Dexus · ASX:DXS

Dexus — DEXUS Property Group — Bank of America Merrill Lynch 2013 Global Real Estate Conference

39 slides from Dexus's conference presentation, Sep 11, 2013

  1. Slide 1: ASX release: 2013 Global Real Estate Conference presentation

    DEXUS Property Group (ASX: DXS) ASX release 11 September 2013 2013 Global Real Estate Conference presentation For personal use only DEXUS Property Group (DEXUS) today releases an overview presentation on the Group that will be presented to investors at the Bank of America Merrill Lynch 2013 Global R

  2. Slide 2: DEXUS Property Group – BofA Merrill Lynch Global Real Estate Conference

    DEXUS PROPERTY GROUP BANK OF AMERICA MERRILL LYNCH – GLOBAL REAL ESTATE CONFERENCE SEPTEMBER 2013 For personal use only DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS AFSL Property 238163 Group — entity as responsible Bank of forAmerica Merrill Group DEXUS Property Lynch — Global Real Estat

  3. Slide 3: Agenda

    AGENDA For personal use only  Overview  Strategy  Portfolio overview  Third Party Funds Management  Capital management  Financial results  Market outlook  Summary DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013 Slide 2

  4. Slide 4: DEXUS Property Group overview

    OVERVIEW DEXUS Property Group For personal use only  One of Australia’s leading real estate groups investing in $13.4 billion of high quality office, industrial and retail properties including — DXS, a $7.3 billion portfolio investing directly in high quality Australian office and industrial proper

  5. Slide 5: DEXUS Property Group platform

    OVERVIEW DEXUS Property Group For personal use only DEXUS Property Group platform $13.4bn AUM Public and private capital 235 property professionals 123 properties 2,975,545sqm NLA Office Industrial Retail Development pipeline3 $7.8bn $2.5bn $3.1bn $2.9bn DXS portfolio investments Third Party Funds M

  6. Slide 6: Group highlights for the year ended June 2013

    OVERVIEW Group highlights for the year ended 30 June 2013 For personal use only DXS investor returns 22.1% 12.1% 11.2% Total security holder return for Growth in distribution Return on equity year to 30 June 2013 per security Capital Total Group DXS portfolio management property portfolio 1.3% 29.0%

  7. Slide 7: Strategy

    STRATEGY For personal use only DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013 Slide 6

  8. Slide 8: A clear and focused strategy

    STRATEGY A clear and focused strategy For personal use only DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013 Slide 7

  9. Slide 9: Repositioned to quality office assets – divested offshore and reinvested in Australia

    STRATEGY Repositioned to quality office assets – divested offshore and reinvested in Australia Grosvenor Place, 225 George Street, Sydney NSW For personal use only  Exited US industrial market ahead of expected timeframe — Part of revised strategy to re-focus on core Australian markets — Realised U

  10. Slide 10: Portfolio overview

    PORTFOLIO OVERVIEW For personal use only DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013 Slide 9

  11. Slide 11: Office portfolio — 78% of balance sheet with 87% prime grade

    PORTFOLIO OVERVIEW Office portfolio — 78% of balance sheet with 87% prime grade For personal use only T: Grosvenor Place, 225 George Street, Sydney 1 Bligh Street, Sydney, Premium grade $250.3m (DXS 33%) Governor Phillip & Macquarie Towers, 1 Farrer Place, Sydney Premium grade $289.2m (DXS 25%) Prem

  12. Slide 12: Office portfolio

    PORTFOLIO OVERVIEW Office portfolio For personal use only  Prime quality $5.7bn office portfolio Premium and A-grade represents 87% of total value1 Car parks  Largest listed office portfolio in Australia B Grade 3% Land <1% 6% — Largest institutional owner of office in Sydney CBD Premium 39% — DXS

  13. Slide 13: Office portfolio — lease expiry profile by income

    PORTFOLIO OVERVIEW Office portfolio — lease expiry profile by income For personal use only 16% 14% 13.2% 12.2%1 12% 10.7%1 10.4% 9.6% 9.4% 10% 8% 5.4% 5.6% 6% 4% 2% 0% Vacant FY14 FY15 FY16 FY17 FY18 Key future expiries – at 30 June 2013 Vacant % FY14 % FY15 % FY16 % FY17 % ex-ATO Corrs NSW Gov’t IB

