DEXUS — Interim / Quarterly Report 2019

Feb 5, 2019

Dexus (ASX: DXS)

ASX release

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6 February 2019

2019 Half year results presentation

Dexus provides its 2018 half year results presentation and appendices.

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

For further information please contact:

Investor Relations Media Relations Rowena Causley Louise Murray +61 2 9017 1390 +61 2 9017 1446 +61 416 122 383 +61 403 260 754 rowena.causley@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 $28.9 billion. We believe that the strength and quality of our relationships is 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 $13.9 billion of office and industrial properties. We manage a further $15.0 billion of office, retail, industrial and healthcare properties for third party clients. The group’s $5.2 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.7 million square metres of office workspace across 53 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 27,000 investors from 19 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)

2019 Half Year Results

6 February 2019

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Dexus Funds Management Limited
ABN 24 060 920 783
AFSL 238163 as responsible entity for Dexus
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Agenda

Overview

Darren Steinberg – Chief Executive Officer

Financial results

Alison Harrop – Chief Financial Officer

Property portfolio performance

Kevin George – Executive General Manager, Office

Transactions, developments and trading Ross Du Vernet – Chief Investment Officer

Funds management

Deborah Coakley – Executive General Manager, Funds Management

Summary

Darren Steinberg – Chief Executive Officer

Appendices

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2 Dexus 2019 Half Year Results Presentation

Overview

Megatrends

Dexus’s strategy is underpinned by long term trends

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1 2
Cities and urbanisation Global pension and superannuation industry
Thematic underpins value creation Thematic underpins attraction of like-minded, long-dated
from real estate located in key economic hubs investors to invest alongside Dexus
30.2 41.4
+13.7 +55.6%
26.6
16.6 “Sydney and Melbourne circa 20%
ranked in the top 5 allocated to real
most liveable cities estate, infrastructure
globally” and private equity,
- EIU Liveability Rankings up from 4% in 1997
2017 2060F 2007 2017
1. Source: ABS
2. Source: Willis Towers Watson, Global pension assets study 2018.
3 Dexus 2019 Half Year Results Presentation
1
(USD trillion)2
population (millions) Pension funds total assets
Australian capital cities
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HY19 highlights Overview
Adding value
PROPERTY
-
Leasing activity maintained high portfolio occupancy
PORTFOLIO
FUNDS MANAGEMENT - Growth in funds management unlisted investor base
-
Replenished office development pipeline through the
DEVELOPMENT acquisition of a prime development site at 52 & 60 Collins
Street in Melbourne [1]
TRADING - Achieved $34.7 million trading profits [2]
CAPITAL - Extended debt duration to 7.3 years through the
MANAGEMENT completion of our longest-dated debt transaction
1. Settled on the acquisition of 60 Collins Street, Melbourne on 31 October 2018. Expect to settle on the acquisition of 52 Collins Street, Melbourne in July 2019.
2. Net of tax.
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Overview

Embedded value within the business

PROPERTY PORTFOLIO $13.9 billion $10.07 NTA1 per security FUNDS MANAGEMENT HY19 FFO $27.5 million TRADING 5 key projects to deliver $210-270 million2 of trading profits + +	Short term Medium to long term Short term Medium to long term Short term Medium to long term	- Higher rents and lower incentives continuing to support asset values, particularly in Sydney and Melbourne - Future portfolio value is supported by ownership in CBDs experiencing population growth and infrastructure investment, and the growth in urbanisation - Committed development pipeline providing organic growth - Contribution from new funds/partnerships - Attract new clients to invest alongside through the cycle - FY19 profits de-risked through settlement of 32 Flinders Street, Melbourne - Future projects are diversified across sectors and are expected to deliver $210-$270 million trading profits

1. Net tangible asset backing. 2. Pre-tax.

5 Dexus 2019 Half Year Results Presentation

DEVELOPMENT $5.2 billion group pipeline to deliver organic growth + + Identified circa $1 billion of potential concept opportunities

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Financial results
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Key earnings drivers

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Financial results
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All key earnings drivers delivering in HY19

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Creating value from key earnings drivers
Driver FY19 target HY19 achievements
+4-5% office
PROPERTY LFL income growth Property AFFO [1] of $301.1 million
PORTFOLIO +2.5-3.5% industrial 1.7% office LFL income growth – FY19 +4-5% on track
LFL income growth 5.4% industrial LFL income growth – FY19 +2.5-3.5% on track
Management
FUNDS Operations FFO in line
MANAGEMENT with FY18 FFO of $27.5 million
(FY18 $52.5 million)
$35-40 million of
TRADING Trading profits of $34.7 million [2]
trading profits [2]
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1. AFFO contribution is calculated before finance costs, group corporate costs and tax. Property AFFO is equal to Property FFO of $372.4 million less total portfolio AFFO capex of $71.3 million.

2. Net of tax.

3. 7 Dexus 2019 Half Year Results Presentation

A solid financial result in HY19

Financial results

	HY19 $m HY18 $m Change %
Office property FFO Industrial property FFO	303.8 299.4 1.5% 68.6 64.6 6.2%
Total property FFO Management operations1 Group corporate Net Finance costs Other2	372.4 364.0 2.3% 27.5 25.1 9.6% (14.2) (13.6) (4.4)% (63.2) (63.3) 0.2% (3.9) (4.7) 17.0%
Underlying FFO3	318.6 307.5 3.6%
Trading profits (net of tax)	34.7 14.3 142.7%
FFO	353.3 321.8 9.8%
Adjusted Funds from Operations (AFFO) Distribution payout (% AFFO) Distribution	282.0 246.3 14.5% 98.1% 97.9% 276.7 241.1 14.8%

• Office property FFO growth due to fixed rental increases across the portfolio, offset by divestments including the second tranche of Southgate, Melbourne and 11 Waymouth Street, Adelaide

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• Industrial property FFO growth driven by developments and an acquisition

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• Management operations increased as a result of revaluation growth

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• Continued investment in customer, marketing and technology initiatives

• Management Expense Ratio (MER) benefited from revaluations, reducing to 32 basis points

	HY19 HY18 Change
Underlying FFO per security3 FFO per security Distribution per security AFFO per security	31.3 cents 30.2 cents 3.6% 34.7 cents 31.6 cents 9.8% 27.2 cents 23.7 cents 14.8% 27.7 cents 24.2 cents 14.5%
	HY19 FY18 Change
NTA per security	$10.07 $9.64 4.5%

1. Management operations income includes development management fees.

2. Other includes non-trading related tax expense.

3. Underlying FFO excludes trading profits net of tax.

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Financial results

Strong and diversified balance sheet

Well positioned from a cost and duration perspective

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Maintain a strong balance sheet
FY19
focus
Strengthen debt diversification options
Diversified sources of debt
Debt capital markets 144A Bank debt
60% 7% 40%
USPP Bank facilities
37% 40%
Commercial paper
MTN 2%
14%
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• Extended debt duration and improved diversity through the issuance of two long-dated debt capital markets placements

• $75 million A$ US Private Placement with a term of 20 years

• $30 million A$ MTN with a term of 20 years

• Gearing remains conservative at 23.7%, providing funding capacity for committed developments and optionality to fund uncommitted pipeline

Key metrics	31 Dec 2018	30 Jun 2018
Gearing (look-through)1	23.7%	24.1%
Cost of debt2	4.2%	4.2%
Duration of debt	7.3 years	7.0 years
Hedged debt (incl caps)3	75%	71%
S&P/Moody’s credit rating	A-/A3	A-/A3

1. Adjusted for cash and debt in equity accounted investments.

2. Weighted average for the period, inclusive of fees and margins on a drawn basis.

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1. Average for the period. Hedged debt (excluding caps) was 55% for the 6 months to 31 December 2018 and 58% for the 12 months to 30 June 2018.

