Dexus · ASX:DXS
Dexus — DEXUS Property Group — H1 FY2011 Earnings Presentation
96 slides from Dexus's earnings presentation, Feb 16, 2011
Slide 1: ASX release and presentation for the half year ending 31 December 2010
DEXUS Property Group ASX release 16 February 2011 ASX release and presentation for the half year ending 31 December 2010 For personal use only DEXUS Property Group (DXS), provides the following documents to the ASX Limited: • ASX Release – DEXUS Property Group announces improving first half performa
Slide 2: DEXUS announces improving first half performance
DEXUS Property Group (ASX:DXS) ASX/media release 16 February 2011 DEXUS Property Group (ASX: DXS) announces improving first half performance For personal use only DEXUS Property Group today announced a Net Profit after Tax of $294.4m for the six months ended 31 December 2010, turning from a $107.0m
Slide 3: Portfolio Highlights
DEXUS Property Group (ASX:DXS) ASX/media release PORTFOLIO HIGHLIGHTS Key portfolio metrics: For personal use only Office Industrial Industrial US Total2 Occupancy % 96.5 97.4 86.4 90.0 Tenant retention % 76 71 65 n/a WALE(years) 5.6 4.5 4.7 5.1 1 Like-for-like growth % 3.1 1.4 (8.3 ) 0.3 Average ca
Slide 4: Operating results: Industrial
DEXUS Property Group (ASX:DXS) ASX/media release The $26m redevelopment of Southgate in Melbourne is progressing on track with completion due in November 2011. In addition, we have lodged development approvals on two additional Melbourne properties for a 18,500sqm office development at Flinders Gate
Slide 5: US industrial and capital management
DEXUS Property Group (ASX:DXS) ASX/media release Markets across the US are stabilising, with the emergence of a variable speed economy. While many inland markets are beginning to stabilise, vacancy remains high. Property values across the US have continued to increase over the last six months in ant
Slide 6: Outlook
DEXUS Property Group (ASX:DXS) ASX/media release Chief Financial Officer, Craig Mitchell said: “We aim to be conservative in the use of new equity. The suspension of the DRP reflects the sustainability of our distribution policy, our comfortable level of gearing and the discount at which our equity
Slide 7: Half Year Results Presentation
2011 For personal use only DEXUS Property Group HALF YEAR RESULTS PRESENTATION DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS AFSL Property 238163 Group 2011 as responsible Half for entity year results DEXUS presentation Property Group — Slide 1
Slide 8: DEXUS HY11 Results
DEXUS HY11 RESULTS For personal use only Victor Hoog Antink, CEO — Key financial outcomes — DEXUS platform Craig Mitchell, CFO — Financial performance — Funds Management Paul Say, CIO — Portfolio overview — Office portfolio — US industrial portfolio Andrew Whiteside, Head of Industrial — Ind
Slide 9: Highlights
HIGHLIGHTS For personal use only Solid half year results Increases in property values Effective capital management Increased focus on management targets Increase earnings and distribution guidance DEXUS Property Group 2011 Half year results presentation — Slide 3
Slide 10: Key Financial Outcomes
KEY FINANCIAL OUTCOMES Results supporting guidance upgrade For personal use only Dec 2009 6 months to Dec 2010 June 2010 Key financial metrics FFO1 3.8c 3.5c 3.7c Distribution1 2.65c 2.45c 2.59c Operating EBIT $240.5m $220.8m $219.8m Gearing 31.9% 29.8% 29.1% NTA per security $0.95 $0.95 $0.98 Key p
Slide 11: DEXUS Platform: The business
DEXUS PLATFORM The business For personal use only SECTOR STRATEGIC FOCUS FUM $13.6bn1 TARGET Office Prime in major CBD’s: core/core+ $4.3 60% Property Industrial Stable core with value add $1.6 20% Industrial — US Repositioning towards West Coast $1.3 20% People Funds Funds management Leveraging DXS
