DEXUS — Earnings Release 2018

Aug 14, 2018

Dexus (ASX: DXS) Appendix 4E

Results for announcement to the market

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Dexus

ARSN 089 324 541

Financial reporting for the year ended 30 June 2018

Dexus Diversified Trust1
	30 June 2018	30 June 2017	%
	$m	$m	Change
Revenue from ordinary activities	840.6	881.7	-4.7%
Net profit attributable to security holders after tax	1,728.9	1,264.2	36.8%
Funds from operations (FFO)2	653.3	617.7	5.8%
Underlying FFO4	616.7	570.5	8.1%
Distribution to securityholders	486.4	451.7	7.7%
	CPS	CPS
FFO per security2	64.2	63.8	0.6%
Distribution per security for the period ending:
31 December	23.7	21.7	9.2%
30 June	24.1	23.8	1.3%
Total distributions5	47.8	45.5	5.1%
Payout ratio (distribution as a % of AFFO)3	100.2%	100.2%	0.0%
Basic and diluted earnings per security	169.9	130.5	30.2%
Franked distribution amountper security	4.9	4.9	0.0%
	$m	$m
Total assets	14,017.3	12,270.1	14.2%
Total borrowings	3,359.6	2,846.8	18.0%
Security holders equity	10,047.4	8,824.5	13.9%
Market capitalisation	9,877.0	9,640.9	2.4%
	$ per security	$ per security
Net tangible assets	9.64	8.45	14.1%
Securitiesprice	9.71	9.48	2.4%
Securities on issue	1,017,196,877	1,016,967,300
Record date	30 June 2018	30 June 2017
Payment date	30 Aug2018	29 Aug2017

Dexus (ASX: DXS) Appendix 4E

Results for announcement to the market

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Details of joint ventures and associates

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----- Start of picture text ----- Ownership interest2018 2017 2018 2017Name of entity % % $m $mBent Street Trust 33.3 33.3 344.7 319.1Dexus Creek Street Trust 50.0 50.0 161.8 143.9Dexus Martin Place Trust 50.0 50.0 376.9 166.3Grosvenor Place Holding Trust 50.0 50.0 452.3 385.5Site 6 Homebush Bay Trust 50.0 50.0 33.6 33.3Site 7 Homebush Bay Trust 50.0 50.0 47.2 44.9Dexus 480 Q Holding Trust 50.0 50.0 380.5 366.7Dexus Kings Square Trust 50.0 50.0 216.3 214.0Dexus Office Trust Australia (DOTA) 50.0 50.0 2,164.7 1,985.0Dexus Industrial Trust Australia (DITA) 50.0 50.0 172.3 133.2Dexus Eagle Street Pier Trust 50.0 50.0 33.0 31.9Healthcare Wholesale Property Fund (HWPF) 23.8 - 49.6 -Total assets - investments accounted for using the equity method 4,432.9 3,823.8----- End of picture text -----

Distribution Reinvestment Plan (DRP)

As announced on 13 December 2010, the DRP has been suspended until further notice. As a consequence, the DRP will not operate for this distribution payment.

Results commentary

Refer to the FY18 Annual Results Release and the 2018 Annual Report for commentary on the results of Dexus.

1 For the purposes of statutory reporting, the stapled entity, known as DXS, must be accounted for as a consolidated group. Accordingly, one of the stapled entities must be the “deemed acquirer” of all other entities in the group. Dexus Diversified Trust has been chosen as the deemed acquirer of the balance of the DXS stapled entities, comprising Dexus Industrial Trust, Dexus Office Trust and Dexus Operations Trust.

2 The Directors consider the Property Council of Australia definition of AFFO and FFO to be measures that reflect the underlying performance of the Group. FFO comprises net profit/loss after tax attributable to stapled security holders calculated in accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark to market impacts, fair value movements of interest bearing liabilities, amortisation of tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments, deferred tax expense/benefit, transaction costs, amortisation of intangible assets, rental guarantees and coupon income.

3 The FY17 AFFO payout ratio has been adjusted to exclude the $11.6 million of distributions paid on new securities through the equity raise announced in June 2017. The AFFO payout ratio was 102.8% including this amount.

4 Underlying FFO excludes trading profits (net of tax).

5 The distribution for the period 1 July 2017 to 30 June 2018 is the aggregate of the distributions from Dexus Diversified Trust, Dexus Office Trust, Dexus Operations Trust and Dexus Industrial Trust. The Attribution Management Investment Trust Annual Member Statement will provide details of the components of DXS’s distributions.

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