Dexus Convenience Retail Reit · ASX:DXC
Dexus Convenience Retail Reit — HY25 Earnings Presentation
33 slides from Dexus Convenience Retail Reit's earnings presentation, Feb 10, 2025
Slide 1: Dexus Convenience Retail REIT ASX release: 2025 Half year results presentation
Dexus Convenience Retail REIT (ASX:DXC) ASX release 10 February 2025 2025 Half year results presentation and property synopsis Dexus Convenience Retail REIT (DXC) releases its 2025 half year results presentation. An investor conference call will be webcast today at 10.00am on www.dexus.com/investor-
Slide 2: Half year results
Dexus Asset Management Limited ACN 080 674 479 AFSL 237 500 as responsible entity for Dexus Convenience Retail REIT Half year results 10 February 2025 60 Hawkins Crescent, Bundamba QLD
Slide 3: Acknowledgement of Country
Acknowledgement of Country Dexus Convenience Retail REIT acknowledges the Traditional Custodians of the lands on which our business and assets operate, and recognises their ongoing contribution to Land, waters and community. We pay our respects to First Nations Elders past and present. Artwork: Chan
Slide 4: Agenda
01 Introduction and highlights Page 4 02 Financial overview Agenda Page 10 03 Summary Page 17 04 Appendices Page 19 3 | 2025 Half Year Results
Slide 5: Introduction and highlights
01 Introduction and highlights 4 | 2025 Half Year Results
Slide 6: DXC investment proposition
DXC investment proposition Providing investors with exposure to defensive income with embedded growth Generate defensive income Act as a reliable Active portfolio management Aligned manager with deep custodian of capital to maximise value real asset capability − Secure income backed by: − Managed ge
Slide 7: HY25 highlights
HY25 highlights Active portfolio remixing through development and value-enhancing divestments On-track to deliver Resilient income Executed $38.8 million of FY25 guidance growth strategic divestments HY25 FFO and distributions +3.1% average rent review achieved Improving overall portfolio of 10.4 cp
Slide 8: Secure and defensive income with embedded growth
Secure and defensive income with embedded growth High-quality portfolio Income resilience Embedded growth Zoned to high value land uses No significant lease expiries until 2030+ Attractive property rental increases per annum (% by value) (% by income) (% by income) Completion of Glass House Mountain
Slide 9: Tenancy mix over time
Tenancy mix over time Increased tenant diversity and direct exposure to convenience retail tenancies IPO (July 2017) June 2020 December 2024 % of income % of income % of income Fuel operators receive 1% 2% 1% rental income from 2% convenience retail sub-tenants equivalent 4% 3% to c. 11% of DXC’s in
Slide 10: Sustainability progress
Sustainability progress DXC initiatives Aligned to Dexus Sustainability Strategy Priority Area DXC future focus Maintained carbon neutral 100% renewable Maximise value creation by supporting position across DXC electricity sourced tenants with their strategies for the controlled and managed for cont
Slide 11: Financial overview
185 Brays Road, Griffin QLD 02 Financial overview 10 | 2025 Half Year Results
Slide 12: HY25 financial result
HY25 financial result Resilient property income growth, on-track to deliver guidance Profit & loss HY25 HY24 Change1 Property FFO ($m) 22.6 22.7 (0.5)% Lower income from divestments, partly offset by like-for-like income growth of 2.8% Management fees ($m) (2.4) (2.5) (5.2)% Average portfolio value
Slide 13: Balance sheet and capital management
Balance sheet and capital management Strengthened capital position to support future growth initiatives Key metrics 31 Dec 2024 30 Jun 2024 Gearing1 28.7% 32.9% Cost of debt2 4.6% 4.2% Reduced gearing to the HY25 asset divestments Executed $46.3 million Average maturity of debt 3.9 years 4.2 years l
Slide 14: Portfolio valuations
Portfolio valuations Revaluations turned positive underpinned by solid transaction volume recovery Property portfolio valuation summary – 31 Dec 2024 Marginal like-for-like cap rate expansion of six basis points 31 Dec 2024 Cap rate Total reval Total reval Cap rate Portfolio Properties book value 6
Slide 15: Transaction market
Transaction market Liquid transaction market despite higher interest rates Transaction volumes and average yield Number of transactions (#) Average yield (%) Solid fuel and convenience property transaction volume 140 6.5% recovery over 2024, allowing for asset price discovery which supports DXC’s NT
Slide 16: Portfolio optimisation
Portfolio optimisation Enhanced portfolio resilience through capital recycling activity Recent portfolio curation activity Enhanced portfolio metrics FY22 – FY24 Past 6 months 13 9 assets sold assets sold +4% +16% +10% increase in increase in increase in $61 million $39 million highway and average a
Slide 17: Glass House Mountains fund-through redevelopment