2. 9 Dexus 2019 Half Year Results Presentation

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Property portfolio
performance
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Property portfolio performance

Valuation uplifts in HY19

Rental growth drove 58% of office portfolio valuation uplift

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Total Dexus portfolio Office portfolio Industrial
Valuation uplift 100 Mount Valuation uplift
$356.7m Street, North Sydney $98.6m
$456.5m
Up $32.7m or
total Dexus portfolio HY18: $662.9m 13.9% to $269m HY18: $62.3m
valuation uplift [1] DXS 50%
Cap rate [2] interest Cap rate [2] Axxess Corporate Park
Up $12.8m or 5.5% to $246.2m
5.22% ↓ 15 bps 6.14% ↓ 26 bps DXS 100% interest
FY18: 5.37% FY18: 6.40%
5.36% ↓ 16 bps 383 Kent Street,Sydney 23%
total Dexus portfolio 42% Up $20.9m or 5.9%
cap rate [2] 58% to $374.0m
FY18: 5.52% DXS 100% interest 77%
Quarrywest, Greystanes
Rental growth Rental growth Up $24.8m or 18.9% to $156.5m
Cap rate compression Cap rate compression DXS 50% interest
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1. Includes healthcare property revaluation gain of $1.2 million for the 6 months to 31 December 2018. 2. Stabilised portfolio weighted average capitalisation rate.

11 Dexus 2019 Half Year Results Presentation

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Property portfolio performance

Office leasing activity Significant leasing undertaken in Sydney

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2 & 4 Dawn Fraser Avenue,
Sydney Olympic Park
Completed 2 leasing deals
across 18,872sqm, with 59.4%
of total space now leased
91,146sqm
11 Talavera Road,
Office portfolio Macquarie Park
leasing [1] Completed 4 leasing deals
across 6,684sqm
MLC Centre,
Sydney
Completed 16 leasing deals
over 11,065sqm including
9 new tenants
1. Excluding development leasing
2. Including Heads of Agreement.
3. Including Heads of Agreement signed post 31 December 2018.
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100 Mount Street, North Sydney
development
Completed 5 leasing deals
across 10,319sqm,
with leased [2] space
19,458sqm now at 84%
Office
development
leasing 240 St Georges Terrace, Perth
development
Completed 6 leasing deals
across 9,110sqm,
with leased [3] space
now at 64%
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Property portfolio performance

Office portfolio metrics Benefiting from Sydney leasing activity

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Leasing by area [1] Occupancy
$11.7 billion
value 91,146sqm 97.3%
FY18: 96.0%
Sydney leasing spread [1]
Average incentives [1]
+18%
46
properties 11.9% WALE [2]
FY18: 13.9%
4.5 years
FY18: 4.6 years
Effective LFL income
Portfolio one-year
1.5 million +1.7% total return [3]
square metres Face: +2.7%
1 3.0%
On track to grow
to +4-5% for FY19
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Dexus office portfolio vs MSCI at 30 September 2018[4]

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19%
17.3%
17% 16.3%
15.6% 15.3%
15% 14.4%
13.6% 13.2% 13.4%
13% 12.5%
11%
9%
One year Three years Five years
Dexus portfolio Dexus group MSCI
Outperformance driven by Sydney, Melbourne and Brisbane
FY19 Target like-for-like income growth
Focus in office of 4-5%
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• Outperformance driven by Sydney, Melbourne and Brisbane

• Excluding development leasing of 19,458 square metres.

• Weighted average lease expiry.

• Portfolio unlevered total return for 12 months to 31 December 2018.

• Period to 30 September 2018 which reflects the latest available MSCI Australia Annual Property Index (formerly IPD) data available. 13 Dexus 2019 Half Year Results Presentation

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Office portfolio expiry profile

Property portfolio performance

Diversified expiry profile with well-timed exposure to Sydney

• Sydney accounts for 135,513 square metres of office expiries up to and including FY21, representing 19% of office portfolio income

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18%
16.5%
Sydney Total
16%
14%
12.4%
12% 11.5%
10.4%
10%
8%
6%
4% 2.7% 2.6%
2%
0%
Vacant FY19 FY20 FY21 FY22 FY23
FY19 Key expiries FY20 Key expiries FY21 Key expiries FY22 Key expiries
11 Talavera Rd (0.3%) Australia Square (1.1%) Grosvenor Place (1.0%) 123 Albert St (3.9%)
Waterfront Place (0.3%) 1 Margaret St (1.0%) 45 Clarence St (0.9%) 383 Kent St (1.3%)
45 Clarence St (0.3%) 14 Lee St (0.9%) 385 Bourke St (0.7%) 44 Market St (1.0%)
14 Dexus 2019 Half Year Results Presentation
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Property portfolio performance

Office market outlook

Market strength to underpin future performance

Sydney

• Market well-placed amid global uncertainty

• Vacancy low at 4.1% and expected to fall in FY20 given below average supply

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Melbourne

• Strong demand is offsetting supply with FY20 supply 81% pre-committed

• Vacancy low at 3.9% and expected to rise mildly in FY20

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Brisbane

• Planned supply FY20-22 is below average levels

• Vacancy is 13.2% and expected to fall over next 3 years

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Perth

• Market recovery to be aided by a three-year lull in supply from FY20-22

• Vacancy 21.1% and falling given positive demand

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Industrial portfolio metrics

Property portfolio performance

E-commerce demand drives leasing success

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Leasing by area Occupancy
$2.2 billion
value 136,400sqm 96.8%
FY18: 98.3%
Average incentives WALE [1]
65
properties 7.7% 5.0 years
FY18: 12.6% FY18: 4.8 years
Effective LFL income Portfolio one-year
total return [2]
1.4 million
+5.4%
square metres 15.5%
Face: 15.0%
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Dexus industrial portfolio vs MSCI at 30 September 2018 [3]
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15%
14.0%
14% 13.5%
13% 12.8% 12.8% 12.8%
12.3% 12.3%
12% 11.6% 11.6%
11%
10%
9%
One year Three years Five years
Dexus portfolio Dexus group MSCI
-
Outperformance driven by outer and inner-west Sydney
FY19 Target like-for-like income growth
Focus in industrial of 2.5-3.5%
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1. Weighted average lease expiry.

2. Portfolio unlevered total return for 12 months to 31 December 2018.

3. Period to 30 September 2018 which reflects the latest available MSCI Australia Annual Property Index (formerly IPD) data available.

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Property portfolio performance

Sustainability

Advancing pathway to net zero, while creating value for our customers

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Progressed minimum

• 5 star NABERS Energy rating across 904,500sqm of the office portfolio towards target of 1,000,000sqm by 2020

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Supporting Dexus’s Net Zero by 2030 target, agreed terms for one of Australia’s first supply-linked renewable

Energy Supply Agreements with Red Energy, providing long-term price certainty and driving down energy costs for our customers

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Recognised by Carbon Disclosure Project (CDP) for leadership in environmental performance reflecting our commitment to addressing climate change impacts including our goal to achieve net zero emissions by 2030

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Developments (Core & Trading) and Transactions

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Developments & Transactions

Core development pipeline - mixed uses and locations $5.2 billion group pipeline[1] + circa $1 billion potential concept opportunities

Exposure across Australian CBDs Industrial Retail Healthcare Office City retail Mixed use $2,850m $220m $540m $890m $320m $330m ($870m committed) ($110m committed) (Uncommitted) ($130m committed) (Uncommitted) (committed)[2] including: including: including: including: including: including: 180 Flinders Street, Melbourne 175 Pitt Street, Sydney Waterfront Precinct, Quarrywest, Greystanes Knox City Shopping Ctr Calvary Adelaide 12 Creek Street, Brisbane 1 Farrer Place, Sydney Brisbane Dexus Industrial Estate, Carillon City, Perth Hospital 240 St Georges Tce, Perth 44 Market Street, Sydney Laverton North 11 Talavera Road, Macquarie Pk 321 Kent Street, Sydney Recent land bank Waterfront Precinct, Brisbane acquisitions 70% of the pipeline Circa 6.7% of balance sheet FUM is allocated to development[3] at 31 December 2018

Figures are rounded to the nearest $10 million.

