DEXUS — Investor Presentation 2013

Sep 10, 2013

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DEXUS Property Group (ASX: DXS)
ASX release
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11 September 2013

2013 Global Real Estate Conference presentation

DEXUS Property Group (DEXUS) today releases an overview presentation on the Group that will be presented to investors at the Bank of America Merrill Lynch 2013 Global Real Estate Conference. The conference will be held at The Westin New York at Times Square on Wednesday 11 September and Thursday 12 September 2013.

For further information please contact: Investor relations

Investor relations Media relations David Yates T: +61 2 9017 1424 Louise Murray T: +61 2 9017 1446 M: 0418 861 047 M: 0403 260 754 E: david.yates@dexus.com E: louise.murray@dexus.com

About DEXUS

DEXUS Property Group (DEXUS) is one of Australia’s leading real estate groups, investing directly in high quality Australian office and industrial properties. With over $13 billion of assets under management, DEXUS also actively manages office, industrial and retail properties located in key Australian markets on behalf of third party capital partners. DEXUS manages an office portfolio of over 900,000 square metres across Sydney, Melbourne, Brisbane and Perth and is one of the largest institutional owners of office buildings in the Sydney CBD, Australia’s largest office market. DEXUS is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange under the stock market trading code ‘DXS’ and is supported by more than 18,000 investors from 15 countries. With over 25 years of experience in commercial property investment, development and asset management, DEXUS has a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns to investors. www.dexus.com

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

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

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DEXUS PROPERTY GROUP

– BANK OF AMERICA MERRILL LYNCH GLOBAL REAL ESTATE CONFERENCE SEPTEMBER 2013

DEXUS Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for DEXUS Property Group DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

Slide 1

AGENDA

 Overview

• Strategy

 Portfolio overview

• Third Party Funds Management

• Capital management

• Financial results

• Market outlook

• Summary

Slide 2

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

OVERVIEW

DEXUS Property Group

• One of Australia’s leading real estate groups investing in $13.4 billion of high quality office, industrial and retail properties including

• DXS, a $7.3 billion portfolio investing directly in high quality Australian office and industrial properties

• A $6.1 billion third party funds management platform investing in office, industrial and retail properties

• DXS is a Top 50 entity by market capitalisation listed on the ASX

• Over 25 years’ experience in property investment, development and asset management

• Adopts a conservative and disciplined approach to capital management

• Strong investment grade credit ratings of Standard & Poor’s BBB+ (stable) and Moody’s Baa1 (stable)

Australia Square, 264-278 George Street, Sydney, NSW

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Slide 3

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

OVERVIEW DEXUS Property Group

DEXUS Property Group platform $13.4bn AUM

Public and private capital 235 property professionals

123 properties 2,975,545sqm NLA

Office Industrial Retail Development pipeline[3] $7.8bn $2.5bn $3.1bn $2.9bn DXS portfolio investments Third Party Funds Management $7.3bn $6.1bn

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AIP 3% Industrial
8% Office 34%
22% 20% Mandate DWPF 15%
26% 71%
22%
$6.1bn $6.1bn
78% 80%
70%
Retail 51%
1 2
Jun-12 Jun-13 Target
Office Industrial Other
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1. 30 June 2012 includes the Australian Industrial Partnership and the acquisitions of 50 Carrington Street, Sydney and 12 Creek Street, Brisbane.