Glass House Mountains fund-through redevelopment Recently commenced high-quality Northbound site redevelopment Development commenced at the 25,000 sqm Northbound site which Northbound redevelopment figures will include a new, expanded On The Run convenience retail offering on the Viva Energy site, f
Slide 18: Summary
473 North East Road, Hillcrest SA 03 Summary 17 | 2025 Half Year Results
Slide 19: Attractive investment proposition
485 Balfour Street, Southern River WA Attractive investment proposition Well placed to generate defensive income with embedded rental growth with improved overall portfolio quality and capacity for future growth Focused on value-enhancing activities, including the redevelopment of Glass House Mounta
Slide 20: Appendices
28 Supply Road, Bentley Park QLD 04 Appendices 19 | 2025 Half Year Results
Slide 21: Glass House Mountains fund-through redevelopment
Glass House Mountains fund-through redevelopment Two-stage redevelopment to significantly enhance the convenience retail offering Site Est. project Est. yield on Site area costs cost Northbound c. 25,000 sqm c. $24m c. 5.8% Southbound (Stage 1) Southbound c. 63,000 sqm c. $30m 5 – 6% (Stage 2 – unco
Slide 22: Divestments
Divestments $38.8 million of divestments settled at 1.8% average discount to prior book values DIVESTED DIVESTED Divestments Settlement 25 Bolam Street, Garbutt QLD 23 September 2024 77-79 Bowen Street, Rosslea QLD 6 November 2024 921 Nambour Connection Road, 25 Bolam Street, Nambour QLD Garbutt QLD
Slide 23: Network overview
Network overview High-quality portfolio with national presence Metro Highway Regional 91 66 properties specialty retail tenancies Queensland 59% 608,500sqm 2.6m $415m 52 total site area people within 3km 20% Western Australia exposure to total radius1 South QLD motor vehicle $63m 9% 10 fleet daily2
Slide 24: Valuable landbank
Valuable landbank Potential for circa 20 value-add 86% weighted to metro and opportunities over the long term, subject to highway sites commercial considerations Book value by site type (%) Value-add opportunities (#) Majority of value-add opportunities are metro located 14% 5 21% 12 65% 5 100 East-
Slide 25: Diverse and high-quality tenant base
Diverse and high-quality tenant base DXC benefits from a diverse tenant base Major tenants publicly committed to network enhancement − Material investment into re-branding national network from Puma to Caltex 13% − Net increase in national leasehold network 2% 31% 4% 4% Fuel operators receive rental
Slide 26: Lease expiry profile
Lease expiry profile Strong income visibility Lease expiry % by income DXC WALE: 8.2 years 23% 15% 12% 12% 9% 6% 6% 5% 5% 2% 2% 2% 2% 1% 2H25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40+ 25 | 2025 Half Year Results
Slide 27: Australian car sales
Australian car sales Consumer behaviour indicates gradual energy transition Fuel-reliant new car sales growth Cumulative new car sales since 2020 Australian car sales (m) Australian car sales (m) 1.4 7.0 1.2 6.0 1.0 5.0 0.8 4.0 0.6 3.0 0.4 2.0 0.2 1.0 - - 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 28: Australian fuel sales
Australian fuel sales Solid fuel sales volumes and fuel-reliant vehicle sales Fuel sales volumes remain robust Sales volumes of petroleum products (megalitres, thousands)1 60 50 40 30 20 10 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 14 Commercial Road, Sheidow Park SA Automot
Slide 29: Consolidated profit & loss statement
Consolidated profit & loss statement $’000 31 Dec 2024 31 Dec 2023 Net property income1 24,277 24,440 Interest income 49 37 Total revenue 24,326 24,477 Management fees (2,379) (2,509) Finance costs (6,455) (5,923) Corporate costs (470) (542) Total expenses (9,304) (8,974) Net operating income 15,022
Slide 30: FFO reconciliation
FFO reconciliation $’000 31 Dec 2024 31 Dec 2023 Statutory net profit / (loss) after tax for the period 14,702 (1,719) Adjusted for: Net fair value (gain) / loss on investment properties (3,182) 12,647 Net fair value (gain) / loss on derivatives 3,502 4,575 Incentive amortisation and rent straight-l
Slide 31: Consolidated balance sheet
Consolidated balance sheet $’000 31 Dec 2024 30 Jun 2024 Cash and cash equivalents 4,807 1,918 Investment properties 708,665 740,680 Other assets 7,506 11,260 Total assets 720,978 753,858 Borrowings (206,940) (243,204) Provisions (7,523) (9,113) Other liabilities (15,052) (10,625) Total liabilities
Slide 32: Important information
Important information This presentation (“Material”) has been prepared by Dexus Asset Management Limited (ACN 080 674 479, AFSL No. 237500) ("DXAM") as the responsible entity of Convenience Retail REIT No.1 (ARSN 101 227 614), Convenience Retail REIT No.2 (ARSN 619 527 829) and Convenience Retail RE
Slide 33: Dexus
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