DEXUS — Interim / Quarterly Report 2014

Feb 11, 2014

==> picture [596 x 102] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group (ASX: DXS)
ASX release
----- End of picture text -----

12 February 2014

2014 half year results presentation

DEXUS Property Group provides its 2014 half year results presentation.

The property synopsis spreadsheet is also available on our website at www.dexus.com

For further information please contact: Investor relations Media relations David Yates T: +61 2 9017 1424 Louise Murray T: +61 2 9017 1446 M: +61 418 861 047 M:+61 403 260 754 E: david.yates@dexus.com E: louise.murray@dexus.com

About DEXUS

DEXUS Property Group (DEXUS) is one of Australia’s leading real estate groups, investing directly in high quality Australian office and industrial properties. With $14 billion of assets under management, DEXUS also actively manages office, industrial and retail properties located in key Australian markets on behalf of third party capital partners. DEXUS manages an office portfolio of 900,000 square metres across Sydney, Melbourne, Brisbane and Perth and is one of the largest institutional owners of office buildings in the Sydney CBD, Australia’s largest office market. DEXUS is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange under the stock market trading code ‘DXS’ and is supported by more than 19,000 investors from 22 countries. With over 25 years of experience in commercial property investment, development and asset management, DEXUS has a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns to investors. www.dexus.com

Download the DEXUS IR app to your preferred mobile device to gain instant access to the latest stock price, ASX Announcements, presentations, reports, webcasts and more.

==> picture [50 x 18] intentionally omitted <==

==> picture [49 x 18] intentionally omitted <==

DEXUS Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for DEXUS Property Group (ASX: DXS)

==> picture [595 x 106] intentionally omitted <==

DEXUS PROPERTY GROUP

– 2014 HALF YEAR RESULTS PRESENTATION 12 FEBRUARY 2014

==> picture [497 x 86] intentionally omitted <==

==> picture [497 x 86] intentionally omitted <==

==> picture [497 x 120] intentionally omitted <==

----- Start of picture text -----

DEXUS Funds Management Limited
ABN 24 060 920 783
AFSL 238163 as responsible entity for DEXUS Property Group DEXUS Property Group 2014 Half Year Results Presentation Slide 1
----- End of picture text -----

AGENDA

• Group highlights

• Takeover of Commonwealth Property Office Fund (CPA)

• Financial results

• Capital management

• Third party funds management

• Portfolio results

• Transactions and market outlook

• Summary

• Appendices

Slide 2

DEXUS Property Group 2014 Half Year Results Presentation

GROUP HIGHLIGHTS For the six months ended 31 December 2013

3.8%

DXS office portfolio like-for-like income growth[1]

11.0% Return on equity[2] 6.3% Growth in Third Party Funds under management[3] $0.3bn Property acquisitions undertaken by Third Party Funds[4] 6.1yrs Average debt duration

1. Growth compared to the six months ended 31 December 2012.

2. For the 12 months ended 31 December 2013.

3. Growth from 30 June 2013.

4. Including acquisition of AM60, William Street, Brisbane by DEXUS Wholesale Property Fund announced on 15 January 2014.

DEXUS Property Group 2014 Half Year Results Presentation Slide 3

GROUP HIGHLIGHTS Financial results

		31 Dec 2013	31 Dec 2012	Change
Key financial metrics	Statutory net profit	$277.2m	$267.0m	+3.8%
	FFO1	$189.8m	$182.2m	+4.2%
	FFO per security	4.08c	3.85c	+6.0%
	Distribution per security	3.07c	2.89c	+6.2%
		31 Dec 2013	30 Jun 2013	Change
Other key metrics	Gearing	30.6%	29.0%	+1.6%
	NTA per security	$1.08	$1.05	+2.9%

1. DEXUS’s 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 certain tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments, deferred tax expense/benefit, rental guarantees, coupon income and distribution income net of funding costs. Refer to the glossary for the detailed explanation of FFO and Slide 9 for a reconciliation to net profit.

Slide 4

DEXUS Property Group 2014 Half Year Results Presentation

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLDTAKEOVER OF COMMONWEALTH PROPERTY OFFICE FUND (CPA) Key message (Trebuchet MS (Heading) 18)

==> picture [497 x 89] intentionally omitted <==

==> picture [497 x 89] intentionally omitted <==

DEXUS existing owned and managed portfolio and CPA portfolio to be acquired - Sydney CBD, NSW

DEXUS Property Group 2014 Half Year Results – Presentation Title —PresSlide 5ntation Slide 5

TAKEOVER OF COMMONWEALTH PROPERTY OFFICE FUND (CPA) Update

• DEXUS and Canada Pension Plan Investment Board’s (CPPIB) Offer (DEXUS Offer) is now unconditional

• CPA’s Responsible Entity has recommended CPA Unitholders ACCEPT the DEXUS Offer

• Strong institutional investor support

• DEXUS Offer extended to 14 February 2014

 DEXUS and CPPIB expect to

• Proceed to compulsory acquisition of CPA Units by the end of March 2014

• Undertake transition of management of the CPA portfolio over the second quarter of 2014

==> picture [497 x 56] intentionally omitted <==

==> picture [497 x 56] intentionally omitted <==

Slide 6

DEXUS Property Group 2014 Half Year Results Presentation

TAKEOVER OF COMMONWEALTH PROPERTY OFFICE FUND (CPA) Pro forma impact on DEXUS’s key metrics

FY14 FFO cents per security impact assuming 1 March 2014 implementation

==> picture [257 x 78] intentionally omitted <==

----- Start of picture text -----

0.10 8.29 0.061 8.35
8.19
FY14 guidance Impact of 14.9% FY14 revised 4 month impact of Pro forma FY14 FFO
pre-bid stake guidance CPA transaction
----- End of picture text -----

 0.7% increase on FY14 FFO guidance, excludes the one-off impact of the 14.9% pre-bid stake

DEXUS NTA (per security) DEXUS Gearing	DEXUS NTA (per security) DEXUS Gearing	DEXUS NTA (per security) DEXUS Gearing	DEXUS NTA (per security) DEXUS Gearing	DEXUS NTA (per security) DEXUS Gearing	DEXUS NTA (per security) DEXUS Gearing
	Pre CPA transaction	Post CPA transaction		Pre CPA transaction	Post CPA transaction
30 Jun 13	29.0%	33.9%2		$1.05	$1.032
31 Dec 13	30.6%	34.6%3		$1.08	$1.063

1. Assumes 100% acceptances based on Option B cash/scrip offer, 1 March 2014 implementation date and GPT Wholesale Office Fund asset sales, as contemplated in the Second Supplementary Bidder’s Statement dated 10 January 2014.

2. Pro-forma impact as outlined in the Second Supplementary Bidder’s Statement dated 10 January 2014.

3. Pro-forma impact as outlined in the Second Supplementary Bidder’s Statement dated 10 January 2014 adjusted for DXS’s half year results announced on 12 February 2014.

DEXUS Property Group 2014 Half Year Results Presentation

Slide 7

FINANCIAL RESULTS

==> picture [497 x 90] intentionally omitted <==

==> picture [497 x 91] intentionally omitted <==

Slide 8

DEXUS Property Group 2014 Half Year Results Presentation

FINANCIAL RESULTS

31 Dec 2013 $m 31 Dec 2012 $m	31 Dec 2013 $m 31 Dec 2012 $m	31 Dec 2013 $m 31 Dec 2012 $m
Statutory net profit	277.2	267.0
Net fair value gain of investment properties	(106.6)	(120.4)
Net fair value movements of derivatives & interest bearing liabilities1	(5.8)	11.9
Net loss on sale of investment properties	3.0	13.9
Incentive amortisation & rent straightlining	14.4	14.3
Coupon income and other	7.6	(4.5)
Funds From Operations (FFO) 189.8 182.2

1. Comprises net fair value gain on interest bearing liabilities of $20.9m and net fair value loss on derivatives of $15.1m.

