DEXUS — Investor Presentation 2014

Mar 2, 2014

==> picture [596 x 103] intentionally omitted <==

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

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

3 March 2014

2014 Citi Global Property CEO Conference

DEXUS Property Group today releases an overview presentation for the 2014 Citi Global Property CEO Conference. The conference will be held from Monday 3 March to Wednesday 5 March 2014 at the Westin Diplomat, Hollywood, Florida, USA.

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

About DEXUS

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

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

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

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

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

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

DEXUS PROPERTY GROUP CITI GLOBAL PROPERTY CEO CONFERENCE MARCH 2014

DEXUS Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for DEXUS Property Group DEXUS Property Group 2014 Citi Global Property CEO Conference

Slide 1

AGENDA

 Overview

 Strategy

 Commonwealth Property Office Fund (CPA) transaction

 Portfolio overview

 Third party funds management

 Capital management

 Financial results

 Market outlook

 Summary

Note: All figures in Australian dollars as at 31 December 2013, and all portfolio figures include the CPA transaction unless otherwise stated, with 5 Martin Place, Sydney included at reported cost to complete.

Slide 2

DEXUS Property Group 2014 Citi Global Property CEO Conference

OVERVIEW DEXUS Property Group

DEXUS Property Group platform $17.3bn AUM DXS portfolio investments Third Party Funds Management $9.1bn $8.2bn

==> picture [458 x 187] intentionally omitted <==

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

Industrial
$1.0bn
Industrial
12%
$1.6bn Office
18% $3.9bn
48%
Office
$9.1bn $7.5bn $8.2bn
82%
Retail
$3.3bn
40%
----- End of picture text -----

Top 50 Listed entity[1]

29 years Property, funds & development management expertise

34.6% Conservative gearing[2]

1. On the Australian Securities Exchange (ASX), by market capitalisation. 2. Adjusted for cash and including CPA transaction.

Slide 3

DEXUS Property Group 2014 Citi Global Property CEO Conference

STRATEGY

A clear and focused strategy

==> picture [678 x 357] intentionally omitted <==

Slide 4

DEXUS Property Group 2014 Citi Global Property CEO Conference

COMMONWEALTH PROPERTY OFFICE FUND (CPA) TRANSACTION Overview

• DEXUS and Canada Pension Plan Investment Board (CPPIB) announced a joint takeover offer for CPA in December 2013

• Acceptances of 88.2% as at 27 February 2014

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

• Transition of management of the CPA portfolio expected to occur during the second quarter of 2014

• CPA transaction increases Group FUM by $3.3bn and adds a portfolio of 21 office properties

==> picture [720 x 161] intentionally omitted <==

Slide 5

DEXUS Property Group 2014 Citi Global Property CEO Conference

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

FY14 FFO cents per security impact assuming 1 March 2014 implementation

==> picture [373 x 112] intentionally omitted <==

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

0.06 1 8.35
0.10 8.29
8.19
FY14 guidance Impact of 14.9% FY14 revised 4 month impact of Pro forma FY14 FFO
pre-bid stake guidance CPA transaction
----- End of picture text -----

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

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

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

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

Slide 6

DEXUS Property Group 2014 Citi Global Property CEO Conference

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

==> picture [531 x 328] intentionally omitted <==

==> picture [89 x 17] intentionally omitted <==

==> picture [114 x 17] intentionally omitted <==

==> picture [61 x 17] intentionally omitted <==

==> picture [60 x 17] intentionally omitted <==

• 1.AUM includes assets owned by DEXUS, CPA and DEXUS Third Party managed funds. Represents assets within the CBD, as defined by the Property Council of Australia (PCA) Office Market Report plus DEXUS Core Target Markets of Kings Square, Perth and Southbank, Melbourne. Values based on book values as at 30 June 2013.

• 2.NLA represents Net Lettable Area. Proportional for ownership percentage.

