DEXUS — Investor Presentation 2016

Aug 16, 2016

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DEXUS Property Group (ASX: DXS)
ASX release
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17 August 2016

2016 Annual results presentation

DEXUS Property Group provides its 2016 Annual results presentation and appendices.

For further information please contact: Investor relations Media relations Rowena Causley T: +61 2 9017 1390 Louise Murray T: +61 2 9017 1446 M: +61 416 122 383 M:+61 403 260 754 E: rowena.causley@dexus.com E: louise.murray@dexus.com

About DEXUS

DEXUS Property Group is one of Australia’s leading real estate groups, investing directly in high quality Australian office and industrial properties. With $22.2 billion of assets under management, the Group also actively manages office, industrial and retail properties located in key Australian markets on behalf of third party capital partners. The Group manages an office portfolio of 1.8 million square metres located predominantly across Sydney, Melbourne, Brisbane and Perth and is the largest owner of office buildings in the Sydney CBD, Australia’s largest office market. DEXUS is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange under the stock market trading code ‘DXS’ and is supported by more than 31,000 investors from 21 countries. With more than 30 years of expertise in property investment, development and asset management, the Group has a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for its investors. View our new website at 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 Limited ABN 24 060 920 783, AFSL 238163, as Responsible Entity for DEXUS Property Group (ASX: DXS)

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DEXUS PROPERTY GROUP

2016 ANNUAL RESULTS PRESENTATION – 17 AUGUST 2016

DEXUS Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for DEXUS Property Group DEXUS Property Group – [presentation title]

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Slide 1
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AGENDA

• Overview

Darren Steinberg, Chief Executive Officer

• Commitment to strategy

• Track record of value creation

• FY16 results highlights

• Strong start to FY17

• Financial results

Alison Harrop, Chief Financial Officer

• Capital management

• Property portfolio

• Transactions, development and trading

Kevin George, EGM Office and Industrial Ross Du Vernet, Chief Investment Officer

• Market outlook

• Funds management

Darren Steinberg, Chief Executive Officer

• Summary

• Appendices

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 2

OVERVIEW

Australia’s largest owner of Prime office properties – overweight Sydney Outperforming and growing Funds Management business

An expanded pipeline of value enhancement opportunities

Underpinned by a strong balance sheet

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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 3

– OVERVIEW Commitment to strategy

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DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 4

– OVERVIEW Track record of value creation

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RETURN ON EQUITY [1] (FY13 - FY16) FUNDS MANAGEMENT PLATFORM GROWTH (FY12 - FY16)
$bn
25% Impacted by CPA $12.0 $11.2bn
transaction costs
20% 19.3% $10.0 99.5% growth
$8.0
15%
11.2% 11.5% $5.6bn
12.2% $6.0
10% 4-yr avg
6.7% $4.0
5%
$2.0
0% $-
FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16
MANAGEMENT EXPENSE RATIO [2] (FY12 - FY16) DISTRIBUTION PER SECURITY GROWTH [4] (FY12 - FY16)
80
67bps cps 43.51cps
70 50
60 45 7.9% CAGR [3]
40 32.1cps
50 35
40 35bps 30
25
30
20
20 15
10
10
5
0 0
FY12 HY13 FY13 HY14 FY14 HY15 FY15 HY16 FY16 FY12 FY13 FY14 FY15 FY16
1. Return on Equity is calculated as the growth in NTA per security plus the distribution paid/payable per security divided by
the opening NTA per security. Starting point for ROE is the 12 months ending 30 June 2013.
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1. Management Expense Ratio is calculated as costs arising from managing DEXUS assets and corporate costs for the 12 months divided by closing balance sheet funds under management at the end of the financial year. 3. Compound Annual Growth Rate. 4. Adjusted for 1-for-6 securities consolidation in FY15. DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 5

FY16 RESULTS HIGHLIGHTS

KEY RESULTS ACHIEVED

6.0%	Growth in FFO and distribution per security
16.0%	Strong one-year office and industrial portfolio returns
96.3%	Office portfolio occupancy by income

HOW RESULTS WERE ACHIEVED

269,866sqm Record year of office leasing[1] $63.3m Trading profits[2] realised $720m Developments completed in DEXUS portfolio

1. DEXUS office portfolio leasing, including Heads of Agreement. 2. Trading profits net of tax.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 6

STRONG START TO FY17

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Exchanged to sell two investment properties for $665 million [1]
$62 million aggregate premium to DEXUS’s prior book value
6 cent uplift to Net Tangible Assets (NTA) per security
Contracted approximately $25 million of additional FY17 trading profits [2]
through priority trading property in Auburn
108 North Terrace, Adelaide Southgate Complex, Melbourne 79-99 St Hilliers Road, Auburn
Investment property Investment property Trading property
1. Includes Southgate Complex, Melbourne for a contracted net sale price of $578.0 million (in which DEXUS has a 100% interest) and 108 North Terrace,
Adelaide for a contracted gross sale price of $86.5 million (owned by the DEXUS Office Partnership, in which DEXUS has a 50% interest).
2. Trading profits pre-tax. DEXUS also settled on Erskine Park in July 2016, contributing approximately $12 million to FY17 trading profits pre-tax.
DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 7
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1. Trading profits pre-tax. DEXUS also settled on Erskine Park in July 2016, contributing approximately $12 million to FY17 trading profits pre-tax. DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 7

FINANCIAL RESULTS

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

Slide 8

– FINANCIAL RESULTS FY16 highlights across key earnings drivers

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FUNDS MANAGEMENT &
PROPERTY PORTFOLIO TRADING
PROPERTY SERVICES
FY16 circa +1% office l-f-l income growth [1] Management Operations Approximately $60m
TARGET circa -7% industrial l-f-l income growth [1] FFO of circa $45m trading profits [2]
FFO of $673.3 million FFO of $44.8 million FFO of $63.3 million [2]
FY16
+ 1.0% office l-f-l income growth [1]
RESULT
-7.1% industrial l-f-l income growth [1]
86% FFO [3] 6% FFO [3] 8% FFO [3]
UNDERLYING BUSINESS TRADING
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1. Like-for-like income growth on an effective basis.

2. Trading profits net of tax.

3. FFO contribution is calculated before Finance costs, Group corporate costs and tax.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 9

– FINANCIAL RESULTS Key financial performance metrics

Key financial performance metrics		FY16	FY15	Change
Adjusted Funds from Operations (AFFO)1	$m	413.9	369.8	11.9%
Distribution per security	cents	43.51	41.04	6.0%
Statutory Net profit	$m	1,259.8	618.7	103.6%
Other key metrics		FY16	FY15	Change
Gearing2		30.7%	28.5%	+2.2ppt
NTA per security		$7.53	$6.68	+12.7%
Business contributions to FY16 FFO		FY16	FY15	Change
Underlying FFO3	$m	547.5	501.9	9.1%
Trading profits (net of tax)4	$m	63.3	42.6	48.6%
Funds from Operations (FFO)	$m	610.8	544.5	12.2%
Underlying FFO per security	cents	56.5	54.8	3.1%
FFO per security	cents	63.1	59.5	6.0%

1. AFFO is calculated in line with the Property Council of Australia definition and comprises PCA FFO adjusted for: maintenance capex, incentives (including rent free incentives) given to tenants during the period and other items which have not been adjusted in determining FFO. Refer to slide 39 for a detailed breakdown. 2. Adjusted for cash and for debt in equity accounted investments. 3. ‘Underlying’ FFO contribution excludes Trading profits (net of tax).

2. Trading profits net of tax.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 10

– FINANCIAL RESULTS Funds From Operations in detail

FINANCIAL RESULTS –Funds From	Operations in	detail
	FY16 $m	FY15 $m	Change $m	Change %
Office property FFO 567.2 533.3 Industrial property FFO 106.1 112.3
Total property FFO 673.3 645.6 Management operations1 44.8 37.9 Group corporate (25.4) (30.4) Net Finance costs (142.0) (150.8)
Other2	(3.2)	(0.4)	(2.8)
Underlying FFO3 Trading profits (net of tax)4	547.5 63.3	501.9 42.6	45.6 20.7	9.1% 48.6%
FFO	610.8	544.5	66.3	12.2%
Adjusted Funds from Operations (AFFO)	413.9	369.8	44.1	11.9%
Distribution payout (% AFFO) 101.7% 100.5%5 Distribution 421.1 385.65

1. ‘Management Operations’ income includes Development management fees.

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

3. ‘Underlying’ FFO excludes Trading profits net of tax.