DEXUS Property Group 2014 Half Year Results Presentation Slide 9

FINANCIAL RESULTS Funds From Operations

	31 Dec 2013 $m	31 Dec 2012 $m	EBIT from continued operations up 12.5% to $228.8m Office like-for-like income growth of 3.8% Industrial like-for-like income growth of 2.1% Distributions per security up 6.2%
Office Industrial	175.3 59.5	151.8 57.8
Net profit from management operations1	12.4	11.5
Groupcorporate & asset management1	(18.4)	(17.8)
Operating EBIT – continued operations Discontinued operations2	228.8 —	203.3 17.0
Operating EBIT Finance costs3	228.8 (61.4)	220.3 (53.6)
Incentive amortisation and rent straight-line	14.4	14.3
Other	8.0	1.2
Funds From Operations	189.8	182.2
FFO per security	4.08	3.85
Distributionper security	3.07	2.89

1. Refer to slide 11 for further detail.

2. US and European industrial and including US corporate costs.

3. Including interest revenue and RENTS.

Slide 10

DEXUS Property Group 2014 Half Year Results Presentation

FINANCIAL RESULTS Corporate revenue and expenses

Netprofit from management operations	Netprofit from management operations
HY14 Property management Development & trading1 Funds management Total ($m)
Revenue 16.6 4.1 14.5 35.2
Operating expenses2 (12.1) (1.1) (6.3) (19.5)
Cost of sales — active trading - (3.3) - (3.3)
Total operating expenses (12.1) (4.4) (6.3) (22.8)
Net profit from management operations	4.5 (0.3) 8.2 12.4
HY14 Total ($m) Group corporate expenses (12.9) DXS asset management (5.5) Group corporate & asset management (18.4) Group corporate & asset management	Management Expense Ratio (MER)
	HY14 Gross MER3 Total ($m)
	A) Group corporate & asset management (18.4)
	B) Funds under management 7,418
	Gross MER = 2*A/B 50bps

1. Including nil trading profits and net development expense of $1.1m.

2. Comprises property management salaries of $4.3m and corporate & administration expenses of $15.2m.

3. Gross Management Expense Ratio: calculated as annualised domestic costs arising from managing DXS assets and corporate activity divided by funds under management.

DEXUS Property Group 2014 Half Year Results Presentation

Slide 11

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLDCAPITAL MANAGEMENT Key message (Trebuchet MS (Heading) 18)

==> picture [497 x 85] intentionally omitted <==

==> picture [497 x 85] intentionally omitted <==

==> picture [497 x 85] intentionally omitted <==

Slide 12

DEXUS Property Group 2014 Half Year Results – Presentation Title —PresSlide 12ntation

CAPITAL MANAGEMENT HY14 progress

Maintained strong credit rating metrics

Optimised cost of funds

Utilised on market securities buy-back to provide accretive investor returns

==> picture [498 x 88] intentionally omitted <==

==> picture [95 x 7] intentionally omitted <==

----- Start of picture text -----

Level 18, 1 Bligh Street, Sydney, NSW
----- End of picture text -----

==> picture [240 x 7] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group 2014 Half Year Results Presentation Slide 13
----- End of picture text -----

CAPITAL MANAGEMENT HY14 update

• Cost of debt was 20bps lower driven by reduced floating rates

• Debt duration increased to above six years

• Issued US$200 million long dated US Private Placement notes

• Sourced $1.3 billion of new funding commitments for CPA transaction

• $245 million (5%) buy-back announced 2 July 2013

• 73.7 million securities bought to date at 5.5% discount to NTA

• S&P and Moody’s credit ratings on CreditWatch Positive and developing outlook (respectively)

Debt maturity profile[2]

==> picture [243 x 109] intentionally omitted <==

----- Start of picture text -----

A$m
1,400
Bank DCM
1,200
1,000
800
600
400
200
-
Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 FY19+
----- End of picture text -----

	Key metrics	31 Dec 13	30 Jun 13
	Gearing	30.6%	29.0%
	Cost of debt1 Duration of debt	5.7% 6.1 years	5.9% 5.4 years
	Hedged debt	62%	64%
	Headroom S&P/Moody’s credit rating	$0.2bn BBB+/Baa1	$0.3bn BBB+/Baa1

Diversified mix of facilities[2]

==> picture [135 x 112] intentionally omitted <==

----- Start of picture text -----

CP
144A 3%
9%
Bank -
USPP unsecured
23% 48%
MTN
17%
----- End of picture text -----

1. Weighted average across the period, inclusive of fees and margins on a drawn basis. 2. Including US$200m USPP that settles in February 2014.

Slide 14

DEXUS Property Group 2014 Half Year Results Presentation

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLDTHIRD PARTY FUNDS MANAGEMENT Key message (Trebuchet MS (Heading) 18)

==> picture [497 x 85] intentionally omitted <==

==> picture [497 x 85] intentionally omitted <==

==> picture [497 x 85] intentionally omitted <==

DEXUS Property Group 2014 Half Year Results – Presentation Title —PresSlide 15ntation Slide 15

THIRD PARTY FUNDS MANAGEMENT HY14 progress

Attracted a new capital partner for long term co-investment

Identified new investment opportunities for existing capital partners

Continued to drive the performance of capital partners

==> picture [467 x 173] intentionally omitted <==

----- Start of picture text -----

Growth in funds under management since 2012 [1]
10$bn 6.3%
51% growth
Growth YTD
9
1.7 8.2 (excludes CPPIB)
8
7 0.9 6.6
6 5.4 0.3 51%
5 Growth since 2012
4 (includes CPPIB)
3
2
2
30 Jun 12 Formation of AIP Existing Fund Growth 31 Dec 13 CPPIB 31 Dec 13…
1. Change in total Australian third party funds under management since 30 June 2012.
2. Including 5 Martin Place, Sydney at reported cost to complete.
----- End of picture text -----

Slide 16

DEXUS Property Group 2014 Half Year Results Presentation

THIRD PARTY FUNDS MANAGEMENT Delivering on strategy

• Third party funds under management increases significantly through the takeover of CPA

• Third party FUM increases over 26% to $8.2 billion

• Represents 48% of total Group FUM of $17.4 billion

• DWPF continued to deliver on its investment plan

• Invested $316.7 million across four new properties

• Launched a $350 million pro-rata offer on 21 January 2014

• Continued outperformance against benchmark

• Australian Industrial Partnership on track

==> picture [158 x 20] intentionally omitted <==

----- Start of picture text -----

Third party funds under management
post CPA transaction
----- End of picture text -----

==> picture [160 x 129] intentionally omitted <==

----- Start of picture text -----

CPPIB 1
DWPF
$1.7bn
$4.6bn
AIP (50%)
$0.3bn
$8.2bn
Australian
Mandate
$1.6bn
----- End of picture text -----

• Increased by two properties to 19 properties with a total value of $506.8 million

• Including 5 Martin Place, Sydney at reported cost to complete.

