Dexus · ASX:DXS
Dexus — DEXUS Property Group — H1 FY2010 Earnings Presentation
36 slides from Dexus's earnings presentation, Feb 24, 2010
Slide 1: Half Year Results Appendices
2009 DEXUS Property Group HALF YEAR results appendices DEXUS Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for DEXUS Property Group
Slide 2: Index
INDEX Balance Sheet 3-4 Income statement reconciliations 5-6 Valuations 7-8 FX rates 9 Key financial risk management measures 10-12 Debt profile 13 Hedging 14-15 Cross currency swap maturity 16 Portfolio composition 17 Acquisitions 18 Disposals 19 Developments 20-21 Whirlpool investment program 22 M
Slide 3: Balance Sheet
BALANCE SHEET Dec 2009 June 2009 $’m $’m Cash & receivables 105 120 Direct property portfolio 7,300 7,737 Other (including derivative financial instruments & intangibles) 426 494 Total assets 7,831 8,351 Payables & provisions 253 290 Interest bearing liabilities 2,405 2,509 Other (including derivati
Slide 4: Net Asset Value Composition
NET ASSET VALUE COMPOSITION Property devaluations of $286 million or 6 cents of NTA 2009 Half Year Results appendices— Slide 4
Slide 5: Interest Reconciliation
INTEREST RECONCILIATION Dec 2009 $’m $’m Interest paid/payable 60.8 Other finance costs 2.5 Interest expense 63.3 Realised interest rate swaps 23.9 Unrealised interest rate swaps MTM (20.3) Net fair value (gain) loss of interest rate swaps 3.6 Total interest expense 66.9 Less: interest capitalised (
Slide 6: Profit to Funds From Operations Reconciliation
PROFIT TO FUNDS FROM OPERATIONS RECONCILIATION Group Property Mgmt MTM Depr’n & Straight Deferred P/L on sale RENTS Current Distributable revals/ rights derivs & line rent of invest Tax & consolidated impairm’t impairm’t amort’n tax capital dist’n earnings FX adjust prop Other Revenue from ordinary
Slide 7: Valuation Metrics
VALUATION METRICS Cap rate Cap rate Cap rate IRR IRR IRR Devaluation Dec 09 Jun 09 change Dec Jun change change1 % % % bps 09 09 bps % % Australian office 7.6 7.7 10 9.2 9.0 20 (2.0%) Australian industrial 8.8 8.8 — 10.1 9.9 20 (1.9%) Australian retail 7.0 6.8 (20) n/a 9.0 n/a (5.2%) North American
Slide 8: Revaluation Summary
REVALUATION SUMMARY Office Industrial Retail North Europe Total America $’m $’m $’m $’m $’m $’m P&L Revaluations — investment properties External valuations (10) (13) — (75) (8) (106) Internal valuations (12) (8) (14) (67) — (101) Sub total (22) (21) (14) (142) (8) (207) P&L revaluations — developme
Slide 9: Exchange Rates Used in Statutory Accounts
EXCHANGE RATES USED IN STATUTORY ACCOUNTS Dec 2009 June 2009 Dec 2008 USD 0.8969 0.8114 0.6928 EUR 0.6241 0.5751 0.4919 Balance Sheet NZD 1.2354 1.2428 1.1955 CAD 0.9434 0.9379 0.8441 USD 0.8699 0.7348 0.7607 EUR 0.5995 0.5398 0.5473 Profit & Loss NZD 1.2436 1.2257 1.2072 CAD 0.9375 0.8580 0.8619 20
Slide 10: Key Financial Risk Management Measures
KEY FINANCIAL RISK MANAGEMENT MEASURES Dec 2009 June 2009 Gearing1 31.9% 31.2% Covenant gearing1 (covenant2 <55%) 32.5% 32.0% Headroom (approx)3 $1.5bn $1.5bn Average maturity of debt 2.8 yrs 2.6 yrs4 Average maturity of interest hedge 6.1 yrs 6.2 yrs Weighted average cost of debt5 6.1% 5.4% Debt pl
Slide 11: Debt Profile
DEBT PROFILE Facility limit Drawn Maturity dates Security Currency A$’m A$’m Syndicated bank debt 300 59 Mar 10 Unsecured Multi-ccy, A$ limit1 234 — Sept 10 Unsecured Multi-ccy, US$ limit2 Bilateral bank debt 360 — Dec 10 Unsecured Multi-ccy, A$ limit1 145 — Sept 11 Unsecured Multi-ccy, A$ limit1 17
Slide 12: Facility Mix
FACILITY MIX No off balance sheet debt Facility mix (no look through adjustments) All unsecured facilities rank pari passu All secured facilities are non-recourse to DEXUS 1. US$ loans predominantly from insurance companies, secured by mortgages over property 2009 Half Year Results appendices— Slide
