DEXUS - Investor Presentation 2019

Dexus (ASX:DXS)

ASX release

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14 August 2019

2019 Annual results presentation

Dexus provides its 2019 Annual Results Presentation.

An investor conference call will be webcast at 9.30am today on www.dexus.com/investor-centre

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 [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 $31.8 billion. We believe that the strength and quality of our relationships is 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 $15.6 billion of office and industrial properties. We manage a further $16.2 billion of office, retail, industrial and healthcare properties for third party clients. The group’s circa $9.3 billion development and concept pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.7 million square metres of office workspace across 53 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 26,000 investors from 19 countries. With 35 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 riskadjusted 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)

Annual Results Presentation

2019

A summary of Dexus’s operational and financial performance

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2019 Annual Results
14 August 2019
Dexus Funds Management Limited
ABN 24 060 920 783
AFSL 238163 as responsible entity for Dexus
1
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Agenda

Overview

Financial results Office portfolio performance Industrial portfolio performance

Developments (Core & Trading) Funds management Outlook and summary Appendices

2 2019 Annual Results Presentation

Darren Steinberg ‐ Chief Executive Officer

Alison Harrop ‐ Chief Financial Officer

Kevin George ‐ Executive General Manager, Office Stewart Hutcheon ‐ Executive General Manager, Industrial and Retail

Ross Du Vernet ‐ Chief Investment Officer

Deborah Coakley ‐ Executive General Manager, Funds Management Darren Steinberg ‐ Chief Executive Officer

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Megatrends

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Dexus’s strategy is orientated around two key long‐term growth thematics

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1 2 We are in a climate of rapid
Urbanisation Growth in pension capital fund flows change and the context in which
we operate our business, both
Densification of land use in and around key economic and transport hubs Increased demand for real assets from growing and ageing populations today and in the future, is
informed by the disruption and
30.2 41.4 opportunity created by global
megatrends.
“Australia’s +55.6%
+13.7 major cities all 26.6 Other megatrends that could
ranked in the impact Dexus’s strategy and
16.5 top 25 most allocated to real 20%+ outlook include:
liveable cities estate, infrastructure
globally” and private equity, up The rise of the millennial worker
from 4% in 1997
EIU Liveability
Rankings Technological change
2017 2060F 2007 2017
Environmental sustainability
“re‐creation of assets in high demand CBD locations to “attraction of like minded, long dated, third party capital
unlock change of use upside” partners to invest alongside Dexus”
1. Source: ABS
2. Source: Willis Towers Watson, Global pension assets study 2018.
3 2019 Annual Results Presentation
2
1
(USD trillion)
Pension funds total assets
Australian capital cities population (millions)
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FY19 highlights Creating sustained value for Security holders

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FY19 highlights
Financial Office Funds People & Capabilities 2018Environment
DistributionDelivering for Security holders +5% +5.5%AFFO [1] 10.1%ROCE [2] MSCI benchmark over Office portfolio outperformed Dexus Wholesale Property Fund outperformed benchmark over Recognised as an Employer of Choice for 2020 NABERS targets progressed950,351sqm 5 star NABERS Energy or above
per security growth per securitygrowth 3 & 5 years 1, 3, 5, 7 and 10 years Gender Equality 757,422sqm 4 star NABERS Water or above
Total Assets Under Management (AUM) FY18FY19 $27.2bn$31.8bn +$4.6bnin AUM 242kleasing [5] successsqm of ‐‐‐‐ 98% occupancy4.4 year WALE13.4% averages incentives24% Sydney CBD leasing [6] New unlisted logistics fund Logistics Trust (DALT)Dexus Australian Female gender representation in senior and executive management roles37% Secured industry leading supply‐linked Energy Supply Agreement offsite renewable [7]
spread [6] established with GIC
Capital management activitiesInstitutional placement Security Purchase Plan $63.9m$900m Exchangeable notes $425m 24.0%Gearing [3] Significant development commitments100 Mount 96%Street 240 St Georges Terrace 93% 180 Flinders 81%Street new capital $1bn+raised ‐‐‐ Diversified ‐ $340mHealthcare ‐ $100mLogistics & Industrial Funds ‐ $645m Employee Net Promoter +40Score Achieved 2020 target to reduceenergy use and emissions by 10% [8] like‐for‐like
Total Security holder One‐year return [4] Customer Net Promoter Score +46 12 Ranking in 2018 AFR 43rd IBcon Most Tech Certified Science Based
achieved up from New investors attracted to the most innovative Intelligent Target consistent with
39.4% +32 in FY18 funds management platform company Office Portfolio 2019 the Paris Agreement
1. Adjusted Funds From Operations. 5. Including development leasing of 52,815 square metres.
2. Return on Contributed Equity. 6. Excluding development leasing.
3. Adjusted for cash and debt in equity accounted investments. 7. Powering 50% of base building load across 40 NSW properties from January 2020.
4. Source: UBS Australia 30 June 2019. 8. FY15 base year.
4 2019 Annual Results Presentation
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Active year of transaction activity

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Securing opportunities and recycling capital, alongside third party capital partners
Replenishing industrial Acquisition of prime DWPF acquisition of Acquisition of remaining Acquisition of Acquisition of
development landbank development site in industrial property in 50% in MLC Centre, 80 Collins precinct, Pitt and Bridge precinct
billion$3.1 Ravenhall $188 million(DALT 50%, DWPF 50%), (60 & 52 Collins St)Melbourne CBD Banyo, QLD $34 million $800 million Sydney Melbourne $1.48 billion 56 Pitt, Sydney Three properties adjacent to (two exchanged to be
South Granville Richlands (DALT 100%)(DALT 100%), DXS 100% interest$230 million DWPF 100% interest DXS 25%, DWPF 25% DXS 75%, DWPF 25% acquired on deferred settlement basis)$354 million
Acquisitions DXS 50%
Dexus Office Partner 50%
August September November March May June
2018 2018 2018 2019 2019 2019
Total transactions of July October December January
$3.9 billion 2018 2018 2018 2019
in FY19 August November February April
2018 2018 2019 2019
Divestments DWPF sale of JV with GIC to establish Sale of Sale of
Sturt Mall, Wagga Wagga Dexus Australian Logistics Trust 11 Talavera Road, Finlay Crisp Centre,
$0.8 $73 million (DALT) Macquarie Park Canberra
billion DWPF 100% interest circa $2 billion logistics portfolio seeded with Dexus industrial assets $231 million $62 million
DXS 100% interest DXS 50% Key
Initial 25% tranche Dexus Office Partner 50% Dexus alongside third
$364 million party capital partner
Office Industrial Retail Sector
5 2019 Annual Results Presentation
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Financial
Results
6 2019 Annual Results Presentation
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Key earnings drivers and valuations