DEXUS Property Group 2014 Half Year Results Presentation

==> picture [27 x 6] intentionally omitted <==

----- Start of picture text -----

Slide 17
----- End of picture text -----

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLDPORTFOLIO RESU TS Key message (Trebuchet MS (Heading) 18)

==> picture [497 x 90] intentionally omitted <==

==> picture [497 x 90] intentionally omitted <==

==> picture [497 x 89] intentionally omitted <==

Slide 18

DEXUS Property Group 2014 Half Year Results – Presentation Title —PresSlide 18ntation

==> picture [476 x 374] intentionally omitted <==

----- Start of picture text -----

PORTFOLIO RESULTS
Total portfolio — valuation metrics
 Total portfolio valuation uplift of $106.6m [1 ] Capitalisation rates 31 Dec 2013 30 Jun 2013
predominantly driven by leasing success DXS office portfolio 7.07% 7.17%
— Office portfolio valuations up 1.7% or $98.7m DXS industrial portfolio 8.40% 8.55%
—
Industrial portfolio valuations up 0.6% or $7.9m Total DXS portfolio 7.36% 7.47%
—
11bps tightening in total portfolio average cap rate
—
Expect further cap rate compression as fundamentals improve
Southgate Complex, Melbourne Woodside Plaza, Perth 45 Clarence Street, Sydney
Up $28.3m or 6.6% Up $20.0m or 4.2% Up $12.1m or 4.7%
1. For the six months ended 31 December 2013.
DEXUS Property Group 2014 Half Year Results Presentation Slide 19
----- End of picture text -----

PORTFOLIO RESULTS HY14 progress

Office and industrial

Delivered office and industrial like-for-like income growth of 3.3%

Reduced Sydney office portfolio FY15 and FY16 lease expiries within target

Launched initiatives to enhance tenant experience and develop tenant loyalty

Development and trading

Completed over 70,734 square metres of industrial developments

Progressed trading properties to deliver forecast trading profits of $4-5 million

Slide 20

DEXUS Property Group 2014 Half Year Results Presentation

==> picture [497 x 374] intentionally omitted <==

----- Start of picture text -----

PORTFOLIO RESULTS
Office portfolio — operating performance
 Achieved a strong total return and an improvement in
operating metrics
5.1 years 3.8%
67,973 sqm
WALE [2] Like-for-like
Leased [1 ] in total
(Jun 2013: 5.0 years) income growth
94.6% 69% 10.3%
Occupancy [2] Retention Total return [3]
(Jun 2013: 94.6%) (Jun 2013: 72%) (Jun 2013: 10.6%)
1. At 100%, including Heads of Agreement (HOA) of 39,141sqm.
2. By income.
3. For the 12 months to 31 December 2013. 1 Bligh Street, Sydney NSW
DEXUS Property Group 2014 Half Year Results Presentation Slide 21
----- End of picture text -----

PORTFOLIO RESULTS Office portfolio — strong operating performance

Achievements

• Solid leasing activity secured 67,973sqm[1] of space across 86 transactions

• Minter Ellison leased approximately 9,500sqm at Governor Macquarie Tower for 12 years, negotiated on an effective basis

• IBM extended lease over 11,485sqm at Southgate, Melbourne for further five years until December 2020

• Lumley General Insurance extended lease over 5,283sqm at 88 Shortland Street, Auckland until October 2020

	DXS office portfolio	31 Dec 13	30 Jun 13
	Occupancy by income	94.6%	94.6%
	Occupancy by area	93.9%	94.4%
	Number of leasing transactions1 Average incentive	86 16.9%	130 12.2%
	Average rental increase	2.5%	(0.1%)
	Retention rate 12 months	69%	72%
	Weighted average lease expiry2	5.1 years	5.0 years
	Total return – 1 year	10.3%	10.6%

• Secured six new or renewed leases totalling 2,011sqm at 39 Martin Place, Sydney on average terms of 6.7 years

• Introduced initiatives to enhance tenant experience and develop tenant loyalty

• Occupancy by income remained stable at 94.6%

• At 100%, including HOA. 2. By income.

Slide 22

DEXUS Property Group 2014 Half Year Results Presentation

PORTFOLIO RESULTS Office portfolio — lease expiry profile

Lease expiry profile by income as at 31 December 2013

==> picture [457 x 197] intentionally omitted <==

----- Start of picture text -----

14%
13.2% [1]
12%
10% 9.6% [1] 10.8%
10.0%
8% 8.8%
8.3%
6% 5.6% [1]
5.4%
4%
2.9%
2%
0%
Vacant FY14 FY15 FY16 FY17 FY18
----- End of picture text -----

==> picture [41 x 5] intentionally omitted <==

----- Start of picture text -----

1. 30 June 2013.
----- End of picture text -----

==> picture [154 x 6] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group 2014 Half Year Results Presentation
----- End of picture text -----

==> picture [27 x 6] intentionally omitted <==

----- Start of picture text -----

Slide 23
----- End of picture text -----

==> picture [233 x 374] intentionally omitted <==

----- Start of picture text -----

30 Distribution Drive, Laverton North, VIC
Quarry Industrial Estate, 1 Bellevue Circuit, Greystanes, NSW
----- End of picture text -----

PORTFOLIO RESULTS

Industrial portfolio — solid operating performance

• Solid leasing across 31 transactions

• Completed developments at Quarry at Greystanes are 100% leased

==> picture [184 x 187] intentionally omitted <==

----- Start of picture text -----

4.1 years
72,687 sqm
WALE [2]
Leased [1 ] in total
(Jun 2013: 4.1 years)
94.2% 63%
Occupancy [2] Retention
(Jun 2013: 96.1%) (Jun 2013: 70%)
2.1% 9.2%
Like-for-like Total return
income growth (Jun 2013: 8.8%)
----- End of picture text -----

1. At 100%, including HOA of 50,832sqm.

2. By income.

Slide 24

DEXUS Property Group 2014 Half Year Results Presentation

PORTFOLIO RESULTS Industrial portfolio

Achievements

• Solid leasing result in a challenging market secured 72,687sqm[1] across 31 transactions

• Consortium Group signed HOA to pre-lease 15,500sqm at Quarry at Greystanes for six years

• Cotton On leased 12,246sqm at Wacol for 10 years

• Allied Pickfords renewed its lease over 8,672sqm at Foundation Place, Greystanes for a further seven year term

• Occupancy by income decreased to 94.2%

	DXS industrial portfolio	31 Dec 13	30 Jun 13
	Occupancy by income	94.2%	96.1%
	Occupancy by area	94.3%	95.9%
	Number of leasing transactions1 Average incentive	31 9.9%	122 7.9%
	Average rental increase Retention rate 12 months	(7.1%) 63%	(2.4%) 70%
	Weighted average lease expiry2	4.1 years	4.1 years
	Total return – 1 year	9.2%	8.8%

• Includes completed 11,854sqm speculative development[3] at Laverton North

• Legrand vacated 5,575sqm in Auburn in December 2013

• WALE[2] remained stable at 4.1 years

• At 100%, including HOA. 2. By income.

• DXS share 5,927sqm.

DEXUS Property Group 2014 Half Year Results Presentation

Slide 25

PORTFOLIO RESULTS Development

==> picture [497 x 86] intentionally omitted <==

==> picture [497 x 85] intentionally omitted <==

==> picture [497 x 86] intentionally omitted <==

Slide 26

DEXUS Property Group 2014 Half Year Results Presentation

PORTFOLIO RESULTS

Development and fund-through pipeline — Group

==> picture [497 x 304] intentionally omitted <==

----- Start of picture text -----

$2.8 bn
Total Group development pipeline
$1.1bn $1.7bn
DXS portfolio Third Party Funds
1.Viking Drive, Wacol, QLD –Costs shown at 100%. completed during the period.
2. At ownership.
3. Excludes land costs.
DEXUS Property Group 2014 Half Year Results Presentation Slide 27
----- End of picture text -----

PORTFOLIO RESULTS DXS portfolio development pipeline

Developments and fund-throughs	No. of projects	Total est cost1	Est cost to complete1
Completed projects for trading2 Development under construction Future developments Fund-through investments3	2 1 5 2	$72m $23m $545m $489m	$4m $9m $413m $381m
Total DXS pipeline4	10	$1,129m	$807m
Total third party pipeline	13	$1,723m	$1,493m

• Identified new re-zoning opportunities within DEXUS’s portfolio

• Inner west and south Sydney industrial

• Melbourne and Sydney office

• Costs shown at 100%.

