217,043 127,663 - 749 -
	359,983 217,043

The above entities were formed in Australia.

Movements in carrying amounts of investments accounted for using the equity method	For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 $'000 $'000
Opening balance at the beginning of the period Units issued during the period Interest acquired during the period Share of net profit after tax1 Distributions received/receivable Closing balance at the end of theperiod	217,043 200,356 137,295 8,565 - 1,264 11,073 13,784 (5,428) (6,926)
	359,983 217,043

1 Share of net profit after tax includes a fair value gain of $4.7 million (June 2012: $7.5 million) in relation to the Trust’s share of the Bligh Street investment property.

Page 10 of 17

DEXUS Office Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 5

Loans with related parties

Note 5 Loans with related parties
	31 Dec 2012 30 Jun 2012 $'000 $'000
Current liabilities - loans with related parties Non-interest bearing loans with entities within DXS1 Total current liabilities - loans with related parties Non-current liabilities - loans with related parties Interest bearing loans with related parties2 Total non-current liabilities - loans with relatedparties	55,684 55,684
	55,684 55,684
	896,344 693,109
	896,344 693,109

1 Non-interest bearing loans with entities within DXS were created to effect the stapling of the Trust, DIT, DDF and DXO. These loan balances eliminate on consolidation within DXS.

2 Interest bearing loans with DEXUS Finance Pty Limited (DXF). These loan balances eliminate on consolidation within DXS.

Note 6

Contributed equity

(a) Contributed equity

	For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 $'000 $'000
Opening balance at the beginning of the period Capital payment Capital payment transaction costs Buy back of contributed equity Closing balance at the end of the period	1,863,965 2,063,214 - (174,979) - (79) (37,981) (24,191)
	1,825,984 1,863,965

(b) Number of units on issue

(b) Number of units on issue
	For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 No. of units No. of units
Opening balance at the beginning of the period Buy back of contributed equity Closing balance at the end of the period	4,783,817,657 4,839,024,176 (81,860,267) (55,206,519)
	4,701,957,390 4,783,817,657

Page 11 of 17

DEXUS Office Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 7

Distributions paid and payable

(a) Distribution to unitholders

(a) Distribution to unitholders
	31 Dec 2012 31 Dec 2011 $'000 $'000
31 December (payable 28 February 2013)	74,172 73,481
	74,172 73,481

(b) Distribution to non-controlling interests

(b) Distribution to non-controlling interests
	31 Dec 2012 31 Dec 2011 $'000 $'000
DEXUS RENTS Trust (paid 18 October 2011) DEXUS RENTS Trust (paid 17 January 2012)	- 3,223 - 3,101
	- 6,324

(c) Distribution rate

(c) Distribution rate
	31 Dec 2012 31 Dec 2011 Cents per unit Cents per unit
31 December (payable 28 February 2013) Total distributions	1.58 1.52 1.58 1.52

Page 12 of 17

DEXUS Office Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 8

Contingent liabilities

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

	31 Dec 2012 30 Jun 2012 $'000 $'000
Bank guarantees by the Trust in respect of variations and other financial risks associated with the development of: Bligh Street, Sydney, NSW1 Contingent liabilities in respect of developments	- 250
	- 250

1 Bank guarantee held in relation to an equity accounted investment.

DDF together with DIT, DOT and DXO is also a guarantor of a total of A$1,350.0 million and US$153.5 million (A$147.8 million) of bank bilateral facilities, a total of A$545.0 million of medium term notes, a total of US$130.0 million (A$125.2 million) of privately placed notes, and a total of US$374.5 million (A$359.7 million) public 144A senior notes, which have all been negotiated to finance the Group and other entities within DXS. The guarantees have been given in support of debt outstanding and drawn against these facilities, and may be called upon in the event that a borrowing entity has not complied with certain requirements such as failure to pay interest or repay a borrowing, whichever is earlier. During the period no guarantees were called.

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

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

Note 9

Events occurring after reporting date

On 17 January 2013, 40 Market Street, Melbourne, VIC was acquired for $46.7 million, excluding acquisition costs.

