DEXUS — Interim / Quarterly Report 2018

Feb 13, 2018

Dexus (ASX: DXS)

ASX release

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14 February 2018

2018 Half year results presentation

Dexus provides its 2018 half year results presentation.

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

For further information please contact:

Investor Relations Media Relations Melanie Bourke Louise Murray +61 2 9017 1168 +61 2 9017 1446 +61 405 130 824 +61 403 260 754 melanie.bourke@dexus.com louise.murray@dexus.com

About Dexus

Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $26.5 billion. We believe that the strength and quality of our relationships will always be central to our success, and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $13.1 billion of office and industrial properties. We manage a further $13.4 billion of office, retail, industrial and healthcare properties for third party clients. The group’s $4.2 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.8 million square metres of office workspace across 55 properties, we are Australia’s preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by 28,000 investors from 20 countries. With more than 30 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for investors. www.dexus.com

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

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2018 Half Year Results
14 February 2018
Dexus Funds Management Limited
ABN 24 060 920 783
AFSL 238163 as responsible entity for Dexus
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Agenda

Introduction Financial results

Property portfolio performance

Transactions, developments and trading Funds management Summary and outlook Appendices

Darren Steinberg – Chief Executive Officer Alison Harrop – Chief Financial Officer Kevin George – EGM, Office and Industrial Ross Du Vernet – Chief Investment Officer Darren Steinberg – Chief Executive Officer

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2

Dexus 2018 Half Year Results Presentation

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Introduction
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Dexus today Overview

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-
Largest owner and manager of prime grade
PROPERTY office properties in Australia with scale to
deliver great outcomes for our customer base
PORTFOLIO across Sydney, Melbourne, Brisbane and
Perth CBDs
DEVELOPMENT
-
Leverages Dexus’s core capabilities to deliver
Pipeline of value-enhancing
FUNDS investment plans and drive performance for
third party clients + opportunities across multiple
MANAGEMENT sectors, located primarily in cities
-
Demonstrated ability to attract new clients that will benefit from the global
trend of urbanisation
Creating value
from earnings - Established capability that leverages leasing,
drivers development and transaction expertise
TRADING
-
Delivered $164 million of trading profits, net
of tax, since FY11
UNDERPINNED BY A STRONG BALANCE SHEET
3 Dexus 2018 Half Year Results Presentation
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Introduction

Positive fundamentals for office

State of the market

Australian economic view

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$230 billion
2.8% p.a.
Five year GDP growth infrastructure investment
forecast - among the highest across Australia:
of advanced economies
$90 billion underway with
$140 billion planned
Over the next five years we expect…
Australian population to grow by
8.0%
Service sector jobs to be
up 12.6%
Source: JLL Research, IMF, Deloitte Access Economics, Dexus Research.
1. Face rental growth
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Real estate view

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Office supply forecast 2018-2019
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Completions as a % of total stock
San Francisco
London
Melbourne
Hong Kong
New York
Singapore
Sydney
0% 2% 4% 6% 8%
Office vacancy rate and growth outlook Projected rental growth FY18 [1]
Singapore 10-20%
New York 0-5%
San Francisco 0-5%
Melbourne 5-10%
Sydney 5-10%
London 0-5%
Hong Kong 0-5%
0% 5% 10% 15%
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Introduction

Active six-month period HY18 highlights

• Strong leasing maintained high portfolio occupancy

• Income commenced from leases secured over the past 12 months

• Secured development leasing locking in future income streams

• Completed first equity raise for Healthcare Wholesale Property Fund

• Confident in securing FY18 trading profit[1] target of $35-40 million

• Enhanced our duration of debt to 7 years through completion of our largest ever long dated debt transaction

• Achieved 87% employee engagement score

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1. Net of tax.

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Financial results

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Financial results

Key earnings drivers deliver results Underlying business performing

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Underlying business
Driver FY18 target HY18 progress
circa 4-5% office l-f-l
PROPERTY income growth Property AFFO [1] of $288.5 million
-0.4% office l-f-l income growth will grow to 4-5% for FY18
PORTFOLIO circa 3-4% industrial
+1.0% industrial l-f-l income growth will grow to 3-4% for FY18
l-f-l income growth
FUNDS Management
Operations FFO of $25.1 million
MANAGEMENT FFO of circa $50m
Creating value
from earnings
drivers
Approximately
Trading profits of $14.3 million [2]
TRADING $35-40m trading
primarily from the sale of 105 Phillip Street Parramatta
profits [2]
1. AFFO contribution is calculated before finance costs, group corporate costs and tax. Property AFFO is equal to Property FFO of $364.0 million less total portfolio capex of $75.5 million.
2. Net of tax.
7 Dexus 2018 Half Year Results Presentation
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Financial results

Delivered strong financial result in HY18

HY18 $m HY17 $m Change % Office property FFO 299.4 292.6 2.3% Industrial property FFO 64.6 53.7 20.3% Total property FFO 364.0 346.3 5.1% Management operations1 25.1 21.0 19.5% Group corporate (13.6) (10.7) (27.1%) Net Finance costs (63.3) (64.5) 1.9% Other2 (4.7) (4.4) (6.8%) Underlying FFO3 307.5 287.7 6.9% Trading profits (net of tax) 14.3 8.3 72.3% FFO 321.8 296.0 8.7% Adjusted Funds from Operations (AFFO) 246.3 214.3 14.9% Distribution payout (% AFFO) 97.9% 98.0% Distribution 241.1 210.1 14.8%	- Management operations increased as a result of revaluation growth and a strong first half of office leasing - Management Expense Ratio (MER) benefited from increased revaluations, reducing to 33 basis points - Office property FFO growth due to lease commencements across the portfolio and acquisitions in July 2017 - Industrial property FFO growth driven by increased occupancy from lease commencements, income from completed developments and acquisitions
	HY18 HY17 Change
	Underlying FFO per security3 30.2 29.7 1.7% FFO per security 31.6 30.6 3.3% Distribution per security 23.7 21.7 9.2%
	HY18 FY17
	NTA per security $9.16 $8.45 8.4%

1. Management operations income includes development management fees.

2. Other FFO includes non-trading related tax expense.

3. Underlying FFO excludes trading profits net of tax. 8 Dexus 2018 Half Year Results Presentation

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Financial results

Maintained balance sheet strength Completed Dexus’s largest ever long-dated debt transaction

• Improved debt duration and diversity of funding sources

• Issued $653 million dual currency US Private Placement

• Four tranches across 12 and 15 years equating to an average duration of 13.5 years, including $150 million of A$ fixed debt

• Average margin of 175 basis points on US$ tranches

• Average coupon of 4.68% on A$ tranches

• Continue to benefit from a low interest rate environment

Key metrics	31 Dec 2017	30 June 2017
Gearing (look-through)1	26.5%	26.7%2
Cost of debt3	4.0%	4.1%
Duration of debt	7.0 years	5.6 years5
Hedged debt (incl caps)4	67%	65%
S&P/Moody’s credit rating	A-/A3	A-/A3

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Diversified sources of debt
144A 7%
Debt Capital Markets Bank Debt
63% 37%
Bank
Facilities 37%
USPP 36%
Commercial
Paper 2%
MTN 18%
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1. Adjusted for cash and debt in equity accounted investments.

2. Pro forma gearing is adjusted for the acquisitions of MLC Centre, Sydney, 100 Harris Street, Pyrmont, 90 Mills Road, Braeside and the sales of 30-68 Taras Avenue, Altona North and 46 Colin Street, West Perth, including the impact of transactions costs. Actual gearing (look-through) is 22.1% at 30 June 2017.