1. Includes cost of land where acquired for development.

2. Calvary Adelaide Hospital estimated on-completion value. 3. Includes trading and value-add opportunities.

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Core development pipeline Progress at key projects

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240 St Georges Terrace, Perth
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100 Mount Street, North Sydney

• 10,319 square metres leased during HY19, with leased space[1] now at 84%

• 9,110 square metres leased during HY19, with leased space[2] now at 64%

• On track to deliver yield on cost >7.5% and IRR >17%

• Expected completion has been brought forward by 12 months to late 2020

• Construction topped out, with completion expected May 2019

• Significant leasing success over the past six months

Developments & Transactions

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140 George Street, Parramatta

• Transferred to uncommitted pipeline from concept pipeline

• Shortlisted for a tenant requirement across entire 43,600 square metre building in December 2018

• Including Heads of Agreement.

• Including Heads of Agreement signed post 31 December 2018.

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Trading business delivers

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Developments & Transactions
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FY19 profits de-risked and pipeline progressed

- Settled on sale of 32 Flinders Street, Melbourne securing $34.7 million (post-tax) - Commenced construction of North Shore Health Hub at 12 Frederick Street, St Leonards - Future trading pipeline of $210-$270 million of trading profits (pre-tax) from five trading projects1	- Settled on sale of 32 Flinders Street, Melbourne securing $34.7 million (post-tax) - Commenced construction of North Shore Health Hub at 12 Frederick Street, St Leonards - Future trading pipeline of $210-$270 million of trading profits (pre-tax) from five trading projects1	- Settled on sale of 32 Flinders Street, Melbourne securing $34.7 million (post-tax) - Commenced construction of North Shore Health Hub at 12 Frederick Street, St Leonards - Future trading pipeline of $210-$270 million of trading profits (pre-tax) from five trading projects1	FY19 FY20 FY21 FY22+ $319m Trading profits realised (pre-tax) 14 Trading properties sold and settled 30% Average unlevered project IRR Trading profit track record since FY12	FY19 FY20 FY21 FY22+ $319m Trading profits realised (pre-tax) 14 Trading properties sold and settled 30% Average unlevered project IRR Trading profit track record since FY12	FY19 FY20 FY21 FY22+ $319m Trading profits realised (pre-tax) 14 Trading properties sold and settled 30% Average unlevered project IRR Trading profit track record since FY12	FY19 FY20 FY21 FY22+ $319m Trading profits realised (pre-tax) 14 Trading properties sold and settled 30% Average unlevered project IRR Trading profit track record since FY12
Trading projects	Current use	Trading strategy	FY19	FY20	FY21	FY22+
32 Flinders Street, Melbourne Carpark Rezoning 12 Frederick Street, St Leonards – Stage 1 Industrial Healthcare development Lakes Business Park South Industrial Development 201 Elizabeth Street, Sydney2 Mixed Rezoning and development 436-484 Victoria Road, Gladesville Industrial Rezoning 12 Frederick Street, St Leonards – Stage 2 Industrial Healthcare development

1. Excludes 32 Flinders Street, which settled during HY19.

2. 201 Elizabeth Street, Sydney transferred to trading book in May 2018.

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Developments & Transactions

– Dexus portfolio management capital recycling $9.7 billion Dexus balance sheet transactions since FY12

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$4.8bn $4.9bn
Total
Acquisitions Divestments
FY12 $35m $1,004m
FY13 $1,165m $890m
FY14 $1,721m $244m
US and European Suburban office (Burwood,
Industrial portfolios West Perth, Chatswood) Lumley Centre, Auckland
FY15 $499m $655m
FY16 $45m $923m
FY17 $892m $312m
FY18 $152m $439m
HY19 $300m $449m Secondary industrial (Belrose, Wacol, 108 North Tce, Adelaide Southgate Complex, Melbourne
Rydalmere)
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480 Queen St, Brisbane CPA portfolio Waterfront Place,
Brisbane
100 Mount St, North The Mill, Alexandria MLC Centre, Sydney
Sydney
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• 52% of growth in third party funds management business has occurred through joint acquisitions with third party partners

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Developments & Transactions

Acquisition track record

Focused on core with value-add opportunities

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Waterfront Place, Brisbane Acquired September 2015 Major development opportunity Occupancy: 95.4% Space leased: 16,366sqm Total return[1] : 9.86%

100 Mount St, North Sydney Acquired April 2016 Occupancy: 84% Space leased: 30,683sqm Completion due May 2019 Total return[1] : 31.80%

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MLC Centre, Sydney Acquired July 2017 Occupancy: 97.0% Space leased: 14,412sqm Avg. releasing spread: +27% Avg. incentives: 14% Total return[1] : 11.37%

CPA office portfolio Acquired April 2014 Occupancy: 96.2% Space leased: 564,929sqm Total return[1] : 14.59%

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480 Queen Street, Brisbane Acquired April 2013 Occupancy: 100% Space leased: 65,413sqm Total return[1] : 13.80%

The Mill, Alexandria Acquired January 2017 Occupancy: 99.3%, up from 77.7% at acquisition Avg. releasing spread: +11% Total return[1] : 14.02%

Quarrywest, Greystanes Acquired June 2014 Developed and leased 122,075sqm over 4.5 years Occupancy: 100% Total return[1] : 15.39%

1. Represents annualised unlevered total property return percent per annum since acquisition (excluding acquisition costs).

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Dexus’s focused investment strategy Contributing to long term and sustainable portfolio returns

Developments & Transactions

Transaction outlook and capital allocation

• Activating and funding development pipeline

• Support clients’ investment objectives in existing funds management platform while exploring new growth initiatives

• Selective core acquisitions to meet evolving customer requirements which provide the potential to unlock additional value in the future

Target investment characteristics

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Land holdings in major economic hubs
Proximity to transport and amenity
Attractive to wide range of customers
Optionality to unlock incremental value
Preference for management control
Target 10 year unlevered internal rate of return 7-8%
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Dexus 2019 Half Year Results Presentation

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Funds Management
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Funds Management Growth in unlisted investor base

Funds Management

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Diversified Funds Management platform
HY19 highlights
$15.0 billion
168% growth $15.0bn
in FUM since FY12 on behalf of 73 clients − Addition of new investors including GIC and M&G
$16 $13.9bn from 9 countries Real Estate, both with a growth mandate
$14
$12 − Created a new circa $2 billion logistics joint venture
$10 − Announced conditional agreement to extend
$8 $5.6bn investment in the healthcare property sector
$6
$4 − Progressed the $2.4 billion development pipeline on
$2 behalf of third party partners
$-
2012 2018 HY19
Office Industrial Retail US Industrial Healthcare
Attracted $8.0 billion of third party equity since FY12
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26 Dexus 2019 Half Year Results Presentation

Funds Management

Attracted new investors

Including GIC and M&G Real Estate, both with a mandate to grow

Dexus Australian Logistics Trust

Dexus Industrial Partnership

• −New circa $2 billion trust to invest in Australian logistics properties, seeded with assets from Dexus’s existing portfolio

• GIC initial 25% stake in $1.4 billion core portfolio, with put and call rights over an additional 24% by June 2020

• GIC 49% interest in $138 million development landbank (circa $0.5 billion on completion)

• −Open ended with an indefinite term

• −Active acquisition and development mandate

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• −Secured global investment manager M&G Real Estate as a new investor on the funds platform, purchasing Future Fund’s 50% interest

• −Extended the Partnership’s investment period after achieving strong performance since inception

• −Partnership has growth mandate

• −Active management and core yield strategy

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Funds Management performance All funds performing strongly

Continuing to deliver strong performance and meet investment objectives in HY19

• DWPF outperforming benchmark over one, three, five, seven and 10 years

• Dexus Office Partnership delivered

• 12.09% one-year unlevered total property return

• 14.59% annualised unlevered total property return since inception

DWPF continues to outperform its benchmark over all time periods

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14% 12.54% 13.26% 12.71%
12% 9.68% 11.20% 11.10% 11.49% 10.31% 9.54%
10%
8.00%
8%
6%
4%
2%
0%
1 year 3 years 5 years 7 years 10 years
DWPF return Benchmark return
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Funds Management
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28 Dexus 2019 Half Year Results Presentation

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Summary
29 Dexus 2019 Half Year Results Presentation
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Summary Adding value

• Cautious as a result of local and global uncertainty

• Well positioned to continue to add value supported by

• Positive office market fundamentals driving high portfolio occupancy

• Significant pipeline of development projects creating future value

• Quality unlisted partners to invest alongside through the cycle

• Underpinned by Dexus’s strong balance sheet

• Reaffirm market guidance[1] for the 12 months ending 30 June 2019

• Distribution per security growth of circa 5%

• Barring unforeseen circumstances, guidance is supported by the following assumptions: Impacts of announced divestments and acquisitions; FFO per security growth of circa 3%, underlying FFO per security growth of circa 3% underpinned by Dexus office portfolio like-for-like growth of 4-5%, Dexus industrial portfolio like-for-like income growth of 2.5-3.5%, management operations FFO and cost of debt broadly in line with FY18; trading profits of $35-40 million net of tax; maintenance capex, cash incentives, leasing costs and rent free incentives of $155-165 million; and excluding any further transactions.

