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DEXUS Investor Presentation 2005
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Investor Presentation
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DB RREEF Trust
Managed in partnership with Deutsche Bank ${\bf Z}$
DB RREEF Funds Management Limited ABN 24 060 920 783 Australian Financial Services Licence Holder
Level 23 333 Collins Street Melbourne Vic 3000
PO Box R1822 Royal Exchange NSW 1225
Telephone 61 3 9270 4141 Direct 61 3 9270 4419 Facsimile 61 3 9270 4411
Email: [email protected]
28 February 2005
The Manager Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000
Dear Sir / Madam
DB RREEF Trust (ASX: DRT) Investor presentation for the half year ending 31 December 2004
DB RREEF Funds Management Limited, as responsible entity for DB RREEF Trust (DRT), is pleased to confirm that it has lodged the following document with the Australian Stock Exchange today:
Investor Presentation - DB RREEF Trust - December 2004 Interim Results $\bullet$
For further information, please contact Tony Dixon on (02) 9249 9040 (Institutional) or Karol O'Reilly on (02) 9249 9839 (Retail) or for media inquiries Kristin Silva on (02) 9249 9568.
Yours faithfully,
lan Thompson
Company Secretary
Att.
Presented by Victor Hoog Antink CEO, DB RREEF Funds Management Limited 28 February 2005
Managed in partnership with Deutsche Bank 23
OVERVIEW
- Highlights 像。
- t. December 2004 Results
-
- DRT
- Third Party Funds Management 4.
- ya
K Board - Management €.
- aniya
Sarajaya Future Direction & Strategy - 參 Annexures
- Important Information 9.
1 Farrer Place, Sydney
DB RREEF
Managed in partnership with Deutsche Bank $Z$
HIGHLIGHTS 1
- EPS / DPS on target with Explanatory Memorandum forecasts
- Net income before capital items \$137.2m
- Distribution to investors \$136.5m
- $-$ FPS 5.23 cents
- $-$ DPS 5.20 cents
- Confirm FY05 forecast distribution 10.50 cps
- Restructure initiatives on track 穖
- Asset sales and acquisitions progressing
- Refinancing of debt facilities undertaken
- Board composition complete 纝
- Management platform implemented 獵
- Client: service provider focus
- Stabilised business platform for future growth 獵
DECEMBER 2004 RESULTS
$\mathbb{Z}$
Managed in partnership with Deutsche Bank $\boxdot$
DECEMBER 2004 RESULTS $\boldsymbol{\mathcal{P}}$
| Statutory Accounts |
riyar de fêz Gundên S Forecasts |
Actual - Grouped 1 |
||
|---|---|---|---|---|
| \$98.1 | Net Profit before capital items $(Sm)^2$ | \$134.2 | \$137.2 | |
| 5.94 | Earnings per security (cps) | 5.16 | 5.23 | |
| 5.20 | Distribution per security (cps) | 5.20 | 5.20 | |
| \$74.4 | Net Profit Attributable to Security holders (\$m) 3 | \$115.4 | \$117.3 | |
| 4.51 | Earnings Per Security (cps) | A, AA | 4,48 |
*The "actual grouped" figures reflect the aggregation of the four Trusts for the initial period to 31 December 2004. This accounting treatment is consistent with the disclosures as outlined in the EM and represent the summation of the results for the four frusts comprising the stapled entity. It should be noted that investors in DRT have been entitled to the returns of the underlying Trusts from 1 July 2004.
For statutory reporting purposes, DB RREEF Diversified Trust (DDF) has been deemed as the head entity. Accordingly, the other three listed entaies comprising DB RREEF Office Trust (DOT), DB RREEF Industrial Trust (CAT) and DB RREEF Operations Trust (DRO) are consolidated as subsidiary entities for accounting purposes. The financial statements reflect su months of DDF results and finree months of DOT, DIT and DRO results. The earnings per stapled security per the 31 December 2004 accounts is 4.51cents (based on the weighted number of securities on issue for DDF from 1.7.04 to 31.12.04). This is calculated based on the reported net profit after capital items.
2 Capital items comprise net profit from asset sales and costs associated with the restructure.
.
I Net Profit Attributable to Sexurity Holders reflects the writing off of transaction costs and includes capital profits.