Slide 12: DEXUS Platform: Office
DEXUS PLATFORM Office For personal use only Investment discipline Achievements Core core plus investment Like-for-like in line with market Prime quality properties in major — Outperformance of operational and total CBD markets return benchmarks Incremental growth through development, Devel
Slide 13: DEXUS Platform: Industrial
DEXUS PLATFORM Industrial For personal use only Investment discipline Achievements Stable core portfolio (80%) & value add (20%) Consistent operational performance Enhanced growth through development, (like-for-like 1.4%) trading and asset recycling Acquisitions, property sales and new DA’s
Slide 14: DEXUS Platform: US Industrial
DEXUS PLATFORM US Industrial For personal use only Investment discipline Achievements Core/value add Operational outcomes Focus on four key West Coast markets — Established management platform — Internalised management of core portfolio Local expertise — focused approach complete ($0.7bn of
Slide 15: DEXUS Platform: Funds under management
DEXUS PLATFORM Funds under management For personal use only Investment discipline Achievements Diversified product offering DWPF $765m new equity, $250m debt Leverage DXS management platform financing, $256m new investments Institutional capital to deliver Returns outperformed benchmarks e
Slide 16: DEXUS Platform: Funding and business risk
DEXUS PLATFORM Funding and business risk For personal use only Investment discipline Achievements Target gearing <40% Debt Diversity of debt by source and duration — Refinanced $475m Strong and transparent balance sheet — Improved debt diversification — Increased debt duration Strong gover
Slide 17: Corporate Responsibility & Sustainability
CORPORATE RESPONSIBILITY & SUSTAINABILITY Committed to being a market leader For personal use only Environment — 6 Star Green Star developments nearing completion — 4.5 star NABERS program on track — Resource consumption trending downward — Future proofing our portfolio with prudent risk managemen
Slide 18: DEXUS Platform: People
DEXUS PLATFORM People For personal use only Our approach High performance culture Preferred employer in the property sector Achievements Realigned Executive team Established US DEXUS team Increased head count in key value-add areas DEXUS Property Group 2011 Half year results presentation —
Slide 19: Financial Performance
TITLE SLIDE HEADER FINANCIAL For personal use only Sub title (Trebuchet 18 pt) PERFORMANCE Victor Craig Hoog Antink Mitchell Chief ChiefExecutive FinancialOfficer Officer DXS 2009 Annual Results — Slide 13
Slide 20: Financial Results at a Glance
FINANCIAL RESULTS AT A GLANCE For personal use only Dec 2009 Dec 2010 $’m $’m Operating EBIT 240.5 219.8 Finance costs (68.1) (48.5) Fair value movements (315.8) 126.0 Deferred tax 31.7 (1.2) Other 4.7 (1.7) Statutory profit/(loss) (107.0) 294.4 Jun 2010 Dec 2010 $’m $’m Real estate investment 7,307
Slide 21: Core Operating Metrics
CORE OPERATING METRICS Underlying improvements in all sectors For personal use only Dec 2009 6 months to Dec 2010 $’m June 2010 $’m $’m Office 121.9 123.2 127.2 Industrial 52.7 57.2 56.8 Industrial — US1 54.0 46.2 45.0 Non-core1,2 18.6 12.5 9.6 Currency impact on NOI — (1.9) (4.9) Management EBIT 6.
Slide 22: Valuations
VALUATIONS All sectors improving For personal use only NTA increase 3% to $0.98 — Retained earnings $54m — Mark to market gains $54m Revaluation uplift of $68m — Portfolio cap rate decreases 10bps (to 7.9%) - 30bps in US - 10bps in Australia DEXUS Property Group 2011 Half year results presentati
Slide 23: Capital Management: Sustainable and return focused
