Dexus · ASX:DXS
Dexus — DEXUS Property Group — Shareholder Meeting (October 2008)
40 slides from Dexus's shareholder meeting presentation, Oct 29, 2008
Slide 1: DEXUS Property Group Annual General Meeting
DEXUS Property Group Annual General Meeting 29 October 2008 DEXUS Funds Management Limited ABN 24 060 920 783 Australian Financial Services Licence Holder
Slide 2: Welcome and introduction to the DEXUS Board
Welcome and introduction to the DEXUS Board Christopher T Beare Chairman 2
Slide 3: Elizabeth Alexander AM
Elizabeth Alexander AM 3
Slide 4: Barry Brownjohn
Barry Brownjohn 4
Slide 5: Stewart Ewan OAM
Stewart Ewan OAM 5
Slide 6: Victor Hoog Antink - CEO
Victor Hoog Antink - CEO 6
Slide 7: Charles Leitner III, Andrew Fay (alternate)
Charles Leitner III Andrew Fay (alternate) 7
Slide 8: Brian Scullin
aT le DEXUS PROPERTY GROUP
Slide 9: DEXUS Board of Directors
DEXUS Board of Directors * Alternate to Charles Leitner III 9
Slide 10: DEXUS Property Group 2008 Annual General Meeting
DEXUS Property Group 2008 Annual General Meeting 10
Slide 11: Annual Report 2008
Annual Report 2008 Message from the Chair & CEO
Slide 12: Chair's address
Chair’s address Christopher T Beare Chair 12
Slide 13: Security holder returns since stapling
Security holder returns 4 years - since stapling DXS compared to S&P / ASX 200 Property Accumulation Indices Annualised Total Return 6 October 2004 to 27 October 2008 5/10/2004 = 100 220 220 200 DXS Annualised Return = 9.6% 200 S&P/ASX 200 Prop. Annualised Return = 0.7% 180 180 UBS Diversified 200 A
Slide 14: 2008 Achievements
2008 Achievements Retail portfolio disposal – substantially reduced debt levels – strengthened our balance sheet – focusing strategy on office and industrial Strong capital management approach High quality management team Acquisition of CalWest’s 20% JV interest – creating flexibility to rep
Slide 15: Strong results underpinning distribution growth
Strong results underpinning distribution growth Financial highlights at 30 June 2008 – stable operating earnings $498m – strong DPU growth 11.9c, up 5.3% – annual compound growth 4.3% since stapling View from Southgate across the Yarra River to Melbourne CBD 15
Slide 16: Corporate responsibility & sustainability
Corporate responsibility & sustainability Progressing highly sustainable developments Future proofing our existing portfolio Online Annual & CR&S reports released today This AGM is a carbon neutral event Artist impression, Atrium, 1 Bligh Street, Sydney 16
Slide 17: Corporate governance
Corporate governance Achieving highest standards of Corporate Governance Continue to meet ASX Corporate Governance Principles Regularly reviewing the structure and responsibilities of committees We have decided to increase the number of DEXUS directors 17
Slide 18: In conclusion
In conclusion 18
Slide 19: CEO's address
CEO’s address Victor P Hoog Antink Chief Executive Officer 19
Slide 20: State of the market – DEXUS focus
State of the market – DEXUS focus Market Volatile financial markets Flight to quality DEXUS focus Active property management Active capital management View from GPT, 1 Farrer Place, Sydney 20
Slide 21: Operating results
Operating results One of the highest quality portfolios in Australia Stable operating earnings of $498m 96% earnings from rental income and strong tenant covenants 4% earnings from funds management fees & development contributions Gearing of 37% well below target range of 40-45% Applying
Slide 22: Strong portfolio results
Strong portfolio results Portfolio highlights 30 Sept 20081 30 June 20082 – stable portfolio occupancy 93.7% 93.7% – steady lease duration 4.8 yrs 4.8 yrs – like for like property income growth n/a 4.5% – strong leasing activity 177,000 sqm 818,000 sqm 1. 3 months to 30 September 2008 2. 12 months
Slide 23: Our business today
Our business today Total portfolio value1 $15.3 bn – owned property portfolio $8.9 bn – third party funds $6.4 bn Quality and scale: Owned1,2 Group1 – no 1 in office $4.6 bn $7.1 bn – no 3 in industrial $1.6 bn $2.3 bn – retail $0.3 bn $3.7 bn – international $2.2 bn $2.2 bn Experienced manage
Slide 24: Office highlights
Office highlights High quality – strategically located 95% premium or A grade assets – 71% located in Sydney market – 85% in Sydney CBD Leases negotiated 18,000 sqm in Q1 Occupancy 98% Average lease duration 5.7 years 45 Clarence Street, Sydney As at 30 September 2008 24
Slide 25: 1 Bligh Street, Sydney
