Dexus Industria Reit · ASX:DXI
Dexus Industria Reit — HY25 Earnings Presentation
42 slides from Dexus Industria Reit's earnings presentation, Feb 12, 2025
Slide 1: Dexus Industria REIT 2025 half year results ASX release
Dexus Industria REIT (ASX:DXI) ASX release 12 February 2025 2025 half year results presentation and property synopsis Dexus Industria REIT (DXI) releases its 2025 half year results presentation. An investor conference call will be webcast today at 10.00am on www.dexus.com/investor-centre The propert
Slide 2: Half year results
Half year results 12 February 2025 Dexus Asset Management Limited ACN 080 674 479, AFSL 237500 Dexus Asset Management Limited | ACN 080 674 479, AFSL 237500 as responsible entity for Industria Trust No. 1, Industria Trust No. 2, As responsible entity for Industria Trust No. 1, Industria Trust No. 2,
Slide 3: Acknowledgement of Country
Acknowledgement of Country Dexus Industria REIT 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. Artwork: The Land and
Slide 4: Agenda
Agenda 01 02 03 Introduction Financial Portfolio performance and highlights overview and market dynamics Page 4 Page 11 Page 15 04 05 Summary Appendices Page 22 Page 25 3 | 2025 Half Year Results
Slide 5: Introduction and highlights
1-3 Westrac Drive, Tomago NSW 01 Introduction and highlights 4 | 2025 Half Year Results
Slide 6: DXI investment proposition
DXI investment proposition To generate strong risk-adjusted returns for investors seeking listed industrial real estate exposure in Australia Deliver organic income Reliable custodian of capital Active portfolio management Aligned manager with deep growth real asset capability - Executing on asset p
Slide 7: HY25 highlights
HY25 highlights Strong leasing outcomes and developments enhancing portfolio quality On-track to deliver Delivered resilient Leasing success driving FY25 guidance income growth sustained high occupancy HY25 FFO 9.1 cps (up 5.7% on pcp) +4.7% portfolio like-for-like growth1 30,329 sqm stabilised leas
Slide 8: Delivering resilient income growth with development upside
Delivering resilient income growth with development upside Property Embedded growth Income resilience Track record of leasing success 87% linked to fixed reviews with strong inflation Stable earnings with potential development upside (sqm)1 protection (% by income) (% by income) ~4% 150 30% Sqm (‘00
Slide 9: Lease expiries located in attractive sub-markets
Lease expiries located in attractive sub-markets Lease expiry by location Strong track record in delivering leasing outcomes (% of DXI income) above valuation assumptions 20% 5% 16% Longer-dated Victorian expiries concentrated in under-rented assets 12% 4% 12% 8% 5% 1% Industrial expiries in Western
Slide 10: Diverse and high-quality tenant base
Diverse and high-quality tenant base Diversified tenant base across range of sectors Top 10 tenants account for 40% of portfolio income (% of DXI income) (% of DXI income) 9.7 years remaining on 16% WesTrac lease 11% 4% 20% 3% 3% 7% 3% 12% 17% 3% 2% Other tenants account for 60% of income, 14% inclu
Slide 11: Sustainability progress
Sustainability progress Committed to pursuing sustainability and maintaining carbon neutral status DXI initiatives Aligned to Dexus Sustainability Strategy Priority Area DXI future focus Embedded initiatives Maintained carbon neutral position Moorebank development across DXI controlled and managed i
Slide 12: Financial overview
Baker Hughes, ASCEND at Jandakot 02 Financial overview 11 | 2025 Half Year Results
Slide 13: HY25 financial result
HY25 financial result Active management and quality portfolio underpin strong financial results Profit & loss HY25 HY24 Change Portfolio like-for-like growth of 4.7%3 supported by 3.7% average rent reviews. Like- Property FFO ($m) 41.7 41.1 1.6% for-like growth was partly offset by asset divestments
Slide 14: Balance sheet and capital management
Balance sheet and capital management Strong capital management providing flexibility for value-enhancing investments Proactively strengthening Active capital Key metrics1 31 Dec 2024 30 Jun 2024 the balance sheet management approach - Proactive divestment activity in recent - Look-through gearing of