2. Target of 3-5 year timeframe.

3. Includes fund-through investments of 480 Queen Street, Brisbane and Kings Square, Perth. DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

Slide 4

OVERVIEW Group highlights for the year ended 30 June 2013

DXS investor returns

22.1% Total security holder return for year to 30 June 2013

12.1% 11.2% Growth in distribution Return on equity per security

Capital DXS portfolio management

Total Group property portfolio

1.3% 29.0% 629,209 sqm $2.9bn FFO per security Gearing Leased[1 ] in total Total transactions growth across the Group 81,024 sqm $1.05 US$300m 1.8% Industrial Net tangible asset US Private Placement DXS office like-for-like developments backing per security notes secured income growth completed

1. At 100%. Including Heads of Agreement, across total Group office, industrial and retail properties.

Slide 5

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

STRATEGY

Slide 6

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

STRATEGY

A clear and focused strategy

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Slide 7

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

STRATEGY

– Repositioned to quality office assets divested offshore and reinvested in Australia

• Exited US industrial market ahead of expected timeframe

• Part of revised strategy to re-focus on core Australian markets

• Realised US$617m (A$598m) achieving a 12% premium

• Reinvested into DXS office acquisitions totalling $1.1bn

• $550m core office[1] at a cap rate of 7.2% with a forecast 10 year IRR of 9.3%

• $489m fund-through[2] strategic office investments

• $105m value-add[3] office with a forecast 3 year IRR of over 12%

• As a result, higher quality of earnings

• Office portfolio weighting increased to 78% (target 80%)

• Including 12 Creek Street, Brisbane (DXS 50% interest $120.8m); 225 George Street, Sydney (DXS 25% interest $271.2m); 39 Martin Place, Sydney (DXS 50% interest $74.9m); 2 and 4 Dawn Fraser Avenue, Sydney Olympic Park (DXS 50% interest $82.7m).

• 480 Queen Street, Brisbane and Kings Square, Perth (DXS 50% interest).

• 50 Carrington Street, Sydney ($58.5m) and 40 Market Street, Melbourne ($46.7m).

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Grosvenor Place, 225 George Street, Sydney NSW
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Slide 8

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

PORTFOLIO OVERVIEW

Slide 9

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

PORTFOLIO OVERVIEW

Office portfolio — 78% of balance sheet with 87% prime grade

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T: Grosvenor Place, 225 George Street, Sydney Premium grade $289.2m (DXS 25%) B: 480 Queen Street, Brisbane (under construction) Premium grade $272m[1 ] (DXS 50%)

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1 Bligh Street, Sydney, Premium grade $250.3m (DXS 33%)
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Governor Phillip & Macquarie Towers, 1 Farrer Place, Sydney
Premium grade $671.8m (DXS 50%)
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• Note: all values are at DXS ownership level. 1. Expected cost on completion.

Slide 10

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

PORTFOLIO OVERVIEW Office portfolio

 Prime quality $5.7bn office portfolio

 Largest listed office portfolio in Australia

• Largest institutional owner of office in Sydney CBD

• DXS owns interests in 36 office buildings

• The Group owns interests in four of the seven premium grade towers in Sydney

 FY13 achievements

• Generated strong total return of 10.6%

• Leased a total of 156,024sqm or approx. 16% of the portfolio

• Occupancy at 94.4%[1] and WALE of 5.0 years[2]

Premium and A-grade represents 87% of total value[1 ]

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Car parks Land
B Grade 3% <1%
6%
Premium
39%
$5.7bn
A Grade
48% Office &
business
parks
3%
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High allocation to Sydney[1]

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Perth
Canberra 9%
1%
Brisbane Sydney
10% 65%
Auckland
2%
Melbourne $5.7bn
13%
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1. By area. 2. By income.

