DB RREEF Trust December 2004 Interim Results DB RREEF Funds - PowerPoint PPT Presentation

DB RREEF Trust December 2004 Interim Results DB RREEF Funds Management Limited ABN 24 060 920 783 As Responsible Entity Presented by Victor Hoog Antink CEO, DB RREEF Funds Management Limited 28 February 2005

OVERVIEW 1. Highlights 2. December 2004 Results 3. DRT 4. Third Party Funds Management 5. Board 6. Management 7. Future Direction & S trategy 8. Annexures 9. Important Information 1 Farrer Place, S ydney Page: 2

HIGHLIGHTS 1

1 HIGHLIGHTS � EPS / DPS on target with Explanatory Memorandum forecasts – Net income before capital items $137.2m – Distribution to investors $136.5m – EPS 5.23 cents – DPS 5.20 cents – Confirm FY05 forecast distribution 10.50 cps � Restructure initiatives on track – Asset sales and acquisitions progressing – Refinancing of debt facilities undertaken � Board composition complete � Management platform implemented – Client: service provider focus � S tabilised business platform for future growth Page: 4

DECEMBER 2004 RESULTS 2

2 DECEMBER 2004 RESULTS Statutory EM Actual – 1 Forecasts 1 Grouped 1 Accounts $98.1 Net Profit before capital items ($m) 2 $134.2 $137.2 Earnings per security (cps) 5.94 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 S ecurity (cps) 4.44 4.48 1 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 Trusts 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 entities comprising DB RREEF Office Trust ( DOT ), DB RREEF Industrial Trust ( DIT ) and DB RREEF Operations Trust ( DRO ) are consolidated as subsidiary entities for accounting purposes. The financial statements reflect six months of DDF results and three 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. 3 Net Profit Attributable to Security Holders reflects the writing off of transaction costs and includes capital profits. Page: 6

2 DECEMBER 2004 RESULTS Profit & Loss Statement Consolidated EM Grouped Dec 04 AUD ($000s) Dec 04 Dec 04 % 149,660 Total Income 215,920 213,441 Responsible Entity Fees & Other (7,501) Expenses (15,058) (14,104) (40,975) Borrowing Costs (63,734) (59,051) 101,184 Income after Interest & Expenses 137,128 140,286 + 2% (788) Tax (830) (788) (2,313) Outside Equity Interest (2,069) (2,313) 98,083 Net Income Before Capital Items 134,229 137,185 + 2% 19,570 Profit on S ale of Assets 21,712 19,570 (43,296) Transaction Costs (40,506) (43,296) Increment on Valuation of - Investment Properties - 3,795 1 74,357 Net Income After Capital Items 115,435 117,254 + 2% 1 Reversal of prior amounts written off in DIT Page: 7

2 DECEMBER 2004 RESULTS DRT Net Sector Income - Analysed EM Grouped Dec 04 Dec 04 $000s 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 S upport 2,436 Total Income 215,920 213,441 Page: 8

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 � Gearing 44% Payables, provisions & other 266,415 � Net equity $3.20bn Interest bearing liabilities 2,924,228 � S Total liabilities 3,190,643 ecurities on Issue 2.63bn Net assets 3,319,584 � NTA per security Contributed equity 2,958,202 $1.22 Reserves 234,443 Undistributed income 10,890 Outside equity interests 116,049 Total equity 3,319,584 Net equity attributable to security holders 3,203,535 Page: 9

3 DRT 3.1 Portfolio 3.2 Commercial 3.3 Industrial 3.4 Retail 3.5 US Industrial 3.6 DB RREEF Operations Trust (DRO) 3.7 Capital Management

3.1 DRT - PORTFOLIO Asset Diversification As at $ bn % Occupancy Avg Lease % 2 US Indust rial 31 Dec 04 Term 3 17% Commercial 3.1 51 92.3 5.9 Ret ail Industrial 1.3 21 98.1 4.1 Commercial 11% Industrial 1 US 1.1 17 87.4 3.4 51% Retail 0.6 11 99.5 6.0 TOTAL 6.1 100 Indust rial 21% 1 represents 80% ownership of US industrial portfolio 2 by area 3 by income Page: 11