All drivers delivering and valuations up in FY19

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Creating value from key earnings drivers Valuations
Earnings driver FY19 achievements Total Dexus portfolio uplift
PROPERTY Property AFFO [1] of $583.5 million $773.1m 5.26% ↓ 26 bps
PORTFOLIO +3.4% office LFL income growth Total portfolio Total portfolio
+8.0% industrial LFL income growth [2] valuation uplift [4] cap rate [5] (FY18: 5.52%)
Dexus office portfolio uplift
MANAGEMENTFUNDS FFO of $54.6 million Office portfoliovaluation uplift Office portfolio cap rate [5] 39% 61%
$594.6m 5.15% ↓ 22 bps
FY18: $1,054.0m FY18: 5.37% Rental growthCap rate compression
Trading profits of $34.7 million [3] from
TRADING
sale of 32 Flinders Street, Melbourne Dexus industrial portfolio uplift 23%
Industrial portfolio Industrial portfolio
valuation uplift cap rate [5]
$170.3m 5.92% ↓ 48 bps 77%
1. AFFO contribution is calculated before finance costs, group corporate costs and tax. Property AFFO is equal to Property FFO of $747.8 million less total portfolio AFFO capex of $164.3 million. FY18: $141.9m FY18: 6.40% Rental growth
2. Excluding one‐off income across the portfolio, LFL income growth is +2.5%. Cap rate compression
3. Net of tax.
4. Includes healthcare property revaluation gain of $8.2 million in 12 months to 30 June 2019.
5. Stabilised portfolio weighted average capitalisation rate.
7 2019 Annual Results Presentation
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Delivered a strong financial result

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Office property FFO growth driven by lease commencements across the portfolio and acquisitions, offset by divestments (Southgate tranche 2, 11 Waymouth Street and 32 Flinders Street), vacancy at 240 St Georges Terrace and a delayed tenant payment

	FY19	FY18	Change
	$m	$m	%
Office property FFO	610.5	603.8	1.1%
Industrial property FFO	137.3	132.7	3.5%
Total property FFO Management operations1	747.8 54.6	736.5 52.5	1.5% 4.0%
Group corporate	(30.2)	(27.4)	10.2%
Net finance costs	(117.1)	(134.4)	12.9%
Other2	(8.3)	(10.5)	21.0%
Underlying FFO3	646.8	616.7	4.9%
Trading profits (net of tax)	34.7	36.6	5.2%
FFO	681.5	653.3	4.3%
Adjusted Funds from Operations (AFFO)	517.2	485.5	6.5%
Distribution payout (% AFFO)	98.7%4	100.2%
Distribution	529.0	486.4	8.8%

‐ Industrial property FFO growth driven by lease commencements, development completions and one‐off income, offset by divestments

Management operations increased as a result of a new fund, acquisitions and revaluation growth, offset by $3.5m of bidding costs for development opportunity

Finance costs reduced primarily due to capitalised interest on development impacted property and a lower cost of debt

‐ Management Expense Ratio (MER) benefited from acquisitions and revaluations, reducing to 30 basis points

	FY19	FY18	Change
Underlying FFO per security3	62.9 cents	60.6 cents	3.8%
FFO per security	66.3 cents	64.2 cents	3.3%
AFFO per security	50.3 cents	47.7 cents	5.5%
Distribution per security	50.2 cents	47.8 cents	5.0%
NTA per security	$10.48	$9.64	8.7%

Management operations income includes development management fees and in FY19 includes bidding costs for above station opportunities.
Other FFO includes non‐trading related tax expense and other miscellaneous items.
Underlying FFO excludes trading profits net of tax.
FY19 distribution payout ratio has been adjusted to exclude the $18.3 million of distributions paid on new securities issued through the Institutional Placement and Security Purchase Plan announced on 2 May 2019, which were fully entitled to the distribution for the six months ending 30 June 2019. The distribution payout ratio was 102.3% including this amount.
8 2019 Annual Results Presentation

Balance sheet strength maintained

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Well positioned on cost, duration and diversification

Further diversified funding sources and maintained low gearing
Issued A$425 million Exchangeable Notes to fund Dexus’s acquisition of an additional 25% interest in the MLC Centre, Sydney
Completed an Institutional Placement and Security Purchase Plan raising $964 million to fund Dexus’s 75% interest in 80 Collins Street, Melbourne

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Key metrics 30 June 2019 30 June 2018
Gearing (look‐through) [1] 24.0% 24.1%
Cost of debt [2] 4.0% 4.2%
Duration of debt 6.7 years 7.0 years
Hedged debt (incl caps) [3] 74% 71%
S&P/Moody’s credit rating A‐/A3 A‐/A3
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Adjusted for cash and debt in equity accounted investments.

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Maintain a strong balance sheet
FY20
focus
Further strengthen debt diversification
Diversified sources of debt
Debt capital markets 64% Bank debt 36%
Bank Facilities
Exchangeable Notes 36%
9%
144A 7%
Commercial Paper
2%
USPP 34%
MTN 12%
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Weighted average for the year, inclusive of fees and margins on a drawn basis.
Average for the year. Hedged debt (excluding caps) was 58% for the 12 months to 30 June 2018 and 55% for the 12 months to 30 June 2019.

9 2019 Annual Results Presentation

Office portfolio performance

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10 2019 Annual Results Presentation
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Office portfolio overview
Improved portfolio quality and geographic diversification
‐ Capitalising on buoyant Sydney and Melbourne Asset diversification
office markets Premium Grade 31%
‐ Increased exposure in Melbourne CBD
‐ Improving conditions in Perth and Brisbane Development &
other 7%
‐ Positioning to capture long‐term value creation Up from 4%
through development opportunities at FY18
A Grade 57%
‐ Divested non‐core assets B Grade 5%
Geographic diversification
Canberra CBD Melbourne CBD
1% 16%
Up from 8%
Perth CBD at FY18
5%
Brisbane CBD13% Sydney CBD56%
Sydney Other
4%
North Sydney
5%
11 2019 Annual Results Presentation
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Office portfolio metrics Leasing activity drives increased occupancy

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Portfolio snapshot Leasing by area [1] Occupancy Dexus office portfolio vs MSCI at 31 March 2019 [4]
Dexus portfolio value $13.2 billion 189,459sqm 98.0%FY18: 96.0% 15%14%13% 12.7%13.1%12.9% 14.0% 13.9%13.0% 13.3% 13.5%12.8%
Average incentives [1] WALE [2] 12%
46
properties 13.4% 4.4 years 11%10%
FY18: 13.9% FY18: 4.6 years
9%
1 year 3 years 5 years
1.5 million Sydney CBD leasing spread [1] Dexus office portfolio Dexus Group office portfolio MSCI
square metres Effective LFL income +24%
‐ Dexus office portfolio outperforming over 3 and 5 years
+3.4%
$21.8 billion Face: +3.5% Portfolio one‐year
Group portfolio value total return [3] FY20 Extending WALE and
10.6% focus maximising AFFO
at 30 June 2019
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1. Excluding development leasing of 52,815 square metres.
2. Weighted average lease expiry.
3. Portfolio unlevered total return for 12 months to 30 June 2019.
4. Period to 31 March 2019 which reflects the latest available MSCI Australian Quarterly Digest for Office Property benchmark (formerly IPD) data.
12 2019 Annual Results Presentation
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Office portfolio expiry profile
Upside from diversified expiry profile
‐ Sydney accounts for 163,992 square metres of office expiries up to and including FY22, representing
23% of office portfolio income
25%
20%
16.4%
15%
12.8% 13.3%
11.6%
10%
6.9%
5%
2.0%
0%
Available FY20 FY21 FY22 FY23 FY24
Sydney Total
FY20 Key expiries FY21 Key expiries FY22 Key expiries
Grosvenor Place (0.8%) 80 Collins Street North (1.7%) 123 Albert Street (3.9%)
Australia Square (0.7%) 45 Clarence Street (0.9%) 383-395 Kent St (1.3%)
30 The Bond (0.5%) Grosvenor Place (0.9%) 44 Market St (1.0%)
13 2019 Annual Results Presentation
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Customer focus

Enhancing capabilities to meet customer needs

Introducing products and services focused on making our customers’ experience ‘ simple & easy ’
Project Delivery Group focused on delivering customer workplace fit‐outs
In August 2019, introduced workspace consulting services – Six Ideas by Dexus
Fifth Dexus Place set to open at 240 St Georges Terrace, Perth

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The Net Promoter Score (NPS) is calculated as the difference between the percentage of Promoters and Detractors. The NPS is not expressed as a percentage but as an absolute number between ‐100 and +100.
The Customer Satisfaction Score is out of 10 points.

