Dexus Industria Reit · ASX:DXI
Dexus Industria Reit — HY22 Earnings Presentation
37 slides from Dexus Industria Reit's earnings presentation, Feb 9, 2022
Slide 1: Dexus Industria REIT ASX release: 2022 Half Year Results presentation
Dexus Industria REIT (ASX:DXI) ASX release 9 February 2022 2022 Half Year Results presentation and property synopsis Dexus Industria REIT (DXI) releases its 2022 Half Year Results presentation. An investor conference call will be webcast at today at 10.30am on www.dexus.com/investor-centre The prope
Slide 2: Dexus Industria REIT
Dexus Industria REIT | dexus ABP xus AssegMiGnagement Lint ACN 080674479) ASE: 251500 S responsi Bee for indystric Tem industri C <Ligited . KEN C10 Tales i
Slide 3: Acknowledgement of country
Dexus Industria REIT | dexus Acknowledgement of country Dexus Industria REIT acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing contribution to land, waters and community. We pay our respects to First Nations Elders past, prese
Slide 4: Agenda
Dexus Industria RET | dexus Agenda El Highlights page 4 Ei Financial overview page 9 3 | Portfolio performance and market dynamics page 13 =a —— By summary page 20 Appendices page 22
Slide 5: Highlights
Slide 6: HY22 highlights
HY22 highlights Active period of leasing and transactions OREN # ar, FFO of $24.8 million up 25.5% (% on track to meet FY22 guidance FFO of 18.1-18.5cps and distribution of 17.3cps NTA per security up 10.9% to $3.55! driven by $91.0 million of valuation uplifts? Qn Record portfolio leasing rr 45,700
Slide 7: Vision and strategy
Dexus Industria REIT | dexus Vision and strategy Generating outperformance through active management and development Vision To be Australia’s premier industrial REIT generating superior risk-adjusted returns Strate Leveraging the superior asset management, transactional, development and ESG capabili
Slide 8: ESG update
ESG update Dexus Industria RET | dexus Certified carbon neutral across DXI portfolio and operations Today » Achieved carbon neutral status in June 2021 (and retained) >» Proactive engagement with tenants on sustainability initiatives » Investment in solar across the portfolio has doubled energy gene
Slide 9: Track record of value creation
Dexus Industria REIT | dexus Track record of value creation Successful delivery of strategy has supported consistent growth Leasing achieved (sqm) 61,800! 42,100 28,900 13,600 13,700 FYI8 FYI9 FY20 FY21 HY22 NTA per security? ($) 8.4% CAGR Gs) Dec17 Decl8 Decl? Dec20 Dec21 Management track record »
Slide 10: Financial overview
Slide 11: HY22 financial result
HY22 financial result Dexus Industria REIT Portfolio resilience and positioning has driven strong financial outcomes dexus Profit & loss HY22 HY21 Change Statutory net profit ($m) $113.7 $31.9 A 257.0% —___* Driven by $91.0 million of property valuation gains? FFO ($m) $24.8 $19.8 4 25.5% ———* | »._
Slide 12: Balance sheet and capital management
Balance sheet and capital management Maintaining balance sheet flexibility to fund growth opportunities » Balance sheet well positioned to support growth with 28.5% gearing, below the target 30 — 40% band » Deploying capital to the most attractive opportunities, including utilising the active on-mar
Slide 13: Portfolio valuation movements
Dexus Industria RET | dexus Portfolio valuation movements Active asset management and strong markets supporting favourable valuation outcomes > 8.3% like-for-like increase ($91.0m) Portfolio valuation summary - 31 December 2021 on prior corresponding period book values across the portfolio? 31Dec 20
Slide 14: Portfolio performance and market dynamics
Slide 15: Key portfolio metrics
Key portfolio metrics Dexus Industria REIT | dexus Resilient portfolio supported by contracted rental growth and income visibility Bnd S & oy) ow ® & >99% 3%t 2.5% gross rent contracted rent like-for-like collection increases for 74% of NOI growth? the portfolio? Lease expiry profile (% by income) L
Slide 16: Creating Australia's premier industrial property portfolio
Dexus Industria RET | dexus Creating Australia’s premier industrial property portfolio $584 million of transformational acquisitions » Acquisition of 55 industrial assets at an average passing yield of 5.0% and a WALE of 7.1 years 33.3% interest 100% + 2 ‘ 50% m ~ ae interest portfolio of assets! of
Slide 17: Developments
Developments Leveraging Dexus’s development expertise to deliver future growth >» Industrial developments in Sydney at Moorebank and Kemps Creek provide opportunities for tenants seeking last mile distribution hubs, with excellent connectivity across Sydney » Development progress at newly acquired J
Slide 18: Industrial performance
Dexus Industria RET | dexus Industrial performance Strong performance driven by active management HY22 key statistics » Performance driven by asset management capability, delivering on business plans and strong market conditions — recorded 7.4% like-for-like NOI growth $1 4bn {oh 4.73% >» Reduced FY
Slide 19: Chart title