4. Trading profits net of tax.

5. The FY15 AFFO payout ratio has been adjusted to exclude the $13.9m of distributions paid on new securities issued through the institutional placement and SPP announced in April 2015 which were fully entitled to the distribution for the six months ending 30 June 2015. The AFFO payout ratio was 104.3% including this amount.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 11

– CAPITAL MANAGEMENT Maintained conservative gearing

FY16 ACHIEVEMENTS

FY16 ACHIEVEMENTS
Key metrics	30 Jun 16	30 Jun 15	Change
Gearing (look-through)1	30.7%2	28.5%	2.2 ppt
Cost of debt3	4.8%	5.2%	40 bps
Duration of debt	5.5 years	5.7 years	0.2 years
Hedged debt (ex caps)4	64%	69%	5 ppt
S&P/Moody’s credit rating	A-/A3	A-/A3	No change

FY17 FOCUS

Maintain diverse sources of debt funding

Average cost of debt of circa 4.6% for FY17

Maintain a strong balance sheet

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

2. Gearing is expected to reduce to circa 27% post the receipt of proceeds from recent divestments. This includes the sale of 57-65 Templar Road, Erskine Park (trading property); The Zenith, Chatswood; 108 North Terrace, Adelaide; the first 50% tranche of Southgate Complex, Melbourne and 79-99 St Hilliers Road, Auburn (trading property).

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

4. Average for the period. Hedged debt (including caps) was 71% for 12 months to 30 June 2016 and 76% for 12 months to 30 June 2015. DEXUS was 70% hedged (including caps) as at 30 June 2016.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 12

PROPERTY PORTFOLIO

DEXUS Property Group – [presentation title]2016 Annual Results Presentation and Appendices Slide 13

– PROPERTY PORTFOLIO VALUES: Contribute to portfolio returns

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FY16 VALUES
Office portfolio Industrial portfolio Total portfolio
values up values up valuation uplift of
$769.1m or 9.1% $45.3m or 2.7% $814.4m or 8.0%
FY16 RETURNS
16.0% 16.0% Key drivers of
Office portfolio Industrial portfolio capital contribution
one-year one-year to Return on Equity
total return [1] total return [1] of 19.3%
FY17 OUTLOOK
Prime cap rates [[2]]
1. Returns exclude acquisition costs.
2. Prime office properties located in Sydney and Melbourne.
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to portfolio returns
DEXUS’S PORTFOLIO CAPITALISATION	RATES
30 Jun 2016	Change from
	30 Jun 2015
DEXUS Office portfolio 6.16%	55bps
DEXUS Industrial portfolio 7.38%	39bps
Total DEXUS portfolio 6.33%	55bps
e yields & defensive nature of quality assets
basis points over the next 12 months
r support for valuations

Investment demand to continue as investors seek the secure yields & defensive nature of quality assets

Prime cap rates[[2]] expected to tighten a further 15-25 basis points over the next 12 months

Solid tenant demand will provide further support for valuations

1. Returns exclude acquisition costs. 2. Prime office properties located in Sydney and Melbourne. DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 14

– PROPERTY PORTFOLIO OFFICE: A record year of leasing in FY16

269,866sqm

Total office space leased[1]

385 leasing transactions

DEXUS office leasing by grade

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DEXUS office leasing by grade DEXUS office leasing by Industry (by area)
sqm Finance & Insurance
300,000 15% Government
269,866sqm 24%
Information media and
250,000
2% telecommunications
211,071sqm 2% Property Services
200,000 3%
Business Services
3%
150,000 Construction Services
5% Healthcare
100,000
Legal Services
7%
50,000 Information Technology
23%
- 8% Public Administration
FY15 FY16 8% Other
Premium A Grade B Grade Other
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1. Including Heads of Agreement.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 15

– PROPERTY PORTFOLIO OFFICE: Portfolio performing well

	OCCUPANCYimprovement	96.3% (FY15: 95.3%)
O F	INCENTIVESlower than market	17.7%Average incentives (FY15: 15.0%) Secured 119 effective deals
F I	WALEincrease via developments	4.7 years (FY15: 4.3 years)
C E	RETENTIONremained steady	62% (FY15: 61%)
	LIKE-FOR-LIKE INCOMEas forecast	2.3% Face 1.0% Effective

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 16

– PROPERTY PORTFOLIO OFFICE: Leasing activity improves expiry profile

• Continued implementation of strategies to reduce vacancy and maximise cash flow

• In FY17, 59% of office expiries are located in Sydney

• In a solid position to extract value with focus on addressing exposures in FY19

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20.0% [1]
20%
18%
16%
14.2%
14% 12.7% [1]
12.7%
12% End FY17 target 11.2%
10% End FY16 target 9.7% [1]
8% 9.3%
8.5%
6%
3.7%
4%
2%
0%
Vacant FY17 FY18 FY19 FY20 FY21
FY17 Key leasing risks FY18 Key leasing risks FY19 Key leasing risks FY20 Key leasing risks
Intern’l SOS, 45 Clarence (0.4%) Comm Bank, 2 Dawn Fraser, (0.8%) Woodside, 240 St Georges (4.0%) State of NSW, 14 Lee, (0.7%)
SA Govt, 11 Waymouth (0.4%) Insurance Aust, 46 Colin (0.5%) Lend Lease, 30 The Bond (1.7%) Wilson, 34-60 Little Collins (0.6%)
Wilson, GPT, (0.3%) Carnival, Victoria Cross (0.5%) Comm Bank, 150 George, (0.9%) Norton Rose, Grosvenor, (0.6%)
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Note: Key leasing risks boxes represent tenant; property; and percentage of DEXUS office portfolio income. 1. As at 30 June 2015.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 17

– PROPERTY PORTFOLIO INDUSTRIAL: Impacted by large scale departures

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I 204,238sqm Total industrial space leased [1 ] across 73 leasing transactions
N OCCUPANCY impacted by large 90.4%
tenant movements (FY15: 92.4%)
D
9.5% Average incentives (FY15: 10.8%)
U INCENTIVES improving
Secured 33 effective deals
S
WALE maintained 4.1 years
T
(FY15: 4.0 years)
R
I RETENTION large scale vacanciesimpacted by (FY15: 53%) 32%
A
(4.2)% Face
L LIKE-FOR-LIKE INCOME as forecast (7.1)% Effective
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1. Including Heads of Agreement.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 18

– PROPERTY PORTFOLIO FY17 opportunities and focus

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FY17 OPPORTUNITIES
57% of FY17 expiries
Capture the flight to Improve industrial
across office &
quality in Sydney portfolio occupancy
industrial portfolios
office market from current levels
in Sydney
FY17 FOCUS
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Maintain >96% occupancy in the DEXUS office portfolio Target effective like-for-like income growth of: 2-3% in the DEXUS office portfolio (3.5-4.5% excluding Perth[1] ) 3-4% in the DEXUS industrial portfolio Reduce FY19 DEXUS office lease expiries to 12% by end of FY17

1. Like-for-like income growth was forecast to be 3.5-4.5% before the impact of Woodside’s rent review at 240 St Georges Terrace, Perth (with cap & collar).

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 19

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TRANSACTIONS, DEVELOPMENT AND TRADING
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DEXUS Property Group – [presentation title]2016 Annual Results Presentation and Appendices Slide 20

– TRANSACTIONS Actively recycling properties

• Capitalising on strong investment demand

• Realising value from non-core properties located in non-core markets

• Proceeds initially used to repay debt and to be progressively drawn upon to fund future development pipeline opportunities

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36 George Street, Burwood [1] The Zenith, Chatswood [2]
Gross sale price: $95.0m Gross sale price: $1 39.5m
Premium to book value: 44% Premium to book value: 7%
Settlement: 13 N ov 2015 Settlement: 29 J ul 2016
108 North Terrace, Adelaide [1] Southgate Complex, Melbourne [3]
Gross sale price: $86.5m Net sale price: $ 578.0m
Premium to book value: in line Premium to book value: 12%
Settlement: 7 Sept 2016 Settlement: Dec 2016/J ul 2017
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1. 100% sale proceeds and owned 50/50 by DEXUS and DEXUS Office Partnership.

2. DEXUS 50% interest.

3. Settlement date is subject to purchaser receiving FIRB approval and will occur in two equal tranches. The first 50% is expected to settle prior to the end of 2016 calendar year with the remaining 50% expected to settle in late July 2017.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 21

– DEVELOPMENT Strong returns achieved on development completions

5 Martin Place, Sydney, NSW Cost[1] : $111m Yield on cost[2] : 7.0% Profit to Jun-2016[1] : $31.9m Project IRR at PC 35.8% Occupancy: 97.9%

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Radius Industrial Estate, Larapinta, Qld
Cost [1] : $14m
Yield on cost [2] : 8.5%
Profit to Jun-2016 [1] : $2.7m
Project IRR at PC: 19.4%
Occupancy [3] : 100%
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Kings Square, Perth, WA Cost[1] : $217m Yield on cost[2] : 8.1% Profit to Jun-2016[1] : $18.4m Project IRR at PC: 13.6% Occupancy: 100% 57% of office space committed with 100% of income secured under a 5 year guarantee from practical completion 480 Queen Street, Brisbane, Qld Cost[1] : $298m Yield on cost[2] : 7.0% Profit to Jun-2016[1] : $80.6m Project IRR at PC: 20.9% Occupancy: 100%

480 Queen Street, Brisbane, Qld

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1. DEXUS ownership interest.

