DEXUS — Investor Presentation 2018

Apr 30, 2018

Dexus (ASX: DXS)

ASX release

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1 May 2018

2018 Macquarie Australia Conference

Dexus today releases the attached presentation to be presented at the 2018 Macquarie Australia Conference, which is being held at The Sheraton on the Park, 161 Elizabeth Street, Sydney.

For further information please contact:

Investor Relations Media Relations Rowena Causley Louise Murray +61 2 9017 1390 +61 2 9017 1446 +61 416 122 383 +61 403 260 754 rowena.causley@dexus.com louise.murray@dexus.com

About Dexus

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

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

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Macquarie Australia
Conference
1 May 2018
Dexus Funds Management Limited
1ABN 24 060 920 783AFSL 238163 as responsible entity for Dexus
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Agenda

• Dexus today

• Portfolio update – March 2018

• The changing face of Australian CBDs

• FY18 outlook

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Proposed Waterfront Precinct, Brisbane
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Dexus today Overview

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– Dexus distribution per security (cents) [1]
Proxy for Australian office – overweight Sydney
–
Outperforming and growing Funds Management business Distribution
– $4.2 billion group pipeline of development/value per security CAGR [1] 6.8% 4.5–5.0% growth
enhancement opportunities 50 (over the past 6 years ) (47.5 – 47.7)
– 45.47
Strong balance sheet with gearing of 26.5% 43.51
41.04
–
Market cap of circa $10 billion 40 37.56
36.00
–
Current distribution yield of circa 5%
30
20
FY13 FY14 FY15 FY16 FY17 FY18 1
Actual Guidance
Cents per security
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1. Adjusted for the one-for-six security consolidation completed in FY15. Compound annual growth
rate (CAGR) is calculated over six years, assuming mid-point of FY18 guidance is met.
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Dexus today
Overview
- Largest owner and manager of prime grade
PROPERTY office properties in Australia with scale to
deliver great outcomes for our customer base
PORTFOLIO across Sydney, Melbourne, Brisbane and
Perth CBDs
DEVELOPMENT
- Leverages Dexus’s core capabilities to deliver
Pipeline of value-enhancing
MANAGEMENTFUNDS investment plans and drive performance for third party clients + sectors, located primarily in cities opportunities across multiple
- Demonstrated ability to attract new clients that will benefit from the global
trend of urbanisation
Creating value
from earnings - Established capability that leverages leasing,
drivers development and transaction expertise
TRADING
- Delivered $164 million of trading profits, net
of tax, since FY11
UNDERPINNED BY A STRONG BALANCE SHEET
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DRAFT
Dexus has ownership or management of 21 Sydney CBD and CBD Fringe assets valued at $9.4 billion [1]
1. Based on Dexus and Dexus managed fund ownership share at 31 December 2017.
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Portfolio update – March 2018
Office: Sydney and Melbourne most active office markets
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March 2018 Dexus office demand barometer
Leasing [1] by area Average incentives [1]
92,822sqm 13.2%
HY18: 15.0%
Occupancy WALE [2]
96.8% 4.6 years Barometer vs actual office demand
HY18: 96.5% HY18: 4.6 years
1. Excluding development leasing. Total including development leasing is 107,654 square metres.
2. Weighted average lease expiry. Source: Dexus Research, JLL Research
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Portfolio update – March 2018
Office: addressing leasing risk in future years
156,394sqm - Focus on vacancy at Sydney Olympic
of expiries
up to and including FY20 Park and future expiries in Perth
in Sydney
= 17%
16% office income
14.8%
Sydney Total
14%
12.9%
12% 11.7%
10%
8.1%
8%
6%
4% 3.2%
2.1%
2%
0%
Available FY18 FY19 FY20 FY21 FY22
FY18 Key expiries FY19 Key expiries FY20 Key expiries FY21 Key expiries
100 Harris St (0.4%) 240 St Georges Tce (2.2%) 1 Margaret St (1.0%) Kings Square (1.1%)
240 St Georges Tce (0.4%) 11 Talavera Rd (0.6%) Australia Square (1.0%) Grosvenor Place (0.9%)
GPT, 1 Farrer Place (0.2%) 45 Clarence Street (0.6%) 201 Elizabeth St (0.8%) 45 Clarence St (0.8%)
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Portfolio update – March 2018 Industrial: maintained positive leasing momentum

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Average industrial land values
$/sqm650 Outer West SydneySouth Brisbane West MelbourneEast Perth
Leasing by area Average incentives 550450
46,645sqm HY1814.7%: 15.8% 350250150 $2.1 billion [1]
50
Occupancy WALE [1] Mar-08 Industrial portfolio Mar-10 Mar-12 Mar-14 Mar-16 Mar-18
Source: Dexus Research, JLL Research
97.9% 4.8 years Outer West Sydney gross take-up ‘000 sqm
HY18: 97.5% HY18: 5.0 years 450
400
350
300
250
200
150
100
50
1. Weighted average lease expiry. 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: JLL Research (gross take-up), Dexus Research. YTD
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Development and trading
Key project updates
Development Trading
Waterfront Precinct, Brisbane 100 Mount Street, North Sydney 105 Phillip Street, Parramatta Other Trading property updates
140 George Street, Parramatta
 Dexus entered into conditional
heads of agreement to sell this
trading opportunity, which when
finalised, will contribute to FY18
Significant Brisbane CBD developmentProgressed to Stage 2 of Market Led proposal trading profits
process
180 Flinders Street, Melbourne
FY18 Trading Profits
 Trading profits from both
105 Phillip Street and 140 George
Street, Parramatta will achieve
Dexus’s FY18 target of
41,700sqm Construction on program with strong tenant North Sydney office development Reached PC Dexus retains management of property for and final settlement $35-$40 million post tax
20,100sqm 39% leased Melbourne CBD office developmentand construction commenced enquiry five years post completion
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The changing face
of Australian CBDs
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“Australia’s four major cities all ranked in the
top 20 most liveable cities globally”
Australian cities = highly liveable EIU Liveability Rankings
Where people want to be
Population growth
% change p.a.(2016)
OECD
average 0.7%
JPN -0.1
EU 0.3
“Melbourne ranked the world’s most liveable
CHN 0.5 city for seven years in a row”
EIU Liveability Rankings
USA 0.7
GBR 0.7
IND 1.1
CAN 1.2
AUS 1.5
Source: World Bank Data.
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75% of Australia’s population growth is forecast to take place
in just four cities - Sydney, Melbourne, Brisbane & Perth [1]
1. Source: Infrastructure Australia
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Our major cities are expected to grow significantly in size Population expected to grow to circa 30 million by 2056