Slide 11

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

PORTFOLIO OVERVIEW Office portfolio — lease expiry profile by income

0% 2% 4% 6% 8% 10% 12% 14% 16%
			13.2%
			12.2%1
		10.7%1	9.6% 10.4% 9.4%
	5.4%	5.6%
	Vacant	FY14	FY15 FY16 FY17 FY18
	Vacant % FY14 % FY15 % FY16 % FY17 % ex-ATO 14 Moore St 0.7Corrs GPT/GMT 0.9NSW Gov’t GPT/GMT 1.7IBM Southgate 2.0Mallesons GPT/GMT 2.0 ex-JP Morgan Grosvenor Place 0.6CMC Markets GPT/GMT 0.5Lloyds 45 Clarence St 1.0Merrill Lynch GPT/GMT 0.9Promina 321 Kent St 0.7 ex-Goldman/other GPT/GMT 0.4PKF and XL 1 Margaret St 0.3DLA Piper 201 Elizabeth St0.8 Ashurst Grosvenor Place 0.7Covermore Victoria Cross 0.6 ex-Chep/other 11 Talavera Rd 0.4Corrs Woodside Plaza0.3 Deloitte Woodside Plaza0.6 Sparke Helmore 321 Kent St 0.7International SOS 45 Clarence St 0.5 Key future expiries– at 30 June 2013

1. At 30 June 2012.

Slide 12

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

PORTFOLIO OVERVIEW

Industrial portfolio — 22% of balance sheet

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T: 27 Distribution Drive, Laverton North $6.5m (DXS 50%) B: 2-10 Distribution Drive, Laverton North $8.0m (DXS 50%)

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T: 1-3 Distribution Drive, Laverton North $6.0m (DXS 50%) B: 2-6 Basalt Road, Greystanes $15.9m (DXS 50%)

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T: 3 Basalt Road, Greystanes $13.7m (DXS 50%) B: 2 Bellevue Circuit, Greystanes $11.1m (DXS 50%)

Note: all values are at DXS ownership level.

Slide 13

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

PORTFOLIO OVERVIEW Industrial portfolio

• Quality $1.6bn industrial portfolio

• Focused on 48 properties located in major industrial hubs and arterial roadways in Sydney, Melbourne and Brisbane markets

• Allocation to value-add/development

• FY13 achievements

• Generated a total return of 8.8%

• Leased 327,432sqm across the portfolio

• Occupancy at 95.9%[1] and WALE[2] of 4.1 years

Diverse mix of building types

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Land and
development
8%
Data centres
3%
Business
parks
29%
Distribution
centres $1.6bn
20%
Industrial
estates
40%
High allocation to Sydney and Melbourne
Adelaide and
Brisbane
8%
Melbourne $1.6bn
35% Sydney
57%
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High allocation to Sydney and Melbourne

1. By area. 2. By income.

Slide 14

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

PORTFOLIO OVERVIEW Development and fund-through pipeline — Group

DXS developments and fund-throughs	Total est cost1	**Est cost to complete1 **
Completed developments for trading	$55m	$6m
Development under construction	$111m	$46m
Future developments	$556m	$423m
Fund-through investments2	$489m	$411m
Total DXS pipeline	$1,211m	$886m

Third party developments and fund-throughs	**Total est cost1 **	**Est cost to complete1 **
Office and industrial developments3	$77m	$75m
Retail developments	$1,079m	$1,042m
Fund-through investments2	$489m	$411m
Total third party pipeline	$1,645m	$1,528m

billion $2.9

Total Group pipeline

1. Costs shown at 100%.

2. At ownership.

3. Excludes land costs.

Slide 15

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

PORTFOLIO OVERVIEW DXS development activity

 Strong development track record and substantial pipeline

			Total estimatedproject cost	Total estimatedproject cost	Total estimatedproject cost	Total estimatedproject cost	Total estimatedproject cost	Total estimatedproject cost
DXS developments and fund-throughs	Total est cost1	Est cost to **complete1 **	FY14				FY15	FY16+
57-65 Templar Road, Erskine Park	$38m	$5m	$38m
163-183 Viking Drive, Wacol	$33m	$4m	$17m	$16m
DEXUS Industrial Estate, Laverton North	$162m	$110m	$26m				$136m
Quarry at Greystanes	$120m	$77m		$69m			$51m
Phillip Street, Parramatta	$120m	$112m					$120m
12 Creek St, Brisbane2	$19m	$19m					$19m
180 Flinders Street, Melbourne	$230m	$148m					$230m
480 Queen Street, Brisbane2	$272m	$223m					$272m
Kings Square, Perth2	$217m	$188m					$217m
Total DXS pipeline	$1,211m	$886m
				Completed developments Developments underway			Uncommitted development pipeline Fund-through office investments