2. Initial net property income at completion divided by total development cost (including capitalised interest). 3. Occupancy has increased to 100% post 30 June 2016 as a result of securing two separate Heads of Agreements.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 22

– DEVELOPMENT Expanded pipeline of development opportunities

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$4.7bn
Group development pipeline
$1.7bn $3.0bn
DEXUS portfolio Third Party Funds
Refer to slide 65 for
$389m $1,314m full breakdown of
across 5 committed projects across 8 uncommitted projects third party
development pipeline
$266m
Refer to slide 59-62 for full breakdown
remaining spend
of DEXUS development pipeline
Circa 4.7% of balance sheet FUM allocated to
development, trading and value-add at 30 June 2016
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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 23

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–
TRADING 2 priority projects materialise into FY17 trading profits [1]
2 priority projects
contribute $37m to FY17 trading profits [1]
57-65 Templar Road, Erskine Park 79-99 St Hilliers Road, Auburn
Secured profit [1] : $12m Contracted profit [1] : $25m
Settled: 1 July 16 Expected to settle: 31 Jan 17
TRADING PIPELINE
$90-100m FY17-19
4
aggregate trading profits [1] to be trading pipeline
remaining priority projects
delivered over the next 3 years enhanced
Priority projects Sector Trading strategy Status
Lakes Business Park South, Botany Industrial Pursuing residential re-zoning Progressing
32 Flinders Street, Melbourne Car park Pursuing residential re-zoning Planning permit received on 26 July 2016
105 Phillip Street, Parramatta Office Develop and lease AFL with Government Property NSW and construction underway
12 Frederick Street, St Leonards Mixed use Rezone, lease and develop Secured HoA with major tenant for long term lease
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1. Trading profits are pre-tax.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 24

– TRANSACTIONS, DEVELOPMENT AND TRADING FY17 focus & opportunities

FY17 OPPORTUNITIES

FY17 FOCUS

Capitalise on strong investment demand to enhance returns and continue to improve portfolio quality

Advance pre-commitments to activate identified projects Progress committed development projects Progress pipeline of trading and development prospects

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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 25
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MARKET OUTLOOK

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

Slide 26

– MARKET OUTLOOK Office pricing is maintaining a wide spread to bond yields

Average valuation discount rates for Sydney CBD A-grade office properties

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%
Valuation discount rate Australian 10yr bond US 10yr Treasury
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Jun-06 Jun-08 Jun-10 Jun-12 Jun-14 Jun-16
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Source: IPD/MSCII, DEXUS Research estimate for June 2016.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 27

– MARKET OUTLOOK Why the Sydney market will tighten significantly by FY19

Sydney CBD waterfall chart – FY16 to FY19

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VACANCY FY16 SUPPLY WITHDRAWALS NET ABSORPTION VACANCY FY19 VACANCY FY20
FY16 vacancy New supply Withdrawals to Demand positive. Lowest level of Supply to increase
down from 7.8% down 25% on offset new supply. Forecast of vacancy in in
last year with average levels. Sydney metro 66,000sqm p.a. fifteen years FY20 (+110,000sqm)
119,000sqm Only 2 buildings withdrawals add compares to and
absorbed in the >20,000sqm to 58,000sqm to gross run rate of
FY21 (+146,000sqm)
CBD complete after leasing activity 128,000sqm p.a.
Barangaroo over the past 2 years
‘000 sqm
700
+ 5.1% - 5.2%
600
500 262,000sqm 265,000sqm
of supply
withdrawals - 3.9%
400 7.1%
300
198,000sqm
3.7%
of net absorp
200 361,000sqm = 3.1%
of vacancy
100 159,000sqm 190,000sqm
Of vacancy
of vacancy
0
Vacancy FY16 New supply Withdrawals Net absorption Vacancy FY19 Vacancy FY20
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Source: DEXUS Research, long term average based on 20 year average as a percentage of total stock.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 28

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FUNDS MANAGEMENT
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DEXUS Property Group – [presentation title]2016 Annual Results Presentation and Appendices Slide 29

– FUNDS MANAGEMENT Performing for third party clients

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Total third party FUM
increased 17% from $9.6bn to $11.2bn
DWPF outperformance [1]
DEXUS Wholesale
1 year +200bps
Property Fund (DWPF)
3 years +80bps
outperformed
5 years +70bps
benchmark over all
periods 7 years +110bps
DEXUS Office Partnership
achieved 17.7% one-year unlevered
property return
$658m of equity
raised by DWPF, from existing Unitholders and
10 new investors attracted to DWPF
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1. DWPF outperformance per annum against its benchmark which is the Mercer IPD Australian Pooled Property Fund Index.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 30

– FUNDS MANAGEMENT Adding value for third party clients

Completed 9 developments and replenished $3.0 billion[1] third party development pipeline ($2.5 billion remaining spend[1] )

Leveraged industrial development capabilities to achieve 36,645sqm of pre-commitments at Quarrywest, Greystanes

Leveraged retail leasing and development capabilities at new City Retail offerings

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Gateway Retail opening from September 2016 Grosvenor Place restaurant precinct, opening late 2016

Galleria, Melbourne ambiance upgrade largely completed in June 2016

1. Third party funds’ or partners’ share of development spend and including DEXUS Wholesale Property Fund’s share of Westfield developments. DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 31

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SUMMARY
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DEXUS Property Group – [presentation title]2016 Annual Results Presentation and Appendices

Slide 32

– SUMMARY FY17 outlook for key drivers of business

PROPERTY PORTFOLIO

FUNDS MANAGEMENT & PROPERTY SERVICES

TRADING

• Portfolio income underpinned by � Solid annuity-style income high occupancy and fixed rental stream

• FY17 increases � Organic growth supported

• OUTLOOK � Focus on maintaining >96% office by $3.0bn development occupancy pipeline

• Like-for-like income[1] recovering: � Target circa $45-50m Target 2-3% growth for office contribution to FFO Target 3-4% growth for industrial

UNDERLYING BUSINESS

• Capital deployed to trading is modest and relatively low risk

• De-risked FY17 trading profits through securing $37m (pre-tax) across two priority projects

• Target FY17 trading profits of circa $45-50m (net of tax) TRADING

• Like-for-like income growth on an effective basis.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 33

SUMMARY

• Grown FFO and distributions while de-risking the business:

• Enhancing office portfolio metrics and quality

• De-levering the balance sheet with recent divestments

• Positioned for future growth

• Taking into account recent divestments, market guidance[1] for the 12 months ending 30 June 2017

• Underlying FFO per security growth of 3.0-3.5%

• FFO per security in line with FY16

• Distribution per security growth of 2.5-3.5%

• Barring unforeseen circumstances guidance is supported by the following assumptions: Impact of dilution from the divestment of: 36 George Street, Burwood; 57-65 Templar Road, Erskine Park; The Zenith, Chatswood; 108 North Terrace, Adelaide; the first 50% tranche of Southgate Complex, Melbourne and 79-99 St Hilliers Road, Auburn; 2-3% like-for-like income growth across the DEXUS Office portfolio and 3-4% like-for like income growth across the DEXUS Industrial portfolio, weighted average cost of debt of circa 4.6%, trading profits of circa $45-50m net of tax, Management Operations FFO of circa $45-50m (including third party development management fees), and excluding any further transactions.

