Slide 1: HY25 Results presentation
Dexus (ASX: DXS) ASX release 18 February 2025 HY25 Results presentation Dexus provides its 2025 half year results presentation. An investor conference call will be webcast at 9.30am today on www.dexus.com/investor-centre The 2025 property synopsis excel workbook is also available at www.dexus.com/dx
Slide 2: 2025 Half year results
2025 Half year results 18 February 2025 Dexus Funds Management Limited | ABN 24 060 920 783 AFSL 238163 as responsible entity for Dexus
Slide 3: Acknowledgement of Country
Acknowledgement of Country Dexus 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 and present. Artist: Amy Allerton, Indigico Creati
Slide 4: Agenda
Agenda 01 Overview Ross Du Vernet, Group CEO & Managing Director 02 Financial results Keir Barnes, Chief Financial Officer 03 Investments Office portfolio Andy Collins, EGM Office Industrial portfolio Chris Mackenzie, EGM Industrial 04 Funds management Michael Sheffield, EGM Funds Management 05 Summ
Slide 5: Dexus today
Dexus today Integrated platform with broad capabilities to deliver superior risk-adjusted returns Investment performance underpinned by sector-specific business units with focused strategies Dexus total FUM: $53.4bn Investment portfolio: $14.5bn Third-party FUM: $38.9bn Office Industrial Retail Heal
Slide 6: Dexus Executive team
Dexus Executive team Multi-sector real asset investment and funds management experience Ross Du Vernet Andy Collins Keir Barnes Melanie Bourke Marjan van de Burg Jonathan Hedger Group Chief Executive Officer Executive General Manager, Chief Financial Officer Chief Operating Officer Chief People Offi
Slide 7: Our strategy
Our OUR VISION To be globally recognised as Australasia’s leading real asset manager strategy HOW WE WILL By delivering superior risk-adjusted returns for Dexus Security holders and our capital partners by ACHIEVE THIS owning, managing and developing quality real estate and infrastructure assets WHY
Slide 8: Strategic priority areas
Strategic priority areas Progress against action items supporting our medium-term priorities Identified action items HY25 progress Improve capital efficiency by investing alongside capital $50m committed investment into DREP2 Transitioning partners Atlassian and Waterfront developments scheduled f
Slide 9: HY25 performance
HY25 performance Continued divestments, fund outperformance and momentum across the platform Dexus Funds $251.8m AFFO c. $665m Dexus Delivering performance Global leader in Distribution divestments4 sustainability 19.0 cents per security Includes c. $515 million since FY24 DWPF and DWSF outperformed
Slide 10: Sustainability leadership
Sustainability leadership Global recognition in sustainability performance Priority areas Sustainability performance – Improved NABERS indoor environment S&P Global ESG Index to 5.3 stars Dexus ranked 3rd among REIT peers and in the top 5% globally – Expanded GreenPower Buyers Group program supporti
Slide 11: Financial results
HY25 FFO composition Quay Quarter Tower, 50 Bridge Street, Sydney NSW Investments 83% Industrial Co-invest Management (FY24: 83%) 14% 8% operations 17% (FY24: 16%) Trading <1% (FY24: 1%) Office 61% 02 Financial results 10 | 2025 Half Year Results | 18 February 2025
Slide 12: HY25 financial results
HY25 financial results Lower AFFO in line with expectations, distribution payout aligned to revised policy HY25 $m HY24 $m Change Investments Office property FFO decreased slightly primarily due to the impact of divestments, partly offset by completion of 123 Albert Street and contracted rent growth
Slide 13: Property portfolio valuations
Property portfolio valuations Property valuations stabilising 6-month Total portfolio Total portfolio valuation attribution1 Stabilised CBD office yield spread over nominal AUS 10-year bond yield vs 20-year historic movement val movement1 cap rate average and range2 7% Current spreads over bond are