› › 120 20% 115 16% 110 12% 105 8% 100 95 4% 90 0% Q411 Q113 Q214 Q315 Q416 Q118 Q219 Q320 Q421 Prime existing rents (LHS) Average prime incentives (RHS)
Slide 20: Business parks performance
Business parks performance Delivering strong leasing outcomes Brisbane Technology Park Performance underpinned by strategy of targeting sub-200sqm » Location and product continues to underpin retention levels at 81% » Life science occupiers continue to expand at BTP, driving over 2,000sqm of deals »
Slide 21: Summary
Slide 22: Summary and FY22 guidance
Dexus Industria RET | dexus Summary and FY22 guidance Delivering long-term value to securityholders $1.8 billion high-quality portfolio predominantly weighted to industrial properties supported by $378 million development pipeline 6; Track record of disciplined growth and delivering securityholder r
Slide 23: Appendices
Slide 24: Leveraging Dexus's capabilities to enhance growth
Dexus Industria REIT Leveraging Dexus’s capabilities to enhance growth Activating investment and asset management opportunities to create value 1 23 Member of the Dexus group, benefitting from deep acquisition, development and asset management capabilities Realising scale benefits with Dexus group i
Slide 25: Portfolio tenancy mix
Portfolio tenancy mix Tenant type (by income, %) car wASX listed Downer * = National STARTRACK ~~ FR cweenstand Goverment +P) 2% METRO x AnteaTech TOYOTA NDVIK) ee TOSHIBA ThermofFisher SCIENTIFIC Z FRASERS eae = BED BATH N’ TABLE 2% 2022 Half Year Results Presentation Tenant concentration (%) Dexus
Slide 26: Brisbane Technology Park
Brisbane Technology Park HY22 key statistics $178m 3,000sqm 6.81% book value leasing WACR as at 31 Dec 2021 agreed Tenant type (by income, %) ™ Technology and life sciences wlnfrastructure = Health and wellness = Financial and professional services = Education = Other 25 2022 Half Year Results Prese
Slide 27: Rhodes Corporate Park
Dexus Industria REIT | dexus Rhodes Corporate Park HY22 key statistics Population within 20 minutes drive of metro office locations! $188m 2,800sqm 5.82% book value leasing WACR as at 31 Dec 2021 achieved High-quality and wel-located properties Adjacent to CBD train and . sub-regional bus service ev
Slide 28: Independent valuations
Independent valuations Dexus Industria REIT | dexus Property Book value ($m) Reval gain’ ($m) Cap rate (%) Cap rate mvmt (%) 34 Australis Drive, Derrimut VIC $37.8 $2.2 4.50% (0.50)% 80-96 South Park Drive, Dandenong South VIC $36.4, $0.8 475% - 1 West Park Drive, Derrimut VIC $16.0 $2.3 475% (0.50)
Slide 29: Independent valuations (cont'd)
Independent valuations (cont'd) Dexus Industria REIT dexus Property Book value ($m) Reval gain’ ($m) Cap rate (%) Cap rate mvmt (%) 5 Butler Boulevard, Adelaide Airport SA $20.0 $4.9 6.16% (1.90)% 5b Butler Boulevard, Adelaide Airport SA $13.8 $4.6 5.91% (2.64)% 18-20 Butler Boulevard, Adelaide Airp
Slide 30: Developments
Developments Project status Dexus Industria REIT | dexus Project duration Project Building | Development Project cost Remaining Est. yield FY22 FY23 FY24 FY25 FY26 area (sqm) status est.’ spend! on cost? Committed Jandakot, WA 75,700 | Construction $59m $38m S-6% Active leasing B Kemps Creek, NSW: 4
Slide 31: Summary balance sheet and look-through gearing
Dexus Industria REIT Summary balance sheet and look-through gearing Summary balance sheet $'000 31Dec 2021 30 June 2021 Cash and cash equivalents 5,007 5,762 Investment properties 1,303,075 1,051,008 Equity accounted investments 328,982 - Other assets 49,410 56,789 Total assets 1,686,474 1,113,559 B
Slide 32: Consolidated profit & loss statement
Consolidated profit & loss statement Dexus Industria REIT | dexus $'000 HY21 Net rental income 30,864 Straight line rental income recognition 904 Total revenue 31,768 Property costs (5,780) Trust management fees (2,319) Other expenses (503) Expenses Net fair value gain / (loss) on investment propert
Slide 33: FFO reconciliation
Dexus Industria REIT | dexus FFO reconciliation $'000 HY22 HY21 Statutory net profit after tax 113,697 31,850 Adjusted for: Reversal of straight-line lease revenue recognition (954) (904) Reversal of fair value (gain) / loss on investment properties (86,673) (13,779) Reversal of fair value (gain) /
Slide 34: Interest rate hedging profile
Interest rate hedging profile 3 2022 Half Year Results Presentation 2H22 FY23 mmm Debt hedged (LHS) 161 FY24 —Fixed rate (RHS) FY2S Dexus Industria REIT | dexus 2.0% 1.0% 0.5%
Slide 35: Chart title
›Chart title › 2.5 80 2.0 60 1.5 40 1.0 20 0.5 0.0 0 2015 2017 2019 2021 2023 2025 Historical national supply Additional supply for ecommerce ecommerce sales ($bn)
Slide 36: Important information
Dexus Industria RET | dexus Important information This presentation ("Material") has been prepared by Dexus Asset Management Limited (ACN 080 674 479, AFSL No. 237500) ("DXAM’) as the responsible entity of Industria Trust No. 1 (ARSN 125 862 875), Industria Trust No. 2 (ARSN 125 862 491), Industria
Slide 37: dexus
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