3.Represents the percentage of total NLA in Prime Grade assets within each CBD market in which the merged entity will have a representation via assets under management. Calculation excludes developments in progress and is not proportional to ownership percentage. Total market NLA sourced from PCA July 2013 Office Market Report and company filings. Market includes PCA defined boundaries plus DEXUS Core Target Markets of Kings Square, Perth and Southbank, Melbourne.

Slide 7

DEXUS Property Group 2014 Citi Global Property CEO Conference

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLD PORTFOLIO OVERVIEW Key message (Trebuchet MS (Heading) 18)

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

Slide 8

DEXUS Property Group 2014 Citi Global – Presentation Title — Slide 8 Property CEO Conference

PORTFOLIO OVERVIEW Group property portfolio including third party funds

bn $17.3 Total funds under management

==> picture [83 x 111] intentionally omitted <==

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

4 OFFICE
$0.8 BILLION
----- End of picture text -----

CANBERRA 3 OFFICE, $0.2 BILLION

ADELAIDE

2 OFFICE, $0.2 BILLION

• 1 INDUSTRIAL, $0.1 BILLION 1 RETAIL, $0.2 BILLION

OTHER REGIONS 1 OFFICE, $0.1 BILLION 3 RETAIL, $0.7 BILLION

==> picture [155 x 116] intentionally omitted <==

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

6 OFFICE 8 INDUSTRIAL
$1.3 BILLION $0.2 BILLION
3 RETAIL, $0.5 BILLION
----- End of picture text -----

==> picture [156 x 238] intentionally omitted <==

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

34 OFFICE 45 INDUSTRIAL
$7.0 BILLION $1.6 BILLION
4 RETAIL, $1.3 BILLION
11 OFFICE 21 INDUSTRIAL
$1.8 BILLION $0.8 BILLION
2 RETAIL, $0.7 BILLION
----- End of picture text -----

Slide 9

DEXUS Property Group 2014 Citi Global Property CEO Conference

DIRECT PORTFOLIO OVERVIEW

Office portfolio — 82% of balance sheet with 87% prime grade

==> picture [228 x 180] intentionally omitted <==

==> picture [228 x 156] intentionally omitted <==

T: Australia Square, 264-278 George Street, Sydney A-grade $311m (50% interest) B: Grosvenor Place, 225 George Street, Sydney Premium grade $291m (25% interest)

==> picture [212 x 341] intentionally omitted <==

==> picture [173 x 19] intentionally omitted <==

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

1 Bligh Street, Sydney, Premium grade $251m
(33% interest)
----- End of picture text -----

==> picture [222 x 342] intentionally omitted <==

Governor Phillip & Macquarie Towers 1 Farrer Place, Sydney Premium grade $674m (50% interest)

Note: all values are at DXS ownership level.

Slide 10

DEXUS Property Group 2014 Citi Global Property CEO Conference

DIRECT PORTFOLIO OVERVIEW Office portfolio

bn $7.5 Prime quality office portfolio

 Largest listed office portfolio in Australia

• Largest institutional owner of office in Sydney CBD with 26% share

• DEXUS direct portfolio (DXS) owns interests in 54 office buildings

• DEXUS and its capital partners own interests in four of the seven premium grade towers in Sydney

 HY14 achievements:

• Achieved strong total return of 10.3%

• Adopted proactive forward leasing approach which resulted in significant reduction in future lease expiries

• Leased over 67,000sqm[2] during the period across 86 transactions

• Generated solid same store rental growth of 3.8%

• Including Canberra, Adelaide and Auckland, NZ.

Property type by book value

==> picture [177 x 157] intentionally omitted <==

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

Development
2%
Carparks Office parks
3% 2%
B-grade
6%
Premium
$7.5bn 34%
54 properties
A-grade
53%
----- End of picture text -----

Geographical weighting by book value

==> picture [178 x 149] intentionally omitted <==

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

Other [1]
4%
Perth
9%
Sydney
Brisbane 61%
11%
$7.5bn
54 properties
Melbourne
15%
----- End of picture text -----