30 Dexus 2019 Half Year Results Presentation

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Summary
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Appendices
31
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Delivering sustained value Track record of delivering superior risk-adjusted returns

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Dexus distribution per security (cents) [1]
cps
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6.9%
50 CAGR
since FY12 47.8
45.47
45 43.51
41.04
40
37.56
36.00
35
32.10
30
25
20
FY12 FY13 FY14 FY15 FY16 FY17 FY18
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1. Adjusted for the one-for-six security consolidation completed in FY15. Compound annual growth rate (CAGR) is calculated over six years.

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Dexus 2019 Half Year Results Appendices

32

Financial results

Reconciliation to statutory profit

Reference Item	31 Dec 2018 $m 31 Dec 2017 $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 items1 Other unrealised or one-off items	726.4 997.1 (3.1) 0.7 (456.5) (730.2) (26.3) 9.2 23.7 26.6 7.3 6.5 33.2 30.0 (6.2) (11.6) 12.7 - 42.1 (6.5)
Funds From Operations (FFO)	353.3 321.8
Maintenance and leasing capex Maintenance capital expenditure Cash incentives and leasing costs paid Rent free incentives	(23.7) (28.6) (16.2) (14.6) (31.4) (32.3)
Adjusted Funds From Operations (AFFO)	282.0 246.3
Distribution	276.7 241.1
AFFO Payout ratio	98.1% 97.9%

1. HY19 other unrealised or one-off items includes $29.1 million of unrealised fair value losses on interest bearing liabilities, $3.0 million amortisation of intangible assets, $10.0 million coupon income, rental guarantees received and other.

33 Dexus 2019 Half Year Results Appendices

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Financial results

Management operations profit

	Property	Funds	Development	Management
HY19 ($m)	Management	Management	Management	Operations
Revenue	33.6	31.2	3.4	68.2
Operating expenses	(26.3)	(11.3)	(3.1)	(40.7)
HY19 netprofit	7.3	19.9	0.3	27.5
HY19 margin	22%	64%		40%
HY18 margin	27%	60%		38%

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Dexus 2019 Half Year Results Appendices

34

Financial results

Cash flow reconciliation

		31 Dec 2018	31 Dec 2017
		$m	$m
Cash flow from operating activities		331.3	180.9
add back:	payment for inventory acquisition and capex	9.2	91.8
less:	development costs	(44.8)	(70.0)
add back:	development revenue1	-	90.4
less:	tax on trading profits not yet paid	(14.9)	(6.1)
add back:	capitalised interest	11.0	6.4
less:	adjustments for equity accounted investments	41.9	12.3
add back:	other working capital movements	(7.4)	(9.4)
add back:	transaction costs	3.0	-
Adjusted cash flow from operating activities		329.3	296.3
Rent free income		31.4	32.3
Depreciation and amortisation (including deferred borrowing costs)		(7.4)	(6.8)
FFO		353.3	321.8
Less: payments from maintenance capex and incentives2		(71.3)	(75.5)
AFFO		282.0	246.3
Less:gross distribution		(276.7)	(241.1)
Cash surplus/(deficit)		5.3	5.2

1. Deferred settlement of development revenue.

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

35 Dexus 2019 Half Year Results Appendices

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Financial results Interest reconciliation

	31 Dec 2018	31 Dec 2017
	$m	$m
Total statutory finance costs1	71.4	60.4
Add: unrealised interest rate swap MTM gain/(loss)2	(10.0)	1.1
Add: finance costs attributable to investments accounted for using the equity method	2.4	2.5
Net finance costs for FFO1	63.8	64.0
Add: interest capitalised	11.0	6.4
Gross finance costs for cost of debt purpose	74.8	70.4

1. HY19 excludes interest income of $0.6 million (HY18: $0.7 million).

2. Net fair value loss of interest rate swaps of $16.7 million (HY18: $6.2 million) (per note 2 of the Financial Statements) includes unrealised interest rate swap expense of $10.0 million (HY18 $1.1 million gain) and realised interest rate swap MTM loss of $6.7 million (HY18 $7.3 million gain).

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36 Dexus 2019 Half Year Results Appendices

Financial results

Change in net tangible assets and revaluations

$m $ps Opening net tangible assets1 (1 Jul 18) 9,806.0 $9.64 Revaluation of real estate 456.5 $0.45 Retained earnings2 76.6 $0.08 Amortisation of tenant incentives3 (58.0) ($0.06) Fair value and other movements4 (33.7) ($0.04) Closing net tangible assets1 (31 Dec 18) 10,247.4 $10.07	Investment portfolio Valuation change $m Weighted average cap rate % of portfolio
	Dexus Office portfolio $356.7 5.22% 84% Dexus Industrial portfolio $98.6 6.14% 16% Total Dexus portfolio5 $456.5 5.36%

1. Net tangible assets exclude $73.2 million deferred tax liability relating to management rights.

2. Represents HY19 FFO less distributions.

3. Includes rent straight-lining.

4. Primarily includes fair value movements of derivatives and interest bearing liabilities, deferred tax, gain from sale of investment properties, movement in reserves and other. 5. Includes healthcare property revaluation gain of $1.2 million.

5. 37 Dexus 2019 Half Year Results Appendices

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Financial results

Direct property portfolio book value movements

		Office1	Industrial1	Dexus total1	Trading assets2
		$m	$m	$m	(inventory) $m
Opening direct property		11,038.4	2,245.1	13,283.5	544.7
Lease incentives	3	37.0	10.6	47.6	2.6
Maintenance capex		21.0	2.7	23.7	0.1
Acquisitions		213.2	189.8	403.0	-
Developments 4		89.9	23.4	113.3	9.5
Disposals 5		(33.5)	(389.5)	(423.0)	(130.2)
Revaluations 6		356.8	98.5	455.3	-
Amortisation		(56.3)	(7.9)	(64.2)	(2.7)
Rent straightlining		3.0	3.2	6.2	0.4
Closing balance at the end of the period		11,669.5	2,175.9	13,845.4	424.4

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.