FY19 customer survey results Customer surveys undertaken 1,043 FY18: 965

Response rate 48% FY18: 46% Customer NPS[1] +46 FY18: +32 FY13: +4 Customer satisfaction score[2] 8.6/10 FY18: 8.3/10

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14 2019 Annual Results Presentation
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Office market outlook

Dexus portfolio well positioned across core markets

Sydney

Market well‐placed amid global uncertainty
Vacancy low at 4.1%

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Melbourne

Vacancy low at 3.8%
‐ Market well‐positioned to absorb supply given strong employment growth

Brisbane

Prime vacancy has almost halved to 7.7% in the past three years
Net absorption well above average in FY19

Perth

Demand improving with almost 50,000sqm net absorption in FY19

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Rents growing and prime vacancy has reduced to 14.8%

Implications to Dexus

In Sydney CBD, upcoming leasing will enable the portfolio to catch up on strong market rent growth over the past few years, with +24% leasing spread achieved in FY19 and the portfolio remaining under‐rented

15 2019 Annual Results Presentation

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Industrial portfolio
performance
16 2019 Annual Results Presentation
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Industrial portfolio metrics

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E‐commence demand drives leasing success
Portfolio snapshot Leasing by area Occupancy Dexus industrial portfolio vs MSCI at 31 March 2019 [3]
324,765sqm 97.0% 15%
Dexus portfolio value $2.3 billion FY18: 98.3% 14%13% 13.9%13.8%13.8% 13.2% 13.0% 12.7% 12.9% 13.2%
67 Average incentives WALE [1] 12% 11.8%
properties 11.7% 4.7 years 11%
FY18: 12.6% FY18: 4.8 years 10%
1.4 million 9%
1 year 3 years 5 years
square metres Effective LFL income Portfolio one‐year Dexus industrial portfolio Dexus Group industrial portfolio MSCI
+8.0% Excluding one off total return [2] ‐ Dexus industrial portfolio outperforming over 1 and 3 years
$4.6 billion Face: 5.5% income across the 12.9%
Group portfolio value portfolio effective LFL growth is +2.5% at 30 June 2019 FY20 Maximising synergies across our
focus customer base
1. Weighted average lease expiry.
2. Portfolio unlevered total return for 12 months to 30 June 2019.
3. Period to 31 March 2019 which reflects the latest available MSCI Australian Quarterly Digest for Industrial Property benchmark (formerly IPD) data.
17 2019 Annual Results Presentation
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Developments
(Core & Trading)
18 2019 Annual Results Presentation
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c.$9.3 billion[1 ] group development and concept pipeline Diversified across sectors and locations

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$9.3 billion [1 ] group development and concept pipeline
Office Industrial City Retail/Retail/Other Healthcare Concept pipeline
0%
60% 40% 36% 55%
$5.1bn $0.8bn $0.6bn $0.6bn circa $2.2bn
($0.6bn committed) ($0.2bn committed) ($0.4bn committed) (committed) [3] (Concept)
including: including: including: including: including:
180 Flinders Street, Melbourne 2‐8 South Street, Rydalmere MLC Centre, Sydney Calvary Adelaide Hospital Henry Deane Pl, Central, Sydney
80 Collins Street, Melbourne [2] Dexus Industrial Estate, Truganina 175 Pitt Street, Sydney North Shore Health Hub [4] Ward Street Precinct,
12 Creek Street, Brisbane 11‐167 Palm Springs, Ravenhall 44 Market Street, Sydney North Sydney
240 St Georges Terrace, Perth 321 Kent Street, Sydney Axxess Corporate Park,
60 & 52 Collins Street, Melbourne 80 Collins Street, Melbourne [2] Mount Waverley
Pitt & Bridge precinct, Sydney
Waterfront precinct, Brisbane
Committed $1.8bn Uncommitted $5.3bn Concept circa $2.2bn
Circa 5.9% of balance sheet FUM is allocated to development [5 ] at 30 June 2019
1. Group interest in development cost (including cost of land where purchased for development and excludes downtime and income earned through development). 3.4. Calvary Adelaide Hospital and North Shore Health Hub estimated on‐completion value.Dexus has progressed the sale of the North Shore Health Hub to HWPF, which is subject to Dexus Direct
2. 80 Collins Street, Melbourne was acquired as a fund‐through development. 5. Includes committed developments, trading and value‐add opportunities.Responsible Entity and Advisory Committee approvals and securing debt financing. Dexus Third Party Funds
19 2019 Annual Results Presentation
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Completion of 100 Mount Street, North Sydney

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96% 39.6% 4.88% 7.8%
Occupancy IRR Cap rate Yield on cost
‐ Acquired by Dexus and DWPF in April 2016 at a time when there was a lack of quality space
available in the North Sydney office market
‐ Iconic 35‐level premium office tower across 41,900 square metres
‐ A new benchmark for workplace design, sustainability features and public amenity
‐ Diversified customer base including NBN Co, Chanel, Laing O’Rourke and Victory Offices
‐ Implemented 20 smart technology initiatives and targeting a 5 star NABERS Energy rating
20 2019 Annual Results Presentation
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Core office development pipeline

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Progressing committed, uncommitted and concept projects across east coast CBDs

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Waterfront Precinct
Uncommitted project Dexus 50%, DWPF 50%
Annex – 12 Creek Street
Committed project
Dexus 50%, DWPF 50%
60 & 52 Collins Street Late 2019
Uncommitted project completion
Dexus 100% interest
Mid 2020
completion
180 Flinders Street Melbourne Pitt & Bridge Street
Uncommitted project
Committed project Dexus 100% interest Dexus 50%,
81% committed Dexus Office Partner 50% Henry Deane Place – Central precinct
21 2019 Annual Results Presentation Concept project
Dexus 25%, Dexus Office Partner 25%
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Core industrial development pipeline

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Progressing committed projects for Dexus and third party capital partners

Foundation at Truganina

Dexus 100%
Secured Coles Supermarkets Australia for a 7,300sqm warehouse facility
Development for Dunlop Flooring for a 9,100sqm distribution and office facility due for completion in September 2019
Secured Secon Freight Logistics for a 33,400sqm Build to Lease development, prior to completion in June 2019
Secured HoA across 34,800sqm of industrial facilities with an e‐commerce occupier and existing customer

