DEXUS - Investor Presentation 2018

Dexus (ASX: DXS)

ASX release

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5 March 2018

Daiwa Investment Conference presentation

Dexus today releases the attached presentation to be used as a basis of discussion at the Daiwa Investment Conference, which is being held at the Prince Park Tower in Tokyo, Japan.

For further information please contact:

Investor Relations Media Relations Melanie Bourke Louise Murray +61 2 9017 1168 +61 2 9017 1446 +61 405 130 824 +61 403 260 754 [email protected] [email protected]

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 $4.1 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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Investor 投資家向け説明会 Presentation 2018月3月 March 2018

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

Overview
Property portfolio
Development
Funds management
Trading
Capital management
Market outlook
Outlook and summary
Appendices

Investor presentation March 2018

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Investor presentation March 2018

Overview

Total group portfolio composition

Total group FUM $26.5 billion

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Dexus portfolio Funds Management
Retail $5.0bn
Industrial, Office $6.8bn
Office, $10.9bn, $2.1bn, 16%
84% $13.1bn $13.4bn
Healthcare,
$0.05bn,
<1% Healthcare
$0.1bn
Industrial $1.5bn
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3 Investor presentation March 2018

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Overview

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Dexus ��
Retail $5.0 10�
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��, $2.1 Office $6.8 10�
Office, $10.910� 10��, 16% ��
��, 84% 131 �� 134 ��
Healthcare, 0.5�
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<1% Healthcare $0.1
10��
Industrial $1.5 10
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3 Investor presentation March 2018
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Overview

Overview Dexus today

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-
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
FUNDS investment plans and drive performance for
third party clients + opportunities across multiple
MANAGEMENT sectors, located primarily in cities
-
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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Overview
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Overview

Overview Commitment to strategy

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Investor presentation March 2018

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Overview

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Investor presentation March 2018

Overview

Dexus HY18 performance

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Underlying business
Driver FY18 target HY18 progress
circa 4-5% office l-f-l
PROPERTY income growth Property AFFO [1] of $288.5 million
-0.4% office l-f-l income growth will grow to 4-5% for FY18
PORTFOLIO circa 3-4% industrial
+1.0% industrial l-f-l income growth will grow to 3-4% for FY18
l-f-l income growth
FUNDS Management
Operations FFO of $25.1 million
MANAGEMENT FFO of circa $50m
Creating value
from earnings
drivers
Approximately
Trading profits of $14.3 million [2]
TRADING $35-40m trading
primarily from the sale of 105 Phillip Street Parramatta
profits [2]
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AFFO contribution is calculated before finance costs, group corporate costs and tax. Property AFFO is equal to Property FFO of $364.0 million less total portfolio capex of $75.5 million.
Net of tax.
6 Investor presentation March 2018

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Overview

�� Dexus 2018��

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�� 2018 �� 2018 ��
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�� 4-5% � 2018 �� AFFO [1] 2 � -0.4%8850 �� 4-5% ��
�� 2018 �� +1.0% �� 3-4% ��
�� 3-4% �
��
�� FFO 2510 ��
FFO � 500 ��
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�� 1430 �� [2]
�� 3500 � -4000 �
�� 105 Phillip Street Parramatta ��
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AFFO��AFFO��3�6,400��FFO��75.5�� 2.��.

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6 Investor presentation March 2018

Property portfolio

Property portfolio Office: 84% of balance sheet assets

$10.9bn 48 Prime office portfolio Office properties

96.5% 4.6 years Occupancy (by income) Weighted average lease expiry (WALE)

15.8%

One-year total return[1]

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Portfolio unlevered total return to 31 December 2017.

7 Investor presentation March 2018

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Property portfolio

�� : ��84%

109 ��

109 �� 48 ��

4.6 � �� (WALE)

96.5% �� ( �� )

15.8% �� [1]

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2017.2017�12�31��

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7 Investor presentation March 2018

Property portfolio

Property portfolio Office: portfolio diversification

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Office by asset type
Heritage <1% [Carpark 1%]
Development 2%
Office Park 2% Premium
Grade 35%
B Grade 3%
$10.9bn
Prime Grade
92%
A Grade 57%
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8 Investor presentation March 2018

Office by location

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WA 6%
Sydney
ACT 1% CBD/Fringe
60%
QLD 15%
NSW 70%
$10.9bn
VIC 8%
Sydney Metro
10%
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Property portfolio

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Heritage <1% [��] [1%]
Development 1%
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2% ��
35%
B��
3%
109 ��
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92%
A��
57%
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��
8%
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10%
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8 Investor presentation March 2018

Property portfolio

Property portfolio Office: consistent lease expiry profile

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- Standard annual fixed increases of 3.5-4%
192,105sqm (Sydney 4%+)
WALE [1]
-
of expiries 8-15% of leases (by income) expire each year
4.6 years up to and including FY20 - Average lease terms of 5-12 years, with
in Sydney
FY17: 4.8 years smaller tenants and suites on average terms
= 20%
of 3-5 years
16% office income
Sydney Total
14% 13.2%
12.1% 12.5%
12%
10.6%
10%
8%
6%
4% 3.5% 3.4%
2%
0%
Vacant FY18 FY19 FY20 FY21 FY22
FY18 Key expiries FY19 Key expiries FY20 Key expiries FY21 Key expiries
100 Harris St (0.5%) 240 St Georges Tce (2.5%) 1 Margaret St (1.0%) Kings Square (1.1%)
240 St Georges Tce (0.4%) 150 George St [2] (0.8%) Australia Square (0.9%) 45 Clarence St (0.9%)
12 Creek Street (0.3%) 11 Talavera Rd (0.7%) 201 Elizabeth St (0.8%) 175 Pitt St (0.7%)
1. Weighted average lease expiry.
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Post 31 December 2017, a three year option has been exercised by CBA at 150 George Street and 101 George Street, Parramatta, not reflected in the HY18 lease expiry profile or metrics.

9 Investor presentation March 2018

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Property portfolio

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��3.5-4% (�� 4%+)

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�� (WALE) [�] 2020 192,105sqm �� - ��8-15% (��)��
4.6 � ��
�� - �� 5-12��
2017 �� : 4.8 � 20� ��3
16% Sydney Total �5�
14% 13.2%
12.1% 12.5%
12%
10.6%
10%
8%
6%
4% 3.5% 3.4%
2%
0%
��Vacant FY18 FY19 FY20 FY21 FY22
FY18 �� FY19 �� FY20 �� FY21 ��
100 Harris St (0.5%) 240 St Georges Tce (2.5%) 1 Margaret St (1.0%) Kings Square (1.1%)
240 St Georges Tce (0.4%) 150 George St [2] (0.8%) Australia Square (0.9%) 45 Clarence St (0.9%)
12 Creek Street (0.3%) 11 Talavera Rd (0.7%) 201 Elizabeth St (0.8%) 175 Pitt St (0.7%)
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��
150 George Street ��101 George Street, Parramatta�� 2017�12�31��3��CBA��2018��

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9 Investor presentation March 2018

Property portfolio

Property portfolio Industrial: 16% of balance sheet assets

$2.1bn

54

Prime industrial portfolio Industrial properties

5.0 years

97.5% Occupancy (by income)

Weighted average lease expiry (WALE)

15.4%

One-year total return[1]

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Portfolio unlevered total return to 31 December 2017.

10 Investor presentation March 2018

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Property portfolio

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21 ��

21 �� 54 ��

5.0 �

97.5%

�� ( �� ) �� (WALE)

15.4%

�� [1]

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2017.2017�12�31��

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10 Investor presentation March 2018

Property portfolio

Property portfolio Industrial: portfolio diversification

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Industrial by asset type
Land 6%
Data centre Industrial
4% estate 40%
$2.1bn
Distribution
centre 21%
Business park
29%
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11 Investor presentation March 2018

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Industrial by location
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SA 2%
QLD 5%
NSW 58%
$2.1bn
VIC 35%
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Property portfolio

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21 ��
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2%
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58%
21 ��
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35%
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11 Investor presentation March 2018

Property portfolio

Property portfolio Industrial: lease expiry profile

Standard annual fixed increases of 3-3.5%
8-15% of leases (by income) expire each year
Negative rent reversion common in industrial as fixed increases exceed market rent growth

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30%
25%
20%
14.8%
15% 13.9% 13.2%
12.0%
9.5% 9.8% 9.4%
10% 7.9%
5% 2.5% 2.1% 3.2% 3.0%
0%
Available FY18 FY19 FY20 FY21 FY22
Income Area
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12 Investor presentation March 2018

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Property portfolio

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��3-3.5%
��8-15% (��) ��
��

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30%
25%
20%
14.8%
15% 13.9% 13.2%
12.0%
9.5% 9.8% 9.4%
10% 7.9%
5% 2.5% 2.1% 3.2% 3.0%
0%
�� FY18 FY19 2020�� FY21 FY22
Income Area
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12 Investor presentation March 2018

Property portfolio

Property portfolio HY18 valuation uplift

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Total portfolio Office
Valuation uplift
Valuation uplift [1] 100%
$662.9m
$730.2m
FY17: $625.8m 70%
50%
Cap rate [2]
Cap rate [2]
30%
5.50%
5.66% �� 0%
FY17: 5.78% HY18 composition
FY17: 5.95% Cap rate compression
Rental growth
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Industrial
Valuation uplift
$62.3m 100%
55%
FY17: $78.9m
50%
Cap rate [2]
6.65% 45%
0%
FY17: 6.88% HY18 composition
Cap rate compression
Rental growth
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Includes healthcare property revaluation gain of $5.0 million.
Weighted average capitalisation rate.