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DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 34

APPENDICES

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

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Slide 35
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CONTENTS

• Overview

  • Total Group portfolio composition
• • Creating value and delivering on strategy over the past 4 years

• Financial results

  • Reconciliation to statutory net profit
• • Management operations profit

• Cash flow reconciliation

  • Interest reconciliation

• Change in net tangible assets & revaluations

• Direct property portfolio movements

• Capital management

  • FY16 overview

• Debt position at 30 June 2016

• Interest rate hedging profile at 30 June 2016

• Portfolio results

  • Developments and Sydney portfolio drive returns

• DEXUS Office portfolio

  • DEXUS Industrial portfolio

• Office & Industrial portfolio sustainability metrics

• • DEXUS completed developments and pipeline

• Range of development opportunities across portfolio

• DEXUS committed developments & portfolio capex

• DEXUS uncommitted developments

• Transactions

• Trading

• Funds Management

• Development pipeline

• FY17 focus and opportunities

• Market outlook

• Exchange rates & securities used in statutory accounts

• Glossary

• Important information

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 36

– OVERVIEW Total Group portfolio composition

DEXUS	FUNDS MANAGEMENT	TOTAL
PORTFOLIO	PORTFOLIO	GROUP PORTFOLIO
$11.0bn	$11.2bn	$22.2bn
DEXUS owned and managed portfolio of Australian office and industrial properties	Management of a diverse portfolio of office, industrial and retail properties on behalf of third party partners and funds
OFFICE:$9.2bn	OFFICE:$5.7bn	OFFICE:$14.9bn
INDUSTRIAL:$1.8bn	INDUSTRIAL:$1.3bn	INDUSTRIAL:$3.1bn
	RETAIL:$4.2bn	RETAIL:$4.2bn
DEVELOPMENT PIPELINE(future growth )
DEVELOPMENT:$1.7bn	DEVELOPMENT:$3.0bn	DEVELOPMENT:$4.7bn

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 37

– OVERVIEW Creating value and delivering on strategy over the past 4 years

	Divested $1.7 billion from offshore markets, and reinvested in office			Delivered enhanced returns to Security holders through acquisitions:	Delivered enhanced returns to Security holders through acquisitions:
	95.7% average office occupancy, well above 89.8% national average			Unlevered IRR
				DPIF1 Sydney portfolio	9.3%
	15.6% average office incentives, well below market			CPA transaction2 480 Queen Street, Brisbane	21.1% 20.9%
				5 Martin Place, Sydney	35.8%
	Scale in CBD office has enabled implementation of best practice systems			Kings Square, Perth	13.6%
	and roll out of DEXUS Place in Sydney, Melbourne and Brisbane
	Raised $4.9 billion in third party capital
	Attracted 19 new capital partners/wholesale investors
	Increased Management Operations profit by 143% since FY12
	Involved in $5.3 billion of transactions3 for third party clients, driving performance and returns

1. Three Sydney office properties acquired from the Direct Property Investment Fund (DPIF) in December 2012. 2. DEXUS’s annualised levered IRR which includes the DEXUS Office Partnership portfolio return and the initial 14.9% interest in CPA. 3. From FY12 to FY16. DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 38

– FINANCIAL RESULTS Reconciliation to statutory net profit

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

Reference	Item	30 Jun 2016	30 Jun 2015
		$m	$m
Statutory AIFRS net profit after tax		1,259.8	618.7
A Investment property and inventory
A2	(Gains)/losses from sales of investment property	(15.0)	3.1
A3	Fair value gain on investment property	(814.4)	(241.0)
C Financial instruments
C2	Fair value (gain)/loss on the mark-to-market of derivatives	(70.5)	31.1
D Incentives and rent straight-lining
D1	Amortisation of fit out incentives	44.7	42.2
D2	Amortisation of lease fees	8.5	6.5
D4	Amortisation of rent-free periods	51.0	40.4
D5	Rent straight-lining	(11.3)	(9.2)
E Tax
E1	Non-FFO deferred tax benefits	13.1	19.2
F Other unrealised or one-off Items
F1	Recycling of foreign currency translation reserve (FCTR)	-	2.1
F2	Other unrealised or one-off items1	144.9	31.4
FFO		610.8	544.5
G Maintenance and leasing capex
G1	Maintenance capital expenditure	76.2	52.9
G2	Cash incentives and leasing costs paid	61.9	65.4
G3	Rent free incentives	58.8	56.4
AFFO		413.9	369.8
Distribution		421.1	385.6
AFFO Payout ratio (Distribution/AFFO)		101.7%	100.5%2

1. Includes $110.8m of unrealised fair value losses on interest bearing liabilities, $23.7m coupon income and rental guarantees received, $3.3m amortisation of intangible assets and $7.1m transaction costs.

2. The FY15 AFFO payout ratio has been adjusted to exclude the $13.9m of distributions paid on new securities issued through the institutional placement and SPP announced in April 2015 which were fully entitled to the distribution for the six months ending 30 June 2015. The AFFO payout ratio was 104.3% including this amount.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 39

– FINANCIAL RESULTS Management operations profit

MANAGEMENT OPERATIONS PROFIT

FY16	Property	Funds	Development	Management
($m)	Management	Management	Management	Operations
Revenue	57.6	46.1	6.7	110.4
Operating expenses	(43.3)	(16.8)	(5.5)	(65.6)
FY16 net profit	14.3	29.3	1.2	44.8
FY16 margin	25%	64%	18%	41%
FY15 margin	27%	61%	3%

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 40

– FINANCIAL RESULTS Cash flow reconciliation

		30 Jun 2016	30 Jun 2015
		$m	$m
Cash flow from operating activities		663.7	661.4
add back:	payment for inventory acquisition and capex	33.8	53.3
less:	cost of sale of inventory	(114.3)	(172.2)
add:	proceeds from sale of Rosebery received in advance	1.7	(1.7)
add:	receivable from sale of Mascot	5.0	-
add:	tax on sale of 88 Shortland Street	4.5	-
less:	tax on trading profits not yet paid	(27.1)	(5.3)
add back:	capitalised interest	9.3	6.0
	adjustments for equity accounted distributions	(23.2)	(55.9)
	other working capital movements	4.1	8.9
Adjusted cash flow from operating activities		557.5	494.5
Rent free income		58.8	56.4
Depreciation and amortisation	(incl. deferred borrowing costs)	(5.6)	(6.4)
FFO		610.8	544.5
Less: maintenance capex and incentives		(196.9)	(174.7)
AFFO		413.8	369.8
less: gross distribution		(421.1)	(385.6)
Add back distribution paid on new DEXUS Securities		-	13.9
Cash surplus		(7.3)	(1.9)

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 41

– FINANCIAL RESULTS Interest reconciliation

FINANCIAL RESULTS – Interest reconciliation
	30 Jun 2016	30 Jun 2015
	$m	$m
Total statutory finance costs	171.3	192.4
Less: unrealised interest rate swap MTM loss1	(35.8)	(48.5)
Add: finance costs attributable to investments accounted for using the equity method	7.6	7.9
Net finance costs for FFO2	143.1	151.8
Add: interest capitalised	9.5	7.2
Gross finance costs for cost of debt purpose	152.6	159.0

1. Net fair value loss of interest rate swap of $47.3m (per note 2 of the Financial Statements) includes realised interest rate swap expense of $11.5m and unrealised interest rate swap MTM loss of $35.8m.

2. Excludes interest income of $1.1m.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 42

– FINANCIAL RESULTS Change in net tangible assets and revaluations

	$m	$ps
Opening net tangible assets (30 Jun 15)	6,485	6.68
Revaluation of real estate	814	0.84
Retained earnings1	190	0.20
Amortisation of tenant incentives2	(93)	(0.10)
Buyback of equity	(20)	-
Fair value movements3	(87)	(0.09)
NTA changes in comprehensive income	804	0.85
Closing net tangible assets (30 Jun 16)	7,289	7.53

	Investment portfolio	Valuation	Cap	% of
		change	rate	portfolio
		$m	%
	DEXUS office portfolio	769.1	6.16	84%
	DEXUS Industrial portfolio	45.3	7.38	16%
	Total DEXUS portfolio	814.4	6.33

1. Represents FY16 FFO less distributions.

2. Includes rent straight-lining.

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

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 43

– FINANCIAL RESULTS Direct property portfolio movements

FINANCIAL RESULTS –Direct propert	y portfolio mo	vements
Office1 $m	Industrial1 $m	DEXUS total1 $m	Trading assets2 (inventory)
Opening direct property 7,822 Lease incentives 3 106 Maintenance capex 60 Acquisitions 371 Transfer to inventories 4 - Developments 5 227 Disposals 6 (33) Revaluations 769 Amortisation (93) Rent straightlining 9	1,711 15 16 1 - 89 (119) 45 (11) 2	9,533 121 76 372 - 316 (152) 814 (104) 11	275 - - - 80 36 (114) - (1) -
Closing balance at the end of the period 9,238	1,749	10,987	276

1. Includes DEXUS’s share of equity accounted investments.

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

3. Transfers to inventories are eliminated within the Office, Industrial and DEXUS total amounts. 5. Includes capitalised interest.

4. At book value.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 44

– CAPITAL MANAGEMENT FY16 overview

Key metrics	30 June 2016	30 June 2015
Total debt1	3,687m	$2,774m
Cost of debt2	4.8%	5.2%
Gearing (look-through)3	30.7%	28.5%
Headroom (approximately)4	$0.4bn	$0.8bn
Debt duration	5.5 years	5.7 years
S&P/Moody’s rating	A-/A3	A-/A3
Covenant gearing (covenant5 <55%)	30.3%	27.2%
Interest cover (covenant5,6 >2.0x)	4.4x	4.8x
Priority debt (covenant5 <30%)	0%	0%

1. Total debt does not include $86m of debt in an equity accounted investment. 2. Weighted average for the year.

2. Adjusted for cash and for debt in equity accounted investments. 4. Undrawn facilities plus cash. 5. As per public bond covenants. 6. Look-through interest cover is 4.2x.