3. Weighted average across the period, inclusive of fees and margins on a drawn basis.

4. Average for the period. Hedged debt (excluding caps) was 56% for the 6 months to 31 December 2017 and 59% for the 12 months to 30 June 2017. 9 Dexus 2018 Half Year Results Presentation

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Property portfolio
performance
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Property portfolio performance

Strong HY18 valuation uplift

Market evidence and leasing success driving valuations

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Total portfolio Valuation performers [3]
Cap rate [2] 383-395 Kent Street, Australia Square, 45 Clarence Street,
Valuation uplift [1] Sydney Sydney Sydney
5.66% ��������
$730.2m
FY17: 5.95%
Office Industrial
Valuation uplift Valuation uplift
$662.9m 100% $62.3m 100%
55%
FY17: $625.8m 70% FY17: $78.9m
50% 50% DXS 100% interest DXS 50% interest DXS 100% interest
Cap rate [2] Cap rate [2] 29.3% to $342.0mup $77.5m or 17.3% to $500.0mup $73.9m or 15.3% to $431.0mup $57.3m or
45%
30%
5.50% 6.65% 12 month outlook
FY17: 5.78% 0%Cap rate compressionHY18 composition FY17: 6.88% 0%Cap rate compressionHY18 composition Future valuation uplifts to be driven by further strengthening in underlying assumptions including reduced downtime and
Rental growth Rental growth incentives combined with increased market rents
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1. Includes healthcare property revaluation gain of $5.0 million.

2. Weighted average capitalisation rate.

3. At Dexus ownership.

11 Dexus 2018 Half Year Results Presentation

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Property portfolio performance

Active period of office leasing Leasing across core markets

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Office portfolio leasing Development leasing
Sydney Melbourne Sydney Perth
One Farrer Place & Grosvenor Place MLC Centre QV 222 Lonsdale St 100 Mount Street 240 St Georges Terrace
- Secured three customers across 6,600sqm - Completed six - Secured new lease to - Committed NBN - Committed approx. 40% of
continuing the trend of health, insurance leasing deals RMIT and renewal of across 20,364sqm the area (15,464sqm) being
and pharmaceutical related companies across 1,172sqm GHD Services across - Now 60% committed vacated by Woodside in
centralising into CBD in line with 18,091sqm December 2018
acquisition metrics
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Property portfolio performance

Office leasing enquiry strong Business sentiment enhancing results

Leasing by area[1]

Average incentives[1]

15.0%

82,577sqm

FY17: 14.5%

Occupancy

Sydney leasing spread[1] +16%

96.5% FY17: 97.2%

One-year total return[2]

Effective L-F-L income

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-0.4% 15.8%
Face: 0.7% • 6.1% excluding
30 The Bond, Sydney
• Confident will be
4-5% for FY18
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1. Excluding development leasing.

2. Portfolio unlevered total return.

13 Dexus 2018 Half Year Results Presentation

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40.2%
60 Miller Street,
North Sydney
Total return 24.9%
8 Nicholson Street,
outperformer s Melbourne
24.3%
Australia Square,
George Street,
Sydney
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Property portfolio performance

Consistent lease expiry profile Addressing leasing risk in future years

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192,105sqm -
WALE [1] of expiries Focus on vacancy at Sydney Olympic Park
up to and including FY20 and future expiries in Perth
4.6 years in Sydney
FY17: 4.8 years = 20%
16% office income
Sydney Total
14% 13.2%
12.5%
12.1%
12%
10.6%
10%
8%
6%
4% 3.5% 3.4%
2%
0%
Vacant FY18 FY19 FY20 FY21 FY22
FY18 Key expiries FY19 Key expiries FY20 Key expiries FY21 Key expiries
100 Harris St (0.5%) 240 St Georges Tce (2.5%) 1 Margaret St (1.0%) Kings Square (1.1%)
240 St Georges Tce (0.4%) 150 George St [2] (0.8%) Australia Square (0.9%) 45 Clarence St (0.9%)
12 Creek Street (0.3%) 11 Talavera Rd (0.7%) 201 Elizabeth St (0.8%) 175 Pitt St (0.7%)
1. Weighted average lease expiry.
2. Post 31 December 2017, a three year option has been exercised by CBA at 150 George Street and 101 George Street, Parramatta, not reflected in the HY18 lease expiry profile or metrics.
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Property portfolio performance

Sydney CBD office supply Putting it into perspective

• The rate of supply during FY18-FY22 to be less than half of supply in FY16-FY17 (including Barangaroo)

• Demand expected to largely absorb the supply keeping vacancy at or below average

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Supply cycle analysis Total completions Vacancy
24%
20%
16% 8.5% long-term
average
12% vacancy
8% 5.7%
4%
3.4%
0% Forecast total
FY89 FY92 FY95 FY98 FY01 FY04 FY07 FY10 FY13 FY16 FY19 FY22 completions
per annum
Total completions per annum during over the next
3.9% p.a. 1.7% p.a.
FY16-FY17 (including Barangaroo) five years
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Source: Dexus Research, JLL.
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Property portfolio performance
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Industrial portfolio activity continues Uptick in e-commerce and logistics demand

Leasing by area Average incentives 15.8% 27.2% 118,537sqm FY17: 14.5% 5 Basalt Road, Greystanes Occupancy WALE[1] 97.5% 5.0 years FY17: 96.5% FY17: 5.1 years Total return 26.1% Effective L-F-L income One-year total return[2] outperformers 27-29 Liberty Road, Huntingwood +1.0% 15.4% Face: 8.8% to 3-4% for FY18To grow 25.0% 2-6 Basalt Road, Greystanes

1. Weighted average lease expiry by income, including completed developments.

2. Portfolio unlevered total return.

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Property portfolio performance

Sustainability

Leadership recognition and progress towards 2020 target

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Recognition in latest sustainability results Progressing 5 star NABERS Energy target
-
Dexus office portfolio ranked No.1 in Global Listed and Acquisitions Improvements Divestments Declines
Australian Listed categories in GRESB which assessed 850 1,200,000
Target: 1 million sqm by 2020
real estate portfolios representing > US$3.7 trillion of AUM
1,000,000
800,000
Dec 17: 765,447sqm
600,000
400,000
- Dexus achieved Silver
200,000
Class Sustainability Award
by RobecoSAM in The
Sustainability Yearbook 0
2018
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Transactions,
Development & Trading
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Transactions, development & trading

$4.2 billion group development pipeline

Concentrated in major cities and supported by broad capability

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Exposure across Australian CBDs
Industrial Retail Healthcare
Office City retail Mixed use
Waterfront Place, Brisbane 175 Pitt Street, Sydney 201 Elizabeth Street, Quarrywest, Greystanes Willows Shopping Calvary Adelaide
Dexus and Dexus Wholesale Dexus and Dexus Office Sydney Dexus and Dexus Centre Hospital
Property Fund Partner Dexus Industrial Partner DWPF HWPF
$1,899m $207m $816m $362m $579m $325m
($833m committed) ($85m committed) (Uncommitted) ($175m committed) ($151m committed) ($325m committed)
including: including: including: including: including: Calvary Adelaide
180 Flinders Street, Melbourne 175 Pitt Street, Sydney 201 Elizabeth Street, Sydney Quarrywest, Greystanes Willows Shopping Centre Hospital
12 Creek Street, Brisbane 1 Farrer Place, Sydney Waterfront Place Precinct Dexus Industrial Estate, Smithfield Shopping
11 Talavera Road, Macquarie Park 44 Market Street, Sydney Laverton North Centre
Waterfront Place Precinct Westfield Plenty Valley
1. Includes trading and value-add opportunities. 70% of the pipeline Circa 7.6% of balance sheet FUM is allocated to
development [1] at 31 December 2017
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Transactions, development & trading

