Dexus · ASX:DXS
Dexus — DEXUS Property Group — H1 2009 Earnings Presentation
30 slides from Dexus's earnings presentation, Feb 18, 2009
Slide 1: DEXUS Property Group Half Year Results 2008 — Appendices
DEXUS Property Group Half Year Results 2008 — Appendices
Slide 2: Balance sheet
Balance sheet DEXUS Property Group Dec 08 Jun 08 $’m $’m Cash & receivables 145 136 Property assets 8,948 8,738 Other (including derivative financial instruments & intangibles) 482 475 Total assets 9,575 9,349 Payables & provisions 277 323 Interest bearing liabilities 3,455 3,007 Other (including de
Slide 3: Net property income reconciliation to P&L
Net property income reconciliation to P&L 31 Dec 08 $’m Property revenue 342.8 Less: Property expenses (82.6) Plus: Net property income from equity a/c investments — Less: Amortisation, depreciation and eliminations (2.4) Total NPI 257.8 Represented by: Office 119.1 Industrial Australia 53.4 Industr
Slide 4: Interest reconciliation
Interest reconciliation 31 Dec 08 $’m $’m Interest paid/payable 100.3 Other finance costs 1.5 Interest expense 101.8 Realised interest rate swaps (5.0) Unrealised interest rate swaps MTM 407.2 Net fair value loss (gain) of interest rate swaps 402.2 Total interest expense 504.0 Less interest capitali
Slide 5: Profit to funds from operations reconciliation
Profit to funds from operations reconciliation Group Property MTM Incentive Straight Deferred P/L on sale RENTS Other Distributable Consolidated revals/ derivs & amort line rent tax of invest capital earnings Impairment FX adjust prop distribution Revenue from ordinary activities Property revenue 34
Slide 6: Funds management contribution
Funds Fundsmanagement Managementcontribution Contribution Arthur P 31 Dec 08 $’m Internal Responsible Entity fee revenue (at cost) 11.71 Third party management fees and other revenue 31.82 Compensation related expenses (30.8)3 Other corporate expenses (7.4)4 Management EBIT 5.3 Net interest expense
Slide 7: External revaluation summary
External revaluation summary Property sector % of book value Valuation External Previous Change in Portfolio average externally valued ($’m) revaluation book value book value % cap rate2% ($’m) Office Australia — NSW 43.2 1,284 (98) 1,382 (7.1) 6.6 Australia — VIC 25.3 160 25 135 18.2 7.7 Australia
Slide 8: Revaluation summary
Revaluation summary Office Industrial Retail North America Europe Total $m $m $m $m $m $m P&L Revaluations — investment properties External valuations (60) (14) — — (66) (140) Internal valuations (114) (64) — (384) — (562) Sub total (174) (78) — (384) (66) (702) P&L revaluations — PP&E External valu
Slide 9: Key financial risk management measures
Key financial risk management measures Dec 08 Jun 08 Gearing1 37.3% 33.2% Interest cover 2.7x 3.0x Headroom (approx) $700m $500m Duration of debt 3.0 yrs 3.0 yrs Interest hedge duration 6.0yrs 6.2 yrs Weighted average cost of debt2 5.3% 5.4% Debt hedged 91% 86% Foreign balance sheet hedged3 100% 93%
Slide 10: Debt profile
Debt profile Facility limit Drawn amount Maturity dates Security1 Currency A$’m A$’m Syndicated bank debt 300 227 Mar 10 Unsecured Multi-ccy, A$ limit1 303 303 Sept 10 Unsecured Multi-ccy, US$ limit2 Bilateral bank debt 360 308 Dec 10 Unsecured Multi-ccy, A$ limit1 145 70 Sept 11 Unsecured Multi-ccy