CAPITAL MANAGEMENT Sustainable and return focused For personal use only Operating cash flows match distributions $’m Operating cashflows Cost of equity and debt continue to be high Cashflow from operations1 169.0 — Suspended DRP Stay in business capital (48.8) — Gearing at lower range of target
Slide 24: Capital Management: Treasury
CAPITAL MANAGEMENT Treasury — strong, stable platform For personal use only Refinanced $475m and reduced headroom Duration target: 4 years Achieved target bank to non-bank debt mix Dec 2009 Jun 2010 Dec 2010 Gearing 32% 30% 29% Headroom $1.5bn $1.2bn $0.7bn Debt duration (years) 2.8 3.2 3.42 C
Slide 25: Funds Management
TITLE FUNDS SLIDE HEADER MANAGEMENT For personal use only Sub title (Trebuchet 18 pt) Victor Craig Hoog Antink Mitchell Chief ChiefExecutive FinancialOfficer Officer DXS 2009 Annual Results — Slide 19
Slide 26: Wholesale Capital Landscape
WHOLESALE CAPITAL LANDSCAPE Increasing investor demand For personal use only Shift of capital to wholesale funds General Sector specific preference from larger institutional investors trends International investors seeking core property exposure DWPF: Pre-eminent diversified wholesale fund ─
Slide 27: Mandates
MANDATES Area of future growth For personal use only Achievements — 10 transactions worth $150m in 2010 — STC outperforms benchmark — AXA performance in line with benchmark Focus — Review outcome of AXA/AMP merger — Rebalance STC portfolio — Growth from existing and new relationships Retail Offi
Slide 28: DEXUS Wholesale Property Fund
DEXUS WHOLESALE PROPERTY FUND Significant activity For personal use only About DWPF Focus $3.2bn pre-eminent diversified wholesale Complete equity raising: $245m to date fund (<50 investors) Maintain index outperformance — 27 properties: weighted cap rate 7.05% Initiate retail/office develop
Slide 29: Portfolio Overview
PORTFOLIO For personal use only OVERVIEW Paul Say Chief Investment Officer DEXUS Property Group 2011 Half year results presentation — Slide 23
Slide 30: Portfolio Overview: Australia
PORTFOLIO OVERVIEW Australia — entering a growth phase For personal use only Office Industrial Entering growth phase Rents and occupancy stable through GFC Real office rents rising Industrial markets now undersupplied Opportunities Opportunities — Hold line on incentive levels — Increase
Slide 31: Portfolio Overview: United States and Europe
PORTFOLIO OVERVIEW United States and Europe For personal use only “Variable speed” recovery — Strong growth in core markets, non-core markets lagging Transactions markets opening up Recovery underway — Occupancy in 2011/12 — Rents in 2012/13 Europe — Selling down through 2011 DEXUS Property
Slide 32: Portfolio Overview: Performance
PORTFOLIO OVERVIEW Performance — diversification benefits and improving outlook For personal use only Office Industrial Industrial US Total1 Occupancy % (area) 96.5 97.4 86.4 90.0 Tenant retention % 76 71 65 n/a WALE (years) 5.6 4.5 4.7 5.1 Like-for-like growth % 3.1 1.4 (8.3) 0.3 Average cap rate %
Slide 33: Office Portfolio
OFFICE PORTFOLIO For personal use only Paul Say Chief Investment Officer DEXUS Property Group 2011 Half year results presentation — Slide 27
Slide 34: Office: Highlights
OFFICE Highlights For personal use only Consistent operational performance — Leasing success 30,945sqm — Occupancy and returns above benchmark Integrated model drives value improving: — Tenant satisfaction — Portfolio performance Short-medium term metrics all positive — Outperforming total ret
Slide 35: Office: Portfolio fundamentals
OFFICE Portfolio fundamentals For personal use only Income up — NOI $127.2m — Robust like-for-like up 3.1% — Retention at 76%1 Value and risk — Occupancy strong at 96.5% — WALE up to 5.6 years — Cap rates firmed to 7.5% 1 year 3 years 5 years DEXUS outperforms benchmark2 DXS NSW Office 6.1% 1.