Since the end of the year, other than the matter disclosed above, the Directors 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 Trust, the results of those operations, or state of the Trust’s affairs in future financial periods.

Page 13 of 17

DEXUS Office Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 10

Operating segments

The Chief Operating Decision Maker (CODM) has been identified as the Board of Directors as they are responsible for the strategic decision making within the Group. DXS management has identified DXS’s operating segments based on the sectors analysed within the management reports reviewed by the CODM in order to monitor performance across the Group and to appropriately allocate resources. Refer to the table below for a brief description of the Group’s operating segments.

Office	This comprises office space with any associated retail space; as well as
	carparks and office developments in Australia and New Zealand.
Industrial	This comprises domestic industrial properties, industrial estates and
	industrial developments.
Property management	This comprises property management services for third party clients and
	owned assets.
Development and trading	This comprises revenue earned and costs incurred by the Group on
	developments and inventory.
Funds management	This comprises funds management of thirdpartyclient assets.
DXS asset management	This comprises asset management of assets owned bythe Group.
All other segments	This comprises corporate expenses associated with maintaining and
	operating the Group. This segment also includes the treasury function of
	the Groupwhich is managed through a centralised treasurydepartment.
Discontinued operations	This comprises industrial properties, industrial estates and industrial
	developments in the United States, as well as the European industrial
	portfolio.

Consistent with how the CODM manages the business, the operating segments within DXS are reviewed on a consolidated basis and are not monitored at an individual trust level. The results of the individual trusts are not limited to any one of the segments described above.

Disclosures concerning DXS’s operating segments, as well as the operating segments’ key financial information provided to the CODM, are presented in the DEXUS Property Group Financial Statements.

Page 14 of 17

DEXUS Office Trust Directors’ Declaration For the half year ended 31 December 2012

In the Directors’ opinion:

• (a) the Financial Statements and notes set out on pages 4 to 14 are in accordance with the Corporations Act 2001 , including:

• (i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the Trust’s financial position as at 31 December 2012 and of its performance for the half year ended on that date; and

• (b) there are reasonable grounds to believe that DEXUS Office Trust will be able to pay its debts as and when they become due and payable.

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

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Christopher T Beare Chair 13 February 2013

Page 15 of 17

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Independent auditor’s review report to the unitholders of DEXUS Office Trust

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of DEXUS Office Trust, which comprises the statement of financial position as at 31 December 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors’ declaration for the DEXUS Office Trust Group (the consolidated entity). The consolidated entity comprises both DEXUS Office Trust (the Trust) and the entities it controlled during that half-year.

Directors’ responsibility for the half-year financial report

The directors of DEXUS Funds Management Limited (the Responsible Entity) are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error.

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 a 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 2012 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 DEXUS 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-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. 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.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Liability limited by a scheme approved under Professional Standards Legislation.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

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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 DEXUS 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 2012 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

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PricewaterhouseCoopers

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EA Baron Partner

Sydney 13 February 2013

DEXUS Operations Trust (ARSN 110 521 223)

Interim Report 31 December 2012

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Contents Page
Directors’ Report ............................................................................................ 1
Auditor’s Independence Declaration ..................................................................... 3
Consolidated Statement of Comprehensive Income ................................................... 4
Consolidated Statement of Financial Position .......................................................... 5
Consolidated Statement of Changes in Equity .......................................................... 6
Consolidated Statement of Cash Flows .................................................................. 7
Notes to the Financial Statements........................................................................ 8
Directors’ Declaration ..................................................................................... 18
Independent Auditor’s Review Report .................................................................. 19

DEXUS Property Group (DXS) (ASX Code: DXS) consists of DEXUS Diversified Trust (DDF), DEXUS Industrial Trust (DIT), DEXUS Office Trust (DOT) and DEXUS Operations Trust (DXO), collectively known as DXS or the Group.

Under Australian Accounting Standards, DDF has been deemed the parent entity for accounting purposes. Therefore the DDF consolidated Financial Statements include all entities forming part of DXS. The DDF consolidated Financial Statements are presented in separate Financial Statements.