Slide 14: Strong financial position
Strong financial position Balance sheet strength maintained as valuations stabilise $1.8bn committed developments estimated cost to completion Pro forma look-through Executed $850m of debt High hedging provided $1,000m gearing maintained at the extensions and new funding, material protection against
Slide 15: Continued focus on capital recycling
Continued focus on capital recycling Enhancing portfolio quality and balance sheet strength Demonstrated ability to recycle assets despite Market transaction volumes challenging transactions market1 Portfolio composition enhanced $bn Office Industrial Retail $bn Dexus acquisitions Dexus divestments
Slide 16: Investments
1 Bligh Street, Sydney NSW 03 Investments Co-investments & other Office 13% 65% Industrial 22% 15 | 2025 Half Year Results | 18 February 2025
Slide 17: Office portfolio
Artist impression: Atlassian Central, 8-10 Lee Street, Haymarket NSW Office portfolio 16 | 2025 Half Year Results | 18 February 2025
Slide 18: Office portfolio performance
Office portfolio performance High quality portfolio with 93.5% occupancy and lower average incentives Occupancy of 93.5% remains well above market average $20.2 billion $9.6 billion Dexus office portfolio of 86.3%3 Platform office portfolio 48,500sqm 26.4% Average incentives were 26.4%4, lower than
Slide 19: Office property portfolio expiry profile
Office property portfolio expiry profile Staggered expiry profile and diversified tenant base support resilient income streams Dexus office portfolio lease expiry profile (by income)1 Sydney Melbourne Brisbane Perth 15% 13% target threshold 13.6% 12.0% 10% 9.6% 8.8% 6.5% 5% 4.4% 0% Vacant FY25 FY26
Slide 20: Sydney CBD occupancy
Sydney CBD occupancy 30 The Bond Occupancy and rent growth higher in the core 36 The Bond One Farrer Walsh Bay Sydney CBD premium office effective rents Premium occupancy 93% Australia Square Premium stock 270,054sqm Core $/sqm Premium occupancy 92% Core Premium stock 867,177sqm 1200 Western 1000 Pr
Slide 21: Office outlook
Office outlook Economic rents to keep supply in check, while demand continues to improve Rising cap rates and construction costs have seen economic rents increase substantially, and Sydney sublease vacancy supply has responded accordingly Sublease vacancy Pre-pandemic trend 4% › The gap between mark
Slide 22: Case Study: 33 Alfred Street, Sydney
Case Study: 33 Alfred Street, Sydney 33 Alfred Street, Sydney NSW Quality firms expanding footprints at a quality asset › 33 Alfred Street is a 31,000sqm development to be completed in Sustainability focus: Sydney’s first FY25, managed by Dexus and 50% owned by DWPF skyscraper reimagined › The devel
Slide 23: Industrial portfolio
162 Momentum Way, Ravenhall VIC Industrial portfolio 22 | 2025 Half Year Results | 18 February 2025
Slide 24: Industrial portfolio performance
Industrial portfolio performance Isolated vacancies, strong leasing volumes and under-renting to support future rent growth Significant increase in total leasing volumes achieved $10.5 billion $3.5 billion Dexus industrial portfolio Platform 38% releasing spreads and weighted average lease term indu
Slide 25: Industrial outlook
Industrial outlook Supportive supply/demand dynamics, location key to asset outperformance › Positive demand and lower speculative supply to support market Factors for APAC tenants in deciding where to locate their logistics facilities – Supply under construction well below average historic take-up
Slide 26: Funds management
Horizon 3023,Ravenhall VIC 04 Funds management 25 | 2025 Half Year Results | 18 February 2025
Slide 27: Dexus funds platform