DECEMBER 2004 RESULTS $\overline{2}$
Profit & Loss Statement
| Consolidated Dec 04 |
$AUD$ (\$000s) | EM Dec 04 |
Grouped Dec 04 |
¥. |
|---|---|---|---|---|
| 149,660 | Total Income | 215,920 | 213,441 | |
| (7,501) | Responsible Entity Fees & Other Expenses |
(15,058) | (14, 104) | |
| (40, 975) | Borrowing Costs | (63, 734) | (59,051) | |
| 101,184 | Income after Interest & Expenses | 137,128 | 140.286 | $\ll \mathbb{Z}^n$ |
| (788) | Tax | (830) | (788) | |
| (2,313) | Outside Equity Interest | (2,069) | (2,313) | |
| 98,083 | Net Income Before Capital Items | 134,229 | 137,185 | ÷ ZX |
| 19,570 | Profit on Sale of Assets | 21,712 | 19,570 | |
| (43, 296) | Transaction Costs | (40, 506) | (43, 296) | |
| ennemmenn | Increment on Valuation of Investment Properties |
3,7951 | ||
| 74.357 | Net Income After Capital Items | 115,435 | 117,254 | ÷ 2% |
1 Reversal of prior amounts written off in DIT
Managed in partnership with Deutsche Bank $\boxdot$
DECEMBER 2004 RESULTS $\mathbf{2}$
DRT Net Sector Incorne - Analysed
| SOOG | EM Dec 04 |
Grouped Dec 04 |
|---|---|---|
| Commercial Portfolio | 107,450 | 109,371 |
| Industrial Portfolio | 52,641 | 52,439 |
| Retail Portfolio | 21,665 | 20,614 |
| US Industrial Portfolio | 27,346 | 27,141 |
| Total Sector Income | 209,102 | 209,565 |
| 144 Edward St Impact (Sold Nov 04) | 1,752 | 1,179 |
| Income from DRO | 1,807 | 1,947 |
| Other Income | 823 | 750 |
| Total Income excl Income Support | 213,484 | 213,441 |
| US Income Support | 2,436 | |
| Total Income | 215,920 | 213,441 |
$\overline{2}$ DECEMBER 2004 RESULTS
DRT Balance Sheet
| AUD \$'000 | ||
|---|---|---|
| Cash | 56,250 | |
| Investment properties (including equity accounted) | 6,328,036 | |
| Other equity accounted investments, receivables & other | 125,941 | |
| Total assets | 6,510,227 | |
| Payables, provisions & other | 266,415 | Gearing 44% |
| Interest bearing liabilities | 2,924,228 | 88 Net equity \$3.20bn |
| Total liabilities | 3,190,643 | Securities on Issue |
| Net assets | 3,319,584 | 2.63bn |
| Contributed equity | 2,958,202 | * NTA per security |
| Reserves | 234,443 | \$1.22 |
| Undistributed income | 10.890 | |
| Outside equity interests | 116,049 | |
| Fetal equity | 3,319,584 | |
| Wet equity attributable to security holders | 3, 203, 535 |
$3.1$ DRT - PORTFOLIO Asset Diversification
| AS 15 RTDE-025 |
8100 | 74 | Okal Entsy 74 |
LV: Reference THE |
|---|---|---|---|---|
| Commercial | 31 | 马奎 | 92.3 | 5.9 |
| Industrial | 生气 | 21 | 98.1 | 4.1 |
| US Industrial 1 | 1 1 | 17 | 87.4 | 34 |
| Retail | 0.6 | 傳票 | 99.5 | 6.0 |
| TOTAL | 61 | 188 |
1 represents 80% ownership of US industrial portfolio
$2$ by area
$3$ by income
DRT - PORTFOLIO $3.1$
Transactions Completed
Transactions totalling \$476m during the period delivered profits on sale of \$19.6m
| KANA | SENCE | SIII | DAL SID | |
|---|---|---|---|---|
| 鐖 | Whitford City, WA (50%) | Aug 04 | \$192.5 | \$15.0 |
| 鐖 | Plenty Valley, Vic (50%) | Aug 04 | \$19.0 | \$1.3 |
| 鐖 | Axxess Corporate Park, Seven Hills, NSW | Oct 04 | \$16.6 | S(0.2) |
| 鐖 | McDowell St, Welshpool, WA | Nov 04 | 54.2 | S(0,1) |
| 鐖 | 144 Edward Street, Brisbane, Qld | Nov 04 | \$44.7 | \$3.4 |
| 纝 | Redwood Gardens, Dingley, Vic (part) | Nov 04 | \$5.5 | SO.2 |
| VACUELLORS | SSHIPH | 511 | Capital | |
| 鐖 | North Lakes, Qld (50%) | Aug 04 | \$60.8 | 7.25% |
| ▓ | Mt Druitt, NSW (50%) | Sept 04 | \$132.5 | 7.25% |
DRT - PORTFOLIO $3.1$
Transactions On-going
Sais
- Rothschild Ave, Rosebery, NSW Y
- 1 Chifley Square, Sydney, NSW ngga
Tidak - West Lakes, SA (50%) 1
Acquisitions
- 16-20 Barrack Street, NSW ▒
- Hurstville Shopping Centre, NSW (50%) ngga
Tilod - Lumley Centre, Auckland ng ang
| Sm | Satilanen Staus |
|---|---|
| \$22.0 | $Feh$ $05$ |
| \$54.0 | Due March 05 |
| \$122.5 | Due April 05 |
| Sm | Saulanan Staur |
| \$44.5 | Feb 05 |
| \$220.0 (est) | Due April 05 |
| SNZ110.4 | Due June 05 |
Managed in partnership with Deutsche Bank $\boxdot$
