Dexus · ASX:DXS
Dexus — Citi Australian and New Zealand Investment Conference 2019
15 slides from Dexus's conference presentation, Oct 15, 2019
Slide 1: ASX release: Citi Australian and New Zealand Investment Conference presentation
Dexus (ASX: DXS) ASX release 15 October 2019 Citi Australian and New Zealand Investment Conference presentation Dexus provides the attached presentation which will be used as a basis of discussion at the Citi Australian and New Zealand Investment Conference, to be held at the Sheraton Grand in Sydne
Slide 2: Citi Australian & New Zealand Investment Conference Presentation
Citi Australian & New Zealand Investment Conference Presentation October 2019 Dexus Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for Dexus
Slide 3: Key takeaways
Key takeaways Dexus benefits from Australian CBD exposure Australian office fundamentals are attractive - Relative pricing and rent growth for Australian office compares favourably to global cities - Measured supply at a time of record low vacancy levels (Sydney and Melbourne) - CBDs continue to ben
Slide 4: Megatrends
Megatrends Dexus’s strategy is orientated around two key long-term growth thematics 1 2 We are in a climate of rapid Urbanisation Growth in pension capital fund flows change and the context in which we operate our Densification of land use in and around key Increased demand for real assets from econ
Slide 5: Dexus overview
Dexus overview $31.8 billion under management1 Dexus distribution per security (cents)2 PROPERTY PORTFOLIO - Proxy for Australian office property $15.6 billion1 • Overweight position to Sydney market 6.6% CAGR since FY12 FUNDS MANAGEMENT - Outperforming and growing Funds $16.2 billion1 Management bu
Slide 6: High quality portfolio weighted to Australian CBDs
High quality portfolio weighted to Australian CBDs With positive outlook for cap rate compression Office portfolio asset diversification Sydney Office cap rate spread to 10-year Aus govt bonds Premium Grade September 1994 – September 20193, % 31% 5.15% office portfolio 5% WACR 1 at 30 June Developme
Slide 7: Pricing in Australia remains attractive
Pricing in Australia remains attractive Relative pricing and rent growth for Australian office compare favourably to global cities Global yield and rent growth comparison Effective yield spread over local government bond (10yr) EU Asia US AU EU Asia US AU Effective 5% Yield Spread to 4.0% Chicago Me
Slide 8: Office portfolio expiry profile
Office portfolio expiry profile Diversified expiry profile provides upside exposure with limited downside Dexus office lease expiry profile at 30 June 2019 20% Total Sydney 16.4% Total portfolio 4% under-rented 15% 13.3% as at 30 June 2019 12.8% 11.6% 10% 6.9% Sydney portfolio 8% under-rented with 2
Slide 9: Office market outlook
Office market outlook Dexus’s CBD office strategy leverages powerful urban growth trend NSW employment growth by region Index Long-term national growth in white collar employment is State Greater City Inner City 160 running at 2.7%, with total employment at 2.0% 150 140 - Job creation remains above
Slide 10: Office workspace trends
Office workspace trends Workspace density has created significant pent up demand Sydney CBD workspace ratio All office space Office work areas Structural: 78% of office work 17.4 areas are now open plan rather than 14.2 18% walled/partitione 11.6 d 8.8 Cyclical: Significant pent up demand as firms s
Slide 11: Flexible workspace offering
Flexible workspace offering Dexus focus on making things ‘simple and easy’ for our customers Flexible space penetration rates Dexus response 8% - Co-working competes with other space providers to a degree, Structural: 7% 78% of office work however it also increases overall demand by drawing in small
Slide 12: Providing investors with stable growth in the long term
Providing investors with stable growth in the long term Office demonstrates lower income volatility and diversified portfolios absorb one-off shocks Total returns over various periods Total returns, %, annualised Retail Office Industrial 6.2% 6.3% 2.7% 3.6% 3.0% 3.5% Capital return Income return 8.1
Slide 13: Summary
Summary Dexus well positioned - Relative pricing and rent growth for Australian office compares favourably to global cities - Dexus well positioned through its high quality property portfolio, development pipeline, diversified lease expiry profile, fixed rental increments of 3.5-4.0%, and ongoing cu
Slide 14: Important information
Important information - This presentation is issued by Dexus Funds Management Limited (DXFM) in its capacity as responsible entity of Dexus (ASX:DXS). It is not an offer of securities for subscription or sale and is not financial product advice. - Information in this presentation including, without
Slide 15: Dexus
dexus
Dexus — Citi Australian and New Zealand Investment Conference 2019 on 6ix