13 Investor presentation March 2018

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Property portfolio

�� 2018��

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��
��
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�� [1] 100% 100%
6 � 6290 �� 6230 ��
7 � 3020 �� 55%
2017 �� : 6 � 2580 �� 70% FY17: $78.9m
50% 50%
�� [2] �� [2]
�� [2] 45%
30%
5.50% 6.65%
5.66% �� 2017 �� : 5.78% 0% HY18 composition 2017 �� : 6.88% 0% HY18 composition
2017 �� : 5.95% Cap rate compression Cap rate compression
Rental growth Rental growth
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��500��

2. ��

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13 Investor presentation March 2018

Property portfolio

Property portfolio HY18 valuation uplift

Valuation performers[1]

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383-395 Kent Street, Sydney Australia Square, Sydney 45 Clarence Street, Sydney
DXS 100% interest up $77.5m or DXS 50% interest up $73.9m or DXS 100% interest up $57.3m
29.3% to $342.0m 17.3% to $500.0m or 15.3% to $431.0m
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12 month outlook

Future valuation uplifts to be driven by further strengthening in underlying assumptions including reduced downtime and incentives combined with increased market rents

At Dexus ownership.

14 Investor presentation March 2018

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Property portfolio

�� 2018��

�� [1]

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383-395 Kent Street, Sydney Australia Square, Sydney 45 Clarence Street, Sydney
DXS 100%�� 7750 �� DXS�� 50% 7390 �� / DXS 100%�� 5730 ��
/ 29.3%��3�4200�� 17.3%��5�� / 15.3%��4�3100��
1. Dexus��
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12 ��

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14 Investor presentation March 2018

Development

Development: $4.2 billion group pipeline

Concentrated in major cities and supported by broad capability

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Exposure across Australian CBDs
Industrial Retail Healthcare
Office City retail Mixed use
Waterfront Place, Brisbane 175 Pitt Street, Sydney 201 Elizabeth Street, Quarrywest, Greystanes Willows Shopping Calvary Adelaide
Dexus and Dexus Wholesale Dexus and Dexus Office Sydney Dexus and Dexus Centre Hospital
Property Fund Partner Dexus Industrial Partner DWPF HWPF
$1,899m $207m $816m $362m $579m $325m
($833m committed) ($85m committed) (Uncommitted) ($175m committed) ($151m committed) ($325m committed)
including: including: including: including: including: Calvary Adelaide
180 Flinders Street, Melbourne 175 Pitt Street, Sydney 201 Elizabeth Street, Sydney Quarrywest, Greystanes Willows Shopping Centre Hospital
12 Creek Street, Brisbane 1 Farrer Place, Sydney Waterfront Place Precinct Dexus Industrial Estate, Smithfield Shopping
11 Talavera Road, Macquarie Park 44 Market Street, Sydney Laverton North Centre
Waterfront Place Precinct Westfield Plenty Valley
1. Includes trading and value-add opportunities. 70% of the pipeline Circa 7.6% of balance sheet FUM is allocated to
development [1] at 31 December 2017
15 Investor presentation March 2018
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Development

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��
��
��
Waterfront Place, Brisbane 175 Pitt Street, Sydney 201 Elizabeth Street, Quarrywest, Greystanes Willows Shopping Calvary Adelaide
Dexus �� Dexus Wholesale Dexus �� Dexus �� Sydney Dexus �� Dexus �� Centre Hospital
Property Fund �� Dexus �� DWPF HWPF
18 � 9900 �� 2 � 700 �� 8 � 1600 �� 3 � 6200 �� 5 � 7900 �� 3 � 2500 ��
(8 � 3300 �� ) (8500 �� ) ( �� ) (1 � 7500 �� ) (1 � 5100 �� ) (3 � 2500 �� )
�� : �� : �� : �� : �� : Calvary Adelaide
11 Talavera Road, Macquarie Park180 Flinders Street, MelbourneWaterfront Place Precinct12 Creek Street, Brisbane 44 Market Street, Sydney175 Pitt Street, Sydney1 Farrer Place, Sydney 201 Elizabeth Street, SydneyWaterfront Place Precinct Quarrywest, GreystanesDexus Industrial Estate, Laverton North Willows Shopping CentreWestfield Plenty ValleySmithfield Shopping Centre Hospital
1. �� 70% �� 2017 � 12 � 31 ��
�� 7.6% �� [1] ��
15 Investor presentation March 2018
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Development

Development: activating office projects

Leveraging leasing and development expertise

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Development of
180 Flinders Street, Melbourne
100% Dexus
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Project cost[1] : $146 million Project overview: A 20,100sqm value-add development opportunity to create new office above existing car park and reposition property Target completion: mid 2020 Target yield on cost: 6-7%

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Development of
Annex, 12 Creek Street, Brisbane
50% Dexus / 50% DWPF
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Project cost: $30 million Project overview: A 6,700sqm development to utilise land space and provide opportunities for smaller space users Target completion: August 2019 Target yield on cost: 7-8%

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Refurbishment of
240 St Georges Terrace, Perth
40% of
Woodside
space
committed
100% Dexus
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Refurbishment budget: $165 million Project overview: Reposition asset to provide greater ground floor amenity and refurbish office tower floors across 47,800sqm Target completion: late 2021 Target yield on cost: circa 7%

Includes associated refurbishment works.

16 Investor presentation March 2018

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Development

��: ��

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��
180 Flinders Street, Melbourne
100% Dexus
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�� [1] : 1�460�� : 20,100sqm �� : 2020�� : 6-7%

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��
Annex, 12 Creek Street, Brisbane
50% Dexus / 50% DWPF
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�� : 300��
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�� : �� 6,700sqm �� : 2019�8� �� : 7-8%

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��
240 St Georges Terrace, Perth
Woodside
�� 40%
��
100% Dexus
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�� : 1�650�� : �� 47,800sqm�� : 2021�� : � 7%

��

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16 Investor presentation March 2018

Development

Development: strength at industrial estates Developing to capture customer demand

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Development of
Quarrywest, Greystanes
Precinct C&D
50% Dexus / 50% Dexus Industrial Partner
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Project cost[1] : $109 million

Project overview: 46,300sqm completed (5 properties), 41,500sqm (5 properties) under construction and 100% pre-leased. A further 33,400sqm remains to be built out to complete the estate.

Target completion: September 2018

Target yield on cost: 7-8%

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Development of
Laverton North Industrial Estate, Melbourne
100% Dexus
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Project cost: $224 million Project overview: 73,600sqm (4 properties) completed, 42,600sqm (2 properties) under construction and 100% pre-leased.

66,700sqm remains uncommitted and to be built out to complete the estate. Target completion: June 2020 Target yield on cost: 7-8%

Dexus interest only.

17 Investor presentation March 2018

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Development

��:��

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��
Quarrywest, Greystanes
Precinct C&D
50% Dexus / 50% Dexus ��
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�� [1] : 1�90��
�� : 46,300sqm �� (5 ��)� 41,500sqm
(5��) �� 100% ��
��33,400sqm��
�� : 2018�9�
�� : 7-8%

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��
Laverton North Industrial Estate, Melbourne
100% Dexus
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�� : 2�240��
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�� : 73,600sqm (4 ��) ��42,600sqm (2 ��) ��100%��

��66,700sqm �� : 2020�6�
�� : 7-8%
Dexus ��

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17 Investor presentation March 2018

Development

Development: Value creation 100 Mount Street, North Sydney

90 and 100 Mount Street development site acquired for initial acquisition price of $41 million on 11 February 2016
Total development cost of $462 million[1] with a target yield on cost of 8%
25,400 square metres committed (60% of space)
Active enquiry on remaining space
Delivering smart building solutions designed to future proof the asset, including secured connectivity and advanced security and occupancy data
Achieved 5 star Green Star Certification and targeting a WELL Gold Shell and Core rating

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100m from Victoria Cross Metro stop opening 2024

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Including initial acquisition price.

18 Investor presentation March 2018

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Development

��: �� 100 Mount Street, North Sydney

2016�2�11� ��4100��90 �100 Mount Street��
��8��4�6200��[1]
25,400 �� (��60%)
��
��
Green Star��5��WELL Gold Shell�� Core rating��

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Victoria Cross Metro stop �� 100m
2024 ��
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��.