• Comprises Wacol, QLD and Erskine Park, NSW.

• At ownership.

• Excluding DXS repositioning properties held as inventory.

Slide 28

DEXUS Property Group 2014 Half Year Results Presentation

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLDTRA S C IONS AND MARKET OUTLOOK Key message (Trebuchet MS (Heading) 18)

==> picture [498 x 88] intentionally omitted <==

==> picture [498 x 88] intentionally omitted <==

==> picture [498 x 114] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group 2014 Half Year Results – Presentation Title —PresSlide 29ntation Slide 29
----- End of picture text -----

TRANSACTIONS

Another active period of transaction activity across the Group

==> picture [466 x 189] intentionally omitted <==

----- Start of picture text -----

DEXUS Third Party Funds
Divestments Acquisitions
2
$51m 10.0% 4 $317m 8.2%
Office
Sale price WACR [1] DWPF Purchase price WACR [1]
properties
6
$92m 8.3% 2 $18m 8.0%
Industrial
Sale price WACR [1] AIP Purchase price [2] WACR [1]
properties
----- End of picture text -----

1. Based on expected end value of properties acquired on a fund-through basis.

2. Weighted average capitalisation rate.

Slide 30

DEXUS Property Group 2014 Half Year Results Presentation

TRANSACTIONS Takeover of Commonwealth Property Office Fund (CPA)

• Secured support from the Commonwealth Bank of Australia and large institutional investors

• Offer closes 14 February 2014

• Staged transition planning well progressed

• No obligation to sell the properties that form the agreement with GPT Wholesale Office Fund (GWOF) until the Consortium acquires 100% of CPA units

Combined DXS/CPA lease expiry profile by income[1]

==> picture [222 x 116] intentionally omitted <==

----- Start of picture text -----

14%
12.0%
12% 10.6%
10% 8.4% 8.5%
8%
5.9%
6%
4% 3.2%
2%
0%
Vacancy FY14 FY15 FY16 FY17 FY18+
----- End of picture text -----

Portfolio metrics2	CPA	Combined
	portfolio	DXS/CPA
Number of properties	21	45
Total value	$3.6bn	$7.5bn
Occupancy Weighted average lease expiry	90% 4.4 years	93% 5.0 years
Capitalisation rate	7.2%	7.1%
Prime grade %	93%	92%

1. Excluding 5 Martin Place, Sydney.

2. Excluding properties sold to GWOF and including 5 Martin Place, Sydney on completion.

DEXUS Property Group 2014 Half Year Results Presentation

Slide 31

MARKET OUTLOOK Why office demand will improve from FY15

• Demand to improve in FY15 due to

• Economy responding to easing monetary policy and lower AUD

• Improving business conditions and confidence

• Recovery in employment to be led by business services, accounting, legal, IT, education and pharmaceuticals

• Tenant migration into CBD areas

• Sydney and Melbourne to lead improvement with Brisbane and Perth to follow

==> picture [203 x 9] intentionally omitted <==

----- Start of picture text -----

DEXUS Office Demand Barometer points to improvement
----- End of picture text -----

==> picture [210 x 222] intentionally omitted <==

----- Start of picture text -----

Actual demand
12% % of stock (annualised) Barometer
8%
4%
0%
-4%
-8%
Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13
Office demand in the four main CBDs vs employment growth
'000 sqm PER BRI MEL SYD NAT WC (RHS)
500 5%
400 4%
300 3%
200 2%
100 1%
0 0%
-100 -1%
-200 -2%
-300 -3%
FY03 FY05 FY07 FY09 FY11 FY13 FY15 FY17
----- End of picture text -----

==> picture [219 x 9] intentionally omitted <==

----- Start of picture text -----

Office demand in the four main CBDs vs employment growth
----- End of picture text -----

Source: Jones Lang LaSalle, Bloomberg, NAB, DEXUS Research. DEXUS Office Barometer includes five variables: S&P/ASX 200 Index, NAB Business Confidence Index, ANZ job ads, US ISM Manufacturing Index and short-term business travel departures.

Slide 32

DEXUS Property Group 2014 Half Year Results Presentation

MARKET OUTLOOK Industrial markets relatively stable

• Lead indicators for demand now improving (business confidence, consumer confidence)

• Demand to be driven by tenants consolidating and seeking efficiencies eg. logistics and retail

• Limited availability of prime space

• Rents flat in FY14, then upside in medium term

• Melbourne very competitive

• Sydney subdued but stable

• Brisbane has paused but could recover quickly

==> picture [209 x 233] intentionally omitted <==

----- Start of picture text -----

Consumption – to drive rental growth
% p.a. NSW consumption spending RHS Outer West Rent Growth
12% 6%
forecast
8% 4%
4% 2%
0% 0%
-4% -2%
-8% -4%
FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 FY17
National prime vacancy remains low
Prime Secondary
8%
6%
4%
2%
0%
H208 H109 H209 H110 H210 H111 H211 H112 H212 H113
----- End of picture text -----

Source: Jones Lang LaSalle, Savills, Deloitte Access Economics, DEXUS Research.

DEXUS Property Group 2014 Half Year Results Presentation

Slide 33

MARKET OUTLOOK Investment demand

• Markets nearing low point of rent cycle – growth anticipated medium/long term

• Further declines in capitalisation rates should lead to firming of capital values

• Strong investment demand for quality stock due to solid income yield

• Wide spread in pricing of assets depending on risk, based on

• duration of leases

• prime vs secondary assets

• CBD vs fringe/metropolitan

• Pricing spreads expected to narrow in the medium term for quality properties, but likely to remain uneven

Capitalisation rates – prime and secondary (Sydney CBD)

==> picture [215 x 107] intentionally omitted <==

----- Start of picture text -----

Spread (RHS) Best prime Lower secondary
10% 3%
9%
8% 2%
7%
6% 1%
5%
4% 0%
Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13
----- End of picture text -----

==> picture [165 x 9] intentionally omitted <==

----- Start of picture text -----

Capital values – office and industrial (Sydney)
----- End of picture text -----

==> picture [197 x 72] intentionally omitted <==

----- Start of picture text -----

Index Dec-03=100) Office Industrial
180
160
140
120
100
----- End of picture text -----

80 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13

Source: Jones Lang LaSalle, DEXUS Research.

Slide 34

DEXUS Property Group 2014 Half Year Results Presentation

==> picture [498 x 349] intentionally omitted <==

----- Start of picture text -----

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLDSUMMARY
Key message (Trebuchet MS (Heading) 18)
----- End of picture text -----

==> picture [498 x 102] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group 2014 Half Year Results – Presentation Title —PresSlide 35ntation Slide 35
----- End of picture text -----

SUMMARY

• Delivered a solid result in a challenging market

• Expect office market conditions to improve in FY15

• Focus moving forward:

• Ensure CPA portfolio is successfully integrated

• Continue to drive earnings from existing business

• Market guidance for FY14[1]

• FFO per security 8.29 cents, representing 7.0% growth

• Distribution per security 6.24 cents

• Barring unforeseen circumstances. Assumptions include: 75% payout ratio, delivering 2.5-3.5% like-for-like income growth across the office and industrial portfolios, $4-5m in trading profits, circa 5.7% cost of debt and excluding impact of CPA transaction.