Activating office developments Leveraging leasing and development expertise

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Development of
180 Flinders Street, Melbourne
100% Dexus
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Project cost[1] : $146 million Project overview: A 20,100sqm value-add development opportunity to create new office above existing car park and reposition property Target completion: mid 2020 Target yield on cost: 6-7%

1. Includes associated refurbishment works.

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Development of
Annex, 12 Creek Street, Brisbane
50% Dexus / 50% DWPF
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Project cost: $30 million Project overview: A 6,700sqm development to utilise land space and provide opportunities for smaller space users Target completion: August 2019 Target yield on cost: 7-8%

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Refurbishment of
240 St Georges Terrace, Perth
40% of
Woodside
space
committed
100% Dexus
Refurbishment budget: $165 million
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Project overview: Reposition asset to provide greater ground floor amenity and refurbish office tower floors across 47,800sqm Target completion: late 2021 Target yield on cost: circa 7%

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Transactions, development & trading

Strength at industrial estates

Developing to capture customer demand

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Development of
Quarrywest, Greystanes
Precinct C&D
50% Dexus / 50% Dexus Industrial Partner
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Project cost[1] : $109 million

Project overview: 46,300sqm completed (5 properties), 41,500sqm (5 properties) under construction and 100% pre-leased. A further 33,400sqm remains to be built out to complete the estate. Target completion: September 2018 Target yield on cost: 7-8%

1. Dexus interest only.

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Development of
Laverton North Industrial Estate, Melbourne
100% Dexus
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Project cost: $224 million

Project overview: 73,600sqm (4 properties) completed, 42,600sqm (2 properties) under construction and 100% pre-leased.

66,700sqm remains uncommitted and to be built out to complete the estate. Target completion: June 2020 Target yield on cost: 7-8%

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Transactions, development & trading

Value creation from development pipeline 100 Mount Street, North Sydney

• 90 and 100 Mount Street development site acquired for initial acquisition price of $41 million on 11 February 2016

• Total development cost of $462 million[1] with a target yield on cost of 8%

• 25,400 square metres committed (60% of space)

• Active enquiry on remaining space

• Delivering smart building solutions designed to future proof the asset, including secured connectivity and advanced security and occupancy data

• Achieved 5 star Green Star Certification and targeting a WELL Gold Shell and Core rating

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100m from Victoria Cross Metro stop
opening 2024
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1. Including initial acquisition price.

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Transactions, development & trading

Trading business Positioned to deliver FY18 target

• On track to deliver $35-40 million (net of tax) for FY18

• Secured $14.3 million (net of tax) of trading profits in HY18

• 32 Flinders Street, Melbourne is currently being marketed for sale

• 12 Frederick Street, St Leonards is well positioned for a fund through sale

• Trading pipeline of $100-$120 million of trading profits (net of tax) over the next four years

Trading projects	Current use	Trading strategy	FY18	FY19	FY20	FY21	FY22+
32 Flinders Street Carpark Rezoning 140 George Street1 Office Development Lakes Business Park South Industrial Development 12 Frederick Street – Stage 1 Industrial Healthcare development Gladesville2 Industrial Rezoning 12 Frederick Street – Stage 2 Industrial Healthcare development

1. Transferred to trading book in August 2017.

2. Transferred to trading book in July 2017.

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Future trading opportunity

12 Frederick Street, St Leonards – Stage 1

• Stage 1 represents approximately 15,000 square metres of NLA (circa 25% of total site)

• Dexus-owned and controlled site located adjacent to the Royal North Shore Hospital and North Shore Private Hospital, a major NSW healthcare precinct

• Planning Proposal (rezoning) endorsed by Council and Department of Planning, exhibited and awaiting gazettal

• State Significant Development Applications lodged and under determination

• Provides opportunities for a range of specialist operators, resulting in over 20,000sqm of enquiry

• Indicative value on completion of $200-$250 million

• First right of refusal for Healthcare Wholesale Property Fund to acquire

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Transactions, development & trading
Proposed
development of a
specialist
health hub
in Sydney’s
St Leonards
Artists Impression, subject to planning consent and pre-lease
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Funds Management

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Funds Management
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New fund completes first equity raise Healthcare Wholesale Property Fund

• Completed first equity raise and initial capitalisation of Healthcare Wholesale Property Fund (HWPF) securing three new clients onto the funds platform

• Seeded with approximately $370 million[1] of properties and has an additional pipeline of high quality opportunities with an estimated on completion value of $445 million

• The new Calvary Adelaide Hospital (under construction) and the GP Plus Health Care Centre are the seed assets for the fund

• A further equity raise to be completed in 2018 for further pipeline opportunities

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Construction of Calvary Adelaide Hospital – north west view of the site
Artist’s impression of Calvary Adelaide Hospital
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1. On completion value.

26 Dexus 2018 Half Year Results Presentation

Funds Management

Continuing to deliver for Funds Management clients Driving performance and delivering growth

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Funds Management platform Delivering on clients’ investment objectives
$0.2bn All funds delivered strong performance
<$0.1bn Dexus Office Partnership delivered strong returns
– 1 year unlevered total property return of 16.5%
$2.3bn $8.6bn – Annualised unlevered total property return since inception of 15.3%
DWPF outperformed its benchmark
$13.4bn 16%
on behalf of 14% 13.75% 12.84% 14.01% 12.22% 11.93% DWPF return Benchmark return
73 clients 12% 10.93% 11.26% 10.25%
10%
$2.0bn 8% 7.44% 6.90%
$0.3bn 6%
Dexus Wholesale Property Fund 4%
2%
Australian Industrial Partner
0%
Australian Mandate 1 year 3 years 5 years 7 years 10 years
Dexus Office Partner
Healthcare Wholesale Property Fund Third party – Active projects in retail and healthcare sectors
Dexus Industrial Partner development pipeline $2.1bn – $1.3 billion uncommitted
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Summary and
outlook
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Summary and outlook

Summary

FY18 outlook and guidance

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Dexus distribution per security (cents) [2]
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• Long-standing strategy continues to deliver

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Distribution
per security
CAGR [2] 6.8% 4.5–5.0% growth
(over the past
50 6 years ) ( 47.5 – 47.7)
45.47
43.51
41.04
40 37.56
36.00
30
20
FY13 FY14 FY15 FY16 FY17 FY181
Actual Guidance
Cents per security
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• Over the next two years, Australian cities are set to continue to benefit from global economic growth, population growth and infrastructure activity

• We expect to see support for real estate values over the next 12 months within our core markets

• Dexus is well positioned to improve performance across a number of areas in the underlying business

• Upgraded market guidance[1] for distribution per security growth to 4.5-5.0% from 4.0-4.5% for the 12 months ending 30 June 2018

• Recent volatility in equity markets, has resulted in Dexus announcing plans to initiate an on-market securities buy-back of up to 5% of Dexus securities on issue, providing the opportunity to enhance investor returns

• Barring unforeseen circumstances guidance is supported by the following assumptions: Impacts of announced divestments and acquisitions; underlying FFO per security growth of 2.5-3.0% underpinned by Dexus office portfolio like-for-like growth of 4-5%, industrial portfolio like for like income growth of 3-4%, management operations FFO of c.$50 million and cost of debt in line with FY17; trading profits of $35-40 million net of tax; maintenance capex, cash incentives, leasing costs and rent free incentives of $165-170 million; and excluding any further transactions.

• Adjusted for the one-for-six security consolidation completed in FY15. Compound annual growth rate (CAGR) is calculated over six years, assuming mid-point of FY18 guidance is met.