4. Excludes healthcare.

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38 Dexus 2019 Half Year Results Appendices

Capital management HY19 position

Debt maturity profile

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$m
800
700
600
500
400
300
200
100
-
DCM CPA MTN Bank HWPF Bank
39 Dexus 2019 Half Year Results Appendices
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39
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	Key metrics	31 Dec 2018	30 Jun 2018
	Total debt1	$3,558m	$3,360m
	Headroom (approximately)2	$1.0bn	$0.9bn
	Gearing (look-through)3	23.7%	24.1%
	Covenant gearing (covenant4 <55%)	23.2%	23.7%
	Interest cover (covenant4 >2.0x)	5.2x5	4.9x
	Priority debt (covenant4 <30%)	0%	0%

1. Total debt does not include debt in equity accounted investments. 2. Undrawn facilities plus cash.

2. Adjusted for cash and debt in equity accounted investments. 4. As per public bond covenants.

3. Look-through interest cover is 5.0x.

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Capital management Interest rate hedging profile

Hedge maturity profile

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$m
3,000 4.0%
2,500 3.5%
2,000 3.0%
1,500 2.5%
1,000 2.0%
500 1.5%
- 1.0%
FY19 FY20 FY21 FY22 FY23 FY24
Interest Rate Swaps Interest Rate Caps
Net fixed debt Weighted Average Hedge Rate (excl margin)
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Hedging profile	31 Dec 2018 30 Jun 2018
Average amount of debt hedged1 Average amount of debt hedged excluding caps Weighted average interest rate on hedged debt2 Cost of debt3 Weighted average maturity of hedges	75% 71% 55% 58% 2.8% 2.9% 4.2% 4.2% 6.0 years 4.8 years

1. Average amount hedged for the period (including caps). 2. Including fixed rate debt (without credit margin).

2. Weighted average for the period, inclusive of fees and margins on a drawn basis.

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40 Dexus 2019 Half Year Results Appendices

Capital management Debt facilities[1]

Debt faciliti	es1
	Facility limit A$m	Drawn A$m	Maturity	Currency
Bilateral bank debt	645 280	234 220	FY2020 FY2021	A$ A$
	150	50	FY2022	A$
	100	100	FY2023	A$
	350	100	FY2024	A$
Commercial paper2	150 100	0 97	FY2025 FY2023	A$ A$
Medium term notes	160	160	FY2023	A$
	185	185	FY2026	A$
	130	130	FY2027	A$
	30	30	FY2039	A$
US senior notes (144A)3	305	305	FY2021	US$
US senior notes (USPP)3
Series 1	291	291	Jul-23 - Jul-28	US$
Series 2	225	225	Feb-24 - Feb-27	US$
Series 3	286	286	Dec-24 - Dec-26	US$
Series 4 (A$)	100	100	Jun-28	A$
Series 5	503	503	Nov-29 - Nov-32	US$
Series 5 (A$)	150	150	Nov-29 - Nov-32	A$
Series 6 (A$)	75	75	Oct-38	A$

41 Dexus 2019 Half Year Results Appendices

	Facility limit	Drawn
	A$m	A$m
Sub total	4,215	3,241
Currency translation and fair value adjustments	328	328
Deferred borrowing costs	(11)	(11)
Total interest bearing liabilities	4,532	3,558
Bank guarantee utilised		(44)
Cash		37
Headroom including cash		967

1. Does not include debt facilities in equity accounted investments: $74.8 million December 2019, $11.5m December 2022, $42.8 million August 2022. 2. Maturity date of commercial paper standby facility. 3. 144A and USPP amount shown at the cross-currency swap contract rate.

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Property portfolio

Office and Industrial key metrics as at 31 December 2018

Key metrics	Office Industrial
Amount of space leased1	91,146sqm2 136,400sqm
No. of leasing transactions	1192 40
Occupancy by income	97.3% 96.8%
Occupancy by area	97.0% 97.8%
Average incentives	11.9% 3 7.7% 4
No of effective deals	43 19
Weighted Average Lease Expiry (WALE)	4.5 years 5.0 years
Retention	61% 65%
Like-for-like income growth	Face 2.7% Face 15.0%
	Effective 1.7% Effective 5.4%

1. Including Heads of Agreement.

2. Excluding development leasing of 19,458sqm across 19 leasing transactions. 3. Gross basis excluding development leasing. 4. Net basis.

42 Dexus 2019 Half Year Results Appendices

Property portfolio

Office portfolio diversification

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Office by asset type
Prime Grade
86%
Premium Grade 31%
Carpark <1%
Development 7% $11.7bn
Heritage <1% 14%
Land <1%
Office Park 2%
A Grade 55%
B Grade 5%
43 Dexus 2019 Half Year Results Appendices
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Office by location
Sydney
CBD/Fringe
WA 5% 58%
ACT 1%
QLD 15% $11.7bn NSW 70%
VIC 9%
Sydney Metro
11%
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Property portfolio

Office lease expiry profiles by region

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15% Sydney CBD 11.1%12.2% 11.0% 10.6% 14.1% 13.0% Income12.5% 12.5%Area 30% Brisbane CBD 27.8% 28.6% Income Area
10% 20% 17.2% 18.9%
11.7%
5% 10% 7.8%
2.3% 2.0% 2.2% 2.3% 2.1% 2.1% 2.9% 3.5% 3.6% 3.8%
0% 0%
Available FY19 FY20 FY21 FY22 FY23 Available FY19 FY20 FY21 FY22 FY23
20%25% Sydney Suburban 21.9% 23.4% Income Area 20% Melbourne CBD 16.5% 17.0% Income Area
15.8% 15.7% 15.0% 15% 12.4%
15% 12.0%
8.8% 9.5% 10%
10%5% 3.3% 3.6% 4.9% 4.6% 5% 4.9% 2.4% 5.2% 5.7% 6.2% 4.9% 5.1%
0.2% 0.1%
0% 0%
Available FY19 FY20 FY21 FY22 FY23 Available FY19 FY20 FY21 FY22 FY23
Dexus Office [1] Value ($m) Cap rate(%) Yield(%) [2] 20% Perth CBD 16.2% Income Area
Sydney CBD 6,631 5.0% 5.1% 15% 13.0%
Sydney Suburban 1,000 5.7% 5.5% 10% 10.6%9.9% 9.3% 8.8%
Melbourne CBD 950 5.2% 6.0% 4.5% 5.4%
Brisbane CBD 1,506 5.5% 6.6% 5%
Perth CBD 275 6.6% 8.8% 0.6% 0.6% 0.0%0.0%
0%
1. Includes stabilised properties only. Excludes Canberra and Adelaide office properties. Available FY19 FY20 FY21 FY22 FY23
2. Passing FFO yield based on annualised Property Funds From Operations for the month of January 2019.
44 Dexus 2019 Half Year Results Appendices
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Property portfolio Office top 10 customers

Office customers1	S&P rating	% of income2
Wilson Parking	Not rated	3.6%
Commonwealth of Australia	AAA	3.1%
Rio Tinto	A	2.9%
Deloitte Services	Not rated	1.7%
State of Victoria Commonwealth Bank of Australia NBN	AAA AA- Not rated	1.5% 1.5% 1.0%
King & Wood Mallesons	Not rated	1.0%
BDO Services	Not rated	1.0%
Shell	AA-	1.0%

1. Total Dexus portfolio includes executed Heads of Agreement at 31 December 2018.

2. Annualised income is based on 31 December 2018 (for leases which have already commenced) or first month post lease commencement (for leases which have not yet commenced).

3. 45 Dexus 2019 Half Year Results Appendices

Diversity of office customers (by income)

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100% Other
Non-metallic mining/quarrying
Pharmaceutical wholesaling
90%
Employment Placement and Recruitment Services
Superannuation
80% Other public administration
Construction services
Education and training
70%
Engineering Consultancy Services
Healthcare and social assistance
60% Oil and Gas
Retailing (non-food)
50% Food Retailing
Investment banks
Insurance
40% State Government
Car park services
30% Metal ore mining
Federal Government
Other finance
20% Information media and telecommunications
Accounting services
10% Banks & building societes
Rental & Real Estate services
Business Services Other
0% Legal services
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Property portfolio Industrial portfolio diversification

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Industrial by asset type
Industrial
Land 5%
estate 43%
Data centre
4%
$2.2bn
Distribution
centre 20%
Business park
28%
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Industrial by location
SA 1%
QLD 9%
NSW 54%
$2.2bn
VIC 36%
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46 Dexus 2019 Half Year Results Appendices

Property portfolio

Limited industrial leasing risk[1]

