DEXUS - Interim / Quarterly Report 2016

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

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

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

17 February 2016

2016 Half year results presentation

DEXUS Property Group provides its 2016 Half year results presentation.

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

For further information please contact: Investor relations

Media relations

Rowena Causley T: +61 2 9017 1390 Louise Murray T: +61 2 9017 1446 M: +61 416 122 383 M:+61 403 260 754 E: [email protected] E: [email protected]

About DEXUS

DEXUS Property Group is one of Australia’s leading real estate groups, investing directly in high quality Australian office and industrial properties. With $21.1 billion of assets under management, the Group also actively manages office, industrial and retail properties located in key Australian markets on behalf of third party capital partners. The Group manages an office portfolio of 1.8 million square metres located predominantly across Sydney, Melbourne, Brisbane and Perth and is the largest owner 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 32,000 investors from 20 countries. With more than 30 years of expertise in property investment, development and asset management, the Group has a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for its 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

2016 HALF YEAR RESULTS PRESENTATION – 17 FEBRUARY 2016

==> picture [497 x 53] 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 – [presentation title] Slide 1
----- End of picture text -----

Group highlights
Recent transactions

Darren Steinberg, CEO

Proposed IOF merger with DEXUS
Financial results

Alison Harrop, CFO

Capital management
Property portfolio
Third party funds management

Kevin George, EGM Office and Industrial

Craig Mitchell, COO

Development
Trading

Ross Du Vernet, EGM Group Strategy, Transactions & Developments

Market outlook
Summary

Darren Steinberg, CEO

Appendices

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 2

`–` GROUP HIGHLIGHTS Delivering across key earnings drivers in HY16

==> picture [430 x 235] intentionally omitted <==

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

FUNDS MANAGEMENT &
PROPERTY PORTFOLIO TRADING
PROPERTY SERVICES
11% 14.8% $63.3m Sale of Erskine Park secures circa
242,596sqm Achieved a one-year total return of 15.3% increase in FUM total returnone-yearDWPF [2] trading profits delivered $12m trading profitsof FY17 [3]
of space leased [1]
across total
DEXUS portfolio 16.0% Achieved leasing outcomes at
DEXUS Office Partnership three properties which will
annualised unlevered total contribute to trading profits over
property return since inception the next four years
Maintained strength of DEXUS balance sheet with gearing of 29.5%
80% FFO [4] 5% FFO [4] 15% FFO [4]
84% employee engagement score [5]
and a scalable platform that continues to attract talent
----- End of picture text -----

Includes development and trading properties.
DEXUS Wholesale Property Fund (DWPF) return post fees. 3. Before tax.
FFO contribution is calculated before Finance costs and Group corporate costs.
Towers Watson employee engagement survey 2015.

==> picture [235 x 6] intentionally omitted <==

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

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 3
----- End of picture text -----

RECENT PROPERTY TRANSACTIONS `–` North Sydney acquisition & Burwood sale

==> picture [142 x 287] intentionally omitted <==

100 Mount Street, North Sydney

Jointly acquired 50/50 by DEXUS and DWPF
Site cost of $41 million[1]
Total development cost $467.5 million[2]
41,163sqm premium office tower
Project expected to commence in July 2016 with staged completion in late 2018
Completion at an opportune time in the cycle
Building set to benefit from
Improved amenity, including the Sydney Metro line
Limited prime grade options for tenants in North Sydney market
36 George Street, Burwood[3]

==> picture [135 x 77] intentionally omitted <==

Sold for $95 million
44% premium to book value
Achieved a 32% IRR on investment
Excluding acquisition costs. 2. Including site cost.
Owned by DEXUS Office Partnership, in which DEXUS has a 50% interest. DEXUS Property Group – 2016 Half Year Results Presentation and Appendices

Slide 4

IOF MERGER WITH DEXUS

Scrip and Cash Proposal is strongly aligned to DEXUS’s strategy and is a compelling proposition for IOF Unitholders and DEXUS Security holders

Portfolio benefits - combination of two high quality complementary portfolios
Synergy benefits - via improved margins and flexibility as well as capacity to unlock development and repositioning opportunities and increased scope to action portfolio leasing strategies for customers
Efficient transaction reduces value leakage - financially attractive merger that is accretive to Underlying FFO
Capital market benefits – increased global relevance for debt and equity investors seeking exposure to a large, high quality, diversified Australian office property portfolio
Stable, experienced and aligned management team – internalised management team with high level of employee engagement across more than 360 employees

Subject to the approval of IOF Unitholders at a meeting expected to be held on 8 April 2016

ACCC condition satisfied - Australian Competition and Consumer Commission (ACCC) has confirmed that it does not intend to conduct a public review of the Proposal
No facilitation agreement has been reached with Morgan Stanley
Working constructively with IOF Management and Independent Board of IOF to ensure seamless transition of IOF management should the Proposal become effective and be implemented
DEXUS has mobilised an integration team with a strong track record of on-boarding assets

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 5

==> picture [497 x 353] intentionally omitted <==

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

FINANCIAL RESULTS
----- End of picture text -----

DEXUS Property Group – [presentation title]2016 Half Year Results Presentation and Appendices Slide 6

`–` FINANCIAL RESULTS Key financial metrics

Key financial performance metrics 31 Dec 2015 31 Dec 2014 Change	Key financial performance metrics 31 Dec 2015 31 Dec 2014 Change	Key financial performance metrics 31 Dec 2015 31 Dec 2014 Change	Key financial performance metrics 31 Dec 2015 31 Dec 2014 Change
Adjusted Funds from Operations (AFFO)1 $m 230.7 188.7 22.3% Distribution per security cents 23.05 19.68 17.1% Statutory Net profit $m 797.5 257.8 209.3%
Distribution per security	cents	23.05	19.68
Statutory Net profit	$m	797.5	257.8

Other key metrics 31 Dec 2015 30 Jun 2015 Change
Gearing2,3 29.5% 28.5% +1.0ppt NTA per security $7.25 $6.68 8.5%

Business contributions to HY16 FFO 31 Dec 2015 31 Dec 2014 Change
Underlying FFO4 $m 260.6 240.3 8.4% Trading profits (net of tax)5 $m 63.3 18.1 249.7%
Funds from Operations (FFO) $m 323.9 258.4 25.3%
FFO per security cents 33.4 28.5 17.1%

AFFO is calculated in line with the Property Council of Australia definition and comprises PCA FFO and adjusted for: maintenance capex, incentives (including rent free incentives) given to tenants during the period and other items which have not been adjusted in determining FFO. Refer to slide 42 for a detailed breakdown.
Adjusted for cash and for debt in equity accounted investments.
Pro-forma gearing excludes the proposed merger with IOF, which would increase gearing by a further 4ppt. 4. ‘Underlying’ FFO contribution excludes Trading profits (net of tax). 5. Trading profits generated less associated FFO tax expense.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 7

`–` FINANCIAL RESULTS Funds From Operations

	31 Dec 2015 $m	31 Dec 2014 $m	Change $m	Change %
Office property FFO 272.3 262.8 Industrial property FFO 52.5 52.0			9.5 3.6% 0.5 1.0%
Total property FFO 324.8 314.8 Management operations1 18.9 19.4 Group corporate (16.0) (14.8) Net Finance costs (66.9) (78.6) Other (0.2) (0.5)			10.0 3.2%
			(0.5) 2.6%
			(1.2) 8.1% 11.7 14.9%
Other			0.3	60.0%
Underlying FFO2 Trading profits (net of tax)3	260.6 63.3	240.3 18.1	20.3 45.2	8.4% 249.7%
FFO	323.9	258.4	65.5	25.3%
Adjusted Funds from Operations (AFFO)	230.7	188.7	42.0	22.3%
Distribution payout (% AFFO) 96.7% 94.4% Distribution 223.1 178.2			2.3pts 2.4% 44.9 25.2%

‘Management Operations’ income includes Development management fees.
‘Underlying’ FFO excludes Trading profits (net of tax).
Trading profits generated less associated FFO tax expense.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 8

`–` FINANCIAL RESULTS Management Expense Ratio (MER) and Return on Equity

Gross MER 31 Dec 2015 $m 31 Dec 2014 $m Group corporate (16.0) (14.8) Asset management (4.7) (4.6) A. Total corporate & AM (20.7) (19.4) B. Closing FUM (balance sheet FUM only) 10,467 9,102 Gross MER = 2A/B 40bp 43bp C. Total closing FUM 21,053 18,338 Gross MER (on total FUM) 2A/C 20bp 21bp HY16 MER down 3bps from HY15 FY13 FY14 FY15 3yr Avg (FY13-FY15) HY162 Return on Equity 11.2% 6.7% 11.5% 9.8% 12.0% Return on Equity1 67bps 54bps 53bps 50bps 49bps 43bps 41bps 40bps 20 25 30 35 40 45 50 55 60 65 70 FY12 HY13 FY13 HY14 FY14 HY15 FY15 HY16	Gross MER 31 Dec 2015 $m 31 Dec 2014 $m Group corporate (16.0) (14.8) Asset management (4.7) (4.6) A. Total corporate & AM (20.7) (19.4) B. Closing FUM (balance sheet FUM only) 10,467 9,102 Gross MER = 2A/B 40bp 43bp C. Total closing FUM 21,053 18,338 Gross MER (on total FUM) 2A/C 20bp 21bp HY16 MER down 3bps from HY15 FY13 FY14 FY15 3yr Avg (FY13-FY15) HY162 Return on Equity 11.2% 6.7% 11.5% 9.8% 12.0% Return on Equity1 67bps 54bps 53bps 50bps 49bps 43bps 41bps 40bps 20 25 30 35 40 45 50 55 60 65 70 FY12 HY13 FY13 HY14 FY14 HY15 FY15 HY16
	p

	54bps 53bps
	50bps 49bps
	43bps
	41bps 40bps




	FY15 3yr Avg (FY13-FY15) HY162 11.5% 9.8% 12.0% FY12 HY13 FY13 HY14 FY14 HY15 FY15 HY16
FY13 FY14
Return on Equity 11.2% 6.7%

Return on Equity is calculated as the growth in NTA per security plus the distribution paid/payable per security divided by the opening NTA per security. 2. Return on equity for the six months ended 31 December 2015.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 9

