Dexus · ASX:DXS
Dexus — DEXUS Property Group — 2014 Citi Global Property CEO Conference
31 slides from Dexus's conference presentation, Mar 3, 2014
Slide 1: ASX release: 2014 Citi Global Property CEO Conference
DEXUS Property Group (ASX: DXS) ASX release 3 March 2014 2014 Citi Global Property CEO Conference For personal use only DEXUS Property Group today releases an overview presentation for the 2014 Citi Global Property CEO Conference. The conference will be held from Monday 3 March to Wednesday 5 March
Slide 2: DEXUS Property Group Citi Global Property CEO Conference March 2014
DEXUS PROPERTY GROUP CITI GLOBAL PROPERTY CEO CONFERENCE MARCH 2014 For personal use only DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS AFSL Property 238163 Group 2014 as responsible Citi for entity Global Property DEXUS CEO Property Conference Group Slide 1
Slide 3: Agenda
AGENDA For personal use only Overview Strategy Commonwealth Property Office Fund (CPA) transaction Portfolio overview Third party funds management Capital management Financial results Market outlook Summary Note: All figures in Australian dollars as at 31 December 2013, and all por
Slide 4: Overview
OVERVIEW DEXUS Property Group For personal use only DEXUS Property Group platform $17.3bn AUM Top 50 Listed entity1 DXS portfolio investments Third Party Funds Management $9.1bn $8.2bn Industrial 29 years Industrial $1.0bn 12% $1.6bn Office 18% $3.9bn Property, funds & development 48% management exp
Slide 5: Strategy
STRATEGY A clear and focused strategy For personal use only DEXUS Property Group 2014 Citi Global Property CEO Conference Slide 4
Slide 6: Commonwealth Property Office Fund (CPA) Transaction Overview
COMMONWEALTH PROPERTY OFFICE FUND (CPA) TRANSACTION Overview For personal use only DEXUS and Canada Pension Plan Investment Board (CPPIB) announced a joint takeover offer for CPA in December 2013 — Acceptances of 88.2% as at 27 February 2014 — Expect to proceed to compulsory acquisition of CPA Uni
Slide 7: Pro forma impact on DEXUS's key metrics
COMMONWEALTH PROPERTY OFFICE FUND (CPA) TRANSACTION Pro forma impact on DEXUS’s key metrics For personal use only FY14 FFO cents per security impact assuming 1 March 2014 implementation 0.061 8.35 0.10 8.29 8.19 FY14 guidance Impact of 14.9% FY14 revised 4 month impact of Pro forma FY14 FFO pre-bid
Slide 8: Pro forma impact on DEXUS's key metrics
COMMONWEALTH PROPERTY OFFICE FUND (CPA) TRANSACTION Pro forma impact on DEXUS’s key metrics For personal use only 1.AUM includes assets owned by DEXUS, CPA and DEXUS Third Party managed funds. Represents assets within the CBD, as defined by the Property Council of Australia (PCA) Office Market Repor
Slide 9: Portfolio
PORTFOLIO AGENDA OVERVIEW ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLD Key message (Trebuchet MS (Heading) 18) For personal use only DEXUS existing owned and managed portfolio and CPA portfolio to be acquired - Sydney CBD, NSW DEXUS Property Group 2014 – Presentation Citi Global Title Property — Slide
Slide 10: Portfolio Overview
PORTFOLIO OVERVIEW Group property portfolio including third party funds For personal use only $17.3bn 6 OFFICE 8 INDUSTRIAL $1.3 BILLION $0.2 BILLION Total funds under management 3 RETAIL, $0.5 BILLION 34 OFFICE 45 INDUSTRIAL 4 OFFICE $7.0 BILLION $1.6 BILLION $0.8 BILLION $11.4bn $2.6bn $3.3bn 4 RE
Slide 11: Direct Portfolio Overview: Office portfolio
DIRECT PORTFOLIO OVERVIEW Office portfolio — 82% of balance sheet with 87% prime grade For personal use only T: Australia Square, 264-278 George Street, Sydney 1 Bligh Street, Sydney, Premium grade $251m Governor Phillip & Macquarie Towers 1 Farrer Place, Sydney A-grade $311m (50% interest) (33% int
Slide 12: Direct Portfolio Overview: Office portfolio
DIRECT PORTFOLIO OVERVIEW Office portfolio For personal use only Property type by book value $7.5bn Development 2% Prime quality office portfolio Carparks Office parks 3% 2% B-grade 6% Largest listed office portfolio in Australia Premium — Largest institutional owner of office in Sydney CBD with 2
Slide 13: Office portfolio lease expiry profile
DIRECT PORTFOLIO OVERVIEW Office portfolio — lease expiry profile For personal use only Lease expiry profile1 by income as at 31 December 2013 14% 13.2%2 12% 10% 9.6%2 10.8% 10.0% 8% 8.8% 8.3% 6% 5.6%2 5.4% 4% 2.9% 2% 0% Vacant FY14 FY15 FY16 FY17 FY18 1. Excluding CPA portfolio. 2. 30 June 2013 pos
Slide 14: Direct Portfolio Overview: Industrial portfolio
DIRECT PORTFOLIO OVERVIEW Industrial portfolio — 18% of balance sheet For personal use only T: DEXUS Industrial Estate, 27 Distribution Drive, Laverton North $9.2m (50% interest) T: DEXUS Industrial Estate, 1-3 Distribution Drive, Laverton North $6.0m (50% interest) B: Quarry Industrial Estate, 1 Be
Slide 15: Industrial portfolio
