DB RREEF Trust (DRT) A$200m Medium term Note (MTN) Issue Investor Presentation July 2006 DB RREEF Funds Management Limited ABN 24 060 920 783 Australian Financial S ervices Licence Holder
Contents 1. Overview of DRT 2. Overview of the Fund Manager 3. DRT Portfolio Overview 4. Financial Overview 5. Investment Highlights – S ummary 6. MTN Issue Details 7. Q & A 8. Important Information
Overview of DRT 1.
Profile of DRT DRT Market Profile DRT Key points of differentiation � � Long term corporate credit rating of BBB+ (positive S trategic partnership / alliance with RREEF outlook) by S tandard and Poor‘ s � Target international asset exposure 35% -50% of � Currently sixth largest LPT on the AS X S &P LPT 200 portfolio Index (by market cap) and included in top 100 AS X � Research investment based approach t o support listed entity growth strategies and asset acquisitions � Equity market capitalisation of approx A$4.3 � 98% earnings derived from investment assets billion (1) � S trong capital platform � Over 2.8 billion units on issue � S ect or and geography diversification � 50% of Management Company (DRFM) owned by DRT DRT Operational Profile DRT Asset Class Diversification (2) � Total assets of A$7.6bn (Dec ’ 05 book value plus Retail, A$0.9bn French portfolio) France Industrial, 12% A$0.1bn � 181 properties – office, industrial, retail, car parks 2% � Distributions: - proj ected to June ’ 06 of 11.0 cents Commercial, US Industrial, - actual to June ’ 05 of 10.5 cents A$3.4bn A$1.3bn 47% 19% Industrial, A$1.4bn 20% (1) As at 12 July 2006 (2) As at 31 December 2005. Includes recent French acquisition and 80% of US j oint venture
DRT group structure � Restructure completed in DRT Unitholders Deutsche S eptember ’ 04 Bank � S emi internalisation of the DRT Stapled Group management platform Stapled Stapled Stapled � Merger 3 existing listed DOT DIT DRO DDF trusts � Creation of fourth trading 50% 50% trust entity DB RREEF � Number of acquisitions or Finance DRH Pty Ltd JV’ s established and completed 100% � DRT listed on AS X � Top 100 listed entity � DIT - DB RREEF Industrial Trust DRFM � DOT - DB RREEF Office Trust � Trades as a stapled security � DDF - DB RREEF Diversified Trust � DRO - DB RREEF Operat ions Trust � Over 26,000 investors � DRH – DB RREEF Holdings Pt y Ltd � Top 20 investors hold over � DRFM - DB RREEF Funds Management Limited 75% of issued securities
Relative positioning – risk return profile � Maj ority of earnings derived Core v Enhanced Earnings from core real estate 100% 2% 5% holdings 7% 8% 18% 90% 9% 18% � 31% Development activity is 80% 24% 2% 47% predominantly tenant 56% 70% driven and aimed at 60% enhancing returns 50% 6% 98% � No residential or 84% 40% 79% construction risk 76% 69% 68% 30% 47% 45% 20% 10% 0% DRT MGQ IPG CNP VPG SGP MGR ALZ Property investment Funds management Development S ource: UBS
Overview of the Fund Manager 2.
Profile of DRFM The Fund Manager Integrated Funds Management Structure (1) Funds Management Structure � Total FUM – A$11.3bn DRFM Funds Management Structure � Listed FUM - t otal assets A$7.5bn � Third Party FUM – t otal assets A$3.8bn DRT Deutsche Investor Base Stakeholders STC DRFM DRT AXA Total Property FUM (2) (A$bn) Third Party FUM DWPF Mandates, $1.8, Syndicates 17% � Syndicates, DB RREEF Funds Management Limit ed (DRFM) is a semi- $0.2, 2% internalised funds management plat form, owned 50% by DB RREEF Trust (DRT) and 50% by Deut sche Bank. DWPF, $1.6, 15% � DRFM is the Responsible Entity for DRT and 3 unlisted syndicates and the Investment Manager of 2 separate account port folios (S TC and AXA) and the Deutsche Wholesale Property Fund (DWPF under delegated authority from DB Real Estate). DRT, $7.0, 66% (1) As at 31 December 2005. Includes non property assets of A$0.4 bn and minority interests of A$0.3bn (2) As at 31 December 2005. Excludes non property assets of A$0.4 bn and minority interests of A$0.3bn
Funds Under Management and Third Party FUM (1) � A$3.6 billion of third party property assets under management � Deutsche Wholesale Property Fund (“ DWPF” ) – unlisted, open-ended property fund of 13 properties with a total value of A$1.6 billion (53% Office, 41% Retail and 6% Industrial). � S AS Trustee Corporation (“ S TC” ) mandate- management of a portfolio of direct property comprising 13 properties with a market value of approximately A$1.5 billion (52% Retail, 33% Office and 15% Industrial). Managed since 1997. � AXA mandates- management of a portfolio of direct property of AXA Aust ralian and New Zealand S tatutory Funds and AXA Wholesale Australian Property Fund. 11 properties with a market value of approximately A$0.25 billion (37% Industrial, 33% Office and 30% Retail). Managed since 2001. � Retail S yndicates- totalling A$0.2 billion comprising three single asset entities, each owning one dedicated asset. Each syndicate is for a fixed term with approximately five years remaining. In total representing 90% Retail and 10% Commercial. (1) As at 31 December 2005. Excludes non direct property assets
Operating Strategy DRFM’ s focus is to maximize total returns to investors through active management and to enhance value by: � Acquiring new property-related assets, including international assets (through RREEF); � S elling selected non-core assets; � Redeveloping appropriate properties or undertaking new developments where value-adding opportunities exist; � Retaining funding flexibility and capacity by active capital management; � Improving the profitability of its funds management business through growing its FUM whilst actively managing its cost structure.