Foyer, Australia Square, 264 George Street, Sydney NSW

==> picture [179 x 284] intentionally omitted <==

Slide 36

DEXUS Property Group 2014 Half Year Results Presentation

APPENDICES

==> picture [497 x 86] intentionally omitted <==

==> picture [497 x 86] intentionally omitted <==

==> picture [497 x 86] intentionally omitted <==

DEXUS Property Group 2014 Half Year Results Presentation

Slide 37

CONTENTS

Group highlights

DEXUS today

oup highlights
DEXUS today	39
Takeover of CPA – the journey so far	40
Total security holder returns	41

Financial results

Net tangible assets and return on equity 42 Change in net tangible assets 43 FFO reconciliation 44 Interest reconciliation 45 Direct property portfolio movements 46 Capital management Interest rate hedging profile 46 47

Capital management

Interest rate hedging profile Debt overview and buy-back summary

Portfolio results

Portfolio results
Office portfolio	48
Industrial portfolio	54
Transactions
Another active transaction period	59
Developments
DXS portfolio	60
Completed and underway	61
Uncommitted pipeline	62
Market outlook	63
FX rates	64
Glossary	65
Important information	66

Slide 38

DEXUS Property Group 2014 Half Year Results Presentation

GROUP HIGHLIGHTS DEXUS today

==> picture [497 x 306] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group platform
$14.0bn AUM
Public and private capital 239 property professionals 127 properties 3,173,303sqm NLA
Office Industrial Retail Development pipeline [1]
$8.0bn $2.6bn $3.4bn $2.8bn
DXS portfolio investments Third Party Funds Management
$7.4bn $6.6bn
Industrial
Industrial 15% Office
$1.6bn 34%
22%
Office
$7.4bn $5.8bn78% $6.6bn
Retail
51%
1. Including fund-through investments.
DEXUS Property Group 2014 Half Year Results Presentation Slide 39
----- End of picture text -----

GROUP HIGHLIGHTS

– Takeover of CPA the journey so far

==> picture [498 x 88] intentionally omitted <==

==> picture [498 x 88] intentionally omitted <==

==> picture [498 x 88] intentionally omitted <==

----- Start of picture text -----

KEY
Consortium: DEXUS Property Group & Canada Pension Plan Investment Board
GPT: The GPT Group
GWOF: GPT Wholesale Office Fund
CBA: Commonwealth Bank of Australia
CMIL: Commonwealth Managed Investments Limited
----- End of picture text -----

Slide 40

DEXUS Property Group 2014 Half Year Results Presentation

GROUP HIGHLIGHTS Total security holder returns

DXS investor returns

• One year total security holder return of 5.1%[1]

• Outperformed A-REIT index[2] over 3 and 5 years

• Distribution per security growth of 6.2% for the 6 months ended 31 December 2013

==> picture [177 x 152] intentionally omitted <==

----- Start of picture text -----

DEXUS total security holder return
20%
14.7%
12.0% 12.1%
10% 8.6%
7.1%
5.1%
0%
1 Year 3 Years 5 Years
DEXUS Property Group S&P/ASX 200 Property Accumulation Index
1. DXS share price appreciation plus distributions paid. Source UBS.
----- End of picture text -----

==> picture [213 x 135] intentionally omitted <==

----- Start of picture text -----

Distribution — cents per security
7.0
6.0
5.0
3.17
4.0
3.0 6.00 6.24 [3]
5.10 5.18 5.35
2.0
3.07
1.0
0.0
FY10 FY11 FY12 FY13 FY14
Actual 1H14 (actual) 2H14 (guidance)
----- End of picture text -----

1. S&P/ASX 200 Property Accumulation Index.

2. Based on FY14 market guidance for FFO of 8.29 cents per security, 75% payout ratio and excluding impact of CPA transaction.

==> picture [240 x 7] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group 2014 Half Year Results Presentation Slide 41
----- End of picture text -----

FINANCIAL RESULTS Change in net tangible assets and revaluations

31 Dec 2013 $m cps Opening net tangible assets (30 Jun 13) 4,948 105.2 Revaluation of real estate 107 Retained earnings1 48 Amortisation of tenant incentives2 (14) Fair value movements3 (6) NTA changes pre securities buy-back 135 Impact of the securities buy-back (75) Total movement in NTA 3.0 Closing net tangible assets (31 Dec 13) 5,008 108.2	Investment portfolio Valuation change ($m) Cap Rate (%) % of portfolio
	DXS office portfolio 98.7 7.07% 78% DXS industrial portfolio 7.9 8.40% 22%
	Total DXS portfolio 106.6 7.36% 100%

1. Based on payout ratio of 75% of FFO.

2. Includes rent straight-lining.

3. Primarily includes fair value movements of derivatives and interest bearing liabilities, deferred tax and gain/(loss) on sale of assets and includes property revaluations of discontinued operations.

Slide 42

DEXUS Property Group 2014 Half Year Results Presentation

FINANCIAL RESULTS FFO reconciliation — current and Property Council of Australia (PCA)

• From 1 July 2014, DXS will adopt a new definition for calculating FFO, in accordance with the PCA white paper “Voluntary best practice guidelines for disclosing FFO and AFFO”. The table below shows how DEXUS’s FFO for the six months ended 31 December 2013 would have been reported under the PCA definition

	Reference	Item	DXS FFO	PCA FFO
			$m	$m
	Statutory AIFRS net profit after tax		277.2	277.2
	A Investment property and inventory
	A2	Losses from sales of investment property	0.5	0.5
	A3	Fair value gain on investment property	(106.6)	(106.6)
	C Financial instruments
	C2	Fair value loss on the mark-to-market of derivatives	15.1	15.1
	D Incentives and rent straightlining
	D1	Amortisation of fit out incentives	15.0	15.0
	D2	Amortisation of cash incentives	2.0	2.0
	D4	Amortisation of rent-free periods	-	13.9
	D5	Rent straightlining	(2.6)	(2.6)
	E Tax
	E1	Non-FFO deferred tax benefits	(0.1)	(0.1)
	F Other unrealised or one-off Items
	F1	Recycling of foreign currency translation reserve (FCTR)	(0.8)	(0.8)
	F2	Other unrealised or one-off items1	(9.9)	(9.9)
	FFO		189.8	203.7
	FFO per security (cents)		4.08	4.38

1. Includes $2.5m finance break costs attributable to sales transactions, $5.2m CPA distribution (net of funding cost), $3.3m coupon income and $20.9m of unrealised fair value gains on interest bearing liabilities.

DEXUS Property Group 2014 Half Year Results Presentation Slide 43

FINANCIAL RESULTS Interest reconciliation

	31 Dec 2013	31 Dec 2012
	$m	$m
Interest paid/payable	62.8	60.9
Other finance costs (amortised fees)	1.9	2.0
Realised interest rate swap (income)/expense1	0.9	(2.4)
Gross finance costs for cost of debt purposes	65.6	60.5
Less: interest capitalised	(4.2)	(6.1)
Net finance costs for distributable earnings	61.4	54.4
Add: unrealised interest rate swap MTM loss1	1.6	10.4
Add: finance costs attributable to sales transactions	2.5	12.4
Total statutory finance costs	65.5	77.2
Net fair value loss of derivatives	13.5	1.5
Net fair valuegain on interest bearingliabilities	(20.9)	-
Total statutory finance costs including derivatives	58.1	78.7
Represented by:
Statutory finance costs from continuing operations (Fin Stats note 2)	65.5	51.8
Net fair value loss of derivatives (Statement of Comprehensive Income)	13.5	0.6
Finance costs from discontinued operations	-	25.4
Net fair value loss of derivatives (discontinued operations)	-	0.9
Net fair valuegain on interest bearingliabilities(Statement of Comprehensive Income)	(20.9)	-
Total statutory finance costs	58.1	78.7

1. Net fair value loss of interest rate swap of $2.5m (per note 2) includes realised interest rate swap expense of $0.9m and unrealised interest rate swap MTM loss of $1.6m.