DIRECT PORTFOLIO OVERVIEW Industrial portfolio For personal use only Geographical weighting by book value $1.6bn Adelaide Brisbane 2% Prime quality industrial portfolio 5% Sydney Focused on major industrial hubs and arterial roadways in 53% $1.6bn Sydney, Melbourne and Brisbane Melbourne 40% 50 pr
Slide 16: Corporate Responsibility and Sustainability
DIRECT PORTFOLIO OVERVIEW Corporate Responsibility and Sustainability For personal use only 4.8 stars 3.5 stars NABERS Energy rating1 NABERS Water rating1 Achieved $5.3 million p.a. savings from energy efficiency improvements and reductions in tenant outgoings Outperformed in IPD Green Building
Slide 17: Development and fund-through pipeline: Group
PORTFOLIO OVERVIEW Development and fund-through pipeline — Group For personal use only $2.8bn Total Group development pipeline Total estimated project cost DXS developments and fund-throughs Total est Est cost to cost1 complete1 FY14 FY15 FY16+ DEXUS Industrial Estate, Laverton North $122m $97m $122
Slide 18: Third Party Funds Management
THIRD PARTY AGENDA ITEM FUNDS MANAGEMENT TITLE (TREBUCHET MS (HEADING) 20 BOLD Key message (Trebuchet MS (Heading) 18) For personal use only DEXUS Property Group 2014 – Presentation Citi Global Title Property — Slide CEO17 Conference Slide 17
Slide 19: Third party funds management: Delivering on strategy
THIRD PARTY FUNDS MANAGEMENT Delivering on strategy For personal use only Third party funds under management $8.2bn post CPA transaction Third party funds management platform CPPIB DWPF $1.7bn $4.6bn Substantial funds management platform including — $4.6bn DEXUS Wholesale Property Fund (DWPF) - di
Slide 20: Capital Management
CAPITAL ITEM AGENDA MANAGEMENT TITLE (TREBUCHET MS (HEADING) 20 BOLD Key message (Trebuchet MS (Heading) 18) For personal use only DEXUS Property Group 2014 – Presentation Citi Global Title Property — Slide CEO19 Conference Slide 19
Slide 21: Prudent and disciplined capital management
CAPITAL MANAGEMENT Prudent and disciplined capital management For personal use only Active approach to capital and risk management Debt maturity profile2 A$m Solid stable credit ratings — Standard & Poor’s BBB+ 1,400 (Credit Watch Positive) and Moody’s Baa1 (developing outlook) Bank DCM 1,200
Slide 22: Financial Results
FINANCIAL RESULTS For personal use only DEXUS Property Group 2014 Citi Global Property CEO Conference Slide 21
Slide 23: Financial Results
FINANCIAL RESULTS For personal use only 6 months to 12 months to 12 months to 12 months to 31 Dec 2013 30 Jun 2013 30 Jun 2012 30 Jun 2011 Key financial metrics Statutory net profit $277.2m $514.5m $181.1m $553.0m FFO1 $189.8m $365.4m $367.8m $358.0m FFO per security 4.08c 7.75c 7.65c 7.40c Distribu
Slide 24: Corporate revenue and expenses
FINANCIAL RESULTS Corporate revenue and expenses For personal use only Net profit from management operations HY14 Property Development Funds Total management & trading1 management ($m) Revenue 16.6 4.1 14.5 35.2 Operating expenses2 (12.1) (1.1) (6.3) (19.5) Cost of sales — active trading - (3.3) - (
Slide 25: Market Outlook
MARKET ITEM AGENDA OUTLOOK TITLE (TREBUCHET MS (HEADING) 20 BOLD Key message (Trebuchet MS (Heading) 18) For personal use only DEXUS Property Group 2014 – Presentation Citi Global Title Property — Slide CEO24 Conference Slide 24
Slide 26: Why office demand will improve from FY15
MARKET OUTLOOK Why office demand will improve from FY15 For personal use only Demand to improve in FY15 due to DEXUS Office Demand Barometer points to improvement Actual demand — Economy responding to easing monetary policy 12% % of stock (annualised) Barometer and lower AUD 8% — Improving busines
Slide 27: Industrial markets relatively stable
MARKET OUTLOOK Industrial markets relatively stable For personal use only Lead indicators for demand now improving Consumption – to drive rental growth (business confidence, consumer confidence) % p.a. NSW consumption spending RHS Outer West Rent Growth 12% 6% forecast Demand to be driven by ten
Slide 28: Investment demand
MARKET OUTLOOK Investment demand For personal use only Markets nearing low point of rent cycle – growth Capitalisation rates – prime and secondary (Sydney CBD) anticipated medium/long term Spread (RHS) Best prime Lower secondary 10% 3% Further declines in capitalisation rates should 9% lead to f
Slide 29: Summary
SUMMARYITEM TITLE (TREBUCHET MS (HEADING) 20 BOLD AGENDA Key message (Trebuchet MS (Heading) 18) For personal use only DEXUS Property Group 2014 – Presentation Citi Global Title Property — Slide CEO28 Conference Slide 28
Slide 30: Summary
SUMMARY For personal use only Delivered a solid result in a challenging market Expect office market conditions to improve in FY15 Focus moving forward: — Ensure CPA portfolio is successfully integrated — Continue to drive earnings from existing business Market guidance for FY141 — FFO per se
Slide 31: Important Information
IMPORTANT INFORMATION For personal use only 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
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