18 Investor presentation March 2018

Funds Management

Driving performance and delivering growth for clients

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Funds Management platform Delivering on clients’ investment objectives
$0.2bn All funds delivered strong performance
<$0.1bn Dexus Office Partnership delivered strong returns
– 1 year unlevered total property return of 16.5%
$2.3bn $8.6bn – Annualised unlevered total property return since inception of 15.3%
DWPF outperformed its benchmark
$13.4bn 16%
on behalf of 14% 13.75% 12.84% 14.01% 12.22% 11.93% DWPF return Benchmark return
73 clients 12% 10.93% 11.26% 10.25%
10%
$2.0bn 8% 7.44% 6.90%
$0.3bn 6%
Dexus Wholesale Property Fund 4%
2%
Australian Industrial Partner
0%
Australian Mandate 1 year 3 years 5 years 7 years 10 years
Dexus Office Partner
Healthcare Wholesale Property Fund Third party – Active projects in retail and healthcare sectors
Dexus Industrial Partner development pipeline $2.1bn – $1.3 billion uncommitted
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19 Investor presentation March 2018

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Funds Management

��

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

��
��
$0.2bn
<$0.1bn Dexus ��
– 1��16.5%
$2.3bn $8.6bn – ��15.3%
134 �� 16% DWPF ��
73 �� 14% 13.75% 12.84% 14.01% 12.22% 11.93% DWPF return Benchmark return
12% 10.93% 11.26% 10.25%
10%
$2.0bn 8% 7.44% 6.90%
$0.3bn 6%
Dexus Wholesale Property Fund 4%
2%
Australian Industrial Partner
0%
Australian Mandate 1 year 3 years 5 years 7 years 10 years
Dexus Office Partner
Healthcare Wholesale Property FundDexus Industrial Partner �� 21 �� –– $13��
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19 Investor presentation March 2018

Funds Management

Funds Management New fund completes first equity raise

Completed first equity raise and initial capitalisation of Healthcare Wholesale Property Fund (HWPF) securing three new clients onto the funds platform
Seeded with approximately $370 million[1] of properties and has an additional pipeline of high quality opportunities with an estimated on completion value of $445 million
The new Calvary Adelaide Hospital (under construction) and the GP Plus Health Care Centre are the seed assets for the fund
A further equity raise to be completed in 2018 for further pipeline opportunities

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Construction of Calvary Adelaide Hospital – north west view of the site
Artist’s impression of Calvary Adelaide Hospital
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On completion value.

20 Investor presentation March 2018

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Funds Management
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��

��Healthcare Wholesale Property Fund (HWPF) ��
�3�7000��[1] ��4�4500��
��Calvary Adelaide Hospital (��) ��GP Plus Health Care Centre ��
��2018��

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Construction of Calvary Adelaide Hospital – north west view of the site
Artist’s impression of Calvary Adelaide Hospital
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On completion value.

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20 Investor presentation March 2018

Trading

Trading business Positioned to deliver FY18 target

On track to deliver $35-40 million (net of tax) for FY18
Secured $14.3 million (net of tax) of trading profits in HY18
32 Flinders Street, Melbourne is currently being marketed for sale
12 Frederick Street, St Leonards is well positioned for a fund through sale
Trading pipeline of $100-$120 million of trading profits (net of tax) over the next four years

Trading projects	Current use	Trading strategy	FY18	FY19	FY20	FY21	FY22+
32 Flinders Street Carpark Rezoning 140 George Street1 Office Development Lakes Business Park South Industrial Development 12 Frederick Street – Stage 1 Industrial Healthcare development Gladesville2 Industrial Rezoning 12 Frederick Street – Stage 2 Industrial Healthcare development

Transferred to trading book in August 2017.
Transferred to trading book in July 2017.

21 Investor presentation March 2018

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Trading

��2018��

2018��3500-4000�� (��) ��
2018��1430�� (��) ��
32 Flinders Street, Melbourne��
12 Frederick Street, St Leonards��
��4��1�-$1�2000�� (��)��

��	�� �	��	2018��	2019��	2020��	2021��	2022��+
32 Flinders Street �� �� 140 George Street1 �� �� Lakes Business Park South �� �� 12 Frederick Street –��1 �� �� Gladesville2 �� �� 12 Frederick Street –��2 �� ��

Transferred to trading book in August 2017.
Transferred to trading book in July 2017.

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21 Investor presentation March 2018

Trading

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Proposed
development of a
specialist
health hub
in Sydney’s
St Leonards
Artists Impression, subject to planning consent and pre-lease
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Trading business

Future opportunity: 12 Frederick Street, St Leonards – Stage 1

Stage 1 represents approximately 15,000 square metres of NLA (circa 25% of total site)
Dexus-owned and controlled site located adjacent to the Royal North Shore Hospital and North Shore Private Hospital, a major NSW healthcare precinct
Planning Proposal (rezoning) endorsed by Council and Department of Planning, exhibited and awaiting gazettal

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State Significant Development Applications lodged and under determination
Provides opportunities for a range of specialist operators, resulting in over 20,000sqm of enquiry
Indicative value on completion of $200-$250 million
First right of refusal for Healthcare Wholesale Property Fund to acquire

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22 Investor presentation March 2018

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

Trading
��
��
��
��
Artists Impression, subject to planning consent and pre-lease
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��

��: 12 Frederick Street, St Leonards – �� 1

��1��15,000��25%)
Royal North Shore ��Dexus��NSW��
��Department of Planning�� (�� ) ��
��

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��20,000sqm��
��2�-$2�5000��
Healthcare Wholesale Property Fund��

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22 Investor presentation March 2018

Capital management

Capital management Maintained balance sheet strength

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Key metrics 31 Dec 2017 30 June 2017 Diversified sources of debt
Gearing (look-through) [1] 26.5% 26.7% [2]
Cost of debt [3] 4.0% 4.1% 144A 7%
Debt Capital Markets Bank Debt
Duration of debt 7.0 years 5.6 years [5] 63% 37%
Hedged debt (incl caps) [4] 67% 65%
S&P/Moody’s credit rating A-/A3 A-/A3 Bank
Facilities 37%
Historical gearing ratio Target Gearing Range Gearing Gearing Ceiling USPP 36%
40%
30%
20%
10%
Commercial
0% Paper 2%
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 HY18 MTN 18%
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Adjusted for cash and debt in equity accounted investments.
Pro forma gearing is adjusted for the acquisitions of MLC Centre, Sydney, 100 Harris Street, Pyrmont, 90 Mills Road, Braeside and the sales of 30-68 Taras Avenue, Altona North and 46 Colin Street, West Perth, including the impact of transactions costs. Actual gearing (look-through) is 22.1% at 30 June 2017.
Weighted average across the period, inclusive of fees and margins on a drawn basis.
Average for the period. Hedged debt (excluding caps) was 56% for the 6 months to 31 December 2017 and 59% for the 12 months to 30 June 2017.
Includes $60 million of Medium Term Notes issued in July 2017 and three bank facilities for $325 million that commenced in July 2017.
23 Investor presentation March 2018

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Capital management

��

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

��
2017 � 2017 �
��
12 � 31 � 6 � 30 �
�� (��) [1] 26.5% 26.7% [2] 144A 7%
�� [3] 4.0% 4.1% �� 63% �� 37%
�� 7.0 years 5.6 years [5]
�� (��) [4] 67% 65%
��37%
S&P/Moody’s �� A-/A3 A-/A3
�� Target Gearing Range Gearing Gearing Ceiling USPP 36%
40%
30%
20%
10%
�� 2%
0%
��07 ��08 ��09 ��10 ��11 ��12 ��13 ��14 ��15 ��16 ��17 ��18 MTN 18%
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��
MLC Centre, Sydney, 100 Harris Street, Pyrmont, 90 Mills Road, Braeside and the sales of 30-68 Taras Avenue, Altona North and 46 Colin Street, West Perth�� )�2017�6�30��22.1%�
��
��2017�12�31��6��56% �2017�6�30��12��59%
Includes $60 million of Medium Term Notes issued in July 2017 and three bank facilities for $325 million that commenced in July 2017.

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23 Investor presentation March 2018

Market outlook

Lead indicators for office demand are positive

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Total employment is on the rise
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Business conditions & confidence is up
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Office demand positive across the CBDs Total employment is on the rise Business conditions & confidence is up
Quarterly net absorption Syd CBD Melb CBD White Collar Total Employment Business conditions Business confidence
(‘000sqm) Bris CBD Perth CBD %pa Index
150 8.0% 20
15
6.0%
100
10
4.0%
50 5
2.0% 0
0
0.0% -5
-50 -10
-2.0%
-15
-100 -4.0%
-20
-150 -6.0% -25
Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17
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Source: JLL, NAB, Dexus Research, ABS.

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24 Investor presentation March 2018
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Market outlook

��

CBD ��

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��
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�� & ��

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

��
(‘000sqm) �� %pa Index
150 8.0% 20
15
100 6.0%
10
4.0%
50 5
2.0% 0
0
0.0% -5
-50 -10
-2.0%
-15
-100
-4.0%
-20
-150 -6.0% -25
2007 12 2009 12 2011 12 2013 12 2015 12 2017 12 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Dec-17
� � � � � �
��: JLL, NAB, Dexus Research, ABS.
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24 Investor presentation March 2018

Market outlook

Office rents expected to rise as vacancy declines further

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Forecast vacancy rates Long term average (20 years) - Vacancy in Sydney and Melbourne is below
30% average driving strong growth in office rents
25% - Brisbane and Perth fundamentals
improving with demand positive over the
Vacancy rate
20% well below past year
average
15%
10%
5%
0%
Sydney CBD Melbourne CBD Brisbane CBD Perth CBD
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22
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Vacancy in Sydney and Melbourne is below average driving strong growth in office rents

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Source: Dexus Research, JLL.
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25 Investor presentation March 2018
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Market outlook
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��

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

�� 20��
30%
25%
20% ��
��
15%
10%
5%
0%
Sydney CBD Melbourne CBD Brisbane CBD Perth CBD
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY19 FY20 FY21 FY22
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��
��

��: Dexus Research, JLL.