– CAPITAL MANAGEMENT HY16 progress

==> picture [497 x 309] intentionally omitted <==

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

FY16 focus HY16 progress
Improve diversification and length of Debt duration remains strong at 5.2 years
the debt profile Increased diversification of debt facility mix
Maintain an average cost of debt Achieved 4.9% average cost of debt in HY16
of circa 4.9% in FY16 FY16 cost of debt expected to remain circa 4.9%
Maintain conservative gearing Gearing [1] of 29.5% at 31 December 2015
1. 1. Adjusted for cash and for debt in equity accounted investments at 31 December 2014. Pro-forma gearing is Adjusted for cash and for debt in equity accounted investments and excludes the proposed IOF merger, which would increase gearing by a further 4ppt. 33.3% post the acquisition of Lakes Business Park, Botany.
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 10

`–` CAPITAL MANAGEMENT HY16 update

$90m of Medium Term Notes issued via reverse enquiry at an average duration of nine years

Key metrics Gearing (look-through)1 Cost of debt2	31-Dec-15 29.5% 4.9%	30-Jun-15 28.5% 5.2%	Change 1 ppt 30 bps
Duration of debt	5.2 years	5.7 years	0.5 yrs
Hedged debt (ex caps)3	64%	69%	5 ppt
S&P/Moody’s credit rating	A-/A3	A-/A3

DEXUS bought back 2.9m securities at pricing ranging from $7.055-$7.200
On-market securities buyback was suspended on 7 December 2015 as a result of entry into the process agreement for the IOF Proposal

==> picture [461 x 153] intentionally omitted <==

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

Debt maturity profile Diversified mix of facilities
1,400 144A 8%
1,200
1,000 USPP 24% Facilities 46%Bank
800
600
400
200
0
Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Jun-20+
MTN 19%
Capital markets CPA MTNs Bank
Commercial
1. Adjusted for cash and for debt in equity accounted investments and excludes the proposed merger with IOF, which would increase gearing by Paper 3%
----- End of picture text -----

Debt maturity profile

Adjusted for cash and for debt in equity accounted investments and excludes the proposed merger with IOF, which would increase gearing by a further 4 ppt.
Weighted average across the period, inclusive of fees and margins on a drawn basis.
Average for the period. Hedged debt (including caps) was 73% for six months to 31 December 2015 and 76% for 12 months to 30 June 2015.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 11

PROPERTY PORTFOLIO

DEXUS Property Group – [presentation title]2016 Half Year Results Presentation and Appendices Slide 12

`–` PROPERTY PORTFOLIO Developments and Sydney portfolio drive returns

Returns for the 12 months to 31 December 2015

14.8%	16.7%
Office portfolio one-year total return	Industrial portfolio one-year total return1
HY16 valuation uplifts
Office portfolio values	Industrial portfolio values
up $528.0m or 6.4%	up $5.7m or 0.3%
(up $635.7m for the 12 months)	(up $29.7m for the 12 months)

Developments boosted total returns, offsetting Perth market softness
Sydney CBD was the strongest performing portfolio, followed by the non-CBD markets including Parramatta
Disposals of 36 George Street, Burwood (stabilised) and 40 Market Street, Melbourne (trading) contributed 40 basis points to portfolio total return

Office portfolio total return composition

==> picture [439 x 137] intentionally omitted <==

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

21.4%
19.7%
5.2% 15.5% 14.8%
5.8%
11.5% 11.0% 8.4%
8.4% 6.5%
15.4% 13.2% 6.8% 6.6% 6.8%
10.8%
6.6% 8.0% 6.9% 7.9%
4.4% 3.9%
-2.2% -0.1%
Development Sydney CBD Non-CBD Total DEXUS Brisbane CBD Melbourne Canberra Adelaide CBD Perth CBD
Office Office Office Office CBD Office Region Office Office Office
Portfolio
-8.7%
-15.5%
Capital return Income return Total return
----- End of picture text -----

Primarily driven by realised gains on industrial trading properties.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 13

==> picture [497 x 369] intentionally omitted <==

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

–
PROPERTY PORTFOLIO 40 properties independently valued in the period
5 Martin Place, Sydney 175 Pitt Street, Sydney 1 Farrer Place, Sydney 2-4 Military Rd, Matraville
DXS’s 25% interest up $29.6m DXS’s 50% interest up $28.4m DXS’s 50% interest up $112.8m DXS’s 100% interest up $5.4m
or 27.0% to $139.0m or 20.7% to $166.0m or 15.7% to $833.0m or 9.4% to $62.9m
383-395 Kent Street, Sydney 385 Bourke Street, Melbourne 240 St Georges Terrace, Perth Knoxfield Industrial Estate, VIC
DXS’s 100% interest up $33.6m DXS’s 50% interest up $21.1m DXS’s 100% interest down $80.4m DXS’s 100% interest up $3.1m
or 15.0% to $257.5m or 10.4% to $225.0m or 16.7% to $400.0m or 7.5% to $44.3m
DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 14
----- End of picture text -----

`–` PROPERTY PORTFOLIO Cap rates expected to tighten further

Capitalisation rates
	31 Dec 2015	Change from
		30 Jun 2015
DEXUS Office	6.30%	41bps
DEXUS Industrial	7.56%	21bps
Total DEXUS portfolio	6.50%	38bps

==> picture [244 x 131] intentionally omitted <==

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

Average Sydney CBD prime yields vs bond rates
% Syd CBD Office 10 year bond
10.0
8.0
6.0
4.0
2.0
0.0
Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec- Dec-
95 97 99 01 03 05 07 09 11 13 15
----- End of picture text -----

Outlook

Investment demand expected to remain solid as investors seek secure yields
Forecast Prime cap rates to tighten a further 12.5 to 25 basis points
Value growth positive but aligning more with income growth
Pricing supported by low interest rate yields
Current cap rate to bond spread is 2.6% versus 10-year average of 1.9%
Driven by realised gains on industrial trading properties.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 15

– PROPERTY PORTFOLIO HY16 progress

==> picture [468 x 178] intentionally omitted <==

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

FY16 focus HY16 progress
Maintain >95% occupancy in office portfolio On target to achieve 95% occupancy at end FY16
FY17 office lease expiries reduced
Reduce FY17 office lease expiries to 10.0%
from 12.7% to 11.7%
Expect flat like-for-like income growth across (1.4)% like-for-like income movement
combined DEXUS portfolio across the combined portfolio
Continue to focus on reducing incentives and Lower contribution of effective deals, marginally
undertake effective leasing deals increased office portfolio incentives
----- End of picture text -----

==> picture [497 x 96] intentionally omitted <==

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 16

– PROPERTY PORTFOLIO Office: Leasing[1] progress on key properties

==> picture [465 x 260] intentionally omitted <==

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

Waterfront Place, Brisbane 309-321 Kent Street, Sydney 45 Clarence Street, Sydney
7 leases over 15,286sqm, 12 leases over 7,006sqm,
increasing occupancy [2] to 92.3% increasing occupancy [2] to 98.6%
10 Eagle Street, Brisbane Grosvenor Place, Sydney
6 leases over 5,638sqm increasing occupancy [2] 12 leases over 6,797sqm, 13 leases over 6,356sqm,
from 91.1% at acquisition to 95.6% increasing occupancy [2] to 91.1% increasing occupancy [2] to 83.6%
----- End of picture text -----

Including Heads of Agreement.
Occupancy by area.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 17

`–` PROPERTY PORTFOLIO Office: Leasing transaction volumes up

==> picture [467 x 111] intentionally omitted <==

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

97,935sqm
Total office space leased [1]
198 leasing transactions
53 renewals 131 new deals 14 development deals
across 23,175sqm across 70,856sqm across 3,904sqm
----- End of picture text -----

Take-up of fitted-suites has been strong across the Sydney CBD Prime grade portfolio

==> picture [159 x 111] intentionally omitted <==

==> picture [150 x 111] intentionally omitted <==

==> picture [150 x 112] intentionally omitted <==

Including Heads of Agreement.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices

Slide 18

`–` PROPERTY PORTFOLIO Office: Consistent portfolio performance

==> picture [407 x 264] intentionally omitted <==

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

OCCUPANCY reflects 94.1%
expected tenant movements (June 2015: 95.3%)
17.2% Average incentives (FY15: 15.0%)
Holding INCENTIVES
O Secured 62 effective deals
F
4.4 years
Maintaining WALE
F (FY15: 4.3 years)
I
RETENTION as forecast 56% (FY15: 61%)
C
E LIKE-FOR-LIKE INCOME 1.5% Face
as forecast (0.3)% Effective
RE-LEASING SPREADS 1.3% Face
in line with incentive changes (2.7)% Effective
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 19

`–` PROPERTY PORTFOLIO Office leasing improves expiry profile

Active approach to leasing focused on maximising cash flow
Reduced FY19 expiries from 20.0%[1] to 16.1%, maintaining Sydney exposure to expected FY18-20 upside
Continued activity from smaller space users for shorter-term leasing deals
Expectation that leases can be recalibrated on better terms in an improved market in FY18-20

==> picture [450 x 167] intentionally omitted <==

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

FY19 Key leasing risks
Woodside, 240 St Georges (5.1%)
FY17 Key leasing risks Lend Lease, The Bond (1.7%)
18% Cover-MoreIntern’l SOS, 45 Clarence (0.4%), Victoria Cross (0.4%) HWT, 150 Southgate (1.4%)
SA Govt, 11 Waymouth (0.4%) 16.1%
16%
12.7% [1] FY18 Key leasing risks
14% VIC Govt, 8 Nicholson (1.6%)
Insurance Australia, 46 Colins (0.6%)
11.7% Carnival, Victoria Cross (0.5%) 11.5%
12%
10.5%
10% End FY16 target 9.4%
8%
5.9% 8.8% [1]
6%
4% 2.8%
2%
0%
Vacant FY16 FY17 FY18 FY19 FY20 FY21
----- End of picture text -----

Note: Key leasing risks boxes represent tenant; property; and percentage of office income.

