Slide 1: DEXUS Property Group 2011 AGM address and presentation
DEXUS Property Group - ASX release 31 October 2011 DEXUS Property Group (ASX: DXS) 2011 Annual General Meeting address and presentation Chair’s address Good afternoon and thank you all for being here today and on the webcast. My name is Chris Beare and I am pleased to welcome you to DEXUS’s seventh
Slide 2: Board and Executive remuneration
Board and Executive remuneration I now turn to remuneration. Every year the Board Nomination and Remuneration Committee takes a critical look at the structure and quantum of both Director and Executive remuneration. We do this to make sure our remuneration remains competitive so that we can attract
Slide 3: Corporate Responsibility and Sustainability
Corporate Responsibility and Sustainability DEXUS is committed to embedding the principles of corporate responsibility and sustainability throughout our business. We recognise the responsibility we have to our investors, tenants, employees and the wider community to sustain and protect the environme
Slide 4: CEO address
Conclusion In conclusion, DEXUS remains one of Australia’s leading property groups specialising in superior quality office and industrial properties. I would like to take this opportunity to thank Victor and his team for the strong performance achieved in continued challenging market conditions. In
Slide 5: Industrial and portfolio performance
Our core Australian industrial portfolio continued to produce total returns of 9.4% and we completed over $61 million in new developments In the US, we achieved a total return of 14.3%. We also sold US$148 million of properties at a 13% premium to book value and reinvested US$59 million of the p
Slide 6: Industrial US and European portfolio
Industrial US In the 2011 financial, the portfolio value increased significantly, resulting in a total return of 14.3% albeit like-for-like income was 4.5% lower than the prior year. Last year, we sold 11 properties including our sole Canadian property for a total of US$148 million at a 13% premium
Slide 7: Areas of focus and 2012 outlook
Areas of focus For the current year, our objectives include: Office - to achieve a like-for-like net operating income increase greater than 4%; to further lease 1 Bligh; and seek pre-commitments for our Melbourne projects Industrial - to achieve a consistent like-for-like net operating income in
Slide 8: Annual General Meeting 2011
2011 DEXUS Property Group ANNUAL GENERAL MEETING
Slide 9: Christopher Beare, Chair
CHRISTOPHER BEARE Chair DEXUS Property Group 2011 Annual General Meeting — Slide 2
Slide 10: Welcome and introduction to the Board of Directors
WELCOME AND INTRODUCTION TO THE BOARD OF DIRECTORS DEXUS Property Group 2011 Annual General Meeting — Slide 3
Slide 11: Elizabeth Alexander AM
ELIZABETH ALEXANDER AM DEXUS Property Group 2011 Annual General Meeting — Slide 4
Slide 12: Barry Brownjohn
BARRY BROWNJOHN DEXUS Property Group 2011 Annual General Meeting — Slide 5
Slide 13: John Conde AO
JOHN CONDE AO DEXUS Property Group 2011 Annual General Meeting — Slide 6
Slide 14: Tonianne Dwyer
TONIANNE DWYER DEXUS Property Group 2011 Annual General Meeting — Slide 7
Slide 15: Victor Hoog Antink, Chief Executive Officer
VICTOR HOOG ANTINK Chief Executive Officer DEXUS Property Group 2011 Annual General Meeting — Slide 8
Slide 16: Stewart Ewen OAM
STEWART EWEN OAM DEXUS Property Group 2011 Annual General Meeting — Slide 9
Slide 17: Brian Scullin
BRIAN SCULLIN DEXUS Property Group 2011 Annual General Meeting — Slide 10
Slide 18: Peter St George
PETER ST GEORGE DEXUS Property Group 2011 Annual General Meeting — Slide 11
Slide 19: DEXUS Board of Directors
DEXUS BOARD OF DIRECTORS DEXUS Property Group 2011 Annual General Meeting — Slide 12
Slide 20: Annual General Meeting 2011
2011 DEXUS Property Group ANNUAL GENERAL MEETING DEXUS Property Group 2011 Annual General Meeting — Slide 13
Slide 21: 2011 Online Reporting Suite
2011 ONLINE REPORTING SUITE DEXUS Property Group 2011 Annual General Meeting — Slide 14
Slide 22: Chair's address