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29 Dexus 2018 Half Year Results Presentation

2018 Half Year Appendices 14 February 2018

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30 Dexus 2018 Half Year Results Presentation
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Contents

Overview

• Total group portfolio composition

Financial results

• Reconciliation to statutory profit

• Management operations profit

• • Cash flow reconciliation

• Interest reconciliation

• Change in net tangible assets and revaluations

• • Direct property portfolio book value movements

Capital management

• HY18 position

• Interest rate hedging profile

Property portfolio

• Total return composition and valuation metrics

• Dexus office and industrial key metrics at 31 December 2017

• • Dexus office portfolio

• Dexus industrial portfolio

• Dexus office and industrial portfolio sustainability metrics

• • Dexus completed developments

• Dexus committed developments & portfolio capex

• Dexus uncommitted developments

• Dexus development pipeline

Transactions

Fund management

• Development pipeline

Market outlook

Exchange rates and securities used in statutory accounts Glossary

Important information

31 Dexus 2018 Half Year Results Presentation

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Overview

Total group portfolio composition

Total group FUM $26.5 billion

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Dexus portfolio Funds Management
Retail $5.0bn
Industrial, Office $6.8bn
Office, $10.9bn, $2.1bn, 16%
84% $13.1bn $13.4bn
Healthcare,
$0.05bn,
<1% Healthcare
$0.1bn
Industrial $1.5bn
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32 Dexus 2018 Half Year Results Presentation

Financial results

Reconciliation to statutory profit

Reference Item	31 Dec 2017 $m 31 Dec 2016 $m
Statutory AIFRS net profit after tax Investment property and inventory (Gains)/losses from sales of investment property Fair value gain on investment property Financial instruments Fair value loss on the mark-to-market of derivatives Incentives and rent straight-lining Amortisation of cash and fit out incentives Amortisation of lease fees Amortisation of rent-free incentives Rent straight-lining Tax Non-FFO tax expense Other unrealised or one-off Items Other unrealised or one-off items	997.1 716.0 0.7 (71.4) (730.2) (396.0) 9.2 80.9 26.6 24.4 6.5 4.8 30.0 25.5 (11.6) (4.4) - (1.2) (6.5)1 (82.6)
Funds From Operations(FFO)	321.8 296.0
Maintenance and leasing capex Maintenance capital expenditure Cash incentives and leasing costs paid Rent free incentives	(28.6) (21.5) (14.6) (28.6) (32.3) (31.6)
Adjusted Funds From Operations (AFFO)	246.3 214.3
Distribution	241.1 210.1
AFFO Payout ratio	97.9% 98.0%

1. Includes $18.4 million of unrealised fair value gains on interest bearing liabilities, $2.7 million amortisation of intangible assets, $9.2 million coupon income, rental guarantees received and other.

33 Dexus 2018 Half Year Results Presentation

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Financial results

Management operations profit

	Property	Funds	Development	Management
HY17 ($m)	Management	Management	Management	Operations
Revenue	35.7	27.8	2.2	65.7
Operating expenses	(26.0)	(11.2)	(3.4)	(40.6)
HY18 netprofit	9.7	16.6	(1.2)	25.1
HY18 margin	27%	60%		38%
HY17 margin	21%	61%		35%

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34 Dexus 2018 Half Year Results Presentation

Financial results Cash flow reconciliation

Financial results Cash flow reconciliation
		31 Dec 2017	31 Dec 2016
		$m	$m
Cash flow from operating activities		180.9	301.6
add back:	payment for inventory acquisition and capex	91.8	27.2
less:	development costs	(70.0)	(38.1)
add:	development revenue1	90.4	-
less:	deferred settlement of sale of Mascot	-	(5.0)
less:	tax on trading profits not yet paid	(6.1)	(3.6)
add back:	capitalised interest	6.4	4.8
less:	adjustments for equity accounted distributions	12.3	(19.9)
add back:	other working capital movements	(9.4)	0.8
Adjusted cash flow from operating activities		296.3	267.8
Rent free income		32.3	31.6
Depreciation and amortisation (including deferred borrowing costs)		(6.8)	(3.4)
FFO		321.8	296.0
Less: payments from maintenance capex and incentives2		(75.5)	(81.7)
AFFO		246.3	214.3
Less:gross distribution		(241.1)	(210.1)
Cash surplus/deficit		5.2	4.2

1. Deferred settlement of development revenue.

2. Includes cash and fitout incentives, lease fees and rent free incentives.

35 Dexus 2018 Half Year Results Presentation

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Financial results Interest reconciliation

	31 Dec 2017	31 Dec 2016
	$m	$m
Total statutory finance costs1	60.4	49.9
Add: unrealised interest rate swap MTM gain/(loss)2	1.1	12.7
Add: finance costs attributable to investments accounted for using the equity method	2.5	2.5
Net finance costs for FFO1	64.0	65.1
Add: interest capitalised	6.4	4.8
Gross finance costs for cost of debt purpose	70.4	69.9

1. Excludes interest income of $0.7 million.

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1. Net fair value loss of interest rate swap of $6.2 million (per note 2 of the Financial Statements) includes realised interest rate swap expense of $7.3 million and unrealised interest rate swap MTM gain of $1.1 million. 36 Dexus 2018 Half Year Results Presentation

Financial results

Change in net tangible assets and revaluations

$m $ps	Investment portfolio Valuation change $m Weighted average cap rate % of portfolio
Opening net tangible assets (30 June 17) 8,588 8.45 Revaluation of real estate 730 0.71 Retained earnings1 81 0.08 Amortisation of tenant incentives2 (51) (0.05) Fair value and other movements3 (32) (0.03) NTA 9,316 9.16 Issue of additional equity4 4 Closing net tangible assets (31 Dec 17) 9,320 9.16	Dexus Office portfolio 662.9 5.50% 84% Dexus Industrial portfolio 62.3 6.65% 16% Total Dexus portfolio5 725.2 5.66% 100%

1. Represents HY18 FFO less distributions.

2. Includes rent straight-lining.

3. Primarily includes fair value movements of derivatives and interest bearing liabilities, deferred tax, gain from sale of investment properties, movement in reserves and other.

4. Net of transaction costs.

5. Excludes healthcare property revaluation gain of $5.0 million. 37 Dexus 2018 Half Year Results Presentation

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Financial results

Direct property portfolio book value movements

		Office1	Industrial1	Dexus total1	Trading assets2
		$m	$m	$m	(inventory)
Opening direct property		9,510.5	1,952.1	11,462.6	211.3
Lease incentives	3	35.8	11.1	46.9	1.1
Maintenance capex		26.0	2.6	28.6	0.2
Acquisitions		740.8	52.0	792.8	55.2
Developments 4		42.3	66.2	108.5	30.9
Disposals 5		(64.4)	(13.1)	(77.5)	-
Revaluations		662.9	62.3	725.2	-
Impairment		-	(0.6)	(0.6)	(0.6)
Amortisation		(53.1)	(10.0)	(63.1)	(1.1)
Rent straightlining		9.7	1.9	11.6	0.1
Closing balance at the end of the period		10,910.5	2,124.5	13,035.0	297.1

1. Includes Dexus’s share of equity accounted investments and excludes healthcare.

2. Trading assets are included in Office, Industrial and Dexus total amounts. 3. Includes rent free incentives.

3. Includes capitalised interest. 5. At book value.

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38 Dexus 2018 Half Year Results Presentation

Capital management HY18 position

Debt maturity profile

		Key metrics 31 Dec 2017 30 Jun 2017
- 100 200 300 400 500 600 700 800 $m	FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 DCM CPA MTN Bank
		Total debt1 $3,622m $2,698m Headroom (approximately)2 $0.8bn $1.1bn Gearing (look-through)3 26.5% 26.7%6 Covenant gearing (covenant4 <55%) 26.2% 21.4% Interest cover (covenant4 >2.0x) 5.6x5 5.6x Priority debt (covenant4 <30%) 0% 0%
		1. Total debt does not include debt in equity accounted investments. 2. Undrawn facilities plus cash. 3. Adjusted for cash and debt in equity accounted investments. 4. As per public bond covenants. 5. Look-through interest cover is 5.4x. 6. Pro forma gearing is adjusted for the acquisitions of MLC Centre, Sydney, 100 Harris Street, Pyrmont, 90 Mills Road, Braeside and the sales of 30-68 Taras Avenue, Altona North and 46 Colin Street, West Perth, including the impact of transactions costs. Actual gearing (look-through) is 22.1% at 30 June 2017.
39	Dexus 2018 Half Year Results Presentation