11‐167 Palm Springs Road, Ravenhall

Dexus 25.5%, Dexus Australian Logistics Partner 24.5%, DWPF 50%

Stage 1 civil and infrastructure works underway delivering a circa 37 hectare industrial site
Secured Scalzo for a purpose‐built facility across 35,300sqm including manufacturing, warehousing and corporate offices
circa 34,300sqm Build to Lease development commencing August 2019

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54 Ferndell Street, South Granville

Dexus 51%, Dexus Australian Logistics Partner 49%

Achieved planning approval for a circa 54,800sqm multi‐unit development
Strong pre‐commitment interest

425‐479 Freeman Road, Richlands Dexus 51%, Dexus Australian Logistics Partner 49% ‐ Planning approval received for a circa 53,500sqm multi‐unit development

Quarry, Greystanes

Dexus, Dexus Australian Logistics Partner, Dexus Industrial Partner and Australian Industrial Partner

Estate completed early 2019, delivering >310,000sqm of premium warehouse space and 30,000sqm of office space
100% leased
Dexus achieved an annualised unlevered total property return of 12.3% from inception to 30 June 2019

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22 2019 Annual Results Presentation

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Trading business

FY20 and FY21 profits significantly de‐risked

201 Elizabeth Street, Sydney

Expected sale price: $315 million (Dexus 50% interest)[1] Trading profit[2] : circa $34 million in FY20 circa $34 million in FY21

North Shore Health Hub, Stage 1, 12 Frederick Street, St Leonards[3]

Strategy: To be sold on a fund‐through development basis to Healthcare Wholesale Property Fund (HWPF), with Dexus retaining ownership via an interest in fund Description: Stage 1 comprises a state of the art healthcare facility across 16,000 square metres with 50% of the space committed Trading profit[3] : Expected to contribute to trading profits in FY20 and FY21

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Post 30 June 2019, Dexus exchanged contracts to sell a 25% interest in 201 Elizabeth Street, Sydney for $157.5 million and entered into a put and call option to sell the remaining 25% interest in late 2020 for a further $157.5 million. Trading profits in FY21 are subject to the exercise of either option.
Pre‐tax. 3. The sale of the North Shore Health Hub is subject to Responsible Entity and Advisory Committee approvals and securing debt financing.

23 2019 Annual Results Presentation

Trading business

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Strong track record and progressed pipeline

‐ Delivered $34.7 million (net of tax) from the settl ‐ Target $35‐40 million trading profits1 (net of tax) ‐ Total of five projects1, diversified across sectors, $210‐300 million (pre‐tax) Trading properties sold and settled Trading profits realised (pre‐tax) Average unlevered project IRR Trading profit track record since FY12 Contracted trading profits 14 $319m 30%	‐ Delivered $34.7 million (net of tax) from the settl ‐ Target $35‐40 million trading profits1 (net of tax) ‐ Total of five projects1, diversified across sectors, $210‐300 million (pre‐tax) Trading properties sold and settled Trading profits realised (pre‐tax) Average unlevered project IRR Trading profit track record since FY12 Contracted trading profits 14 $319m 30%	‐ Delivered $34.7 million (net of tax) from the settl ‐ Target $35‐40 million trading profits1 (net of tax) ‐ Total of five projects1, diversified across sectors, $210‐300 million (pre‐tax) Trading properties sold and settled Trading profits realised (pre‐tax) Average unlevered project IRR Trading profit track record since FY12 Contracted trading profits 14 $319m 30%	ement of 32 Flinders Street, Melbourne in FY19 in FY20 have been earmarked to deliver trading profits of Trading profits progressed Trading profits yet to be secured	ement of 32 Flinders Street, Melbourne in FY19 in FY20 have been earmarked to deliver trading profits of Trading profits progressed Trading profits yet to be secured	ement of 32 Flinders Street, Melbourne in FY19 in FY20 have been earmarked to deliver trading profits of Trading profits progressed Trading profits yet to be secured	ement of 32 Flinders Street, Melbourne in FY19 in FY20 have been earmarked to deliver trading profits of Trading profits progressed Trading profits yet to be secured
Trading projects	Current use	Trading strategy	FY20	FY21	FY22	FY23+
201 Elizabeth Street, Sydney2 Office Rezoning and development North Shore Health Hub, 12 Frederick Street, St Leonards – Stage 13 Industrial Healthcare development Lakes Business Park South, Botany Industrial Development 436‐484 Victoria Road, Gladesville Industrial Rezoning 12 Frederick Street, St Leonards – Stage 2 Industrial Healthcare development

Including contribution from 201 Elizabeth Street, Sydney and North Shore Health Hub, 12 Frederick Street, St Leonards – Stage 1.
201 Elizabeth Street, Sydney transferred to trading book in May 2018. Post 30 June 2019, Dexus exchanged contracts to sell a 25% interest in 201 Elizabeth Street, Sydney for $157.5 million and entered into a put and call option to sell the remaining 25% interest in late 2020 for a further $157.5 million. Trading profits in FY21 are subject to the exercise of either option.
The sale of the North Shore Health Hub is subject to Responsible Entity and Advisory Committee approvals and securing debt financing.
24 2019 Annual Results Presentation

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Funds Management
25 2019 Annual Results Presentation
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Funds Management
Growth in unlisted investor base
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Diversified Funds Management platform
189% growth in FUM since FY12 AUM across 79
7 vehicles investors
$16 $16.2bn $0.1bnHWPF $0.5bnDALT
$14 $12 $10 Industrial Partner$0.2bnDexus $10.4bnDWPF Super/Pension73% Sovereign Fund 5%
$8 Dexus
$6 $4 $5.6bn Partner$2.5bnOffice $16.2bn $16.2bn Multi‐mgr
$2 Australian 13%
$‐ Industrial Partner
FY12 FY19 $0.4bn Insurance 6%
Office Industrial Retail US Industrial Healthcare Australian Mandate$2.1bn Other 3%
Attracted $9.2 billion of third party equity since FY12
26 2019 Annual Results Presentation
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Attracted new investors

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Enabling launch of new fund and acquisitions

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Dexus Australian Logistics Trust (DALT) Healthcare Wholesale Property Fund (HWPF)
‐ Circa $2 billion [1] trust seeded with assets from ‐ Attracted a major equity commitment of
Dexus’s existing portfolio $100 million from Employees Provident Fund (EPF) Malaysia
‐ Attracted GIC to take an initial 25% stake in ‐ Enabled HWPF to progress the acquisition of the
$1.4 billion core portfolio, with put and call rights North Shore Health Hub for the Fund’s portfolio [2]
over an additional 24% by June 2020
‐ GIC 49% interest in $138 million development
landbank (c.$0.5 billion on completion)
‐ Active acquisition and development mandate
Dexus Wholesale Property Fund (DWPF) Dexus Industrial Partnership
‐ DWPF undertook an equity raising to fund the ‐ Attracted global investment manager M&G Real
acquisition of an additional 25% interest in the MLC Estate as a new investor, purchasing Future Fund’s
Centre, Sydney 50% interest
‐ Offer attracted six new investors and raised ‐ Extended the Partnership’s investment period
approximately $340 million of equity ‐ Active management and core yield growth strategy
‐ A further three new investors entered the fund during
the year
1. Seeded with assets from Dexus’s existing industrial portfolio comprising $1.4 billion of core logistics properties and a $138 million development landbank (circa $0.5 billion on completion).
2. Subject to Responsible Entity and Advisory Committee approvals and securing debt financing.
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Summary
28 2019 Annual Results Presentation
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Embedded value