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25 Investor presentation March 2018

Market outlook

Sydney CBD office supply Putting it into perspective

The rate of supply during FY18-FY22 to be less than half of supply in FY16-FY17 (including Barangaroo)
Demand expected to largely absorb the supply keeping vacancy at or below average

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Supply cycle analysis Total completions Vacancy
24%
20%
16% 8.5% long-term
average
12% vacancy
8% 5.7%
4%
3.4%
0% Forecast total
FY89 FY92 FY95 FY98 FY01 FY04 FY07 FY10 FY13 FY16 FY19 FY22 completions
per annum
Total completions per annum during over the next
3.9% p.a. 1.7% p.a.
FY16-FY17 (including Barangaroo) five years
Source: Dexus Research, JLL.
26 Investor presentation March 2018
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Market outlook
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��CBD ��

2018��-2022�� 2016��-2017�� (��)

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

- ��
�� Total completions�� Vacancy��
24%
20%
16% 8.5% ��
��
12%
8% 5.7%
4%
3.4%
0%
1989�� 1992�� 1995�� 1998�� 2001�� 2004�� 2007�� 2010�� 2013�� 2016�� 2019�� 2022�� 5��
2016��-2017��
2016��-2017�� 3.9% p.a. 1.7% p.a. �
��
��: Dexus Research, JLL.
26 Investor presentation March 2018
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Market outlook

Sydney office: solid fundamentals to support growth

Sydney CBD waterfall chart – FY17 to FY22

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

down from 7.1% FY17 vacancy levels. Majority of New supply 31% below average offset new supply Above average withdrawals to Demand positive but expected to run below the historical low of Vacancy to hit 3.4% in FY19 and positive net A lull in supply absorption to new supply to hit 197,000sqm of FY22, but
stock withdrawn in 145,800sqm of last year with the CBD completing in new supply FY20 shortage of spaceaverage due to long term before rising to 5.5% in FY20 drive vacancy lower long-run average remain below expected to vacancy
‘000 sqm
600 + 4.4% - 3.8%
500
223,800sqm -192,600sqm
400 of supply of withdrawals - 1.4%
6.4% = 5.7%
300 = 5.5% = 4.9%
73,000sqm
200100 324,700sqm of vacancy of net absorp 283,000sqm of vacancy 252,300sqmof vacancy 301,800sqm of vacancy
0
Vacancy FY17 New supply Withdrawals Net absorption Vacancy FY20 Vacancy FY21 Vacancy FY22
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Source: Dexus Research, Long term average based on 20 year average as % of stock.

27 Investor presentation March 2018

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Market outlook

�� : ��

�� CBD �� – 2017�� – 2022��

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�� 2019� �� 2022��
2017�� 31%�� 3.4% ��
�� 7.1% � �� 197,000sqm ��
��CBD�� 2020�� 2020 ��
145,800sqm �� 5.5%� ��
� ��
‘000 sqm
600 + 4.4% - 3.8%
500
223,800sqm -192,600sqm
400 �� - 1.4%
300 6.4% 73,000sqm = 5.5% = 4.9% = 5.7%
��
200100 324,700sqm �� 283,000sqm �� 252,300sqm�� 301,800sqm ��
0
2017Vacancy FY17�� New supply Withdrawals�� Net absorption�� Vacancy FY202020�� Vacancy FY212021�� Vacancy FY222022��
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��: Dexus Research, Long term average based on 20 year average as % of stock.

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27 Investor presentation March 2018

Market outlook

Sydney CBD supply assumptions: major projects

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‘000sqm
150
Mooted/Early Feasibility
100
Available
50
0 Pre-committed
-50 Withdrawal
-100
-150
FY18 FY19 FY20 FY21 FY22 FY23 FY24
Source: Dexus Research.
28 Investor presentation March 2018
Market outlook
��
��CBD ��: ��
‘000sqm
150
Mooted/Early Feasibility��/��
100
50 Available��
0 Pre-committed��
-50 Withdrawal��
-100
-150
FY18 FY19 FY20 FY21 FY22 FY23 FY24
��: Dexus Research.
28 Investor presentation March 2018
Darling Square 40 York Street 2 Bligh Street Aggregated w'drawals Barrack Place Aggregated w'drawals 275 George Street Sixty Martin Place Wynard Place Wynyard Place (Shell House) Barangaroo South C1 388 George Street David Jones 183-185 Clarence Street Aggregated w'drawals Quay Quarter (AMP) Circular Quay Tower (Lend Lease) 220 George Street 338 Pitt Street Telstra Plaza Aggregated w'drawals 33 Alfred Street 55 Pitt Street Darling Park Tower 4 Martin Place Station Precinct Central Barangaroo City East Zone Substation Project
Darling Square 40 York Street 2 Bligh Street Aggregated w'drawals Barrack Place Aggregated w'drawals 275 George Street Sixty Martin Place Wynard Place Wynyard Place (Shell House) Barangaroo South C1 388 George Street David Jones 183-185 Clarence Street Aggregated w'drawals Quay Quarter (AMP) Circular Quay Tower (Lend Lease) 220 George Street 338 Pitt Street Telstra Plaza Aggregated w'drawals 33 Alfred Street 55 Pitt Street Darling Park Tower 4 Martin Place Station Precinct Central Barangaroo City East Zone Substation Project
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Market outlook

Market outlook Sydney CBD office

Strong growth as vacancy moves towards a low of 3.4% FY19
Negative net supply in FY18 and FY19
Vacancy to rise from FY20 but remain below 8% for an extended period

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

‘000sqm Sydney CBD office market
250 12%
200
9%
150
6%
100
50 3%
- 0%
-50
-3%
-100
-150 -6%
-200 -9%
FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22
Net Absorption Net Supply Vacancy (RHS)
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	Sydney CBD office market	At 31 Dec 2017
	Total net lettable area Prime vacancy average	5.04 million sqm 5.1%
	Dexus Sydney CBD exposure
	Net lettable area	697,056sqm
	Number of properties	19
	% of portfolio by value	60%
	Occupancy by area	97.5%
	Occupancy by income	97.2%
	Weighted average lease expiry	4.9 years

Source: JLL Research actual & Dexus Research forecast.

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29 Investor presentation March 2018
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Market outlook

�� CBD ��

2019��3.4% ��
2018��2019��
2020��8%��

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

‘000sqm �� CBD ��
250 12%
200
9%
150
6%
100
50 3%
- 0%
-50
-3%
-100
-150 -6%
-200 -9%
2008�� 2010�� 2012�� 2014�� 2016�� 2018�� 2020�� 2022��
�� (RHS)
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	��CBD��	2017�12�31��
	�� �� Dexus ��CBD ��	504�sqm 5.1%
	��	697,056sqm
	��	19
	��	60%
	��	97.5%
	��	97.2%
	��	4.9�

��: JLL Research actual & Dexus Research forecast.

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29 Investor presentation March 2018

Market outlook

Market outlook Melbourne CBD office

Net absorption is the highest of all CBD office markets
Strong supply pipeline with 470,000sqm being completed in FY19-21
Short-term outlook is for growth given vacancy is below average

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‘000sqm Melbourne CBD office market
250 12.5%
200 10.0%
150 7.5%
100 5.0%
50 2.5%
- 0.0%
-50 -2.5%
FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22
Net Absorption Net Supply Vacancy (RHS)
Source: JLL Research actual & Dexus Research forecast.
30 Investor presentation March 2018
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	Melbourne CBD office market	At 31 Dec 2017
	Total net lettable area Prime vacancy average	4.74 million sqm 6.0%
	Dexus Melbourne CBD exposure
	Net lettable area	275,936sqm
	Number of properties	8
	% of portfolio by value	8%
	Occupancy by area	95.0%
	Occupancy by income	96.3%
	Weighted average lease expiry	5.2 years

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Market outlook

�� CBD ��

�� CBD��
��2019��2021��470,000sqm ��

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

- ��
‘000sqm �� CBD ��
250 12.5%
200 10.0%
150 7.5%
100 5.0%
50 2.5%
- 0.0%
-50 -2.5%
2008�� 2010�� 2012�� 2014�� 2016�� 2018�� 2020�� 2022��
�� (RHS)
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	��CBD��	2017�12�31��
	��	474�sqm
	��	6.0%
	Dexus ��CBD ��
	��	275,936sqm
	��	8
	��	8%
	��	95.0%
	��	96.3%
	��	5.2�

��: JLL Research actual & Dexus Research forecast.

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30 Investor presentation March 2018

Market outlook

Market outlook Brisbane CBD office

The Queensland economy has turned the corner and jobs growth is strong
Demand strengthened with 33,000sqm of net absorption in 2017
Market is in well into recovery phase given falling prime vacancy

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‘000sqm Brisbane CBD office market
150 18%
100 12%
50 6%
- 0%
-50 -6%
-100 -12%
FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22
Net Absorption Net Supply Vacancy (RHS)
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	Brisbane CBD office market	At 31 Dec 2017
	Total net lettable area Prime vacancy average	2.27 million sqm 10.4%
	Dexus Brisbane CBD exposure
	Net lettable area	250,154sqm
	Number of properties	6
	% of portfolio by value	16%
	Occupancy by area	97.3%
	Occupancy by income	97.4%
	Weighted average lease expiry	4.8 years

Source: JLL Research actual & Dexus Research forecast.