Slide 36: Office: Leasing results underpin outperformance
OFFICE Leasing results underpin outperformance For personal use only Leasing demand up Number of leases1 41 Area leased2 30,945 sqm Average fixed increases 3.75% Average rental increase2 3% Leasing (new and renewals) Average tenant incentive3 18% — 44 Market Street leased at lower incentives A
Slide 37: Office: Developments
OFFICE Developments — new projects enhance portfolio quality For personal use only 123 Albert Street, Brisbane 38,000sqm (DXS 100%:$376m1) — Completion delayed due to floods: estimated June 2011 — 80% pre-committed — Forecast yield at cost of 6.75% (fully leased) 1 Bligh Street, Sydney 43,000sqm
Slide 38: Office: Key deliverables
OFFICE Key deliverables For personal use only Top quartile total returns — Target >9% IRR — Tougher stance on incentives Increase active (core plus) revenues — Redeploy up to 15% of office “balance sheet” — Activate development pipeline - Flinders Gate 18,500sqm - 360 Collins Street 20,000sqm (D
Slide 39: US Industrial Portfolio
TITLE SLIDE HEADER US INDUSTRIAL For personal use only Sub title (Trebuchet 18 pt) PORTFOLIO Victor Hoog Antink Paul Say Chief ChiefExecutive Officer Investment Officer DXS 2009 Annual Results — Slide 33
Slide 40: US Industrial: Highlights
US INDUSTRIAL Highlights For personal use only Strength in management platform — High calibre local team — $800m portfolio under direct management Traction in repositioning — $61m property sales above book yielding 1.4% — $41m acquisitions yielding 8.3% Total return above benchmark — Valuation
Slide 41: US Industrial: Portfolio fundamentals
US INDUSTRIAL Portfolio fundamentals — data supports turning market For personal use only Income in line with expectation — Like-for-like down 8% but improving - Up 0.6% on six months to June 2010 — Tenant retention 65% — Net operating income $41.6m Value and risk — Cap rates firm at 8.1% — WALE
Slide 42: US Industrial: Variable speed economy drives leasing
US INDUSTRIAL Variable speed economy drives core portfolio leasing For personal use only HY11 Number of leases1 67 Area leased 1.5msf Occupancy stabilised as leasing conditions Average rental movement (8%) improve Average tenant incentive2 9% — Core markets strengthening first Average fixed increa
Slide 43: US Industrial: Key deliverables
US INDUSTRIAL Key deliverables For personal use only People Portfolio repositioning — Build “best in class” asset management team — Disciplined buying in core markets Above benchmark total return — Ensure inherent value in non-core portfolio realised — Deliver 8.5% total return - Drive occupan
Slide 44: Industrial Portfolio
TITLE SLIDE HEADER INDUSTRIAL PORTFOLIO For personal use only Sub title (Trebuchet 18 pt) Victor Andrew Hoog Antink Whiteside Chief HeadExecutive Officer of Industrial DXS 2009 Annual Results — Slide 38
Slide 45: Industrial: Highlights
INDUSTRIAL Highlights — active period For personal use only Consistent operational performance — Leasing success 103,000sqm1 — Occupancy and returns above benchmark Recycling capital to drive growth — 2 non-core property sales underway for $39m — Acquired 2 value add properties for $38m Increa
Slide 46: Industrial: Portfolio fundamentals
INDUSTRIAL Portfolio fundamentals — relative outperformance For personal use only Consistent income with built in growth — NOI $56.8m — Like-for-like income growth 1.4% — Effective rents above market Strong operational performance — Occupancy out-performing market 97.4% — Tenant retention 71% —
Slide 47: Industrial: Leasing emphasis
INDUSTRIAL Leasing emphasis: from de-risking to exposure to market For personal use only Good leasing success Number of leases 49 25% to new tenants, half long dated vacancy Area leased 62,675 Average rental change (5.6%) Capturing effective growth in new rents, Average tenant incentive1 4.4% le
Slide 48: Industrial: Increased activity
