Dexus · ASX:DXS
Dexus — DEXUS Property Group — Macquarie Australia Conference 2016
17 slides from Dexus's conference presentation, May 4, 2016
Slide 1: ASX release: Macquarie Australia Conference presentation
DEXUS Property Group (ASX: DXS) ASX release 4 May 2016 Macquarie Australia Conference presentation For personal use only DEXUS Property Group (DEXUS) today releases the attached presentation to be presented at the 2016 Macquarie Australia Conference, which is being held at The Sheraton on the Park,
Slide 2: DEXUS Property Group Macquarie Australia Conference Presentation
DEXUS PROPERTY GROUP MACQUARIE AUSTRALIA CONFERENCE PRESENTATION – 4 MAY 2016 For personal use only DEXUS Funds Management Limited ABN 24 060 920 783 AFSL DEXUS238163 as responsible Property entity for DEXUS Group – [presentation title]Property Group Slide 1
Slide 3: DEXUS Today
DEXUS TODAY Australia’s largest prime office portfolio For personal use only A significant and growing Third Party Funds Management business A deep pipeline of value enhancement opportunities 8.6% p.a. growth in distributions from FY12 to FY15 Underpinned by a strong balance sheet DEXUS Property Gro
Slide 4: DEXUS Today – Key earnings drivers
DEXUS TODAY – Key earnings drivers All key areas of the business are in a strong position For personal use only PROPERTY PORTFOLIO FUNDS MANAGEMENT & TRADING PROPERTY SERVICES Focus on increasing Organic growth supported by Pipeline enhanced office occupancy >95% $2.1bn development pipeline1 with pr
Slide 5: Stable predictable income representing 80-90% of FFO
PROPERTY PORTFOLIO – Stable predictable income representing 80-90% of FFO Largest listed office portfolio in Australia For personal use only PROPERTY — 91% Prime grade (Premium and A-grade quality) PORTFOLIO Industrial portfolio focused on major industrial hubs and arterial roadways $10.6bn port
Slide 6: Concentrated exposure to the Sydney office market
PROPERTY PORTFOLIO – Concentrated exposure to the Sydney office market DEXUS office portfolio geographic diversification For personal use only SA 1% WA 8% ACT 1% QLD 17% NSW 60% VIC 13% DEXUS Property Group – Macquarie Australia Conference Presentation Slide 5
Slide 7: Strong track record of outperformance
PROPERTY PORTFOLIO – Strong track record of outperformance Proven track record of delivering returns for investors DEXUS office portfolio outperformance1 For personal use only 20% − Above benchmark total returns at the asset level − Execute and generate returns from portfolio acquisitions 16% 14.8
Slide 8: Significant office leasing volumes in FY16
PROPERTY PORTFOLIO – Significant office leasing volumes in FY16 DEXUS office portfolio leasing activity For personal use only sqm leased % portfolio leased 250,000 18% 211,071sqm 16% 206,059sqm 200,000 186,379sqm 14% 154,321sqm 12% 150,000 10% 8% 100,000 6% 50,000 4% 2% 0 0% FY13 FY14 FY15 FY16 (Q1-
Slide 9: Actively managing future office leasing risks
PROPERTY PORTFOLIO – Actively managing future office leasing risks DEXUS office portfolio lease expiry as at 31 March 2016 For personal use only 22% 20.0%1 20% 18% 16% 12.7%1 14% 14.2% 12% 11.0% 9.7%1 10.4% 10% 8.8%1 8% 9.1% 6% 4.9% 6.5% 4% 1.9% 2% 0% Available FY16 FY17 FY18 FY19 FY20 FY21 Adopte
Slide 10: Delivering superior office metrics
PROPERTY PORTFOLIO – Delivering superior office metrics Maintained office occupancy rates well above National average and 90%1 since 2004 For personal use only Continue to achieve market-low incentives of 17.4% for the first three quarters of FY16 FY15-16 has seen a period of significant churn
Slide 11: Sydney CBD office market vacancy to tighten quickly
PROPERTY PORTFOLIO – Sydney CBD office market vacancy to tighten quickly DEXUS expectations as at 31 December 2015 For personal use only 428,000sqm of 299,000sqm of 215,000sqm of Flight to quality Vacancy to supply withdrawals net absorption above average take increase in FY16 over the next 3 years
Slide 12: Industrial portfolio has large exposure to NSW & VIC
PROPERTY PORTFOLIO – Industrial portfolio has large exposure to NSW & VIC DEXUS industrial portfolio geographic diversification For personal use only SA 1% QLD 5% VIC 36% NSW 58% DEXUS Property Group – Macquarie Australia Conference Presentation Slide 11
Slide 13: Enhanced quality and returns through development
PROPERTY PORTFOLIO – Enhanced quality and returns through development Why DEXUS develops office and industrial properties For personal use only Improves portfolio quality and diversification Provides access to quality product at favourable rate per sqm and yield metrics when investment markets a
Slide 14: Funds Management – Strong outlook through development
FUNDS MANAGEMENT – Strong outlook through development High quality wholesale partners For personal use only FUNDS MANAGEMENT Annuity-style revenue stream & PROPERTY SERVICES Alignment of interests via partnerships and DEXUS co-ownership in direct properties Recent partnerships and equity rai
Slide 15: Trading – Established track record and strong outlook
TRADING – Established track record and strong outlook Six priority projects in progress to generate For personal use only circa $110m trading profits1 TRADING Capital deployed in trading is modest and relatively low risk Trading properties are generally income producing assets Demonstrated stron
Slide 16: Summary
SUMMARY Well positioned property portfolio For personal use only — Stable predictable income stream representing 80-90% of FFO — Concentrated exposure to the Sydney office market where vacancy will tighten quickly — Strong track record of total return outperformance — Significant office leasing vo
Slide 17: Important Information
IMPORTANT INFORMATION 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. For personal use only Information in
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