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Across key earnings drivers and key areas of focus

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PROPERTY Short term - Higher rents and lower incentives continuing to support asset values,
PORTFOLIO particularly in Sydney and Melbourne
$15.6 billion Medium to - Future portfolio value supported by ownership in CBDs and benefiting from the
$10.48 NTAper security [1] long term urban density and cities megatrend
DEVELOPMENT (CORE)
+
Short term - Built in organic growth in existing and new funds Organic growth and embedded
FUNDS - Demonstrated ability to attract new third party capital partners to invest value in
MANAGEMENT alongside + circa $9.3 billion
FY19 FFO Medium to - Future growth supported by the growth in pension capital fund flows megatrend, group development and
$54.6 million long term concept pipeline
populations in developed countries continue to age
+
TRADING Short term - FY20 and FY21 trading profits significantly de‐risked [3]
5 key projects
$210‐300 millionto deliver [2] of Medium to long term - Future projects are diversified across sectors
trading profits
+
CAPITAL ‐ Maintaining diverse debt sources and a strong balance sheet
MANAGEMENT
1. Net tangible asset backing.
2. Pre‐tax.
3. Post 30 June 2019, Dexus exchanged contracts to sell a 25% interest in 201 Elizabeth Street, Sydney for $157.5 million and entered into a put and call option to sell the remaining 25% interest in late 2020 for a further $157.5 million. Trading profits in FY21 are subject to the exercise of
either option. The sale of the North Shore Health Hub is subject to Responsible Entity and Advisory Committee approvals and securing debt financing.
29 2019 Annual Results Presentation
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Summary

Securing opportunities. Adding value

Successful year of securing new opportunities
Well positioned for continued success despite increased economic uncertainty
Embedded value within group development and concept pipeline
Market guidance[1] for the 12 months ending 30 June 2020 for distribution per security growth of circa 5%

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Barring unforeseen circumstances, guidance is supported by the following assumptions: Impacts of announced divestments and acquisitions; FFO per security growth of circa 3%, underlying FFO per security growth of circa 3%, underpinned by Dexus office portfolio like‐for‐like income growth of 4.5‐5.5%, Dexus industrial portfolio like‐for‐like income growth (excluding one‐offs) of 3‐4%, management operations FFO of $55‐60 million, cost of debt of mid‐3%; trading profits of $35‐40 million net of tax; maintenance capex, cash incentives, leasing costs and rent free incentives of $170‐185 million; and excluding any further transactions.

30 2019 Annual Results Presentation

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Appendices
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Delivering sustained value
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Track record of delivering superior risk‐adjusted returns
Dexus distribution per security (cents) [1]
cps 6.6% CAGR
since FY12
60
50.2
50 45.47 47.8
43.51
41.04
40 36.00 37.56
32.10
30
20
10
0
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
1. Adjusted for the one‐for‐six security consolidation completed in FY15. Compound annual growth rate (CAGR) is calculated over seven years.
32 2019 Annual Results Appendices
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Dexus today

$31.8 billion total funds under management

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Dexus portfolio Funds Management portfolio
Healthcare
>$0.1bn
Healthcare
<$0.1bn Office Office
$13.2bn $8.6bn
Retail
$15.6bn $5.1bn $16.2bn
Industrial
$2.3bn
Industrial
$2.3bn
33 2019 Annual Results Appendices
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Financial results

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Reconciliation to statutory profit

Reference	Item	30 June 2019	30 June 2018
		$m	$m
Statutory AIFRS net profit after tax		1,281.0	1,728.9
Investment property and inventory	(Gains)/losses from sales of investment property	(1.8)	0.9
	Fair value gain on investment properties	(773.1)	(1,201.8)
Financial instruments	Fair value (gain)/loss on the mark‐to‐market of derivatives	(109.4)	77.5
Incentives and rent straight‐lining	Amortisation of cash and fit out incentives	45.2	51.2
	Amortisation of lease fees	14.9	12.9
	Amortisation of rent‐free incentives	68.5	61.8
	Rent straight‐lining	(11.8)	(24.5)
Tax	Non‐FFO tax expense	15.7	7.3
Other unrealised or one‐off items1	Other unrealised or one‐off items	152.3	(60.9)
Funds From Operations (FFO)		681.5	653.3
Maintenance and leasing capex	Maintenance capital expenditure	(63.2)	(72.9)
	Cash incentives and leasing costs paid	(37.6)	(33.2)
	Rent free incentives	(63.5)	(61.7)
Adjusted Funds From Operations (AFFO)		517.2	485.5
Distribution		529.0	486.4
AFFO Payout ratio		98.7%2	100.2%
1. FY19 other unrealised or one‐off items includes $127.8 million of unrealised fair value losses on interest bearing liabilities, $6.1 million amortisation of intangible assets, $15.3 million coupon income, rental guarantees
received and other, and $3.1 million of transaction costs.

FY19 distribution payout ratio has been adjusted to exclude the $18.3 million of distributions paid on new securities issued through the Institutional Placement and Security Purchase Plan announced on 2 May 2019, which were fully entitled to the distribution for the six months ending 30 June 2019. The distribution payout ratio was 102.3% including this amount.
34 2019 Annual Results Appendices

Financial results

Management operations profit

	Property	Funds	Development	Management
FY19 ($m)	Management	Management	Management	Operations
Revenue	68.6	64.1	9.1	141.8
Operating expenses	(51.2)	(24.3)	(11.7)1	87.2
FY19 netprofit	17.4	39.8	(2.6)	54.6
FY19 margin	25%	62%	(29)%	39%
FY18 margin	24%	62%	10%	40%

Includes $3.5m of bidding costs for development opportunity. 35 2019 Annual Results Appendices

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Financial results

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Cash flow reconciliation

Financial results Cash flow reconciliation
		30 June 2019	30 June 2018
		$m	$m
Cash flow from operating activities		493.1	609.7
add back:	payment for inventory acquisition and capex	54.4	138.3
less:	cost of sale of inventory	(47.4)	(80.8)
less:	adjustment on sale to joint venture	‐	(12.5)
less:	tax on trading profits not yet paid	(14.8)	(15.7)
add back:	capitalised interest	24.4	13.1
less:	adjustments for equity accounted distributions	74.3	(82.2)
add back:	other working capital movements	45.1	34.8
add back:	transaction costs	3.1	‐
Adjusted cash flow from operating activities		632.2	604.7
Rent free income		63.5	61.7
Depreciation and amortisation (including deferred borrowing costs)		(14.2)	(13.1)
FFO		681.5	653.3
Less: payments from maintenance capex and incentives1		(164.3)	(167.8)
AFFO		517.2	485.5
Less:gross distribution		(529.0)	(486.4)
Cash surplus/(deficit)		(11.8)	(0.9)
Add: distributions paid on new securities2		18.3	‐
Cash surplus/(deficit) adjusted for distributionspaid on new securities		6.5	(0.9)

Includes cash and fitout incentives, lease fees and rent free incentives. 2. Distributions paid on new securities issued through the institutional placement announced on 2 May 2019, which were fully entitled to the distribution for the six months ending 30 June 2019.

