Dexus · ASX:DXS
Dexus — DEXUS Property Group — Investor Presentation (April 2009)
38 slides from Dexus's investor presentation, Apr 22, 2009
Slide 1: Cover letter: revised Equity Raising Investor Presentation
DEXUS Funds Management Limited 22 April 2009 ABN 24 060 920 783 AFSL: 238163 For personal use only Level 9, 343 George Street Sydney NSW 2000 PO Box R1822 Royal Exchange NSW 1225 The Manager Australian Stock Exchange Limited Telephone 02 9017 1100 20 Bridge Street Direct 03 8611 2930 Sydney NSW 2000
Slide 2: DEXUS Property Group Equity raising
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only DEXUS Property Group Equity raising 1,152 million new securities at $0.65 per new security to raise up to $749 million 21 April 2009 DEXUS Funds Management Limited ABN 24 060 920 783 Australian Financial Se
Slide 3: Important information
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS 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) (DEXUS) comprising DEXUS Diversified Trust
Slide 4: Contents
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Contents For personal use only Overview The Equity Raising Capital management and positioning for the future Key risks Summary Appendices I. Risks – additional detail II. Foreign jurisdictions – selling restrictions an
Slide 5: Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only Overview
Slide 6: Active capital management
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Active capital management For personal use only DEXUS has – Actively pursued a strategy of maintaining a strong asset base and capital structure – Maintained focus on our business model of high quality office and industrial pr
Slide 7: Well positioned in the A-REIT sector
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Well positioned in the A-REIT sector For personal use only The leading owner, manager, developer of high quality office and industrial properties in Australia – Vertically integrated office and industrial structure and experie
Slide 8: Four strategic initiatives
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Four strategic initiatives For personal use only 1. Primary focus on leadership in Australian office and industrial properties – Providing world-class property solutions – Continue to internalise office property management – Con
Slide 9: The Equity Raising
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only The Equity Raising
Slide 10: The Equity Raising – enhancing DEXUS's outlook
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS The Equity Raising – enhancing DEXUS’s outlook For personal use only DEXUS is undertaking an institutional placement and accelerated entitlement offer (together the Equity Raising) to raise approximately $617 million (maximum
Slide 11: Offer structure
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Offer structure For personal use only The Equity Raising of up to $749 million comprises: – An institutional placement of approximately 138.5 million new securities at $0.65 per new security to raise approximately $90 million
Slide 12: Offer metrics
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Offer metrics For personal use only Offer discounts Discount to NTA5 25.0% Underlying operating performance is consistent with 21.2% 22.3% 50.0% FFO guidance of 10.8 cps provided at December 2008 43.0% 20.0% Half Year results,
Slide 13: Indicative timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Indicative timetable For personal use only Institutional offer opens 21 April 2009 Institutional offer closes 5.00pm (Sydney time) 22 April 2009 Institutional allocations advised 22 April 2009 Record date to determine right to p
Slide 14: Capital management and positioning for the future
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only Capital management and positioning for the future
Slide 15: Track record of active capital management
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Track record of active capital management For personal use only Gearing significantly reduced since stapling in Actual gearing2 2004 – Well within gearing covenant level - 2004 to 2008 Sold $1.1 billion of assets since 30 Ju
Slide 16: Further capital management initiatives
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Further capital management initiatives For personal use only Target gearing below 40% Actual & pro-forma gearing The Equity Raising reduces pro-forma gearing to - 2004 to 20081,2 30.2%1,2 and enhances the ability to 50.0% –
Slide 17: DEXUS well placed to manage 2010 debt refinancing
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS DEXUS well placed to manage 2010 debt refinancing For personal use only Current pro-forma available liquidity totals $1.4 Maturity profile Dec 08 billion4 comprising – Existing available undrawn facilities of $764 million1 – E
Slide 18: Pro-forma balance sheet
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Pro-forma balance sheet For personal use only Pro-forma Pro-forma Sale of 1 Bligh Underwritten Pro-forma Actual interest component Fully subscribed Consolidated ($m) December 2008 December 2008 December 2008 December 2008 Total
Slide 19: Key risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only Key risks
Slide 20: Key risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Key risks For personal use only Development activities Refinancing requirements Impact of foreign exchange movements on assets, liabilities and gearing Whirlpool acquisitions DEXUS specific Availability of capital risk