Capital management Interest rate hedging profile

Hedge maturity profile

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Hedging profile 31 Dec 2017 30 Jun 2017
$m
3,000 4.0% Average amount of debt hedged [1] 67% 65%
3.5%
2,500 Average amount of debt hedged excluding caps 56% 59%
3.0%
2,000 Weighted average interest rate on hedged debt [2] 2.9% 3.2%
2.5%
1,500 2.0% Cost of debt [3] 4.0% 4.1%
1.5% Weighted average maturity of hedges 4.9 years 4.9 years [4]
1,000
1.0%
500
0.5%
- 0.0%
FY18 FY19 FY20 FY21 FY22 FY23
Net fixed debt Interest Rate Caps 1.2. Average amount hedged for the period (including caps). Including fixed rate debt (without credit margin).
3. Weighted average across the period, inclusive of fees and margins on a drawn basis.
Interest Rate Swaps Weighted Average Hedge Rate (excl margin) 4. Includes $60 million of Medium Term Notes issued July 2017.
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1. Includes $60 million of Medium Term Notes issued July 2017.

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40 Dexus 2018 Half Year Results Presentation

Property portfolio

Total return composition and valuation metrics

~~2.1%~~ 7.0% 11.6% 4.9% 5.6% 6.0% 6.1% 5.7% 8.3% 68.9% 16.2% 7.4% 11.1% 9.7% 8.8% 3.4% 2.~~6%~~ -7.8% 72.3% 24.2% 19.8% 16.5% 15.8% 15.3% 9.6% 8.4% -0.1% Office Development Rest of Australia Canberra Region Sydney CBD Office Portfolio Melbourne CBD Brisbane CBD Adelaide CBD Perth CBD Income Capital Total Portfolio valuation metrics HY14 FY14 HY15 FY15 HY16 FY16 HY17 FY17 HY18 Dexus Office portfolio cap rate 7.07%2 6.87%2 6.79% 6.71% 6.30% 6.16% 5.95% 5.78% 5.50% Dexus Industrial portfolio cap rate 8.40% 8.32% 8.07% 7.77% 7.56% 7.38% 7.28% 6.88% 6.65% NTA per security $6.493 $6.363 $6.47 $6.68 $7.25 $7.53 $8.05 $8.45 $9.16 Office portfolio total return composition1	~~2.1%~~ 7.0% 11.6% 4.9% 5.6% 6.0% 6.1% 5.7% 8.3% 68.9% 16.2% 7.4% 11.1% 9.7% 8.8% 3.4% 2.~~6%~~ -7.8% 72.3% 24.2% 19.8% 16.5% 15.8% 15.3% 9.6% 8.4% -0.1% Office Development Rest of Australia Canberra Region Sydney CBD Office Portfolio Melbourne CBD Brisbane CBD Adelaide CBD Perth CBD Income Capital Total Portfolio valuation metrics HY14 FY14 HY15 FY15 HY16 FY16 HY17 FY17 HY18 Dexus Office portfolio cap rate 7.07%2 6.87%2 6.79% 6.71% 6.30% 6.16% 5.95% 5.78% 5.50% Dexus Industrial portfolio cap rate 8.40% 8.32% 8.07% 7.77% 7.56% 7.38% 7.28% 6.88% 6.65% NTA per security $6.493 $6.363 $6.47 $6.68 $7.25 $7.53 $8.05 $8.45 $9.16 Office portfolio total return composition1
	~~.~~ -7.8% Office Development Rest of Australia Canberra Region Sydney CBD Office Portfolio Melbourne CBD Brisbane CBD Adelaide CBD Perth CBD ortfolio valuation metrics HY14 FY14 HY15 FY15 HY16 FY16 HY17 FY17 HY18 exus Office portfolio cap rate 7.07%2 6.87%2 6.79% 6.71% 6.30% 6.16% 5.95% 5.78% 5.50% exus Industrial portfolio cap rate 8.40% 8.32% 8.07% 7.77% 7.56% 7.38% 7.28% 6.88% 6.65% TA per security $6.493 $6.363 $6.47 $6.68 $7.25 $7.53 $8.05 $8.45 $9.16
P
D D N

1. Returns exclude acquisition costs.

2. Excluding Dexus Office Partnership properties.

3. Adjusted for the one-for-six security consolidation completed in November 2014. 41 Dexus 2018 Half Year Results Presentation

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Property portfolio

Office and Industrial key metrics

Key metrics	Office Industrial
Amount of space leased	82,577sqm 1 118,537sqm
No. of leasing transactions	130 1 54
Occupancy by income	96.5% 97.5%
Occupancy by area	95.7% 97.9%
Average incentives	15.0% 1, 2 15.8%3
No of effective deals	50 20
Weighted Average Lease Expiry (WALE)	4.6 years 5.0 years
Retention	39% 62%
Like-for-like income growth	0.7% face 8.8% face
	-0.4% effective 1.0% effective

1. Excluding development leasing of 35,828sqm across 4 transactions.

2. Gross basis.

3. Net basis.

42 Dexus 2018 Half Year Results Presentation

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Ed/Lauren/Gary
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Property portfolio Office portfolio diversification

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Office by asset type
Heritage <1% [Carpark 1%]
Development 2%
Office Park 2% Premium
Grade 35%
B Grade 3%
$10.9bn
Prime Grade
92%
A Grade 57%
43 Dexus 2018 Half Year Results Presentation
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Office by location
WA 6%
Sydney
ACT 1% CBD/Fringe
60%
QLD 15%
NSW 70%
$10.9bn
VIC 8%
Sydney Metro
10%
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Property portfolio Office lease expiry profile

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30%
25%
20%
15% 12.2% 12.1% 12.7% 12.5% 13.2% 11.8%
10.6% 10.8%
10%
5% 3.5% 4.3% 3.4% 3.3%
0%
Available FY18 FY19 FY20 FY21 FY22
Income Area
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44 Dexus 2018 Half Year Results Presentation

Property portfolio Office lease expiry profiles by region

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30% Sydney CBD Income Area 40% Brisbane CBD Income Area
30.1% 30.2%
30%
20% 13.8% 15.1% 12.1% 12.3% 12.4% 11.0% 20%
10% 7.9% 8.6% 10.4%
2.4% 2.2% 3.6% 3.1% 10% 2.6% 2.7% 3.2% 3.6% 2.9% 3.1% 3.3% 3.4% 6.7%
0% 0%
Available FY18 FY19 FY20 FY21 FY22 Available FY18 FY19 FY20 FY21 FY22
40% Sydney Suburban Income Area 30% Melbourne CBD 3 23.8% Income Area
30% 25.3% 26.2% 20% 18.6%
20.3% 20.0%
20%10% 10.9% 12.9% 3.1% 3.0% 5.0% 4.6% 7.8% 7.1% 10% 3.9% 5.0% 2.7% 3.7% 9.1% 8.4% 9.2% 4.6% 4.8% 5.1%
0% Available FY18 FY19 FY20 FY21 FY22 0% Available FY18 FY19 FY20 FY21 FY22
Dexus Office [1] Value Cap rate Yield [2] 40% Perth CBD Income Area
($m) (%) (%) 29.4% 31.3%
Sydney CBD 6,274 5.2% 5.1% 30%
Sydney Suburban 896 6.3% 5.9% 20% 13.6%
Melbourne CBDBrisbane CBD 1,624 838 5.5%5.6% 5.5%6.2% 10% 3.3% 2.5% 4.7% 4.9% 4.9% 4.5% 12.5% 6.6% 5.2%
0%
Perth CBD 594 6.8% 8.2% Available FY18 FY19 FY20 FY21 FY22
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1. Includes stabilised properties only. Excludes Canberra and Adelaide office properties.