Slide 44

DEXUS Property Group 2014 Half Year Results Presentation

FINANCIAL RESULTS Direct property portfolio movements

Office1 ($m) Industrial ($m)	Discontinued operations2 ($m)	DEXUS total1 ($m)
Opening direct property 5,687 1,564 Leasing incentives3 28 7 Maintenance capex 19 4 Acquisitions - - Developments4 35 25 Disposals5 (30) (7) FX 10 - Revaluations 99 8 Amortisation (29) (4) Straight-lining 2 -	7 - - - - (7) - - - -	7,258 35 23 - 60 (44) 10 107 (33) 2
Closing direct property 5,821 1,597	-	7,418

1. Includes DXS’s share of equity accounted investments. 4. Includes capitalised interest. 2. 5. At book value.

2. Europe.

3. Includes rent free incentives.

DEXUS Property Group 2014 Half Year Results Presentation Slide 45

CAPITAL MANAGEMENT Interest rate hedging profile

==> picture [362 x 233] intentionally omitted <==

----- Start of picture text -----

Hedging profile 31 Dec 2013 31 Dec 2012
Average amount of debt hedged [1] 62% 70%
Average amount of debt hedged excluding caps [1] 51% 67%
Weighted average interest rate on hedged debt [2] 3.88% 3.70%
Weighted average fixed & floating rate [3] 5.7% 5.8%
Weighted average maturity of interest hedges 5.2 years 4.0 years
Hedge maturity profile
2,000 8%
1,500 6%
1,000 4%
500 2%
0 0%
HY14 FY14 FY15 FY16 FY17 FY18+
Net fixed debt Interest rate caps Interest rate waps Weighted average hedge rate
A$ equivalent
----- End of picture text -----

1. Average amount hedged for the period. Excludes NZD debt.

2. Including fixed rate debt (without credit margin).

3. Including fees and margins.

Slide 46

DEXUS Property Group 2014 Half Year Results Presentation

CAPITAL MANAGEMENT

Debt overview and buy-back summary

Key metrics 31 Dec 2013 30 Jun 2013	Buy-back program FY14 program FY13 program Total securities bought back 73.7m 137.1m % of total commitment 31.4% 64.3% Total unit cost bought back $75.3 $128.5m Average price per security $1.0211 $0.937 The 2014 buy-back program was launched on 3 July 2013 an suspended on 11 October 2013 due to the CPA transaction. No securities have been bought back since DEXUS made the takeover offer for CPA.
Total debt $2,336m $2,167m Cost of debt1 5.7% 5.9% Gearing 30.6% 29.0% Headroom (approximately)2 $0.2bn $0.3bn Debt duration 6.1 years 5.4 years S&P/Moody’s rating BBB+/Baa1 BBB+/Baa1 Covenant gearing (covenant3 <55%) 30.7% 29.1% Interest cover (covenant3 >2.0x) 3.9x 4.0x Priority debt (covenant3 <30%) 0% 0%

• The 2014 buy-back program was launched on 3 July 2013 and suspended on 11 October 2013 due to the CPA transaction.

• Weighted average for the year.

• Undrawn facilities plus cash. Excluding forward start commitments and USPP due for settlement in February 2014. 3. As per public bond covenants.

DEXUS Property Group 2014 Half Year Results Presentation

Slide 47

PORTFOLIO RESULTS

Office operating performance

Office portfolio	31 Dec 2013	30 Jun 2013
Occupancy by income	94.6%	94.6%
Occupancy by area	93.9%	94.4%
Average incentive	16.9%	12.2%
Average rental increase/(decrease)	2.5%	(0.1%)
Retention rate rolling 12 mths	69%	72%
Retention rate YTD	59%	72%
Under rented	1.4%	3.8%
Weighted average lease expiry1	5.1 years	5.0 years
Weighted average cap rate	7.07%	7.17%
Total return— 1 year	10.3%	10.6%

==> picture [203 x 143] intentionally omitted <==

==> picture [203 x 143] intentionally omitted <==

Level 18, 1 Bligh Street, Sydney, NSW

1. By income.

Slide 48

DEXUS Property Group 2014 Half Year Results Presentation

PORTFOLIO RESULTS

Office lease expiry profile at 31 December 2013

==> picture [470 x 223] intentionally omitted <==

----- Start of picture text -----

70%
62.6%
60.7%
60%
50%
40%
30%
20%
11.0% 10.0% 11.4% 10.8%
8.6% 8.3%
10% 6.1% 5.4%
2.2% 2.9%
0%
Vacant FY14 FY15 FY16 FY17 FY18+
Area Income
----- End of picture text -----

==> picture [497 x 57] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group 2014 Half Year Results Presentation Slide 49
----- End of picture text -----

PORTFOLIO RESULTS Office portfolio diversification

Property type by book value

Geographical weighting by book value

==> picture [406 x 113] intentionally omitted <==

----- Start of picture text -----

Land &
Office parks Carparks3% development2% Canberra1% Auckland2%
3% Perth
10%
B-grade
6%
Sydney
Brisbane 64%
10%
A-grade Premium
47% 39%
Melbourne
13%
----- End of picture text -----

Slide 50

DEXUS Property Group 2014 Half Year Results Presentation

PORTFOLIO RESULTS Office top 10 tenants

	Office tenant	S&P rating	% of income1	Diversity of office tenants by income	Diversity of office tenants by income	Diversity of office tenants by income
	Woodside Energy	BBB+ positive	7.1%	100%		Other
	Rio Tinto Wilson Parking	A- negative Not rated	4.8% 4.2%	80% 90%		Tourism Retailing (non-food) Healthcare and social assistance
	Grant Thornton	Not rated	4.0%	70%		Electricity, gas, water & waste Administrative services
	Commonwealth of Australia Lend Lease Management Services	AAA stable BBB- stable	3.8% 2.7%	60%		Rental & Real Estate services Construction services
	State of NSW IBM Australia Limited	AAA negative AA- stable	2.4% 2.2%	40% 50%		Food Retailing Metal ore mining Insurance
	State of Victoria	AAA stable	2.1%	30%		Federal Government Investment Banks
	Deloitte Services	Not rated	2.0%	20%		State Government
				0% 10%		Oil and Gas Parking Information media & telecoms Financial Services
						Accounting & business services
						Legal

1. 31 December 2013 fully leased passing income annualised.

DEXUS Property Group 2014 Half Year Results Presentation

Slide 51

PORTFOLIO RESULTS Corporate Responsibility and Sustainability

• Maintained and improved NABERS Energy and Water ratings

• Weighted average 4.8 star NABERS Energy rating exceeding the 4.5 star target in DXS office portfolio[1]

• Weighted average 3.5 star NABERS Water rating in line with target in DXS office portfolio[1]

• Achieved $5.3 million p.a. savings from energy efficiency improvements and reductions in tenant outgoings

• Outperformed in IPD Green Building Index in both Green Star and NABERS Benchmarks

• Inclusion on the Carbon Disclosure Projects Performance Leadership Index in 2013

==> picture [458 x 118] intentionally omitted <==

----- Start of picture text -----

800 DXS Office Energy 1000 DXS Office Water 160 DXS Office GHG
800 880.9 139.3
600 120
636.3
600 689.9 639.7 671.4 98.0
400 450.7 413.7 422.3 400 80 87.6 85.9
200 40
200
0 0 0
Jul 07 to Jan 11 to Jan 12 to Jan 13 to Jul 07 to Jan 11 to Jan 12 to Jan 13 to Jul 07 to Jan 11 to Jan 12 to Jan 13 to
Jun 08 Dec 11 Dec 12 Dec 13 Jun 08 Dec 11 Dec 12 Dec 13 Jun 08 Dec 11 Dec 12 Dec 13
33.6% reduction 23.8% reduction 38.3% reduction
----- End of picture text -----

Note: Data in charts is unaudited. 1. On a like-for-like portfolio basis.