1. At 100%, including Heads of Agreement (HOA).

Slide 11

DEXUS Property Group 2014 Citi Global Property CEO Conference

DIRECT PORTFOLIO OVERVIEW Office portfolio — lease expiry profile

Lease expiry profile[1] by income as at 31 December 2013

==> picture [663 x 284] intentionally omitted <==

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

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

1. Excluding CPA portfolio. 2. 30 June 2013 position.

Slide 12

DEXUS Property Group 2014 Citi Global Property CEO Conference

DIRECT PORTFOLIO OVERVIEW Industrial portfolio — 18% of balance sheet

==> picture [341 x 163] intentionally omitted <==

==> picture [341 x 159] intentionally omitted <==

T: DEXUS Industrial Estate, 27 Distribution Drive, Laverton North $9.2m (50% interest) B: Quarry Industrial Estate, 1 Bellevue Circuit, Greystanes $15.4m (50% interest)

==> picture [318 x 162] intentionally omitted <==

==> picture [319 x 159] intentionally omitted <==

T: DEXUS Industrial Estate, 1-3 Distribution Drive, Laverton North $6.0m (50% interest) B: Quarry Industrial Estate, 3 Basalt Road, Greystanes, $14.3m (50% interest)

Note: all values are at DXS ownership level.

Slide 13

DEXUS Property Group 2014 Citi Global Property CEO Conference

DIRECT PORTFOLIO OVERVIEW Industrial portfolio

bn $1.6 Prime quality industrial portfolio

• Focused on major industrial hubs and arterial roadways in Sydney, Melbourne and Brisbane

• Allocation to value add/repositioning and development

• HY14 achievements:

• Achieved total return of 9.2%

• Leased 72,687sqm[1] across 31 transactions in challenging market

• Maintained stable WALE[2] of 4.1 years

• At 100%, including Heads of Agreement (HOA). 2. By income.

Geographical weighting by book value

==> picture [179 x 141] intentionally omitted <==

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

Adelaide
Brisbane 2%
5%
Sydney
53%
Melbourne $1.6bn
40% 50 properties
----- End of picture text -----

Property type by book value

==> picture [202 x 151] intentionally omitted <==

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

Data centre Developments
4% 2%
Land
3%
Business parks
27%
Distribution
centres
24% $1.6bn
50 properties
Industrial
estates
40%
----- End of picture text -----

Slide 14

DEXUS Property Group 2014 Citi Global Property CEO Conference

DIRECT PORTFOLIO OVERVIEW Corporate Responsibility and Sustainability

4.8 stars

NABERS Energy rating[1]

3.5 stars

NABERS Water rating[1]

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

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

• Included on the Carbon Disclosure Project’s Performance Leadership Index in 2013

==> picture [664 x 179] intentionally omitted <==

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

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

Note: Data in charts is unaudited.

1. On a like-for-like portfolio basis, including GreenPower and excluding the CPA portfolio.

Slide 15

DEXUS Property Group 2014 Citi Global Property CEO Conference

PORTFOLIO OVERVIEW Development and fund-through pipeline — Group

$2.8bn

Total Group development pipeline

				Total estimatedproject cost	Total estimatedproject cost	Total estimatedproject cost	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+
DEXUS Industrial Estate, Laverton North	$122m	$97m		$122m
Quarry at Greystanes	$77m	$46m		$23m			$54m
105 Phillip Street, Parramatta	$120m	$112m						$120m
12 Creek St, Brisbane2	$19m	$19m						$19m
180 Flinders Street, Melbourne	$230m	$148m								$230m
480 Queen Street, Brisbane2	$272m	$213m			$272m
Kings Square, Perth2	$217m	$168m			$217m
DXS pipeline	$1,057m	$803m
Completed developments for trading	$72m	$4m
									3
DXS pipeline including trading	$1,129m	$807m				DXS value-add and repositioning			**Inventory **
						50 Ci S Sd			59
Third party development pipeline	$1,234m	$1,112m				arrngton treet, yney			$m
						40 Market Street Melbourne			$47m
Third party fund-through pipeline	$489m	$381m				,
						57-101 Balham Road Archerfield			$22m
Total Group pipeline	$2,852m	$2,300m				,
						1-15 Rosebery Avenue, Rosebery			$59m
Developments underway Uncommitted developmentpipeline Fund-through office investments						25-55 Rothschild Avenue, Rosebery			$37m
						154 O’Riordan Street,Mascot			$14m
						Total DXS value-addproperties			$238m