Dexus funds platform A real asset platform of scale and diversity that is well placed when the market stabilises $38.9 billion FUM FUM by sector exposure FUM by investor type Platform support FUM diversified by sector and investor type Office 27% Super & pension funds 42% 150+ unlisted instituti
Slide 28: Funds management: HY25 key achievements
Funds management HY25 key achievements Delivering for investors Harnessing investor appetite ESG recognition Strategic updates - DWPF outperformed its benchmark - Raised over $160 million of equity Multiple funds and investments - Closed two sub-scale funds across all time periods, commitments for D
Slide 29: Summary
Perth Stadium, Perth WA 05 Summary 28 | 2025 Half Year Results | 18 February 2025
Slide 30: Summary and outlook
Summary and outlook 25 Martin Place, Sydney NSW Leading real asset manager with well positioned platform Real asset markets are reaching a turning point as the interest rate cycle shifts towards easing and the factors needed for an office market recovery are emerging. Longer term trends remain sound
Slide 31: Appendices
06 Appendices 30 | 2025 Half Year Results | 18 February 2025
Slide 32: Dexus today
Dexus today $53.4 billion – total platform funds under management Dexus portfolio Funds management portfolio 27% 1% 1% 1% 2% 2% 3% 3% 3% 66% $14.5bn 18% $38.9bn 27% 24% 22% Office Infrastructure Office Industrial Healthcare Retail Retail Industrial Infrastructure Alternatives Healthcare Real estate
Slide 33: Reconciliation to statutory profit
Financial results Reconciliation to statutory (loss)/profit 31 Dec 2024 31 Dec 2023 $m $m Statutory AIFRS net (loss)/profit after tax 10.3 (597.2) Investment property and inventory (Gain)/loss from sales of investment property 0.3 (0.1) Fair value (gain)/loss on investment properties 138.0 630.6 Fai
Slide 34: Management operations profit
Financial results Management operations profit HY25 Funds Property Development Management ($m) management management management operations Revenue 124.4 42.6 9.4 176.4 Operating expenses (55.1) (29.5) (14.1) (98.7) HY25 net profit 69.3 13.1 (4.7) 77.7 HY25 margin 56% 31% (50)% 44% HY24 margin 56% 14
Slide 35: Cash flow reconciliation
Financial results Cash flow reconciliation 31 Dec 2024 31 Dec 2023 $m $m Cash flow from operating activities 264.1 108.2 add back: payment for inventory acquisition and capex 21.2 37.8 less: cost of sale of inventory (2.8) (38.0) less: tax on trading profits not yet paid (0.3) (3.9) add back: capita
Slide 36: Interest reconciliation
Financial results Interest reconciliation 31 Dec 2024 31 Dec 2023 $m $m Total statutory finance costs 109.1 87.5 Less: Debt modification and movements related to exchangeable notes (8.1) (8.7) Add: Finance costs attributable to investments accounted for using the equity method1 0.0 (0.6) Less: AASB
Slide 37: Change in net tangible assets and revaluations
Financial results Change in net tangible assets and revaluations Valuation change Weighted average $m $ps Investment portfolio $m cap rate Opening net tangible assets1 (1 July 2024) 9,650.5 8.97 Dexus office portfolio6 (253.2) 6.17% Revaluation of real estate (138.0) (0.13) Dexus industrial portfoli
Slide 38: Property portfolio book value movements
Financial results Property portfolio book value movements Office1 Industrial1 Other1 Dexus total1 Trading assets2 (inventory) $m $m $m $m $m Opening property portfolio 9,573.1 3,187.3 21.9 12,782.3 90.0 3 Lease incentives 69.1 5.5 - 74.6 - Maintenance capex 10.7 0.6 0.1 11.4 - Acquisitions/transfers
Slide 39: Co-investments in pooled funds
Financial results Co-investments in pooled funds Dexus Dexus HY25 Ownership stake Passing distribution WALE WACR co-investment value co-investment income Occupancy (%) (%) yield (%)2 (years) (%) ($m)1 ($m) Real estate DWAPF 28.1% $325.1 $9.6 5.9% 95.7% 4.5 6.5% DHPF 16.1% $211.7 $5.0 4.2% 100.0% 17.