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1. Passing FFO yield based on annualised Property Funds From Operations for the month of January 2018.

2. Includes Southgate and 180 Flinders Street in Melbourne. 45 Dexus 2018 Half Year Results Presentation

Property portfolio Office top 10 customers

Office customers	S&P rating	% of income1
Wilson Parking	n/a	4.0%
Commonwealth of Australia	AAA	3.3%
Rio Tinto	A-	2.9%
Woodside Energy Commonwealth Bank of Australia	BBB+ AA-	2.0% 1.9%
Deloitte	n/a	1.7%
State of Victoria Clayton Utz	AAA n/a	1.5% 0.9%
King Wood Mallesons	n/a	0.9%
Shell	A+	0.9%

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Diversity of office customers (by income)
100% Other
Education and training
Other public administration
90%
Pharmaceutical wholesaling
Superannuation
80% Engineering Consultancy Services
Employment Placement and Recruitment Services
Electricity, gas, water and waste service
70%
Construction services
Healthcare and social assistance
60% Insurance
Retailing (non-food)
Investment banks
50%
Food Retailing
Oil and Gas
40% Metal ore mining
State Government
Business Services Other
30% Other finance
Federal Government
20% Car park services
Rental & Real Estate services
Banks & building societes
10%
Accounting services
Information media and telecommunications
0% Legal services
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1. 31 December 2017 total Dexus portfolio annualised passing income.

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46 Dexus 2018 Half Year Results Presentation

Property portfolio Industrial portfolio diversification

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Industrial by asset type Industrial by location
Land 6%
SA 2%
Data centre Industrial
4% estate 40%
QLD 5%
NSW 58%
$2.1bn $2.1bn
Distribution
centre 21%
VIC 35%
Business park
29%
47 Dexus 2018 Half Year Results Presentation
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Property portfolio Industrial lease expiry profile

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30%
25%
20%
14.8%
15% 13.9% 13.2%
12.0%
9.5% 9.8% 9.4%
10%
7.9%
5% 2.5% 2.1% 3.2% 3.0%
0%
Available FY18 FY19 FY20 FY21 FY22
Income Area
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48 Dexus 2018 Half Year Results Presentation

Property portfolio

Industrial lease expiry profiles by region

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30% Sydney Income Area 40% Brisbane Income Area
20% 17.6% 20.3% 30% 22.6% 28.1%
13.0% 13.9% 10.6% 12.5% 20%
10% 4.6% 5.4% 8.4% 7.4% 10% 6.7% 7.3% 7.9% 6.0%
1.0% 0.6% 0.0% 0.0% 2.6% 1.4% 0.0% 0.0%
0% 0%
Available FY18 FY19 FY20 FY21 FY22 Available FY18 FY19 FY20 FY21 FY22
40% Melbourne Income Area
30%
21.3%
20%
11.0%
Value Cap rate Yield [2] 10% 4.2% 3.1% 1.3% 1.1% 8.5% 3.7% 8.5% 7.3% 5.5% 4.7%
Dexus Industrial [1] ($m) (%) (%) 0% Available FY18 FY19 FY20 FY21 FY22
Sydney 1,037 6.2% 6.6% 70% Adelaide Income Area
Melbourne 629 6.9% 7.3% 60% 50.7%
Brisbane 74 7.0% 5.6% 50% 44.7%
40%
Adelaide 28 11.0% 13.8% 30% 22.0% 23.4% 20.0%
20% 15.4%
10% 0.0% 0.0% 5.8% 5.2% 6.2% 6.7%
0%
Available FY18 FY19 FY20 FY21 FY22
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1. Includes stabilised properties only.

2. Passing FFO yield based on annualised Property Funds From Operations for the month of January 2018.

49 Dexus 2018 Half Year Results Presentation

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Property portfolio

Industrial top 10 customers

Industrial customers	% of income1
Wesfarmers	0.9%
Reece	0.7%
AWH Pty Ltd	0.6%
IBM Australia	0.5%
Visy Industry Packaging Pty Ltd	0.5%
Simon National Carriers	0.4%
Fedex	0.4%
Toll	0.3%
UniTrans	0.3%
Fonterra	0.3%

1. 31 December 2017 total Dexus portfolio annualised passing income.

Diversity of industrial customers (by income)

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100% Other
Other public administration
90% Legal services
Not-for-profit
Banks & building societes
80% Electricity, gas, water and waste service
State Government
Accommodation and food services
70%
Other finance
Food Retailing
60% Engineering Consultancy Services
Education and training
Business Services Other
50%
Healthcare and social assistance
Scientific and Technical Services
40% Postal and courier pick-up and delivery services
Pharmaceutical wholesaling
Food and beverage manufacturing
30%
Construction services
Transport support services
20% Road, rail, water, air and space transport
Information media and telecommunications
Other manufacturing
10%
Retailing (non-food)
General wholesaling
0% Warehousing and storage services
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50 Dexus 2018 Half Year Results Presentation

Property portfolio

Office and industrial sustainability metrics

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Office Energy and GHG Emissions Intensity Industrial Energy and GHG Emissions
609.0 8.7 Intensity Dexus office portfolio NABERS Energy average rating NABERS Water average rating
34.7 Dec 14 4.6 3.5
133.7
Dec 15 4.7 3.8
336.9 Dec 16 4.8 3.6
16.9
Dec 17 4.8 3.6
70.3
3.4
44.7% energy intensity reduction Listed Office
47.5% emissions intensity reduction 61.1% emissions intensity reduction51.3% energy intensity reduction 5.5 stars NABERS Energy ratings
188,938sqm
27%
FY08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FY08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 5 stars
245,480sqm
Office Water Intensity Industrial Water Intensity 1 6 stars 35%
367.0 14,304sqm2% 4.8 star
855.4 657.0 312.8 6,912sqm3 stars Office portfolioaverage
1%
3.5 stars
27,137sqm
3% 4 stars 4.5 stars
48,570sqm 176,157sqm
7% 25%
23.2% water intensity reduction 17.4% water intensity increase
Note: Data in charts is unaudited.
1. Water consumption for industrial properties is primarily under the control of tenants.
FY08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 FY08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
51 Dexus 2018 Half Year Results Presentation
CO2-e/sqm
CO2-e/sqm
Energy Intensity (MJ/sqm) Energy Intensity (MJ/sqm)
Scope 1 & 2 GHG Emissions kg
Scope 1 & 2 GHG Emissions kg
Water Intensity (L/sqm)
Water Intensity (L/sqm)
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Property portfolio

Dexus completed developments

Pipeline		Building area1	Project cost2	Yield on cost3	Leased	Final
		sqm	$m	%	%	Completion
Industrial	14 Felstead Drive, Laverton North, VIC (Anmar)	15,700	18	7%	100%	Oct 2017
	66 Foundation Road, Laverton North, VIC (Isuzu)	21,900	26	7%	100%	Jan 2018
Total industrial		37,600	44
Total developments completed		37,600	44

1. At 100%.

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1. Dexus interest in development cost (including cost of land where purchased for development). 3. Yield on cost calculation includes cost of land. 52 Dexus 2018 Half Year Results Presentation