1. Costs shown at 100%, including land.

2. DXS share.

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

Slide 16

DEXUS Property Group 2014 Citi Global Property CEO Conference

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

Slide 17

DEXUS Property Group 2014 Citi Global – Presentation Title — Slide 17 Property CEO Conference

THIRD PARTY FUNDS MANAGEMENT Delivering on strategy

bn $8.2

Third party funds management platform

 Substantial funds management platform including

• $4.6bn DEXUS Wholesale Property Fund (DWPF) - diversified

• $1.6bn Australian mandate – diversified

• $0.3bn Australian Industrial Partnership (AIP)[1] with a global pension fund

• New $1.7bn capital partner Canada Pension Plan Investment Board (CPPIB)

Growth in funds under management since 2012[1]

Third party funds under management post CPA transaction

==> picture [214 x 169] intentionally omitted <==

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

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

==> picture [418 x 147] intentionally omitted <==

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

$bn
10
9 51% growth 1.7 8.2
8 6.6
7 5.4 0.9
0.3
6
5
4
3
2
2
30 Jun 12 Formation of AIP Existing Fund 31 Dec 13 CPPIB 31 Dec 13
Growth Post CPA
transaction
----- End of picture text -----

1. AIP total portfolio value is $0.5bn, held in a 50:50 joint partnership with DEXUS direct portfolio.

Slide 18

DEXUS Property Group 2014 Citi Global Property CEO Conference

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

Slide 19

DEXUS Property Group 2014 Citi Global – Presentation Title — Slide 19 Property CEO Conference

CAPITAL MANAGEMENT Prudent and disciplined capital management

• Active approach to capital and risk management

• Solid stable credit ratings — Standard & Poor’s BBB+ (Credit Watch Positive) and Moody’s Baa1 (developing outlook)

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

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

 HY14 achievements:

• Reduced cost of debt to 5.7% and increased duration to 6.1 years

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

Debt maturity profile[2]

A$m

==> picture [251 x 131] intentionally omitted <==

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

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

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

Historical gearing ratio

==> picture [338 x 127] intentionally omitted <==

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

40.0%
30.0%
20.0%
33.2% 31.2% 29.8% 28.4% 27.2% 29.0% 30.6%
10.0%
0.0%
Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Dec 13
----- End of picture text -----

Diversified mix of facilities[2 ]

==> picture [278 x 152] intentionally omitted <==

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

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

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

Slide 20

DEXUS Property Group 2014 Citi Global Property CEO Conference

FINANCIAL RESULTS

Slide 21

DEXUS Property Group 2014 Citi Global Property CEO Conference

FINANCIAL RESULTS

		6 months to	12 months to	12 months to	12 months to
		31 Dec 2013	30 Jun 2013	30 Jun 2012	30 Jun 2011
Key financial metrics	Statutory net profit	$277.2m	$514.5m	$181.1m	$553.0m
	FFO1	$189.8m	$365.4m	$367.8m	$358.0m
	FFO per security	4.08c	7.75c	7.65c	7.40c
	Distribution per security	3.07c	6.00c	5.35c	5.18c
	Gearing	30.6%	29.0%	27.2%	28.4%
	NTA per security	$1.08	$1.05	$1.00	$1.01

 Achieved 6.2% distribution growth per security for six months to 31 December 2013

 Increased NTA by 2.9%

 95% of earnings derived from property EBIT

1. DEXUS’s FFO comprises net profit/loss after tax attributable to stapled security holders calculated in accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark to market impacts, fair value movements of interest bearing liabilities, amortisation of certain tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments, deferred tax expense/benefit, rental guarantees, coupon income and distribution income net of funding costs.