Slide 40: Capital management
Capital management HY25 position Debt maturity profile Key metrics 31 Dec 2024 30 Jun 2024 $m $4,863m $4,910m Total debt1 1,800 Headroom2 $2.9bn $2.5bn 1,600 Pro forma gearing (look-through)3 31.3%4 32.0%5 1,400 Covenant gearing (covenant6 <55%) 31.3% 31.6% 1,200 Interest cover (covenant6 >2.0x) 4.3
Slide 41: Capital management: interest rate hedging profile
Capital management Interest rate hedging profile Hedge profile Hedging profile 31 Dec 2024 30 Jun 2024 $m Average amount of debt hedged including caps 83% 92% 5,000 4.00% 4,500 Average amount of debt hedged excluding caps 71% 75% 3.50% 4,000 3,500 Weighted average interest rate on hedged debt1 2.1%
Slide 42: Debt facilities
Capital management Debt facilities1 Facility limit Drawn Maturity Currency Facility limit Drawn A$m A$m A$m A$m Bilateral bank debt 325 306 FY26 A$ Sub total 7,569 4,537 600 223 FY27 A$ Currency translation and fair value adjustments 374 374 1,050 212 FY28 A$ 1,150 250 FY29 A$ Deferred borrowing cos
Slide 43: Funds management: real estate product offering
Funds management – real estate product offering Retail / HNW Institutional pooled funds pooled funds Listed securities Listed funds JVs and mandates DWPF DWSF DHPF DREP1 & 2 DWAPF RES ASX:DXI ASX:DXC Office Dexus Wholesale Property Fund Dexus Wholesale Shopping Centre Fund Dexus Healthcare Property
Slide 44: Funds management: infrastructure product offering
Funds management – infrastructure product offering Institutional pooled funds Retail / HNW pooled funds JVs and mandates DDIT CommIF DWAF DCIF APAFs 5 other Dexus Diversified Dexus Community Dexus Wholesale Dexus Core Series of Melbourne Separately Managed Infrastructure Trust Infrastructure Fund Ai
Slide 45: Funds management development pipeline
Funds management Development pipeline $8.0 billion Funds management development pipeline1 $3.0 billion $4.5 billion Committed projects Uncommitted projects FY25-FY28+ uncommitted project costs in funds management business 1. Includes $0.5 billion concept projects and Central Place Sydney scheme whic
Slide 46: Office and Industrial key metrics
Property portfolio Office and Industrial key metrics Key metrics1 Office Industrial Amount of space leased 48,500sqm 239,700sqm2 No. of leasing transactions 131 342 Occupancy by income 93.5% 95.7% Occupancy by area 92.9% 97.4% Average incentives3 26.4% 21.1% No. of effective deals 40 7 Weighted aver
Slide 47: Office portfolio diversification
Property portfolio Office portfolio diversification Office by asset type Office by location Prime grade Sydney CBD/fringe 95% 45% 57% 13% 14% $9.6bn $9.6bn 51% 5% 22% 38% Sydney suburban 6% Premium A grade B grade and other VIC QLD WA NSW 46 | 2025 Half Year Results | 18 February 2025
Slide 48: Office portfolio: market leading and resilient operating metrics
Office portfolio: market leading and resilient operating metrics Underpinned by superior location, asset quality and customer diversification Key attributes of the Dexus office portfolio… …underpin the resilient operating performance › Circa 76% is located in core CBDs, where occupancy and Location
Slide 49: Melbourne CBD occupancy
Melbourne CBD occupancy Premium occupancy higher in the Eastern core Docklands Civic North Eastern Occupancy 80% Occupancy 71% Occupancy 95% Premium stock 450,689sqm Premium stock 31,411sqm Premium stock 58,500sqm The market occupancy rate of Premium space DXS prime occupancy 94.7% in the core of th
Slide 50: Office portfolio lease expiry profiles by region
Property portfolio Office portfolio lease expiry profiles by region By income By area Melbourne CBD By income By area Sydney CBD 20% 15% 13.1% 15.7% 12.6% 14.7% 11.7% 10.7% 15% 9.9% 10.5% 11.9% 12.2% 10% 8.9% 8.5% 9.1% 8.7% 9.0% 9.4% 8.1% 9.0% 10% 7.6% 5.8% 6.4% 4.5% 4.6% 5% 5% 2.4% 0% 0% Available
Slide 51: Top customers represent 17.3% of total portfolio income