DRT - PORTFOLIO $3.1$
Valuations
| Property | Date | Cap Rate % | Valuation | Revaluation |
|---|---|---|---|---|
| New / Old | $\mathbb{S}\mathfrak{m}$ | \$m | ||
| GPT/GMT Complex, Sydney, NSW* | Dec 04 | 7.0 / 7.0 | 512.5 | 24.1 |
| Whitford City, Hilarys, WA** | Aug 04 | 7.13/7.5 | 192.5 | 15.0 |
| 201 Elizabeth St, Sydney, NSW * | Dec 04 | 7.25 / 7.25 | 117.0 | (0.4) |
| O'Connell St, Bligh St & Bent St, Sydney, NSW |
Sept 04 | 7.9/7.9 | 91.3 | 3.4 |
| 436 Gladesville Rd, Gladesville, NSW | Dec 04 | 8.5 / 8.75 | 43.0 | 1.7 |
| 1 Foundation Place, Greystanes, NSW | Dec 04 | 8.0 /N/A | 41.7 | 3.1 |
| 2 Minna Close, Belrose, NSW | Dec 04 | 8.5 / 9.0 | 32.4 | 3.1 |
| Plenty Valley Town Centre, Vic** | Aug 04 | 7.75 / 7.75 | 19.0 | 1.3 |
| 1 Garigat Rd, Betrose, NSW | Dec 04 | 8.5 / 8.7 | 27.4 | 2.7 |
| 121 Evans Rd, Satisbury, QLD | Dec 04 | 8.75 / 9.5 | 18.5 | 3.8 |
| kotal. | 1,095.3 | 57.8 |
* 50% ownership
** Directors' valuation
Page: 14
3.2 DRT - COMMERCIAL
| Earnings (\$000s) | EM Dec 04 |
Grouped Dec 04 |
Actual Dec 03 |
|---|---|---|---|
| Net Property Income | 107,450 | 109.371 | 97,189 |
| 144 Edward St Impact (Sold Nov 04) | 1.752 | -1.179 | 1,801 |
| Net Sector Incurne | 109,202 | 110,550 | 98.990 |
DRT - COMMERCIAL $3.2$
- Portfolio income up 12% over Dec 03
- Portfolio quality enhanced
- 45 Clarence Street, Sydney refurbishment completed
- Lumley Centre, Auckland scheduled for completion in $\ln$ ne $05$
- Leasing
- Over 70,000 sqm of new leasing, renewals and heads of agreement
- 13% of the portfolio by area
- Based on agreements in place, occupancy is 92.3% (91.0% at June 04)
- Strong lease profile of 5.9 years by income (5.6 years at $June O4)$
45 Clarence Street, Sydney
DRT - COMMERCIAL $3.2$ Leasing Update
Significant leasing transactions ng
Ma
| Property | Area (sqm) | Major Tenant | Term (yrs) |
|---|---|---|---|
| 45 Clarence Street, Sydney | 12,055 | $\bullet$ Hudson Global (6,811) | 7.0 |
| $\bullet$ HBOS Australia (5,244) | 8.0 | ||
| 130 George St. Parramatta | 7,200 | · NSW Police | 5.0 |
| Australia Square, Sydney | 6,121 | ® Various | 6.1 |
| 383 Kent Street, Sydney | 3,589 | • Custom Call | 5.0 |
| Lunley Centre, Auckland | 3,230 | ELunley General Insur. | 10.0 |
| Southgate Complex, Melbourne |
2,157 | •Dairy Australia | 4.0 |
| Woodside Plaza, Perth | 2,143 | *Woodside Energy | 5.0 |
| 30 The Bond, Sydney | 2,011 | EDS | 5.2 |
Heads of agreement are in place on approximately 18,000 sqm
DRT- COMMERCIAL $3.2$
Key Leasing Tasks
| Property | Vacant Area (sqm) | % Total Portfolio |
|---|---|---|
| Ferguson Centre (under refurbishment) | 10,970 | 2.1% |
| 45 Clarence St | 9,608 | 1.8% |
| Australia Square* | 7,129 | 1.4% |
| Others | 13,196 | 2.4% |
| * Represents 50% ownership interest | 40,903 | $7.7\%$ |
DRT - COMMERCIAL $3.2$
Lease Expiry Profile
Managed in partnership with Deutsche Bank $\boxdot$
DRT - COMMERCIAL $3.2$
Development & Refurbishment Update
Completed
45 Clarence Street, Sydney
Refurbishment works complete 缀
Underway
- 1 Chifley Square, Sydney
- Refurbishment due for completion & settlement, Mar 蹨 $05$
- 309-321 Kent Street, Sydney
- Development Approval received, works forecast for completion Dec 05
Ferguson Centre, Parramatta
Refurbishment planning commenced, DA lodged
Lunley Centre, Auckland
Under construction, completion scheduled June 05 ¥.
Pipetine
Bent Street, Sydney
Planning commenced 鐖
Lumiey Centre, Auckland
DRT - INDUSTRIAL $3.3$ Portfolio
EM Grouped Actual Earnings (\$000s) Dec 04 Dec 04 Dec 03 49,823 52,641 52,439 Net Property Income Net Sector Incorne 52,641 52,439 49,823 52 Holbeche Road, Arndell Park
DRT - INDUSTRIAL $\bf{3.3}$ Leasing Undate
- Portfolio income up 5% over Dec 03 纝
- Leasing 獵
- New leases, renewals and heads of agreement of over 82,000 sqm
- 8% of portfolio by area
- Portfolio occupancy 98.1% (95.0% in June 04)
- Average lease term 4.1 years by income (4.3 years at June 04).