Slide 13: Debt Profile by Jurisdiction
DEBT PROFILE BY JURISDICTION Weighted Interest bearing Cross Total liabilities Interest average liabilities currency after cross ccy hedge cost of debt1 (incl RENTS) swaps2 swaps2 (incl RENTS) duration % $’m $’m $’m years Australia/New Zealand 6.18% A$1,145 A$(183) A$962 4.6 USA 6.15% US$1,242 — US$
Slide 14: Interest Rate Hedging Profile
INTEREST RATE HEDGING PROFILE HY10 FY10 FY11 FY12 FY13 FY14 Avg FY15+4 A$’m average hedged1,3 741 742 771 724 567 485 216 A$ hedge rate (ex margin)2,3 5.16% 4.93% 5.02% 4.97% 5.29% 5.74% 6.18% US$’m average hedged1 1,229 1,208 959 876 1,026 1,049 511 2 5.43% 5.17% 5.37% 6.05% 5.55% 5.43% 4.87% US$ h
Slide 15: Foreign Income Hedging Profile
FOREIGN INCOME HEDGING PROFILE HY10 FY10 FY11 FY12 FY13 Combined hedging profile 95% US$ hedging profile1 100% Foreign exchange contracts (US$m) 2 3.5 4.3 0.0 4.4 2.7 Average A$/US$ rate2 0.7165 0.7152 n/a 0.7098 0.6657 NZ$ hedging profile3 41% Foreign exchange contracts (NZ$m) 2.0 4.0 2.0 0.0 0.0 A
Slide 16: Cross Currency Swap Maturity Profile
CROSS CURRENCY SWAP MATURITY PROFILE FY10 FY11 FY12 maturities (m) 0 40 40 contract rate n/a 0.6160 0.6145 CAD maturities (C$m) 35 15 0 C$ contract rate 0.8418 0.9657 n/a No US$ cross currency swaps currently in place 2009 Half Year Results appendices— Slide 16
Slide 17: Portfolio Composition (Income and Lease Expiry)
PORTFOLIO COMPOSITION (INCOME AND LEASE EXPIRY) % total FY10 FY11 FY12 FY13 FY14+ income Australian office 49% 4% 4% 5% 7% 29% Australian industrial 21% 2% 4% 4% 3% 8% Retail 4% 0% 1% 0% 1% 2% North American industrial 22% 4% 3% 3% 2% 10% European industrial 4% 1% 1% 1% 1% 0% Total 100% 11% 13% 13%
Slide 18: Acquisitions
ACQUISITIONS Interest % Acquisition Notes A$’m Australia1 2-4 Military Road, Matraville NSW 100 46.12 Dec 2009 North America Whirlpool, Columbus, Ohio 100 80.4 July 2009 Whirlpool, Seattle, Washington 100 76.5 Oct 2009 Whirlpool, Atlanta, Georgia 100 79.8 Nov 2009 Total acquisitions 282.8 1 Greystan
Slide 19: Disposals
DISPOSALS No of Properties Proceeds Notes A$’m Includes 1.6% of Bligh St Australian office 2 58.3 to DWPF Includes post balance date Australian industrial 5 50.1 disposals Australian retail 1 256.5 Settles March 2010 European industrial 1 1.6 Includes post balance date North American industrial 22 2
Slide 20: Developments Underway
DEVELOPMENTS UNDERWAY Country Area Est total Est. cost to Est. yield Est. Sqm cost1 completion on total completion A$’m A$’m cost date % Office 123 Albert Street, Brisbane QLD Australia 38,000 348 191 6.8 Dec 2010 1 Bligh Street, Sydney NSW1 Australia 43,000 214 121 7.0 May 2011 Total office 81,000
Slide 21: Developments – Uncommitted Pipeline
DEVELOPMENTS – UNCOMMITTED PIPELINE Country Building Project est. Project to Projected area A$’m est. yield on sqm completion project est. A$’m cost % Industrial Greystanes, Western Sydney NSW1 Australia 202,265 328 194 9 DEXUS Industrial Estate, Laverton North VIC Australia 373,104 373 300 9 Axxess
Slide 22: Whirlpool Investment Program Completed
WHIRLPOOL INVESTMENT PROGRAM COMPLETED Acquisition Area Acquisition date ‘000 sqm cost $m Acquired to date Orlando, Florida USA Jun 07 47 US$25.1 Toronto, Ontario Canada Dec 07 70 C$71.4 Perris, California USA Jan 08 157 US$128.6 Columbus, Ohio USA Jul 09 145 US$64.6 Seattle, Washington USA Oct 09 8
Slide 23: Australia – Major Tenants by Income