INDUSTRIAL Increased activity For personal use only Land bank active, 42ha now employed, one-third being sold Development book now 98,000sqm — 60% preleased Value add initiatives — Archerfield acquired on short WALE, below replacement cost — Erskine Park subdivided to 3 lots, 21,000sqm spec DA
Slide 49: Industrial: Key deliverables
INDUSTRIAL Key deliverables — leverage momentum For personal use only Enhance leadership position — Leverage core and value add management capability — Sustainability innovation Investment portfolio — Expand platform in key markets, build scale for DXS and funds management initiatives — Continue
Slide 50: Outlook
OUTLOOK For personal use only Victor Hoog Antink Chief Executive Officer DEXUS Property Group 2011 Half year results presentation — Slide 44
Slide 51: Market Position and Outlook
MARKET POSITION AND OUTLOOK Positive fundamentals For personal use only Office — Demand improving and limited near term supply — Stronger effective rent growth expected Industrial — Limited market availability, emerging supply — Expected capital growth US industrial — stabilising — Net demand
Slide 52: 2011 Focus and Guidance
2011 FOCUS AND GUIDANCE For personal use only DEXUS focus Continue to drive portfolio returns harder Identify office development pipeline Increase industrial active business allocation Increase US occupancy Third party: respond to wholesale investor demand Tactical reduction in funding c
Slide 53: Half Year Results Appendices
2011 For personal use only DEXUS Property Group HALF YEAR RESULTS APPENDICES DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS AFSL Property 238163 Group 2011 as responsible Half for entity year results DEXUS presentation Property Group — Slide 47
Slide 54: Index
INDEX For personal use only Statutory profit breakdown 49 Profit to Funds From Operations reconciliation 50 Management business EBIT 51 Interest reconciliation 52 Statement of financial position 53 Net asset value composition 54 Valuations: metrics and revaluations 55 Developments 57 Acquisitions 59
Slide 55: Statutory Profit Breakdown
STATUTORY PROFIT BREAKDOWN For personal use only $’m NOI Mgmt Internal Other Net RENTS Current Deferred Revals/ Elims Group income mgmt income & finance dist’n tax tax MTM gain consolidated fees expenses costs on sale Dec 10 Revenue from ordinary activities Property revenue 313.9 0.6 (0.1) 314.4 Man
Slide 56: Profit to Funds From Operations Reconciliation
PROFIT TO FUNDS FROM OPERATIONS RECONCILIATION For personal use only $’m Group Property MTM P/L on sale Deferred Depr’n & RENTS Straight Other Funds From consolidated revals/ derivs of invest tax amort’n capital line rent Operations Dec 10 impairm’t prop dist’n adjust (FFO) Revenue from ordinary act
Slide 57: Management Business EBIT
MANAGEMENT BUSINESS EBIT For personal use only Profit and Loss Balance sheet Third party Corporate Total property portfolio costs $’m $’m $’m $’m Investment management — 13.4 — 13.4 Internal RE charge at cost 11.8 — — 11.8 Property services 10.8 10.0 — 20.8 Property management salaries (3.9) (4.6) —
Slide 58: Interest Reconciliation
INTEREST RECONCILIATION For personal use only Dec 2009 Dec 2010 $’m $’m Interest paid/payable 60.8 60.8 Other finance costs 2.5 2.1 Realised interest rate swap expense1 23.9 15.4 Gross finance costs 87.2 78.3 Less: interest capitalised (18.3) (29.1) Less: interest income (0.8) (0.7) Net finance cost
Slide 59: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION For personal use only June 2010 Dec 2010 $’m $’m Cash and receivables 89 74 Direct property portfolio 7,307 7,343 Other (including derivative financial instruments and intangibles) 475 440 Total assets 7,871 7,857 Payables and provisions 281 259 Interest bearing liabi
Slide 60: Net Asset Value Composition
NET ASSET VALUE COMPOSITION For personal use only Property revaluations of $68 million or 1.4 cents of NTA DEXUS Property Group 2011 Half year results appendices presentation——Slide Slide5454