Property portfolio

Dexus committed developments & portfolio capex

Pipeline				Building area1		Project cost	Est. cost to	Yield on cost3	Leased	Completion
				sqm		est.2	completion2	%	%	due
						$m	$m
Office		100 Mount Street, North Sydney, NSW		41,700		231	130	8%	60%	Feb 2019
		180 Flinders Street, Melbourne,	VIC4	20,100		146	145	6-7%	0%	Mid 2020
		Annex, 12 Creek Street, Brisbane, QLD		6,700		30	28	7-8%	0%	Aug 2019
		240 St Georges Terrace, Perth, WA		47,800		165	162	c.7%	35%5	Late 2021
Total office				116,300		572	465
Industrial		1-5 Felstead Drive, Laverton North, VIC		21,900		22	13	8%	100%	May 2018
		41 Foundation Road, Laverton North, VIC		20,700		24	8	7%	100%	Mar 2018
		1-3 Dolerite Way, Greystanes, NSW		8,000		8	1	7%	100%	Mar 2018
		7 Dolerite Way, Greystanes, NSW		26,700		23	1	7%	100%	Mar 2018
		9 Dolerite Way, Greystanes, NSW		6,800		5	1	8%	100%	Mar 2018
		2-6 Dolerite Way, Greystanes, NSW		33,400		28	16	8%	0%	Sep 2018
Total industrial				117,500		110	40
City retail		175 Pitt Street, Sydney, NSW		5,300		30	7	6-7%	72%	Apr 2019
		44 Market Street, Sydney, NSW		1,500		20	19	6-7%	96%	May 2019
		1 Farrer Place, Sydney, NSW		500		5	5	5-6%	42%	Nov 2018
**Total city **	retail			7,300		55	31
Total developments committed				241,100		737	536
Dexus total portfolio capital expenditure			HY18	FY18E
Maintenance capital expenditure			$28.6m	c. $65m
Cash incentives		and leasing costs	$14.6m	c. $40m	1. 2.	At 100%. Dexus interest in development cost (including		cost of land where purchased for development).
					3.	Yield on cost calculation includes cost of land.
Rent free	incentives		$32.3m	c. $60m	4. 5.	Includes associated refurbishment works. 35% of the whole building is committed. Circa		40% of the Woodside space is	committed.
Total capital expenditure			$75.5m	$165-170m
53	Dexus	2018 Half Year Results Presentation

Property portfolio

Dexus uncommitted developments

Pipeline		Building area1 sqm	Project cost est.2 $m	Est. yield on est. project cost3 %
Office	Waterfront Place Precinct Masterplan, Brisbane, QLD (Office)	81,700	275
	11 Talavera Road, Macquarie Park, NSW4	24,000	257
Total office		105,700	532	7-8%
Industrial	Dexus Industrial Estate (Stage 2B & 3), Laverton North, VIC	66,700	94
	Axxess Corporate Park, Mount Waverley, VIC	16,000	70
Total industrial		82,700	164	6-9%
City retail	321 Kent Street Retail Podium, Sydney, NSW	4,800	16
	201 Elizabeth Street, Sydney, NSW	4,900	24
	MLC Centre, 19 Martin Place, Sydney, NSW	12,200	41
		21,900	81	5-6%
Other	Waterfront Place Precinct Masterplan, Brisbane, QLD (Resi & Hotel)	58,000	270
	201 Elizabeth Street, Sydney, NSW (Resi & Hotel)	54,600	276
Total other		112,600	546
Total uncommitted		322,900	1,323

1. At 100%.

2. Dexus interest in development cost (including cost of land where purchased for development). 3. Yield on cost calculation includes cost of land.

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1. Includes associated refurbishment works. 54 Dexus 2018 Half Year Results Presentation

Property portfolio

Dexus development pipeline

			$2.1 billion	$2.1 billion
			Dexus Development Pipeline
	$737 million Total committed projects	$536 million Remaining spend on committed projects		$1.3 billion Total uncommitted projects		Uncommitted projects focused primarily on office & mixed use
			Project cost on uncommitted projects
	Uncommitted projects		FY18		FY19	FY20+
	Office / City Retail - 5 properties				$613m
	Industrial – 2 properties				$164m
	Mixed use - 2 properties				$546m
	Project cost on uncommitted projects				$1,323m

55 Dexus 2018 Half Year Results Presentation

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Transactions

Dexus acquisitions Purchase price $m Interest Settlement MLC Centre, Sydney, NSW $361.3 25% 19 Jul 2017 100 Harris Street, Pyrmont, NSW $327.5 100% 18 Jul 2017 90-110 Mills Road, Braeside, VIC $50.6 100% 25 Jul 2017 56 Berry Street, North Sydney, NSW1 $31.0 50% 1 Dec 2017 Total acquisitions $770.4 Dexus divestments Sale price $m Interest Settlement 30-68 Taras Avenue, Altona North, VIC $13.1 50% 7 Jul 2017 46 Colin Street, West Perth, WA1 $16.8 50% 1 Aug 2017 GP Plus, Adelaide, SA $43.9 100% 22 Dec 2017 11 Waymouth Street, Adelaide, SA1 $101.3 50% Exchanged Total divestments $175.1	Funds Management acquisitions Purchase price $m Interest Settlement
	MLC Centre, Sydney, NSW $361.3 25% 19 Jul 2017 Calvary, Adelaide, SA $107.4 100% 7 Aug 2017 GP Plus, Adelaide, SA $43.9 100% 22 Dec 2017 56 Berry Street, North Sydney, NSW1 $31.0 50% 1 Dec 2017
	Total acquisitions $543.6
	Funds Management divestments Sale price $m Interest Settlement
	30-68 Taras Avenue, Altona North, VIC $13.1 50% 7 Jul 2017 46 Colin Street, West Perth, WA1 $16.8 50% 1 Aug 2017 Myer Distribution Centre, VIC $38.2 100% 31 Jan 2018 11 Waymouth Street, Adelaide, SA1 $101.3 50% Exchanged
	Total divestments $169.4

1. Dexus Office Partnership property in which Dexus owns a 50% interest.

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56 Dexus 2018 Half Year Results Presentation

Funds management Development pipeline

				$2.1 billion	$2.1 billion
			Funds	Management Development1 Pipeline
	$832 million Total committed projects	$360 million Remaining spend on committed projects			$1.3 billion Total uncommitted projects	Uncommitted projects focused primarily on office & retail properties
		Project cost on uncommitted projects in Third Party Funds
	Uncommitted projects			FY17	FY18	FY19/20
	Office - 1 properties				$534m
	Retail - 3 properties				$428m
	Industrial - 1 property				$23m
	Mixed use - 2 properties				$311m
	Project cost on uncommitted Third Party projects				$1,296m

1. Third party funds’ or partners’ share of development spend and including Dexus third party funds’ or partners’ share of Westfield redevelopments. 57 Dexus 2018 Half Year Results Presentation

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Market outlook Lead indicators for office demand are positive

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

Office demand positive across the CBDs Total employment is on the rise Business conditions & confidence is up
Quarterly net absorption Syd CBD Melb CBD White Collar Total Employment Business conditions Business confidence
(‘000sqm) Bris CBD Perth CBD %pa Index
150 8.0% 20
15
6.0%
100
10
4.0%
50 5
2.0% 0
0
0.0% -5
-50 -10
-2.0%
-15
-100 -4.0%
-20
-150 -6.0% -25
Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17
----- End of picture text -----

Office demand positive across the CBDs

Source: JLL, NAB, Dexus Research, ABS.

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58 Dexus 2018 Half Year Results Presentation

Market outlook

Office rents expected to rise as vacancy declines further

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

Forecast vacancy rates Long term average (20 years) - Vacancy in Sydney and Melbourne is below
30% average driving strong growth in office rents
25% - Brisbane and Perth fundamentals
Vacancy rate improving with demand positive over the
20% well below past year
average
15%
10%
5%
0%
Sydney CBD Melbourne CBD Brisbane CBD Perth CBD
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22
----- End of picture text -----

• Vacancy in Sydney and Melbourne is below average driving strong growth in office rents

Source: Dexus Research, JLL.

