Dexus · ASX:DXS
Dexus — DB RREEF Trust — Debt Investor Presentation (April 2005)
36 slides from Dexus's debt investor presentation, Apr 27, 2005
Slide 1: Issue of up to $250 Million RENTS
ISSUE OF UP TO $250 MILLION RENTS Real-estate perpetual ExchaNgeable sTep-up Securities Issuer DB RREEF Funds Management Limited (ABN 24 060 920 783, AFSL No. 238163) in its capacity as responsible entity of DB RREEF RENTS Trust (ARSN 112 705 852) 27 April 2005 1 Farrer Place, Sydney Victor Hoog Ant
Slide 2: Contents
Contents n Offer Summary n Overview of the DB RREEF group n Effect of the Offer n Key terms of RENTS n Offer process n Appendix 1 – estimating Pre-Tax Equivalent IRR n Disclaimer and important information 45 Clarence St, Sydney page 2
Slide 3: Offer Summary
Offer Summary Issuer DB RREEF Funds Management Limited (ABN 24 060 920 783, AFSL No. 238163) in its capacity as responsible entity of DB RREEF RENTS Trust (ARSN 112 705 852)
Slide 4: Offer Summary
Offer Summary Issuer: n DB RREEF Funds Management Limited in its capacity as responsible entity of DB RREEF RENTS Trust, a newly formed trust in the DB RREEF group Security: n Real-estate perpetual ExchaNgeable sTep-up Securities (RENTS) Offer Size: n $200 million plus up to an additional $50 millio
Slide 5: Overview of the DB RREEF group
Overview of the DB RREEF group Issuer DB RREEF Funds Management Limited (ABN 24 060 920 783, AFSL No. 238163) in its capacity as responsible entity of DB RREEF RENTS Trust (ARSN 112 705 852)
Slide 6: Profile of DB RREEF Trust
Profile of DB RREEF Trust Market Profile Operational Profile n Total Market capitalisation of approx A$3.6 billion n 170 properties – office, industrial, retail, car parks n Currently the eighth largest LPT on the ASX S&P n Owns approximately A$6.1 billion of property assets LPT 200 Index n FUM of A
Slide 7: DB RREEF group's property portfolio
DB RREEF group’s property portfolio n As at 31 December 2004, Australian and New Zealand assets accounted for approximately 83% of the value of DB RREEF group’s property portfolio, with the remaining 17% accounted for by US assets n The DB RREEF group’s overall portfolio leases have an average of 5.
Slide 8: Strategy – Asset Portfolio
Strategy – Asset Portfolio n Continued diversification across both geographic regions and asset classes n Leverage RREEF / DBRE international platform n Target international assets 35% - 50% of portfolio n Extracting synergies through integration of property investment, development and management fu
Slide 9: Property Metrics
Property Metrics Australia/NZ Portfolio – Key Attributes USA Portfolio – Key Attributes n Total 77 assets comprising 1.8 million sqm n Total 93 assets comprising 1.8 million sqm locate n Assets diversified over 7 property markets across 18 USA metropolitan areas n Portfolio occupancy in line with na
Slide 10: Australian / NZ Office Portfolio
Australian / NZ Office Portfolio Woodside Plaza 30 The Bond 240 St Georges Terrace, Perth, WA 30 – 34 Hickson Road, Sydney, NSW Governor Phillip Tower, Governor Macquarie Tower Australia Square 1 Farrer Place, Sydney, NSW 264 George Street, Sydney, NSW page 10
Slide 11: Australian Industrial Portfolio
Australian Industrial Portfolio DB RREEF Industrial Estate, Greystanes, NSW DB RREEF Industrial Estate, Dandenong, VIC 1 Foundation Place Pound Road West DB RREEF Office Park, North Ryde, NSW DB RREEF Business Park, Lane Cove, NSW 11 Talavera Road 706 Mowbray Road page 11
Slide 12: Australian Retail Portfolio
Australian Retail Portfolio Whitford City Shopping Centre West Lakes Shopping Centre Whitfords Avenue, Hillarys, WA West Lakes, SA Westfield Westfield Mount Druitt, NSW Hurstville, NSW page 12