36 2019 Annual Results Appendices

Financial results

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Interest reconciliation

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30 June 2019 30 June 2018
$m $m
Total statutory finance costs [1] 151.9 128.5
Add: unrealised interest rate swap MTM gain/(loss) [2] (34.9) 2.4
Add: finance costs attributable to investments accounted for using the equity method [3] 2.4 4.9
Net finance costs for FFO [1] 119.4 135.8
Add: interest capitalised [3] 29.2 13.1
Gross finance costs for cost of debt purpose 148.6 148.9
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FY19 excludes interest income of $2.3 million (FY18: $1.4 million).
Net fair value loss of interest rate swap of $46.4 million (FY18: $12.9 million) per note 4 of the Financial Statements includes realised interest rate swap expense of $11.5 million (FY18: $42.7 million) and unrealised interest rate swap MTM loss of $34.9 million (FY18: $2.4 million).
Includes finance costs associated with development properties held in investments accounted for using the equity method.
37 2019 Annual Results Appendices

Financial results

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Change in net tangible assets and revaluations

$m $ps Opening net tangible assets1 (1 Jul 18) 9,806.0 $9.64 Revaluation of real estate 773.1 $0.76 Retained earnings2 152.5 $0.15 Amortisation of tenant incentives3 (116.8) $(0.12) Fair value and other movements4 880.1 $0.05 Closing net tangible assets1 (30 Jun 19) 11,494.9 $10.48	Investment portfolio Valuation change $m Weighted average cap rate % of portfolio
	Dexus Office portfolio 594.6 5.15% 85% Dexus Industrial portfolio 170.3 5.92% 15% Total Dexus portfolio5 773.1 5.26%

Net tangible assets exclude $73.2 million deferred tax liability relating to management rights. 2. Represents FY19 FFO less distributions.
Includes rent straight‐lining.
Primarily includes fair value movements of derivatives and interest bearing liabilities, deferred tax, gain from sale of investment properties, movement in reserves and other. 5. Includes healthcare property revaluation gain of $8.2 million.

38 2019 Annual Results Appendices

Financial results

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Direct property portfolio book value movements

Financial results Direct property portfolio book	value movements
	Office1	Industrial1	Dexus total1	Trading assets2
	$m	$m	$m	(inventory) $m
Opening direct property	11,038.4	2245.1	13,283.5	544.7
Lease incentives 3	82.9	18.2	101.1	3.7
Maintenance capex	54.4	8.8	63.2	0.5
Acquisitions	1,494.1	232.0	1,726.1	‐
Developments 4	299.7	90.1	389.8	57.6
Disposals 5	(265.2)	(416.9)	(682.1)	(144.6)
Revaluations 6	594.6	170.3	764.9	‐
Amortisation	(113.3)	(15.3)	(128.6)	(4.5)
Rent straightlining	6.9	4.9	11.8	0.2
Closing balance at the end of the period	13,192.5	2,337.2	15,529.7	457.6

Includes Dexus’s share of equity accounted investments and excludes healthcare. 2. Trading assets are included in Office, Industrial and Dexus total amounts.
Includes rent free incentives.
Includes capitalised interest. 5. At book value and includes internal transfers from investment property. 6. Excludes healthcare.

39 2019 Annual Results Appendices

Capital management FY19 position

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Debt maturity profile [1]
$m Key metrics 30 June 2019 30 June 2018
1,000 Total debt [2] $4,067m $3,360m
800 Headroom (approximately) [3] $1.0bn $0.9bn
600
Gearing (look‐through) [4] 24.0% 24.1%
400
Covenant gearing (covenant [5] <55%) 23.3% 23.7%
200
Interest cover (covenant [5] >2.0x) 5.4x [6] 4.9x
‐
Priority debt (covenant [5] <30%) 0% 0%
DCM CPA MTN Bank HWPF Bank
1. Includes $425 million Exchangeable Notes based on investor put date in FY24. 4. Adjusted for cash and debt in equity accounted investments.
2. Total debt does not include debt in equity accounted investments. 5. As per public bond covenants.
3. Undrawn facilities plus cash. 6. Look‐through interest cover is 5.1x.
40 2019 Annual Results Appendices
FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39
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Capital management
Interest rate hedging profile
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Hedge maturity profile
Hedging profile 30 June 2019 30 June 2018
$m
Average amount of debt hedged [1] 74% 71%
3,500 4.0%
3,000 3.5% Average amount of debt hedged excluding caps 55% 58%
2,500 3.0% Weighted average interest rate on hedged debt [2] 2.7% 2.9%
2,000
Cost of debt [3] 4.0% 4.2%
2.5%
1,500
2.0% Weighted average maturity of hedges 5.6 years 4.8 years
1,000
500 1.5%
‐ 1.0%
FY20 FY21 FY22 FY23 FY24
Net fixed debt Interest Rate Caps Interest Rate Swaps Weighted Average Hedge Rate (excl margin)
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Average amount hedged for the period (including caps). 2. Including fixed rate debt (without credit margin). 3. Weighted average for the period, inclusive of fees and margins on a drawn basis.

41 2019 Annual Results Appendices

Capital management Debt facilities[1]

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Facility limit A$m Drawn A$m Maturity Currency Bilateral bank debt 440 70 FY20 A$ 160 140 FY21 A$ 250 78 FY22 A$ 200 157 FY23 A$ 350 115 FY24 A$ 300 150 FY25 A$ Commercial paper2 100 100 FY23 A$ Medium term notes 160 160 FY23 A$ 185 185 FY26 A$ 130 130 FY27 A$ 30 30 FY39 A$ US senior notes (144A)3 305 305 FY21 US$ US senior notes (USPP)3 Series 1 291 291 Jul‐23 ‐ Jul‐28 US$ Series 2 225 225 Feb‐24 ‐ Feb‐27 US$ Series 3 286 286 Dec‐24 ‐ Dec‐26 US$ Series 4 (A$) 100 100 Jun‐28 A$ Series 5 503 503 Nov‐29 ‐ Nov‐32 US$ Series 5 (A$) 150 150 Nov‐29 ‐ Nov‐32 A$ Series 6 (A$) 75 75 Oct‐38 A$ Exchangeable notes 425 425 FY244 A$ Sub total 4,665 3,675	Facility limit A$m Drawn A$m
	Sub total 4,665 3,675
	Currency translation and fair value adjustments 440 440 Deferred borrowing costs (18) (18) Exchangeable Notes adjustments (30) (30)
	Total interest bearing liabilities 5,057 4,067
	Bank guarantee utilised (69) Cash 30
	Headroom including cash 951
	1. Does not include debt facilities in equity accounted investments: $74.8 million (December 2019), $1.2 million (January 2020), $201.6 million (August 2020), $42.8 million (August 2022) and $11.5 million (December 2022). 2. Maturity date of commercial paper standby facility. 3. 144A and USPP amount shown at the cross‐currency swap contract rate. 4. Based on investor put date in FY24.