3.1 DRT - PORTFOLIO Transactions Completed Transactions totalling $476m during the period delivered profits on sale of $19.6m Sales Settled $m P & L - $m � Whitford City, WA (50% ) Aug 04 $192.5 $15.0 � Plenty Valley, Vic (50% ) Aug 04 $19.0 $ 1.3 � Axxess Corporate Park, S even Hills, NS W Oct 04 $16.6 $(0.2) � McDowell S t, Welshpool, WA Nov 04 $4.2 $(0.1) � 144 Edward Street, Brisbane, Qld Nov 04 $44.7 $3.4 � Redwood Gardens, Dingley, Vic (part) Nov 04 $5.5 $0.2 Acquisitions Settled $m Cap Rate � North Lakes, Qld (50% ) Aug 04 $60.8 7.25% � Mt Druitt, NSW (50% ) Sept 04 $132.5 7.25% Page: 12

3.1 DRT – PORTFOLIO Transactions On-going Sales $m Settlement Status � Rothschild Ave, Rosebery, NS W $22.0 Feb 05 � 1 Chifley S quare, S ydney, NSW $54.0 Due March 05 � West Lakes, SA (50% ) $122.5 Due April 05 Acquisitions $m Settlement Status � 16-20 Barrack Street, NS W $44.5 Feb 05 � Hurstville S hopping Centre, NSW (50% ) $220.0 (est) Due April 05 � Lumley Centre, Auckland $NZ110.4 Due June 05 Page: 13

3.1 DRT - PORTFOLIO Valuations Property Date Cap Rate % Valuation Revaluation New / Old $m $m GPT/ GMT Complex, S ydney, NS W* 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 S t, S ydney, NS W * Dec 04 7.25 / 7.25 117.0 (0.4) O’ Connell S t*, Bligh S t* & Bent S t, S ept 04 7.9 / 7.9 91.3 3.4 S ydney, NS W 436 Gladesville Rd, Gladesville, NS W Dec 04 8.5 / 8.75 43.0 1.7 1 Foundation Place, Greystanes, NS W Dec 04 8.0 / N/ A 41.7 3.1 2 Minna Close, Belrose, NS W 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 Garigal Rd, Belrose, NS W Dec 04 8.5 / 8.7 27.4 2.7 121 Evans Rd, S alisbury, QLD Dec 04 8.75 / 9.5 18.5 3.8 TOTAL 1,095.3 57.8 * 50% ownership ** Directors’ valuation Page: 14

3.2 DRT - COMMERCIAL EM Grouped Actual Earnings ($000s) Dec 04 Dec 04 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 Income 109,202 110,550 98,990 Page: 15

3.2 DRT - COMMERCIAL � Portfolio income up 12% over Dec 03 � Portfolio quality enhanced – 45 Clarence S treet, S ydney refurbishment completed – Lumley Centre, Auckland scheduled for completion in June 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) – S trong lease profile of 5.9 years by income (5.6 years at June 04) 45 Clarence Street, Sydney Page: 16

3.2 DRT - COMMERCIAL Leasing Update � S ignificant leasing transactions Property Area (sqm) Major Tenant Term (yrs) � Hudson Global (6,811) 45 Clarence S treet, S ydney 12,055 7.0 � HBOS Australia (5,244) 8.0 � NS 130 George St, Parramatta 7,200 W Police 5.0 � Various Australia S quare, Sydney 6,121 6.1 � Custom Call 383 Kent Street, Sydney 3,589 5.0 � Lumley General Insur. Lumley Centre, Auckland 3,230 10.0 � Dairy Australia S outhgate Complex, 2,157 4.0 Melbourne � Woodside Energy Woodside Plaza, Perth 2,143 5.0 � EDS 30 The Bond, Sydney 2,011 5.2 � Heads of agreement are in place on approximately 18,000 sqm Page: 17

3.2 DRT- COMMERCIAL Key Leasing Tasks Property Vacant Area (sqm) % Total Portfolio Ferguson Centre (under refurbishment) 10,970 2.1% 45 Clarence S t 9,608 1.8% Australia S quare* 7,129 1.4% Others 13,196 2.4% 40,903 7.7% * Represents 50% ownership interest Page: 18

3.2 DRT - COMMERCIAL Lease Expiry Profile 50% 40% 30% 20% 10% 0% FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15+ Available Area Income Page: 19