As at 30 June 2015.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 20

– PROPERTY PORTFOLIO Industrial: Leasing re-setting portfolio

==> picture [467 x 260] intentionally omitted <==

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

144,661sqm
Total industrial space leased [1]
47 leasing transactions
19 renewals 28 new deals
across 15,901sqm across 128,760sqm
25 Distribution Drive,
Whicker Street, Gillman 2-4 Military Road, Matraville 2 Alspec Place, Eastern Creek
Laverton North
Natures Dairy 15,662sqm 3 leases 18,017sqm, increasing Fedex 18,013qm, increasing Toll 16,915sqm, increasing
whole building occupancy [2] to 76.1% occupancy [2] to 100.0% occupancy [2] to 100.0%
----- End of picture text -----

Including Heads of Agreement. 2. By area. DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 21

– PROPERTY PORTFOLIO Industrial: Leasing drives occupancy improvement

==> picture [407 x 274] intentionally omitted <==

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

93.4%
OCCUPANCY increased
I
(June 2015: 92.4%)
N
10.1% Average incentives (FY15: 10.8%)
INCENTIVES reduced
D Secured 17 effective deals
U
WALE increased 4.6 years
S (FY15: 4.0 years)
T
RETENTION as forecast 32% (FY15: 53%)
R
I LIKE-FOR-LIKE INCOME (4.9)% Face
as forecast (6.8)% Effective
A
L RE-LEASING SPREADS in linewith over-rented position 0.3% Effective(3.0)% Face
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 22

THIRD PARTY FUNDS MANAGEMENT

==> picture [497 x 53] intentionally omitted <==

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

DEXUS Property Group – [presentation title]2016 Half Year Results Presentation and Appendices Slide 23
----- End of picture text -----

– THIRD PARTY FUNDS MANAGEMENT HY16 progress

HY16 progress

FY16 focus HY16 progress Secure pre-commitments for third party Pre-commitments secured at Gateway in Sydney, development projects and Quarry at Greystanes Deliver on third party clients’ DWPF settled on acquisition of Waterfront Place investment objectives and divested three non-core properties Drive performance in the third party portfolios Achieved an average one-year total return through active leasing of 15% across all funds

==> picture [497 x 138] intentionally omitted <==

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 24

– THIRD PARTY FUNDS MANAGEMENT Delivering on clients’ objectives

DWPF DEXUS Office Partnership outperformed achieved a 16.0% p.a. benchmark over all unlevered property periods return since inception

Third party funds under management increased 11%[1] Leased $508m 193,229sqm Valuation uplift across platform[2] of space across platform[2] ($711m over the past 12 months) $2.1bn[3] $413m Development pipeline equity raised across ($1.5bn remaining platform[2] spend[3] )

Growth of third party funds platform

==> picture [217 x 136] intentionally omitted <==

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

12
$10.6bn
10
+86%
8
6 $5.7bn
4
2
0
Jun-12 Dec-15
DWPF Australian Mandate US Mandate Capital Partners
----- End of picture text -----

DWPF performance against benchmark

	Total return (post fees) DWPF Benchmark4	One year 14.8% 12.7%	Three years 10.8% 10.2%	Five years 10.3% 9.6%
	Variance	+2.1%	+0.6%	+0.7%

Compared to 30 June 2015.
Total third party funds management platform.
Includes $718m uncommitted third party development pipeline.
Mercer IPD Post Fee Net Asset Weighted Index (Net Return, Net Asset weighted).

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 25

`–` THIRD PARTY FUNDS MANAGEMENT Management operations[1] profit

Management operations profit has increased from additional capital partners and expanded business
Annuity-style revenue stream
No performance fees
Alignment of interests via DEXUS co-ownership in direct properties

==> picture [445 x 173] intentionally omitted <==

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

Circa $45m
$37.9m
$27.9m
$20.8m
$17.9m
FY12 FY13 FY14 FY15 FY16
Actual Forecast
----- End of picture text -----

Funds management and property services (including development management fees).

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 26

DEVELOPMENT AND TRADING

==> picture [497 x 53] intentionally omitted <==

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

DEXUS Property Group – [presentation title]2016 Half Year Results Presentation and Appendices Slide 27
----- End of picture text -----

==> picture [468 x 175] intentionally omitted <==

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

–
DEVELOPMENT AND TRADING Significant progress on pipeline
FY16 focus HY16 progress
Deliver key office developments in Sydney, Perth Final PC reached at
and Brisbane 5 Martin Place, Sydney and Kings Square, Perth
Constructing industrial facilities for Toshiba,
Progress industrial partnership developments
Reece Plumbing and Kathmandu
Progress the high priority opportunities in the Announced sale of Erskine Park and new priority
trading pipeline trading projects
----- End of picture text -----

==> picture [497 x 156] intentionally omitted <==

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 28

`–` DEVELOPMENT DEXUS pipeline

==> picture [468 x 279] intentionally omitted <==

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

$3.2bn
Group development pipeline
$1.1bn $2.1bn
DEXUS portfolio Third Party Funds
Refer to slide 63 for
$865m $268m full breakdown of
committed projects uncommitted projects third party
development pipeline
$551m Refer to slide 61 for full breakdown of
remaining spend DEXUS development pipeline
5.7% of balance sheet FUM allocated to development,
trading and value-add at 31 December 2015
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 29

– TRADING New priority projects enhance trading pipeline from FY17 Trading profit track record from FY12 to date 8 $146.8m 23.5%[1] properties of trading profits[2] average unlevered developed or repositioned and sold delivered in 4 years project IRR achieved Trading profits in progress 6 Approx. $110m from FY17-20 aggregate trading profits[2] to be trading pipeline priority projects delivered over the next 4 years enhanced Priority projects Sector Trading strategy Status 57-65 Templar Road, Erskine Park Industrial Develop and lease Exchanged 32 Flinders Street, Melbourne Car park Pursuing residential re-zoning Progressing Lakes Business Park, Botany (South) Industrial Pursuing residential re-zoning Progressing 105 Phillip Street, Parramatta Office Develop and lease Secured HoA with Government Property NSW 79-99 St Hilliers Road, Auburn Industrial Rezone, lease and develop Secured HoA with Bunnings for warehouse and adjoining office 12 Frederick Street, St Leonards Mixed use Rezone, lease and develop Secured HoA with major tenant for long term lease

Calculated as an arithmetic average. 2. Pre-tax.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 30

MARKET OUTLOOK

==> picture [497 x 53] intentionally omitted <==

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

DEXUS Property Group – [presentation title]2016 Half Year Results Presentation and Appendices Slide 31
----- End of picture text -----

`–` MARKET OUTLOOK Nationally Prime space is benefiting from flight to quality

Net absorption in Prime buildings is far exceeding take-up in secondary
Flight to quality will accelerate take-up of new supply in FY16
Vacancy rates are at or below the long term average in Sydney and Melbourne
Significant new supply has been added in Brisbane and Perth over the past six months

==> picture [200 x 144] intentionally omitted <==

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

Net absorption by grade (CY15)
‘000sqm Prime Secondary
250
200
150
100
50
0
-50
-100
Syd CBD Melb CBD Bris CBD Perth CBD
----- End of picture text -----

Current vacancy vs long term average

==> picture [200 x 125] intentionally omitted <==

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

Jun-15 Dec-15 20yr average
25% 23.5%
20% 17.4%
15.2% 16.1%
15%
10.1% 10.0%
7.8% 7.8%
10%
5%
0%
Syd CBD Melb CBD Bris CBD Perth CBD
----- End of picture text -----

Source: JLL Research, DEXUS Research and MSCI-IPD.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 32

`–` MARKET OUTLOOK Sydney CBD vacancy to tighten quickly

DEXUS expectations

==> picture [497 x 309] intentionally omitted <==

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

428,000sqm of 299,000sqm of 215,000sqm of Flight to quality Vacancy to
supply withdrawals net absorption above average take increase in FY16
over the next 3 years over the next 3 years over the next 3 years up in prime space Barangaroo effect
� 8.5% of stock, around � 20% to be withdrawn � Comparable with 20 � Past 12 months � 259,000sqm of supply
1.5 times average for Sydney Metro year historic average +208,000 net (81.3% committed)
� Barangaroo � 47% of withdrawals net absorption of absorption of Prime � Limited supply
completion in FY17 will be permanent 87,000sqm p.a. � Includes +63,000sqm FY17-18 will see
in supply in FY18followed by decline � Withdrawal rate higher than previous (ex Tech Wreck & GFC) (50,000sqm p.a. inc Tech Wreck & net movement (secondary to prime) vacancy quickly reduce
decade average GFC)
(~40,000sqm p.a.)
‘000sqm
FY18
300 10%
8.6% Vacancy
200 rate
7.8% 259 6.7% 5.9% 6% below
100 120 Total completions 6.0%
36 49
0 2%
-138 -103 -132 -2-645 Net demand
-100
Stock Withdrawal
-100 -2%
-90
-200 Vacancy (RHS)
-300 -6% Vacancy forecast at
FY15 FY16 FY17 FY18 Feb-15 (RHS)
Source: DEXUS Research, JLL Research.
DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 33
----- End of picture text -----

`–` MARKET OUTLOOK Sydney withdrawals to increase due to future infrastructure

==> picture [394 x 260] intentionally omitted <==

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

Metro rail extension
Light rail Victoria Cross Station 16,617sqm
Westconnex (road) 189 Miller Street 3,123
181 Miller Street 12,074
Proposed harbour crossing (road) 194 Miller Street 1,420
Martin Place Station 45,710sqm
55 Hunter Street -13,644
5 Elizabeth Street -8,384
12 Castlereagh Street -7,341
39 Martin Place -16,341
Pitt Street Station 13,021sqm
175 Castlereagh Street -11,848
125 Bathurst Street -670
131 Bathurst Street -503
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 34

==> picture [497 x 349] intentionally omitted <==

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

SUMMARY
----- End of picture text -----

==> picture [497 x 53] intentionally omitted <==

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

DEXUS Property Group – [presentation title]2016 Half Year Results Presentation and Appendices Slide 35
----- End of picture text -----

`–` SUMMARY Outlook

Key areas of the business are in a strong position

==> picture [421 x 224] intentionally omitted <==

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

PROPERTY PORTFOLIO FUNDS MANAGEMENT &
TRADING
PROPERTY SERVICES
Focus on increasing Organic growth supported by Pipeline enhanced
occupancy >95% $2.1bn development pipeline [1] with priority projects to FY20
80%- 90% FFO [2] 10%-20% FFO [2]
----- End of picture text -----

Remaining spend on development pipeline is $1.5bn, including $718m uncommitted projects. 2. FFO contribution is calculated before Finance costs and Group Corporate costs.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 36

SUMMARY

Lower for longer domestic interest rate cycle to continue in an uncertain economic environment
Office market fundamentals in Sydney expected to continue to improve
Investment demand strength retained as investors seek the defensive nature of property
Maintain market guidance[1] for the 12 months ending 30 June 2016
FFO per security growth of 5.5-6.0%
Payout in line with free cash flow to deliver growth in distribution per security of 5.5-6.0%
Barring unforeseen circumstances guidance is supported by the following assumptions: circa 1% like-for-like income growth across the DEXUS Office portfolio and circa 7% decline in like-for like income across the DEXUS Industrial portfolio, weighted average cost of debt of 4.9%, trading profits of $63m net of tax, Management Operations FFO of circa $45m (including third party development management fees), and excluding the IOF Proposal and any further transactions.