DXS value add and repositioning	**Inventory3 **
50 Carrington Street, Sydney	$59m
40 Market Street, Melbourne	$47m
57-101 Balham Road, Archerfield	$22m
154 O’Riordan Street, Mascot	$14m
Total DXS value add properties	$142m

DXS capital expenditure	Est FY14
Maintenance capital expenditure	$40-50m
Tenant incentives and leasing costs	$40-50m
Total capital expenditure	$80-100m

1. Costs shown at 100% including land.

2. DXS share.

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

Slide 16

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

TITLE SLIDE HEADER HIRD PARTY FUNDS MANAGEMENT

Slide 17

DEXUS Property Group 2013 Half Year Results Presentation — Slide 17 — Bank o America Merrill Ly ch — Global Real Estate Conference September 2013

THIRD PARTY FUNDS MANAGEMENT Overview

 $6.1bn funds management platform comprising

• $4.3bn DEXUS Wholesale Property Fund (DWPF) - diversified

• $1.6bn Australian mandate – diversified

• $0.5bn Australian Industrial Partnership (AIP) – DEXUS partnered with a global pension fund

 FY13 achievements

• Third party funds under management increased 9.5%

• Strong support from DWPF investors raising over $820m of equity including $290m from a new investor

• Established the Australian Industrial Partnership and grew the partnership to $0.5bn across 18 properties

Third Party Funds Management platform

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DWPF
Australian $4.3bn
Industrial
Partnership
$0.2bn
$6.1bn
Australian
mandate
$1.6bn
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DWPF key statistics	30 Jun 2013
Gearing target range	10-20%
S&P credit rating	A (Stable)
Retail/Office/Industrial	47%/41%/12%

• DWPF acquired four office properties jointly with DXS and two industrial properties (total[1] approx. $728m)

• Excluding acquisition costs.

Slide 18

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

TITLE SLIDE HEADER CAPITAL MANAGEMENT

Slide 19

DEXUS Property Group 2013 Half Year Results Presentation — Slide 19 — Bank o America Merrill Ly ch — Global Real Estate Conference September 2013

CAPITAL MANAGEMENT Prudent capital management

Debt maturity profile[2 ]

• Active management of capital and risk with a conservative and disciplined approach

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A$m
800
600
400
200
0
Bank Capital Markets
Diversified mix of facilities [2 ]
USPP
17%
Bank -
unsecured
144A 51%
9%
MTN
23%
Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 FY19+
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• Highly experienced team with proven track record

• Solid stable credit ratings — Standard & Poor’s BBB+ and Moody’s Baa1

• Acquired 137m securities in 2012 buy-back program and announced a new $245m (5%) buy-back program on 2 July 2013

 FY13 achievements

• Successfully restructured US debt facilities associated with the sale of US properties

• Raised over $1 billion of debt with an average duration of seven years, increasing duration to 5.4 years

• Diversified debt sources through access to MTN and USPP markets

Capital management key statistics

Cost of debt1	5.9%
Duration of debt	5.4 years
Hedged debt	64%
Gearing	29.0%

1. Weighted average across the period

2. Pro-forma facilities, adjusted for US$300m USPP that settled in July 2013 and associated bank facility cancellations.

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DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

TITLE SLIDE HEADER F NANCIAL RESULTS

Slide 21

DEXUS Property Group 2013 Half Year Results Presentation — Slide 21 — Bank o America Merrill Ly ch — Global Real Estate Conference September 2013