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Renewed lease across 23,231sqm at Gillman 3,350sqm vacancy and 43,709sqm FY19 expiry at Gillman
Solved solving 1.0ppt of expiry in FY19 Focus as at FY18
during for
HY19 Secured new tenant at 2-4 Military Road, FY19 29,933sqm FY20 expiry at Kings Park Industrial Estate
Matraville over 12,355sqm with no downtime
16% 14.5%
14%
12% 10.8%
10% 9.6% 9.6%
8%
6%
4% 3.2%
2.3%
2%
0%
Available FY19 FY20 FY21 FY22 FY23
FY19 Key expiries FY20 Key expiries FY21 Key expiries FY22 Key expiries
Axxess Corp Park (1.0%) Axxess Corp Park (1.8%) Eastern Creek (1.3%) Axxess Corp Park (3.8%)
Lakes BP (North) (0.4%) Kings Park (1.7%) Axxess Corp Park (2.0%) 12-18 Dist Dr, Laverton North (2.7%)
1 Foundation Pl, Greystanes (0.4%) Arthur St, Flemington (1.0%) The Mill (1.0%) Whicker Road, Gil/man( 1.2%)
1. By industrial income, including completed developments and acquisitions.
47 Dexus 2019 Half Year Results Appendices
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Property portfolio

Industrial lease expiry profiles by region

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Income Area 30% Income Area
20%15% Sydney 12.5% 16.5% 12.8% 13.4% 20% Melbourne 20.3% 23.8%
10% 10.0% 11.8% 9.0% 11.0% 14.2%
5% 1.4% 0.8% 2.0% 1.8% 6.8% 10% 5.1% 1.6% 2.6% 2.0% 5.9% 4.2% 7.4% 5.5%
0%
0% Available FY19 FY20 FY21 FY22 FY23
Available FY19 FY20 FY21 FY22 FY23 30%
Brisbane Income Area
22.8%
20%
15.0%
11.0%
8.9%
10%
4.4% 5.4%
0.3%0.3% - - - -
0%
Available FY19 FY20 FY21 FY22 FY23
Value Cap rate Yield [2]
Dexus Industrial [1] ($m) (%) (%) 60% Adelaide 52.6% 51.3% Income Area
Sydney 1,033 5.5% 5.7% 50%
Melbourne 677 6.1% 6.4% 40%
30%
Brisbane 181 5.7% 5.7% 19.7%17.8%
Adelaide 22 11.0% 12.5% 20%10% 10.7% 14.4% 4.5% 5.0% 12.4% 11.5% - -
0%
Available FY19 FY20 FY21 FY22 FY23
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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 2019.

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48 Dexus 2019 Half Year Results Appendices

Property portfolio

Industrial top 10 customers

Industrial customers1	% of income2
Autosports Group	0.7%
IBM Australia	0.6%
Reece	0.5%
AWH Pty Ltd	0.5%
Coles	0.4%
Wesfarmers	0.4%
Symbion Health	0.3%
Visy	0.3%
Simon National Carriers	0.3%
Fedex	0.3%

1. Total Dexus portfolio includes executed Heads of Agreement at 31 December 2018. 2. Annualised income is based on 31 December 2018 (for leases which have already commenced) or first month post lease commencement (for leases which have not yet commenced).

49 Dexus 2019 Half Year Results Appendices

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

Office and industrial sustainability metrics

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Office Energy and GHG Emissions Intensity 855.4 Office Water Intensity Dexus office NABERS Energy NABERS Water
609.0 portfolio average rating average rating
655.3
Dec 14 4.6 3.5
133.7
Dec 15 4.7 3.8
329.0
Dec 16 4.8 3.6
68.8 Dec 17 4.8 3.6
Dec 18 5.0 3.6
46.0% energy intensity reduction
23.4% water intensity reduction
48.5% emissions intensity reduction Listed Office
NABERS Energy ratings
5.5 stars
Industrial Energy and GHG Emissions Intensity Industrial Water Intensity 291,389sqm
43%
34.7 357.7
8.7 312.8 5 star 244,945sqm5 stars
Office portfolio 36%
average
14.7 1 star
2.9 1,275sqm <1%
57.8% energy intensity reduction
66.1% emissions intensity reduction 14.4% water intensity increase 30,548sqm4 stars 4.5 stars
5% 106,889sqm
16%
Note: Data in charts is unaudited. GHG = greenhouse gas
1. Water consumption for industrial properties is primarily under the control of tenants.
50 Dexus 2019 Half Year Results Appendices
CO2-e/sqm
Energy Intensity (MJ/sqm) ope 1 & 2 GHG Emissions kg Water Intensity (L/sqm)
Sc
FY08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FY08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
CO2-e/sqm
Energy Intensity (MJ/sqm) pe 1 & 2 GHG Emissions kg Water Intensity (L/sqm)
FY08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Sco FY08 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Property portfolio

Dexus committed developments & portfolio capex – Core hold

Pipeline			Building	Project cost	Project cost	Est. cost to	Yield on	Leased	Completion	Third Party	Third Party	Third Party
			area1		est.2	completion	cost3	%	due		partner
			sqm		$m	$m	%				interest %
Office	100 Mount Street, North Sydney, NSW		42,200		233	73	7-8%	84%	May 2019			50%
	180 Flinders Street, Melbourne, VIC		20,700		146	124	6-7%	39%	Mid 2020
	Annex, 12 Creek Street, Brisbane, QLD		7,300		31	25	7-8%	0%	Late 2019			50%
	240 St Georges Terrace, Perth, WA		46,900		193	122	6-7%	64%4	Late 2020
Total office			117,100		603	343
Industrial	2-6 Dolerite Way, Greystanes, NSW		33,900		29	5	7-8%	100%	Early 2019			50%
	47 & 53 Foundation Road, Laverton North, VIC		33,300		35	19	c.7%	0%	Mid 2019
	3 Clearwater Place, Laverton North, VIC		7,300		31	29	c.6%	100%	Early 2020
	380 Dohertys Road, Laverton North, VIC		9,100		12	9	c.7%	100%	Late 2019
Total industrial			83,600		106	62
City retail	175 Pitt Street, Sydney, NSW		5,300		33	8	c.6%	91%	Mid 2019			50%
	44 Market Street, Sydney, NSW		1,400		20	8	c.6%	56%	Mid 2019
	1 Farrer Place, Sydney, NSW		500		6	0.5	c.4%	71%	Early 2019
	321 Kent Street, Sydney, NSW		4,100		21	5	c.6%	92%	Mid 2019
Total cityretail			11,300		80	21
Total developments committed			212,000		790	426
Dexus totalportfolio capital expenditure		HY19	FY19E
Maintenance capital Cash incentives and	expenditure leasing costs	$23.7m $16.2m	$60-65m $30-35m	1. 2.	At 100%. Dexus interest in development cost (including cost of land where purchased for and income earned through development).				development and excludes downtime
Rent free incentives		$31.4m	$60-65m	3. 4.	Target yield on cost calculation includes cost of land, downtime and income earned through development. Includes Heads of Agreement signed post 31 December 2018.
Total capital expenditure		$71.3m	$155-165m

51 Dexus 2019 Half Year Results Appendices

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Property portfolio

Dexus uncommitted developments – Core hold

Pipeline		Building area1	Project cost	Est. yield on est.	Third Party
		sqm	est.2	project cost3 %	partner
			$m		interest %
Office	Waterfront Precinct Masterplan, Brisbane, QLD (Office)	81,700	405		50%
	11 Talavera Road, Macquarie Park, NSW4	22,500	188
	140 George Street, Parramatta, NSW	43,600	211		50%
	60 & 52 Collins Street, Melbourne, VIC	27,500	567
Total office		175,300	1,370	6-8%
Industrial	Dexus Industrial Estate (Stage 2B & 3), Laverton North, VIC	36,200	38
	11-167 Palm Springs, Ravenhall, VIC	380,100	122		74.5%
	425-479 Freeman Road, Richlands, QLD	53,500	41		49%
	54 Ferndell Street, South Granville, NSW	54,800	68		49%
Total industrial		524,600	270	6-8%
City retail	MLC Centre, 19 Martin Place, Sydney, NSW	12,800	55		25%
Total city retail		12,800	55	5-6%
Other	Waterfront Precinct Masterplan, Brisbane, QLD (Resi & Hotel)	58,000	270		50%
Total other		58,000	270
Total uncommitted		770,700	1,965

1. At 100%.

2. Dexus interest in development cost (including cost of land where purchased for development and excludes downtime and income earned through development).