All press releases, Financial Statements and other information are available on our website: www.dexus.com

DEXUS Operations Trust Directors' Report For the half year ended 31 December 2012

The Directors of DEXUS Funds Management Limited (DXFM) as Responsible Entity of DEXUS Operations Trust present their Directors’ Report together with the consolidated Financial Statements for the half year ended 31 December 2012. The consolidated Financial Statements represents DEXUS Operations Trust and its consolidated entities (DXO or the Trust).

The Trust together with DEXUS Diversified Trust (DDF), DEXUS Industrial Trust (DIT) and DEXUS Office Trust (DOT) form the DEXUS Property Group (DXS or the Group) stapled security.

1 Directors

The following persons were Directors of DXFM at all times during the half year and to the date of this Directors’ Report, unless otherwise stated:

Directors	Appointed
Christopher T Beare	4 August 2004
Elizabeth A Alexander, AM	1 January 2005
Barry R Brownjohn	1 January 2005
John C Conde, AO	29 April 2009
Tonianne Dwyer	24 August 2011
Stewart F Ewen, OAM	4 August 2004
W Richard Sheppard	1 January 2012
Darren J Steinberg	1 March 2012
Peter B St George	29 April 2009

2 Review of results and operations

The results for the half year ended 31 December 2012 were:

• profit attributable to unitholders was $3.6 million (December 2011: $2.5 million loss);

• total assets were $744.7 million (June 2012: $631.5 million); and

• net assets were $124.4 million (June 2012: $122.7 million).

A review of the results, financial position and operations of the Group, of which the Trust forms part thereof, is set out in the Directors’ Report of the DEXUS Property Group Interim Report.

3 Auditor’s independence declaration

A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on page 3 and forms part of this Directors’ Report.

4 Rounding of amounts and currency

The Trust is a registered scheme of the kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to the rounding off of amounts in this Directors’ Report and the Financial Statements. Amounts in this 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.

Page 1 of 20

DEXUS Operations Trust Directors' Report (continued) For the half year ended 31 December 2012

5 Directors’ authorisation

The Directors’ Report is made in accordance with a resolution of the Directors. The Financial Statements were authorised for issue by the Directors on 13 February 2013. The Directors have the power to amend and reissue the Financial Statements.

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Christopher T Beare Chair 13 February 2013

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Darren J Steinberg Chief Executive Officer 13 February 2013

Page 2 of 20

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Auditor’s Independence Declaration

As lead auditor for the review of DEXUS Operations Trust for the half year ended 31 December 2012, 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 DEXUS Operations Trust and the entities it controlled during the period.

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EA Barron Partner PricewaterhouseCoopers

Sydney 13 February 2013

Liability limited by a scheme approved under Professional Standards Legislation.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

DEXUS Operations Trust Consolidated Statement of Comprehensive Income For the half year ended 31 December 2012

Note	31 Dec 2012 31 Dec 2011 $'000 $'000
Revenue from ordinary activities Management fee revenue 2 Property revenue Proceeds from sale of inventory Interest revenue Total revenue from ordinary activities Net fair value gain of investment properties Net foreign exchange gain Other income Total income Expenses Property expenses Cost of sale of inventory Finance costs 3 Net loss on sale of investment properties Depreciation and amortisation Impairment of inventory Impairment of goodwill Net foreign exchange loss Employee benefits expense Other expenses Total expenses Profit/(loss) before tax Tax benefit Income tax benefit Total tax benefit Profit/(loss) after tax from continuing operations Loss from discontinued operations 6 Net profit/(loss) for the period Exchange differences on translating foreign operations Total comprehensive income/(loss) for theperiod	39,728 41,527 10,721 7,074 15,664 21,830 391 440
	66,504 70,871 1,924 4,455 - 30 11 -
	68,439 75,356
	(3,085) (2,525) (14,792) (19,110) (7,909) (13,687) (728) - (1,284) (1,231) - (2,014) (50) (563) (3) - (30,274) (34,050) (5,122) (6,589)
	(63,247) (79,769)
	5,192 (4,413)
	12 1,947
	12 1,947
	5,204 (2,466)
	(1,575) -
	3,629 (2,466)
	(32) -
	3,597 (2,466)
Earnings per unit	Cents Cents
Basic earnings per unit on profit/(loss) attributable to unitholders of the parent entity Diluted earnings per unit on profit/(loss) attributable to unitholders of the parent entity	0.06 0.03 0.06 0.03