Slide 61: Valuation Metrics
VALUATION METRICS For personal use only Cap rate Cap rate Cap rate IRR IRR IRR Revaluation Jun 10 Dec 10 change Jun 10 Dec 10 change increment/ % % Bps % % Bps (decrement) change1 % Office 7.6 7.5 10 9.2 9.1 10 1.2 Industrial 8.8 8.7 10 9.7 9.7 — (1.0) Industrial — US2 8.4 8.1 30 8.9 8.7 20 3.1 Indu
Slide 62: Revaluation Summary
REVALUATION SUMMARY For personal use only Office Industrial US Europe Total $’m $’m $’m $’m $’m P&L Revaluations — investment properties External valuations 19 (3) 30 (3) 43 Internal valuations 9 5 8 — 22 Sub total 28 2 38 (3) 65 P&L revaluations — development properties External valuations 9 — — —
Slide 63: Developments Underway
DEVELOPMENTS UNDERWAY For personal use only Country Area Est total Est cost to Est yield on Est sqm cost1 completion total cost completion $’m $’m % date Office 123 Albert Street, Brisbane QLD Australia 38,000 376 68 6.75 Jun 2011 1 Bligh Street, Sydney NSW1 Australia 43,000 222 67 7.0 Jun 2011 Sout
Slide 64: Developments: Uncommitted Pipeline
DEVELOPMENTS — UNCOMMITTED PIPELINE For personal use only Developments Country Building Project Project to est Projected yield on area est completion project est cost Sqm $’m $’m % Industrial Greystanes, Western Sydney NSW1 Australia 188,581 251 164 9.2 DEXUS Industrial Estate, Australia 146,606 185
Slide 65: Acquisitions
ACQUISITIONS For personal use only Interest Acquisition Settlement % A$’m Australia Templar Road, Erskine Park NSW 100 15.9 Aug 2010 Balham Road, Archerfield QLD 100 21.7 Nov 2010 United States City of Industry Centre, California 100 14.7 Oct 2010 La Mirada, California 100 26.3 Jan 2011 Total acquis
Slide 66: Disposals
DISPOSALS For personal use only No of properties A$’m Industrial — US 3 37.7 Industrial — EU 1 7.2 Total disposals at 31 Dec 2010 44.9 Industrial US — post date contract price 4 22.8 Total disposals 67.7 DEXUS Property Group 2011 Half year results appendices presentation——Slide Slide6060
Slide 67: Key Financial Risk Management Measures
KEY FINANCIAL RISK MANAGEMENT MEASURES For personal use only June 2010 Dec 2010 Gearing1 29.8% 29.1% Covenant gearing1 (covenant2 <55%) 30.4% 29.5% Headroom (approx)3 $1.2bn $0.7bn Average maturity of debt 3.2 yrs 3.4 yrs4 Average maturity of interest hedge 6.2 yrs 6.1 yrs Weighted average cost of d
Slide 68: Debt Profile
DEBT PROFILE For personal use only Facility limit Drawn Maturity dates Security Currency A$’m A$’m Bilateral bank debt 145 — Sep 11 Unsecured Multi-ccy, A$ limit1 178 — May 12-Jul 12 Unsecured Multi-ccy, A$ limit1 250 37 Dec 12 Unsecured Multi-ccy, A$ limit1 250 155 Sep 13 Unsecured Multi-ccy, A$ li
Slide 69: Facility Mix
FACILITY MIX For personal use only No off balance sheet debt Facility mix (no look through adjustments) Bank - secured Bank - All unsecured facilities rank pari passu unsecured 9% 43% All secured facilities are non-recourse MTN to DEXUS 13% US 144a 10% Mortgage loans1 USPP 11% 14% 1. US$ loans
Slide 70: Debt Balances by Jurisdiction
DEBT BALANCES BY JURISDICTION For personal use only Interest Cross RENTS Total liabilities after Weighted bearing currency cross ccy swaps incl average liabilities swaps1 RENTS) for hedging2 cost of debt3 $’m $’m $’m $’m % Australia/New Zealand A$935 A$(182) A$204 A$957 7.31% USA US$1,202 — — US$1,2
Slide 71: Interest Rate Hedging Profile
INTEREST RATE HEDGING PROFILE For personal use only HY11 FY 11 FY 12 FY 13 FY 14 FY15 Avg FY164 A$’m average hedged1,3 680 718 750 642 560 510 203 A$ hedge rate (ex margin)2,3 4.66% 4.74% 4.91% 5.39% 5.74% 6.08% 6.11% US$’m average hedged1 1,092 1,002 797 925 943 924 381 US$ hedge rate (ex margin)2
Slide 72: Foreign Income Hedging and Cross Currency Swap Maturity Profile
FOREIGN INCOME HEDGING AND CROSS CURRENCY SWAP MATURITY PROFILE For personal use only HY11 FY11 FY12 FY13 FY14 Foreign income hedging profile Foreign exchange contracts (US$m)1 — — 4.4 2.7 2.5 Average A$/US$ rate1 — — 0.7098 0.6657 0.6798 Foreign exchange contracts (NZ$m) 1.0 2.0 — — — Average A$/NZ
