Dexus Industria Reit · ASX:DXI
Dexus Industria Reit — FY2022 Earnings Presentation
36 slides from Dexus Industria Reit's earnings presentation, Aug 10, 2022
Slide 1: Dexus Industria REIT 2022 Annual Results presentation
Dexus Industria REIT (ASX:DXI) ASX release 10 August 2022 2022 Annual Results presentation and property synopsis Dexus Industria REIT (DXI) releases its 2022 Annual Results presentation. An investor conference call will be webcast at today at 10.00am on www.dexus.com/investor-centre The property syn
Slide 2: Dexus Industria REIT
Dexus Industria REIT | dexus SG HUSTNO-SGNdIATS
Slide 3: Acknowledgement of country
Dexus Industria REIT | d@xus 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 REIT | d@xus Agenda BB dighiights page 4 EA Financial overview page 9 3 | Portfolio performance and market dynamics page 13 Summary page 20 Appendices page 22
Slide 5: Highlights
Slide 6: FY22 highlights
Dexus Industria REIT | d@xus FY22 highlights Strong result while enhancing portfolio weighting to industrial > FFO of 18.5cps at top end of guidance range >» Industrial like-for-like growth of 5.1% supported by contracted rental uplifts including CPI reviews, and increased occupancy » $100 million o
Slide 7: Vision and strategy
1 Vision and strategy Generating outperformance through active management and development Vision Strategy Value drivers ‘Assuming long-term average CPI of 30% 2022 Full Year Results Presentation > Dexus Industria REIT | dexus To be the first choice for investors seeking listed industrial real estate
Slide 8: Portfolio supported by contracted rental growth and increased industrial exposure
Dexus Industria REIT | dexus Portfolio supported by contracted rental growth and increased industrial exposure Key portfolio metrics Be S & oy) aa ow 94 $1.7bn 5.0% 5.6 year 3%t 70,600sqm properties portfolio value WACR WALE contracted rent leased plus 20,000sqm! (by income) increases for 93% of dev
Slide 9: Supporting ESG initiatives through stakeholder engagement
Dexus Industria REIT | d@xus Supporting ESG initiatives through stakeholder engagement 2 50s se 7 2.5 megawatts of 60 suppliers engaged 5.0 star average Gaza neutral solar PV panels through annual ESG NABERS Energy portfolio! " eh 4 installed monitoring program rating? Supporting centralised Physica
Slide 10: Financial overview
Slide 11: FY22 financial result
Dexus Industria REIT | d@xus FY22 financial result Delivered FFO per security at the top end of guidance band Profit & loss FY22! FY21 Change » Portfolio like-for-like NOI growth of 3.1% driven by Property FFO ($m) 737 55.2 A 33.4% ————> | _ contracted rental uplifts* ° » Contributions from acquisit
Slide 12: Balance sheet and capital management
v Dexus Industria REIT Balance sheet and capital management Active approach to extending debt tenor and capital allocation Key metrics 30 Jun 2022 30 Jun2021 Gearing 28.9% 32.0% Gearing (look-through)' 34.2% n.a. Cost of debt (look-through? 24% 2.7% Ter ouarge debt focity maturity 35 years 29 years
Slide 13: Portfolio valuation movements
R Portfolio valuation movements > $111.2 million (10.2%) like-for-like valuation growth driven by 54 basis points of cap rate compression, market rent growth and asset management >» 73% of like-for-like valuation growth > 1 2 skewed to first half — 45 basis points of like-for-like cap rate compressi
Slide 14: Portfolio performance and market dynamics
d serfor mance an
Slide 15: Industrial performance
Dexus Industria REIT | d@xus Industrial performance Strong operating conditions FY22 key statistics » 5.1% like-for-like NOI growth driven by organic rental growth and increased occupancy $1 “4bn {oh 4.70% » 35,300sqm of FY23 expiries are in Melbourne's West - where rents have grown at 20% year on y
Slide 16: Industrial market outlook
Industrial market outlook Demand drivers » Take-up continues to outpace supply across key industrial markets with high leasing activity across all industries >» Onshoring of manufacturing to continue following global supply chain uncertainty >» Strength in demand from alternative users including uti
Slide 17: Rent growth and vacancy by market
› › › 60% 12% 50% 10% 40% 8% 30% 6% 20% 4% 10% 2% 0% 0% Outer West Sydney West Melbourne South Brisbane South Perth 10yr average rent growth YOY rent growth Vacancy rate (RHS)
Slide 18: Transactions
Dexus Industria REIT | d@xus Transactions Actively managing the portfolio and positioning for rental growth 50% interest 100% intere intere Asset disposals crystallising value $35m total value 19% average premium to book value V 2022 Full Year Results Presentation
Slide 19: Developments and Jandakot performance