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Page 4 of 20

DEXUS Operations Trust Consolidated Statement of Financial Position As at 31 December 2012

Note	31 Dec 2012 30 Jun 2012 $'000 $'000
Current assets Cash and cash equivalents 4 Receivables Inventories 5 Discontinued operations and assets classified as held for sale 6 Other Total current assets Non-current assets Investment properties 7 Plant and equipment Inventories 5 Deferred tax assets Intangible assets 8 Other Total non-current assets Total assets Current liabilities Payables Loans with related parties 9 Provisions Discontinued operations classified as held for sale 6 Total current liabilities Non-current liabilities Loans with related parties 9 Provisions Deferred tax liabilities Derivative financial instruments Other Total non-current liabilities Total liabilities Net assets Equity Contributed equity 10 Reserves Accumulated losses Total equity	13,405 13,082 29,754 19,823 10,131 26,841 109,017 93,700 1,132 759
	163,439 154,205 156,151 141,151 4,354 4,678 161,240 70,990 36,043 36,729 223,427 223,641 7 66
	581,222 477,255
	744,661 631,460
	15,693 11,065 48,932 48,932 16,171 22,324 59,739 -
	140,535 82,321 462,376 402,409 10,684 16,351 3,214 3,913 3,341 3,772 133 -
	479,748 426,445
	620,283 508,766
	124,378 122,694
	197,775 199,712 42,743 42,751 (116,140) (119,769)
	124,378 122,694

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

Page 5 of 20

DEXUS Operations Trust Consolidated Statement of Changes in Equity

For the half year ended 31 December 2012

Note	Contributed equity Foreign currency translation reserve Asset revaluation reserve Security- based payments reserve Accumulated losses Total equity $'000 $'000 $'000 $'000 $'000 $'000
Opening balance as at 1 July 2011 Loss after tax Transactions with owners in their capacity as owners: Capital contribution, net of transaction costs 10 Closingbalance as at 31 December 2011 Other comprehensive income for the year	26,335 - 42,738 - (90,616) (21,543) - - - - (2,466) (2,466) - - - - - - 174,909 - - - - 174,909
	201,244 - 42,738 - (93,082) 150,900
Opening balance as at 1 July 2012 Profit after tax Transactions with owners in their capacity as owners: Buy back of contributed equity, net of transaction costs 10 Security-based payments expense Closing balance as at 31 December 2012 Other comprehensive loss for the year	199,712 - 42,738 13 (119,769) 122,694 - - - - 3,629 3,629 - (32) - - - (32) (1,937) - - - - (1,937) - - - 24 - 24
	197,775 (32) 42,738 37 (116,140) 124,378

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Page 6 of 20

DEXUS Operations Trust Consolidated Statement of Cash Flows

For the half year ended 31 December 2012

Note	31 Dec 2012 31 Dec 2011 $'000 $'000
Cash flows from operating activities Receipts in the course of operations (inclusive of GST) Payments in the course of operations (inclusive of GST) Proceeds from sale of property classified as inventory Payments for property classified as inventory Interest received Finance costs paid Net cash outflow from operating activities Cash flows from investing activities Proceeds from the sale of investment properties Payments for the acquisition of investment properties Payments for capital expenditure on investment properties Acquisition of subsidiaries net of cash acquired Payments for plant and equipment Net cash outflow from investing activities Cash flows from financing activities Borrowings provided to entities within DXS Borrowings provided by entities within DXS Proceeds from capital contribution Capital contribution transaction costs Payments for buy back of contributed equity Net cash inflow from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the end of theperiod 4	42,852 54,967 (51,304) (52,178) 15,664 21,830 (86,606) (24,023) 399 438 (722) (1,240)
	(79,717) (206)
	57,353 - (55,855) - (21,125) (20,427) 5,239 - (796) (860)
	(15,184) (21,287)
	(110,921) (260,051) 213,463 106,979 - 174,979 - (70) (1,937) -
	100,605 21,837
	5,704 344 13,082 13,228 (25) -
	18,761 13,572