3. Target yield on cost calculation includes cost of land, downtime and income earned through development. 4. Includes associated refurbishment works. 52 Dexus 2019 Half Year Results Appendices

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Transactions[1]

Dexus acquisitions	Purchase	Interest	Settlement
	price $m
11-167 Palm Springs Road, Ravenhall, VIC2	$25.5	25.5%	10 Dec 2018
425-479 Freeman Road, Richlands, QLD3	$13.5	51%	Feb 2019
54 Ferndell Street, South Granville, NSW3	$31.4	51%	13 Sep 2018
60 Collins Street, Melbourne, VIC 52 Collins Street, Melbourne, VIC	$160.0 $70.0	100% 100%	31 Oct 2018 Jul 2019
Dexus Australian Logistics portfolio (DALT)4 (tranche 1)	$1,055.3	75%	10 Dec 2018
Total acquisitions	$1,355.7
Dexus divestments	Sale	Interest	Settlement
	price $m
Land parcels, Laverton North, VIC	$6.2	100%	Jul/Aug 2018
32 Flinders Street, Melbourne	$87.1	100%	Aug 2018
Land parcels, Laverton North, VIC	$3.6	100%	Nov 2018/Jan 2019
Dexus Australian Logistics portfolio (DALT)4 (tranche 1)	$1,407.1	100%	10 Dec 2018
Total divestments	$1,504.0

53 Dexus 2019 Half Year Results Appendices

Funds Management acquisitions	Purchase	Interest	Settlement
	price $m
11-167 Palm Springs Road, Ravenhall, VIC2	$74.5	74.5%	10 Dec 2018
425-479 Freeman Road, Richlands, QLD3	$13.0	49%	Feb 2019
54 Ferndell Street, South Granville, NSW3	$30.1	49%	13 Sep 2018
1035-1051 Nudgee Road & 10 Buchanan Road Banyo, QLD	$34.3	100%	20 Nov 2018
Dexus Australian Logistics portfolio (DALT)4 (tranche 1)	$351.8	25%	10 Dec 2018
Total acquisitions	$503.7
Funds Management divestments	Sale	Interest	Settlement
	price
	$m
Sturt Mall, Wagga Wagga, NSW	$73.0	100%	2 Aug 2018
Total divestments	$73.0

1. Transactions include properties in property synopsis and excludes sundry properties. 2. Forms part of the DALT transaction, DXS interest 25.5%, DWPF interest 50% and GIC interest 24.5%. Ravenhall Tranche 2 settlement is expected August 2019.

2. Forms part of the DALT transaction with GIC taking a 49% interest.

3. Tranche 2 of DALT transaction - GIC is expected to increase its interest in the seed portfolio to 49% by June 2020, through Tranche 2 of the DALT transaction. Dexus’s interest in the seed core portfolio would reduce to 51%

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Funds management

Funds management development pipeline

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$2.4 billion
Funds management development [1] pipeline
$656 million $160 million $1.7 billion Uncommitted projects focused
Remaining spend on committed primarily on office and retail
Total committed projects Total uncommitted projects
projects properties
Project cost on uncommitted projects in Funds Management business
Uncommitted projects FY19 FY20 FY21+
Office - 3 properties incl. city retail $670m
Retail - 2 properties $322m
Industrial - 4 properties $486m
Mixed use - 1 property $270m
Project cost on uncommitted Funds management projects $1,748m
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1. Third party funds’ or partners’ share of development spend and including Dexus third party funds’ or partners’ share of Westfield redevelopments and estimated on-completion value for Calvary Adelaide Hospital.

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54 Dexus 2019 Half Year Results Appendices

Market outlook

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South East Queensland Major Projects - $46 billion [1]
Infrastructure pipeline to support demand - Bruce Highway (Caloundra Road to Sunshine
Motorway)
- Toowoomba Second Range Crossing
Western Australia Major Projects - $8 billion [1] - Gateway Motorway North
---- Mitchell Freeway widening and extensionKwinana Freeway upgradeNorthLink WAGreat Northern Highway upgrade ---- Logan Enhancement ProjectIpswich Motorway (Rocklea to Darra)Pacific Motorway (Eight Mile Plains to Daisy Hill)Kingsford Smith Drive
- Wanneroo Road upgrade and grade separation - Cross River Rail
- Murdoch Activity Centre Access - Brisbane Metro
- Leach Highway upgrade Carrington Road to - Inland Rail Queensland segments
Stirling Highway - InterlinkSQ Freight Terminal
- Reid Highway upgrade $244 billion [2] proposed - Brisbane Airport second runway
- Perth Metronet station upgrades tunnelling and line extensions infrastructure spend
- Kwinana/Cockburn intermodal terminal stage 2 New South Wales Major Projects - $87 billion [1]
- NorthConnex Linking M1 to M2
- WestConnex (M4 new and widening)
- M5 new and link to M4 and M12 new
Victoria Major Projects – $40 billion [1] - Outer Sydney Orbital
--- City Link-Tullamarine wideningWest Gate Tunnel projectNorth East Link --- Parramatta Light RailSydney CBD and SE Light RailInner West Light Rail
-- Monash Freeway upgradeM80 Ring Road -- Sydney Metro (North West, City South West)North South Rail Link via new airport
- Melbourne Metro Tunnel - Airport-Campbelltown/Macarthur link
--- Regional Network Development PlanMurray Basin Rail UpgradeTullamarine Airport Rail Link --- Moorebank Intermodal TerminalParkes National Logistics Hub AscianoWestern Sydney inland container terminal St Marys
- Inland Rail Queensland to Victoria - Badgerys Creek airport
1. State infrastructure expenditure from State Government budgets over the next 3.5 years.
2. Deloitte Access Economics forecast including uncommitted projects under consideration.
55 Dexus 2019 Half Year Results Appendices
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Market outlook

Industrial sector benefiting from the e-commerce thematic

• Industrial activity supported by population growth, infrastructure investment and e-commerce

• E-commerce tenants accounted for a growing proportion of new industrial leasing activity

• Studies show e-commerce tenants require more industrial floorspace (2-3 times more) than traditional retailers

• Australian online sales grew by 10.7% in the year to November 2018[1]

• Industrial rents and land values rising in Sydney and Melbourne

• Positive investor sentiment and strong investment demand

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Sydney e-commerce tenant take-up vs total
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‘000sqm E-commerce related Remainder
1,200
1,000
800 10yr average = 568,000sqm
600
400
200
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD
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1. NAB online retail sales index. Source: JLL Research.

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56 Dexus 2019 Half Year Results Appendices

Market outlook

Sydney office rents in perspective

• Companies have steadily increased the density of workers per square metre of office space – so rent paid goes further now than in the past

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$/sqm Gross effective rents in Sydney CBD
1,050
Nominal rent
950
850
Rents adjusted for
750 workspace density
650
Adjusted for inflation and
workspace density
550
450
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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Source: Dexus Research, CBRE, JLL Research City of Sydney, DAE.

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57 Dexus 2019 Half Year Results Appendices
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Market outlook

CBD office market to benefit from ‘cities’ thematic

• Employment growth in inner city areas and CBDs is faster than other regions

• Australian capital cities to add circa 14 million people by 2060

• CBDs to benefit from new infrastructure investment (e.g. light rail, metro rail)

• Trend to inner-city living and a ‘live/work/play’ ethos

• Businesses value CBD locations for attracting and retaining talented staff

• CBDs foster ideas, collaboration and productivity

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NSW Employment growth by region
Index State Greater City Inner City
150
140
130
120
110
100
90
Nov-08 Nov-10 Nov-12 Nov-14 Nov-16 Nov-18
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Source: ABS, Dexus Research.