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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 45

– CAPITAL MANAGEMENT Debt position at 30 June 2016

• Increased diversity and duration of debt profile issuing via reverse enquiry

• $160 million of Medium Term Notes at an average duration of 9 years

• A$100 million of US Private Placement (USPP) notes at an average duration of 12 years

• Gearing[1] of 30.7%[2] at low end of target 30%-40% range

• DEXUS bought back 2.9m securities at pricing ranging from $7.055-$7.200

Debt maturity profile

Diversified mix of facilities

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$m
800
144A 8%
600
USPP 24%
400 Bank
Facilities
48%
200
-
MTN 17%
Commercial
Paper 3%
DCM CPA MTN Bank
1. Adjusted for cash and for debt in equity accounted investments.
2. Gearing is expected to reduce to circa 27% post the receipt of proceeds from recent divestments. This includes the sale of 57-65 Templar Road, Erskine Park
(trading property); The Zenith, Chatswood; 108 North Terrace, Adelaide; the first 50% tranche of Southgate Complex, Melbourne; and 79-99 St Hilliers Road,
Auburn (trading property).
Jun 2017 Jun 2018 Jun 2019 Jun 2020 Jun 2021 Jun 2022 Jun 2023 Jun 2024 Jun 2025 Jun 2026 Jun 2027 Jun 2028 Jun 2029
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DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 46

– CAPITAL MANAGEMENT Interest rate hedging profile at 30 June 2016

Hedging profile	30 June 2016	30 June 2015
Average amount of debt hedged1	71%	76%
Average amount of debt hedged excluding caps	64%	69%
Weighted average interest rate on hedged debt2	3.4%	3.7%
Weighted average fixed & floating rate3	4.8%	5.2%
Weighted average maturity of interest hedges	4.0 years	3.8 years

Hedge maturity profile

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2,500 8.0%
2,000
6.0%
1,500
4.0%
1,000
2.0%
500
- 0.0%
FY16 FY17 FY18 FY19 FY20 FY21
Net fixed debt Interest Rate Caps Interest Rate Swaps Weighted Average Hedge Rate (excl margin)
1. Average amount hedged for the period (including caps).
2. Including fixed rate debt (without credit margin).
3. Including fees and margins.
DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 47
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– PORTFOLIO RESULTS Developments and Sydney portfolio drive returns

• Strong contribution from key markets of Sydney and Melbourne (73% of the office portfolio)

• Cap rate compression of 55bps across the portfolio equates to 9.1% of capital growth

• Three development projects that were completed during the period added 30bps to the portfolio return

Office portfolio total return composition[1]

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20.9% 20.2%
17.1%
16.0%
14.1%
12.0%
14.7% 14.5% 9.6% 9.2% 5.9% 8.8% -10.6%
5.1% 6.2%
10.3%
5.5% 5.0% 6.9% 6.3% 7.8% 6.6% 7.0% 8.3%
-1.4% -0.7%
Sydney CBD Office Melbourne DEXUS Office Rest of Brisbane CBD Canberra Adelaide CBD Perth CBD
Development CBD Portfolio Australia Region -17.5%
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Income Capital Total

1. Returns exclude acquisition costs.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 48

– PORTFOLIO RESULTS Office portfolio leasing[1] achievements at key properties

Sydney properties 100% occupied

• 1 Margaret Street, Sydney

• 30 The Bond, Sydney

• 44 Market Street, Sydney

• 383-395 Kent Street, Sydney

• 175 Pitt Street, Sydney

• 150 George Street, Parramatta

• 101 George Street, Parramatta

• 14 Lee Street, Sydney

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385 Bourke Street, Melbourne
25 leases over 15,491sqm,
increasing occupancy [2] to 95%
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1 Farrer Place, Sydney
40 leases over 22,673sqm,
increasing occupancy [2] to 92%
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Southgate Complex
12 leases over 20,533sqm,
increasing occupancy [2] to 88%
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Grosvenor Place, Sydney
28 leases over 17,494sqm,
increasing occupancy [2] to 94%
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1. Including Heads of Agreement.

2. Occupancy by area.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 49

– PORTFOLIO RESULTS Office portfolio diversification

DEXUS office by asset type

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Car park 2%
Land <1%
Office Park 2%
Premium 38%
B Grade 5%
A Grade 53%
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DEXUS office by location
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NSW 60%
ACT 1%
SA 1.4%
WA 8%
QLD 17%
VIC 13%
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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 50

– PORTFOLIO RESULTS Office portfolio lease expiry profile at 30 June 2016

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18%
15.6%
16%
14.2%
14%
12.7%
11.9% 11.8%
12% 11.2% 11.1%
10.1%
10% 9.3% 9.5%
8.3% 8.5%
8%
6%
3.7% 3.7%
4%
2%
0%
Available FY17 FY18 FY19 FY20 FY21 FY22
Income Area
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DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 51

– PORTFOLIO RESULTS Office portfolio lease expiry profiles at 30 June 2016

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Sydney CBD Office Portfolio Sydney Suburban Office Portfolio
20% 25%
14.1% 15.0% 20% 19.9% 21.3% 21.2% 21.6% 19.3% 19.1%
15% 12.9% 13.1% 12.9%
11.9%
10% 9.4% 8.6% 7.7% 8.3% 10.7% 9.9% 15%10% 10.7% 8.8% 7.6% 8.4%
5% 3.1% 2.7% 5% 3.6% 3.1% 5.7% 4.7%
0% 0%
Available FY17 FY18 FY19 FY20 FY21 FY22 Available FY17 FY18 FY19 FY20 FY21 FY22
Income Area Income Area
Melbourne Office Portfolio
Brisbane Office Portfolio 25% 23.1%
35% 28.9% 29.3% 19.8%
30% 20%
25%
15%
20%15% 10% 6.4% 7.4% 9.0% 8.4% 8.3% 9.5% 8.5% 8.7% 8.1%
10%5% 3.4% 3.3% 8.2%5.3% 2.4% 2.6% 5.2% 5.1% 3.6% 3.7% 7.3% 6.3% 5% 5.1% 2.4% 2.1%
0%
0%
Available FY17 FY18 FY19 FY20 FY21 FY22
Available FY17 FY18 FY19 FY20 FY21 FY22 Income Area
Income Area
DEXUS Office [1] Value Cap rate Yield [2] 60% Perth Office Portfolio
($m) (%) (%) 50% 46.0% 48.2%
Sydney CBD 4,647 5.7% 5.5%
40%
Sydney Suburban 773 7.1% 7.3% 30%
Melbourne CBD 1,199 6.1% 6.2% 20% 10.9% 10.0% 12.8% 13.5%
Brisbane CBD 1,524 6.3% 6.4% 10% 2.1% 1.1% 3.4% 3.2% 4.3% 4.3% 6.3% 4.9%
Perth CBD 682 7.0% 7.5% 0%
Available FY17 FY18 FY19 FY20 FY21 FY22
Income Area
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1. Includes stabilised properties only. Excludes Adelaide and Canberra office properties. 2. Passing FFO yield based on annualised Property Funds From Operations for the month of July 2016.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 52

– PORTFOLIO RESULTS Office portfolio top 10 customers

Diversity of office customers by income

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Office customer S&P rating % of income1 Commonwealth of Australia AAA negative 4.0% Wilson Parking Not rated 3.6% Woodside Energy BBB+ negative 3.2% Rio Tinto A- negative 2.7% Commonwealth Bank of Australia AA- negative 2.6% State of NSW AAA negative 1.8% Deloitte Not rated 1.6% State of Victoria AAA negative 1.4% Lend Lease BBB- stable 1.4% The Herald and Weekly Times BBB+ stable 1.0%	Dive	Other Non-metallic mining/quarrying Tourism Superannuation Food and beverage manufacturing Electricity, gas, water and waste service Employment Placement and Recruitment Services Engineering Consultancy Services Healthcare and social assistance Retailing (non-food) Investment banks Insurance Food Retailing Rental & Real Estate services Construction services Other finance Business Services Other Metal ore mining Federal Government Car park services Accounting services Oil and Gas State Government Banks & building societes Information media and telecommunications Legal services rsity of office customers by income

1. 30 June 2016 fully leased total DEXUS portfolio passing income.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 53

– PORTFOLIO RESULTS Industrial portfolio diversification

DEXUS industrial by asset type

DEXUS industrial by location

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Land 4%
Data Centre 4%
Business Park 27% NSW 57%
SA 2%
Industrial Estate
43%
QLD 5%
Distribution VIC 36%
Centre 22%
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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 54