Slide 52

DEXUS Property Group 2014 Half Year Results Presentation

PORTFOLIO RESULTS

Office portfolio sustainability metrics

DXS office portfolio	Jun 08	Dec 11	Dec 12	Dec 13
NABERS Energy average rating1	N/A	3.5	4.7	4.8
NABERS Water average rating	N/A	3.2	3.5	3.5
Energy consumption/intensity (MJ/sqm)	636.3	450.7	413.7	422.3
Water consumption/intensity (L/sqm)	880.9	689.9	639.7	671.4
Greenhouse gas emissions/intensity (kgCO2-e/sqm)	140.8	98.0	87.6	85.9

1. NABERS Energy ratings on a like-for-like basis with GreenPower. On an absolute basis the DXS weighted average NABERS Energy rating for 31 December 2013 is 4.6 stars.

DEXUS Property Group 2014 Half Year Results Presentation Slide 53

PORTFOLIO RESULTS
Industrial operating performance
				Quarry Industrial Estate, 4 Turnbull Close, Greystanes NSW
Industrial portfolio	31 Dec	2013	30 Jun 2013
Occupancy by income		94.2%	96.1%
Occupancy by area		94.3%	95.9%
Average rental decrease	(7.1%)		(2.4%)
Average incentive1		9.9%	7.9%
Retention rate rolling 12 mths		63%	70%
Retention rate YTD		52%	70%
				3676 Ipswich Road, Wacol , QLD
Over rented		5.8%	4.8%
Weighted average lease expiry2	4.1	years	4.1 years
Weighted average cap rate		8.40%	8.55%
Total return — 1 year		9.2%	8.8%
1.Across all lease deals in the period, excluding development leasing.
2.By income.
DEXUS Property Group 2014 Half Year Results Presentation			Slide 54

PORTFOLIO RESULTS

Industrial lease expiry profile at 31 December 2013

==> picture [470 x 232] intentionally omitted <==

----- Start of picture text -----

50%
46.0%
44.9%
45%
40%
35%
30%
25%
20%
15% 12.1% 13.3% 14.5% 14.4% 13.8% 13.5%
10% 7.9% 8.1%
5.7% 5.8%
5%
0%
Vacant FY14 FY15 FY16 FY17 FY18 +
Area Income
----- End of picture text -----

==> picture [497 x 57] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group 2014 Half Year Results Presentation Slide 55
----- End of picture text -----

PORTFOLIO RESULTS Industrial portfolio diversification

Property type by book value

Geographical weighting by book value

==> picture [422 x 150] intentionally omitted <==

----- Start of picture text -----

Data centre Developments Adelaide
Land 4% 2% Brisbane 2%
5%
3%
Business parks
27%
Distribution Sydney
centres 53%
24%
Melbourne
40%
Industrial
estates
40%
----- End of picture text -----

Slide 56

DEXUS Property Group 2014 Half Year Results Presentation

PORTFOLIO RESULTS Industrial top 10 tenants

==> picture [457 x 247] intentionally omitted <==

----- Start of picture text -----

Industrial tenant % of income [1] Diversity of industrial tenants by income
100%
Wesfarmers Limited 5.7% Other
AWH Pty Ltd 4.2% 90% Retailing (non-food)
Toll Transport Pty Ltd 3.5% Electricity, gas, water & waste
80%
IBM Australia 3.5% Printing
70%
Visy Industry Packaging Pty Ltd 3.2% Food and beverage manufacturing
DHL 3.1% 60% Other goods wholesaling
Salmat Business Force Pty Ltd 2.5% 50% Transport support services
Blackwoods 2.4% Professional, scientific & technicalservices 2
40%
L’Oreal Australia Pty Ltd 2.1% Road, rail, water, air & space transport
Jemena Pty Ltd 1.9% 30% Construction services
Manufacturing
20%
Information media & telecoms
10%
General wholesaling
0% Warehousing and storage services
----- End of picture text -----

1. 31 December 2013 fully leased passing income annualised. 2. Except computer system design and related services.

DEXUS Property Group 2014 Half Year Results Presentation

==> picture [27 x 6] intentionally omitted <==

----- Start of picture text -----

Slide 57
----- End of picture text -----

PORTFOLIO RESULTS Industrial resource consumption

==> picture [209 x 162] intentionally omitted <==

----- Start of picture text -----

DXS Industrial Energy
40
30
31.7
25.2
20 24.2 22.7
10
0
Jul 07 to Jun 08 Jan 11 to Dec 11 Jan 12 to Dec 12 Jan 13 to Dec 13
20.5% reduction
----- End of picture text -----

==> picture [77 x 8] intentionally omitted <==

----- Start of picture text -----

DXS Industrial GHG
----- End of picture text -----

==> picture [213 x 149] intentionally omitted <==

----- Start of picture text -----

10.0
8.0
7.8
6.0
6.0 6.0
5.7
4.0
2.0
0.0
Jul 07 to Jun 08 Jan 11 to Dec 11 Jan 12 to Dec 12 Jan 13 to Dec 13
23.1% reduction
----- End of picture text -----

Note: Data in charts is unaudited.

Slide 58

DEXUS Property Group 2014 Half Year Results Presentation

TRANSACTIONS

Another active period

	DXS divestments Sale price $m Cap Rate Settlement Date Wustermark, Germany 8.91 n/a 13 Aug 13 40 Talavera Rd, Macquarie Park 28.2 10.0% 23 Aug 13 10-16 South St, Rydalmere 43.25 8.6% 28 Feb 14 14 Moore Street, Canberra 23.0 10.0% 4 Jun 14 85 Egerton Street, Silverwater 6.1 n/a 25 Jun 14 25 Donkin Street, Brisbane 25.65 8.0% 30 Jun 14 Industrial divestments2 8.4 8.0% Total 143.5 AM60, 42-60 Albert Street, Brisbane QLD 1439 Lytton Street, Hemmant QLD 1. Sale price was €6.1 million. 2. Includes the sale of a 50% interest in one property to the AIP on a fund-through basis
		DWPF acquisitions Purchase price $m Cap Rate Settlement Date
		42-60 Albert Street, Brisbane 161.3 8.5% 31 Jan 14 Beenleigh Marketplace 88.4 7.5% 16 Dec 13 441 Nudgee Rd, Hendra 27.4 8.5% 28 Oct 13 1439 Lytton Road, Hemmant 39.6 8.25% 27 Nov 13
		Total 316.7
		441 Nudgee Road, Hendra QLD

==> picture [296 x 148] intentionally omitted <==

----- Start of picture text -----

1. Sale price was €6.1 million.
2. Includes the sale of a 50% interest in one property to the AIP on a fund-through basis
AM60, 42-60 Albert Street, Brisbane QLD 1439 Lytton Street, Hemmant QLD
----- End of picture text -----

==> picture [83 x 130] intentionally omitted <==

----- Start of picture text -----

441 Nudgee Road, Hendra QLD
----- End of picture text -----

==> picture [27 x 6] intentionally omitted <==

----- Start of picture text -----

Slide 59
----- End of picture text -----

==> picture [154 x 6] intentionally omitted <==

----- Start of picture text -----

DEXUS Property Group 2014 Half Year Results Presentation
----- End of picture text -----