- Significant leasing transactions during period include 獵
| Property | Area (sqm) Tenant | Term (years) | |
|---|---|---|---|
| DB Distribution Centre, Salisbury, SA | 15,272 | Various | 5.0 |
| Redwood Gardens, Dingley, VIC | 10,996 | Various | 7.2 |
| DB Business Park, Brookvale, NSW | 11.307 | Fujifilm Australia | 3.0 |
| 40 Talavera Road, North Ryde, NSW | 7.516 | Various | 6.6 |
DR RREEF
DRT-INDUSTRIAL $3.3$
Key Leasing Focus
| Froperty | Vacant Area (sqm) | Total % |
|---|---|---|
| 706 Mowbray Rd, Lane Cove, NSW | 4,951 | 0.4% |
| 11 Talavera Rd, North Ryde, NSW | 4,530 | 0.4% |
| 1-15 Rosebery Ave, Rosebery, NSW | 4,209 | 0.4% |
| Others | 7.147 | 0.7% |
| Total | 20,837 | 1.9% |
DRT - INDUSTRIAL $3.3$
Lease Expiry Profile
DB RREEF
Managed in partnership with Deutsche Bank $\boxdot$
$3.3$ DRT - INDUSTRIAL
Development Update
Completed - Approximately 63,000sqm delivered 鐖
| Property | Tenant | Area (sqm) | Completed | |
|---|---|---|---|---|
| Laverton, Vic | Visy Steel | 20,234 | Dec 04 | |
| Dandenong, Vic | Aluminium Specialties | 7,580 | Dec 04 | |
| Axxess Corporate Park, Vic |
Draeger Medical | 3,000 | Nov 04 | |
| Kings Park, NSW | CSL Limited | 1,800 | Sep 04 | |
| Greystanes, NSW | Various | 30,746 | July 04 | |
| 鐖 | Underway | |||
| Property | Tenant | Area (sqm) | Expected Completion | |
| Dandenong, Vic. | Westgate Logistics | 10,500 | June 05 | |
| Eastern Creek, NSW | CCL | 16,850 | Mar 05 | |
| Axxess Corp Park, Vic | Alinta Gas | 7,650 | Mar 05 |
DRT - RETAIL $3.4$ Portfolio
| Earnings (\$000s) | EM Dec 04 |
Grouped Dec 04 |
Actual Dec 63 |
|---|---|---|---|
| Net Property Income | 21.665 | 20,614 | 17.304 |
| Net Sector Income | 21,665 | 20.614 | 17.304 |
- Timing difference actual income is less than EM forecast due to differences 纝 between actual & forecast settlement dates of Whitford City & Mt Druitt.
- These differences are substantially offset by interest cost savings during the period. 纝
Managed in partnership with Deutsche Bank 23
$3.4$ DRT - RETAIL Centre Statistics
| Centre | Centre T/O Spsar |
Specialty T/O Spsm |
Total Centre MAT Growth |
Total Specialty MAT Growth |
Occ Cost Specialty % |
|---|---|---|---|---|---|
| Whitford City | 6,078 | 7,387 | 20.3% | 32.7% | 13.9% |
| Westlakes | N/A | N/A | 4.4% | 2.9% | 12.9% |
| Plenty Valley | 8,644 | 6,623 | 15.9% | 8.3% | 10.6% |
| North Lakes | 4,834 | 5,787 | N/A | N/A | 13.2% |
| Mt Druitt | 5,037 | 7,632 | 5.8% | 4.8% | 15.4% |
| 丝 Portfolio Occupancy ⋘ Portfolio Debtors |
99.5% 0.13% |
||||
DRT - RETAIL $3.4$ Development Undate
- Westlakes, SA
- \$64 million, 8.75% forecast return
- $-$ Stages 1,2 & 3 complete
- Stage 4 -Due to complete May 05
- Mount Druitt, NSW en 1979.
Statistik - \$60 million, 7.63% forecast return
- Stage 1: 17 shops, 5 kiosks due Sept 05
- Completion due Mar 06
- Development pipeline en 1973.
Statistike - Plenty Valley, Vic.
- North Lakes, Qld
- Whitford City, WA
Westfakes, SA
DRT - US INDUSTRIAL $3.5$
Portfolio
| Earnings (\$000s) | EM Dec 04 |
Grouped Dec 04 |
|
|---|---|---|---|
| Net Property Income (SUSD) | 18,634 | 19,492 | |
| Net Property Income (SAUD) | 27,346 | 27,141 | |
| US Income Support | 2,436 | 0 | |
| Net Sector Income | 29,782 | 27,141 |
- NPI (SUSD) up 4.6% before Income Support Willia
- EM assumed Income Support, which has not yet been drawn W.
- EM assumed \$AUD/USD exchange rate of \$0.6814, actual rate was \$0.7182 192
Managed in partnership with Deutsche Bank 23
3.5 DRT - US INDUSTRIAL
Leasing Update
- New leases and renewals of more than 880,000 square feet (4.4% of portfolio area) 纝
- Occupancy 87.4% (87.0% at June 04) 獵
- Average lease term 3.4 years (3.2 years at June 04) 鐖
- Significant leasing transactions during the period include: 纝
| Property | Tenant | Area (sq ft) | Lease Term (yrs) |
Lease Type |
|---|---|---|---|---|
| 10397 West Van Buren St. Tolleson. ΑZ |
States Logistics | 278,142 | 1.25 | Renewal/ Expansion |
| 1614 Westbelt Dr, Columbus, OH | United Stationers Supply | 229,200 | 5.0 | Renewal |
| 9565 Sta Anita Ave, Riverside, CA | Weber Inc. | 212,300 | 5.0 | New |
| 3601 East Plano Pkway, Plano, TX | Tekelec | 87,195 | 10.0 | New |
$3.5$ DRT - US INDUSTRIAL
Key Leasing Focus
| Property | Vacant Area (SqFt) |
% Total Portfolio |
||
|---|---|---|---|---|
| 9842 International Blvd | Cincinnati | OH | 204,800 | 1.0% |
| 1855 Dornoch Court | San Diego | CA | 131,600 | 0.7% |
| 3601 East Plano Parkway | Plano | ΤX | 123,365 | 0.6% |
| 3520 Westinghouse Blvd | Charlotte | NC | 121,900 | 0.6% |
| 3550 Westinghouse Blvd | Charlotte | NC | 104,000 | 0.5% |
| 7453 Empire Drive, Bldg C | Independence | ΚY | 101,250 | 0.5% |
| 1855 Dornoch Court | San Diego | CA | 88,400 | 0.4% |
| 12000 Jersey Court | Mira Loma | CA | 88,134 | 0.4% |
| 912 113th Street | Arlington | TX | 79,735 | 0.4% |
| 3765 Atlanta Industrial Drive | Atlanta | GA. | 76,440 | 0.4% |
| 181 Fulling Mill Road | Mechanicsburg | PA | 70,232 | 0.4% |
| Other vacancies | 1,316,250 | 6.6% | ||
| Total | 2,506,106 | 12.6% |
$3.5$ DRT - US INDUSTRIAL
Lease Expiry Profile
DRT - US INDUSTRIAL 3.5 Outkuk
- US industrial vacancies reduced by 60 basis points in 2004, the first reduction since 2000. Net absorption in 2004 rose to 175 million sq ft, the strongest year since 2000 and following negative absorption in 2002 (-9m sq ft) and a low base in 2003 (19m sq ft).