Slide 11: Debt profile by jurisdiction
Debt profile by jurisdiction Weighted average Interest bearing Cross currency Interest hedge cost of debt1 liabilities swaps3 duration % millions millions years Australia/New Zealand 5.65 A$1,896 A$(1,012) 5.0 USA 4.72 US$969 US$610 6.4 Europe 4.65 €83 €100 5.4 Canada 4.93 — C$70 9.0 Average/total2
Slide 12: Mark to markets
Mark to markets A$ interest rate swap US$ interest rate swap mark to market movement mark to market movement 0 5.00% 80 8.00% 60 -50 7.00% 40 4.00% 20 -100 6.00% US$m A$m % 0 % 5.00% -150 -20 3.00% -40 -200 4.00% -60 -80 Net movement (A$101m) 3.00% -250 Net movement (US$182m) 2.00% Jun-08 Dec-08 Jun
Slide 13: Interest rate hedging profile
Interest rate hedging profile Interest rate hedging HY09 FY09 FY10 FY11 FY12 FY13 Avg FY14+5 A$m average hedged1 822 696 776 791 643 499 313 A$ hedge rate (ex margin)2 4.50% 4.70% 4.59% 4.93% 4.86% 5.13% 6.08% A$ blended rate (inc margin)3 5.65% 5.47% 5.34% 6.41% 6.70% 6.88% 7.03% US$m average hedge
Slide 14: Foreign income hedging profile
Foreign income hedging profile Foreign income hedging HY09 FY09 FY10 FY11 FY12 FY13 Combined hedging profile 93% 90% 85% 87% 90% 90% US$ hedging profile1 97% 96% 92% 93% 97% 98% Foreign exchange contracts (US$m) 4.7 9.5 7.25 5.6 4.4 2.65 Average A$/US$ rate 0.6727 0.6844 0.6848 0.7084 0.7098 0.6657
Slide 15: Cross currency swap maturity profile
Cross currency swap maturity profile Cross currency swaps FY09 FY10 FY11 FY12 US$ maturities (US$m)1 78 120 172 240 US$ average rate2 0.8990 0.7040 0.7721 0.8121 € maturities (€m) 0 100 0 0 € average rate2 n/a 0.5046 n/a n/a CAD maturities (C$m) 0 70 0 0 US$ average rate2 n/a 0.8677 n/a n/a 1. Exclu
Slide 16: Portfolio composition (revenue and lease expiry)
Portfolio composition (revenue and lease expiry) Expiry year % of global rent FY09 FY10 FY11 FY12 FY13+ Australian office 47% 1% 4% 4% 4% 34% Australian industrial 18% 1% 2% 3% 4% 9% Retail 3% 1% 0% 1% 0% 1% North America industrial 27% 2% 5% 4% 4% 12% Europe industrial 5% 0% 1% 0% 1% 2% Total 100%
Slide 17: Developments – completed
Developments – completed Property Country Area Estimated Estimated sqm final cost1 yield on cost ($m) (%) Industrial Sperian, Redwood Gardens, Dingley Australia 3,400 3.9 7.5 San Antonio USA 42,371 20.0 8.8 Office 60 Miller Street, North Sydney Australia 4,532 25.2 8.3 Total completed 49.1 1. Conver
Slide 18: Developments – underway
Developments – underway Property Country Area Estimated Estimated Estimated Estimated sqm total cost to yield on completion cost1 completion total cost date (A$m) (A$m) (%) 1 Bligh Street, Sydney Australia 29,323 210 150 7.0 Jun HY 2011 123 Albert Street, Brisbane Australia 38,167 350 250 6.8 Dec HY
Slide 19: Acquisitions and disposals
Acquisitions and disposals Property Interest % Acquisition amount Notes A$m Acquisitions — Australia Greystanes, Western Sydney 100% 113 Staged acquisition with the remaining $57m to be paid Dec HY 09 as infrastructure is completed. Total acquisitions 113 Date Interest % Settlement amount Notes A$m
Slide 20: Whirlpool - investment program update