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Page 7 of 20

DEXUS Operations Trust Notes to the Financial Statements For the half year ended 31 December 2012

Note 1

Summary of significant accounting policies

(a) Basis of preparation

DEXUS Property Group stapled securities are quoted on the Australian Securities Exchange under the “DXS” code and comprise one unit in each of DDF, DIT, DOT and DXO. Each entity forming part of DXS continues as a separate legal entity in its own right under the Corporations Act 2001 and is therefore required to comply with reporting and disclosure requirements under the Corporations Act 2001 and Australian Accounting Standards.

DEXUS Funds Management Limited as Responsible Entity for DDF, DIT, DOT and DXO may only unstaple the Group if approval is obtained by a special resolution of the stapled security holders.

These general purpose interim Financial Statements for the half year ended 31 December 2012 have been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 .

These Financial Statements do not include notes of the type normally included in an annual financial report. Accordingly these Financial Statements should be read in conjunction with the annual Financial Statements for the year ended 30 June 2012 and any public pronouncements made by DXS 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) Critical accounting estimates

The preparation of Financial Statements requires the use of certain critical accounting estimates and management to exercise its judgment in the process of applying the Trust’s accounting policies. Other than the estimation of fair values relating to certain derivatives and other financial instruments, investment properties, intangible assets and security-based payments, no key assumptions concerning the future or other estimation of uncertainty at the end of each reporting period could have a significant risk of causing material adjustments to the Financial Statements in the next reporting period.

Page 8 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 2

Management Fee Revenue

Note 2 Management Fee Revenue
	31 Dec 2012 31 Dec 2011 $'000 $'000
Responsible Entity fees Asset management fees Property management fees Capital works and development fees Wages recovery and other fees Total management fee revenue	19,613 18,471 3,025 5,004 12,654 11,559 391 2,407 4,045 4,086
	39,728 41,527

Note 3

Finance costs

Note 3 Finance costs
	31 Dec 2012 31 Dec 2011 $'000 $'000
Interest paid to related parties Amount capitalised Net fair value loss of interest rate swaps Other finance costs Total finance costs	(13,547) (21,181) 5,930 9,196 (281) (1,693) (11) (9)
	(7,909) (13,687)

The average capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 7.00% (2012: 7.99%)

Note 4

Current assets – cash and cash equivalents

Note 4 Current assets – cash and cash equivalents
	31 Dec 2012 30 Jun 2012
	$'000 $'000
Cash at bank Short-term deposits Total current assets - cash and cash equivalents	3,405 3,082 10,000 10,000
	13,405 13,082

Reconciliation to cash at the end of the period

The above figures are reconciled to cash as shown in the Statement of Cash Flows as follows:

Note	31 Dec 2012 30 Jun 2012 $'000 $'000
Balances as above Discontinued operations 6 Balancesper Statement of Cash Flows	13,405 13,082 5,356 -
	18,761 13,082

Page 9 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 5

Inventories

(a) Land and properties held for resale

	31 Dec 2012 30 Jun 2012 $'000 $'000
Current assets Land and properties held for resale Total current assets - inventories Non-current assets Land and properties held for resale Total non-current assets - inventories Total assets - inventories	10,131 26,841
	10,131 26,841
	161,240 70,990
	161,240 70,990
	171,371 97,831

(b) Reconciliation

(b) Reconciliation	(b) Reconciliation
For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 Note $'000 $'000
Opening balance at the beginning of the period Transfer to investment properties 7 Disposals Impairment Acquisitions, additions and other Closing balance at the end of the period	97,831 112,238 - (7,035) (14,792) (43,998) - (14,846) 88,332 51,472
	171,371 97,831

Acquisition

• On 30 November 2012, 50 Carrington Street, Sydney, NSW was acquired for $58.5 million, excluding acquisition costs.