- Construction activity (115 m sq ft) remains at around 50% of peak highs (221 m sq ft average, III.
III 1997-2001) - Rising land values and construction costs have increased replacement costs by 10-20% in some areas
- Broad based recovery evident with rents increasing faster in stronger markets, though even Hills weaker markets are beginning to see some upward pressure
- Recovery expected to gather momentum in 2005, with net absorption of 170-190 m sq ft expected versus deliveries of 115-135 m sq ft, expected to reduce availability by further 50-70 basis points
Source: RREEF
Beaumeade Telecom - Beaumeade Circle, Ashburn, Virginia
DRT - DRO $3.6$
| Earnings (\$000s) | EM Dec 04 |
Grouped Dec 04 |
|---|---|---|
| Income from DRO | 1,807 | 1.947 |
| Income Tax | 113 | 311 |
| Net Income from DRO | 1,694 | 1,636 |
- 50% contribution from DB RREEF Holdings Pty Ltd Ű,
- Income comprises asset and property management fees less operating costs $\mathcal{U}_\delta$
- $\mathbb{Z}$ Management Expense Ratio for the period is 0.396%
16-20 Barrack Street, Sydney
- $\mathscr{C}_{\mathscr{C}}$ DRT to exercise call as outlined in EM
- Purchase Price \$44.5 m ⋘
- 丝 Opportunity to reposition and add value
- $\mathscr{C}_{\mathbb{R}}$ Strata title opportunity
DRT - CAPITAL MANAGEMENT $3.7$ Equity
- Q 2,583.8m securities Issued to previous DDF, DIT and DOT security holders
- 41.5m securities issued to Deutsche Australia Limited as consideration for 50% of DB 丝 RREEF Holdings Limited at \$1.312
- 106.7m securities issued through December DRP at \$1.279 in Feb 05 ▓
- 2,732.0m securities on Issue as at 1 March 2005 ▓
DRT - CAPITAL MANAGEMENT $3.7$ Debt
- Ű, Refinancing Completed
- A\$900m Syndication facility
- US \$200m US Private Placement (7,10,12 years)
DRT - CAPITAL MANAGEMENT $3.7$ Doly Prefile
- Ű, Duration of debt increased from 2.5 years to 3.5 years
- Ű. Current % of debt hedged at 82%
- Ű, Interest hedge duration: 4.6 years
- 丝 Interest cover 3x
- Ű. Cost of debt 5.43% (inclusive of margins & fees)
- $A 6.18%$
- $-154.12%$
- $N = 7.20%$
- Gearing (net of cash) as at December 2004 44% ▓
- Currency hedging: 88% at 71.06 cents Ű,
DR RREEF
$3.7$ DRT - CAPITAL MANAGEMENT
Debt Maturity Profile
DB RREEF
Managed in partnership with Deutsche Bank $\boxdot$
DB RREEF
Managed in partnership with Deutsche Bank $\boxdot$
THIRD PARTY FUNDS MANAGEMENT 4
DWPF \$1.4bn (126 investors)
- $\mathcal{U}_k$ Managed under delegated authority
- 盜 Proposed transfer of RE to be considered at AGM 3Q 05
- ⋘ No DRT investment - existing investor priority
- $\mathcal{U}_\alpha$ Acquired 50% of Regents Park, NSW
Separate Accounts
- $STC \sim 51.96n$ 盜
- AXA SO.4bn 盜
Syndicates (989 investors)
Three funds, S0.2bn m.
DB RREEF
Managed in partnership with Deutsche Bank $\boxdot$
F, BOARD COMPOSITION
4 Independent Board Members (including Caraticusto)
Chris Beare (Chairman)
Elizabeth Alexander AM (Chair of Audit Committee)
Barry Browniohn
Stewart Ewen
S Directors appointed by DAL
Victor Hoog Antink (CEO)
Charles Leitner (effective March 2005)
Brian Scullin (Chair of Compliance Committee)
Alternate to Charles Leitner Shaun Mays (Chair of Remuneration Committee)
Strength of Board Composition
- $\checkmark$ Majority Independent Directors
- $\checkmark$ Independent Chairman
- $\checkmark$ Independent Chairman of Audit Committee
- $\checkmark$ Strong expertise in:
- · Property
- Financial markets 四
- Accounting, compliance and governance
- $\checkmark$ Accessing the global DBRE / RREEF platform
DR RRFFF
DB RREEF
Managed in partnership with Deutsche Bank $Z$
MANAGEMENT
Client Service Model
Principals
- Client centric approach to ngga
Tidak maximise returns for all funds - Service providers integrated ng Maritim platform to individual portfolio/fund managers
Outcomes
- Better quality services $\mathcal{R}_{\mathcal{A}}$
- Greater efficiencies in asset Sept classes
- $\checkmark$ Greater flexibility, more opportunities
| DRFM | SANG PA OSTIGIO |
TANGE | QHENICI Mandates |
Syndicates | Xen. Susness |
|---|---|---|---|---|---|
| 21 Property Services: y Portfolio ENGEL Transactions フィン・ドレート アイディング ちょうじょうじょう D Other Services: |
|||||
| Accounts かいかんかん かいしょう かいしゅう しゅうしゅう Casstal Meirir Legal Operations Treasury |
STATE IT CA
6 PROPERTY SERVICES MANAGEMENT STRUCTURE
Organisational Chart
DB RREEF
Page: 46
GROUP MANAGEMENT STRUCTURE 6
Organisational Chart
Managed in partnership with Deutsche Bank $Z$
FUTURE DIRECTION & STRATEGY 7
- Portfolio performance ▓
- Continued leasing focus on existing assets
- $-$ Stabilise income stream
- Management platform en 1973.