FINANCIAL RESULTS

		12 months to	12 months to	12 months to	12 months to
		30 June 2013	30 Jun 2012	30 Jun 2011	30 Jun 2010
Key financial metrics	Statutory net profit	$514.5m	$181.1m	$553.0m	$31.4m
	FFO1	$365.4m	$367.8m	$358.0m	$350.0m
	FFO per security	7.75c	7.65c	7.40c	7.30c
	Distribution per security	6.00c	5.35c	5.18c	5.10c
	Gearing	29.0%	27.2%	28.4%	29.8%
	NTA per security	$1.05	$1.00	$1.01	$0.95

FY13 Achievements

 Achieved 5% growth in NTA

 Achieved FFO guidance of 7.75 cents per security and increased distribution per security by 12.1%

 95% of earnings derived from property EBIT

1. FFO (Funds from Operations): net profit adjusted to exclude property revaluations, unrealised mark-to-market changes, changes in deferred tax, amortisation of tenant cash and fit-out incentives, gain/loss on sale of certain assets, rent straightlining, rental guarantees and coupon income.

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DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

MARKET OUTLOOK TITLE SLIDE HEADER

Slide 23

DEXUS Property Group 2013 Half Year Results Presentation — Slide 23 — Bank o America Merrill Ly ch — Global Real Estate Conference September 2013

MARKET OUTLOOK Office markets subdued in FY14 with upside in demand FY15

• Leasing enquiry and net absorption subdued, tenants taking longer to make decisions

• Vacancy rates have risen

• Supply is expected to be low in FY14 and FY15 (excluding Melbourne)

• Rents are likely to ease in FY14 with incentives increasing to secure quality tenants

• In Sydney, Brisbane and Perth a low construction pipeline in FY14 will limit movement in vacancy

• In Melbourne, above average levels of supply will lead to elevated vacancy in FY14 before improving

• Demand to improve in FY15

Office – supply/demand forecast (4 CBDs)

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‘000 sqm
500 12%
400
300 8%
200
100 4%
-
-100 0%
-200
-300 -4%
FY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16
Demand Supply Vacancy
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Office – gross effective rents

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($/spm
$1,000
$800
$600
$400
$200
$0
Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13
Sydney Melbourne Brisbane Perth
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Source: Jones Lang LaSalle, DEXUS Research, Deloitte Access Economics June 2013.

Slide 24

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

MARKET OUTLOOK

Industrial markets maintain good occupancy

• Demand in the industrial sector constrained

• Improved outlook for late FY14 and FY15

• Demand to be driven by tenants relocating and seeking improved efficiencies and infrastructure investment especially logistics and retail

• –

• Occupancy rates high limited availability of prime space

• Rents flat/easing in FY14, eventual upside in medium term due to increasing development costs

• Investor demand for industrial assets remains strong, however prime stock is limited

• Total return supported by high income yield

• Melbourne very competitive; Sydney subdued but stable; Brisbane has paused but has good medium term prospects

Consumption – to drive rental growth

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% p.a.
20% 6%
forecast 4%
10%
2%
0% 0%
-2%
-10%
-4%
-20% -6%
FY90 FY92 FY94 FY96 FY98 FY00 FY02 FY04 FY06 FY08 FY10 FY12 FY14 FY16
NSW consumption spending RHS Outer west rent growth
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National prime vacancy remains low

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8%
6%
4%
2%
0%
H208 H109 H209 H110 H210 H111 H211 H112 H212
Prime Secondary
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Source: Jones Lang LaSalle, Savills, Deloitte Access Economics June 2013, DEXUS Research.

Slide 25

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

TITLE SLIDE HEADER SUMMARY

Slide 26

DEXUS Property Group 2013 Half Year Results Presentation — Slide 26 — Bank o America Merrill Ly ch — Global Real Estate Conference September 2013

SUMMARY

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• Enhanced portfolio quality and diversity

• Experienced management team with strong corporate and leasing backgrounds will continue to drive high performance

• Strong Third Party Funds Management business

• Market guidance for FY14[1]

• FFO per security 8.15 cents, representing 5.2% growth

• Distribution per security 6.12 cents

  • 1 Bligh Street and Governor Phillip Tower, 1 Farrer Place, Sydney, NSW

• Barring unforeseen circumstances. Assumptions include: 75% payout ratio, delivering circa 4% like-for-like income growth in the office portfolio, $4-5m in trading profits, cost of debt at 6.0% and excluding further on-market buy-back.