CHAIR’S ADDRESS Christopher Beare Chair DEXUS Property Group 2011 Annual General Meeting — Slide 15
Slide 23: Current market conditions
CURRENT MARKET CONDITIONS Global economy is uncertain with below trend growth projected In Australia, the economy and property markets are well placed — IMF forecast Australia to be one of the strongest developed markets — Weak confidence is having some impact on leasing in the near term View of
Slide 24: 2011 performance
2011 PERFORMANCE Delivering solid performance Net profit $553m up from $31.4m Accumulation performance 25% Funds From Operations up 2.3% to $358m 21.3% 20% Full year distribution of 5.18 cents 15% per security 10% 5.8% Outperformed A-REIT benchmark by 15.5% 5% for FY11 0% Oct-10 Mar-11 Aug-1
Slide 25: Board and Executive remuneration
BOARD AND EXECUTIVE REMUNERATION Executive remuneration criteria: — Market competitiveness and reasonableness — Achievement of financial and non-financial measures — Appropriate mix of remuneration components Key financial performance measures: — Funds from Operation up 2.3% to 7.4 cents per sec
Slide 26: Corporate responsibility & sustainability
CORPORATE RESPONSIBILITY & SUSTAINABILITY Maintain listings on DJSI, Australian SAM and FTSE4Good Indices Integration of United Nations Principles for Responsible Investment Employee Opinion Survey — Participation rate 88% — Engagement score increased to 83% DEXUS Property Group 2011 Annual Ge
Slide 27: Corporate governance and changes to the Board
CORPORATE GOVERNANCE AND CHANGES TO THE BOARD CORPORATE GOVERNANCE Board membership policy Diversity policy — Target 33% female participation by 2015 — Currently stands at 31% - one of the highest in ASX 100 CHANGES TO THE BOARD Tonianne Dwyer appointed to the Board — Track record across liste
Slide 28: Conclusion
CONCLUSION DEXUS is one of Australia’s leading property groups specialising in superior quality office and industrial properties We expect property market conditions to improve at a moderate pace in 2012 We are well positioned to deliver consistent and secure income returns View of Sydney CBD
Slide 29: CEO's address
CEO’S ADDRESS Victor Hoog Antink Chief Executive Office DEXUS Property Group 2011 Annual General Meeting — Slide 22
Slide 30: DXS portfolio
DXS PORTFOLIO Focused platform: robust core returns - leveraged to cyclical upside SECTOR — AUM/target allocation CORE RETURNS ACTIVE RETURNS Prime properties in major CBD’s Development and trading Environment & Stakeholders Office $4.5bn 60% (>85% AUM: target 9% IRR) (<15% AUM: target 15% IRR) Sydn
Slide 31: FY11 key achievements
FY11 KEY ACHIEVEMENTS Office Third party investment management — Like-for-like income growth 3.3% — DWPF - best performing unlisted diversified fund — Completed 1 Bligh Street and 123 Albert Street Capital management Industrial — Gearing at 28.4% — Stable total return 9.4% — Average debt dur
Slide 32: Office portfolio — core
OFFICE PORTFOLIO — CORE Driving operational performance Strong FY11 like-for-like income growth 3.3% FY12 leasing >50% complete — Targeting at least 4% like-for-like income growth 123 Albert (DXS 100% interest: $382m) — Stabilised with 90% occupancy 1 Bligh (DXS 33.3% interest: $227m) — Expe
Slide 33: Office portfolio — active
OFFICE PORTFOLIO — ACTIVE Continue to enhance portfolio quality and earnings stability Actively reinvesting into development pipeline — $200m Melbourne project seeking pre-commitment — Planning approval received DWPF secured approval for annexe at 360 Collins Street Governor Phillip Tower, 309 K
Slide 34: Industrial portfolio
INDUSTRIAL PORTFOLIO Core portfolio stable, strong market drives active investment Stable like-for-like growth 1.1% Industrial cycle — limited supply and competition — FY11 $61m development activity completed — FY12 year to date: $71m new developments completed covering 55,000sqm 2-4 Military Ro
Slide 35: Industrial US & European portfolios
INDUSTRIAL US & EUROPEAN PORTFOLIOS Driving returns through prudent timing of repositioning strategy US PORTFOLIO EUROPEAN PORTFOLIO FY11 repositioning progress Sold 5 properties for €54m — 1% above book value — Sold US$148m, 13% premium to book value 13 properties remaining totalling €75m — R