Property portfolio Top 10 customers represent 17.3% of total portfolio income % of total Diversity of office customers (by income) property 0% 5% 10% 15% 20% Office top 10 customers1 Credit rating2 portfolio Financial and insurance services 16.0% Income3 Legal services 15.1% Woodside Energy Limited
Slide 52: Industrial portfolio diversification
Property portfolio Industrial portfolio diversification Industrial by asset type Industrial by location 46% 78% 3% $3.5bn $3.5bn 15% 13% 1% 6% 8% 30% Industrial estate Business park Distribution centre Land NSW VIC QLD SA WA 51 | 2025 Half Year Results | 18 February 2025
Slide 53: Industrial portfolio lease expiry profile by income
Property portfolio Industrial portfolio lease expiry profile by income 20% 15% 14.5% 12.5% 11.7% 9.8% 10% 5% 4.3% 2.0% 0% Available FY25 FY26 FY27 FY28 FY29 Key vacancies FY25 Key expiries FY26 Key expiries FY27 Key expiries FY28 Key expiries FY29 Key expiries Military Rd, Matraville (1.5%) Distribu
Slide 54: Industrial portfolio: a national and customer centric platform
Industrial portfolio: a national and customer centric platform Well-located, high-quality assets and ability to grow with our customers › Long-term and multi-lease relationships with high value, High-quality portfolio income Focus on growing customers aligning with › Partnering with customers to enh
Slide 55: Industrial portfolio lease expiry profiles by region
Property portfolio Industrial portfolio lease expiry profiles by region Sydney Brisbane Income Area Income Area 30% 15% 12.2% 10.2% 10.0% 10.2% 10.0% 18.5% 19.8% 8.9% 20% 17.0% 10% 8.3% 14.1% 6.5% 6.9% 6.2% 10.5% 10.2% 8.9% 4.4% 10% 6.5% 7.5% 6.9% 5% 3.5% 2.3% 2.5% - - Available FY25 FY26 FY27 FY28
Slide 56: Top customers represent 4.2% of total portfolio income
Property portfolio Top 10 customers represent 4.2% of total portfolio income % of total Diversity of industrial customers3 (by income) property Industrial top 10 customers1,3 portfolio - 10% 20% 30% 40% income2 Transport, Postal and Warehousing 30.6% Retail Trade 19.1% Reece Australia Pty Ltd 0.7% M
Slide 57: Office portfolio sustainability metrics
Environmental metrics Office portfolio sustainability metrics Dexus managed platform net emissions1 Office NABERS energy ratings2 Office NABERS water ratings2 FY08 BAU Operational Emission sources Net emissions 120 5 star 5 star 5.5 star 5.5 star 524,761sqm 70,804sqm 4.5 star 235,097sqm 33,557sqm (L
Slide 58: Dexus completed developments
Development Dexus completed developments Pipeline Building area1 sqm Project costs2 Yield on cost Leased Completion Third party partner $m % % date interest % Industrial 5 Spartan Street, Jandakot, WA 20,300 16 6.6% 100% Sep-24 67% Total industrial 20,300 16 Total developments completed 20,300 16 1.
Slide 59: Dexus committed developments and fund-throughs
Development Dexus committed developments and fund-throughs Pipeline Building area1 Project costs2 Est cost to Yield on cost3 Leased Completion due Third party partner sqm $m Completion2 % % interest $m % Office Atlassian Central, Sydney NSW4 58,100 1,451 976 4-5% 100% Late 2026 0% Stage 1, Waterfron
Slide 60: Dexus uncommitted developments
Development Dexus uncommitted developments Pipeline1 Building area1,2 Project costs3 Yield on cost4 Third party partner interest sqm $m % % Office Stage 2, Waterfront Brisbane QLD 57,500 c.450 c.5-6% 50% 60 Collins Street, Melbourne VIC 43,200 c.1,100 c.5-6% 0% Central Place Sydney NSW5 137,800 c.81
Slide 61: Trading profit opportunities
Trading profit opportunities Securing further profits Key Trading projects Trading strategy FY25 FY26 FY27+ Secured Unsecured 28 Yarrunga Street, Prestons NSW1 Industrial development 3 Brookhollow Avenue, Baulkham Hills NSW2 Trading 149 Orchard Rd, Chester Hill NSW3 Industrial development 750 Craigi
Slide 62: Dexus transactions