Disposals

• On 2 October 2012, 50% of Boundary Road, Laverton, VIC - Fastline was disposed of for gross proceeds of $8.0 million.

• During the half year ended 31 December 2012, three lots located at Boundary Road, Laverton, VIC were disposed of for gross proceeds of $7.7 million.

Page 10 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 6

Assets classified as held for sale and discontinued operations

A strategic review was announced to the ASX on 16 August 2012, which resulted in all offshore property being considered non-core. On 20 December 2012, DXS announced the sale of the majority of the remaining US industrial portfolio and therefore the US industrial portfolio has been classified as a discontinued operation at 31 December 2012.

One property, 3550 Tyburn Street & 3332-3424 North San Fernando Road, Los Angeles (known as “Glendale”) was excluded from the sales process in order to ensure that the property is sold at fair value. Glendale was acquired by DXO as part of the process to exclude the property from the portfolio sale. The property is classified as a discontinued operation as it is expected the property will be sold within 12 months.

In addition to the residual assets and liabilities classified as held for sale in the US industrial portfolio, certain other investment properties are also included as assets classified as held for sale at 31 December 2012.

The table below sets out the financial performance and cash flow information for discontinued operations.

	31 Dec 2012 31 Dec 2011 $'000 $'000
Property revenue Management fee revenue Net fair value loss of investment properties Net fair value gain of investments Net foreign exchange loss Property expenses Employee benefits expense Finance costs Other expenses Loss before tax Total tax expense Loss after tax Loss on measurement to fair value less costs to sell before tax Loss on measurement to fair value less costs to sell after tax Loss from discontinued operations Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net increase in cashgenerated by discontinued operations	172 - 292 - (2,390) - 3,929 - (1) - (55) - (2,259) - (64) - (61) -
	(437) -
	- -
	(437) -
	(1,138) -
	(1,138) -
	(1,575) -
	(55) - (50,232) - 55,668 -
	5,381 -

Page 11 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 6

Assets classified as held for sale and discontinued operations (continued)

The table below sets out the assets classified as held for sale and discontinued operations that continue to be owned by the Trust as at balance date. These assets and liabilities are presented as aggregate amounts in the Statement of Financial Position.

	Discontinued operations1 Assets held for sale2 Total 31 Dec 2012 Total 30 Jun 2012 $'000 $'000 $'000 $'000
Assets classified as held for sale Cash and cash equivalents Receivables Other assets Investment properties Total assets classified as held for sale Liabilities classified as held for sale Payables Provisions Loans with related parties Other liabilities Total liabilities classified as held for sale	5,356 - 5,356 - 401 - 401 - 74 - 74 - 52,301 50,885 103,186 93,700
	58,132 50,885 109,017 93,700
	1,261 - 1,261 - 2,557 - 2,557 - 55,668 - 55,668 - 253 - 253 -
	59,739 - 59,739 -

1 Includes the United States operations.

2 Includes certain assets at Quarry Greystanes, NSW whose value will be recovered through sale rather than through continuing use.

Disposals

 On 2 October 2012, 50% of an industrial portfolio consisting of assets at Quarry Greystanes NSW was disposed of for gross proceeds of $57.7 million.