Slide 73: Portfolio Composition
PORTFOLIO COMPOSITION Income and lease expiry For personal use only % of total 2011 2012 2013 2014 2015+ income % % % % % Office 54 3 3 8 6 34 Industrial 24 2 5 3 3 11 Industrial – US 18 2 3 2 1 10 Industrial - Europe 4 1 1 1 0 1 Total 100 8 12 14 10 56 DEXUS Property Group 2011 Half year results ap
Slide 74: Office: Key portfolio statistics
OFFICE Key portfolio statistics For personal use only HY Dec HY Dec 2009 2010 Net operating income $121.9 m $127.2m NOI change 2.4% 4.3% Like-for-like 2.7% 3.1% Occupancy (area) 95.8% 96.5% Occupancy (income) 96.5% 97.0% Over/(under) rented (3.7%) (3.5%) Retention rates1 61% 76% Lease duration by in
Slide 75: Office: Portfolio diversification
OFFICE Portfolio diversification For personal use only Property classification by book value Geographical weighting by book value 0.6% 4.0% 1.7% 2.2% 3.6% 9.9% 3.2% 7.4% 54.1% 37.8% 13.1% 2.0% 4.0% 50.8% 2.6% 3.0% Sydney CBD North Sydney Chatswood Macquarie Park Premium A-grade B-grade Office & busi
Slide 76: Office: Top ten tenants
OFFICE Top ten tenants For personal use only Tenant S&P rating % of Diversity of tenants by income NOI1 8.7% Woodside Energy BBB+ stable 8.5 2.5% S&K Car Park Management Not rated 7.6 19.4% 6.0% Commonwealth of Australia AAA stable 5.5 State of NSW AAA stable 4.5 6.3% Lend Lease BBB- stable 3.3 Stat
Slide 77: Office: Lease expiry profile at December 2010
OFFICE Lease expiry profile at 31 December 2010 For personal use only 16.4% 16.4% 18% 14.7% 14.2% 13.8% 16% 13.2% 12.7% 14% 11.3% 10.4% 10.0% 12% 9.4% 8.6% 10% 7.3% 7.0% 6.6% 8% 4.9% 4.5% 4.1% 6% 3.5% 3.1% 3.0% 2.6% 4% 1.3% 1.1% 2% 0% Vacant 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020+ Ar
Slide 78: Office: CBD office outlook
OFFICE CBD office outlook For personal use only Net demand positive Supply subdued '000sqm Completed Under construction 20 year average Past net absorption Forecast 20 yr average 600 500 400 500 20 yr average 300 400 20 yr average 200 300 100 200 0 -100 100 -200 0 2000 2002 2004 2006 2008 2010 2012
Slide 79: Office: Demand-supply balance
OFFICE Demand — supply balance For personal use only Sydney CBD Melbourne CBD ('000m2) Net Supply (LHS) Demand (LHS) Vacancy (RHS) (% of stock) ('000m2) Net Supply (LHS) Demand (LHS) Vacancy (RHS) (% of stock) 200 16% 200 16% 14% 150 14% 150 12% 12% 100 100 10% 10% 50 8% 50 8% 6% 6% 0 0 4% 4% -50 -5
Slide 80: Industrial: Key portfolio statistics
INDUSTRIAL Key portfolio statistics For personal use only HY Dec HY Dec 2009 2010 Net operating income1 $52.7m $56.8m NOI change (1.3%) 7.8% Like-for-like 1.9% 1.4% Occupancy (area) 97.7% 97.4% Occupancy (income) 97.3% 97.0% Over/(under) rented 6.6% 5.0% Retention rates1 76% 71% Lease duration by in
Slide 81: Industrial: Portfolio diversification
INDUSTRIAL Portfolio diversification For personal use only Geographical weighting by book value Property classification by book value Adelaide Brisbane 2% Vacant land 4% Sydney 15% Business parks 58% 33% Melbourne 36% Industrial estates 29% Warehouse/ distribution centres 22% DEXUS Property Group 20
Slide 82: Industrial: Top ten tenants
INDUSTRIAL Top ten tenants For personal use only Tenant S&P rating % of Diversity of tenants by income NOI Wesfarmers BBB+ positive 6.6% Agriculture 6% Elders Limited BBB stable 5.6% Other Wholesale 9% Trade Visy Not rated 3.7% 30% IBM Australia Limited A+ stable 3.1% DHL Logistics BBB+ stable 2.6%
Slide 83: Industrial: Lease expiry profile at December 2010
INDUSTRIAL Lease expiry profile at 31 December 2010 For personal use only 30% 25.5% 25% 22.9% 20% 15% 13.2% 12.7% 12.1% 11.7% 11.6% 10.9% 9.5% 10% 8.3% 8.8% 7.1% 7.2% 5.5% 4.2% 3.8% 4.6% 4.0% 4.1% 5% 3.7% 3.0% 2.6% 1.7% 1.6% 0% Vacant 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Lease expi
Slide 84: Industrial: National outlook
