Dexus · ASX:DXS

Dexus — DEXUS Property Group — Macquarie Australia Conference 2014

20 slides from Dexus's conference presentation, May 8, 2014

  1. Slide 1: Macquarie Australia Conference presentation ASX release

    DEXUS Property Group (ASX: DXS) ASX release 8 May 2014 Macquarie Australia Conference presentation For personal use only DEXUS Property Group today releases an overview presentation that will be presented at the 2014 Macquarie Australia Conference which is being held at Sheraton on the Park, 161 Eli

  2. Slide 2: DEXUS Property Group Macquarie Australia Conference Presentation - May 2014

    DEXUS PROPERTY GROUP MACQUARIE AUSTRALIA CONFERENCE PRESENTATION - MAY 2014 For personal use only DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS AFSL Property 238163 Group 2014 as responsible Macquarie entity Australia for DEXUS Conference Property Group presentation Slide 1

  3. Slide 3: Agenda

    AGENDA For personal use only  Overview  Strategy  Commonwealth Property Office Fund (CPA) transaction  Portfolio overview  Third party funds management  Capital management  Market outlook  Summary Note: All figures in Australian dollars as at 31 March 2014, and all portfolio figures include

  4. Slide 4: Overview: Group property portfolio including third party funds

    OVERVIEW Group property portfolio including third party funds For personal use only $17.6bn Total funds under management $9.1bn $8.5bn DXS portfolio Third Party Funds investments Management $11.7bn $2.5bn $3.4bn DEXUS Property Group 2014 Macquarie Australia Conference presentation Slide 3

  5. Slide 5: A clear and focused strategy

    STRATEGY A clear and focused strategy For personal use only DEXUS Property Group 2014 Macquarie Australia Conference presentation Slide 4

  6. Slide 6: Commonwealth Property Office Fund (CPA) transaction overview

    COMMONWEALTH PROPERTY OFFICE FUND (CPA) TRANSACTION Overview For personal use only  DEXUS and Canada Pension Plan Investment Board (CPPIB) joint takeover of CPA now completed — Compulsory acquisition of CPA Units concluded on 14 April 2014 — Transition of management of the CPA portfolio progressing

  7. Slide 7: Scale in key CBD office markets

    PORTFOLIO OVERVIEW Scale in key CBD office markets For personal use only PCA CBD Definition1 DEXUS Core Target Market DEXUS property DEXUS Office Partnership property 1.AUM includes assets owned by DEXUS and DEXUS Third Party managed funds. Represents assets within the CBD, as defined by the Propert

  8. Slide 8: Direct office portfolio — 82% of balance sheet with 87% prime grade

    PORTFOLIO OVERVIEW Direct office portfolio — 82% of balance sheet with 87% prime grade For personal use only T: Australia Square, 264-278 George Street, Sydney 1 Bligh Street, Sydney, Premium grade $251m Governor Phillip & Macquarie Towers 1 Farrer Place, Sydney A-grade $311m (50% interest) (33% int

  9. Slide 9: Direct office portfolio

    PORTFOLIO OVERVIEW Direct office portfolio For personal use only Property type by book value $7.5bn Development 2% Prime quality office portfolio Carparks Office parks 3% 2% B-grade 6%  Largest listed office portfolio in Australia Premium — Largest institutional owner of office in Sydney CBD with 2

  10. Slide 10: Direct office portfolio — lease expiry profile

    PORTFOLIO OVERVIEW Direct office portfolio — lease expiry profile For personal use only Lease expiry profile1 by income as at 31 March 2014 14% 13.2%2 12% 11.6% 10% 9.6%2 10.2% 8% 8.3% 7.9% 6% 5.6%2 5.1% 4% 2% 2.1% 0% Vacant FY14 FY15 FY16 FY17 FY18 1. Excluding CPA portfolio. 2. 30 June 2013 positi

  11. Slide 11: Direct industrial portfolio — 18% of balance sheet

    PORTFOLIO OVERVIEW Direct industrial portfolio — 18% of balance sheet For personal use only T: DEXUS Industrial Estate, 27 Distribution Drive, Laverton North $9.2m (50% interest) T: DEXUS Industrial Estate, 1-3 Distribution Drive, Laverton North $6.0m (50% interest) B: Quarry Industrial Estate, 1 Be

  12. Slide 12: Direct industrial portfolio

    PORTFOLIO OVERVIEW Direct industrial portfolio For personal use only Geographical weighting by book value $1.5bn Adelaide Brisbane 2% Prime quality industrial portfolio 5% Sydney  Focused on major industrial hubs and arterial roadways in 53% $1.5bn Sydney, Melbourne and Brisbane Melbourne 40% 48 pr

  13. Slide 13: Development and fund-through pipeline — Group

    PORTFOLIO OVERVIEW Development and fund-through pipeline — Group For personal use only  DEXUS allocates up to 15% of funds under $3.0bn management on its balance sheet to Total Group development pipeline development and value-add opportunities Total estimated project cost DXS developments and fund-

  14. Slide 14: Third party funds management overview

    THIRD PARTY FUNDS MANAGEMENT Overview For personal use only $8.5bn 47 Third party funds management platform Institutional investors  DEXUS strives to be the wholesale partner of choice in Australian Third party funds under management post CPA transaction office, industrial and retail  Substantial

  15. Slide 15: Third party funds management: delivering on strategy

    THIRD PARTY FUNDS MANAGEMENT Delivering on strategy For personal use only 57% Growth in third party funds since June 2012  Proven track record in attracting third party capital — Launched two new partnerships since October 2012 representing $2 billion in new capital — In addition, DWPF has raised $

  16. Slide 16: Prudent and disciplined approach to capital management

    CAPITAL MANAGEMENT Prudent and disciplined approach to capital management For personal use only  March 2014 quarter achievements: Key metrics 31 Mar 13 — Reduced cost of debt to 5.6%, down 30 bps since 30 June 2013 Gearing1 34.6% Cost of debt2 5.6% — S&P credit rating upgraded from BBB+ to A- Durat

  17. Slide 17: Market outlook: why office demand will improve from FY15

    MARKET OUTLOOK Why office demand will improve from FY15 For personal use only  Demand to improve in FY15 due to DEXUS Office Demand Barometer points to improvement Actual demand — Economy responding to easing monetary policy 12% % of stock (annualised) Barometer and lower AUD 8% — Improving busines

  18. Slide 18: Market outlook: industrial markets relatively stable

    MARKET OUTLOOK Industrial markets relatively stable For personal use only  Lead indicators for demand now improving Consumption – to drive rental growth (business confidence, consumer confidence) % p.a. NSW consumption spending RHS Outer West Rent Growth 12% 6% forecast  Demand to be driven by ten

  19. Slide 19: Summary: continue to deliver on strategy

    SUMMARY For personal use only  Continue to deliver on strategy  Expect office market conditions to improve in FY15  Focus moving forward: — Ensure CPA portfolio is successfully integrated — Continue to drive earnings from existing business  Market guidance for FY141 — FFO of 8.34 cents per secur

  20. Slide 20: Important Information Disclaimer

    IMPORTANT INFORMATION Disclaimer For personal use only  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.  Info

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