Page 12 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 7

Non-current assets – investment properties

For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 Note $'000 $'000	For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 Note $'000 $'000
Opening balance at the beginning of the period Additions Lease incentives Lease incentives amortisation Rent straightlining Transfer to assets held for sale and discontinued operations Transfers from inventories 5 Net fair value gain/(loss) of investment properties Closing balance at the end of the period	141,151 192,306 23,127 60,782 1,679 895 (191) (254) 399 1,405 (14,989) (93,700) - 7,035 4,975 (27,318)
	156,151 141,151

Page 13 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 8

Non-current assets - intangible assets

Note 8 Non-current assets - intangible assets
	For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 $'000 $'000
Management rights Opening balance at the beginning of the period Amortisation charge Closing balance at the end of the period Cost Accumulated amortisation Accumulated impairment Total management rights Goodwill Opening balance at the beginning of the period Impairment Closing balance at the end of the period Cost Accumulated impairment Total goodwill Total intangible assets	221,935 222,353 (164) (418)
	221,771 221,935
	252,382 252,382 (2,808) (2,644) (27,803) (27,803)
	221,771 221,935
	1,706 2,331 (50) (625)
	1,656 1,706
	2,998 2,998 (1,342) (1,292)
	1,656 1,706
	223,427 223,641

Management rights represent the asset management rights owned by DEXUS Holdings Pty Limited (DXH), a whollyowned subsidiary of the Trust, which entitle it to management fee revenue from both finite life trusts and indefinite life trusts. Those rights that are deemed to have a finite useful life (held at a value of $5,522,326) are measured at cost and amortised using the straight-line method over their estimated useful lives of 20 years. Management rights that are deemed to have an indefinite life are held at a value of $216,248,492.

As at 31 December 2012, management had not identified any events or circumstances that would indicate an impairment of the carrying value of management rights associated with indefinite life trusts.

Note 9

Loans with related parties

Note 9 Loans with related parties
	31 Dec 2012 30 Jun 2012 $'000 $'000
Current liabilities - loans with related parties Non-interest bearing loans with entities within DXS1 Total current liabilities - loans with related parties Non-current liabilities - loans with related parties Interest bearing loans with related parties2 Total non-current liabilities - loans with relatedparties	48,932 48,932
	48,932 48,932
	462,376 402,409
	462,376 402,409

1 Non-interest bearing loans with entities within DXS were created to effect the stapling of the Trust, DIT, DOT and DDF. These loan balances eliminate on consolidation within DXS.

2 Interest bearing loans with DEXUS Finance Pty Limited (DXF). These loan balances eliminate on consolidation within DXS.

Page 14 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 10 Contributed equity

(a) Contributed equity

(a) Contributed equity
	For the 6 months to For the 12 months to 31 Dec 2012 30 Jun 2012 $'000 $'000
Opening balance at the beginning of the period Capital contribution Capital contribution transaction costs Buy back of contributed equity Closing balance at the end of the period	199,712 26,335 - 174,979 - (78) (1,937) (1,524)
	197,775 199,712

(b) Number of units on issue

(b) Number of units on issue
	For the 6 months to For the 12 months to 31 Dec 2011 30 Jun 2012 No. of units No. of units
Opening balance at the beginning of the period Buy back of contributed equity Closing balance at the end of the period	4,783,817,657 4,839,024,176 (81,860,267) (55,206,519)
	4,701,957,390 4,783,817,657

Note 11

Distributions paid and payable

Dividends paid or payable by the Trust for the half year ended 31 December 2012 were nil (31 December 2011: nil).

Page 15 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 12 Contingent liabilities

Note 12 Contingent liabilities
	31 Dec 2012 30 Jun 2012 $'000 $'000
Bank guarantees by the Trust in respect of variations and other financial risks associated with the development of: Boundary Road, Laverton , VIC - Stage 2 57-75 Templar Rd, Erskine Park Reconciliation Road, Greystanes Contingent liabilities in respect of developments	532 368 100 - 198 -
	830 368

The Trust together with DDF, DIT and DOT is a guarantor of a total of A$1,3950.0 million and US$153.5 million (A$147.8 million) of bank bilateral facilities, a total of A$545.0 million of medium term notes, a total of US$130.0 million (A$125.2 million) of privately placed notes, and a total of US$374.5 million (A$359.7 million) public 144A senior notes, which have all been negotiated to finance the Trust and other entities within DXS. The guarantees have been given in support of debt outstanding and drawn against these facilities, and may be called upon in the event that a borrowing entity has not complied with certain requirements such as failure to pay interest or repay a borrowing, whichever is earlier. During the period no guarantees were called.