31 Investor presentation March 2018

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Market outlook

�� CBD ��

��

-12% -6% 0% 6% 12% 18% -100 -50 - 50 100 150 2008��2010��2012��2014��2016��2018��2020��2022�� ‘000sqm ��CBD �� �� �� ��(RHS) - �� - 2017��33,000sqm�� - ��	��CBD�� 2017�12�31� ��
	�� 2.27 million sqm �� 10.4%
	Dexus ��CBD��
	�� 250,154sqm �� 6 �� 16% �� 97.3% �� 97.4% �� 4.8�

��: JLL Research actual & Dexus Research forecast.

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31 Investor presentation March 2018

Market outlook

Market outlook Perth CBD office

Conditions have improved as the drag from mining investment ends

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Perth CBD office market At 31 Dec 2017
Market has bottomed with positive take-up and vacancy declining
Total net lettable area 1.77 million sqm
Well placed for recovery with rents stabilising in 2017
Prime vacancy average 18.6%
‘000sqm Perth CBD office market Dexus Perth CBD exposure
300 30%
Net lettable area 122,153sqm
250 25%
200 20% Number of properties 3
150 15% % of portfolio by value 6%
100 10% Occupancy by area 97.5%
50 5%
Occupancy by income 96.7%
- 0%
-50 -5% Weighted average lease expiry [1] 4.3 years
-100 -10%
FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22
Net Absorption Net Supply Vacancy (RHS)
----- End of picture text -----

Market has bottomed with positive take-up and vacancy declining
Well placed for recovery with rents stabilising in 2017

Source: JLL Research actual & Dexus Research forecast.

Includes development leasing.

32 Investor presentation March 2018

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Market outlook

�� CBD ��

��
��
2017��

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‘000sqm �� CBD ��
300 30%
250 25%
200 20%
150 15%
100 10%
50 5%
- 0%
-50 -5%
-100 -10%
2008�� 2010�� 2012�� 2014�� 2016�� 2018�� 2020�� 2022��
�� (RHS)
��: JLL Research actual & Dexus Research forecast.
1. I��
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	��CBD��	2017�12�31��
	��	177�sqm
	��	18.6%
	Dexus ��CBD ��
	��	122,153sqm
	��	3
	��	6%
	��	97.5%
	�� ��1	96.7% 4.3�

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32 Investor presentation March 2018

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Outlook &
Summary
33 Investor presentation March 2018
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��

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33 Investor presentation March 2018
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Outlook

We are constantly assessing our operating environment

Market forces	Macro environment - Optimistic about Australian economic outlook - Risk of global “black swan” style event remains - Committed to maintaining a conservative and diverse capital structure to protect Security holder value and enable growth opportunities through the cycle resentation March 2018	Customer demands - Demographic shifts and technological advancements are changing how customers use and consume workspace - Evaluate customer needs and invest in workspace offerings that enhance our ability to attract and retain an increasingly diverse set of customers	Urbanisation - Population and economic growth concentrated in cities around key economic and transport hubs, will drive increased density and integration of uses within assets - Focus remains on the ownership and development of high quality real estate in major Australian cities - Gradual evolution of capabilities to maximise value for Security holders

Dexus’s response
Investor p 34

Outlook

��

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��
��
��
- �� - �� - ��
��
- ��
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- �� - �� - ��
Dexus � ��
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34 Investor presentation March 2018

Summary

Summary FY18 outlook and guidance

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Dexus distribution per security (cents) [2]
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Long-standing strategy continues to deliver
Over the next two years, Australian cities are set to continue to benefit from global economic growth, population growth and infrastructure activity
We expect to see support for real estate values over the next 12 months within our core markets
Dexus is well positioned to improve performance across a number of areas in the underlying business
Upgraded market guidance[1] for distribution per security growth to 4.5-5.0% from 4.0-4.5% for the 12 months ending 30 June 2018
Recent volatility in equity markets, has resulted in Dexus announcing plans to initiate an on-market securities buy-back of up to 5% of Dexus securities on issue, providing the opportunity to enhance investor returns

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Distribution
per security
CAGR [2] 6.8% 4.5–5.0% growth
50 (over the past 6 years ) (47.5 – 47.7)
45 .47
43.51
41.04
40 37.56
36.00
30
20 FY13 FY14 FY15 FY16 FY17 FY181
Actual Guidance
Cents per security
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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%, 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; and excluding any further transactions.
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.

35 Investor presentation March 2018

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Summary

�� 2018��

��
��
��12��
Dexus��
��2018�6�30��12�� 4.0-4.5%��4.5-5.0%��[1]
�� Dexus ��5��

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

�� ) [2]
��
CAGR [2] 6.8% 4.5–5.0% ��
50 (��6�� ) (47.5 – 47.7)
45 .47
43.51
41.04
40 37.56
36.00
30
20 FY13 FY14 FY15 FY16 FY17 FY181
��
Cents per security
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��Dexus��4-5�� 3-4��5000��FFO�2017��FFO�2.5-3.0%� �� 3,500�4,000��$1�6500�-1� 7000��;��
2015��1�6��2018��CAGR��6��

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35 Investor presentation March 2018

Appendices

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36 Investor presentation March 2018
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36
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��
Investor presentation March 2018
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Why Australia?

Solid growing economy
Low sovereign risk
Diverse service-based industries

37 Investor presentation March 2018

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Why Australia?

��?

��
��
��

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Investor presentation March 2018

Why Australia?

Why Australia? Solid growth in the economy

Australia benefits from

25 years of continuous economic growth
Strong population growth (1.6%p.a. over the next 5 years)
Proximity to Asia - APEC countries comprise 73% of exports
Educated highly skilled workforce
Rich in natural resources
Competitive productive industries

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Index GDP growth: strong economic growth vs selected GDP Growth Fcst
advanced economies next 5yrs
260 2.8% World
240 2.8% Australia
220 2.4% NZ
200
2.3% US
180
1.9% UK
160 1.7% Euro
140
120 0.8% Japan
100 5.8% China (not
plotted)
80
Jun-97 Jun-01 Jun-05 Jun-09 Jun-13 Jun-17 Jun-21
Population growth next 5 years (advanced nations)
Australia
New Zealand
Switzerland
Canada
Singapore
Hong Kong
United Kingdom
United States
France
Germany
Japan
-0.5% 0.0% 0.5% 1.0% 1.5% 2.0% %pa
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Population growth next 5 years (advanced nations)

Source: DAE, IMF (forecast is five years to 2021).

38 Investor presentation March 2018

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Why Australia?

��? ��

��
25��
�� (1.6%p.a. over the next 5 years)
�� – ��73��APEC��
��
��
��

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

GDP �� : �� vs �� GDP Growth Fcst
next 5yrs
260 2.8% World
240 2.8% Australia
220 2.4% NZ
200
2.3% US
180
1.9% UK
160 1.7% Euro
140
120 0.8% Japan
100 5.8% China (not
plotted)
80
Jun-97 Jun-01 Jun-05 Jun-09 Jun-13 Jun-17 Jun-21
�� 5 �� ( �� )
��
��
��
��
��
��
��
��
��
��
��
-0.5% 0.0% 0.5% 1.0% 1.5% 2.0% %pa
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��: DAE, IMF (forecast is five years to 2021).

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38 Investor presentation March 2018

Why Australia?

Why Australia? Low sovereign risk

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Low levels of government debt Government budget deficit/surplus Gross government debt as % of GDP
Moderately low budget deficit % of GDP % of GDP
6.0 300
Australia AAA Credit rating 4.0 250
- Germany AAA 2.0 200
- HK AA+ 0.0 150
- US AA+ -2.0 100
-4.0 50
- UK AA
-6.0 0
- China A+
-
Japan A+
Singapore Greece Hong Kong SAR New Zealand Netherlands Sweden Germany Canada Italy Australia France United Kingdom Spain Japan United States Japan Greece Italy Singapore United States Spain France Canada United Kingdom Germany Netherlands Sweden Australia New Zealand Hong Kong SAR
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Source: IMF Global economic outlook database 2017, S&P credit rating. 2017 values used.

39 Investor presentation March 2018

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Why Australia?

��? ��

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�� / �� GDP ��
��
6.0 300
�� AAA 4.0 250
- �� AAA 2.0 200
- �� AA+ 0.0 150
-2.0 100
- �� AA+
-4.0 50
- �� AA
-6.0 0
- �� A+
- �� A+
�� Singapore�� Greece �� New Zealand ��Netherlands ��Sweden Germany�� Canada�� Italy�� Australia�� France �� Spain ��Japan ��United States ��
Hong Kong SAR �� United Kingdom ��
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��: IMF Global economic outlook database 2017, S&P credit rating. 2017 values used.

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39 Investor presentation March 2018

Why Australia?

Why Australia? Diverse service-based industries

Strong growth in service industries including finance and business services
Solid growth in IT/Media/communications
Mining sector a relatively small part of economic output

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

Source: DAE
40 Investor presentation March 2018
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��? ��

��
IT/��/��
��

Output growth by industry – past 20 years

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

Health
Finance/insurance
Strong growth
Mining in service
sector
Construction
industries
Business services
Information serv.
Wholesale/retail
Property services
Transport/storage
Agriculture
Government
Recreation services
Education
Utilities Average
Manufacturing
%pa 0% 2% 4% 6%
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Why Australia?
�� – �� 20 �
��
��/��
��
��
��
��
��
��/��
��
��/��
��
��
��
��
��
��
%pa 0% 2% 4% 6%
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��: DAE
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40 Investor presentation March 2018

Why Australian real estate?