==> picture [187 x 293] intentionally omitted <==

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 37

==> picture [497 x 348] intentionally omitted <==

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

APPENDICES
----- End of picture text -----

DEXUS Property Group – [presentation title]2016 Half Year Results Presentation and Appendices

Slide 38

Group highlights
DEXUS today
IOF merger with DEXUS
Financial results
Reconciliation to statutory net profit
Underlying FFO growth drivers
Management operations profit
Cash flow reconciliation
Interest reconciliation
— Change in net tangible assets & revaluations
— Direct property portfolio movements
Capital management
HY16 overview
— Interest rate hedging profile
Portfolio results
Office portfolio
Industrial portfolio
Office & Industrial portfolio sustainability metrics
— DEXUS developments completed and pipeline
— DEXUS committed developments & portfolio capex
— DEXUS uncommitted developments
Third party funds management development pipeline
Transactions
Trading versus non-trading opportunities
Trading
Market outlook
Exchange rates & securities used in statutory accounts
Glossary
Important information

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 39

`–` GROUP HIGHLIGHTS DEXUS today

==> picture [397 x 265] intentionally omitted <==

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

DEXUS THIRD PARTY FUNDS TOTAL
PORTFOLIO PORTFOLIO GROUP PORTFOLIO
$10.5bn $10.6bn $21.1bn
Management of a diverse
DEXUS owned and managed
portfolio of office, industrial and
portfolio of Australian office
retail properties on behalf of
and industrial properties
third party partners and funds
OFFICE: $8.8bn OFFICE: $5.3bn OFFICE: $14.1bn
INDUSTRIAL: $1.7bn INDUSTRIAL: $1.2bn INDUSTRIAL: $2.9bn
RETAIL: $4.1bn RETAIL: $4.1bn
DEVELOPMENT PIPELINE (future growth )
DEVELOPMENT: $1.1bn DEVELOPMENT: $2.1bn DEVELOPMENT: $3.2bn
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 40

`–` IOF MERGER WITH DEXUS Background

Proposal to merge with Investa Office Fund (IOF) arose as result of an unsolicited approach from the advisors to the Independent Board Committee (IBC) of Investa Listed Funds Management Limited (ILFML)
Following completion of due diligence, on 18 December 2015 DEXUS and ILFML each announced that they had entered into a binding Implementation Agreement (MIA) under which DEXUS will seek to acquire all of the units in IOF
The IBC of ILFML has resolved that they intend to unanimously recommend that IOF Unitholders vote in favour of the Proposal, in the absence of a superior proposal and subject to an Independent Expert concluding that the Proposal is in the best interests of IOF Unitholders
Implementation will be via an IOF informal trust scheme and requires, among other things, the approval of IOF Unitholders at a meeting on 8 April 2016

	Proposed key timeline of events First judicial advice hearing	8 March 16
	NOM despatched to IOF Unitholders	9 March 16
	Cut off for receipt of proxies	10am, 6 April 16
	IOF Unitholder meeting to approve the Proposal	10am, 8 April 16
	Second judicial advice hearing	12 April 16
	Effective date	13 April 16
	Implementation date	29 April 16

==> picture [80 x 122] intentionally omitted <==

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 41

`–` FINANCIAL RESULTS Reconciliation to statutory net profit

The table below shows the breakdown of DEXUS’s FFO and AFFO which is in accordance with the PCA definition outlined in the PCA white paper “Voluntary best practice guidelines for disclosing FFO and AFFO”

Reference	Item	31 Dec 2015	31 Dec 2014
		$m	$m
Statutory AIFRS net profit after tax		797.5	257.8
A Investment property and inventory
A2	(Gains)/losses from sales of investment property	(15.0)	1.3
A3	Fair value gain on investment property	(533.7)	(109.3)
C Financial instruments
C2	Fair value (gain)/loss on the mark-to-market of derivatives	(21.2)	20.2
D Incentives and rent straight-lining
D1	Amortisation of fit out incentives	22.8	21.1
D2	Amortisation of lease fees	3.9	3.0
D4	Amortisation of rent-free periods	23.5	19.3
D5	Rent straight-lining	(4.0)	(4.5)
E Tax
E1	Non-FFO deferred tax benefits	7.9	9.0
F Other unrealised or one-off Items
F1	Recycling of foreign currency translation reserve (FCTR)	-	2.1
F2	Other unrealised or one-off items	42.2	38.4
FFO		323.9	258.4
G Maintenance and leasing capex
G1	Maintenance capital expenditure	(34.8)	(20.3)
G2	Cash incentives and leasing costs paid	(27.7)	(21.9)
G3	Rent free incentives	(30.7)	(27.5)
AFFO		230.7	188.7
Distribution		223.1	178.2
AFFO Payout ratio (Distribution/AFFO)		96.7%	94.4%

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 42

– FINANCIAL RESULTS Underlying FFO growth drivers

==> picture [459 x 291] intentionally omitted <==

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

$m 8.4% growth
280
0.3
11.7
260
10.0 1.2
0.5
240
260.6
220 240.3
200
HY15 Underlying Property portfolio Mgmt operations Net finance costs Corporate costs Other HY16 Underlying
FFO FFO FFO
Property portfolio FFO Management operations Financing Other
‘Management Operations’ income includes Development management fees.
DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 43
----- End of picture text -----

`–` FINANCIAL RESULTS Management operations profit

Management operations profit

HY16 ($m)	Property Mgmt	Funds Mgmt	Mgmt Operations	Dev’t & Trading2
Revenue	26.8	21.8	48.6	207.7
Operating expenses1	(21.4)	(8.3)	(29.7)	(3.0)
Cost of sales—trading	-	-	-	(114.3)
Total operating expenses	(21.4)	(8.3)	(29.7)	(117.3)
HY16 net profit	5.4	13.5	18.9	90.4
HY16 margin	20%	62%
HY15 margin	30%	59%

Comprises property management salaries of $8.0m and management operations expenses of $13.4m. 2. Net profit from Development & Trading comprises $90.4m from trading ($63.3m net of tax).

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 44

`–` FINANCIAL RESULTS Cash flow reconciliation

		31 Dec 2015	31 Dec 2014
		$m	$m
Cash flow from operating activities		438.5	352.6
add back:	payment for inventory acquisition and capex	22.4	21.6
less:	cost of sale of inventory	(114.3)	(84.0)
add:	proceeds from sale of Rosebery received in advance	1.7	(12.1)
add:	receivable from sale of Mascot	5.0	-
add:	tax on sale of 88 Shortland Street	4.5	-
less:	tax on trading profits not yet paid	(27.1)	(2.3)
add back:	capitalised interest	3.7	3.2
	adjustments for equity accounted distributions	(38.2)	(53.4)
	other working capital movements	4.5	8.4
Adjusted cash flow from operating activities		300.7	234.0
Rent free income		27.7	27.5
Depreciation and amortisation	(incl. deferred borrowing costs)	(4.5)	(3.1)
FFO		323.9	258.4
Less: maintenance capex and incentives		(93.2)	(69.7)
AFFO		230.7	188.7
less: gross distribution		(223.1)	(178.2)
Cash surplus		7.6	10.5

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 45

`–` FINANCIAL RESULTS Interest reconciliation

	31 Dec 2015	31 Dec 2014
	$m	$m
Total statutory finance costs	73.3	126.3
Less: unrealised interest rate swap MTM loss1	(10.3)	(51.2)
Add: finance costs attributable to investments accounted for using the equity method	4.4	4.0
Net finance costs for FFO	67.42	79.1
Add: interest capitalised	3.9	3.2
Gross finance costs for cost of debt purpose	71.3	82.3

Net fair value loss of interest rate swap of $16.5m (per note 2) includes realised interest rate swap expense of $6.2m and unrealised interest rate swap MTM loss of $10.3m.
Excludes interest income of $0.5m.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 46

`–` FINANCIAL RESULTS Change in net tangible assets and revaluations

$m $ps Opening net tangible assets (30 Jun 15) 6,485 6.68 Revaluation of real estate 534 0.55 Retained earnings1 101 0.10 Amortisation of tenant incentives2 (46) (0.05) Buyback of equity (20) - Fair value movements3 (33) (0.03) NTA changes in comprehensive income 536 0.57 Closing net tangible assets (31 Dec 15) 7,021 7.25	Investment portfolio Valuation change $m Cap rate % % of portfolio
	DEXUS office portfolio 528 6.30 84% DEXUS Industrial portfolio 6 7.56 16%
	Total DEXUS portfolio 534 6.50

Represents HY16 FFO less distributions.
Includes rent straight-lining.
Primarily includes fair value movements of derivatives and interest bearing liabilities, deferred tax, gain from sale of investment properties, movement in reserves and other.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 47

`–` FINANCIAL RESULTS Direct property portfolio movements

Office1 $m Industrial1 $m	DEXUS total1 $m	Trading assets2 (inventory)
Opening direct property 7,822 1,711 Lease incentives 3 52 6 Maintenance capex 25 10 Acquisitions 347 - Transfer to inventories 4 - - Developments 5 116 43 Disposals 6 (33) (120) Revaluations 528 6 Amortisation (45) (5) Rent straightlining 3 1	9,533 58 35 347 - 159 (153) 534 (50) 4	275 - - - 80 22 (114) - - -
Closing balance at the end of the period 8,815 1,652	10,467	263

Includes DEXUS’s share of equity accounted investments.
Assets held by DXO are also included in Office, Industrial and DEXUS total amounts. 3. Includes rent free incentives.
Transfers to inventories are eliminated within the Office, Industrial and DEXUS total amounts. 5. Includes capitalised interest. 6. At book value.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 48

`–` CAPITAL MANAGEMENT HY16 overview

Key metrics	31 Dec 2015	30 June 2015
Total debt1	3,273m	$2,774m
Cost of debt2	4.9%	5.2%
Gearing (look-through)3	29.5%	28.5%
Headroom (approximately)4	$0.4bn	$0.8bn
Debt duration	5.2 years	5.7 years
S&P/Moody’s rating	A-/A3	A-/A3
Covenant gearing (covenant5 <55%)	28.4%	27.2%
Interest cover (covenant5,6 >2.0x)	4.9x	4.8x
Priority debt (covenant5 <30%)	0%	0%

Total debt does not include $183m of debt in an equity accounted investment.
Weighted average for the period.
Adjusted for cash and for debt in equity accounted investments.
Undrawn facilities plus cash. Excluding forward start commitments. 5. As per public bond covenants.
Look-through interest cover is 4.6x.