INDUSTRIAL National outlook For personal use only Merchandise imports rising Industrial supply subdued '000sqm Completed Under construction 3,000 20 yr average 2,500 2,000 1,500 1,000 500 0 2000 2002 2004 2006 2008 2010 Industrial imports and rent growth Imports Sydney rent growth % p.a. 20% 40% 30%
Slide 85: Industrial US: Key portfolio statistics
INDUSTRIAL — US Key portfolio statistics For personal use only HY Dec HY Dec 2009 2010 Net operating income US$46.9m US$39.4m Net operating income1 A$54.0m A$41.6m NOI change (USD) (6.6%) (16.0%) Like-for-like (USD) (10.8%) (8.3%) Occupancy (area) 87.8% 86.4% Occupancy (income) 83.2% 87.4% Over rent
Slide 86: Industrial US: Portfolio diversification
INDUSTRIAL — US Portfolio diversification For personal use only Geographical weighting by book value Property classification by book value 20% 50% 30% West coast Whirlpool Central-east coast DEXUS Property Group 2011 Half year results appendices presentation——Slide Slide8080
Slide 87: Industrial US: Top ten tenants
INDUSTRIAL — US Top ten tenants For personal use only US Industrial S&P rating % of NOI Whirlpool Corporation BBB- positive 24.4% US Government/GSA AAA stable 3.1% Advanced Bionics LLC Not rated 2.8% Fedex Ground Package System BBB stable 1.8% Skechers USA, Inc Not rated 1.1% Fiesta Warehousing & No
Slide 88: Industrial US: Lease expiry profile at December 2010
INDUSTRIAL — US Lease expiry profile at 31 December 2010 For personal use only 20% 17.6% 18% 16% 14.5% 14.7% 14% 12.6% 13.0% 12.1% 12.1% 11.5% 12% 10.4% 10.2% 10% 9.3% 7.8% 8.2% 8% 7.2% 6.3% 5.7% 5.7% 6% 5.1% 4.4% 3.9% 3.7% 4% 2.6% 2% 0.7% 0.9% 0% Vacant 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 89: Industrial US: Net demand and rent growth outlook
INDUSTRIAL — US For personal use only Total US Industrial — net demand positive Rent growth outlook ('000m2) Net Supply (LHS) Net Demand (LHS) Vacancy (RHS) (% of stock) 60 16% ('000m2) East Metros West Coast 10% 40 20 14% 5% 0 0% -20 12% -5% -40 -10% -60 10% -80 -15% -100 8% -20% June 06 Dec-06 Jun
Slide 90: Industrial Europe: Key portfolio statistics
INDUSTRIAL — EUROPE Key portfolio statistics For personal use only HY Dec HY Dec Top 5 tenants % of NOI 2009 2010 EDEKA Handelsgellschaft Südwest GmbH 21.7% Net operating income €6.0m €5.8m Solideal Deutschland GmbH 10.9% Net operating income1 A$10.0m A$8.1m Compass Security Logistick GmbH 8.5% Like
Slide 91: Industrial Europe: Lease expiry profile at December 2010
INDUSTRIAL — EUROPE Lease expiry profile at 31 December 2010 For personal use only 35% 28.9% 28.7% 30% 25% 19.7% 17.2% 20% 16.5% 15.3% 15.2% 14.5% 15% 11.5% 9.9% 9.5% 7.8% 10% 2.8% 2.5% 5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0% Vacant 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2
Slide 92: Exchange Rates Used in Statutory Accounts
EXCHANGE RATES USED IN STATUTORY ACCOUNTS For personal use only Dec 2009 June 2010 Dec 2010 USD 0.8969 0.8523 1.0163 Closing rates for EUR 0.6241 0.6979 0.7647 Statement of Financial Position NZD 1.2354 1.2308 1.3171 CAD 0.9434 0.8976 1.0167 USD 0.8699 0.8800 0.9431 EUR 0.5995 0.6285 0.7132 Average
Slide 93: Glossary
GLOSSARY For personal use only Constant currency: Items shown at Constant currency for Dec 10 have been restated using the Dec 09 average FX rates for comparative purposes. Distribution adjustments: Includes all distribution adjustments except for revaluations and impairments, unrealised MTM of
Slide 94: Important Information
IMPORTANT For personal use only INFORMATION DEXUS Property Group 2011 Half year results presentation — Slide 88
Slide 95: 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
Slide 96: Half Year Results Appendices
2011 For personal use only DEXUS Property Group HALF YEAR RESULTS APPENDICES DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS AFSL Property 238163 Group 2011 as responsible Half for entity year results DEXUS presentation Property Group — Slide 90
DEXUS Property Group — H1 FY2011 Earnings Presentation on 6ix