Slide 27

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

DEXUS PROPERTY GROUP TITLE SLIDE HEADER APPENDICES

Slide 28

DEXUS Property Group 2013 Half Year Results Presentation — Slide 28 — Bank o America Merrill Ly ch — Global Real Estate Conference September 2013

FINANCIAL RESULTS

	30 June 2013 $m	30 June 2012 $m
Statutory net profit	514.5	181.1
Net fair value gain of investment properties1	(220.6)	(82.8)
Impairment of inventories	2.2	14.9
Net fair value loss of derivatives	17.7	97.1
Net loss on sale of investment properties	3.6	32.6
Finance break costs attributable to sales transactions	18.8	44.3
FX translation reserve transfer2	21.5	41.5
Incentive amortisation and rent straightline	30.5	31.7
RENTS capital distributions	–	(10.2)
Deferred tax (benefit)/expense and other	(22.8)	17.6
Funds From Operations (FFO)	365.4	367.8

1. 30 June 2013 includes $12.9 million of revaluations related to DXS’s share of its equity accounted investments and $21.9 million of net revaluations relating to discontinued operations (US and Europe). Further details are included in the DXS Group financial statements.

2. Foreign currency translation reserve transfer on disposal of foreign operations.

Slide 29

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

KINGS SQUARE, PERTH Overview

• Comprises three A-grade buildings providing over 52,000sqm of office and retail accommodation and 134 parking spaces

• Total estimated cost of $434.8 million and an initial yield on completion of 8.0%

• Jointly acquired by DXS and DWPF in May 2013

• Construction commenced in June 2013 and expected to be completed by mid-2015

• Acquired on a fund-through basis

• Developed by Leighton Properties with construction undertaken by Leighton subsidiaries John Holland and Broad Construction Services

• Targeting 5 star NABERS Energy ratings

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Slide 30

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

KINGS SQUARE, PERTH Compelling acquisition metrics

				Total on
	Kings Square 1	Kings Square 2	Kings Square 3	completion
Acquisition price1($m)	200.7	173.8	60.3	434.8
Lettable area (sqm)2	23,156	20,440	9,185	52,781
Acquisition rate (per sqm)	$8,669	$8,503	$6,565	$8,239
Capitalisation rate (%)	8.0	7.9	8.25	8.0
Initial yield (pre-costs) (%)	8.00	7.90	8.25	8.00
Initial yield (post-costs) (%)	7.95	7.84	8.22	7.95
IRR (10-year unlevered) (%)3	9.7	9.9	10.4	9.9
Pre-commitment (% by area)	3	70	97	45
Occupancy (% income)4	100	100	100	100
WALE (years by income)4	5.1	8.5	10.7	7.3
Parking spaces5	42	76	16	134
Major tenants	–	Shell	John Holland6

1. Estimated cost on completion at 100%.

2. Comprising all licenced areas.

3. From practical completion.

4. Including a five-year income guarantee from Leighton Properties on remaining vacancies post completion. 5. Excluding 19 motorbike bays.

5. John Holland’s lease provides flexibility to occupy either Kings Square 1 or Kings Square 3.

Slide 31

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

KINGS SQUARE, PERTH

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DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

480 QUEEN STREET, BRISBANE Overview

 DXS and DWPF to jointly acquire 480 Queen Street, Brisbane fund-through investment

• 55,561sqm[1] premium office asset to be developed by Grocon

 Project acquired via a de-risked fund-through structure

• Purchase price a factor of lease commitments at practical completion (PC)

• Anchor tenant leases capped at 7.0%, new leases pre-PC capped at 7.1%

• Vacancy at PC priced at circa $6,000/sqm[2 ]