42 2019 Annual Results Appendices

43	Property portfolio Office and Industrial key metrics 2019 Annual Results Appendices Key metrics Office Industrial Amount of space leased1 189,459sqm2 324,765sqm No. of leasing transactions 2672 87 Occupancy by income 98.0% 97.0% Occupancy by area 97.8% 98.8% Average incentives 13.4% 3 11.7% 4 No. of effective deals 93 38 Weighted Average Lease Expiry (WALE) 4.4 years 4.7 years Retention 59% 76% Like‐for‐like income growth Face 3.5% Face 5.5% Effective 3.4% Effective 8.0%5 1. Including Heads of Agreement. 2. Excluding development leasing of 52,815sqm across 40 leasing transactions. 3. Gross basis excluding development leasing. 4. Net basis. 5. Excluding one‐off income is +2.5%.
	Key metrics
	Amount of space leased1
	No. of leasing transactions
	Occupancy by income
	Occupancy by area
	Average incentives
	No. of effective deals
	Weighted Average Lease Expiry (WALE)
	Retention
	Like‐for‐like income growth
	2019 Annual Results Appendices 1. Including Heads of Agreement. 2. Excluding development leasing of 52,815sqm across 40 leasing transa 3. Gross basis excluding development leasing. 4. Net basis. 5. Excluding one‐off income is +2.5%.

Including Heads of Agreement. 2. Excluding development leasing of 52,815sqm across 40 leasing transactions. 3. Gross basis excluding development leasing. 4. Net basis. 5. Excluding one‐off income is +2.5%.

43 2019 Annual Results Appendices

Property portfolio

Office portfolio diversification

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Office by asset type Office by location
Prime Grade WA5% ACT1% CBD/FringeSydney 56%
Premium Grade 88%
31%
QLD
13%
$13.2bn $13.2bn
VIC
16%
Development &
other 7%
NSW
A‐Grade 57% Sydney 65%
Suburban
B‐Grade 5% 9%
44 2019 Annual Results Appendices
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Property portfolio

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Office lease expiry profiles by region

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20% Sydney CBD Income16.2% 17.2%Area 40% Brisbane CBD Income Area
15% 13.7% 12.7% 13.8% 14.1% 30% 28.5% 28.8%
10.9% 10.6%
10% 6.8% 6.6% 20% 10.4% 13.4% 14.7%
5% 1.7% 1.3% 10% 1.8% 1.8% 3.2% 3.7% 6.4% 6.0% 6.2%
0% 0%
Available FY20 FY21 FY22 FY23 FY24 Available FY20 FY21 FY22 FY23 FY24
30% Sydney Suburban 23.4% 24.5% Income Area 30% Melbourne CBD 25.9% 26.0% Income Area
20% 17.6% 16.7% 20% 13.7% 13.0%
10% 6.8% 8.7% 11.7% 11.8% 4.5% 3.8% 5.5% 4.7% 10% 0.7% 0.7% 8.8% 3.6% 8.0% 8.3% 7.7% 8.6%
0% Available FY20 FY21 FY22 FY23 FY24 0% Available FY20 FY21 FY22 FY23 FY24
Perth CBD Income Area
Dexus Office [1] Value ($m) Cap rate(%) Yield(% [2] ) 20%15% 16.2% 13.0%
Sydney CBD 7,227 5.0% 4.8% 10.9% 9.9%
Sydney Suburban 787 5.9% 5.2% 10%
Melbourne CBD 1,424 5.3% 4.9% 4.6% 5.4%
Brisbane CBDPerth CBD 1,470278 5.4%6.4% 6.2%7.1% 5%0% 1.3% 1.3% 0.4% 0.5% 0.0% 0.0%
Available FY20 FY21 FY22 FY23 FY24
1. Includes stabilised properties only. Excludes Canberra office properties.
2. Passing FFO yield based on annualised Property Funds From Operations for the month of July 2019.
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45 2019 Annual Results Appendices

Property portfolio Office top 10 customers

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Diversity of office customers (by income)
Office customers [1] S&P rating % of income [2] 100% Other
Pharmaceutical wholesaling
Wilson Parking Not rated 3.4% Scientific and Technical Services
90% Electricity, gas, water and waste service
Commonwealth of Australia AAA 3.1% Employment Placement & Recruitment Svces
80% Superannuation
Rio Tinto A 2.7% Other public administration
Healthcare and social assistance
State of Victoria AAA 2.4% 70% Oil and Gas
Engineering Consultancy Services
Deloitte Services Not rated 1.5% 60% Retailing (non‐food)
Investment banks
Commonwealth Bank of Australia AA‐ 1.3% Construction services
50% Food Retailing
John Holland Not rated 1.0% Insurance
40% Metal ore mining
BDO Services Not rated 0.9% Information media & telecommunications
Federal Government
Worley Not rated 0.9% 30% Car park services
Accounting services
Shell AA‐ 0.9% 20% Other finance
State Government
10% Banks & building societes
Rental & Real Estate services
Business Services Other
0% Legal services
1. Total Dexus portfolio includes executed Heads of Agreement at 30 June 2019.
2. Annualised income is based on 30 June 2019 (for leases which have already commenced) or first month post
lease commencement (for leases which have not yet commenced).
46 2019 Annual Results Appendices
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Property portfolio
Industrial portfolio diversification
Industrial by asset type Industrial by location
SA
Industrial 1%
estate 45% QLD
10%
Land 6%
Data centre
4% $2.3bn $2.3bn
VIC
36% NSW
53%
Distribution centre 19% Business park26%
47 2019 Annual Results Appendices
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Property portfolio
Industrial lease expiry profile [1]
25%
20.1%
20%
15%
12.0%
10.5%
10% 8.2%
6.8%
5%
3.0%
0%
Available FY20 FY21 FY22 FY23 FY24
FY20 Key expiries FY21 Key expiries FY22 Key expiries FY23 Key expiries
Axxess Corp Park (1.9%) Axxess Corporate Park (2.1%) Axxess Corp Park (4.5%) 250 Forest Rd, Lara (2.5%)
Vardys Rd, Marayong (1.5%) The Mill, Alexandria (0.9%) 12‐18 Distribution Dr (2.4%) The Mill, Alexandria (1.8%)
145‐151 Arthur Street (0.9%) 1 Foundation Pl, (0.7%) 2 Alspec Place (1.2%) Axxess Corp Park (0.9%)
1. By industrial income.
48 2019 Annual Results Appendices
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Property portfolio Industrial lease expiry profiles by region

