2010 DEXUS Property Group US Property Tour DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS Property Group, US Property Tour —Slide 1 AFSL 238163 as responsible entity for DEXUS Property Group
TITLE SLIDE HEADER DEXUS US (Trebuchet Bold 28pt) Sub title (Trebuchet 16 pt) Victor Hoog Antink Jane Lloyd, Managing Director, US Investments Chief Executive Officer 3691 North Perris Boulevard, Perris, CA DXS 2009 Annual Results —Slide 2
DEXUS US VISION � Our goal in the US is to become a market leader in industrial real estate on the west coast within three years by: —Repositioning our existing portfolio to create critical mass, and —Establishing a full service asset management platform Our brand proposition Quality assets Active portfolio management S trong balance sheet Tenants Investors Employees preferred owner enhanced value preferred employer DEXUS Property Group, US Property Tour —Slide 3
US INDUSTRIAL The task at hand � Establish US team � Manage existing portfolio - improved operational performance � Transition management of existing core portfolio � Reposition portfolio to preferred west coast markets 13602 12 t h St reet, Chino, CA DEXUS Property Group, US Property Tour —Slide 4 DEXUS Property Group, US Property Tour —Slide 4
INDUSTRIAL MARKETS Some perspective on relative size DEXUS Property Group, US Property Tour —Slide 5
US OPERATING ENVIRONMENT Weak but improving � US industrial net absorption weak US Industrial absorption and US GDP but forecast to improve with economy 2011-13 � US industrial transaction volumes US Industrial transactions remain low following 2007 peak * To Q1/ 10 S ource: RCA, RREEF, DEXUS Research DEXUS Property Group, US Property Tour —Slide 6
1. EXISTING PORTFOLIO MANAGEMENT � How do we measure? � What are we doing? � What do we want? —S tabilized portfolio —Rental growth, retention —Building DEXUS team and receivables —Consistent performance —Regular visits to assets —Benchmarking —Long-term sustainable —Weekly calls earnings growth —Focus on high risk areas 9371 Buffalo Avenue Rancho Cucamonga, CA DEXUS Property Group, US Property Tour —Slide 7 DEXUS Property Group, US Property Tour —Slide 7
2. ESTABLISHMENT OF US TEAM DEXUS Property Group, US Property Tour —Slide 8
3. TRANSITION PORTFOLIO AND ASSET MANAGEMENT DEXUS US – An Integrated Property Model Investment management (portfolio oversight) Jun 2010 Leasing & Development IT, Finance, Asset Jan 2011 Management Transactions Management CR&S Property management CBRE ENHANCED PERFORMANCE AND VALUE DEXUS Property Group, US Property Tour —Slide 9
4. TRANSITION PORTFOLIO TO PREFERRED WEST COAST MARKETS Portfolio – April 2009 DEXUS Property Group, US Property Tour —Slide 10
4. TRANSITION PORTFOLIO TO PREFERRED WEST COAST MARKETS Portfolio – current DEXUS Property Group, US Property Tour —Slide 11
4. TRANSITION PORTFOLIO TO PREFERRED WEST COAST MARKETS Portfolio – following repositioning DEXUS Property Group, US Property Tour —Slide 12
TARGET ASSET CRITERIA � What type of assets do we want? —A-Grade and quality B-Grade —Institutional grade (high spec) Core portfolio —Assets that can become A-Grade � Criteria —Preferred west coast markets —Location – transport nodes —S pecification —Disciplined approach � Why? —Operational efficiencies —Investor requirements —S etting market expectations Source: Cushman & Wakefield Dec 2009 valuations DEXUS Property Group, US Property Tour —Slide 13
US INVESTMENTS Where we are and where we want to be MARKETS 2010 2012/ 13 Markets 17 markets Preferred west coast markets People 12 people 20-25 people 3 parties with multiple interests One organization One culture One brand Tenant relationships Portfolio managed by 2 x third Core portfolio managed by DEXUS party providers Diversification, recycling Repositioned to west coast Capital and value proposition S trong management platform Quality A-Grade – 52% A-Grade – 80% B-Grade – 37% B-Grade – 15% C-Grade – 6% C-Grade – 5% D-Grade – 5% D-Grade – 0% Sustainability 5 LEED certified Core portfolio rated Program implemented Multiple brands One brand Brand DEXUS / RREEF/ CBRE DEXUS DEXUS Property Group, US Property Tour —Slide 14
KEY PERFORMANCE INDICATORS � Short-term —Third party providers —More aggressive deals —Stronger enforcement/ expectation on benchmarks � Assemble team —S election —DEXUS approach: service excellence � Assume asset management responsibility � Implement integrated management � Future opportunities —3 rd party funds management and development 3590 De Forest Circle, Mira Loma, CA DEXUS Property Group, US Property Tour —Slide 15
TITLE SLIDE HEADER QUESTIONS (Trebuchet Bold 28pt) Sub title (Trebuchet 16 pt) Victor Hoog Antink Chief Executive Officer 4190 Santa Ana Street, Ontario, CA DXS 2009 Annual Results —Slide 16
2010 DEXUS Property Group US Property Tour DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS Property Group, US Property Tour —Slide 17 AFSL 238163 as responsible entity for DEXUS Property Group
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