59 Dexus 2018 Half Year Results Presentation

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Market outlook

Sydney office: solid fundamentals to support growth

Sydney CBD waterfall chart – FY17 to FY22

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

down from 7.1% FY17 vacancy levels. Majority of New supply 31% below average offset new supply Above average withdrawals to Demand positive but expected to run below the historical low of Vacancy to hit 3.4% in FY19 and positive net A lull in supply absorption to new supply to hit 197,000sqm of FY22, but
stock withdrawn in 145,800sqm of last year with the CBD completing in new supply FY20 shortage of spaceaverage due to long term before rising to 5.5% in FY20 drive vacancy lower long-run average remain below expected to vacancy
‘000 sqm
600 + 4.4% - 3.8%
500
223,800sqm -192,600sqm
400 of supply of withdrawals - 1.4%
6.4% = 5.7%
300 = 5.5% = 4.9%
73,000sqm
200100 324,700sqm of vacancy of net absorp 283,000sqm of vacancy 252,300sqmof vacancy 301,800sqm of vacancy
0
Vacancy FY17 New supply Withdrawals Net absorption Vacancy FY20 Vacancy FY21 Vacancy FY22
----- End of picture text -----

Source: Dexus Research, Long term average based on 20 year average as % of stock.

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60 Dexus 2018 Half Year Results Presentation

Market outlook

Sydney CBD supply assumptions: major projects

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

‘000sqm
150
Mooted/Early Feasibility
100
Available
50
0 Pre-committed
-50 Withdrawal
-100
-150
FY18 FY19 FY20 FY21 FY22 FY23 FY24
Source: Dexus Research.
61 Dexus 2018 Half Year Results Presentation
Darling Square 40 York Street 2 Bligh Street Aggregated w'drawals Barrack Place Aggregated w'drawals 275 George Street Sixty Martin Place Wynard Place Wynyard Place (Shell House) Barangaroo South C1 388 George Street David Jones 183-185 Clarence Street Aggregated w'drawals Quay Quarter (AMP) Circular Quay Tower (Lend Lease) 220 George Street 338 Pitt Street Telstra Plaza Aggregated w'drawals 33 Alfred Street 55 Pitt Street Darling Park Tower 4 Martin Place Station Precinct Central Barangaroo City East Zone Substation Project
----- End of picture text -----

Market outlook Sydney CBD office

• Strong growth as vacancy moves towards a low of 3.4% FY19

• Negative net supply in FY18 and FY19

• Vacancy to rise from FY20 but remain below 8% for an extended period

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

‘000sqm Sydney CBD office market
250 12%
200
9%
150
6%
100
50 3%
- 0%
-50
-3%
-100
-150 -6%
-200 -9%
FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22
Net Absorption Net Supply Vacancy (RHS)
----- End of picture text -----

	Sydney CBD office market	At 31 Dec 2017
	Total net lettable area Prime vacancy average	5.04 million sqm 5.1%
	Dexus Sydney CBD exposure
	Net lettable area	697,056sqm
	Number of properties	19
	% of portfolio by value	60%
	Occupancy by area	97.5%
	Occupancy by income	97.2%
	Weighted average lease expiry	4.9 years

Source: JLL Research actual & Dexus Research forecast.

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62 Dexus 2018 Half Year Results Presentation

Market outlook Melbourne CBD office

• Net absorption is the highest of all CBD office markets

• Strong supply pipeline with 470,000sqm being completed in FY19-21

• Short-term outlook is for growth given vacancy is below average

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

‘000sqm Melbourne CBD office market
250 12.5%
200 10.0%
150 7.5%
100 5.0%
50 2.5%
- 0.0%
-50 -2.5%
FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22
Net Absorption Net Supply Vacancy (RHS)
----- End of picture text -----

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

Source: JLL Research actual & Dexus Research forecast.
----- End of picture text -----

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

63 Dexus 2018 Half Year Results Presentation
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	Melbourne CBD office market	At 31 Dec 2017
	Total net lettable area Prime vacancy average	4.74 million sqm 6.0%
	Dexus Melbourne CBD exposure
	Net lettable area	275,936sqm
	Number of properties	8
	% of portfolio by value	8%
	Occupancy by area	95.0%
	Occupancy by income	96.3%
	Weighted average lease expiry	5.2 years

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Market outlook Brisbane CBD office

• The Queensland economy has turned the corner and jobs growth is strong

• Demand strengthened with 33,000sqm of net absorption in 2017

• Market is in well into recovery phase given falling prime vacancy

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

‘000sqm Brisbane CBD office market
150 18%
100 12%
50 6%
- 0%
-50 -6%
-100 -12%
FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22
Net Absorption Net Supply Vacancy (RHS)
----- End of picture text -----

Source: JLL Research actual & Dexus Research forecast.

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

64 Dexus 2018 Half Year Results Presentation
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	Brisbane CBD office market	At 31 Dec 2017
	Total net lettable area Prime vacancy average	2.27 million sqm 10.4%
	Dexus Brisbane CBD exposure
	Net lettable area	250,154sqm
	Number of properties	6
	% of portfolio by value	16%
	Occupancy by area	97.3%
	Occupancy by income	97.4%
	Weighted average lease expiry	4.8 years

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Market outlook Perth CBD office

• Conditions have improved as the drag from mining investment ends

• Market has bottomed with positive take-up and vacancy declining

• Well placed for recovery with rents stabilising in 2017

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

‘000sqm Perth CBD office market
300 30%
250 25%
200 20%
150 15%
100 10%
50 5%
- 0%
-50 -5%
-100 -10%
FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22
Net Absorption Net Supply Vacancy (RHS)
Source: JLL Research actual & Dexus Research forecast.
1. Includes development leasing.
----- End of picture text -----

65 Dexus 2018 Half Year Results Presentation

	Perth CBD office market	At 31 Dec 2017
	Total net lettable area	1.77 million sqm
	Prime vacancy average	18.6%
	DEXUS Perth CBD exposure
	Net lettable area	122,153sqm
	Number of properties	3
	% of portfolio by value	6%
	Occupancy by area	97.5%
	Occupancy by income	96.7%
	Weighted average lease expiry1	4.3 years

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Exchange rates and securities used in statutory accounts

13.4
		31 Dec 2016	30 June 2017	31 Dec 2017
Closing rates for Statement of Financial Position	USD	0.7236	0.7692	0.7800
Average rates for Statement of Comprehensive Income	USD	0.7546	0.7545	0.7791
Post consolidation equivalent amounts		6 mths to	12 mths to	6 mths to
		31 Dec 2016	30 Jun 2017	31 Dec 2017
Average weighted number of securities1		967,947,692	968,484,893	1,017,292,855
Closing number of securities		967,947,692	1,016,967,300	1,017,404,542

1. Used to calculate underlying FFO, FFO, AFFO and distribution per security.

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66 Dexus 2018 Half Year Results Presentation

Glossary

Distribution payout policy:

Funds From Operations (FFO):

Policy is to distribute in line with free cash flow.

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, amortisation of intangible assets, 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.

Weighted Average A measure in years of the average term to expiry of in-place rent. Includes vacancies. Lease Expiry (WALE):

67 Dexus 2018 Half Year Results Presentation

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Important information

• This presentation is issued by Dexus Funds Management Limited (DXFM) in its capacity as responsible entity of Dexus (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 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 security holder or potential investor may require in order to determine whether to deal in Dexus 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 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.

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68

Dexus 2018 Half Year Results Presentation