Slide 15: Portfolio valuation movements
Portfolio valuation movements Valuation uplifts driven by strong leasing and development outcomes Property portfolio valuation summary – 31 Dec 20241 100% of portfolio independently valued as at 31 December 2024 31 Dec 2024 Revaluation Cap rate Revaluation Cap rate Portfolio book value change 6 mont
Slide 16: Portfolio performance and market dynamics
Amazon, ASCEND at Jandakot 03 Portfolio performance and market dynamics 15 | 2025 Half Year Results
Slide 17: Industrial performance
Industrial performance Well-located portfolio supporting organic growth and solid leasing outcomes Embedded rental growth - Average 3.8% rent reviews - 2.4%1 like-for-like income growth, impacted by intra-period vacancy $1.3bn 5.90% 99.7% 6.1 year 28,830sqm4 - +12.2% re-leasing spreads, 10.5% above
Slide 18: Developments
Developments $269 million1 development pipeline positioned to enhance value and growth High-quality development pipeline in major hubs across Sydney and Perth1 (sqm to be delivered at 100%) Fixed priced contracts reduce 213,400 1,090,300 construction cost risk Four new projects activated at ASCEND a
Slide 19: Developments
Developments Unlocking value by capturing tenant flight to quality Completed developments Committed developments - Six committed projects spanning - 20,300sqm industrial facility, 74,500sqm across 15 tenancies 100% leased to five tenants in - Expecting YOC of c. 6.0% at Moorebank diverse industries
Slide 20: Industrial market conditions remain favourable
Industrial market conditions remain favourable Supply levels expected to remain moderate, impacted by high project costs and planning delays, supporting a low vacancy outlook Moderate supply in 2025, remains below historical take-up Vacancy expected to remain low Committed supply Current Vacancy '00
Slide 21: Transaction market dynamics
Transaction market dynamics Transactional activity with cap rates stabilising supports valuations and NTA Industrial investment volumes remain above pre-COVID levels Prime industrial cap rate expansion slowing $ billions Sydney Melbourne Brisbane Adelaide Perth Sydney Melbourne Brisbane Adelaide Per
Slide 22: Brisbane Technology Park performance
Brisbane Technology Park performance Strong operational performance, driven by positive leasing outcomes Continued leasing success - High occupancy maintained following substantial leasing success in FY24 - Attractive value proposition compared to broader Brisbane CBD market with average net $162m 7
Slide 23: Summary
2 Maker Place, Truganina VIC 04 Summary 22 | 2025 Half Year Results
Slide 24: Strategic execution
Strategic execution Strategic priorities to enhance portfolio performance and value for investors Strategic priority areas Consider divestments and value-enhancing Active asset management Inherent growth through developments acquisitions in line with strategy • Execute on asset plans • Disciplined a
Slide 25: Attractive investment proposition
ASCEND at Jandakot Attractive investment proposition Well placed to generate organic income growth from attractive mix of fixed and CPI-linked rental escalators, with minimal near-term expiries providing high income visibility Demonstrable momentum in activating high-quality developments, supporting
Slide 26: Appendices
8 Clunies, Brisbane Technology Park QLD 05 Appendices 25 | 2025 Half Year Results
Slide 27: Geographical presence
Geographical presence National portfolio at scale New South Wales Western Australia Delivering new development in core Perth’s leading master-planned Queensland industrial market with low vacancy estate with occupiers including $225m 16% 14 Leading investment at WesTrac Amazon and Marley Spoon Weste
Slide 28: Lease expiry profile
81-93 Rushdale Street, Knoxfield VIC Lease expiry profile Industrial – 89% of portfolio value (% by total DXI income) 15.8% 11.8% 6.8% 0.0% 3.7% 2H25 FY26 FY27 FY28 FY29 Brisbane Technology Park – 11% of portfolio value (% by total DXI income) 3.9% 4.5% 2.2% 0.8% 1.4% 2H25 FY26 FY27 FY28 FY29 27 | 2
Slide 29: Portfolio tenancy mix
