Dexus · ASX:DXS
Dexus — DEXUS Property Group — Non-Deal Roadshow (June 2016)
25 slides from Dexus's roadshow presentation, Jun 21, 2016
Slide 1: ASX release: Asian Investor Roadshow
DEXUS Property Group (ASX: DXS) ASX release 21 June 2016 Asian Investor Roadshow For personal use only DEXUS Property Group (DEXUS) today provides the attached presentation which will be used as a basis of discussion in Hong Kong and Singapore. For further information please contact: Investor relati
Slide 2: DEXUS Property Group Asian Investor Roadshow June 2016
DEXUS PROPERTY GROUP ASIAN INVESTOR ROADSHOW - JUNE 2016 For personal use only DEXUS Funds Management Limited ABN 24 060 920 783 AFSL DEXUS238163 as responsible Property entity Group – Asian for DEXUS Investor Property Roadshow Group June 2016 Slide 1
Slide 3: DEXUS Today
DEXUS TODAY Majority of earnings1 derived from a high quality, Australian property portfolio For personal use only Established Third Party Funds Management business providing annuity-style income Deep pipeline of value enhancement opportunities across the Group Track record of delivering above bench
Slide 4: DEXUS Today – Track record of delivering for investors
DEXUS TODAY– Track record of delivering for investors FFO per security growth from FY12 to FY161 Group transaction activity since start FY12 For personal use only cps Sm >$12bn of 65.0 transactions 6.5% CAGR2 4,500 60.0 across Group 3,500 55.0 Offshore 2,500 50.0 Retail 1,500 Industrial 45.0 500 Off
Slide 5: DEXUS Today – Strategy setup to deliver through the cycle
DEXUS TODAY – Strategy setup to deliver through the cycle DEXUS PROPERTY GROUP (ASX: DXS) For personal use only Top 50 ASX listed entity PROPERTY PORTFOLIO FUNDS MANAGEMENT & TRADING $7.25 NTA per Security PROPERTY SERVICES 6 priority projects underway $10.9bn AUM Circa $110m profits expected Larges
Slide 6: 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 7: Concentrated exposure to the Sydney office market
PROPERTY PORTFOLIO – Concentrated exposure to the Sydney office market DEXUS office portfolio geographic diversification1 For personal use only SA 1% WA 8% ACT 1% QLD 17% NSW 60% VIC 13% 1. As at 31 March 2016. DEXUS Property Group – Asian Investor Roadshow June 2016 Slide 6
Slide 8: 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 9: 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 10: On track for 95% occupancy target at June 2016
PROPERTY PORTFOLIO – On track for 95% occupancy target at 30 June 2016 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 Ad
Slide 11: 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 12: Industrial portfolio has large exposure to NSW & VIC
PROPERTY PORTFOLIO – Industrial portfolio has large exposure to NSW & VIC DEXUS industrial portfolio geographic diversification1 For personal use only SA 1% QLD 5% VIC 36% NSW 58% Two-thirds of FY17 expiry located in strongest Industrial market of Sydney Opportunity to grow portfolio occupancy i
Slide 13: Track record of outperformance
PROPERTY PORTFOLIO – Track record of outperformance Proven track record of delivering returns for investors DEXUS office portfolio outperformance2 For personal use only 20% − Above benchmark total returns at the asset level − Execute and generate returns from portfolio acquisitions 16% 14.8% 14.6%
Slide 14: 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 15: Organic development pipeline – Current identified opportunities
ORGANIC DEVELOPMENT PIPELINE – Current identified opportunities Circa.$2.0 billion DEXUS development pipeline (excluding trading) Completion over Next 2 years 2-5 years Beyond 5 years For personal use only Waterfront Place Precinct, Brisbane 12 Creek Street, Brisbane 100 Mount Street, North Sydney (
Slide 16: Funds Management – Established business with opportunities
FUNDS MANAGEMENT – Established business with opportunities 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 equit
Slide 17: 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 18: Capital Management – Strong balance sheet with conservative gearing
CAPITAL MANAGEMENT – Strong balance sheet with conservative gearing history Key metrics Position at 31-Dec-15 Diversified mix of facilities 144A 8% For personal use only Gearing (look-through)1 29.5% Bank Cost of debt2 4.9% USPP 24% Facilities 46% Duration of debt 5.2 years Hedged debt (ex caps)3 64
Slide 19: Summary
SUMMARY Strong management team in place For personal use only Majority of earnings generated from a high quality, Australian property portfolio Concentrated exposure to the Sydney office market where vacancy will tighten quickly Deep pipeline of value enhancement opportunities Opportunity
Slide 20: Appendices
APPENDICES For personal use only DEXUS Property Group – Asian Investor Roadshow June 2016 Slide 19
Slide 21: Trading – Case study: Phillip Street, Parramatta
TRADING – Case study: 105 Phillip Street, Parramatta APPROACH Proposed application to Parramatta City Council. For personal use only 105 Phillip Street is a 4,500sqm car park site adjacent to 130 George Street, Parramatta Identified an opportunity to develop an office tower at the rear of the co
Slide 22: Trading – Case study: 79-99 St Hilliers Road, Auburn
TRADING – Case study: 79-99 St Hilliers Road, Auburn APPROACH For personal use only The property is an older industrial estate spanning 3.5ha located 16km west of the Sydney CBD Demand for the older format warehouse and office product was declining Identified higher and better use to increase
Slide 23: Trading – Case study: Lakes Business Park South, Botany
TRADING – Case study: Lakes Business Park South, Botany DEXUS APPROACH Lakes For personal use only Site: 7.9ha DEXUS acquired Lakes Business Park in January Lettable: 43,617sqm 2015, comprising two adjoining sites located in Office: 30,379sqm Ind/wh: 13,238qm southern Sydney — Northern site compri
Slide 24: 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
Slide 25: Property expertise. Institutional rigour. Entrepreneurial spirit.
For personal use only Property expertise. Institutional rigour. Entrepreneurial spirit. www.dexus.com DEXUS Property Group – Asian Investor Roadshow June 2016 Slide 24