Slide 22

DEXUS Property Group 2014 Citi Global Property CEO Conference

FINANCIAL RESULTS Corporate revenue and expenses

Net profit from management operations

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

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

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

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

Slide 23

DEXUS Property Group 2014 Citi Global Property CEO Conference

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLD MARKET OUTLOOK Key message (Trebuchet MS (Heading) 18)

Slide 24

DEXUS Property Group 2014 Citi Global – Presentation Title — Slide 24 Property CEO Conference

MARKET OUTLOOK Why office demand will improve from FY15

• Demand to improve in FY15 due to

DEXUS Office Demand Barometer points to improvement

• Economy responding to easing monetary policy and lower AUD

• Improving business conditions and confidence

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

• Tenant migration into CBD areas

==> picture [301 x 144] intentionally omitted <==

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

Actual demand
12% % of stock (annualised) Barometer
8%
4%
0%
-4%
-8%
Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13
----- End of picture text -----

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

Office demand in the four main CBDs vs employment growth

==> picture [299 x 134] intentionally omitted <==

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

PER BRI MEL SYD NAT WC (RHS)
'000 sqm
500 5%
400 4%
300 3%
200 2%
100 1%
0 0%
-100 -1%
-200 -2%
-300 -3%
FY03 FY05 FY07 FY09 FY11 FY13 FY15 FY17
----- End of picture text -----

Source: Jones Lang LaSalle, Bloomberg, NAB, DEXUS Research.

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

Slide 25

DEXUS Property Group 2014 Citi Global Property CEO Conference

MARKET OUTLOOK Industrial markets relatively stable

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

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

• Limited availability of prime space

• Rents flat in FY14, then upside in medium term

• Melbourne very competitive

• Sydney subdued but stable

• Brisbane has paused but could recover quickly

Consumption – to drive rental growth

==> picture [303 x 136] intentionally omitted <==

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

% p.a. NSW consumption spending RHS Outer West Rent Growth
12% 6%
forecast
8% 4%
4% 2%
0% 0%
-4% -2%
-8% -4%
FY01 FY03 FY05 FY07 FY09 FY11 FY13 FY15 FY17
----- End of picture text -----

National prime vacancy remains low

==> picture [291 x 136] intentionally omitted <==

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

Prime Secondary
8%
6%
4%
2%
0%
H208 H109 H209 H110 H210 H111 H211 H112 H212 H113
----- End of picture text -----

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

Slide 26

DEXUS Property Group 2014 Citi Global Property CEO Conference

MARKET OUTLOOK Investment demand

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

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

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

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

• duration of leases

• prime vs secondary assets

• CBD vs fringe/metropolitan

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

==> picture [311 x 180] intentionally omitted <==

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

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

Capital values – office and industrial (Sydney)

==> picture [298 x 136] intentionally omitted <==

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

Index Dec-03=100) Office Industrial
180
160
140
120
100
80
Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13
----- End of picture text -----

Source: Jones Lang LaSalle, DEXUS Research.

Slide 27

DEXUS Property Group 2014 Citi Global Property CEO Conference

AGENDA ITEM TITLE (TREBUCHET MS (HEADING) 20 BOLD SUMMARY Key message (Trebuchet MS (Heading) 18)

Slide 28

DEXUS Property Group 2014 Citi Global – Presentation Title — Slide 28 Property CEO Conference

SUMMARY

• Delivered a solid result in a challenging market

• Expect office market conditions to improve in FY15

• Focus moving forward:

• Ensure CPA portfolio is successfully integrated

• Continue to drive earnings from existing business

• Market guidance for FY14[1]

• FFO per security 8.29 cents, representing 7.0% growth

• Distribution per security 6.24 cents

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

Foyer, Australia Square, 264 George Street, Sydney NSW

==> picture [259 x 411] intentionally omitted <==

Slide 29

DEXUS Property Group 2014 Citi Global Property CEO Conference

IMPORTANT INFORMATION

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

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

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

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

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

Slide 30

DEXUS Property Group 2014 Citi Global Property CEO Conference