Dexus (ASX: DXS) ASX release 30 August 2019 London and US investor presentation Dexus provides the attached presentation which will be used as a basis of discussion in London and the US. For further information please contact: Investor Relations Media Relations Rowena Causley Louise Murray +61 2 9017 1390 +61 2 9017 1446 +61 416 122 383 +61 403 260 754 rowena.causley@dexus.com louise.murray@dexus.com About Dexus Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $31.8 billion. We believe that the strength and quality of our relationships is central to our success, and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $15.6 billion of office and industrial properties. We manage a further $16.2 billion of office, retail, industrial and healthcare properties for third party clients. The group’s circa $9.3 billion development and concept pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.7 million square metres of office workspace across 53 properties, we are Australia’s preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by 26,000 investors from 19 countries. With 35 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk- adjusted returns for investors. www.dexus.com Download the Dexus IR app Download the Dexus IR app to your preferred mobile device to gain instant access to the latest stock price, ASX Announcements, presentations, reports, webcasts and more. Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS)
London and US investor meetings Overview presentation September 2019 Dexus Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for Dexus
Megatrends Dexus’s strategy is orientated around two key long-term growth thematics 2 1 We are in a climate of rapid Urbanisation Growth in pension capital fund flows change and the context in which we operate our business, both Densification of land use in and around key Increased demand for real assets from today and in the future, is economic and transport hubs growing and ageing populations informed by the disruption and 30.2 opportunity created by global 41.4 megatrends. Pension funds total assets +55.6% “Australia’s Other megatrends that could (USD trillion) 2 26.6 major cities all +13.7 Australian capital cities population (millions) 1 impact Dexus’s strategy and ranked in the 20%+ outlook include: top 25 most 16.5 allocated to real liveable cities estate, infrastructure globally” The rise of the millennial worker and private equity, up from 4% in 1997 EIU Liveability Rankings Technological change 2007 2017 2017 2060F Environmental sustainability “re-creation of assets in high demand CBD locations to “attraction of like minded, long dated, third party capital unlock change of use upside” partners to invest alongside Dexus” 1. Source: ABS 2. Source: Willis Towers Watson, Global pension assets study 2018. 2 London and US investor meetings overview presentation
Dexus overview $31.8 billion under management 1 Dexus distribution per security (cents) 2 PROPERTY PORTFOLIO - Proxy for Australian office property 6.6% CAGR $15.6 billion 1 • Overweight position to Sydney market since FY12 FUNDS MANAGEMENT - Outperforming and growing Funds Management cps 50.2 business $16.2 billion 1 50 47.8 45.47 43.51 45 - $9.3 billion group development and concept 41.04 DEVELOPMENT pipeline 40 37.56 36.00 35 32.10 - Future trading pipeline of $210-300 million of TRADING 30 profits (pre-tax) from five trading projects 25 20 - Strong balance sheet with gearing of 24.0% CAPITAL MANAGEMENT FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 - Market cap of circa $14 billion 1. Funds under management as at 30 June 2019. 2. Adjusted for the one-for-six security consolidation completed in FY15. Compound annual growth rate (CAGR) is calculated over seven years. 3 London and US investor meetings overview presentation