8 Developments and Jandakot performance Portfolio enhancement Embedded growth opportunities through development pipeline To be funded by srr I Psicetobe Py cat Ee ered to 2027 fy “lvestments Gn 450,000sqm existing debt facilities Committing to projects that meet required return hurdles 1. Joint vent
Slide 20: Business parks performance
v Business parks performance Potential future income upside i} inderpinr FY22 key statistics $179m book value WACR 5,700sqm leasing achieved {o> 6.61% {e} > aad 81% asm occupancy (by area) ine Technology Park d targetin Key highlights > Technology and life sciences tenants account for 33% of BTP inc
Slide 21: Summary
Slide 22: Summary and FY23 guidance
Dexus Industria REIT | d@xus Summary and FY23 guidance Focused on delivering long-term value to Security holders $1.7 billion high-quality portfolio predominantly weighted to industrial properties, supported by $378 million industrial development pipeline with headroom supporting capital deployment
Slide 23: Appendices
Slide 24: Geographical presence
23 Geographical presence Exposure to all key markets in Australia ae 26% of total portfolio 2022 Full Year Results Presentation $456m valuation 18 properties ¥ Competitive advantage Dexus Industria REIT | dexus New South Wales » Ability to capture strong rental growth as industrial vacancy levels at
Slide 25: Portfolio tenancy mix
Portfolio tenancy mix Tenant type (% by income) thornton | car WASX listed = i Listed multinational : = National = Multinational Government Dj staarzacc Woowwors = Private and other Brominicomn QD 4& METRO eo AnteaTech QSAGE Miele Re f \NDVIK O) inceractive’ ee TOSHIBA re ee Thermosher SCIENTIFIC 24
Slide 26: Lease expiry profile
25 Lease expiry profile Industrial - 79% of portfolio value (% by total DXI income) FY23 FY24 FY25 Business parks — 21% of portfolio value (% by total DXI income) FY23 FY24 FY25 2022 Full Year Results Presentation FY26 Dexus Industria REIT dexus
Slide 27: Jandakot Airport industrial precinct
26 Jandakot Airport industrial precinct General aviation airport and Dexus Industria REIT | d@xus Stabilised portfolio » $303 million book value (Dx! 33.3% share) » 98.4% occupancy (by area) » 3.0% weighted average rent review! infrastructure operations $68 million book value (DX! 33.3% share? 19.8
Slide 28: Developments
Dexus Industria REIT | d@xus Developments Proj Building Development Project Remaining Est. yield Est. final roject area (sqm) status cost est. spend! on cost? completion Committed Jandakot, WA 74,700 Construction $59m $30m c. 5% Early FY24 Active leasing and Kemps Creek, NSW 42,500 planning $69m $52
Slide 29: Pre-commitment rents and construction costs
Dexus Industria REIT | d@xus Pre-commitment rents and construction costs Construction costs pushing up on rents for new stock $/sqm $/sqm 120 3,500 100 80 60 40 20 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 Jun-22 mmm Land (RHS) "== Construction (RHS) mmm Other costs incl finance, RHS) Histori
Slide 30: Independent valuations
29 Independent valuations Dexus Industria REIT | d@xus Property Book value ($m) Reval gain ($m) Cap rate (%) Cap rate mvmt (bps) 34 Australis Drive, Derrimut VIC $418 $6.4 4.50% (50) bps 80-96 South Park Drive, Dandenong South VIC $38.5 $2.4 475% = 1 West Park Drive, Derrimut VIC $18.9 $5.2 450% (75
Slide 31: Independent valuations (cont'd)
Dexus Industria REIT | dexus Independent valuations (cont'd) Property Book value ($m) Reval gain($m) Cap rate (%) Cap rate mvmt (bps) 5 Butler Boulevard, Adelaide Airport SA $20.5 $5.4 5.84% (222) bps 5b Butler Boulevard, Adelaide Airport SA $14.5 $47 5.59% (296) bps 18-20 Butler Boulevard, Adelaide
Slide 32: Summary balance sheet and gearing
Dexus Industria REIT | d@xus Summary balance sheet and gearing Summary balance sheet Gearing $'000 30 June 2022 30 June 2021 $000 30 June 2022. 30 June 2021 Cash and cash equivalents 5,583 5,762 Gearing Investment properties 1,319,450 1,051,008 Drawn debt 480,500 343,937 Equity accounted investments
Slide 33: Consolidated profit & loss statement
32 Consolidated profit & loss statement Dexus Industria REIT | dexus $'000 Fy22 Fy2t Property revenue 72,490 62,764 Straight line rental income recognition 2,199 2,880 Total revenue 74,689 (65,644 Property expenses (15,252) (11,271) Management fee expense (5,591) (4,897) Other expenses (1,420) (1,16
Slide 34: FFO reconciliation
33 FFO reconciliation Dexus Industria REIT | d@xus $'000 FY22" FY21 Statutory net profit after tax 169,350 119,197 Adjusted for: Net fair value (gain) / loss on investment properties (100,300) (78,340) Fair value (gain) / loss on investment properties - ROU assets (720) 123 Fair value (gain) / loss
Slide 35: Important information
Dexus Industria REIT | d@xus 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 36: dexus
dexus