– PORTFOLIO RESULTS Industrial portfolio lease expiry profile at 30 June 2016

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18%
15.6%
16%
14.1% 14.2%
14%
12% 10.9% 11.2%
9.6% 9.4% 9.4%
10% 8.7% 8.9%
8.3%
7.6% 7.9%
8%
6% 5.4%
4%
2%
0%
Available FY17 FY18 FY19 FY20 FY21 FY22
Income Area
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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 55

– PORTFOLIO RESULTS Industrial portfolio lease expiry profiles at 30 June 2016

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Sydney Industrial Portfolio Melbourne Industrial Portfolio
20% 18.3% 17.1% 16.7% 20%
14.1% 14.4% 14.6% 15.2% 14.1%
15% 12.0%10.0% 11.4% 11.7% 15% 11.7%11.7% 11.2%10.4%
10% 10% 8.8% 8.9% 7.7%
6.7% 6.2%
5% 4.1%4.3% 3.3%3.2% 5% 4.7% 4.3% 4.0%
0% 0%
Available FY17 FY18 FY19 FY20 FY21 FY22 Available FY17 FY18 FY19 FY20 FY21 FY22
Income 4.3% Income Area
Adelaide Industrial Portfolio
Brisbane Industrial Portfolio
40% 33.6% 35.5% 50% 46.8% 44.7%
30% 40%
20% 30% 22.2% 23.9% 19.8% 20.0%
11.5% 14.0% 20%
10% 0.0%0.0% 2.9% 1.9% 1.3% 1.6% 0.0% 0.0% 9.0% 7.9% 10% 5.3% 5.2% 0.0% 0.0% 5.8% 6.2% 0.0% 0.0%
0% 0%
Available FY17 FY18 FY19 FY20 FY21 FY22 Available FY17 FY18 FY19 FY20 FY21 FY22
Income Area
Income Area
DEXUS Value Cap rate Yield [2]
Industrial [1] ($m) (%) (%)
Sydney 805 7.2% 6.9%
Melbourne 548 7.3% 6.9%
Brisbane 53 7.3% 7.2%
Adelaide 27 11.0% 10.9%
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1. Includes stabilised properties only.

2. Passing FFO yield based on annualised Property Funds From Operations for the month of July 2016.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 56

– PORTFOLIO RESULTS Industrial portfolio top 10 customers

Diversity of industrial customers by income

		Div
Industrial customer	% of income1
		100%
Wesfarmers Limited	1.1%
		90%
AWH Pty Ltd	0.5%
Reece	0.5%	80%
IBM Australia	0.5%
		70%
Visy Industry Packaging Pty Ltd	0.4%
		60%
Fedex	0.4%
Blackwoods	0.4%	50%
Fonterra Co-Operative Group	0.3%	40%
Toll Transport Pty Ltd	0.3%	30%
Device Technologies	0.3%
		20%
		10%
		0%

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Other

Healthcare and social assistance Engineering Consultancy Services Scientific and Technical Services Business Services Other Food and beverage manufacturing

Pharmaceutical wholesaling

Postal and courier pick-up and delivery services Retailing (non-food)

Construction services Transport support services Other manufacturing

Road, rail, water, air and space transport

Information media and telecommunications General wholesaling

Warehousing and storage services

1. 30 June 2016 fully leased total DEXUS portfolio passing income.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 57

– PORTFOLIO RESULTS Office and Industrial portfolio sustainability metrics

DEXUS office portfolio NABE Ener avera ratin	RS gy ge g NABERS Water average rating
Jun 13 4.7	3.2
Jun 14 4.8	3.5
Jun 15 4.7	3.8
Jun 16 4.8	3.7

Office: NABERS Energy Ratings by Area

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6 stars 0 stars
5.5 stars 0.5 stars
5 stars
1 stars
4.5 stars 1.5 stars
4 stars 2 stars
3.5 stars 2.5 stars
3 stars
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DEXUS Office Energy and GHG Emissions
855.4 DEXUS Office Water Intensity
609.0 Intensity
715.8
133.7
367.3
76.0
39.7% energy intensity reduction
16.3% water intensity reduction
43.2% emissions intensity reduction
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
DEXUS Industrial Energy and GHG DEXUS Industrial Water Intensity
Emissions Intensity
34.7
360.7
8.7 312.8
16.8
3.6
51.6% energy intensity reduction 15.3% water intensity increase
58.8% emissions intensity reduction
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
CO2-e/sqm
Water Intensity (L/sqm)
Energy Intensity (MJ/sqm)
Scope 1 & 2 GHG Emissions kg
e/sqm
Energy Intensity (MJ/sqm) Water Intensity (L/sqm)
Scope 1 & 2 GHG Emissions kg CO2-
----- End of picture text -----

Note: Data in charts is unaudited.

1. NABERS ratings on a like-for-like basis.

2. NABERS ratings on an absolute basis.

3. Water consumption is primarily under the control of tenants, with the increase in 2014 and 2015 due to tenant demand for water at Kings Park Industrial Estate.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 58

– PORTFOLIO RESULTS DEXUS completed developments and pipeline

Pipeline	Building area	Project cost	Yield on cost	Space leased	Final
	sqm1	A$m2	%	%	Completion
Office/City Retail
480 Queen St, Brisbane, QLD	56,754	298	7.0%	100%	Mar 2016
Kings Square, Wellington St, Perth, WA3	53,647	217	8.1%	100%	Nov 2015
5 Martin Pl, Sydney, NSW	33,638	111	7.0%	98%	Sep 2015
385 Bourke St (Galleria), Melbourne, VIC4	918	4	8.1%	54%	Jun 2016
Total office/city retail	144,957	630
Industrial
1 Litton Cl, Quarry Industrial Estate, Greystanes, NSW	20,755	33	7.6%	100%	Jun 2016
1 & 2 Turnbull Cl, Quarry Industrial Estate, Greystanes, NSW	7,900	8	7.0%	100%	Oct 2015
4 Bellevue Cct, Quarry Industrial Estate, Greystanes, NSW	1,831	8	7.9%	100%	Oct 2015
50 Foundation Rd, Laverton North, VIC	25,650	28	7.2%	100%	Mar 2016
Radius Industrial Estate, Larapinta, QLD5	22,950	14	8.5%	100%	Feb 2016
Total industrial	79,086	91
Total developments completed	224,043	721

1. At 100%.

2. DEXUS interest in development cost.

3. 57% of office space committed with 100% of income secured under a 5 year guarantee.

4. City retail developments.

5. Radius Industrial Estate space leased increased to 100% post 30 June 2016 as a result of securing two separate heads of agreement.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 59

– PORTFOLIO RESULTS Range of development opportunities across portfolio

Circa.$1.7 billion DEXUS development pipeline (excluding trading)

Completion over		2-5 years	2-5 years	Beyond 5 years
	100 Mount Street, North Sydney		12 Creek Street, Brisbane	Waterfront Place Precinct, Brisbane (mixed use)
OFFICE	180 Flinders Street, Melbourne			Sydney CBD office opportunity
	Total of	5 projects over 289,609sqm / cost of c. $1.3bn1
	Laverton North (Wrightson Seeds)			Laverton North (two stages)
	Quarrywest, Greystanes (three stages)
INDUSTRIAL	141 Anton Road, Hemmant
	Axxess Corporate Park, Mount Waverley
	Total of	5 projects over 305,181sqm / cost of c. $344m1
	105 Phillip Street, Parramatta2		12 Frederick Street, St Leonards2
TRADING	Lakes Business Park (South), Botany2		32 Flinders Street, Melbourne2
		Total of 4 priority trading projects
	321 Kent Street, Sydney
CITY RETAIL	175 Pitt Street, Sydney
	44 Market Street, Sydney
	Total of 3 projects over 11,337sqm / cost of c. $71m1

Note: bold indicates properties identified in DEXUS development pipeline as at 31 December 2015. 1. Estimated total development cost (DXS share).