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Our cities today: Our cities by 2056:
Highly urbanised with over 90% of Australians living in urban areas [1 ] With our capital cities projected to grow to circa 30 million people, our
and more than two-thirds living in a capital city capital cities will need to accommodate an additional +13 million people
Australian population by region (2016) Australian capital cities population projections (millions)
Non-capital Sydney
city 21% Sydney and
33% Melbourne
growing to
cities of 8
19% Melbourne million!
9%
Canberra, Darwin, 8% 10%
Hobart & Adelaide
Perth Brisbane
Source: ABS Source: ABS
1. Cities or towns of more than 1,000 people.
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To accommodate growth our cities will need to densify
Reinforcing the continued importance of our CBDs
Drivers of densification
Consumer Preferences Productivity Budget Constraints Environment
A growing preference for Productivity gains via Cheaper to provide Use less energy, produce
inner city living particularly enhanced transport necessary services and less greenhouse gas and
millennials connectivity infrastructure protect biodiversity
“Under 30 min work
“4.5% increase in inner city “Infill development 2-4x “Doubling density = 30% less
residents [1] ” commutes = +1 extra week ” cheaper than greenfill [3] ” energy use per capita [4]
of productivity p.a. [2]
Source: 1. ABS based on statistical level 3 areas of “Sydney Inner City”, “Melbourne City”, “Brisbane Inner” and “Perth City” (year to June 2017), 2. University of Cambridge, 3. SGS Economics and Planning,
4. ULI.
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Policy is currently supportive of densification in our cities Long-term plans highlight importance of on-going investment

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Infrastructure Outlook Longer-term plans for growth
Budget Commitments - total infrastructure spend next four years [1] Focused on accessibility & creating “20-30 minute” cities
Greater Sydney Region Plan
“a bold vision for three, integrated and
connected cities”
NSW Future Transport
Strategy 2056
QLD “is an overarching strategy supported by
$42.8B a suite of plans to achieve a 40 year vision for our transport system”
Plan Melbourne
NSW “will guide the growth of our city for
$80.1B the next 35 years”
30 Year Infrastructure Plan
for Victoria
VIC “identifies a pipeline of initiatives to be
$38.4B delivered over the next three decades”
Source: 1. NSW, Victoria, QLD 2017-2018 State Budgets.
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Infrastructure investment
will transform our CBDs
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Dexus has a significant presence in CBDs Major holder of land in Sydney

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Dexus Sydney CBD footprint [1]
Land controlled by
Dexus
8 hectares
Equivalent to
circa 10%
of developable land in
Central Sydney!
Source: Dexus Research, City of Sydney.
1. Sites owned or managed by Dexus. Not adjusted for strata occupied sites
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CBDs are high demand locations with land constraints
Sydney CBD is highly constrained
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Sydney CBD is a constrained land area Uses other than office have risen significantly
Relative area (Sydney CBD vs. Manhattan Island) No. of Residential strata unit
Manhattan Island, NYC
59.1 square kilometres
Central Sydney
4.25 square kilometres
Source: City of Sydney Source: City of Sydney
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Dexus is acting to unlock value for Security holders Office as highest and best use no longer a baseline

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180 Flinders Street, Melbourne 201 Elizabeth Street, Sydney Waterfront Precinct, Brisbane
10-storey office tower with new retail and Mixed-use development including city retail, Mixed-use precinct including office, residential,
end-of-trip amenity residential and hotel hotel and public open space
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Outlook

FY18 guidance on track

• Office portfolio like-for-like income growth of 4-5%

• Industrial portfolio like-for-like income growth of 3-4%

• On-track to deliver remaining FY18 trading profits

• Expect to deliver distribution[1] per security growth of 4.5-5.0%

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

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Important information
- This presentation is issued by Dexus Funds Management Limited (DXFM) in its capacity as responsible entity of Dexus (ASX:DXS). It is not an offer of securities for subscription or sale
and is not financial product advice.
- Information in this presentation including, without limitation, any forward looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted
by law, DXFM, Dexus and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness
of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied
by any forward looking statements for a range of reasons outside the control of the relevant parties.
- The information contained in this presentation should not be considered to be comprehensive or to comprise all the information which a
Dexus security holder or potential investor may require in order to determine whether to deal in Dexus stapled securities. This presentation does not take into account the financial
situation, investment objectives and particular needs of any particular person.
- The repayment and performance of an investment in Dexus is not guaranteed by DXFM, any of its related bodies corporate or any other person or organisation.
- This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.
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