1 Bligh Street, Sydney Premium-grade office building 28 levels - 42,000 sqm Anchor tenant secured – Clayton Utz over 55% Designed to achieve 6 star Green Star rating Demolition/construction in progress Completion due mid 2011 Demolition works, 1 Bligh Street, Sydney 25
Slide 26: 123 Albert Street, Brisbane
123 Albert Street, Brisbane Premium grade office tower Rio Tinto pre-commitment to lease 68% – plus option to extend to 80% Designed to achieve – 6 star Green Star rating – 5 star NABERS Energy rating Completion due late 2010 Artist impression, 123 Albert Street, Brisbane 26
Slide 27: 60 Miller Street, North Sydney
60 Miller Street, North Sydney Redevelopment A grade office tower 5 level office extension - 5,000sqm Heads of Agreement signed – 100% Designed to achieve – 4 star Green Star rating – 4.5 star NABERS Energy rating Completion due early 2009 Development, 60 Miller Street, North Sydney 27
Slide 28: Industrial - active management delivering results
Industrial - active management delivering results Strong portfolio fundamentals – high quality institutional grade assets – highly diversified portfolio – strategically located in key markets Active management approach Delivering strong results – tenant retention – 82% – leases negotiated over
Slide 29: Industrial developments - Australia
Industrial developments - Australia Significant development capabilities Strategically located in key Sydney and Melbourne markets SEL, Greystanes — 50 hectares to develop in 4 stages — strategic site in a key location — high quality services & sustainability features SEL, Greystanes NSW 29
Slide 30: Industrial highlights – North America
Industrial highlights – North America Assets strategically located in key sub-markets Occupancy 91.6% Tenant retention 72% Average lease duration - 4.1 years Leases negotiated for 86,000+ sqm in Q1 2210 Oak Ridge Way, San Diego As at 30 September 2008 30
Slide 31: Industrial developments – North America
Industrial developments – North America San Antonio – 4 developments underway Whirlpool program – construction continuing on 3 sites — Columbus, OH, 145,000 sqft — Seattle, WA, 84,000 sqft — Atlanta, GA, 139,000 sqft Whirlpool, North Perris Boulevard, Perris, California 31
Slide 32: Industrial highlights – Europe
Industrial highlights – Europe Occupancy 87.7% Average lease duration 3.4 years Arrears stable Improved leasing activity - 5,000 sqm of new leases & renewals Challenging market Continued focus on active leasing and maximising returns Unna, Germany As at 30 September 2008 32
Slide 33: Third party management business - highlights
Third party management business - highlights Third party funds increased by 39% to $6.4bn One of the largest third party platforms in Australia Well diversified by investor base and asset class $900 million development pipeline underway Source of Funds Fund breakdown As at 30 June 2008 33
Slide 34: Our CR&S achievements
Our CR&S achievements 10 years of implementing sustainability features Own the first 5 star building – 30 The Bond Developing 6 star towers in Sydney & Brisbane Progressing sustainability programs Maintained FTSE4Good listing Obtained Australian SAM Sustainability listing 2008 CR&S rep
Slide 35: Outlook
Outlook Asset valuations Quality developments Capital management — $580m refinancing in 2009 $250m secured in August 2008 $80m agreed and documenting $250m to be secured this year View from 1 Bligh Street, Sydney 35
Slide 36: Distributions policy
Distributions policy Revising payout policy — greater of: — 70% of funds from operations1; or — Taxable income The Zenith, Pacific Highway, Chatswood 1. Funds from operations equate to current distributable income excluding development gains 36
Slide 37: Distribution guidance
Distribution guidance 2009 funds from operations1 — guidance of 11.7 cents 2009 Distributions — 70% of funds from operations1 8.2 cents The Zenith, Pacific Highway, Chatswood 1. Funds from operations equate to current distributable income excluding development gains 37
Slide 38: Well positioned for the future
Well positioned for the future Experienced team Focused on quality portfolio Well-positioned to take advantage of market cycle 2009 focus — active portfolio management — active capital management — maximise returns for security holders DEXUS head office, 343 George Street, Sydney 38
Slide 39: DEXUS Property Group 2008 Annual General Meeting
DEXUS Property Group 2008 Annual General Meeting 39
Slide 40: 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, without
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