Large and active A-REIT sector
Good relative value (direct & unlisted)
High and stable income returns

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5 Martin Place, Sydney, NSW.
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41 Investor presentation March 2018

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Why Australian real estate?

��?

��A-REIT��
�� (�� & ��)
��

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5 Martin Place, Sydney, NSW.

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Investor presentation March 2018

Why Australian real estate?

Large and active A-REIT sector

A-REITs are in very good shape, with secure balance sheets (gearing 25.7%)
Stable low-risk earnings growing at ~CPI +2%
Fundamentals for Sydney and Melbourne office markets are strong

UBS global dividend yields (REITs) FY17e

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Australia 5.0%
Hong Kong
US
European
Japan
UK
2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5%
Source: UBS, Bloomberg, Dexus Research.
42 Investor presentation March 2018
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A-REIT price index vs ASX S&P 200 (index)
A-REIT S&P 200
170
160
150
140
130
120
110
100
90
80
Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
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Why Australian real estate?

��? ��A-REIT��

A-REITs��(��25.7%)��
CPI +2%��
��

UBS �� (REITs) 2017 ��

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�� 5.0%
�
��
��
��
��
��
2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5%
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�� vs ASX S&P 200 ( �� )
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----- Start of picture text -----

A-REIT S&P 200
170
160
150
140
130
120
110
100
90
80
2012 12� 2013 12� 2014 12� 2015 12� 2016 12� 2017 12�
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----- Start of picture text -----

��: UBS, Bloomberg, Dexus Research.
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Investor presentation March 2018

Why Australian real estate?

Why Australian real estate? Good relative value (direct & unlisted)

Australian yields are attractive relative to global and Asia pacific markets
Real estate yields at a wide spread to interest yields
Demand for assets exceeds supply of core real estate
Values likely to be supported by:
Long term expansion in superannuation and insurance sectors
Lower for longer interest rates

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Effective Yield
5.0%
4.1%
4.0%
3.0%
2.0%
1.0%
0.0%
Yields vs bonds/equities
Syd CBD Office 10 yr bond
ASX/S&P DIV Yield Real bond
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Dec-97 Dec-01 Dec-05 Dec-09 Dec-13 Dec-17
LA West San Francisco Sydney New York Shanghai Singapore London Tokyo Munich Paris Hong Kong
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Source: Savills (effective yields are net of incentives), Bloomberg, Dexus Research.

43 Investor presentation March 2018

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Why Australian real estate?

��? �� (�� & ��)

��
��
��
��:
��
��

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

��
5.0%
4.1%
4.0%
3.0%
2.0%
1.0%
0.0%
�� / ��
Syd CBD Office 10 yr bond
ASX/S&P DIV Yield Real bond
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
1997 12� 2001 12� 2005 12� 2009 12� 2013 12� 2017 12�
�LA ��
��
��
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��: Savills (effective yields are net of incentives), Bloomberg, Dexus Research.

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43 Investor presentation March 2018

Why Australian real estate?

Why Australian real estate? High and stable income returns

High stable income returns (7%-8% per annum over the past decade)
Relatively low volatility of returns
Total returns commensurate with global markets
Returns were more stable than UK, US and Japan during the GFC

Source: MSCI, Dexus Research; Note: Germany and USA end on Jun 2017. Annual income returns (all property) as at Dec 2016.

44 Investor presentation March 2018

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Annual income returns (all property) by country
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Favourable total returns (all property) vs the world
Australia Germany Japan
New Zealand UK USA
30%
20%
10%
0%
-10%
-20%
-30%
Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
Switzerland Sweden Austria Denmark Italy Ireland USA Global Netherlands Canada UK Spain Japan Germany Korea Czech Republic Finland Belgium Australia Hungary New Zealand South Africa
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Why Australian real estate?

��? ��

��10��7%-8%)
��
��
GFK��

��: MSCI, Dexus Research; Note: Germany and USA end on Jun 2017. Annual income returns (all property) as at Dec 2016.

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

�� ( �� )
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
�� ( �� ) vs ��
��
30% ��
20%
10%
0%
-10%
-20%
-30%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
12� 12� 12� 12� 12� 12� 12� 12� 12� 12� 12�
��
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Investor presentation March 2018

Why Australian office?

Office markets well positioned on a global scale
Falling supply and rising demand over the short term
Vacancy falling in Australia’s largest markets

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Sydney CBD.

45 Investor presentation March 2018

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Why Australian office?

��?

��
��
��

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Sydney CBD.

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Investor presentation March 2018

Why Australian office?

Why Australian office? Well positioned on global scale

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Value in USD Office supply forecast 2018 Office vacancy rate
($‘000s) Completions as a % of total stock %
London Shanghai Sao Paulo
Paris Beijing Shanghai
Tokyo Mexico City Washington…
New York Tokyo Mumbai
Mumbai Chicago
San Francisco Sao Paulo Mexico City
Frankfurt San Francisco Los Angeles
Boston Dubai Moscow
Sydney London Boston
$- $10 $20 $30 $40 $50 Singapore Milan
Hong Kong Seoul
Washington DC Madrid
Paris Singapore
Moscow New York
New York Toronto
Stockholm Brussels
Brussels San Francisco
Milan Stockholm
Frankfurt Frankfurt
Boston Beijing
Chicago Paris
Madrid Sydney
Los Angeles Hong Kong
Sydney London
Toronto Tokyo
0% 10% 20% 0% 10% 20%
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----- Start of picture text -----

Source JLL Research.
46 Investor presentation March 2018
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Why Australian office?

��? ��

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

�� 2018 ��
($‘000s) �� %
London ��
Paris ��
San Francisco �� New York �� Tokyo �� DC
�� Frankfurt ��
Boston ��
Sydney ��
$- $10 $20 $30 $40 $50 ��
��
��DC ��
��
��
��
��
��
��
��
��
��
��
��
��
��
0% 10% 20% 0% 10% 20%
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�� JLL Research.

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46 Investor presentation March 2018

Why Australian office?

Fundamentals still solid - falling supply and rising demand

Solid demand outlook supported by infrastructure spend & population growth story (Sydney, Melbourne) and improved economic backdrop (Brisbane, Perth)
A shortage of space and NSW Government decentralisation to constrain Sydney net take-up
Supply pipelines ramping up medium-term, but Sydney and Melbourne well positioned to handle any new supply

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Source: JLL, Dexus Research.
47 Investor presentation March 2018
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Office demand and supply across CBDs
% of stock 20 Yr hist
6%
4%
2%
0%
-2%
Sydney Melbourne Brisbane Perth
% of stock
6%
4%
2%
0%
-2%
Sydney Melbourne Brisbane Perth
Net absorption
FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22
Net supply
FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22
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��? – ��

��
��NSW��
��

��: JLL, Dexus Research.

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

�� CBD ��
6% % of stock
4%
2%
0%
-2%
��
6% % of stock
4%
2%
0%
-2%
��
��
��
2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
��
��
2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022
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47 Investor presentation March 2018

Why Australian office?

Vacancy falling and rents rising in Australia’s largest markets

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Office vacancy rates
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----- Start of picture text -----

Syd CBD Melb CBD Bris CBD Perth CBD
30%
25%
20%
15%
10%
5%
0%
Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
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----- Start of picture text -----

Office effective rental growth
$/sqm Syd CBD Melb CBD Bris CBD Perth CBD
$900
$800
$700
$600
$500
$400
$300
$200
Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
----- End of picture text -----

Source: JLL.

48 Investor presentation March 2018

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��? ��

��

==> picture [239 x 143] intentionally omitted <==

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

��
30%
25%
20%
15%
10%
5%
0%
Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
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��

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

$/sqm ��
$900
$800
$700
$600
$500
$400
$300
$200
Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17
----- End of picture text -----

��: JLL.

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48 Investor presentation March 2018

Why Australian office?

Strong infrastructure investment a growth driver

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Source: Macromonitor.

49 Investor presentation March 2018

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Why Australian office?

��? ��

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

��
----- End of picture text -----

��: Macromonitor.