DEVELOPMENTS DXS portfolio

					Total estimatedproject cost	Total estimatedproject cost	Total estimatedproject cost	Total estimatedproject cost	Total estimatedproject cost
DXS developments and fund-throughs	Total est cost1	Est cost to complete1			FY14		FY15		FY16+
DEXUS Industrial Estate, Laverton North	$122m	$97m			$122m
Quarry at Greystanes	$77m	$46m			$23m	$54m
105 Phillip Street, Parramatta	$120m	$112m					$120m
12 Creek St, Brisbane2	$19m	$19m					$19m
180 Flinders Street, Melbourne	$230m	$148m							$230m
480 Queen Street, Brisbane2	$272m	$213m			$272m
Kings Square, Perth2	$217m	$168m			$217m
DXS pipeline	$1,057m	$882m
Completed developments for trading	$72m	$4m			Developments underway
DXS pipeline including trading	$1,129m	$886m			~~Uncommitted development pipeline~~ Fund-through office investments
DXS value-add and repositioning	Inventory3			DXS capital expenditure				Est FY14
50 Carrington Street, Sydney 40 Market Street, Melbourne 57-101 Balham Road, Archerfield 1-15 Rosebery Avenue, Rosebery 25-55 Rothschild Avenue, Rosebery 154 O’Riordan Street, Mascot	$59m $47m $22m $59m $37m $14m			Maintenance capital expenditure				$40-50m
				Tenant incentives and leasing costs				$40-50m
				Total capital expenditure				$80-100m
Total DXS value-add properties	$238m

1. Costs shown at 100%, including land.

2. DXS share.

3. Acquisition or transfer price excluding costs and does not represent the trading price for the property.

Slide 60

DEXUS Property Group 2014 Half Year Results Presentation

DEVELOPMENTS

Developments — completed and underway

Completed		Building area	Project	cost	Yield on	cost	Leased	Leased	Completed
		sqm	A$m2			%		%	date
Laverton North, Vic — Spec facility 4		11,854		9.9		8.0		-	Jul 2013
Laverton North, Vic — Toll 2		18,670		16.8		8.4		100	Jul 2013
Wacol, Qld — Cotton On		12,246		16.2		8.3		100	Jul 2013
Greystanes, NSW — Roche		10,105		13.5		8.5		100	Dec 2013
Greystanes, NSW — Blackwood		17,859		29.8		7.9		100	Dec 2013
Total completed		70,734		86.2
Underway	Area	Est. total cost2 Est.	cost to	Pre-leased		Est. yield		Est.	completion
	sqm	A$m completion			%	on	cost		date
			A$m				%
Greystanes, NSW — Warehouse 10	19,480	23.0	9.0		80		8.2		Apr 2014
Total underway		23.0

1. At 100% ownership.

2. Including land.

DEXUS Property Group 2014 Half Year Results Presentation Slide 61

DEVELOPMENTS

Developments — uncommitted pipeline

DXS	Building area	Project est.	Est. cost to	Est. yield on est.
	sqm	A$m1	completion	project cost
			A$m	%
Office
180 Flinders Street, Melbourne, VIC	24,417	230	148	7.4
12 Creek Street, Brisbane, QLD2	4,820	19	19	9.2
105 Phillip Street, Parramatta, NSW	20,500	120	112	8.5
Total office	49,737	369	279	7.9
Industrial3
Greystanes, NSW	37,750	54	37	8.3
DEXUS Industrial Estate, Laverton North, VIC4	110,000	122	97	8.5
Total industrial	147,750	176	134	8.4
Total uncommitted	197,487	545	413	8.0

1. Including land.

2. DXS share.

3. At 100% ownership

4. Project estimated cost includes cost of land sales.

Slide 62

DEXUS Property Group 2014 Half Year Results Presentation

MARKET OUTLOOK — OFFICE & INDUSTRIAL Australian market trends in FY15

	Australian office markets	Australian industrial markets
Tenant demand	Lead indicators point to improving demand in FY15	To improve in FY15 in line with confidence & growth in spending
Supply	National supply levels below average	Supply to remain around average levels
Vacancy rates	Prime vacancy rates to remain relatively stable at mildly above average levels	Prime properties to remain relatively low
Buyer demand	To remain strong for quality properties	To remain strong for quality properties
Cap rates	Expected to tighten for prime grade/well covenanted properties	Tightening for prime grade/well covenanted properties
Asset values	Prime grade properties expected to increase due to tighter cap rates	Prime grade properties expected to increase due to tighter cap rates

DEXUS Property Group 2014 Half Year Results Presentation Slide 63

EXCHANGE RATES AND SECURITIES USED IN STATUTORY ACCOUNTS

		31 Dec 2013	30 Jun 2013	31 Dec 2012
	USD	0.8948	0.9275	1.0384
Closing rates for Statement of Financial Position	EUR	0.6485	0.7095	0.7868
	NZD	1.0879	1.1871	1.2608
	USD	0.9219	1.0267	1.0385
Average rates for Statement of Comprehensive Income	EUR	0.6866	0.7941	0.8153
	NZD	1.1345	1.2492	1.2729

	6 months to	12 months to
	31 Dec 2013	30 Jun 2013
Average weighted number of securities1	4,652,599,109	4,714,292,865
Closing number of securities2	4,628,228,426	4,701,957,390

1. Used to calculate distributions per security.

2. Used to calculate FFO per security.

Slide 64

DEXUS Property Group 2014 Half Year Results Presentation

GLOSSARY

Distribution payout policy : Between 70-80% of Funds From Operations (FFO), in line with free cash flow. Funds From Operations (FFO): FFO is often used as a measure of real estate operating performance after finance costs and taxes. DEXUS’s 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 certain tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments, deferred tax expense/benefit, rental guarantees, coupon income and distribution income net of funding costs. Gearing : Gearing is represented by Interest Bearing Liabilities (excluding deferred borrowing costs and including the fair value of cross currency swaps) less cash divided by Total Tangible Assets (excluding derivatives and deferred tax assets) less cash. Covenant gearing is the same definition but not adjusted for cash. Non-cash items : Includes property revaluations, impairment of goodwill, derivative MTM, gain/loss on sale and deferred tax. Operating EBIT : Comprises net operating income, management EBIT and other income less Responsible Entity fees and other expenses paid. Portfolio value : Unless otherwise stated, portfolio value is represented by investment properties, inventories and investments accounted for using the equity method, and excludes cash and other assets. Responsible Entity fees : In this presentation Responsible Entity fees are shown at cost following internalisation in Feb 08. This Responsible Entity fee expense and the corresponding management fee revenue are eliminated in the statutory financial statements as the management business is a wholly owned consolidated entity. Securities on issue : FFO per security is based on the average weighted units on issue prior to the Theoretical Ex-Rights Price (TERP) adjustment. In accordance with AASB133 the weighted average number of securities for earnings (EPS) purposes is adjusted by a factor equal to the security price immediately prior to issue divided by the TERP. Weighted Average Lease Expiry (WALE): A measure in years of the average term to expiry of in-place rent. Includes vacancies.

DEXUS Property Group 2014 Half Year Results Presentation Slide 65

IMPORTANT INFORMATION

• 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, without limitation, any forward looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted by law, DXFM, DEXUS Property Group and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied by any forward looking statements for a range of reasons outside the control of the relevant parties.

• The information contained in this presentation should not be considered to be comprehensive or to comprise all the information which a DEXUS Property Group security holder or potential investor may require in order to determine whether to deal in DEXUS Property Group stapled securities. This presentation does not take into account the financial situation, investment objectives and particular needs of any particular person.

• The repayment and performance of an investment in DEXUS Property Group is not guaranteed by DXFM, any of its related bodies corporate or any other person or organisation.

• This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.

Slide 66

DEXUS Property Group 2014 Half Year Results Presentation