==> picture [194 x 291] intentionally omitted <==

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 49

`–` CAPITAL MANAGEMENT Interest rate hedging profile

Hedging profile	31 Dec 2015	30 June 2015
Average amount of debt hedged1	73%	76%
Average amount of debt hedged excluding caps	64%	69%
Weighted average interest rate on hedged debt2	3.5%	3.7%
Weighted average fixed & floating rate3	4.9%	5.2%
Weighted average maturity of interest hedges	3.9 years	3.8 years

Hedge maturity profile

==> picture [457 x 132] intentionally omitted <==

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

2,500 8.0%
2,000
6.0%
1,500
4.0%
1,000
2.0%
500
- 0.0%
FY16 FY17 FY18 FY19 FY20
Net fixed debt Interest Rate Caps Interest Rate Swaps Weighted Average Hedge Rate
----- End of picture text -----

Average amount hedged for the period (including caps).
Including fixed rate debt (without credit margin).
Including fees and margins.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 50

`–` PORTFOLIO RESULTS Office portfolio diversification

DEXUS office by asset type

==> picture [103 x 10] intentionally omitted <==

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

DEXUS office by location
----- End of picture text -----

==> picture [453 x 168] intentionally omitted <==

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

ACT 1.1%
Carpark 2.1% Premium SA 1.4% NSW 60.5%
Land 0.1% Grade 37.2%
WA 7.9%
Office Park
2.0%
B Grade 4.5%
QLD 15.8%
A Grade 54.0%
VIC 13.2%
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 51

`–` PORTFOLIO RESULTS Office lease expiry profile at 31 December 2015

==> picture [467 x 189] intentionally omitted <==

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

20%
17.5%
18%
16.1%
16%
14%
11.7% 11.6% 11.8% 11.5%
12% 11.0%
10.7% 10.5%
9.4%
10%
8%
5.9% 5.7%
6%
4%
2.8% 2.5%
2%
0%
Vacant FY16 FY17 FY18 FY19 FY20 FY21
By Income By Area
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 52

`–` PORTFOLIO RESULTS Office lease expiry profiles at 31 December 2015

==> picture [461 x 270] intentionally omitted <==

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

Sydney CBD Office portfolio Sydney Suburban Office portfolio
15% 12.0% 11.5% 11.6%14.0% 12.0% 13.9% 11.9% 12.2% 30% 21.2% 21.8% 22.4% 25.9%
10% 7.3% 5.7% 7.8% 8.5% 20% 12.7% 11.5% 13.3% 11.5%
5% 2.7% 2.8% 10% 5.5% 5.2% 4.9% 3.1% 7.1% 7.7%
0% 0%
Available FY16 FY17 FY18 FY19 FY20 FY21 Available FY16 FY17 FY18 FY19 FY20 FY21
By Income By Area By Income By Area
Brisbane CBD Office portfolio Melbourne CBD Office portfolio
15% 25% 23.7% 21.4%
10.9% 20% 18.4% 17.0% 16.8%
10% 7.7% 14.9%
5% 3.6% 3.8% 3.2% 2.6% 3.3% 3.5% 6.4% 6.4% 4.4% 4.6% 5.1% 6.0% 15%10% 7.8% 9.8% 9.4% 9.3% 8.2% 4.9%
5% 3.2% 3.2%
0% 0%
Available FY16 FY17 FY18 FY19 FY20 FY21 Available FY16 FY17 FY18 FY19 FY20 FY21
By Income By Area By Income By Area
DEXUS Office [1] Value Cap rate Yield Perth CBD Office portfolio
($m) (%) (%)
60%
Sydney CBD 4,482.0 5.8 5.7 50.8% 48.0%
Sydney Suburban 837.8 7.4 7.4 40%
Melbourne CBD 1,129.3 6.6 6.5 20% 9.8% 10.0% 12.3% 13.4%
Brisbane CBD 1,159.5 6.5 6.8 0.7% 0.7% 0.7% 0.9% 2.7% 2.9% 4.1% 4.4%
0%
Perth CBD 699.7 7.0 8.5 Available FY16 FY17 FY18 FY19 FY20 FY21
By Income By Area
----- End of picture text -----

Includes stabilised properties only. Excludes Adelaide and Canberra office properties.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 53

`–` PORTFOLIO RESULTS Office portfolio top 10 tenants

Diversity of office tenants by income

Office tenant
S&P rating
% of income1
Woodside Energy
BBB+ positive
4.0%
Commonwealth of Australia
AAA Stable
3.9%
Wilson Parking Australia
Not rated
3.4%
Rio Tinto
A- negative
2.8%
Commonwealth Bank of Australia
AA- stable
2.6%
State of NSW
AAA negative
2.0%
Deloitte Services Pty Ltd
Not rated
1.7%
Lend Lease Management Services
BBB- stable
1.5%
State Of Victoria
AAA stable
1.3%
The Herald & Weekly Times
1.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

versty o oce tenants by ncome
Other
Tourism
Superannuation
Electricity, gas, water and waste service
Employment Placement and Recruitment Services
Food and beverage manufacturing
Engineering Consultancy Services
Healthcare and social assistance
Investment banks
Rental & Real Estate services
Insurance
Other finance
Construction services
Business Services Other
Metal ore mining
Federal Government
State Government
Accounting services
Banks & building societes
Oil and Gas
Legal services
Information media and telecommunications

31 December 2015 fully leased DEXUS portfolio passing income.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 54

`–` PORTFOLIO RESULTS Industrial portfolio diversification

==> picture [128 x 9] intentionally omitted <==

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

DEXUS industrial by asset type
----- End of picture text -----

==> picture [120 x 9] intentionally omitted <==

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

DEXUS industrial by location
----- End of picture text -----

==> picture [455 x 174] intentionally omitted <==

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

Industrial SA 1.6%
Land 7.6% estate 35.7%
NSW 57.5%
Data centre
3.5%
VIC 36.0%
Business park Distribution
29.1% centre 24.1%
QLD 4.9%
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 55

`–` PORTFOLIO RESULTS Industrial lease expiry profile at 31 December 2015

==> picture [467 x 210] intentionally omitted <==

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

18%
16% 15.4% 15.3%
14% 12.8%
12%
10.2% 10.0%
10% 8.9% 8.9% 8.5% 8.7% 8.6%
7.8%
8%
6.6%
6%
4% 3.1%
1.9%
2%
0%
Available FY16 FY17 FY18 FY19 FY20 FY21
By Income By Area
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 56

– PORTFOLIO RESULTS Industrial lease expiry profiles at 31 December 2015

==> picture [463 x 258] intentionally omitted <==

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

Sydney Industrial portfolio Melbourne Industrial portfolio
20% 19.0% 15% 13.1% 13.5%
15% 15.4% 14.4% 14.1% 10.0% 11.3%10.3%
10.4% 11.3% 10.5% 10.9% 11.8% 10% 7.6% 7.9% 8.5% 8.3% 8.2% 7.4%
10% 8.6%
5% 5.4% 5.4% 3.5% 3.8% 5% 4.4% 4.6% 4.0%
0% 0%
Available FY16 FY17 FY18 FY19 FY20 FY21 Available FY16 FY17 FY18 FY19 FY20 FY21
By Income By Area By Income By Area
Brisbane Industrial portfolio Adelaide Industrial portfolio
40% 33.9% 50% 47.0% 44.7%
40%
30%
20%10%0% 0.0% 7.9% 10.0%0.0% 10.3% 2.9% 4.4% 1.3% 8.2% 10.0% 4.0% 8.9% 7.4% 30%20%10%0% 22.1% 23.9%19.8% 20.0%5.3% 5.2% 0.0% 0.0% 5.8% 6.2% 0.0% 0.0%
Available FY16 FY17 FY18 FY19 FY20 FY21 Available FY16 FY17 FY18 FY19 FY20 FY21
By Income By Area By Income By Area
DEXUS Value Cap rate Yield
Industrial [1] ($m) (%) (%)
Sydney 733.2 7.5 6.6
Melbourne 567.0 7.8 7.4
Brisbane 55.8 7.5 8.1
Adelaide 25.9 11.0 12.8
----- End of picture text -----

Includes stabilised properties only.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 57

`–` PORTFOLIO RESULTS Industrial portfolio top 10 tenants

Diversity of industrial tenants by income

==> picture [466 x 243] intentionally omitted <==

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

Industrial tenant % of income [1]
100%
Other
Wesfarmers Limited 1.2%
90% State Government
AWH 0.6%
Scientific and Technical Services
IBM Australia 0.5% 80%
Postal and courier pick-up and delivery services
Visy Industry Packaging Pty Ltd 0.4% 70% Business Services Other
Blackwoods 0.4% 60% Retailing (non-food)
Information media and telecommunications
Fedex 0.4% 50%
Pharmaceutical wholesaling
Fonterra Co-Operative Group 0.3%
40% Road, rail, water, air and space transport
Toll Transport Pty Ltd 0.3% Construction services
30%
Agility Logistics 0.2% Transport support services
20%
Reece 0.2% Other manufacturing
10% General wholesaling
Warehousing and storage services
0%
----- End of picture text -----

31 December 2015 fully leased DEXUS portfolio passing income.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 58

`–` PORTFOLIO RESULTS Office and Industrial portfolio sustainability metrics

==> picture [470 x 272] intentionally omitted <==

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

DEXUS Office Energy and GHG DEXUS Industrial Energy and GHG
DEXUS NABERS NABERS Emissions Intensity 33.0 Emissions Intensity
office Energy Water 609.0
portfolio average average
8.3
rating rating
133.7
Dec 12 4.7 [1] 3.5 [1] 19.9
379.9
Dec 13 4.8 [1] 3.5 [1]
Dec 14 4.6 [2] 3.5 [2] 76.7 4.3
Dec 15 4.7 [2] 3.8 [2]
37.6% energy intensity reduction 39.6% energy intensity reduction
42.7% emissions intensity reduction 47.4% emissions intensity reduction
Office: NABERS Energy Ratings by Area
6 stars 0 stars FY08 2008 2009 2010 2011 2012 2013 2014 2015 FY08 2008 2009 2010 2011 2012 2013 2014 2015
DEXUS Office Water Intensity DEXUS Industrial Water Intensity3
5.5 stars 0.5 stars 855.4
347.8
5 stars 297.0
1 stars 643.6
4.5 stars 1.5 stars
4 stars 2 stars
24.8% water intensity reduction 17.1% water intensity increase
3.5 stars 2.5 stars
3 stars FY08 2008 2009 2010 2011 2012 2013 2014 2015 FY08 2008 2009 2010 2011 2012 2013 2014 2015
Energy Intensity (MJ/sqm) Scope 1 & 2 GHG Emissions kg CO-e/sqm2 Energy Intensity (MJ/sqm) Scope 1 & 2 GHG Emissions kg CO-e/sqm2
Water Intensity (L/sqm) Water Intensity (L/sqm)
----- End of picture text -----

Note: Data in charts is unaudited.