FY19 highlights Creating sustained value for Security holders FY19 highlights 2018 Financial Office Funds People & Capabilities Environment Delivering for Security holders Office portfolio 2020 NABERS targets progressed Dexus Wholesale Property Fund +5% +5.5% 10.1% outperformed Recognised as an 5 star NABERS Energy outperformed benchmark over 950,351sqm MSCI benchmark over Distribution AFFO 1 ROCE 2 Employer of Choice for or above 1, 3, 5, 7 and 10 years per security per security Gender Equality 757,422sqm 3 & 5 years 4 star NABERS Water growth growth or above Total Assets Under Management (AUM) 37% - 98% occupancy Dexus Australian 242k sqm of Secured industry leading supply-linked - 4.4 year WALE FY18 $27.2bn Logistics Trust (DALT) Female gender representation in offsite renewable leasing 5 success +$4.6bn - 13.4% averages incentives 6 senior and executive Energy Supply Agreement 7 New unlisted logistics fund FY19 $31.8bn in AUM - 24% Sydney CBD leasing management roles established with GIC spread 6 Capital management activities Significant development commitments - Diversified - $340m $900m $425m Achieved 2020 target $1bn+ +40 96% 93% 81% - Healthcare - $100m to reduce 8 like-for-like Institutional placement Exchangeable notes new capital - Logistics & Industrial energy use and emissions by 10% $63.9m 24.0% 100 Mount 240 St Georges 180 Flinders Employee Net Promoter raised Funds - $645m Street Terrace Street Score Gearing 3 Security Purchase Plan One-year Certified +46 43rd Tech Total Security holder 12 Science Based Customer Net Promoter Score return 4 Ranking in 2018 AFR IBcon Most Target consistent with New investors attracted to the achieved up from most innovative Intelligent 39.4% funds management platform +32 in FY18 the Paris Agreement company Office Portfolio 2019 1. Adjusted Funds From Operations. 5. Including development leasing of 52,815 square metres. 2. Return on Contributed Equity. 6. Excluding development leasing. 3. Adjusted for cash and debt in equity accounted investments. 7. Powering 50% of base building load across 40 NSW properties from January 2020. 4. Source: UBS Australia 30 June 2019. 8. FY15 base year. 4 London and US investor meetings overview presentation
Active year of transaction activity Securing opportunities and recycling capital, alongside third party capital partners Replenishing industrial DWPF acquisition of Acquisition of prime Acquisition of remaining Acquisition of Acquisition of development landbank industrial property in development site in 50% in MLC Centre, 80 Collins precinct, Pitt and Bridge precinct $3.1 $188 million Banyo, QLD Melbourne CBD Sydney Melbourne Three properties adjacent to (60 & 52 Collins St) billion Ravenhall (DALT 50%, DWPF 50%), $34 million $800 million 56 Pitt, Sydney (two exchanged to be $1.48 billion acquired on deferred settlement basis) South Granville (DALT 100%), $230 million DWPF 100% interest DXS 25%, DWPF 25% DXS 75%, DWPF 25% Richlands (DALT 100%) $354 million DXS 100% interest Acquisitions DXS 50% Dexus Office Partner 50% March May June August September November 2019 2019 2019 2018 2018 2018 Total transactions of December January July October $3.9 billion 2018 2018 2019 2018 February April in FY19 August November 2018 2019 2019 2018 Divestments DWPF sale of JV with GIC to establish Sale of Sale of Sturt Mall, Wagga Wagga Dexus Australian Logistics Trust 11 Talavera Road, Finlay Crisp Centre, (DALT) Macquarie Park Canberra $0.8 $73 million circa $2 billion logistics portfolio seeded $231 million $62 million billion DWPF 100% interest with Dexus industrial assets DXS 100% interest DXS 50% Key Initial 25% tranche Dexus Office Partner 50% Dexus alongside third $364 million party capital partner Industrial Office Retail Sector 5 London and US investor meetings overview presentation
Balance sheet strength maintained Well positioned on cost, duration and diversification - Further diversified funding sources and maintained low gearing Maintain a strong balance sheet FY20 • Issued A$425 million Exchangeable Notes to fund Dexus’s acquisition of an focus additional 25% interest in the MLC Centre, Sydney Further strengthen debt diversification • Completed an Institutional Placement and Security Purchase Plan raising $964 million to fund Dexus’s 75% interest in 80 Collins Street, Melbourne Diversified sources of debt Key metrics 30 June 2019 30 June 2018 Debt capital markets 64% Bank debt 36% Gearing (look-through) 1 24.0% 24.1% Cost of debt 2 4.0% 4.2% Bank Facilities 36% Duration of debt 6.7 years 7.0 years Exchangeable Notes 9% Hedged debt (incl caps) 3 74% 71% S&P/Moody’s credit rating A-/A3 A-/A3 144A 7% Commercial Paper 2% USPP 34% MTN 12% 1. Adjusted for cash and debt in equity accounted investments. 2. Weighted average for the year, inclusive of fees and margins on a drawn basis. 3. Average for the year. Hedged debt (excluding caps) was 58% for the 12 months to 30 June 2018 and 55% for the 12 months to 30 June 2019. 6 London and US investor meetings overview presentation
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