Slide 21: Summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only Summary
Slide 22: Summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Summary For personal use only Secures DEXUS’s position as a leading A-REIT – High quality office and industrial property portfolio – Sustainable underlying core property earnings – Attractive property fundamentals June 2009
Slide 23: Appendix I: Risks - additional detail
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only Appendix I Risks - additional detail
Slide 24: Risks – additional detail
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Risks – additional detail For personal use only This section identifies the key risks associated with an investment in stapled securities in DEXUS (Securities). These risks are not exhaustive of the risks faced by potential inve
Slide 25: Risks – additional detail (continued)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Risks – additional detail (continued) For personal use only Refinancing requirements DEXUS is exposed to risks relating to the refinancing of existing debt instruments and facilities DEXUS has $550 million of debt maturing b
Slide 26: Risks – additional detail (continued)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Risks – additional detail (continued) For personal use only Availability of capital Real estate investment and development is highly capital intensive DEXUS's ability to raise funds in the future on favourable terms depends
Slide 27: Risks – additional detail (continued)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Risks – additional detail (continued) For personal use only Impact of DEXUS RENTS and other factors affecting ordinary distributions DEXUS has issued Real-estate perpetual ExchaNgeable sTep-up Securities (RENTS), the terms of
Slide 28: Risks – additional detail (continued)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Risks – additional detail (continued) For personal use only Fixed nature of costs Many costs associated with the ownership and management of property assets are fixed in nature The value of assets may be adversely affected i
Slide 29: Risks – additional detail (continued)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Risks – additional detail (continued) For personal use only Taxation Changes in tax law (including goods and services taxes and stamp duties), or changes in the way taxation laws are interpreted in the various jurisdictions in
Slide 30: Risks – additional detail (continued)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Risks – additional detail (continued) For personal use only Other general risks Inflation – Higher than expected inflation rates generally or specific to the property sector could be expected to increase operating costs and de
Slide 31: Appendix II: Foreign jurisdictions – selling restrictions and limitations
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only Appendix II Foreign jurisdictions – selling restrictions and limitations
Slide 32: Foreign jurisdictions – selling restrictions and limitations
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Foreign jurisdictions – selling restrictions and limitations For personal use only This presentation and any accompanying documents do not constitute an offer or invitation in any jurisdiction in which, or to any person to whom,
Slide 33: Foreign jurisdictions – selling restrictions and limitations
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Foreign jurisdictions – selling restrictions and limitations For personal use only Hong Kong This presentation and any accompanying documents have not been, and will not be, registered as a prospectus in Hong Kong nor has it bee
Slide 34: Foreign jurisdictions – selling restrictions and limitations
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Foreign jurisdictions – selling restrictions and limitations For personal use only Singapore continued (a) to an institutional investor or to a relevant person, or to any person pursuant to an offer that is made on terms that su
Slide 35: Foreign jurisdictions – selling restrictions and limitations
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Foreign jurisdictions – selling restrictions and limitations For personal use only Germany The Securities are neither registered for public distribution with the Federal Financial Supervisory Authority (Bundesanstalt für Finanzd
Slide 36: Foreign jurisdictions – selling restrictions and limitations
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Foreign jurisdictions – selling restrictions and limitations For personal use only Norway The offering of Securities is not subject to the Norwegian Investment Fund Act of 1981 or the public offering rules of the Norwegian Secur
Slide 37: Appendix III: Stock lending and other transactions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS For personal use only Appendix III Stock lending and other transactions
Slide 38: Stock lending and other transactions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Stock lending and other transactions For personal use only Eligible security holders will be entitled to apply under the entitlement offer for a certain number of new securities held as at 7:00pm (AEST) on 24 April 2009 (Recor
DEXUS Property Group — Investor Presentation (April 2009) on 6ix