NABERS ratings on a like-for-like basis.
NABERS ratings on an absolute basis. 3. Water consumption is primarily under the control of tenants, with the increase in 2014 and 2015 due to tenant demand for water at Kings Park Industrial Estate. DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 59

`–` PORTFOLIO RESULTS DEXUS completed developments and pipeline

Pipeline	Building area	Project cost	Yield on cost	Space leased	Completion
	sqm1	A$m2	%	%
Office
5 Martin Place, Sydney, NSW	33,639	111	7.03%	96%3	Sep-15
Kings Square, Perth, WA	53,493	217	8.06%	100%	Nov-15
Total office	87,132	328
Industrial
Supply Network at Quarry, NSW	7,900	15	7.50%	100%	Oct-15
Quarry at Greystanes, NSW	1,831	4	7.20%	100%	Nov-15
Total industrial	9,731	19
Total developments completed	96,863	347

DEXUS development pipeline[6]

FY16 FY17 FY18+ 480 Queen Street, Brisbane[4] $298m[2] ($78m) Existing committed industrial pipeline $213m[2] ($129m) – (including Quarry, Quarrywest, Laverton North, Larapinta, Hemmant) 100 Mount Street, North Sydney $234m[2] ($234m) 105 Phillip Street, Parramatta[5] $120m[2] ($110m) DEXUS Industrial Estate, Laverton North $90m[2] ($67m) Developments committed 180 Flinders Street, Melbourne $154m[2] ($154m) Developments uncommitted 12 Creek Street, Brisbane $24m[2] ($24m)

At 100%.
DEXUS interest in development cost.
5 Martin Place, Sydney office space is 96% committed and retail space is 71% committed.
Practical completion expected in February 2016.
Also included in DEXUS trading pipeline.
Development pipeline shows total estimated project cost and (est. cost to complete). DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 60

`–` PORTFOLIO RESULTS DEXUS committed developments and portfolio capex

Pipeline	Building area	Building area	Project cost	Yield on cost	Leased	Completion due
		sqm1	A$m2,3	%	%
Office
480 Queen Street, Brisbane, QLD		56,754	298	7.0%	100%	Early 2016
105 Phillip Street, Parramatta, NSW4		20,000	120	8.25-8.75%	100%	n/a
100 Mount Street, North Sydney, NSW5		41,163	234	Circa 7.3%	15%	Late 2018
Total office	117,917		652
Industrial
1 Litton Close, Greystanes, NSW		20,489	30	Circa 8.0%	100%	Mid 2016
Quarrywest, Greystanes, NSW		90,580	62	Circa 8.0%	0%	Mid 2018
Quarrywest Toshiba & Specs, Greystanes, NSW		36,375	30	Circa 8.0%	59%	Mid 2016
Kathmandu, Laverton, VIC		25,650	26	Circa 7.4%	100%	Mid 2016
Wrightson Seeds, Laverton, VIC		10,194	12	Circa 7.0%	100%	Mid 2016
Radius Industrial Estate, Larapinta, QLD		22,950	13	Circa 8.7%	0%	Early 2016
1 Anton Road, Hemmant, QLD		66,100	41	Circa 8.5%	0%	Mid 2017
Total industrial	272,338		213
Total developments committed	390,255		865

DEXUS total portfolio capital expenditure	Actual HY16	Estimated FY16
Maintenance capital expenditure	$34.8m		$60-70m
Cash incentives and leasing costs	$30.7m		$60-70m
Total capital expenditure	$65.5m	$120-140m

At 100%.
Including land.
Also in DEXUS trading pipeline.
Acquired post 31 December 2015.
DEXUS interest in development cost. DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 61

`–` PORTFOLIO RESULTS DEXUS uncommitted developments

Pipeline	Building area1	Project est.2,3	Est. cost to	Est. yield on est.
	sqm	$m	completion	project cost %
			$m
Office
180 Flinders Street, Melbourne, VIC	17,143	154	154	6.0-6.5%
12 Creek Street, Brisbane, QLD	5,000	24	24	9.0-9.5%
Total office	22,143	178	178
Industrial
DEXUS Industrial Estate, Laverton North, VIC4	87,443	90	67	7.5-8.0%
Total industrial	87,443	90	67
Total uncommitted	109,586	268	245

At 100%. 2. Including land. 3. DEXUS share.
Stage 3 estimated cost includes cost of land sales and excludes Kathmandu facility which is now committed.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 62

– THIRD PARTY FUNDS MANAGEMENT Development pipeline

==> picture [497 x 325] intentionally omitted <==

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

$2.1bn
Third Party Development [1] Pipeline
$1.35bn $718m
Total committed projects Total uncommitted projects
$732m Uncommitted projects
focused primarily on retail properties
Remaining spend on committed projects
Remaining spend on committed projects in Third Party Funds
Committed projects FY16 FY17 FY18/19
Office - 4 properties $419m
Retail - 6 properties $224m
Industrial - 4 properties $90m
Remaining spend on committed
$732m
Third Party projects
1. Third party funds’ or partners’ share of development spend and including DEXUS third party funds’ or partners’ share of Westfield redevelopments.
DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 63
----- End of picture text -----

TRANSACTIONS

DEXUS acquisitions1	Purchase	Interest	Interest	Cap	Settlement
	price $m			rate	date
193 Mary Street, QLD	7.0		50%	7%	30 Oct 15
100 Mount Street, NSW2	20.5		50%	n/a	Apr 16
Total	27.5

DEXUS divestments	Sale price $m		Interest		Settlement
					date
36 George Street, NSW		47.5		50%	13 Nov 15
57-65 Templar Road, NSW		50.0		100%	Jul 16
Total	97.5

DWPF acquisitions	Purchase	Interest		Cap	Settlement
	price $m			rate	date
193 Mary Street, QLD	7.0		50%	7%	30 Oct 15
100 Mount Street, NSW2	20.5		50%	n/a	Apr 16
Total	27.5

DWPF divestments	Sale price $m		Interest		Settlement
					date
2 Costello Place, NSW		14.8		100%	25 Sep 15
29-41 Lysaght Street, QLD		21.6		100%	14 Dec 15
Cannon Park, QLD		31.5		100%	23 Dec 15
Total	67.9

Note that the acquisition of Waterfront Place was included in reported transaction metrics at DEXUS’s FY15 result. The acquisition settled in October 2015.
Acquired post 31 December 2015.

Other third party Sale price $m Interest Settlement divestments date 36 George Street, NSW 47.5 50% 13 Nov 15 Total 47.5

==> picture [181 x 249] intentionally omitted <==

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 64

– TRANSACTIONS Trading versus non-trading opportunities

==> picture [497 x 325] intentionally omitted <==

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

Origination Acquisitions [1] Balance Sheet Assets
Activity / Reposition Develop Reposition/ Divestment (non
Strategy & Sell & Sell Develop & Sell trading)
Type Trading asset [2] Trading asset [2] Trading asset [2] Investment property
(inventory) (inventory) (transfer to inventory) [3] (no transfer to trading)
� 50 Carrington Street, � Wacol, Brisbane � 32 Flinders Street, � Lumley Centre, NZ
Sydney � Laverton North, Melbourne � 201 Kent Street, Sydney
� 40 Market Street, Melbourne � 105 Phillip Street, � 36 George Street,
Properties Melbourne � Erskine Park, Sydney Parramatta Burwood
� Lakes Business Park � 79-99 St Hilliers, Auburn
(Southern site) � 12 Frederick Street,
St Leonards
� Net profit/loss after tax � Net profit/loss after tax � Net profit/loss after tax � Profit/loss on sale held
in FFO [4] in FFO [4] in FFO [4] in passive trust
Accounting
Treatment � Transferred at fair (DIT/DOT/DDF)
value � Reflected in NTA
� Not recognised in FFO
1. Assets or land acquired externally with the intention to sell for profit. 3. Intention changed to significantly participate in profit from change of use (residential,
2. Activities are undertaken in a tax paying entity (DXO). mixed-use or retail), development and subsequent sale. Future use may be uncertain.
4. Profits will not be recognised in FFO on any previous impairment amounts.
DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 65
----- End of picture text -----

`–` TRADING Track record since 2012

TRADING PROFITS DELIVERED - developed or repositioned and sold eight properties	TRADING PROFITS DELIVERED - developed or repositioned and sold eight properties

Settlement date Property Sector Trading strategy	Sale price ($m) Trading profit1 ($m) Unlevered project IRR
15 Jun 12 Lenore Drive, Erskine Park Industrial Develop 12 Mar 14 57-101 Balham Road, Archerfield Industrial Reposition 12 Mar 14 163-183 Viking Drive Wacol Industrial Reposition 1 Jul 14 30 Distribution Drive, Laverton North Industrial Develop 1 Dec 14 50 Carrington Street, Sydney Office Reposition 22 May 15 40 Market Street, Melbourne Office Reposition 21 Jul 15 5-13 Rosebery & 22-55 Rothschild Ave, Rosebery Industrial Reposition 31 Jul 15 154 O’Riordan Street, Mascot Industrial Reposition Total	38.1 4.5 22.3% 24.5 0.8 9.4% 38 3.2 14.6% 9.5 1.0 16.3% 88 12.2 13.2% 105.3 17.4 26.0% 190 91.8 49.9%2 32 15.9 36.7%2
	$515.3m $146.8m 23.5%3

Pre-tax.
Unlevered IRR and includes the weighted cost of debt at 5.0% for the duration of the project. 3. Calculated as an arithmetic average.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices

Slide 66

– TRADING Case study: 105 Phillip Street, Parramatta

APPROACH

105 Phillip Street is a 4,500sqm car park site adjacent to 130 George Street, Parramatta
Identified an opportunity to develop an office tower at the rear of the combined site with a central courtyard/atrium
Transferred the site into inventory in 2013 and obtained development consent for a 25,000sqm office building
Submission made to Government Property NSW

OUTCOMES SO FAR

Secured Heads of Agreement with Government Property NSW for a 12-year lease over 100% of the building and staged occupation commencing in March 2018

==> picture [229 x 232] intentionally omitted <==

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

Proposed application to Parramatta City Council.
----- End of picture text -----

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 67

`–` TRADING Case study: 79-99 St Hilliers Road, Auburn

APPROACH

The property is an older industrial estate spanning 3.5ha located 16km west of the Sydney CBD
Demand for the older format warehouse and office product was declining
Identified higher and better use to increase the site’s relevance to the market and capitalise on its prominent location
Transferred the estate into inventory during the period

OUTCOMES SO FAR

Secured Heads of Agreement for lease with Bunnings for a full-scale Bunnings Warehouse and adjoining office spanning 19,300sqm to be redeveloped on a portion of the existing estate

==> picture [215 x 138] intentionally omitted <==

==> picture [214 x 67] intentionally omitted <==

DA was lodged in December 2015 including a subdivision proposal that will enable DEXUS to maximise the value of both portions of the site

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 68

– TRADING Case study: 12 Frederick Street, St Leonards

DEXUS APPROACH

12 Frederick Street, St Leonards is an industrial estate located across the road from Royal North Shore Private hospital
DEXUS identified substantially higher and better use potential for the site
DEXUS transferred the estate into inventory during the period

OUTCOMES SO FAR

Secured Heads of Agreement for lease with a major tenant for a long term lease at a new facility to be developed on the site
Lodged rezoning Planning proposal for a mixed use complex over 70,000sqm

==> picture [214 x 150] intentionally omitted <==

==> picture [215 x 145] intentionally omitted <==

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 69

`–` MARKET OUTLOOK Industrial market supported by growth in demand

Industrial demand benefitting from solid economic growth in NSW and VIC
Activity supported by low interest rates and falling petrol prices
Retailers and transport/logistics providers are key occupiers
Increased take-up from growth sectors such as dairy and health/pharmaceutical

Rental growth vs state final demand

==> picture [315 x 167] intentionally omitted <==

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

Net face rental growth (OWSyd) NSW Real final demand
6.0% 6.0%
5.0% 5.0%
4.0% 4.0%
3.0% 3.0%
2.0% 2.0%
1.0% 1.0%
0.0% 0.0%
-1.0% -1.0%
-2.0% -2.0%
FY08 FY10 FY12 FY14 FY16 FY18
----- End of picture text -----

Source: DEXUS Research, JLL Research.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 70

– MARKET OUTLOOK Sydney CBD absorption increases when new supply is added

Sydney CBD net absorption by grade and total completions

==> picture [383 x 168] intentionally omitted <==

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

‘000sqm Prime net abs Secondary net abs Total new completions
300
Prime net absorption over period
250 340,000sqm
345,000sqm 205,000sqm 208,000sqm
200
150
100
50
0
-50
-100
-150
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
----- End of picture text -----

Source: JLL Research, DEXUS Research.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 71

`–` MARKET OUTLOOK Sydney CBD market has been stronger than predicted

Sydney CBD market has outperformed even DEXUS’s positive view for the period FY14-16

Actual demand likely to be c260,000 vs predicted 190,000sqm
Vacancy rate is tracking lower than predicted

As predicted

IT, education, health and business services have led demand
Employment growth has outweighed the effect of workplace changes
Flight to quality is absorbing prime space

Similarly, Melbourne has outperformed due to solid demand

Brisbane and Perth have underperformed due to weaker than expected state economies

Office demand for Sydney CBD - actual vs predicted

==> picture [214 x 246] intentionally omitted <==

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

‘000sqm Actual demand Predicted Aug-13
Actual vacancy RHS Predicted Aug-13
200 12%
10%
150
8%
100 6%
4%
50
2%
- 0%
-2%
-50
-4%
-100 -6%
FY10 FY11 FY12 FY13 FY14 FY15 FY16
Mid-year estimate for full year
Vacancy rate by city – actual and predicted
Predicted 1yr ago Prdicted 2yr ago Actual Jun-15
20% 17.4%
15.2%
15%
10.1%
7.8%
10%
5%
0%
Sydney Melbourne Brisbane Perth
Note: Vacancy as at Dec-15: Syd 7.8%, Mel 10.0%, Bris 16.1%, Perth 23.4% (JLL)
----- End of picture text -----

Source: DEXUS Research, JLL Research.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 72

`–` MARKET OUTLOOK Limited new Sydney supply from FY17 and substantial withdrawals

==> picture [497 x 323] intentionally omitted <==

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

'000sqm Sum of Withdrawal Sum of Refub un-com Sum of Refub pre-com Sum of New un-com Sum of New pre-com
120
100
80
60
40
20
0
-20
-40
-60
-80
FY16 FY17 FY18 FY19 FY20 FY21
Source: DEXUS Research.
DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 73
g site
y
Atrium
Buildin
5 Martin Place 20 Martin Place Carlton House Spiden House Mr Christian Thakral House Rugby Club Fairfax House Metro Raildney g 60 Martin Place 55 Pitt Street
Westpac Building 151 Clarence Street 130 Elizabeth Street 286 Sussex Street 333 George Street One Wharf Lane 55 Market Street 234 Sussex Street Goldfields House St James Campus 285 George Street Sy C2 - 49 Hickson Road Ausgrid Building 55 Market Street 331-337 Kent Street 299 Elizabeth Street 51-55 Pitt Street
233 Castlereagh Street t of Planninp
St George Bank Building Coca-Cola Amatil Building De
International Towers Sydney - Tower 2 State Theatre & Office Tower International Towers Sydney - Tower 3 EY Tower - 200 George Street International Towers Sydney - Tower 1 Australian Consolidated Press Building Darling Harbour Live - Darling Square One Carrington St Development Clarence St Commercial Tower Dept of Education & Training Building Lend Lease Circular Qua
----- End of picture text -----

`–` MARKET OUTLOOK Solid office enquiry from growth sectors

Sydney CBD Lease enquiry by industry 2013 vs 2015

==> picture [333 x 224] intentionally omitted <==

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

‘000sqm 2013 2015
100
80
60
40
20
0
Finance & Business Government Education Health & Construction IT/Comms
insurance serv. pharm. &
engineering
Traditional users Growth sectors
----- End of picture text -----

Source: Colliers International.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices

Slide 74

`–` MARKET OUTLOOK Sydney CBD office

==> picture [468 x 171] intentionally omitted <==

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

Sydney CBD office market Sydney CBD office market At 31 Dec 2015
‘000sqm
Total net lettable area 5.06 million sqm
250 12%
Prime vacancy average 8.2%
200
9%
150 DEXUS Sydney CBD exposure
6%
100 Net lettable area 608,300
50 3%
Number of properties 18
- 0%
-50 % of portfolio by value 53%
-3%
-100 Occupancy by area 94.2%
-6%
-150
Occupancy by income 93.5%
-200 -9%
FY06 FY08 FY10 FY12 FY14 FY16 FY18 Weighted average lease expiry 4.5 years
Net Absorption Net Supply Vacancy (RHS)
----- End of picture text -----

Recovery well underway with demand to remain firm FY16-FY17
Vacancy is sitting at 7.8% (Dec-15), well below the 10 year average
Vacancy to temporarily lift this year due to significant new supply
Positive demand and withdrawal of older stock to drive vacancy down in FY18

Source: JLL Research actual & DEXUS Research forecast.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 75

`–` MARKET OUTLOOK Melbourne CBD office

==> picture [467 x 171] intentionally omitted <==

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

Melbourne CBD office market Melbourne CBD office market At 31 Dec 2015
‘000sqm
Total net lettable area 4.62 million sqm
250 12.5%
Prime vacancy average 9.9%
200 10.0%
DEXUS Melbourne CBD exposure
150 7.5% Net lettable area 275,100
100 5.0% Number of properties 7
50 2.5% % of portfolio by value 13%
Occupancy by area 89.1%
- 0.0%
Occupancy by income 90.9%
-50 -2.5%
FY06 FY08 FY10 FY12 FY14 FY16 FY18 Weighted average lease expiry 3.9 years
Net Absorption Net Supply
----- End of picture text -----

==> picture [124 x 8] intentionally omitted <==

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

Melbourne CBD office market
----- End of picture text -----

Solid demand supported by improving state economy and strong population growth
Tenant migration from the fringe to the CBD anticipated to continue
Vacancy to tighten over the medium-term due to muted supply

Source: JLL Research actual & DEXUS Research forecast.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 76

`–` MARKET OUTLOOK Brisbane CBD office

==> picture [468 x 171] intentionally omitted <==

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

Brisbane CBD office market Brisbane CBD office market At 31 Dec 2015
‘000sqm
Total net lettable area 2.19 million sqm
150 18%
Prime vacancy average 13.2%
100 12% DEXUS Brisbane CBD exposure
Net lettable area 194,500
50 6%
Number of properties 5
- 0%
% of portfolio by value 14%
-50 -6% Occupancy by area 96.7%
Occupancy by income 96.6%
-100 -12%
FY06 FY08 FY10 FY12 FY14 FY16 FY18 Weighted average lease expiry 5.1 years
Net Absorption Net Supply Vacancy (RHS)
----- End of picture text -----

Demand has turned the corner with 4 quarters of positive demand
Demand to benefit from centralisation of tenants and improving economy
Supply high in short term, but to decline post FY17
Should benefit longer-term from significant withdrawals for residential conversion

Source: JLL Research actual & DEXUS Research forecast.