AUSTRALIA – MAJOR TENANTS BY INCOME % of Sector % of Sector Australian Office Australian Industrial NPI NPI 1 Woodside Energy Ltd 8.2% 1 Wesfarmers Limited 6.4% 2 S&K CarPark Management Pty Ltd 7.3% 2 Elders Ltd 5.4% 3 State of NSW 4.7% 3 Visy Steel Products 3.7% 4 Commonwealth of Australia 4.4% 4 I
Slide 24: International – Major Tenants by Income
INTERNATIONAL – MAJOR TENANTS BY INCOME % of Sector % of Sector North America Industrial Europe Industrial NPI NPI 1 Whirlpool Corporation 26.5% 1 Edeka Südwest 19.5% 2 US Government 1.7% 2 Solideal Deutschland GmbH 9.8% 3 Skechers USA, Inc. 1.4% 3 Karstadt Vermietungsges. GmbH 7.7% 4 Square D Compa
Slide 25: Australian & New Zealand Office Lease Expiry Profile
AUSTRALIAN & NEW ZEALAND OFFICE Lease expiry profile 15.5% 18% 14.8% 14.6% 14.1% 16% 13.3% % of portfolio available for lease 12.7% 14% 11.8% 10.7% 10.1% 12% 9.6% 9.7% 9.3% 9.0% 10% 7.1% 6.3% 6.1% 8% 5.3% 4.3% 4.2% 6% 3.9% 3.5% 4% 1.8% 1.4% 0.8% 2% 0% Vacant <1 Year <2 Years <3 Years <4 Years <5 Yea
Slide 26: Australian Industrial Lease Expiry Profile
AUSTRALIAN INDUSTRIAL Lease expiry profile 30% 24.4% % of portfolio available for lease 21.3% 25% 18.0% 20% 14.1% 13.7% 15% 10.7% 9.6% 9.1% 8.4% 7.8% 7.7% 7.1% 7.1% 10% 5.9% 6.0% 4.9% 4.2% 4.2% 4.1% 4.0% 2.7% 2.3% 5% 1.4% 1.4% 0% Vacant <1 Year <2 Years <3 Years <4 Years <5 Years <6 Years <7 Years <
Slide 27: North American Industrial Lease Expiry Profile
NORTH AMERICAN INDUSTRIAL Lease expiry profile 16.8% 18% 15.7% 16% 14.3% 14% 12.7% 12.2% 12.2% % of portfolio available for lease 11.4% 11.3% 10.8% 12% 10.6% 9.4% 9.5% 10% 7.7% 7.4% 8% 6.4% 5.9% 5.6% 6% 4.9% 3.4% 4% 2.8% 3.0% 2.3% 2.3% 1.6% 2% 0% Vacant <1 year <2 years <3 years <4 years <5 years <6
Slide 28: European Industrial Lease Expiry Profiles
EUROPEAN INDUSTRIAL Lease expiry profiles Germany 30.7% 35% 28.9% 28.3% 30% 24.1% 25% 18.3% 15.5% 20% 12.0% 12.3% 15% 9.3% 7.5% 10% 5.0% 3.8% 3.3% 1.1% 5% 0.0% 0.0% 0% Vacant <1 year <2 years <3 years <4 years <5 years <6 years <7 years Area Income France 29.1% 35% 24.2% 30% 22.2% 22.4% 20.1% 25% 18
Slide 29: Australia & New Zealand Office
AUSTRALIA & NEW ZEALAND OFFICE Property classification1 Diversity of tenants2 Geographical weighting1 1. By book value 2. By income 2009 Half Year Results appendices— Slide 29
Slide 30: Industrial - Australia
INDUSTRIAL - AUSTRALIA Geographical weighting1 Property classification2 1. By book value 2. By income 2009 Half Year Results appendices— Slide 30
Slide 31: Europe
EUROPE HY Dec 2009 HY Dec 2008 Net property income 6.0m 6.3m Like for like income growth (5.2%) (2.8%) Occupancy – by area 87.8% 87.7% Occupancy – by income 92.1% 90.6% Lease duration 2.6 yrs 3.3 yrs Portfolio value 133m 160m Average cap rate 8.2% 7.7% 1. Refer to slide 9 for exchange rates 2009 Hal
Slide 32: Glossary
GLOSSARY Constant currency: Items shown at Constant currency for Dec 09 have been restated using the Dec 08 average FX rates for comparative purposes. Distribution adjustments: Includes all distribution adjustments except for revaluations and impairments, unrealised MTM of derivatives, loss on sale
Slide 33: Title Slide Information
TITLE SLIDE INFORMATION IMPORTANT HEADER (Trebuchet Bold 28pt) Sub title (Trebuchet 16 pt) Victor Hoog Antink Chief Executive Officer DXS 2009 Annual Results — Slide 33
Slide 34: Important Information
IMPORTANT INFORMATION 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 this presentation includin
Slide 35: Half Year Results Appendices
2009 DEXUS Property Group HALF YEAR RESULTS APPENDICES DEXUS Funds Management Limited ABN 24 060 920 783 2009 238163 AFSL Half Year Results appendices— as responsible Slide 35 entity for DEXUS Property Group
Slide 36: www.dexus.com
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