Real asset transactions Dexus transactions Acquisition price2 Interest Sale price3 Interest Dexus acquisitions1 Settlement Dexus divestments1 Settlement $m % $m % 32 Cox Place, Glendenning NSW 40.0 100.0% Jul-25 6 Bellevue Circuit, Greystanes NSW 45.6 50.0% 26-Jul-24 130 George Street, Parramatta NS
Slide 63: Office demand indicators
Office demand indicators White collar industries showing resilience amid moderating business conditions Professional services firms hiring intentions Business conditions remain positive ‘000 Vacancies Job Ads Professional job vacancies ‘000 jobs Index Business Confidence (LHS) Consumer confidence (R
Slide 64: High-quality properties expected to continue to outperform
High-quality properties expected to continue to outperform Premium assets expected to continue outperforming lower grades in the current climate Capitalisation rates for premium office properties have been more stable than secondary over time › The spread between premium and secondary properties has
Slide 65: Office market outlook: flight to quality and core
Office market outlook – flight to quality and core We are observing a flight to both high-quality property and core locations › Flight-to-quality is a major theme for office markets as occupiers seek high quality centrally located offices with amenities that appeal to staff › Net absorption of premi
Slide 66: Office market outlook
Office market outlook Two thirds of vacancy is concentrated within 10% of buildings Vacancy rates in CBD office markets Office vacancy concentration in CBD off markets1 Syd CBD Melb CBD Bris CBD Perth CBD 30% of buildings comprise 18% 10% of buildings comprise 25% 44% of buildings have of 63% total
Slide 67: Industrial market outlook
Industrial market outlook Rent growth normalising, population growth to continue underpinning space requirements Lack of available space has led to a rapid growth in rents Population growth will lead to structurally higher demand Rents $/sqm Millions Implied take-up per head added Ecommerce implied
Slide 68: Sydney CBD market supply outlook
Market outlook Sydney CBD – Majority of FY25-FY27 supply is pre-committed 140K FY25-FY27 Withdrawal Mooted Available Pre-committed 120K - Net supply: only 0.7% of stock p.a. 100K - 86% of supply is pre-committed 80K 60K 40K 20K 0K -20K -40K -60K Chifley Tower South 55 Pitt St Hunter St Metro - West
Slide 69: Melbourne CBD market supply outlook
0K 30K 60K 70K -10K 10K 40K 50K -20K 20K 299 Bourke St / 280 Little Collins (Newmark) FY25-FY27 Invicta House (Fidinam) FY25 68 | 2025 Half Year Results | 18 February 2025 85-91 Spring Steet (Proprium) - 27% of supply is pre-committed - net supply: only 1.1% of stock p.a. Market outlook Source: JLL
Slide 70: Dexus's position in CBD office
Office markets Dexus’s position in CBD office CBD office market Sydney Melbourne Brisbane Perth Total NLA 5,353,159 5,371,581 2,298,346 1,826,753 Prime vacancy average 16.4% 20.9% 7.4% 13.4% Dexus CBD exposure Total NLA 436,968 396,439 231,702 183,226 Number of properties 11 7 4 4 Occupancy (by area
Slide 71: Other information
Other information Exchange and securities used in statutory accounts 31 Dec 2024 30 Jun 2024 31 Dec 2023 Closing rates for Statement of Financial Position USD 0.6217 0.6624 0.6840 Average rates for Statement of Comprehensive Income USD 0.6613 0.6556 0.6526 6 mths to 12 mths to 6 mths to 31 Dec 2024
Slide 72: Glossary
Glossary Distribution payout policy: Policy is to distribute 80-100% of free cash flow for which AFFO is a proxy. FFO is in line with Property Council of Australia definition and comprises net profit/loss after tax attributable to stapled security holders, calculated in accordance with Australian Ac
Slide 73: Disclaimer
Disclaimer This presentation is issued by Dexus Funds Management Limited (DXFM) in its capacity as responsible entity of Dexus (ASX code: DXS) comprising Dexus Property Trust ARSN 648 526 470 and Dexus Operations Trust ARSN 110 521 223. It is not an offer of securities for subscription or sale and i
Slide 74: Dexus
dexus