1. Priority trading projects not yet exchanged.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 60

– PORTFOLIO RESULTS DEXUS committed developments & portfolio capex

Pipeline	Building area	Project cost	Est. cost to	Yield on cost	Leased	Completion
	sqm1	est.	completion	%	%	due
		$m2	$m
Office
100 Mount Street, North Sydney, NSW	41,419	226	176	>7.3%	15%	Jan 2019
Total office	41,419	226	176
Industrial
2A Basalt Rd & 1 Charley Cl (Precinct E) Quarrywest, Greystanes, NSW	36,045	34	7	8.0%	74%	Sep 2016
13 Felstead Dr, Laverton North, VIC	10,194	12	8	7.2%	100%	Nov 2016
5 Dolerite Way (Precinct B), Quarrywest, Greystanes, NSW	10,100	9	5	7.5%	100%	Mar 2017
Quarrywest, Greystanes, NSW	80,480	58	34	8.1%	nil	Aug 2018
141 Anton Road, Hemmant, QLD	68,410	50	36	8.0%	nil	Jan 2019
Total industrial	205,229	163	90
Total developments committed	246,648	389	266

DEXUS total portfolio capital expenditure	FY16	FY17E
Maintenance capital expenditure	$76.2m	$50-55m
Cash incentives and leasing costs	$61.9m	$40-45m
Total capital expenditure	$138.1m	$90-100m

1. At 100%.

2. DEXUS interest in development cost (including land).

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 61

– PORTFOLIO RESULTS DEXUS uncommitted developments

PORTFOLIO RESULTS –DEXUS uncommitted d	evelopments
Pipeline Building area1 sqm	Project cost est.2 $m Est. cost to completion $m Est. yield on est. project cost %
Office/City Retail Waterfront Place Precinct, Brisbane, QLD 167,500 Sydney CBD office opportunity 51,195 180 Flinders St, Melbourne, VIC 22,765 12 Creek St, Brisbane, QLD 6,730 321 Kent St Retail Podium, Sydney, NSW3 4,655 175 Pitt St, Sydney, NSW3 3,915 44 Market St, Sydney, NSW3 2,767	495 495 N/A 382 382 7% 154 154 7% 31 31 7% 21 21 7% 28 28 7% 22 22 8%
Total office/city retail 259,527	1,133 1,133
Industrial DEXUS Industrial Estate (Stage 3 & 2B), Laverton North, VIC4 83,952 Axxess Corporate Park, Mount Waverley, VIC 16,000	107 43 6% 75 75 9%
Total industrial 99,952	182 118
Total uncommitted 359,479	1,315 1,251

1. At 100%.

2. DEXUS interest in development cost. 3. City retail developments. 4. DEXUS Industrial Estate (stage 3 & 2B) Laverton North VIC excludes 50 Foundation Rd (completed during FY16) and 13 Felstead Dr (committed during FY16).

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 62

TRANSACTIONS– Group activity
DEXUS acquisitions1	Purchase	Interest	Cap	Settlement		Third party divestments	Sale price $m	Interest	Settlement
	price $m		rate		Date				date
193 Mary St, QLD	7.0	50%	7%		30 Oct 15	2 Costello Pl, NSW	14.8	100%	25 Sep 15
100 Mount St, NSW	20.5	50%	n/a		22 Apr 16	Acacia Gate, QLD	21.6	100%	14 Dec 15
36 Hickson Rd, NSW	17.1	100%	6%		Sep 16	Cannon Park, QLD	31.5	100%	23 Dec 15
Total	44.6					36 George Street, NSW	47.5	50%	13 Nov 15
						108 North Tce, SA	43.2	50%	Sep 16
DEXUS divestments	Sale price $m	Interest		Settlement date		Total	158.6
36 George St, NSW	47.5	50%			13 Nov 15
57-65 Templar Rd, NSW	50.0	100%			1 Jul 16
The Zenith, NSW	139.5	50%			29 Jul 16
108 North Tce, SA	43.2	50%			Sep 16
79-99 St Hilliers Rd, NSW	65.0	100%			Jan 17
Southgate Complex, VIC2	578.0	100%	Dec		16/Jul 17
Total	923.2
Third party acquisitions	Purchase	Interest	Cap	Settlement
	price $m		rate		date
193 Mary St, QLD	7.0	50%	7%		30 Oct 15
100 Mount St, NSW	20.5	50%	n/a		22 Apr 16
Total	27.5
1. Note that the acquisition of Waterfront Place was included in reported transaction metrics at DEXUS’s FY15 result.
The acquisition settled in October 2015.
2. Southgate Complex, VIC settlement date is subject to purchases receiving FIRB approval and will						occur in two transactions.
The initial 50% tranche is expected to settle prior to the end of calendar year				2016 with the remaining 50% tranche
expected to settle on or after 31 July 2017.
DEXUS Property Group – 2016 Annual Results Presentation and			Appendices		Slide 63

TRADING – Track record since 2012

	TRADING PROFITS DELIVERED - developed or repositioned and sold eight	TRADING PROFITS DELIVERED - developed or repositioned and sold eight	TRADING PROFITS DELIVERED - developed or repositioned and sold eight	TRADING PROFITS DELIVERED - developed or repositioned and sold eight	properties
Settlement	Property	Sector	Trading	Sale price	Trading profit1	Unlevered
date			strategy	($m)	($m)	project
						IRR
15 Jun 12	Lenore Dr, Erskine Park	Industrial	Develop	38.1	4.5	22.3%
12 Mar 14	57-101 Balham Rd, Archerfield	Industrial	Reposition	24.5	0.8	9.4%
12 Mar 14	163-183 Viking Dr, Wacol	Industrial	Reposition	38	3.2	14.6%
1 Jul 14	30 Distribution Dr, Laverton North	Industrial	Develop	9.5	1.0	16.3%
1 Dec 14	50 Carrington St, Sydney	Office	Reposition	88	12.2	13.2%
22 May 15	40 Market St, Melbourne	Office	Reposition	105.3	17.4	26.0%
21 Jul 15	5-13 Rosebery & 22-55 Rothschild Ave, Rosebery4	Industrial	Reposition	190	91.8	49.9%2
31 Jul 15	154 O’Riordan St, Mascot	Industrial	Reposition	32	15.9	36.7%2
	Total			$525.4m	$146.8m	23.5%3

1. Pre-tax. 2. Levered IRR and includes the weighted cost of debt at 5.0% for the duration of the project. 3. Calculated as an arithmetic average. 4. Trading profits recognised over FY15 ($17.1m) and FY16 ($74.7m).

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 64

– FUNDS MANAGEMENT Development pipeline

$3.0bn Third Party Development[1] Pipeline

$986m				$2.0bn
Total committed projects				Total uncommitted projects
$460m				Uncommitted projects focused primarily
Remaining spend on committed projects				on office & industrial properties
Remaining spend on committed projects in Third Party Funds
Committed projects		FY16		FY17		FY18/19
Office - 3 properties				$243m
Retail - 4 properties				$135m
Industrial - 4 properties				$82m
Remaining spend on committed Third Party projects				$460m

1. Third party funds’ or partners’ share of development spend and including DEXUS third party funds’ or partners’ share of Westfield redevelopments.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 65

– FUNDS MANAGEMENT FY17 focus and opportunities

FY17 OPPORTUNITIES

FY17 FOCUS

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Growing Continue to
relationships leverage
with third Retail
party capital expertise
sources across the
Group
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Deliver on third party clients’ investment objectives and drive investment performance Leverage transaction capabilities to enhance third party portfolio composition Seek new development and enhanced return opportunities to satisfy third party clients’ investment strategies

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DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 66

– MARKET OUTLOOK East Coast office net absorption is strongly positive

Net absorption by office market (qtly)

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000sqm Syd CBD Melb CBD Bris CBD Perth CBD
150
100
50
0
-50
-100
-150
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16
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Source: JLL, DEXUS Research.
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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 67
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– MARKET OUTLOOK Prime space is benefiting from flight to quality

• There is a pronounced net movement of tenants into prime space and out of secondary space

• Withdrawals are reducing the availability of secondary stock

• Vacancy rates are forecast to decline over the next 2-3 years

Net absorption by grade FY16: Four major CBDs

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000sqm Premium A-Grade B-Grade C-Grade D-Grade 10 Year Average Current FY16
250
200
150
100
50
0
-50
-100
Sydney CBD Melbourne CBD Brisbane CBD Perth CBD
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Source: JLL, DEXUS Research.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 68

– MARKET OUTLOOK Flight to quality is a regular phenomenon

Sydney CBD net absorption by grade and total completions

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‘000sqm Prime net abs Secondary net abs Total new completions
300
Prime net absorption over period
250 340,000sqm
345,000sqm 205,000sqm 274,000sqm
200
150
100
50
0
-50
-100
-150
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
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• Source: JLL Research, DEXUS Research. * Calendar year to date.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

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Slide 69
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– MARKET OUTLOOK Sydney CBD market has been stronger than predicted

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

• Actual demand has been approx. 260,000 vs predicted 180,000sqm

• Vacancy rate is tracking lower than predicted

• Business services; finance and IT have led demand

• Employment growth has outweighed the effect of workplace changes

• Flight to quality is absorbing prime space

Similarly, Melbourne has outperformed with current vacancy lower than predicted

Brisbane and Perth have underperformed as weak economic activity impacts demand

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Office demand for Sydney CBD - actual vs predicted
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‘000sqm Actual demand Predicted Aug-13
Actual vacancy RHS Predicted Aug-13
200 12%
150 9%
100 6%
50 3%
- 0%
-50 -3%
-100 -6%
FY10 FY11 FY12 FY13 FY14 FY15 FY16
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Vacancy rate by city – actual and predicted

