Dexus · ASX:DXS
Dexus — DEXUS Property Group — Shareholder Meeting (October 2010)
53 slides from Dexus's shareholder meeting presentation, Oct 26, 2010
Slide 1: Annual General Meeting 2010
2010 DEXUS Property Group ANNUAL GENERAL MEETING 2010 Annual General Meeting — Slide 1
Slide 2: Christopher Beare, Chair
CHRISTOPHER BEARE Chair 2010 Annual General Meeting — Slide 2
Slide 3: Welcome and Introduction to the DEXUS Board
WELCOME AND INTRODUCTION TO THE DEXUS BOARD 2010 Annual General Meeting — Slide 3
Slide 4: Elizabeth Alexander AM
ELIZABETH ALEXANDER AM 2010 Annual General Meeting — Slide 4
Slide 5: Barry Brownjohn
BARRY BROWNJOHN 2010 Annual General Meeting — Slide 5
Slide 6: John Conde AO
JOHN CONDE AO 2010 Annual General Meeting — Slide 6
Slide 7: Victor Hoog Antink, Chief Executive Officer
VICTOR HOOG ANTINK Chief Executive Officer 2010 Annual General Meeting — Slide 7
Slide 8: Stewart Ewen OAM
STEWART EWEN OAM 2010 Annual General Meeting — Slide 8
Slide 9: Brian Scullin
BRIAN SCULLIN 2010 Annual General Meeting — Slide 9
Slide 10: Peter St George
PETER ST GEORGE 2010 Annual General Meeting — Slide 10
Slide 11: DEXUS Board of Directors
DEXUS BOARD OF DIRECTORS 2010 Annual General Meeting — Slide 11
Slide 12: Annual General Meeting 2010
2010 DEXUS Property Group ANNUAL GENERAL MEETING 2010 Annual General Meeting — Slide 12
Slide 13: 2010 Online Annual Report Suite
2010 ONLINE ANNUAL REPORT SUITE 2010 Annual General Meeting — Slide 13
Slide 14: Chair's Address
CHAIR’S ADDRESS Christopher Beare Chair 2010 Annual General Meeting — Slide 14
Slide 15: 2010 Achievements
2010 ACHIEVEMENTS Focus on operational excellence — Achieved like-for-like income growth — Above market occupancy — High lease duration Strengthened management platform — Established management team in US — Restructured senior management team DEXUS US Office, 4200 Von Karman Avenue, Newport Beac
Slide 16: Security Holder Returns to 30 September 2010
SECURITY HOLDER RETURNS TO 30 SEPTEMBER 2010 1 Year 3 Years2 6 Years2,3 % pa % pa % pa DEXUS (DXS) 7.6% -17.6% 1.1% A-REIT sector1 -4.1% -24.2% -4.4% DXS outperformance vs A-REIT sector1 11.7% 6.6% 5.5% 1. S&P ASX 200 Property Accumulation Index 2. CAGR — Compound Annual Growth Rate 3. Since listing
Slide 17: Board and Executive Remuneration
BOARD AND EXECUTIVE REMUNERATION 2010 Annual General Meeting — Slide 17
Slide 18: Corporate Responsibility and Sustainability
CORPORATE RESPONSIBILITY AND SUSTAINABILITY Improvements in Energy, GHG and water usage Global 100 Most Sustainable Corporations DJSI World Index and DJSI Asia Index 2010 CR&S Report available today 1 Bligh Street, Sydney, NSW 2010 Annual General Meeting — Slide 18
Slide 19: Corporate Governance
CORPORATE GOVERNANCE Highest standards of governance ASX Corporate Governance principles Board membership unchanged — Comprising eight directors — Seven independents Board committee chairs rotated DEXUS Board of Directors at 1 Bligh Street, Sydney, NSW 2010 Annual General Meeting — Slide 19
Slide 20: CEO's Address
CEO’S ADDRESS Victor Hoog Antink Chief Executive Officer 2010 Annual General Meeting — Slide 20
Slide 21: Our Vision
OUR VISION The market leading owner, manager, developer of superior quality properties in office and industrial in Australia and industrial in the US west coast 2010 Annual General Meeting — Slide 21
Slide 22: Office Portfolio Australia and New Zealand
OFFICE PORTFOLIO Australia and New Zealand Quality $4 billion office portfolio Leasing success in a challenging environment — Occupancy above benchmark in all markets — Zenith occupancy increased to 98% 1 Bligh & 123 Albert developments — First two premium 6 Star Green Star developments in Syd
Slide 23: Industrial Portfolio Australia
INDUSTRIAL PORTFOLIO Australia Higher like-for-like income growth and Commenced four quality pre-leased occupancy developments Redeploy capital into preferred markets Incorporating new levels of sustainability Development at Quarry Industrial Estate, Reconciliation Road, Greystanes, NSW 2010
Slide 24: Industrial Portfolio United States
INDUSTRIAL PORTFOLIO United States Operating fundamentals remain challenged, capital values recovering Significant progress in aligning US US$ 1.2bn business with Australian operating model — Opened US head office on the west coast Focus on — Managing portfolio to benefit from recovery — Repos
Slide 25: Capital Management
CAPITAL MANAGEMENT Diversifying funding sources Extending debt duration Proven capital management track record Increased focus on debt cost reduction 2010 Annual General Meeting — Slide 25
Slide 26: Third Party Property Funds Management
THIRD PARTY PROPERTY FUNDS MANAGEMENT One of Australia’s largest wholesale platforms DEXUS Wholesale Property Fund — Out-performed benchmark returns — Acquired $250m industrial portfolio Annuity style income stream and increased scale in key markets Fund breakdown L to R: GPT, 1 Bligh Street,
Slide 27: Corporate Responsibility and Sustainability (CR&S)