Whirlpool - investment program update The program’s overall blended yield estimated to be 6.6% Location Estimated Area Acquisition and acquisition date ‘000 estimated sqm cost ($m) Acquired to date Orlando, FL, USA Jun 07 47 US$25.1 Toronto, ONT, Canada Dec 07 70 C$71.4 Perris, CA, USA Jan 08 157
Slide 21: Developments – uncommitted pipeline
Developments – uncommitted pipeline Property Country Building Project Project Projected yield area estimate1,2 estimated to on project sqm (A$m) completion1,2 estimate cost (A$m) (%) Office — Australia 105 Phillip Street, Parramatta Australia 20,380 100 80 8 144 Wicks Road, North Ryde Australia 48,0
Slide 22: Australian major tenants by income
Australian major tenants by income % of Sector % of Sector Office NPI1 Industrial NPI2 1 Woodside Energy Ltd 6.3% 1 Coles Myer Limited 6.6% 2 State of NSW 5.1% 2 Elders Ltd 5.6% 3 Commonwealth of Australia 4.6% 3 Visy Steel Products 3.8% 4 State of Victoria 3.3% 4 IBM Global Services 3.1% 5 IBM Aust
Slide 23: Major tenants by location and income
Major tenants by location and income1 % of Europe % of North Europe NPI North America America NPI 1 Edeka Südwest 19.7% 1 Whirlpool Corporation 12.5% 2 Industriereifenkontor Lüdke 9.9% 2 AT&T Corporation 2.2% 3 Karstadt Vermietungsges. mbH 7.8% 3 US Government (TSA) 1.6% 4 Compass 7.7% 4 Savvis Comm
Slide 24: Retail — Whitford City Shopping Centre, WA
Retail — Whitford City Shopping Centre, WA Key statistics Book value $280m Ownership interest 50% Centre MAT ($psm) 7,516 Specialty MAT ($psm) 9,250 Total centre MAT growth ($psm) 6.2% Total centre MAT growth ($pa) 6.5% Total specialty MAT growth ($psm) 4.6% Total specialty MAT growth ($pa) 3.6% Spe
Slide 25: Australia/New Zealand office — lease expiry
Australia/New Zealand office — lease expiry As at 31 December 2008 25% 21.3% % of portfolio available for lease 20% 14.7% 13.5% 12.9% 15% 12.3% 11.6% 11.0% 10.9% 10.2% 9.4% 9.4% 8.9% 8.7% 8.2% 10% 7.9% 7.7% 6.8% 6.0% 5% 2.4% 2.3% 2.0% 1.8% 0% Vacant < 1 Year < 2 Years < 3 Years < 4 Years < 5 Years <
Slide 26: Australian industrial — lease expiry
Australian industrial — lease expiry As at 31 December 2008 18.8% 18.6% 20% 16.1% % of portfolio available for lease 16.0% 18% 15.1% 16% 14% 11.1% 10.5% 10.1% 12% 9.8% 9.3% 9.1% 10% 7.4% 6.5% 6.1% 8% 5.8% 5.7% 4.2% 4.2% 6% 4.0% 3.7% 3.4% 3.2% 4% 0.7% 0.6% 2% 0% Vacant <1 Year <2 Years <3 Years <4 Ye
Slide 27: North American industrial – lease expiry
North American industrial – lease expiry As at 31 December 2008 17.0% 15.8% 18% 14.9% % of portfolio available for lease 13.8% 16% 12.7% 12.0% 14% 10.5% 10.3% 10.0% 10.0% 10.0% 12% 9.2% 10% 8.2% 6.5% 8% 4.8% 4.7% 4.6% 6% 4.0% 3.8% 3.5% 3.6% 3.5% 3.3% 3.2% 4% 2% 0% Vacant <1 Year <2 Years <3 Years <4
Slide 28: European industrial – lease expiry
European industrial – lease expiry Germany As at 31 December 2008 45% 38.4% 37.6% % of portfolio available for lease 40% 35% 30% 25% 18.7% 17.9% 15.0% 20% 13.2% 12.0% 11.7% 15% 8.9% 7.2% 10% 5.1% 3.7% 3.6% 3.2% 1.8% 1.7% 5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0% Vacant < 1 Year < 2 Years < 3 Yea
Slide 29: Important Information
Important Information 77 Half Year Results presentation 2009
Slide 30: 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. Information in this presentation incl