1973. - Strengthen DRFM Management team
- Incremental resources
- Enhance eps growth en 1973.
1973. - Extract enhanced returns from existing asset base $\equiv$
- Assess new investment opportunities $\downarrow$
- Leverage the global platform W.
- US primary focus
Managed in partnership with Deutsche Bank $\boxtimes$
$8.1$ ANNEXURES - COMMERCIAL Commercial Portfolio
| Property NOI - Six months ending | Dec 04 $(A\mathsf{Sm})$ |
Dec 03 $(A\mathsf{S}\mathsf{m})$ |
|---|---|---|
| Governor Phillip & Macquarie Tower Complex, Sydney (50%) | 15.0 | 15.3 |
| Southgate Complex, Southbank | 14.1 | 13.6 |
| The Zenith, Chatswood | 9.0 | 8.5 |
| Woodside Plaza, Perth | 8.9 | 0.9 |
| Australia Square Complex, Sydney (50%) | 6.2 | 7.1 |
| Lumley House and Ernst & Young Building, Sydney (50%) | 5.6 | 4.7 |
| 44 Market St, Sydney | 4.8 | 5.2 |
| 30 The Bond, Sydney | 4.6 | 0.0 |
| One Margaret St, Sydney | 4.1 | 2.1 |
| 201 Elizabeth St, Sydney (50%) | 3.8 | 4.4 |
| 8 Nicholson St, Melbourne | 3.6 | 3.5 |
| Victoria Cross, North Sydney | 3.4 | 3.5 |
| 383 Kent Street, Sydney | 3.2 | 2.7 |
| 130 George St, Parramatta | 3.0 | 3.0 |
| 45 Clarence St, Sydney | 2.6 | 7.4 |
| 1 Chifley Square, Sydney | 2.1 | 0.4 |
|---|---|---|
| Garema Court, Canberra | 2.0 | 2.4 |
| 15 Bent St, Sydney | 1.7 | 1.7 |
| 14 Moore Street, Civic | 1.5 | 1.3 |
| 144 Edward Street, Brisbane (sold Nov-04) | 1.2 | 1.8 |
| Flinders Gate Complex, Melbourne | 0.7 | 0.6 |
| 1 Bligh St, Sydney (50%) | 0.5 | 0.0 |
| 2 O'Connell St, Sydney (50%) | 0.3 | 0.3 |
| 4 O'Connell St, Sydney (50%) | 0.3 | 0.5 |
| Lumley Centre, Auckland | 0.2 | 0.0 |
| 9 Bligh St, Sydney (50%) | 0.1 | 0.2 |
| 383 Kent Street, Sydney (Car Park) | 2.2 | 1.9 |
| Flinders Gate Car Park, Melbourne | 1.9 | 1.8 |
| 34 Little Collins St. Melbourne (Car Park) | 1.9 | 1.8 |
| Albert & Charlotte Sts, Brisbane (Car Park) | 1.5 | 1.4 |
| 32 Flinders St, Melbourne (Car Park) | 1.0 | 1.0 |
| Total Commercial - Australia & NZ | 110.6 | 99.0 |
ANNEXURES - INDUSTRIAL 8.2
Industrial Portfolio
| Dec 04 | Dec 03 | |
|---|---|---|
| Property NOI - Six months ending | (A5m) | (A5m) |
| 11 Talavera Rd, North Ryde | 5.2 | 7.0 |
| Axxess Corporate Park, Cnr Ferntree Gully & Gilby Rds, Mount \ | 4.0 | 3.3 |
| Kings Park Industrial Estate, Vardys Road, Maryong | 3.1 | 2.8 |
| 436-484 Victoría Rd, Gladesville | 2.0 | 1.7 |
| 10-16 South St, Rydalmere | 2.0 | 1.6 |
| 114-120 Old Pittwater Rd, Brookvale | 1.9 | 1.8 |
| 1-15 Rosebery Ave, Rosebery | 1.9 | 2.0 |
| 250 Forest Rd South, Lara | 1.7 | 1.7 |
| 79 St Hilliers Rd. Auburn | 1.7 | 1.4 |
| The Egerton St Industrial Estate | 1.7 | 1.7 |
| Pound Rd, Dandenong | 1.7 | 0.0 |
| Knoxfield Industrial Estate, Henderson Road, Knoxfield | 1.6 | 1.4 |
| 3 Brookhollow Ave, Norwest | 1.6 | 1.6 |
|---|---|---|
| Target Distribution Centre, Lot 1 Tarras Road, Altona North | 1.5 | 1.5 |
| 2 Minna Close, Belrose | 1.4 | 1.8 |
| 145-151 Arthur St, Flemington | 1.3 | 1.1 |
| 1-55 Rothschild Ave, Rosebery | 1.3 | 1.1 |
| 12 Frederick St, St Leonards | 1.3 | 1.4 |
| 1 Garigal Rd, Belrose | 1.2 | 1.2 |
| 1 Foundation Place, Greystanes | 1.0 | 0.0 |
| Redwood Gardens Industrial Estate, Boundary Road, Dingley | 1.0 | 0.9 |
| 15-23 Whicker Rd, Gillman | 0.9 | 0.9 |
| 25 Donkin St. West End Brisbane | 0.9 | 0.9 |
| 121 Evans Rd, Salisbury | 0.8 | 0.8 |
| 706 Mowbray Rd, Lane Cove | 0.8 | 1.0 |
ANNEXURES - INDUSTRIAL 8.2
Industrial Portfolio
| 27-33 Frank St, Wetherill Park 19 Chifley St, Smithfield |
0.7 0.7 |
0.7 0.6 |
|---|---|---|
| Axxess Corporate Park, Station Road, Seven Hills (sold Jul-Nov-C | 0.6 | 0.8 |
