2002 Media Releases

Deutsche Diversified Trust (ASX:DDF) has delivered strong results for the year ending 30 June 2002, with income distributions ahead of previous estimates. Net profit was $84.9 million, providing a total distribution of 9 cents per unit - an increase of 3.4 per cent across the year. Basic earnings per unit increased to 9.37 cents per unit, up nearly 7 per cent.

David McFadyen, General Manager of DDF, attributes the strong outcome to higher than expected income from two properties, as well as lower operating costs.

“Across the portfolio, the Trust achieved some excellent leasing results, resulting in the occupancy rate increasing from 91 per cent to 96 per cent at 30 June,” said Mr McFadyen.

“Strongest leasing results were experienced by the Trust’s industrial properties. At Carnarvon Street, Silverwater, for example, occupancy rose from 41 per cent to 81 per cent during the year. Four new leasing precommitments were also made for industrial projects currently under construction at Axxess Corporate Park at Mount Waverley in Victoria.”

“On the office front, completion of a new office tower at 383 Kent Street in Sydney CBD occurred ahead of schedule, allowing us to deliver earlier than expected income,” he added.

Also of note in the Trust’s office portfolio was the acquisition of 14 Moore Street in Civic, ACT. In the retail sector, the Trust completed construction of a new shopping centre at Plenty Valley in South Morang, Victoria, and commenced a major expansion of Whitford City Shopping Centre in Joondalup in Western Australia. Good turnover growth was achieved for these two retail centres.

In the past financial year, DDF secured a BBB+ rating from Standard & Poors and issued $125 million in medium term notes, allowing the Trust to diversify its debt facilities.

“Active management of the debt facilities allowed us to utilise the favourable market conditions in July to increase DDF’s hedging to 100 per cent, reducing investor interest rate risk and providing flexibility to fund further development activity and acquisitions,” said Mr McFadyen.

Looking forward, Mr McFadyen said he anticipates further income distribution growth for DDF. “We’re confident of achieving further growth of around 3.4 per cent in the 2003 financial year. Such growth, coupled with the retained earnings provides for a clear improvement in the growth and sustainability of income distributions.”

Further information:

David McFadyen
General Manager, Deutsche Diversified Trust
Mobile: 0405 134 851

Kristin Silva/Ainsley Gee
Communications
Phone: (02) 9249 9568 / (02) 9249 9904

About Deutsche Diversified Trust

Deutsche Diversified Trust is listed on the Australian Stock Exchange (ASX:DDF) and has assets valued at approximately A$1.4 billion. This highly diversified trust, by sector as well as geographic allocation, has 26 properties across the retail, office, industrial and carpark property sectors in five major Australian states and the ACT. The Trust has a potential development book of around $350 million, and is currently undertaking or planning major development activities in its retail, office and industrial portfolios.