140 Sharps Road, Tullamarine VIC Portfolio tenancy mix Tenant type (% by income) 25% 27% 8% 4% 18% 18% ASX listed Listed multinational National Multinational Government Private and other 28 | 2025 Half Year Results
Slide 30: ASCEND at Jandakot
ASCEND at Jandakot1 Continued solid operating performance Stabilised portfolio Developments General aviation airport Reece, ASCEND at Jandakot operations - 99.2% occupancy (by income) - Targeting 6.25%+ yield on cost for - 18.1 year WALE (by income) - 5.5 year WALE (by income) new developments3 - Re
Slide 31: ASCEND at Jandakot
ASCEND at Jandakot 306 Aquatic Leisure 307 Tyremax 309 Key metrics1 Main Roads 308 310 214 1.83ha 1.51ha 2.89ha 205 311 206 302 Butcher 59 assets 213 CAFFI 202A 200A Energy ACCO Storage 203 ERGT 212 Aveling HDS Logistix 312 EF-Tech 1.39ha 211 200 201 314 301 Retail Spudshed 207 CSR Hydra Coregas Mix
Slide 32: ASCEND at Jandakot
ASCEND at Jandakot Strategically located with convenient access to key regional infrastructure Located adjacent to arterial roads with good access to public transport › Access to Roe Highway and Kwinana Freeway, › Onsite amenity improves tenant satisfaction and attraction Appeals to a broad variety
Slide 33: Developments
Developments Building area Building area Leased by Development Est. project Remaining Est. yield on Est. final Project (sqm at DXI (sqm at 100%) area %1 status costs2 spend2 cost3 completion ownership) Completed 5 Spartan Street, ASCEND at Jandakot, WA 20,300 6,800 100% Completed $16m - 6.6% Sep-24
Slide 34: Independent valuations
Independent valuations Occupancy by Reval gain/(loss) Cap rate mvmt Property Book value ($m) Cap rate (%) income (%) ($m) (bps) 34 Australis Drive, Derrimut VIC 100% 47.5 0.0 6.00% 0 80-96 South Park Drive, Dandenong South VIC 100% 45.3 0.8 5.63% 13 1 West Park Drive, Derrimut VIC 100% 19.3 0.5 6.00
Slide 35: Independent valuations (cont'd)
Independent valuations (cont’d) Occupancy by Reval gain/(loss) Cap rate mvmt Property Book value ($m)2 Cap rate (%) income (%) ($m)2 (bps) ASCEND at Jandakot, WA – stabilised portfolio 99.5% 398.3 19.1 5.63% 13 ASCEND at Jandakot, WA – development n.a. 58.4 0.6 n.a. n.a. 12 Church Road, Moorebank NS
Slide 36: Profit & loss and FFO reconciliation
Profit & loss and FFO reconciliation Direct investments (100% owned) Joint ventures1 Total portfolio $’000 HY25 HY24 HY25 HY24 HY25 HY24 Property revenue 36,446 36,049 16,207 15,097 52,653 51,146 Property expenses (7,030) (6,500) (3,887) (3,574) (10,917) (10,074) Property FFO 29,416 29,549 12,320 11
Slide 37: Interest reconciliation
Interest reconciliation $’000 HY25 HY24 Total statutory finance costs 7,559 7,618 Less: Debt modification (890) (357) Add: Finance costs attributable to investments accounted for using the equity method 1,793 2,441 Less: Interest expense on lease liability (749) (699) Finance costs for FFO1 7,713 9,
Slide 38: Balance sheet and gearing
Balance sheet and gearing Look-through balance sheet Gearing $’000 31 Dec 2024 30 Jun 2024 $’000 31 Dec 2024 30 Jun 2024 Cash and cash equivalents 13,593 12,919 Balance sheet gearing Investment properties1 1,434,790 1,384,779 Drawn debt 287,000 266,000 2 Finance lease receivable 65,426 64,213 Total
Slide 39: Book value reconciliation
Book value reconciliation Direct investments (100% owned) Joint ventures1 Total portfolio $’000 31 Dec 2024 30 Jun 2024 31 Dec 2024 30 Jun 2024 31 Dec 2024 30 Jun 2024 Investment properties 935,500 924,501 - - 935,500 924,501 Investments accounted for using the equity method - - 499,290 460,278 499,
Slide 40: Interest rate hedging profile
Interest rate hedging profile Balance sheet Look-through $500m 5.0% $500m 5.0% 61% 54% 42% 18% $450m $450m 3.8% 3.8% 3.8% $400m 3.8% 4.0% $400m 3.6% 4.0% $350m $350m 2.8% 2.8% $300m 3.0% $300m 3.0% 260 $250m $250m 231 177 2.3% $200m 2.0% $200m 178 2.0% 148 $150m $150m 120 $100m 75 1.0% $100m 78 1.0%
Slide 41: Important information
Important information This presentation (“Material”) has been prepared by Dexus Asset Management Limited (ACN 080 674 479, AFSL No. 237500) ("DXAM") as the responsible entity of Industria Trust No. 1 (ARSN 125 862 875), Industria Trust No. 2 (ARSN 125 862 491), Industria Trust No. 3 (ARSN 166 150 93
Slide 42: dexus
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