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Investor presentation March 2018

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

Dexus portfolio
50 Investor presentation March 2018
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----- Start of picture text -----

Dexus ��
50 Investor presentation March 2018
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Dexus portfolio

Sydney CBD office portfolio

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51 Investor presentation March 2018

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Dexus portfolio

��CBD ��

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

DXS 50% �� 100% �� DXS 100% �� 100% ��
DWPF 50% ��
DXS 37.5% Dexus �� 12.5% �� DXS 50% Dexus �� 100% �� 50% ��
DXS 50% Dexus �� 100% �� 50% ��
DWPF 100% �� 100% ��
DXS 50% �� 100% ��
DXS 100% �� 100% ��
DXS 33% �� 100% ��
DXS 50% �� DWPF 33% ��
DXS 100% �� 100% �� DXS 50% Dexus �� 100% �� 50% ��
DXS 100% �� 100% �� DXS 25% DWPF 25% �� , ��
DXS 100% �� 50% ��
DXS 50% �� 100% �� DXS 50% Dexus �� 100% �� 50% ��
Dexus �� 50% ��
DXS 25% Dexus �� 100% �� 25% ��
DXS 100% �� 100% ��
DXS 100% �� 100% �� DXS 50% Dexus �� 100% �� 50% ��
DXS 100% �� 100% �� DXS 50% ��
�� 100% ��
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51 Investor presentation March 2018

Dexus portfolio

Melbourne CBD office portfolio

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52 Investor presentation March 2018

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Dexus portfolio

��CBD ��

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52 Investor presentation March 2018

Dexus portfolio

Brisbane CBD office portfolio

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53 Investor presentation March 2018

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Dexus portfolio

��CBD ��

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53 Investor presentation March 2018

Dexus portfolio

Perth CBD office portfolio

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54 Investor presentation March 2018

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Dexus portfolio

��CBD ��

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

DXS 50% �� 100% ��
Dexus �� 50% ��
DXS 100% �� 100% ��
DXS 50% �� 50% ��
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54 Investor presentation March 2018

HY18 financial results

Investor presentation March 2018

2018��

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55
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Investor presentation March 2018
----- End of picture text -----

HY18 financial results

Delivered strong financial result in HY18

HY18 $m HY17 $m Change % Office property FFO 299.4 292.6 2.3% Industrial property FFO 64.6 53.7 20.3% Total property FFO 364.0 346.3 5.1% Management operations1 25.1 21.0 19.5% Group corporate (13.6) (10.7) (27.1%) Net Finance costs (63.3) (64.5) 1.9% Other2 (4.7) (4.4) (6.8%) Underlying FFO3 307.5 287.7 6.9% Trading profits (net of tax) 14.3 8.3 72.3% FFO 321.8 296.0 8.7% Adjusted Funds from Operations (AFFO) 246.3 214.3 14.9% Distribution payout (% AFFO) 97.9% 98.0% Distribution 241.1 210.1 14.8%	- Management operations increased as a result of revaluation growth and a strong first half of office leasing - Management Expense Ratio (MER) benefited from increased revaluations, reducing to 33 basis points - Office property FFO growth due to lease commencements across the portfolio and acquisitions in July 2017 - Industrial property FFO growth driven by increased occupancy from lease commencements, income from completed developments and acquisitions
	HY18 HY17 Change
	Underlying FFO per security3 30.2 29.7 1.7% FFO per security 31.6 30.6 3.3% Distribution per security 23.7 21.7 9.2%
	HY18 FY17
	NTA per security $9.16 $8.45 8.4%

Management operations income includes development management fees.
Other FFO includes non-trading related tax expense.
Underlying FFO excludes trading profits net of tax.

56 Investor presentation March 2018

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HY18 financial results

2018��

2018� 100�� 2017� 100�� �� % ��FFO 299.4 292.6 2.3% ��FFO 64.6 53.7 20.3% ��FFO 364.0 346.3 5.1% ��1 25.1 21.0 19.5% �� (13.6) (10.7) (27.1%) �� (63.3) (64.5) 1.9% ��2 (4.7) (4.4) (6.8%) ��FFO3 307.5 287.7 6.9% ��(��) 14.3 8.3 72.3% FFO 321.8 296.0 8.7% ��(AFFO) 246.3 214.3 14.9% ��(% AFFO) 97.9% 98.0% �� 241.1 210.1 14.8%	- �� - ��(MER)��33�� �� - 2017�7�� ��FFO�� - �� ��FFO��
	2018�� 2018�� � �
	1��FFO3 30.2 29.7 1.7% 1��FFO 31.6 30.6 3.3% 1�� 23.7 21.7 9.2%
	2018�� 2017��
	1��NTA $9.16 $8.45 8.4%

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56 Investor presentation March 2018

HY18 financial results

Financial results

Reconciliation to statutory profit

Reference	Item	31 Dec 2017	31 Dec 2016
		$m	$m
Statutory AIFRS net profit after tax		997.1	716.0
Investment property and inventory	(Gains)/losses from sales of investment property	0.7	(71.4)
	Fair value gain on investment property	(730.2)	(396.0)
Financial instruments	Fair value loss on the mark-to-market of derivatives	9.2	80.9
Incentives and rent straight-lining	Amortisation of cash and fit out incentives	26.6	24.4
	Amortisation of lease fees	6.5	4.8
	Amortisation of rent-free incentives	30.0	25.5
	Rent straight-lining	(11.6)	(4.4)
Tax	Non-FFO tax expense	-	(1.2)
Other unrealised or one-off Items	Other unrealised or one-off items	(6.5)1	(82.6)
Funds From Operations(FFO)		321.8	296.0
Maintenance and leasing capex	Maintenance capital expenditure	(28.6)	(21.5)
	Cash incentives and leasing costs paid	(14.6)	(28.6)
	Rent free incentives	(32.3)	(31.6)
Adjusted Funds From Operations (AFFO)		246.3	214.3
Distribution		241.1	210.1
AFFO Payout ratio		97.9%	98.0%

Includes $18.4 million of unrealised fair value gains on interest bearing liabilities, $2.7 million amortisation of intangible assets, $9.2 million coupon income, rental guarantees received and other.

57 Investor presentation March 2018

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HY18 financial results

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		100��	100��
��AIFRS)��
�		997.1	716.0
��	��	0.7	(71.4)
	��	(730.2)	(396.0)
��	��	9.2	80.9
��	��	26.6	24.4
	��	6.5	4.8
	��	30.0	25.5
	��	(11.6)	(4.4)
�	�FFO��	-	(1.2)
��	��	(6.5)1	(82.6)
��(FFO)		321.8	296.0
��	��	(28.6)	(21.5)
	��	(14.6)	(28.6)
	��	(32.3)	(31.6)
��(AFFO)		246.3	214.3
��		241.1	210.1
AFFO��		97.9%	98.0%

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57 Investor presentation March 2018

HY18 financial results

Financial results

Management operations profit

	Property	Funds	Development	Management
HY18 ($m)	Management	Management	Management	Operations
Revenue	35.7	27.8	2.2	65.7
Operating expenses	(26.0)	(11.2)	(3.4)	(40.6)
HY18 netprofit	9.7	16.6	(1.2)	25.1
HY18 margin	27%	60%		38%
HY17 margin	21%	61%		35%

58 Investor presentation March 2018

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HY18 financial results

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2018��(100��)	��	��	��	��
��	35.7	27.8	2.2	65.7
��	(26.0)	(11.2)	(3.4)	(40.6)
2018��	9.7	16.6	(1.2)	25.1
2018��	27%	60%		38%
2017��	21%	61%		35%

==> picture [79 x 30] intentionally omitted <==

58 Investor presentation March 2018

HY18 financial results

Financial results Cash flow reconciliation

		31 Dec 2017	31 Dec 2016
		$m	$m
Cash flow from operating activities		180.9	301.6
add back:	payment for inventory acquisition and capex	91.8	27.2
less:	development costs	(70.0)	(38.1)
add:	development revenue1	90.4	-
less:	deferred settlement of sale of Mascot	-	(5.0)
less:	tax on trading profits not yet paid	(6.1)	(3.6)
add back:	capitalised interest	6.4	4.8
less:	adjustments for equity accounted distributions	12.3	(19.9)
add back:	other working capital movements	(9.4)	0.8
Adjusted cash flow from operating activities		296.3	267.8
Rent free income		32.3	31.6
Depreciation and amortisation (including deferred borrowing costs)		(6.8)	(3.4)
FFO		321.8	296.0
Less: payments from maintenance capex and incentives2		(75.5)	(81.7)
AFFO		246.3	214.3
Less:gross distribution		(241.1)	(210.1)
Cash surplus/deficit		5.2	4.2

Deferred settlement of development revenue.
Includes cash and fitout incentives, lease fees and rent free incentives.

59 Investor presentation March 2018

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HY18 financial results

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		2017�12�31�	2016�12�31�
		100��	100��
��		180.9	301.6
��:	��	91.8	27.2
��:	��	(70.0)	(38.1)
��:	��1	90.4	-
��:	Mascot��	-	(5.0)
��:	��	(6.1)	(3.6)
��:	��	6.4	4.8
��:	��	12.3	(19.9)
��:	��	(9.4)	0.8
��		296.3	267.8
��		32.3	31.6
��(��)		(6.8)	(3.4)
FFO		321.8	296.0
��:��2		(75.5)	(81.7)
AFFO		246.3	214.3
��: ��		(241.1)	(210.1)
��/��		5.2	4.2

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59 Investor presentation March 2018

HY18 financial results

Financial results Interest reconciliation

Financial results Interest reconciliation		HY18 financial results
	31 Dec 2017	31 Dec 2016
	$m	$m
Total statutory finance costs1	60.4	49.9
Add: unrealised interest rate swap MTM gain/(loss)2	1.1	12.7
Add: finance costs attributable to investments accounted for using the equity method	2.5	2.5
Net finance costs for FFO1	64.0	65.1
Add: interest capitalised	6.4	4.8
Gross finance costs for cost of debt purpose	70.4	69.9

Excludes interest income of $0.7 million.
Net fair value loss of interest rate swap of $6.2 million (per note 2 of the Financial Statements) includes realised interest rate swap expense of $7.3 million and unrealised interest rate swap MTM gain of $1.1 million.