| 30 Bellrick St, Acacia Ridge | 0.6 | 0.6 |
| 40 Talavera Road, North Ryde | 0.6 | 0.2 |
| 114 Fairbank Rd, Clayton | 0.6 | 0.6 |
| 3-7 Bessemer St, Blacktown | 0.6 | 0.6 |
| 30-32 Bessemer St, Blacktown | 0.6 | 0.6 |
| 154 O'Riordan St, Mascot | 0.5 | 0.5 |
| 52 Holbeche Rd, Arndell Park | 0.5 | $0.5\,$ |
| 2a Birmingham St, Villawood | 0.5 | 0.5 |
| Wallgrove Road, Eastern Creek | 0.4 | 0.0 |
|---|---|---|
| 68 Hasler Rd, Herdsman | 0.4 | 0.4 |
| 27-29 Liberty Rd, Huntingwood | 0.3 | 0.3 |
| 352 Macaulay Rd, Kensington | 0.3 | 0.3 |
| 40 Biloela St, Villawood | 0.3 | 0.3 |
| 75 Carnarvon Street, Silverwater (sold Aug-04) | 0.3 | 1.4 |
| 239-251 Woodpark Rd, Smithfield | 0.3 | 0.3 |
| 33 McDowell St, Welshpool (sold Nov-04) | 0.2 | 0.0 |
| Boundary Rd, Laverton North | 0.0 | 0.0 |
| Total Industrial - Australia | 52.5 | 49.8 |
ANNEXURES - RETAIL 8.3 Retail Portfolio
| Dec 04 | Dec 03 | |
|---|---|---|
| Property NOI - Six months ending | $(A\mathsf{S}\mathsf{m})$ | $(A\mathsf{S}\mathsf{m})$ |
| Whitford City Shopping Centre, Hillary (50%) | 8.2 | 9.1 |
| Whitford Avenue, Hillary (50%) | 0.2 | 0.8 |
| Westlakes Shopping Centre, Westlakes | 6.6 | 6.8 |
| Plenty Valley Town Centre, South Morang (50%) | 0.6 | 0.6 |
| Westfield Mount Druitt (50%) | 3.6 | 0.0 |
| Westfield North Lakes (50%) | 1,4 | 0.0 |
| Total Retail - Australia | 20.6 | 17.3 |
ANNEXURES - US INDUSTRIAL 8.4
US Industrial Portfolio
| NOI | Charlotte | ||
|---|---|---|---|
| \$m USD Metro |
Commerce Park | 0.1 | |
| Atlanta | Brookford St | 0.0 | |
| Atlanta Industrial Drive | 0.0 | Westinghouse Blvd | 0.2 |
| Highlands Parkway | 0.2 | Cincinnati/NKY | |
| Town Park Drive | 0.1 | Airport Exchange Blvd | 0.1 |
| Williams Drive | 0.1 | Empire Drive | 0.0 |
| Stone Mountain | 0.1 | International Way | 0.2 |
| Baltimore | Kentucky Drive | 0.3 | |
| MD Food Park | 0.4 | Spiral Drive | 0.1 |
| West Nursery Rd | 0.1 | Turfway Rd | 0.1 |
| Cabot Techs | 124 Commerce Drive | 0.0 | |
| 0.4 | Kenwood Rd | 0.4 | |
| 9112 Guilford Rd | 0.2 | Lake Forest Drive | 0.2 |
| Stayton Drive | 0.2 | World Park | 0.1 |
| Patuxent Range | 0.2 | Columbus | |
| Bristol Court | 0.3 | Eq/West/Div | 0.7 |
| NE Baltimore | 0.1 | 2700 International St | (0.0) |
| Boston | Twin Creeks Drive | 0.1 | |
| Boston Industrial ,,,,,,,,,, |
0.2 | SE Columbus | 0.3 |
ANNEXURES - US INDUSTRIAL 8.4
IIS Industrial Portfolio
Dallas Los Angeles Arlington $0.1$ Glendale $0.5$ Diplomat Drive 1900 $0.1$ Industry Circle $0.1$ Diplomat Drive 2055 $(0.0)$ $0.4$ Alonda/Altura Bradley Lane $0.1$ San Fernando Rd $0.3$ $0.2$ North Lake Drive Memphis Airline Drive - 555 $0.1$ Memphis Industrial $0.2$ Airline Drive - 455 $01$ Minneapolis Hillguard Rd $0.1$ Lexington Ave $0.2$ Regency Crest Drive $00$ Mounds View $0.3$ East Collins Blvd $(0.0)$ Trenton Lane $0.1$ E Plano / Shiloh $(0.0)$ $0.0$ Monticello Lane E Plano / Summit $0.5$ $0.0$ Cahill Road $0.2$ Avenue F Northern Virginia 10th Street $0.1$ Dulles EDS Drive $0.5$ Capital Ave $0.0$ $0.8$ Alexandria Valwood Hutton Drive $0.0$ Calvert / Murry's $0.1$ Harrisburg Nokes Blvd $04$ Brackbill Blvd $0.5$ $0.4$ Guilford $0.4$ Mechanicsburg Fulling Mill Rd $0.1$ Beaumeade Telecom $0.6$
ANNEXURES - US INDUSTRIAL $8.4$
US Industrial Portfolio
| Oriando | |||
|---|---|---|---|
| Orlando CP | 1.0 | San Diego | |
| Exchange Drive | 0.1 | Domoch Court | (0.1) |
| Phoenix | Airway Road | 0.1 | |
| South 41st Ave | 0.2 | Newton Drive | 0.3 |
| South 40th Ave | 0.2 | Oak Ridge Wav | 0.1 |
| West Van Buren St | 0.2 | ||
| 44th Ave | 0.1 | Seattle | |
| South 9th St | 0.1 | Kent West | 0.5 |