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58 Dexus 2019 Half Year Results Appendices

Market outlook

Office demand holding up while businesses appear more cautious

Office demand positive across the CBDs Total employment growth is positive

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Business conditions & confidence easing
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Quarterly net absorption
(‘000sqm) %pa Index
8% 20
150
15
6%
100
10
4%
50 5
2% 0
0
0% -5
-50 -10
-2%
-15
-100
-4%
-20
-150 -6% -25
Dec-08 Dec-10 Dec-12 Dec-14 Dec-16 Dec-18 Nov-08 Nov-10 Nov-12 Nov-14 Nov-16 Nov-18 Dec-08 Dec-10 Dec-12 Dec-14 Dec-16 Dec-18
Syd CBD Melb CBD Bris CBD Perth CBD White Collar Total Employment Business conditions Business confidence
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Source: Dexus Research, JLL Research, NAB, ABS.
59 Dexus 2019 Half Year Results Appendices
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Market outlook

Office rents firm as vacancy declines further

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Forecast vacancy rates
Long term average (20 years)
25%
20%
Vacancy rate
15% well below
average
10%
5%
0%
Sydney CBD Melbourne CBD Brisbane CBD Perth CBD
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY17 FY18 FY19 FY20 FY21 FY22 FY23
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• Vacancy in Sydney and Melbourne is well below average driving strong growth in rents

• Brisbane and Perth fundamentals improving with demand positive over the past year

Source: Dexus Research, JLL Research.

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60 Dexus 2019 Half Year Results Appendices

Market outlook

Sydney office: solid fundamentals to support growth

Sydney CBD waterfall chart - FY18 to FY21

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FY18 vacancy down
from 6.4% in FY17 with Total completions Demand a little lower
Vacancy to fall below
75,000sqm of stock below average. Many Moderate withdrawals than the 20yr average 3.0% in FY20 before
withdrawn in the CBD planned projects to due to shortage of
rising to 4.2% in FY21
complete FY22+ space
‘000sqm
600
+5.7% - 3.6%
500
-182,000sqm
400 284,000sqm of withdrawals - 2.3%
of supply
300 116,000sqm
4.5% of net absorption =c4.2%
200
228,000sqm 215,000sqm
100 of vacancy of vacancy
0
Vacancy FY18 New supply FY18-FY21 Withdrawals FY18-FY21 Net absorption FY18-FY21 Vacancy FY21
Source: Dexus Research, LT average based on 20 year average as % of stock.
Difference due to rounding.
61 Dexus 2019 Half Year Results Appendices
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Sydney supply outlook Major office projects

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‘000sqm
150
100
50
0
-50
Mooted/Early Feasibility
-100 Available
Withdrawal
Pre-committed
FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
Source: Dexus Research.
62 Dexus 2019 Half Year Results Appendices
Barrack Place York & George Aggregated w'drawals Daramu House Sixty Martin Place 66 King 231 Elizabeth Aggregated w'drawals 183-185 Clarence Street 275 George Street 55 Market Bligh House Telstra Plaza Wynyard Place 388 George Street Aggregated w'drawals Henry Davis York Building Quay Quarter (AMP) Aggregated w'drawals 220 George Street 4-6 York David Jones International House 338 Pitt Street 55 Pitt Street Darling Park Tower 4 Aggregated w'drawals Central Barangaroo 458-468 George Street One Shelley
Circular Quay Tower (Lend… Martin Place Station Precinct Sydney Cove AMP Building 256 Pitt (Metro Station North)
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Market outlook

Sydney CBD office

• Vacancy lowest level in 18 years (4.1%)

• Demand likely to taper given slower business conditions

• Modest level of construction next 3 years

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‘000sqm Sydney CBD office market
250 12%
200 9%
150
6%
100
50 3%
- 0%
-50
-3%
-100
-150 -6%
-200 -9%
FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23
Net Absorption Net Supply Vacancy (RHS)
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Source: JLL Research actual and Dexus Research forecast. 1. Includes stabilised properties only.

63 Dexus 2019 Half Year Results Appendices

	Sydney CBD office market	At 31 Dec 2018
	Total net lettable area	5.04 million sqm
	Prime vacancy average	4.0%
	Dexus Sydney CBD exposure1
	Net lettable area	703,904sqm
	Number of properties	19
	% of portfolio by value	58%
	Occupancy by area	97.5%
	Occupancy by income	97.2%
	Weighted average lease expiry	4.7 years

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Market outlook Melbourne CBD office

• Net absorption is the highest of all CBD office markets

• Strong supply pipeline with 447,000sqm of net supply in FY19-21

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

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‘000sqm Melbourne CBD office market
200 12.5%
10.0%
150
7.5%
100
5.0%
50
2.5%
- 0.0%
-50 -2.5%
FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23
Net Absorption Net Supply Vacancy (RHS)
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	Melbourne CBD office market	At 31 Dec 2018
	Total net lettable area	4.78 million sqm
	Prime vacancy average	3.0%
	Dexus Melbourne CBD exposure1
	Net lettable area	200,689sqm
	Number of properties	5
	% of portfolio by value	9.5%
	Occupancy by area	99.9%
	Occupancy by income	99.8%
	Weighted average lease expiry	5.5 years

Source: JLL Research actual and Dexus Research forecast.

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1. Includes stabilised properties only.
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64 Dexus 2019 Half Year Results Appendices

Market outlook Brisbane CBD office

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

• Demand strengthened with 27,000sqm of net absorption in 2018

• Supply significant but manageable given positive demand

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‘000sqm Brisbane CBD office market
150 18%
100 12%
50 6%
- 0%
-50 -6%
-100 -12%
FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23
Net Absorption Net Supply Vacancy (RHS)
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	Brisbane CBD office market	At 31 Dec 2018
	Total net lettable area	2.25 million sqm
	Prime vacancy average	7.2%
	Dexus Brisbane CBD exposure1
	Net lettable area	250,591sqm
	Number of properties	6
	% of portfolio by value	15%
	Occupancy by area	95.5%
	Occupancy by income	97.9%
	Weighted average lease expiry	4.2 years

Source: JLL Research actual and Dexus Research forecast.

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1. Includes stabilised properties only.
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65 Dexus 2019 Half Year Results Appendices
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Market outlook Perth CBD office

• Conditions have improved as local economy has turned the corner

• Market is in recovery mode with positive take-up and vacancy declining

• Signs of rental growth and incentives expected to fall

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‘000sqm Perth CBD office market
300 30%
250 25%
200 20%
150 15%
100 10%
50 5%
- 0%
-50 -5%
-100 -10%
FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23
Net Absorption Net Supply Vacancy (RHS)
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	Perth CBD office market	At 31 Dec 2018
	Total net lettable area	1.82 million sqm
	Prime vacancy average	16.0%
	Dexus Perth CBD exposure1
	Net lettable area	74,719sqm
	Number of properties	2
	% of portfolio by value	5%
	Occupancy by area	99.4%
	Occupancy by income	99.4%
	Weighted average lease expiry	5.6 years

Source: JLL Research actual and Dexus Research forecast.

1. Includes stabilised properties only.

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66 Dexus 2019 Half Year Results Appendices

Exchange rates and securities used in statutory accounts

		31 Dec 2017	30 June 2018	31 Dec 2018
Closing rates for Statement of Financial Position	USD	0.7800	0.7391	0.7058
Average rates for Statement of Comprehensive Income	USD	0.7791	0.7753	0.7247
Post consolidation equivalent amounts		6 mths to	12 mths to	6 mths to
		31 Dec 2017	30 June 2018	31 Dec 2018
Average weighted number of securities1		1,017,292,855	1,017,299,246	1,017,196,877
Closing number of securities		1,017,404,542	1,017,196,877	1,017,196,877

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

67 Dexus 2019 Half Year Results Appendices

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Glossary

Distribution payout policy:

Funds From Operations (FFO):

Adjusted FFO (AFFO):

Gearing:

Gearing (look through):

Portfolio value:

Weighted Average Lease Expiry (WALE):

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

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 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.

Represents Gearing defined above adjusted to include debt in equity accounted investments.

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.

A measure in years of the average term to expiry of in-place rent. Includes vacancies.

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68 Dexus 2019 Half Year Results Appendices

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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69 Dexus 2019 Half Year Results Appendices
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