Slide 13: US Industrial Portfolio Overview
US Industrial Portfolio Overview n Key Markets (by income): Washington / Baltimore 22% LA / Riverside / San Diego 18% Dallas 11% Cincinnati / N Kentucky 8% Phoenix 7% Orlando 6% Top 6 markets 72% page 13
Slide 14: US Industrial Portfolio
US Industrial Portfolio Bristol Court Guilford Road Bristol Court, Jessup, Maryland Guilford Road, Columbia, Maryland Beaumeade Telecom Brackbill Beaumeade Circle, Ashburn, Virginia Brackbill Boulevard, Mechanicsburg, Pennsylvania page 14
Slide 15: December 2004 results highlights
December 2004 results highlights Statement of financial performance for the half year ended 31 December 2004 Consolidated Pro Forma Group3 ($million) ($million) § Total assets of $6.5bn Net income before fund operating expenses 149.7 213.5 § Stapled Security Responsible Entity Fees & Other Expenses
Slide 16: Effect of the Offer
Effect of the Offer Issuer DB RREEF Funds Management Limited (ABN 24 060 920 783, AFSL No. 238163) in its capacity as responsible entity of DB RREEF RENTS Trust (ARSN 112 705 852)
Slide 17: Use of proceeds and effect of the Offer
Use of proceeds and effect of the Offer n The Offer is part of the DB RREEF group’s ongoing capital management strategy that is aimed at improving its financial flexibility, by reducing Gearing, lengthening its maturity profile and diversifying its funding sources n The proceeds of the Offer will be
Slide 18: Use of proceeds and effect of the Offer (continued)
Use of proceeds and effect of the Offer (continued) Statement of financial position as at 31 December 2004 As at 31 December 2004 Audited DB RREEF Pro forma Pro forma DB RREEF Stapled Trusts Adjustments Stapled Trusts Total current assets 323.8 - 323.8 Total non-current assets 6,186.4 - 6,186.4 Tota
Slide 19: Pro forma distribution coverage
Pro forma distribution coverage n Based on an indicative Distribution Rate of 6.9533%, and assuming $200 million was raised on 1 July 2004 to repay debt, RENTS Distribution Amounts would have been $7.0 million and interest would have been $47.4 million for the half year ended 31 December 2004 n Base
Slide 20: Key terms of RENTS
Key terms of RENTS Issuer DB RREEF Funds Management Limited (ABN 24 060 920 783, AFSL No. 238163) in its capacity as responsible entity of DB RREEF RENTS Trust (ARSN 112 705 852)
Slide 21: Key terms
Key terms Security n Real-estate perpetual ExchaNgeable sTep-up Securities (RENTS) Offer Size: n $200 million plus up to an additional $50 million in oversubscriptions n Quarterly floating rate non-cumulative distribution at the 90 day bank bill rate plus a Margin Distributions: n Expected to be 90%
Slide 22: Distributions
Distributions n Quarterly floating rate non-cumulative distributions: – Margin will be determined through the Book Build based on an indicative range of 1.10% to 1.30% per annum – Market Rate equal to the 90 day bank bill rate – first Distribution Period from Issue Date to 30 September 2005 (inclusi
Slide 23: Pre-tax equivalent internal rate of return
Pre-tax equivalent internal rate of return Based on the assumptions outlined in appendix 1, the Pre-Tax Equivalent IRR is estimated for the following types of investors in the tables below. You should be aware that this example and the associated assumptions are for illustrative purposes only. Actua
Slide 24: Holder protection
Holder protection Guarantee n Subordinated Guarantee from the responsible entity of each DB RREEF Stapled Trust (each a Guarantor) n The Guarantors guarantee the obligations of the Issuer and Transferee of RENTS on Exchange to pay money which becomes due and payable to Holders Distribution Stopper n
Slide 25: Offer process