  14. Slide 14: Industrial portfolio — 22% of balance sheet

    PORTFOLIO OVERVIEW Industrial portfolio — 22% of balance sheet For personal use only T: 27 Distribution Drive, Laverton North $6.5m (DXS 50%) T: 1-3 Distribution Drive, Laverton North $6.0m (DXS 50%) T: 3 Basalt Road, Greystanes $13.7m (DXS 50%) B: 2-10 Distribution Drive, Laverton North $8.0m (DXS

  15. Slide 15: Industrial portfolio

    PORTFOLIO OVERVIEW Industrial portfolio For personal use only  Quality $1.6bn industrial portfolio Diverse mix of building types Land and development  Focused on 48 properties located in major industrial Data centres 8% hubs and arterial roadways in Sydney, Melbourne and 3% Business Brisbane marke

  16. Slide 16: Development and fund-through pipeline — Group

    PORTFOLIO OVERVIEW Development and fund-through pipeline — Group For personal use only DXS developments and fund-throughs Total est cost1 Est cost to complete1 Completed developments for trading $55m $6m Development under construction $111m $46m Future developments $556m $423m Fund-through investmen

  17. Slide 17: DXS development activity

    PORTFOLIO OVERVIEW DXS development activity For personal use only  Strong development track record and substantial pipeline Total estimated project cost DXS developments and fund-throughs Total est Est cost to FY14 FY15 FY16+ cost1 complete1 57-65 Templar Road, Erskine Park $38m $5m $38m 163-183 Vi

  18. Slide 18: Third Party Funds Management

    THIRD SLIDE TITLE PARTYHEADER FUNDS MANAGEMENT For personal use only 2013 DEXUS Property Group — Half Bank Year Results of America Presentation Merrill — Slide Lynch — Global 17 Estate Conference September 2013 Real Slide 17

  19. Slide 19: Third Party Funds Management overview

    THIRD PARTY FUNDS MANAGEMENT Overview For personal use only  $6.1bn funds management platform comprising Third Party Funds Management platform — $4.3bn DEXUS Wholesale Property Fund (DWPF) - diversified DWPF Australian $4.3bn — $1.6bn Australian mandate – diversified Industrial Partnership — $0.5bn

  20. Slide 20: Capital management

    TITLE SLIDE CAPITAL HEADER MANAGEMENT For personal use only 2013 DEXUS Property Group — Half Bank Year Results of America Presentation Merrill — Slide Lynch — Global 19 Estate Conference September 2013 Real Slide 19

  21. Slide 21: Prudent capital management

    CAPITAL MANAGEMENT Prudent capital management For personal use only  Active management of capital and risk with a conservative Debt maturity profile2 A$m and disciplined approach 800  Highly experienced team with proven track record 600  Solid stable credit ratings — Standard & Poor’s BBB+ and 40

  22. Slide 22: Financial results

    TITLE SLIDERESULTS FINANCIAL HEADER For personal use only 2013 DEXUS Property Group — Half Bank Year Results of America Presentation Merrill — Slide Lynch — Global 21 Estate Conference September 2013 Real Slide 21

  23. Slide 23: Financial results

    FINANCIAL RESULTS For personal use only 12 months to 12 months to 12 months to 12 months to 30 June 2013 30 Jun 2012 30 Jun 2011 30 Jun 2010 Key financial metrics Statutory net profit $514.5m $181.1m $553.0m $31.4m FFO1 $365.4m $367.8m $358.0m $350.0m FFO per security 7.75c 7.65c 7.40c 7.30c Distrib

  24. Slide 24: Market outlook

    TITLE SLIDE MARKET HEADER OUTLOOK For personal use only 2013 DEXUS Property Group — Half Bank Year Results of America Presentation Merrill — Slide Lynch — Global 23 Estate Conference September 2013 Real Slide 23

  25. Slide 25: Office markets subdued in FY14 with upside in demand FY15

    MARKET OUTLOOK Office markets subdued in FY14 with upside in demand FY15 For personal use only  Leasing enquiry and net absorption subdued, tenants Office – supply/demand forecast (4 CBDs) taking longer to make decisions ‘000 sqm 500 12%  Vacancy rates have risen 400 300 8%  Supply is expected to

  26. Slide 26: Industrial markets maintain good occupancy

    MARKET OUTLOOK Industrial markets maintain good occupancy For personal use only  Demand in the industrial sector constrained Consumption – to drive rental growth % p.a.  Improved outlook for late FY14 and FY15 20% 6% forecast 4%  Demand to be driven by tenants relocating and seeking 10% 2% improv