• Two year rent guarantee on vacancy from PC to February 2018 (implies a 5 year WALE with no new leasing)

• 7.0% p.a. coupon received on development payments until September 2014, then 7.25% p.a. until PC

• Caps and collars on rents and incentives to protect asset value and avoid price manipulation

• Look forward purchase price and cost to complete tests

• Developer profit back-ended

• Significant security package attained from the developer

• High degree of transparency and control in project decisions

 Forecast IRR circa 10%

1. Includes 1,661sqm of retail space.

2. Average rate includes retention for incentives on vacant tenancies of circa $2,000/sqm.

Slide 33

DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

480 QUEEN STREET, BRISBANE

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480 Queen Street
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DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

MARKET OUTLOOK — OFFICE Sydney CBD office market — supply and availability

 Continual focus on leasing and managing lease expiry risk will be required in Sydney market

• Proactive asset managers with superior expertise will be the winners

• Sydney supply, withdrawals and major backfill

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110
Proposed Withdrawn Mooted Withdrawal Refurbs Backfill Pre-committed space Uncommitted space
70
30
-10
-50
FY13 FY14 FY15 FY16 FY17
115 Bathurst (Sydney Water) 20 Martin Pl 48-50 Martin Pl 190-200 George St 99 Elizabeth St 161 Castlereagh St 19 Martin Pl (MLC centre) 255 George St (NAB building) 255 Elizabeth St 1 Farrer Pl (GPT) 135 King St 20 Hunter St 123 Pitt Street 333 George St 155 Clarence St 8-12 Chifley 180 Thomas St 1 Farrer Pl (GPT) 2 Park St (Citi) (5 Martin Pl) 108-120 Pitt St 48-50 Martin Pl 1 Martin Pl 225 George St (Grosvenor) 3 Farrer Pl (GMT) 10 Shelley St (KPMG) 33-35 Pitt St 60 Martin Pl 10 Shelley St 20 Martin Pl 478-480 George St 190-200 George St Int'l Towers Sydney - Tower 3 Int'l Towers Sydney - Tower 2 30 The Bond (The Bond) 137-151 Clarence St 55 Market St 201 Sussex St 333 George St 680 George St (E&Y Tower) Int'l Towers Sydney - Tower 1
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Source: DEXUS Research, Savills.

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DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

MARKET OUTLOOK — OFFICE & INDUSTRIAL Australian market trends in FY14/FY15

Australian office markets

Australian industrial markets

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||||
|---|---|---|
|To improve from late FY14 in line with|To improve FY14/FY15 in line with|
|Tenant demand|
|confidence & employment forecasts|confidence & growth in consumption|
|Supply|National supply levels below average|Supply to remain around average levels|
|Prime vacancy rates to remain relatively|Prime properties to remain relatively|
|Vacancy rates|stable at mildly above average levels|low|
|Buyer demand|To remain strong for quality properties|To remain strong for quality properties|
|At or above long term averages and|
|Mild tightening for prime grade/well|
|Cap rates|expected to tighten for prime grade/well|covenanted properties, flat for secondary|
|covenanted properties|
|Prime grade/well covenanted properties|Prime grade/well covenanted properties|
|Asset values|
|expected to firm due to tighter cap rates|expected to firm due to tighter cap rates|

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DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

IMPORTANT INFORMATION

• This presentation is issued by DEXUS Funds Management Limited (DXFM) in its capacity as responsible entity of DEXUS Property Group (ASX:DXS). It is not an offer of securities for subscription or sale and is not financial product advice.

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

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

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

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

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DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013

DEXUS PROPERTY GROUP

BANK OF AMERICA MERRILL LYNCH GLOBAL REAL ESTATE CONFERENCE SEPTEMBER 2013

DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS Property Group — Bank of America Merrill Lynch — Global Real Estate Conference September 2013 AFSL 238163 as responsible entity for DEXUS Property Group

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