Offer process Issuer DB RREEF Funds Management Limited (ABN 24 060 920 783, AFSL No. 238163) in its capacity as responsible entity of DB RREEF RENTS Trust (ARSN 112 705 852)
Slide 26: Offer process
Offer process n Offer of $200 million plus up to an additional $50 million in oversubscriptions n Margin determined via institutional and broker firm Book Build – indicative Book Build range of 1.10% to 1.30% over the 90 day bank bill rate n Book Build – opens 9.00am Thursday 5 May – closes: – for B
Slide 27: Pricing benchmarks
Pricing benchmarks 500 RENTS (not rated) - pre-tax 450 equivalent margin range 3 400 350 Spread (bps) 300 250 MPNCA (not rated) 1 200 2 STOPA (BBB-) 150 RENTS (not rated) - cash margin 1 MAZPA (BBB-) range 1 100 LEIGA (BBB-) 50 - - 1 2 3 4 5 6 7 8 Term (years) 1. Gross–pay. 2. Franked. 3. Assumes in
Slide 28: Syndicate structure
Syndicate structure Joint Lead Managers Co-Managers ANZ Securities Limited CommSec Macquarie Equities Limited National OnLine Trading Limited n Institutional allocations can only be received from the Joint Lead Managers page 28
Slide 29: Indicative timetable
Indicative timetable Event Date Record date for Eligible Stapled Security holders 26 April 2005 Announcement of Offer & PDS Lodged with ASIC: 27 April 2005 Roadshow: 27 – 29 April 2005 Book Build open: 5 May 2005 (9am) Margin announced and allocation advices dispatched: 6 May 2005 Opening Date (publ
Slide 30: Contacts
Contacts Deutsche Bank Grant Bush (02) 9258 2657 Hamish Kelly (02) 9258 1831 Guy Fergusson (02) 9258 1701 Merrill Lynch Paul Harris (02) 9226 5519 Aaron Lamshed (02) 9226 5707 page 30
Slide 31: Appendix 1 – estimating Pre-Tax Equivalent IRR
Appendix 1 – estimating Pre-Tax Equivalent IRR Issuer DB RREEF Funds Management Limited (ABN 24 060 920 783, AFSL No. 238163) in its capacity as responsible entity of DB RREEF RENTS Trust (ARSN 112 705 852)
Slide 32: Pre-tax equivalent internal rate of return
Pre-tax equivalent internal rate of return investor with 48.5% marginal tax rate Example for an individual with an assessable income greater than $70,000 (48.5% marginal tax rate) Date Gross Tax Taxable Income tax on CGT Post tax cash flows deferred component taxable liability cash flows per RENTS c
Slide 33: Pre-tax equivalent internal rate of return
Pre-tax equivalent internal rate of return complying superannuation fund with 15% tax rate Example for a complying superannuation fund (15% tax rate) Date Gross Tax Taxable Income tax on CGT Post tax cash flows deferred component taxable liability cash flows per RENTS component component per RENTS $
Slide 34: Pre-tax equivalent internal rate of return
Pre-tax equivalent internal rate of return PLEASE NOTE: The Pre-Tax Equivalent IRR is not a forecast, projection or prediction. It is dependent on a number of factors including the actual level of the Distribution Amount which is tax deferred, the applicable tax rate (present and future), the level
Slide 35: Pre-tax equivalent internal rate of return (continued)
Pre-tax equivalent internal rate of return (continued) For the purposes of estimating the Pre-Tax Equivalent IRR, we have assumed: n investors acquire RENTS on 3 June 2005 under this Offer, and hold them on capital account until 15 July 2012; n investors dispose of RENTS on 15 July 2012 on ASX for $
Slide 36: Disclaimer & important notice
disclaimer & important notice This document contains information regarding the proposed offering by DB RREEF Funds Management Limited, in its capacity as responsible entity of DB RREEF RENTS Trust (Issuer), of Real-estate perpetual ExchaNgeable sTep-up Securities called RENTS. All information contai
DB RREEF Trust — Debt Investor Presentation (April 2005) on 6ix