| North 47th Ave | 0.1 | Riverbend 79th Ave | 0.1 |
| South 55th Ave | 0.1 | Riverbend South 266th St | 0.1 |
| South Priest Drive | 0.1 | South Florida | |
| West Alameda Drive | 0.1 | West Palm Beach | 0.4 |
| East Encanto Drive | 0.1 | ||
| East University | 0.1 | SubTotal - Property NOI | 18.2 |
| Riverside | Accrual for rent free and straight line rent | 1.3 | |
| Chino | 0.1 | ||
| Mira Loma | 0.2 | Adjusted NOI | 19.5 |
| Ontario | 0.6 | ||
| East Santa Ana St | 0.1 | ||
| Rancho Cucamonga | 0.3 | ||
| Jersey Court |
(0.0) | ||
ANNEXURES - DRT CAPITAL MANAGEMENT 8.5
Interest rate hedging profile
| FY05 | FY06 | FY07 | FY08 | FY09 | |
|---|---|---|---|---|---|
| A\$m hedged | 1523 | 1383 | 1018 | 838 | 338 |
| AS hedge rate 1 | 6.22% | 6.26% | 6.26% | 6.21% | 6.33% |
| Average rate 2 | 6.18% | 6.23% | 6.23% | 6.21% | 6.34% |
| US\$m hedged3 | 646 | 635 | 619 | 611 | 550 |
| US\$ hedge rate 1 | 4.37% | 4.48% | 4.47% | 4.52% | 4.47% |
| Average rate 2 | 4.12% | 4.35% | 4.46% | 4.62% | 4.75% |
| FY05 | FY06 | FY07 | FY08 | FY09 | |
| US\$m hedged | 13.5 | 15.5 | 12.4 | 9.4 | 4.8 |
| Avg AS/USS | 0.7106 | 0.6930 | 0.6859 | 0.6761 | 0.6681 |
| hedge rate |
1 Weighted average hedge rate including margin & fees
2 Weighted average fixed and floating rate including margin & fees
3 includes 80% of total hedges of DBRREEF Industrial LLC (US JV).
Page: 58
8.6 ANNEXURES - DRH - DRO ANALYSIS
P&L Summary
| DE RREE HOMMES 257 EC | DE Operations InUSE | ||
|---|---|---|---|
| SINGRITS ST Dec 021 \$m |
EXIMENTS STDEE021 \$m |
||
| Asset Management fees | 6.4 | $\bullet$ Interest Income (50%) | 1.3 |
| Other Fees | 6.2 | $\mathcal{L}$ Equity accounted profit *50%). | 0.8 |
| Total Income | 12.6 | Total income | 2. 1 |
| Profit before interest & tax | 4.2 | Interest expense | (0.2) |
| Interest - loan notes | (2.5) | Net profit before tax | 1.9 |
| Tax expense | (0.1) | ||
| Net income after tax | 1.6 | ||
| Distribution DRO |
0.8 |
DB RREEF
Managed in partnership with Deutsche Bank $\boxdot$
IMPORTANT INFORMATION Q
This presentation is issued by DB RREEF Funds Management Limited (DRFM) in its capacity as responsible entity of DRT. It is not an offer of securities for subscription or sale and is not financial product advice.
Information in this presentation including, without limitation, any forward looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted by law. DRFM, DRT, the Deutsche Bank AG Group and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied by any forward looking statements for a range of reasons outside the control of the relevant barties.
The information contained in this presentation should not be considered to be comprehensive or to comprise all the information which a DRT security holder or potential investor may require in order to determine whether to deal in DRT stapled securities. This presentation does not take into account the financial situation, investment objectives and particular needs of any particular person.
The repayment and performance of an investment in DRT is not guaranteed by DRFM or Deutsche Bank AG ABN 13 064 165 162, any of its related bodies corporate or any other person or organisation. An investment is not a deposit with or any other type of liability of Deutsche Bank AG or any other member of the Deutsche Bank AG Group, and the capital value and performance of an investment is not in any way guaranteed by the Bank or any other member of the Deutsche Bank AG Group.
This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.
Managed in partnership with Deutsche Bank [4]