Dexus · ASX:DXS
Dexus — Non-Deal Roadshow (October 2018)
30 slides from Dexus's roadshow presentation, Oct 2, 2018
Slide 1: Investor roadshow presentation ASX release
Dexus (ASX: DXS) ASX release For personal use only 2 October 2018 Investor roadshow presentation Dexus provides the attached presentation that is being used as a basis of discussion with institutional investors in Singapore and Hong Kong. For further information please contact: Investor Relations Me
Slide 2: Two key mega-trends that support Dexus's strategy
Investor For personal use only roadshow presentation Singapore and Hong Kong, 2-4 October 2018 Dexus Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for Dexus Dexus Two key mega-trends that support Dexus’s strategy 1. Growth in cities and urbanisation 2. Growth in globa
Slide 3: What sets Dexus apart?
Dexus What sets Dexus apart? - Quality real estate portfolio across key For personal use only Australian cities - Strong performing Funds management business with access to diverse sources of capital - Customer centric focus - Pipeline of development opportunities to create value over the long term
Slide 4: Strategy
Strategy For personal use only 5 Investor roadshow presentation DRAFT Dexus has ownership or management of 26 Sydney CBD and CBD Fringe assets valued at $10.7 billion1 1. Based on Dexus and Dexus managed fund ownership share t 30 June 2018 (including North Sydney properties). 6 Investor roadshow pre
Slide 5: Funds Management
Funds Management Diversified platform leverages core capabilities with strong outlook Diversified Funds Management platform Leverages core capabilities and has a strong outlook For personal use only +148% $13.9bn - Leverages Dexus’s transactional, development, asset and property management expertise
Slide 6: Sustainability focus
Sustainability focus Net zero emissions by 2030 Latest achievements New energy, new opportunities For personal use only Progressed minimum 2018 survey results Launched goal to achieve net zero 5 star NABERS Energy position for all carbon emissions across rating across First managed property portfoli
Slide 7: Maintaining strong capital management approach
Maintaining strong capital management approach Conservative balance sheet to fund future development pipeline Track record of conservative gearing For personal use only 40% 24.1% Gearing 35% 33.7% 4.2% 29.8% 30.7% Cost of 30% 28.4% 29.0% 28.5% debt 27.2% 26.7% 25% 24.1% 7.0 years Duration of debt 20
Slide 8: National office market
National office market Lead indicators are positive - National enquiries up 10% on FY17 by number1 Dexus group office portfolio exposure For personal use only - National enquiries up 13% on FY17 by area1 - Key four CBDs - Average enquiry size is around 1,000sqm - 39 assets - White collar employment
Slide 9: Sydney CBD office market
Sydney CBD office market Stronger for longer - Sydney enquiries up 100% on FY17 by area1 Sydney CBD office market At 30 June 2018 For personal use only - Supported by state economy and continued growth in finance, Total net lettable area 5.04 million sqm co-working and technology Prime vacancy avera
Slide 10: Sydney CBD office market: Rents in perspective
Sydney CBD office market Rents in perspective - Sydney not as expensive as many other global office markets For personal use only - Companies have steadily increased the density of workers per sqm of office space – so rent paid goes further now than in the past Gross prime face rents Sydney prime gr
Slide 11: Melbourne CBD office market
Melbourne CBD office market Past and future supply Vacancy to fall below Total Completions 4.0% in FY19 Melbourne CBD gross supply before rising to For personal use only (‘000s) sqm Total Completions (Forecast) Pre-commitments 6.2% in FY21 250 and remain below long term average of 7.9% 200 104,000sq
Slide 12: Perth CBD office market
Perth CBD office market Signs of recovery - Enquiries at increased levels Perth CBD office market At 30 June 2018 For personal use only - Underpinned by improving economy sentiment and business Total net lettable area 1.77 million sqm investment Prime vacancy average 16.2% - Market has bottomed with
Slide 13: Co-working
Co-working The office space spectrum - Co-working tenants1 occupy approximately 2% of Dexus’s group office portfolio For personal use only Short-term workspace Long-term workspace DEXUS PLACE CO-WORKING SUITEX FITTED SUITES VACANT FLOOR SERVICED OFFICES VACANT SUITES 1. Includes traditional serviced
Slide 14: Transaction capitalisation rates
Transaction capitalisation rates Healthy spread to bonds remains - Capitalisation rates continue to compress across all sectors, falling to new historic lows For personal use only - Relative pricing to bonds remains attractive with wide spreads still evident Capitalisation rates by sector Capitalisa
Slide 15: Top global transactions
Top global transactions Sydney remains attractive on a global scale San For personal use only Paris Frankfurt Francisco London Chicago Sydney Singapore Hong Kong New York Tokyo Coeur Campus@3333 600 West Wynyard Asia Square The Center Shiba Park Defense Tower 185 (Phase 3) UBS HQ Chicago Ave Place (