Slide 36: Third party investment management
THIRD PARTY INVESTMENT MANAGEMENT Significant activity Product type at 30 June 2011 DWPF best performing unlisted diversified fund1 — Raised $313m new equity and satisfied $500m+ transfers — Standard & Poor’s ‘A’ rating (stable) — Raised $250m in medium term note market — Acquired $256m industrial
Slide 37: Capital management
CAPITAL MANAGEMENT Active and conservative management FY11 ACHIEVEMENT Maturity profile at 30 June 2011 Refinanced $830m in US and AU debt markets — Improved duration to >4 years — Decrease future interest cost FY12 PROGRESS Refinanced $250m at margins below 2% — $140m of FY12 debt expiry remain
Slide 38: Areas of focus
AREAS OF FOCUS Office US industrial — Like-for-like income growth >FY11 — Increase central market occupancy >6% and — Residual leasing at 1 Bligh Street position for sale — Secure pre-lease commitments for DA’s Funds — Establish new capital partner relationships Industrial — Consistent like-
Slide 39: 2012 outlook and guidance
2012 OUTLOOK AND GUIDANCE OUTLOOK GUIDANCE Global market concerns increasing FY12 FFO per security: 7.651 cents market uncertainty Distribution per security2: 5.35 cents DEXUS’s strong business platform — Financially well positioned — Quality portfolio — Positioned to face future opportuniti
Slide 40: DEXUS team
DEXUS TEAM DEXUS Property Group 2011 Annual General Meeting — Slide 33
Slide 41: Written questions
WRITTEN QUESTIONS DEXUS Property Group 2011 Annual General Meeting — Slide 34
Slide 42: General questions
GENERAL QUESTIONS DEXUS Property Group 2011 Annual General Meeting — Slide 35
Slide 43: Resolutions
RESOLUTIONS DEXUS Property Group 2011 Annual General Meeting — Slide 36
Slide 44: Elizabeth Alexander AM
ELIZABETH ALEXANDER AM DEXUS Property Group 2011 Annual General Meeting — Slide 37
Slide 45: Resolution 1.1
RESOLUTION 1.1 “That the continuing appointment of Elizabeth Alexander as a Director of DEXUS Funds Management Limited be ratified” DEXUS Property Group 2011 Annual General Meeting — Slide 38
Slide 46: Resolution 1.1 Proxies held by the Chair
RESOLUTION 1.1 Proxies held by the Chair Proxies held by the Chair of the meeting Number of units % of units on issue For 3,302,640,535 68.25% Open 9,192,950 0.19% Against 14,201,977 0.29% Total proxies 3,326,035,462 68.73% DEXUS Property Group 2011 Annual General Meeting — Slide 39
Slide 47: Voting for Resolution 1.1 — Elizabeth Alexander AM
VOTING FOR RESOLUTION 1.1 — ELIZABETH ALEXANDER AM DEXUS Property Group 2011 Annual General Meeting — Slide 40
Slide 48: Barry Brownjohn
BARRY BROWNJOHN DEXUS Property Group 2011 Annual General Meeting — Slide 41
Slide 49: Resolution 1.2
RESOLUTION 1.2 “That the continuing appointment of Barry Brownjohn as a Director of DEXUS Funds Management Limited be ratified” DEXUS Property Group 2011 Annual General Meeting — Slide 42
Slide 50: Resolution 1.2 Proxies held by the Chair
RESOLUTION 1.2 Proxies held by the Chair Proxies held by the Chair of the meeting Number of units % of units on issue For 3,302,621,272 68.25% Open 9,313,994 0.19% Against 13,967,334 0.29% Total proxies 3,325,902,600 68.73% DEXUS Property Group 2011 Annual General Meeting — Slide 43
Slide 51: Voting for Resolution 1.2 — Barry Brownjohn
VOTING FOR RESOLUTION 1.2 — BARRY BROWNJOHN DEXUS Property Group 2011 Annual General Meeting — Slide 44
Slide 52: Tonianne Dwyer
TONIANNE DWYER DEXUS Property Group 2011 Annual General Meeting — Slide 45
Slide 53: Resolution 1.3
RESOLUTION 1.3 “That the initial appointment of Tonianne Dwyer as a Director of DEXUS Funds Management Limited be ratified” DEXUS Property Group 2011 Annual General Meeting — Slide 46
Slide 54: Resolution 1.3 Proxies held by the Chair
RESOLUTION 1.3 Proxies held by the Chair Proxies held by the Chair of the meeting Number of units % of units on issue For 3,310,700,851 68.42% Open 9,325,162 0.19% Against 5,851,594 0.12% Total proxies 3,325,877,607 68.73% DEXUS Property Group 2011 Annual General Meeting — Slide 47