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Predicted 2yrs ago Actual Jun-16
30%
24.6%
25%
20% 16.6%
15%
8.0%
7.1%
10%
5%
0%
Sydney Melbourne Brisbane Perth
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Source: DEXUS Research, JLL Research.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 70

– MARKET OUTLOOK Sydney’s limited new supply and substantial withdrawals

Sydney CBD office supply FY17-FY22

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'000sq120 m Sum of Withdrawal Sum of Refub un-com Sum of Refub pre-com Sum of New un-com Sum of New pre-com
100
80
60
40
20
0
-20
-40
-60
-80
FY17 FY18 FY19 FY20 FY21 FY22
Source: DEXUS Research.
DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 71
–
MARKET OUTLOOK Sydney office enquiry from traditional & growth sectors
Sydney CBD leasing enquiry by industry in FY16
‘000sqm
60
40
20
0
Finance & Business serv. Government Education Health & Construction IT/Comms
insurance pharm. & engineering
Traditional users Growth sectors
Int'l Towers Syd - Tower 3 high rise Int'l Towers Syd - Tower 1 333 George Street 80-82A Pitt Street One Wharf Lane Goldfields House Thakral House Coca-Cola Amatil Building Fairfax House Beneficial House 280 George Street 275 George Street Metro Rail Withdrawals Darling Harbour Live - Darling Square Int'l House Sydney 51-55 Pitt Street 331-337 Kent Street 143 York Street 85 Harrington Street 50 Bridge Street 2-10 & 20 Loftus St, 9-13 Young St Clarence St Commercial Tower 275 George Street C8 Dept of Edu & Training Building Dept of Planning Building 2 Wynard Place (10 Carrington) Shell House & 285 George Street 60 Martin Place 189-197 Kent Street 55 Pitt Street 33 Bligh Street AMP Quay Quarter Tower Darling Park Tower 4 CQ Tower (Lend Lease) 310-322 Pitt Street
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Source: Colliers Edge.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 72

– MARKET OUTLOOK Industrial market demand is strong in NSW & VIC

• Solid economic growth in NSW and VIC is flowing through to demand for industrial space

• Retailers and transport/logistics providers remain key occupiers

• Rising values are facilitating a solid supply pipeline, limiting growth in rents

• Growth is occurring in inner city and port markets (helped by withdrawals)

Outer West Sydney annual take-up rate (year to June)

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‘000sqm
450
400
350
10 yr avge – 260,000sqm
300
250
200
150
100
50
0
Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16
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Source: DEXUS Research, JLL Research.

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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 73
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– MARKET OUTLOOK Sydney CBD office

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Sydney CBD office market Sydney CBD office market At 30 June 2016
‘000sqm Total net lettable area 5.09 million sqm
250 12%
Prime vacancy average 8.3%
200
9%
150 DEXUS Sydney CBD exposure
6%
100 Net lettable area 607,200 sqm
50 3%
Number of properties 18
- 0%
% of portfolio by value 50%
-50
-3%
-100 Occupancy by area 97.3%
-6%
-150 Occupancy by income 96.9%
-200 -9%
FY07 FY09 FY11 FY13 FY15 FY17 FY19 Weighted average lease expiry 4.9 years
Net Absorption Net Supply Vacancy (RHS)
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Sydney CBD office market

• Recovery well underway with demand to remain firm FY17

• Vacancy is sitting at 7.1% (Jun-16), well below the 10 year average

• Positive demand and withdrawal of older stock to drive vacancy down

Source: JLL Research actual & DEXUS Research forecast.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 74

– MARKET OUTLOOK Melbourne CBD office

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Melbourne CBD office market Melbourne CBD office market At 30 June 2016
‘000sqm Total net lettable area 4.61 million sqm
200 12.5%
Prime vacancy average 6.7%
10.0%
150 DEXUS Melbourne CBD exposure
7.5% Net lettable area 274,300 sqm
100
5.0% Number of properties 7
50
% of portfolio by value 13%
2.5%
- 0.0% Occupancy by area 92.6%
Occupancy by income 93.6%
-50 -2.5%
FY07 FY09 FY11 FY13 FY15 FY17 FY19 Weighted average lease expiry 5.1 years
Net Absorption Net Supply Vacancy (RHS)
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Melbourne CBD office market

• Solid demand supported by improving state economy and strong population growth

• Tenant migration from the fringe to the CBD anticipated to continue

• Vacancy to tighten over the short-medium term due to muted supply

Source: JLL Research actual & DEXUS Research forecast.

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DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 75
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– MARKET OUTLOOK Brisbane CBD office

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Brisbane CBD office market Brisbane CBD office market At 30 June 2016
‘000sqm Total net lettable area 2.24 million sqm
150 24%
Prime vacancy average 14.6%
18%
100 DEXUS Brisbane CBD exposure
12% Net lettable area 251,000 sqm
50
6% Number of properties 6
- % of portfolio by value 17%
0%
-50 Occupancy by area 96.7%
-6%
Occupancy by income 96.6%
-100 -12%
FY07 FY09 FY11 FY13 FY15 FY17 FY19 Weighted average lease expiry 5.6 years
Net Absorption Net Supply Vacancy (RHS)
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• Demand has turned the corner with 4 quarters of positive demand

• Demand to benefit from centralisation of tenants and improving economy

• Supply high in short term, but to decline post FY17

• Should benefit longer-term from significant withdrawals for alternative use

Source: JLL Research actual & DEXUS Research forecast.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 76

– MARKET OUTLOOK Perth CBD office

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Perth CBD office market Perth CBD office market At 30 June 2016
‘000sqm Total net lettable area 1.77 million sqm
300 30%
Prime vacancy average 24.0%
250 25%
DEXUS Perth CBD exposure
200 20%
150 15% Net lettable area 131,100 sqm
100 10% Number of properties 4
50 5% % of portfolio by value 7%
- 0% Occupancy by area 98.9%
-50 -5%
Occupancy by income 97.9%
-100 -10%
FY07 FY09 FY11 FY13 FY15 FY17 FY19 Weighted average lease expiry 3.4 years
Net Absorption Net Supply Vacancy (RHS)
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Perth CBD office market

• Soft demand conditions as falling commodity prices and Chinese slowdown weighs on investment

• Elevated levels of new supply have driven vacancy rates to 20yr highs of 24.6%

• Limited future development will allow market to work through vacancy

• Perth's longer term prospects will be underpinned by rising exports and population growth

Source: JLL Research actual & DEXUS Research forecast.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 77

EXCHANGE RATES AND SECURITIES USED IN STATUTORY ACCOUNTS

30 June 2015 31 Dec 2015 30 Jun 2016	30 June 2015 31 Dec 2015 30 Jun 2016	30 June 2015 31 Dec 2015 30 Jun 2016	30 June 2015 31 Dec 2015 30 Jun 2016
Closing rates for Statement of Financial Position USD 0.7680 0.7286 0.7426 Average rates for Statement of Comprehensive Income USD 0.8367 0.7231 0.7287
Post consolidation equivalent amounts1	12 mths to 30 June 2015	6 mths to 31 Dec 2015	12 mths to 30 Jun 2016
Average weighted number of securities2 Closing number of securities	915,462,824 970,806,349	969,319,156 967,947,692	968,639,060 967,947,692

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

2. Used to calculate FFO per security.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices

Slide 78

GLOSSARY GLOSSARY

Distribution payout policy: Policy is to distribute in line with free cash flow. Funds From Operations (FFO): FFO is in line with Property Council of Australia definition and comprises net profit/loss after tax attributable to stapled security holders calculated in accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark to market impacts, fair value movements of interest bearing liabilities, amortisation of tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments, deferred tax expense/benefit, transaction costs, amortisation of intangible assets, rental guarantees and coupon income. Adjusted FFO (AFFO): AFFO is calculated in line with the Property Council of Australia definition and comprises PCA FFO and adjusted for: maintenance capex, incentives (including rent free incentives) given to tenants during the period and other items which have not been adjusted in determining FFO. Gearing: Gearing is represented by Interest Bearing Liabilities (excluding deferred borrowing costs and including the currency gains and losses of cross currency swaps) less cash divided by Total Tangible Assets (excluding derivatives and deferred tax assets) less cash. Covenant gearing is the same definition but not adjusted for cash. Gearing (look through): Represents Gearing defined above adjusted to include debt in equity accounted investments. Portfolio value: Unless otherwise stated, portfolio value is represented by investment properties, inventories and investments accounted for using the equity method, and excludes cash and other assets. Securities on issue: FFO per security is calculated based on the weighted average number of DEXUS securities for the relevant period. Weighted Average Lease Expiry (WALE): A measure in years of the average term to expiry of in-place rent. Includes vacancies.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 79

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.

DEXUS Property Group – 2016 Annual Results Presentation and Appendices Slide 80