60 Investor presentation March 2018

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HY18 financial results

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	2017�12�31�	2016�12�31�
	100��	100��
��1	60.4	49.9
��:��/(��)2	1.1	12.7
��:��	2.5	2.5
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��:��	6.4	4.8
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60 Investor presentation March 2018

Development

Investor presentation March 2018

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Investor presentation March 2018

Development

Development Dexus development pipeline

$2.1 billion Dexus Development Pipeline	$2.1 billion Dexus Development Pipeline	$2.1 billion Dexus Development Pipeline	$2.1 billion Dexus Development Pipeline
Project cost on uncommitted projects $737 million Total committed projects $1.3 billion Total uncommitted projects $536 million Remaining spend on committed projects Uncommitted projects focused primarily on office & mixed use
Uncommitted projects	FY18	FY19	FY20+
Office / City Retail - 5 properties $613m Industrial – 2 properties $164m Mixed use - 2 properties $546m
Project cost on uncommitted projects $1,323m

62 Investor presentation March 2018

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Development

�� Dexus ��

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62 Investor presentation March 2018

Development

Dexus committed developments & portfolio capex

Pipeline			Building area1		Project cost	Est. cost to	Yield on cost3	Leased	Completion
			sqm		est.2	completion2	%	%	due
					$m	$m
Office	100 Mount Street, North Sydney, NSW		41,700		231	130	8%	60%	Feb 2019
	180 Flinders Street, Melbourne,	VIC4	20,100		146	145	6-7%	0%	Mid 2020
	Annex, 12 Creek Street, Brisbane, QLD		6,700		30	28	7-8%	0%	Aug 2019
	240 St Georges Terrace, Perth, WA		47,800		165	162	c.7%	35%5	Late 2021
Total office			116,300		572	465
Industrial	1-5 Felstead Drive, Laverton North, VIC		21,900		22	13	8%	100%	May 2018
	41 Foundation Road, Laverton North, VIC		20,700		24	8	7%	100%	Mar 2018
	1-3 Dolerite Way, Greystanes, NSW		8,000		8	1	7%	100%	Mar 2018
	7 Dolerite Way, Greystanes, NSW		26,700		23	1	7%	100%	Mar 2018
	9 Dolerite Way, Greystanes, NSW		6,800		5	1	8%	100%	Mar 2018
	2-6 Dolerite Way, Greystanes, NSW		33,400		28	16	8%	0%	Sep 2018
Total industrial			117,500		110	40
City retail	175 Pitt Street, Sydney, NSW		5,300		30	7	6-7%	72%	Apr 2019
	44 Market Street, Sydney, NSW		1,500		20	19	6-7%	96%	May 2019
	1 Farrer Place, Sydney, NSW		500		5	5	5-6%	42%	Nov 2018
Total city	retail		7,300		55	31
Total developments committed			241,100		737	536
Dexus total portfolio capital expenditure		HY18	FY18E
Maintenance capital expenditure		$28.6m	c. $65m	1.	At 100%.
Cash incentives and leasing costs		$14.6m	c. $40m	2. 3.	Dexus interest in development cost (including Yield on cost calculation includes cost of land.		cost of land where purchased for development).
Rent free	incentives	$32.3m	c. $60m	4. 5.	Includes associated refurbishment works. 35% of the whole building is committed. Circa		40% of the Woodside space is	committed.
Total capital expenditure		$75.5m	$165-170m
63	Investor presentation March 2018

Development

��

Dexus �� & ��

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			��			�� �� ��	�� ��	�� �
��	100 Mount Street, North Sydney, NSW		41,700			231	130	8%	60%	Feb 2019
	180 Flinders Street, Melbourne,	VIC4	20,100			146	145	6-7%	0%	Mid 2020
	Annex, 12 Creek Street, Brisbane, QLD		6,700			30	28	7-8%	0%	Aug 2019
	240 St Georges Terrace, Perth, WA		47,800			165	162	c.7%	35%5	Late 2021
��			��			��	��
��	1-5 Felstead Drive, Laverton North, VIC		21,900			22	13	8%	100%	May 2018
	41 Foundation Road, Laverton North, VIC		20,700			24	8	7%	100%	Mar 2018
	1-3 Dolerite Way, Greystanes, NSW		8,000			8	1	7%	100%	Mar 2018
	7 Dolerite Way, Greystanes, NSW		26,700			23	1	7%	100%	Mar 2018
	9 Dolerite Way, Greystanes, NSW		6,800			5	1	8%	100%	Mar 2018
	2-6 Dolerite Way, Greystanes, NSW		33,400			28	16	8%	0%	Sep 2018
��			��			��	��
��	175 Pitt Street, Sydney, NSW		5,300			30	7	6-7%	72%	Apr 2019
	44 Market Street, Sydney, NSW		1,500			20	19	6-7%	96%	May 2019
	1 Farrer Place, Sydney, NSW		500			5	5	5-6%	42%	Nov 2018
��			7,300			55	31
��			241,100			737	536
��		��	��
��		$28.6m	c. $65m	��	��
��		$14.6m	c. $40m	�� �� ��	�� �� ��
��		$32.3m	c. $60m	��	��
��		$75.5m	$165-170m
63 Investor	presentation March 2018

Development

Dexus uncommitted developments

Pipeline		Building area1 sqm	Project cost est.2 $m	Est. yield on est. project cost3 %
Office	Waterfront Place Precinct Masterplan, Brisbane, QLD (Office)	81,700	275
	11 Talavera Road, Macquarie Park, NSW4	24,000	257
Total office		105,700	532	7-8%
Industrial	Dexus Industrial Estate (Stage 2B & 3), Laverton North, VIC	66,700	94
	Axxess Corporate Park, Mount Waverley, VIC	16,000	70
Total industrial		82,700	164	6-9%
City retail	321 Kent Street Retail Podium, Sydney, NSW	4,800	16
	201 Elizabeth Street, Sydney, NSW	4,900	24
	MLC Centre, 19 Martin Place, Sydney, NSW	12,200	41
		21,900	81	5-6%
Other	Waterfront Place Precinct Masterplan, Brisbane, QLD (Resi & Hotel)	58,000	270
	201 Elizabeth Street, Sydney, NSW (Resi & Hotel)	54,600	276
Total other		112,600	546
Total uncommitted		322,900	1,323

At 100%.
Dexus interest in development cost (including cost of land where purchased for development). 3. Yield on cost calculation includes cost of land. 4. Includes associated refurbishment works.

64 Investor presentation March 2018

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Development

�� Dexus ��

		��	��	��
��		��	��	��
			��	�
��	Waterfront Place Precinct Masterplan, Brisbane, QLD (Office)	81,700	275
	11 Talavera Road, Macquarie Park, NSW4	24,000	257
��		105,700	532	7-8%
��	Dexus Industrial Estate (Stage 2B & 3), Laverton North, VIC	66,700	94
	Axxess Corporate Park, Mount Waverley, VIC	16,000	70
��		82,700	164	6-9%
��	321 Kent Street Retail Podium, Sydney, NSW	4,800	16
	201 Elizabeth Street, Sydney, NSW	4,900	24
	MLC Centre, 19 Martin Place, Sydney, NSW	12,200	41
		21,900	81	5-6%
��	Waterfront Place Precinct Masterplan, Brisbane, QLD (Resi & Hotel)	58,000	270
	201 Elizabeth Street, Sydney, NSW (Resi & Hotel)	54,600	276
��		112,600	546
��		322,900	1,323

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64 Investor presentation March 2018

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.

65 Investor presentation March 2018

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Investor presentation March 2018

AI assistant

DEXUS — Investor Presentation 2018

64807_rns_2018-03-04_fab3fbdb-0cf9-442a-9b0d-4d3324bf0e8f.pdf

Dexus (ASX: DXS)

ASX release

5 March 2018

Daiwa Investment Conference presentation

For further information please contact:

About Dexus

Download the Dexus IR app

Contents

��

Overview

Total group portfolio composition

Total group FUM $26.5 billion

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Overview Dexus today

Overview Commitment to strategy

Overview

Dexus HY18 performance

�� Dexus 2018����

Property portfolio Office: 84% of balance sheet assets

15.8%

109 ���

Property portfolio Office: portfolio diversification

Office by location

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Property portfolio Office: consistent lease expiry profile

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Property portfolio Industrial: 16% of balance sheet assets

$2.1bn

54

5.0 years

15.4%

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97.5%

15.4%

Property portfolio Industrial: portfolio diversification

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Property portfolio Industrial: lease expiry profile

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Property portfolio HY18 valuation uplift

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Valuation performers[1]

12 month outlook

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Development: $4.2 billion group pipeline

Concentrated in major cities and supported by broad capability

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Development: activating office projects

Development: strength at industrial estates Developing to capture customer demand

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Development: Value creation 100 Mount Street, North Sydney

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Funds Management

Driving performance and delivering growth for clients

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Funds Management New fund completes first equity raise

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Trading business Positioned to deliver FY18 target

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Trading business

Future opportunity: 12 Frederick Street, St Leonards – Stage 1

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Capital management Maintained balance sheet strength

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Market outlook

Lead indicators for office demand are positive

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Market outlook

Office rents expected to rise as vacancy declines further

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DEXUS Investor Presentation 2018

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