CORPORATE RESPONSIBILITY AND SUSTAINABILITY (CR&S) Committed to CR&S practices — Significant results in resource efficiency — Developments incorporating innovative sustainable design — Investment in community initiatives 2010 Annual General Meeting — Slide 27
Slide 28: 2011 Guidance
2011 GUIDANCE1 Funds From Operations at least (per security) 7.3c Distributions (70% of FFO) at least (per security) 5.1c 1. Barring adverse changes to operating conditions Solaris, Quarry Industrial Estate, Reconciliation Road, Greystanes, NSW 2010 Annual General Meeting — Slide 28
Slide 29: Outlook
OUTLOOK Enhancing quality portfolio and stability of income Continued management focus on existing portfolio Value creation opportunities through — Development — Capital partnering 123 Albert Street, Brisbane, QLD 2010 Annual General Meeting — Slide 29
Slide 30: 1 Bligh Street, Sydney Development progress
1 BLIGH STREET, SYDNEY Development progress 2010 Annual General Meeting — Slide 30
Slide 31: Annual General Meeting 2010
2010 DEXUS Property Group ANNUAL GENERAL MEETING 2010 Annual General Meeting — Slide 31
Slide 32: Discussions and Questions
DISCUSSIONS AND QUESTIONS 2010 Annual General Meeting — Slide 32
Slide 33: Written Questions
WRITTEN QUESTIONS 2010 Annual General Meeting — Slide 33
Slide 34: Question – DEXUS Performance
QUESTION 1 – DEXUS PERFORMANCE With net assets down and FFO reduced, why is DEXUS pleased with its performance? 2010 Annual General Meeting — Slide 34
Slide 35: Question 1 – DEXUS Performance
QUESTION 1 – DEXUS PERFORMANCE 2010 returns impacted by financial crisis — Balance sheet repair — Challenging property market conditions In 2010 DXS delivered: — Earnings in line with guidance — Occupancy well above market — Sound capital management decisions Shareholder returns outperformed i
Slide 36: Question – Management Expenses
QUESTION 2 – MANAGEMENT EXPENSES Is the current structure of DEXUS more expensive than others and are management expenses too high? 2010 Annual General Meeting — Slide 36
Slide 37: Question 2 – Management Expenses
QUESTION 2 – MANAGEMENT EXPENSES Costs tightly monitored Compensation stable year on year Management expense ratio 0.52% in FY10 DEXUS cost structure 22% lower than peer average Independent report shows DXS compensation is low compared to peers 2010 Annual General Meeting — Slide 37
Slide 38: Question – Remuneration
QUESTION 3 – REMUNERATION How can we justify the salaries to executives and performance payments in light of falling FFO and reduced income levels? 2010 Annual General Meeting — Slide 38
Slide 39: Question 3 – Remuneration
QUESTION 3 – REMUNERATION Executive remuneration assessed vigorously to ensure fair market levels: — Externally: independent remuneration consultants — Internally: robust framework aligned to group objectives Additional criteria set for CEO and key executives No increase to base salaries for e
Slide 40: General Questions
GENERAL QUESTIONS 2010 Annual General Meeting — Slide 40
Slide 41: Resolutions
RESOLUTIONS 2010 Annual General Meeting — Slide 41
Slide 42: Stewart Ewen OAM
STEWART EWEN OAM 2010 Annual General Meeting — Slide 42
Slide 43: Resolution: Ratify Stewart F Ewen appointment
RESOLUTION 1 “That the continuing appointment of Stewart F Ewen as a Director of DEXUS Funds Management Limited be ratified” 2010 Annual General Meeting — Slide 43
Slide 44: Resolution (continued): Proxies held by the Chair
RESOLUTION 1 (continued) Proxies held by the Chair of the meeting Number of units % of units on issue For 3,146,828,194 65.03% Open 9,494,829 0.20% Against 6,963,969 0.14% Total proxies 3,163,286,992 65.37% 2010 Annual General Meeting — Slide 44
Slide 45: Voting for Resolution 1 — Stewart F Ewen
VOTING FOR RESOLUTION 1 — STEWART F EWEN 2010 Annual General Meeting — Slide 45
Slide 46: Resolutions
RESOLUTIONS 2010 Annual General Meeting — Slide 46
Slide 47: Remuneration Process
REMUNERATION PROCESS DEXUS Balanced Scorecard – typical objectives Financial performance Business development and business management Earnings per security Delivery of strategic objectives on time and on budget Distributions per security Corporate responsibility and sustainability initiative
Slide 48: Resolution: Adopt Remuneration Report
RESOLUTION 2 “That the Remuneration Report for the financial year ended 30 June 2010 be adopted.” 2010 Annual General Meeting — Slide 48
Slide 49: Resolution (continued): Proxies held by the Chair
RESOLUTION 2 (continued) Proxies held by the Chair of the meeting Number of units % of units on issue For 3,059,854,206 63.23% Open 9,291,674 0.19% Against 92,928,781 1.92% Total proxies 3,162,074,661 65.35% 2010 Annual General Meeting — Slide 49
Slide 50: Voting for Resolution 2
VOTING FOR RESOLUTION 2 2010 Annual General Meeting — Slide 50
Slide 51: Disclaimer
DISCLAIMER 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 including, wit
Slide 52: Thank You for Attending Our Annual General Meeting
THANK YOU FOR ATTENDING OUR ANNUAL GENERAL MEETING 2010 Annual General Meeting — Slide 52
Slide 53: Annual General Meeting 2010
2010 DEXUS Property Group ANNUAL GENERAL MEETING 2010 Annual General Meeting — Slide 53
DEXUS Property Group — Shareholder Meeting (October 2010) on 6ix