Overview of RREEF RREEF Global AUM (1) RREEF in US (by value) (1) Australia 11% Other Apartments 4% Asia 15% 1% Retail Continental 9% Industrial Europe Americas 37% 25% 54% United Kingdom Office 9% 35% � Full service real estate investment advisor, ranked � 760 properties totalling US $24bn and over 168m largest real estate and infrastructure investment square feet manager globally by EuroProperty/ INREV, May 2006 � National presence through 129 property management � US $64bn AUM, with more than 2000 employees in 19 offices in 98 cities locations worldwide (1) As at 31 March 2006 Source: RREEF
Board & Senior Management Board of Directors Independent DB Appointed Chris Beare – Chairman Victor Hoog Antink Elizabeth Alexander AM Charles Leitner III Barry Brownjohn Andy Fay (alternate) Stewart Ewen OAM Brian Scullin Victor Hoog Antink CEO Tony Dixon Mark Turner Ben Lehmann Peter Roberts Tanya Cox John Easy DRT, Fund Manager Unlisted Portfolio Services CFO COO General Counsel
Size of global real estate markets December 2005 Investible Invested by universe % of global institutions USD bn universe USD bn % S ecuritisation* US & Canada 5,250 37% 1,480 41% UK 963 7% 323 31% Cont. Europe 4,659 33% 764 15% Japan 2,080 15% 342 30% HK/ China 334 2% 93 83% Other Asia 612 4% 119 27% Aust ralia & NZ 248 2% 117 60% Total 14,146 3,238 Source: UBS *proportion of institutional invested stock which is listed
DRT Property Portfolio 3.
Asset overview Property portfolio by asset value (1) DRT lease expiry profile (1) 18% Retail, France 16% A$0.9bn Industrial, 12% 14% A$0.1bn 2% 12% Commercial, 10% US Industrial, A$3.4bn A$1.3bn 8% 47% 19% 6% 4% Industrial, 2% A$1.4bn 0% 20% 6 7 8 9 0 1 2 3 4 + 0 0 0 0 1 1 1 1 1 5 e � DRT’ s direct property portfolio of A$7.1 billion is weighted l 0 0 0 0 0 0 0 0 0 1 b 2 2 2 2 2 2 2 2 2 0 a 2 l i a 79% towards Australian and New Zealand assets, 19% v A Area Income towards US assets and 2% towards French assets (1) As at 31 December 2005. Includes French portfolio and represents 80% ownership of US Industrial portfolio
Asset diversification � Diversity by Sector S trong diversification benefits; A$bn % Occupancy (2) Average Lease Term (3) � sector Commercial (inc. Car Parks) 3.4 47 97.5 6.6 � geographic Industrial 1.4 20 98.5 4.9 US Industrial (1) 1.3 19 91.2 3.3 � tenant European Industrial 0.1 2 100.0 6.8 � Average occupancy at 95% and Retail 0.9 12 99.4 5.6 rising Total 7.1 100 95.3 5.4 Diversity by Tenant (4) Tenant S&P Rating % of Portfolio Income Industry � Average lease term 5.4 years State of NSW AAA 3.4% State Government Coles Myer Group BBB 3.4% Retail Woodside Energy Limited A- 3.2% Resources � Largest tenants primarily strong IBM Group A+ 3.1% IT Services counterparties – Government and Commonwealth of Australia AAA 3.1% Federal Government maj or corporate entities Kings Parking (“ Operator” ) n/ a 2.9% Car Parks Wilson Parking (“ Operator” ) n/ a 1.8% Car Parks S tate of Victoria AAA 1.7% State Government � Historical tenant default Lend Lease Corporation Ltd BBB- 1.7% Real Estate & Dvelopment incidence minimal Dabserv Pty Limited (Mallesons) n/ a 1.6% Legal S ervices (1) Represents 80% of ownership of US industrial portfolio (2) By area, including head of agreement (HOA) (3) By income, including HOA (4) Tenants with common ownership have been consolidated
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