Slide 55: Voting for Resolution 1.3 — Tonianne Dwyer
VOTING FOR RESOLUTION 1.3 — TONIANNE DWYER DEXUS Property Group 2011 Annual General Meeting — Slide 48
Slide 56: Resolutions
RESOLUTIONS DEXUS Property Group 2011 Annual General Meeting — Slide 49
Slide 57: Remuneration process
REMUNERATION PROCESS DEXUS Balanced Scorecard – typical objectives Financial performance Business development and business management Earnings per security Delivery of strategic objectives on time and on budget Distributions per security Corporate responsibility and sustainability initiative
Slide 58: Resolution 2: Remuneration Report adoption
RESOLUTION 2 “That the Remuneration Report for the financial year ended 30 June 2011 be adopted.” DEXUS Property Group 2011 Annual General Meeting — Slide 51
Slide 59: Resolution 2 Proxies held by the Chair
RESOLUTION 2 Proxies held by the Chair Proxies held by the Chair of the meeting Number of units % of units on issue For 2,379,645,725 49.18% Open 9,142,217 0.19% Against 934,390,318 19.31% Total proxies 3,323,178,260 68.67% DEXUS Property Group 2011 Annual General Meeting — Slide 52
Slide 60: Voting for Resolution 2
VOTING FOR RESOLUTION 2 DEXUS Property Group 2011 Annual General Meeting — Slide 53
Slide 61: Resolutions
RESOLUTIONS DEXUS Property Group 2011 Annual General Meeting — Slide 54
Slide 62: Resolution 3
RESOLUTION 3 “That: a) The Constitutions of each of DEXUS Diversified Trust, DEXUS Office Trust, DEXUS Industrial Trust and DEXUS Operations Trust (together, “Trusts”) be amended in accordance with the provisions of the supplemental deed polls in respect of the miscellaneous amendments described in
Slide 63: Resolution 3 Proxies held by the Chair
RESOLUTION 3 Proxies held by the Chair Proxies held by the Chair of the meeting Number of units % of units on issue For 3,305,796,046 68.32% Open 9,559,846 0.20% Against 7,348,866 0.15% Total proxies 3,322,704,758 68.66% DEXUS Property Group 2011 Annual General Meeting — Slide 56
Slide 64: Voting for Resolution 3
VOTING FOR RESOLUTION 3 DEXUS Property Group 2011 Annual General Meeting — Slide 57
Slide 65: Resolutions
RESOLUTIONS DEXUS Property Group 2011 Annual General Meeting — Slide 58
Slide 66: Resolution 4.1
RESOLUTION 4.1 “That subject to and conditional on Resolution 4.2 being passed, the Capital Reallocation Proposal described in Section 4 of the Explanatory Memorandum be approved for all purposes.” DEXUS Property Group 2011 Annual General Meeting — Slide 59
Slide 67: Resolution 4.1 Proxies held by the Chair
RESOLUTION 4.1 Proxies held by the Chair Proxies held by the Chair of the meeting Number of units % of units on issue For 3,276,332,978 67.71% Open 9,485,199 0.20% Against 39,175,493 0.81% Total proxies 3,324,993,670 68.71% DEXUS Property Group 2011 Annual General Meeting — Slide 60
Slide 68: Voting for Resolution 4.1
VOTING FOR RESOLUTION 4.1 DEXUS Property Group 2011 Annual General Meeting — Slide 61
Slide 69: Resolution 4.2
RESOLUTION 4.2 “That subject to, and conditional on Resolution 4.1 being passed: a) The Constitutions of each of DEXUS Diversified Trust, DEXUS Office Trust, DEXUS Industrial Trust and DEXUS Operations Trust (together, “Trusts”) be amended by inserting the new clause 9.9 set out in Section 4.2.5 of
Slide 70: Resolution 4.2 Proxies held by the Chair
RESOLUTION 4.2 Proxies held by the Chair Proxies held by the Chair of the meeting Number of units % of units on issue For 3,276,331,905 67.71% Open 9,555,698 0.20% Against 38,609,239 0.80 Total proxies 3,324,496,842 68.70% DEXUS Property Group 2011 Annual General Meeting — Slide 63
Slide 71: Voting for Resolution 4.2
VOTING FOR RESOLUTION 4.2 DEXUS Property Group 2011 Annual General Meeting — Slide 64
Slide 72: Disclaimer
DISCLAIMER 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 this presentation including, wit
Slide 73: Thank you for attending our Annual General Meeting
THANK YOU FOR ATTENDING OUR ANNUAL GENERAL MEETING DEXUS Property Group 2011 Annual General Meeting — Slide 66
Slide 74: Annual General Meeting 2011
2011 DEXUS Property Group ANNUAL GENERAL MEETING