Slide 16: Infrastructure spend
For personal use only Developments (Core & Trading) 29 Investor roadshow presentation Infrastructure spend Significant levels of infrastructure spend to support growth Major road and rail projects 2012-2022, $mn1 $ million 18,000 Forecast 16,000 NorthLink WA 14,000 % Increase for next Gateway North
Slide 17: Infrastructure pipeline supports demand
Infrastructure pipeline supports demand Record NSW investment What’s already underway? For personal use only • $87 billion to be spent on transport and infrastructure over the next 4 years 1 • Moorebank Intermodal: (2018) $2 billion project providing road and rail freight services for imports and ex
Slide 18: Mount Street, North Sydney
100 Mount Street, North Sydney Committed development project $231m project cost1 7-8% yield on cost 42,100 square metres 63% leased2 Feb-2019 completion For personal use only 1. Dexus interest in development cost (including cost of land). 2. Includes Heads of Agreement signed post 30 June 2018. 33 I
Slide 19: Waterfront Precinct Masterplan, Brisbane
Waterfront Precinct Masterplan, Brisbane Uncommitted development project $675m project cost1 139,700 square metres mixed use For personal use only 1. Dexus share of development cost. 35 Investor roadshow presentation 140 George Street, Parramatta Uncommitted development project1 A-grade office devel
Slide 20: Industrial landbank acquisitions
Industrial landbank acquisitions Uncommitted development pipeline restocked Replenished group industrial pipeline in core locations through $188 million of acquisitions, with an end value of circa $700 million1 For personal use only 11-167 Palm Springs Road, Ravenhall, VIC 54 Ferndell Street, South
Slide 21: Ravenhall - favourable compared to other precincts
Ravenhall - favourable compared to other precincts Site is comparable to West Melbourne but with improved highway access Ravenhall West Melbourne North Melbourne South-east Melbourne For personal use only 59.6km 77mins 25.6km 24.4km 27mins 26mins 35.2km Ravenhall 22.7km 48mins 29mins 16.2km 22mins 3
Slide 22: Ravenhall - adjacent to large residential catchment
Ravenhall - adjacent to large residential catchment For personal use only Ravenhall Source: Esri - ArcGIS, ABS, Dexus Research. 41 Investor roadshow presentation Granville - around 3.2 million people within 40 minute trucking time Over 70% of total Sydney metropolitan population 40min 30min 20min 10
Slide 23: Granville - favourable compared to other Sydney precincts
Granville - favourable compared to other Sydney precincts 42-45 minutes required from western sites to serve an equal amount of people Origin / Sydney Sydney CBD Port Botany Destination Airport 40min For personal use only 39min 44min 46min Granville 25km 32km 30km Outer West +6mins +5mins +4mins Syd
Slide 24: Trading opportunity
Trading opportunity 201 Elizabeth Street, Sydney 410 room luxury hotel280 residential apartments high-end retail Stage 1 DA granted For personal use only 45 Investor roadshow presentation Trading opportunity 12 Frederick Street, St Leonards (Stage 1) - North Shore Health Hub - specialist healthcare
Slide 25: Trading opportunity Frederick Street, St Leonards (Stage 2)
Trading opportunity 12 Frederick Street, St Leonards (Stage 2) - St Leonards Health and Education Precinct (Stage 2) - combining world-class research facilities with supporting uses For personal use only - Dexus-owned and controlled site co-located with the Royal North Shore Hospital, a major NSW pu
Slide 26: 60 and 52 Collins Street, Melbourne
60 and 52 Collins Street, Melbourne Acquisitions provide a presence in tightly held ‘Paris end’ of the Melbourne CBD Acquired for $230m1 35,000 square metre prime grade development opportunity For personal use only Concept plans of development opportunity 1. Excluding acquisition costs. Settlement o
Slide 27: Ward Street precinct, North Sydney
Ward Street precinct, North Sydney Uncommitted development project Dexus Office Partnership 201 Miller Street, 56 and 66 Berry Street, 22 Ward Street For personal use only Proposed GFA for Site B is up to a maximum of 96,424sqm í 201 Miller Street - 100%* í 56 Berry Street - 100%* í 66 Berry Street
Slide 28: Potential concept opportunities
Potential concept opportunities Longer term opportunities controlled by Dexus Norwest – NSW Axxess Corporate Park - Victoria For personal use only 3 Brookhollow Avenue, Baulkham Hills 38km north west of Sydney CBD 39 mins to Martin Place (by Metro) 19 mins to Macquarie Park (by Metro) 53 Investor ro
Slide 29: Summary
Summary Strategy set up to deliver distribution growth through the cycle - Strong foundations and well positioned for Dexus distribution per security (cents)2 6.9% For personal use only continued success in a rapidly changing cps CAGR business environment 50 47.8 - Highly engaged workforce continuin
Slide 30: For personal use only
For personal use only