==> picture [235 x 6] intentionally omitted <==

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

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 77
----- End of picture text -----

`–` MARKET OUTLOOK Perth CBD office

==> picture [466 x 179] intentionally omitted <==

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

Perth CBD office market Perth CBD office market At 31 Dec 2015
‘000sqm
Total net lettable area 1.77 million sqm
250 25%
Prime vacancy average 23.5%
200 20%
DEXUS Perth CBD exposure
150 15%
Net lettable area 131,100
100 10%
Number of properties 4
50 5%
% of portfolio by value 8%
- 0%
Occupancy by area 99.3%
-50 -5%
Occupancy by income 99.3%
-100 -10%
FY06 FY08 FY10 FY12 FY14 FY16 FY18 Weighted average lease expiry 4.3 years
Net Absorption Net Supply Vacancy (RHS)
----- End of picture text -----

==> picture [102 x 8] intentionally omitted <==

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

Perth CBD office market
----- End of picture text -----

Soft demand conditions as falling commodity prices and Chinese slowdown weighs on investment
Elevated levels of new supply to drive vacancy to circa 23%
Rents likely to weaken further
Perth's longer term prospects will be underpinned by rising exports and population growth

Source: JLL Research actual & DEXUS Research forecast.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 78

EXCHANGE RATES AND SECURITIES USED IN STATUTORY ACCOUNTS

31 Dec 2014 30 June 2015 31 Dec 2015	31 Dec 2014 30 June 2015 31 Dec 2015	31 Dec 2014 30 June 2015 31 Dec 2015	31 Dec 2014 30 June 2015 31 Dec 2015
Closing rates for Statement of Financial Position USD 0.8202 0.7680 0.7286 Average rates for Statement of Comprehensive Income USD 0.8906 0.8367 0.7231

Post consolidation equivalent amounts2	6 mths to 31 Dec 2014	12 mths to 30 June 2015	6 mths to 31 Dec 2015
Average weighted number of securities1 Closing number of securities	905,531,797 905,531,797	915,462,824 970,806,349	969,319,156 967,947,692

Used to calculate FFO per security.
Where the number of securities held by a security holder following the consolidation resulted in a fraction of a security, the fraction was rounded up to the nearest whole number.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 79

GLOSSARY GLOSSARY

Distribution payout policy: Policy is to distribute in line with free cash flow. Funds From Operations (FFO): FFO is in line with Property Council of Australia definition and 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, rental guarantees and coupon income.

Adjusted FFO (AFFO): AFFO is calculated in line with the Property Council of Australia definition and comprises PCA FFO and adjusted for: maintenance capex, incentives (including rent free incentives) given to tenants during the period and other items which have not been adjusted in determining FFO.

Gearing: Gearing is represented by Interest Bearing Liabilities (excluding deferred borrowing costs and including the currency gains and losses 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. Gearing (look through): Represents Gearing defined above adjusted to include debt in equity accounted investments. 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 calculated based on the weighted average number of DEXUS securities for the relevant period. Weighted Average Lease Expiry (WALE): A measure in years of the average term to expiry of in-place rent. Includes vacancies.

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 80

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.

==> picture [497 x 55] intentionally omitted <==

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

DEXUS Property Group – 2016 Half Year Results Presentation and Appendices Slide 81
----- End of picture text -----

==> picture [162 x 11] intentionally omitted <==

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

DEXUS PROPERTY GROUP
----- End of picture text -----

==> picture [339 x 11] intentionally omitted <==

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

2016 HALF YEAR RESULTS PRESENTATION – 17 FEBRUARY 2016
----- End of picture text -----

==> picture [497 x 53] intentionally omitted <==

AI assistant

DEXUS — Interim / Quarterly Report 2016

64807_rns_2016-02-16_77ceb113-c514-4bd1-aa9e-dc22e4280bbf.pdf

17 February 2016

2016 Half year results presentation

Media relations

About DEXUS

DEXUS PROPERTY GROUP

CONTENTS

– GROUP HIGHLIGHTS Delivering across key earnings drivers in HY16

RECENT PROPERTY TRANSACTIONS – North Sydney acquisition & Burwood sale

100 Mount Street, North Sydney

IOF MERGER WITH DEXUS

– FINANCIAL RESULTS Key financial metrics

– FINANCIAL RESULTS Funds From Operations

– FINANCIAL RESULTS Management Expense Ratio (MER) and Return on Equity

– CAPITAL MANAGEMENT HY16 update

Debt maturity profile

PROPERTY PORTFOLIO

– PROPERTY PORTFOLIO Developments and Sydney portfolio drive returns

Returns for the 12 months to 31 December 2015

Office portfolio total return composition

– PROPERTY PORTFOLIO Cap rates expected to tighten further

Outlook

– PROPERTY PORTFOLIO Office: Leasing transaction volumes up

Take-up of fitted-suites has been strong across the Sydney CBD Prime grade portfolio

– PROPERTY PORTFOLIO Office: Consistent portfolio performance

– PROPERTY PORTFOLIO Office leasing improves expiry profile

THIRD PARTY FUNDS MANAGEMENT

Growth of third party funds platform

DWPF performance against benchmark

– THIRD PARTY FUNDS MANAGEMENT Management operations[1] profit

DEVELOPMENT AND TRADING

– DEVELOPMENT DEXUS pipeline

MARKET OUTLOOK

– MARKET OUTLOOK Nationally Prime space is benefiting from flight to quality

Current vacancy vs long term average

– MARKET OUTLOOK Sydney CBD vacancy to tighten quickly

DEXUS expectations

– MARKET OUTLOOK Sydney withdrawals to increase due to future infrastructure

– SUMMARY Outlook

Key areas of the business are in a strong position

SUMMARY

CONTENTS

– GROUP HIGHLIGHTS DEXUS today

– IOF MERGER WITH DEXUS Background

– FINANCIAL RESULTS Reconciliation to statutory net profit

– FINANCIAL RESULTS Management operations profit

Management operations profit

– FINANCIAL RESULTS Cash flow reconciliation

– FINANCIAL RESULTS Interest reconciliation

– FINANCIAL RESULTS Change in net tangible assets and revaluations

– FINANCIAL RESULTS Direct property portfolio movements

– CAPITAL MANAGEMENT HY16 overview

– CAPITAL MANAGEMENT Interest rate hedging profile

Hedge maturity profile

– PORTFOLIO RESULTS Office portfolio diversification

DEXUS office by asset type

– PORTFOLIO RESULTS Office lease expiry profile at 31 December 2015

– PORTFOLIO RESULTS Office lease expiry profiles at 31 December 2015

– PORTFOLIO RESULTS Office portfolio top 10 tenants

Diversity of office tenants by income

– PORTFOLIO RESULTS Industrial portfolio diversification

– PORTFOLIO RESULTS Industrial lease expiry profile at 31 December 2015

– PORTFOLIO RESULTS Industrial portfolio top 10 tenants

Diversity of industrial tenants by income

– PORTFOLIO RESULTS Office and Industrial portfolio sustainability metrics

– PORTFOLIO RESULTS DEXUS completed developments and pipeline

DEXUS development pipeline[6]

– PORTFOLIO RESULTS DEXUS committed developments and portfolio capex

– PORTFOLIO RESULTS DEXUS uncommitted developments

TRANSACTIONS

– TRADING Track record since 2012

APPROACH

OUTCOMES SO FAR

– TRADING Case study: 79-99 St Hilliers Road, Auburn

APPROACH

OUTCOMES SO FAR

DEXUS APPROACH

OUTCOMES SO FAR

DEXUS Interim / Quarterly Report 2016

`–` GROUP HIGHLIGHTS Delivering across key earnings drivers in HY16

RECENT PROPERTY TRANSACTIONS `–` North Sydney acquisition & Burwood sale

`–` FINANCIAL RESULTS Key financial metrics

`–` FINANCIAL RESULTS Funds From Operations

`–` FINANCIAL RESULTS Management Expense Ratio (MER) and Return on Equity

`–` CAPITAL MANAGEMENT HY16 update

`–` PROPERTY PORTFOLIO Developments and Sydney portfolio drive returns

`–` PROPERTY PORTFOLIO Cap rates expected to tighten further

`–` PROPERTY PORTFOLIO Office: Leasing transaction volumes up

`–` PROPERTY PORTFOLIO Office: Consistent portfolio performance

`–` PROPERTY PORTFOLIO Office leasing improves expiry profile

`–` THIRD PARTY FUNDS MANAGEMENT Management operations[1] profit

`–` DEVELOPMENT DEXUS pipeline

`–` MARKET OUTLOOK Nationally Prime space is benefiting from flight to quality

`–` MARKET OUTLOOK Sydney CBD vacancy to tighten quickly

`–` MARKET OUTLOOK Sydney withdrawals to increase due to future infrastructure

`–` SUMMARY Outlook

`–` GROUP HIGHLIGHTS DEXUS today

`–` IOF MERGER WITH DEXUS Background

`–` FINANCIAL RESULTS Reconciliation to statutory net profit

`–` FINANCIAL RESULTS Management operations profit

`–` FINANCIAL RESULTS Cash flow reconciliation

`–` FINANCIAL RESULTS Interest reconciliation

`–` FINANCIAL RESULTS Change in net tangible assets and revaluations

`–` FINANCIAL RESULTS Direct property portfolio movements

`–` CAPITAL MANAGEMENT HY16 overview

`–` CAPITAL MANAGEMENT Interest rate hedging profile

`–` PORTFOLIO RESULTS Office portfolio diversification

`–` PORTFOLIO RESULTS Office lease expiry profile at 31 December 2015

`–` PORTFOLIO RESULTS Office lease expiry profiles at 31 December 2015

`–` PORTFOLIO RESULTS Office portfolio top 10 tenants

`–` PORTFOLIO RESULTS Industrial portfolio diversification

`–` PORTFOLIO RESULTS Industrial lease expiry profile at 31 December 2015

`–` PORTFOLIO RESULTS Industrial portfolio top 10 tenants

`–` PORTFOLIO RESULTS Office and Industrial portfolio sustainability metrics

`–` PORTFOLIO RESULTS DEXUS completed developments and pipeline

`–` PORTFOLIO RESULTS DEXUS committed developments and portfolio capex

`–` PORTFOLIO RESULTS DEXUS uncommitted developments

`–` TRADING Track record since 2012

`–` TRADING Case study: 79-99 St Hilliers Road, Auburn

`–` MARKET OUTLOOK Industrial market supported by growth in demand

`–` MARKET OUTLOOK Sydney CBD market has been stronger than predicted

`–` MARKET OUTLOOK Limited new Sydney supply from FY17 and substantial withdrawals

`–` MARKET OUTLOOK Solid office enquiry from growth sectors

`–` MARKET OUTLOOK Sydney CBD office

`–` MARKET OUTLOOK Melbourne CBD office

`–` MARKET OUTLOOK Brisbane CBD office

`–` MARKET OUTLOOK Perth CBD office