The guarantees are issued in respect of the Trust and do not constitute an additional liability to those already existing in interest bearing liabilities on the Statement of Financial Position.

The Directors of the Responsible Entity are not aware of any other contingent liabilities in relation to the Trust, other than those disclosed in the Financial Statements, which should be brought to the attention of unitholders as at the day of completion of this report.

Note 13

Events occurring after the reporting date

On 15 January 2013, lot 13 at Boundary Road, Laverton, VIC was disposed of for gross proceeds of $1.7 million.

On 17 January 2013, 40 Market Street, Melbourne, VIC was acquired for $46.7 million, excluding acquisition costs.

On 1 February 2013, the sale of Quarry Greystanes, NSW – Camerons Transport was settled for gross proceeds of $14.9 million.

Since the end of the period, other than the matters disclosed above, the Directors 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 Trust, the results of those operations, or state of the Trust’s affairs in future financial periods.

Page 16 of 20

DEXUS Operations Trust Notes to the Financial Statements (continued) For the half year ended 31 December 2012

Note 14

Operating segments

The Chief Operating Decision Maker (CODM) has been identified as the Board of Directors as they are responsible for the strategic decision making within the Group. DXS management has identified DXS’s operating segments based on the sectors analysed within the management reports reviewed by the CODM in order to monitor performance across the Group and to appropriately allocate resources. Refer to the table below for a brief description of the Group’s operating segments.

Office	This comprises office space with any associated retail space; as well as car
	parks and office developments in Australia and New Zealand.
Industrial	This comprises domestic industrial properties, industrial estates and
	industrial developments.
Property management	This comprises property management services for third party clients and
	owned assets.
Development and trading	This comprises revenue earned and costs incurred by the Group on
	developments and inventory.
Funds management	This comprises funds management of thirdpartyclient assets.
DXS asset management	This comprises asset management of assets owned bythe Group.
All other segments	This comprises corporate expenses associated with maintaining and
	operating the Group. This segment also includes the treasury function of
	the Groupwhich is managed through a centralised treasurydepartment.
Discontinued operations	This comprises industrial properties, industrial estates and industrial
	developments in the United States, as well as the European industrial
	portfolio.

Consistent with how the CODM manages the business, the operating segments within DXS are reviewed on a consolidated basis and are not monitored at an individual trust level. The results of the individual trusts are not limited to any one of the segments described above.

Disclosures concerning DXS’s operating segments as well as the operating segments’ key financial information provided to the CODM are presented in the DEXUS Property Group Financial Statements.

Page 17 of 20

DEXUS Operations Trust Directors’ Declaration For the half year ended 31 December 2012

In the Directors’ opinion:

• (a) the Financial Statements and notes set out on pages 4 to 17 are in accordance with the Corporations Act 2001 , including

• (i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (ii) giving a true and fair view of the Trust’s financial position as at 31 December 2012 and of its performance for the half year ended on that date; and

• (b) there are reasonable grounds to believe that DEXUS Operations Trust will be able to pay its debts as and when they become due and payable.

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

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Christopher T Beare Chair 13 February 2013

Page 18 of 20

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Independent auditor’s review report to the unitholders of DEXUS Operations Trust

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of DEXUS Operations Trust, which comprises the statement of financial position as at 31 December 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors’ declaration for the DEXUS Operations Trust Group (the consolidated entity). The consolidated entity comprises both DEXUS Operations Trust (the Trust) and the entities it controlled during that half-year.

Directors’ responsibility for the half-year financial report

The directors of DEXUS Funds Management Limited (the Responsible Entity) are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error.

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 a 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 2012 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 DEXUS 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-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. 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.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

Liability limited by a scheme approved under Professional Standards Legislation.

PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

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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 DEXUS 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 2012 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

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PricewaterhouseCoopers

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EA Baron Partner

Sydney 13 February 2013