  27. Slide 27: Summary

    TITLE SLIDE HEADER SUMMARY For personal use only 2013 DEXUS Property Group — Half Bank Year Results of America Presentation Merrill — Slide Lynch — Global 26 Estate Conference September 2013 Real Slide 26

  28. Slide 28: Summary: enhanced portfolio quality and diversity

    SUMMARY For personal use only  Enhanced portfolio quality and diversity  Experienced management team with strong corporate and leasing backgrounds will continue to drive high performance  Strong Third Party Funds Management business  Market guidance for FY141 — FFO per security 8.15 cents, repre

  29. Slide 29: Appendices

    TITLE SLIDE DEXUS HEADER PROPERTY GROUP APPENDICES For personal use only 2013 DEXUS Property Group — Half Bank Year Results of America Presentation Merrill — Slide Lynch — Global 28 Estate Conference September 2013 Real Slide 28

  30. Slide 30: Financial results: FFO reconciliation

    FINANCIAL RESULTS For personal use only 30 June 2013 30 June 2012 $m $m Statutory net profit 514.5 181.1 Net fair value gain of investment properties1 (220.6) (82.8) Impairment of inventories 2.2 14.9 Net fair value loss of derivatives 17.7 97.1 Net loss on sale of investment properties 3.6 32.6 Fin

  31. Slide 31: Kings Square, Perth overview

    KINGS SQUARE, PERTH Overview For personal use only  Comprises three A-grade buildings providing over 52,000sqm of office and retail accommodation and 134 parking spaces  Total estimated cost of $434.8 million and an initial yield on completion of 8.0%  Jointly acquired by DXS and DWPF in May 2013

  32. Slide 32: Kings Square, Perth acquisition metrics

    KINGS SQUARE, PERTH Compelling acquisition metrics For personal use only Total on Kings Square 1 Kings Square 2 Kings Square 3 completion Acquisition price1 ($m) 200.7 173.8 60.3 434.8 Lettable area (sqm)2 23,156 20,440 9,185 52,781 Acquisition rate (per sqm) $8,669 $8,503 $6,565 $8,239 Capitalisati

  33. Slide 33: Kings Square, Perth

    KINGS SQUARE, PERTH For personal use only DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013 Slide 32

  34. Slide 34: Queen Street, Brisbane overview

    480 QUEEN STREET, BRISBANE Overview For personal use only  DXS and DWPF to jointly acquire 480 Queen Street, Brisbane fund-through investment – 55,561sqm1 premium office asset to be developed by Grocon  Project acquired via a de-risked fund-through structure – Purchase price a factor of lease comm

  35. Slide 35: Queen Street, Brisbane

    480 QUEEN STREET, BRISBANE For personal use only 480 Queen Street DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013 Slide 34

  36. Slide 36: Sydney CBD office market — supply and availability

    For personal use only 30 70 110 -50 -10 115 Bathurst (Sydney Water) 20 Martin Pl 48-50 Martin Pl 190-200 George St Proposed 99 Elizabeth St Source: DEXUS Research, Savills. 161 Castlereagh St 19 Martin Pl (MLC centre) FY13 255 George St (NAB building) 255 Elizabeth St Withdrawn 1 Farrer Pl (GPT) 135

  37. Slide 37: Australian market trends in FY14/FY15

    MARKET OUTLOOK — OFFICE & INDUSTRIAL Australian market trends in FY14/FY15 For personal use only Australian office markets Australian industrial markets To improve from late FY14 in line with To improve FY14/FY15 in line with Tenant demand confidence & employment forecasts confidence & growth in con

  38. Slide 38: Important information

    IMPORTANT INFORMATION For personal use only  This presentation is issued by DEXUS Funds Management Limited (DXFM) in its capacity as responsible entity of DEXUS Property Group (ASX:DXS). It is not an offer of securities for subscription or sale and is not financial product advice.  Information in

  39. Slide 39: DEXUS Property Group

    DEXUS PROPERTY GROUP BANK OF AMERICA MERRILL LYNCH GLOBAL REAL ESTATE CONFERENCE SEPTEMBER 2013 For personal use only DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS Property AFSL 238163 Group — entity as responsible Bank of forAmerica Merrill Group DEXUS Property Lynch — Global Real Estate

DEXUS Property Group — Bank of America Merrill Lynch 2013 Global Real Estate Conference on 6ix