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20% Sydney 18.2% Income17.0% Area 35% Brisbane 33.1% Income Area
15.2%
15% 13.7% 28%
10% 8.0% 10.4% 10.2% 9.8% 10.7% 9.3% 21% 20.0% 17.2% 14.5%
14% 11.0% 9.4%
5% 1.4% 0.8% 7% 0.5% 0.5% ‐ ‐ ‐ ‐
0% 0%
Available FY20 FY21 FY22 FY23 FY24 Available FY20 FY21 FY22 FY23 FY24
30% Melbourne 24.1% 24.2% Income Area 60% Adelaide 56.8% 51.3% Income Area
20% 12.9% 14.4% 40% 30.1% 37.2%
10%0% 5.7% 1.8% 5.5% 3.5% 7.2% 4.9% 3.3% 3.8% 20%0% ‐ ‐ 13.1% 11.5% ‐ ‐ ‐ ‐
Available FY20 FY21 FY22 FY23 FY24 Available FY20 FY21 FY22 FY23 FY24
Value Cap rate Yield [2]
Dexus Industrial [1] ($m) (%) (%)
Sydney 1,095 5.4% 5.7%
Melbourne 711 6.3% 6.4%
Brisbane 175 6.2% 5.3%
Adelaide 22 10.8% 11.8%
1. Includes stabilised properties only.
2. Passing FFO yield based on annualised property Funds From Operations for the month of July 2019.
49 2019 Annual Results Appendices
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Property portfolio Industrial top 10 customers

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Diversity of industrial customers (by income)
Industrial customers [1] % of income [2] 100% Other
Printing
Coles 0.6% 90% Not‐for‐profitLegal services
Autosports Group 0.6% 80% State GovernmentOther public administration
Reece 0.5% Car park services
70% Banks & building societes
IBM Australia 0.5% Rental & Real Estate servicesOther finance
AWH Pty Ltd 0.4% 60% Education and trainingBusiness Services Other
Symbion Health 0.3% 50% Food RetailingScientific and Technical Services
Visy 0.3% 40% Postal and courier pick‐up and delivery servicesPharmaceutical wholesaling
Simon National Carriers 0.3% Road, rail, water, air and space transport
30% Construction services
Fedex 0.3% Information media and telecommunications
Healthcare and social assistance
Wesfarmers 0.3% 20% Transport support services
Other manufacturing
10% Food and beverage manufacturing
Warehousing and storage services
General wholesaling
1. Total Dexus portfolio includes executed Heads of Agreement at 30 June 2019. 0% Retailing (non‐food)
2. Annualised income is based on 30 June 2019 (for leases which have already commenced) or first
month post lease commencement (for leases which have not yet commenced).
50 2019 Annual Results Appendices
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Property portfolio
Office and industrial sustainability metrics
609 Office Energy and GHG Emissions Intensity 1 859 Office Water Intensity Dexus office NABERS Energy NABERS Water
portfolio average rating average rating
134 654 Jun 15 4.7 3.8
Jun 16 4.8 3.7
329 Jun 17 4.8 3.6
Jun 18 4.9 3.6
69 Jun 19 5.0 3.6
46.0% energy intensity reduction
48.6% emissions intensity reduction 23.9% water intensity reduction Listed Office
NABERS Energy ratings
6 stars
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 19,489sqm 5.5 stars
Industrial Energy and GHG Emissions Intensity 1 Industrial Water Intensity 2 3% 303,141sqm45%
34.7 389 1 stars
1,275sqm
8.7 313 0.2%
2.5 stars
9,579sqm 5 star
1.4% Office portfolio
15.1 3 stars average
2,570sqm
3.1 0.4%
56.4% energy intensity reduction
63.8% emissions intensity reduction 24.4% water intensity increase 4 stars
39,186sqm
6% 4.5 stars
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 90,511sqm 5 stars
1. GHG = greenhouse gas. 14% 203,748sqm
2. Water consumption for industrial properties is primarily under the control of tenants. 30%
51 2019 Annual Results Appendices
Energy Intensity (MJ/sqm) Water Intensity (L/sqm)
Scope 1 & 2 GHG Emissions kg CO2‐e/sqm
Energy Intensity (MJ/sqm) Water Intensity (L/sqm)
Scope 1 & 2 GHG Emissions kg CO2‐e/sqm
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Property portfolio

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Dexus completed developments – core hold

Pipeline		Building area1	Project cost2	Yield on cost3	Leased	Final completion	Third Party
		sqm	$m	%	%		partner interest
							%
Office	100 Mount Street, North Sydney, NSW	41,900	233	7.8%	96%	May 2019	50%
Industrial	2‐6 Dolerite Way, Greystanes, NSW	33,900	31	7.5%	100%	Mar 2019	50%
	47 & 53 Foundation Road, Truganina, NSW	33,400	32	7.8%	100%	Jun 2019
City retail	1 Farrer Place, Sydney, NSW	400	5	3.2%	92%	Mar 2019
Total developments completed		109,600	301

At 100%. 2. Dexus interest in development cost (including cost of land where purchased for development). 3. Yield on cost calculation includes cost of land. 52 2019 Annual Results Appendices

Property portfolio

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Dexus committed developments, fund‐throughs & portfolio capex – core hold

Pipeline Building area1 sqm Project cost est.2 $m Est. com	cost to pletion $m Yield on cost3 % Leased % Completion due Third Party partner interest %
Office 240 St Georges Terrace, Perth, WA 46,900 193 180 Flinders Street, Melbourne, VIC 20,200 146 Annex, 12 Creek Street, Brisbane, QLD 7,300 31 80 Collins Street, Melbourne, VIC (office) 4 43,000 174 Total office 117,400 544	68 6‐7% 93% Late 2019 93 6‐7% 81% Mid 2020 19 7‐8% 0% Late 2019 50% 156 Mid 2020 25% 336
Industrial 3 Clearwater Place, Truganina, VIC 7,300 32 380 Dohertys Road, Truganina, VIC 9,100 12 12 Felstead Drive, Truganina, VIC 45,400 52 58 Foundation Road, Truganina, VIC 8,200 11 Lot 15, 11‐167 Palm Springs, Ravenhall, VIC 69,700 21 Total industrial 139,700 128	27 c.6% 100% Mid 2020 3 6‐7% 100% Late 2019 41 6‐7% 59% Mid 2020 8 c.6% 100% Mid 2020 20 6‐7% 51% Late 2020 75% 99
City retail / other 175 Pitt Street, Sydney, NSW 5,300 33 44 Market Street, Sydney, NSW 1,400 23 MLC Centre, 19 Martin Place, Sydney, NSW 12,800 85 321 Kent Street, Sydney, NSW 4,800 21 80 Collins Street, Melbourne, VIC (retail & hotel)4 12,400 59 Total city retail/ other 36,700 221	6 6‐7% 86% Mid 2019 50% 4 c.6% 100% Mid 2019 101 5‐6% 42% Late 2021 50% 4 c.6% 100% Mid 2019 46 Mid 2020 25% 161
Total developments committed 293,800 893	596

	Dexus portfolio capital expenditure5 FY19 FY20E
	Total capital expenditure $164.3m $170‐185m

At 100%.
Dexus interest in development cost (including cost of land where purchased for development and excludes downtime and income earned through development).
Target yield on cost calculation includes cost of land, downtime and income earned through development. 4. The vendor will manage the development of the South Tower, Retail Podium and Hotel. Development costs, including certain third‐party claims associated with the development, will be funded by the vendor with Dexus’s contribution effectively limited to the agreed purchase price, subject to certain limitations on claims. Dexus is responsible for leasing from settlement of the Acquisition on 2 May 2019. Refer to the 80 Collins Street acquisition announcement dated 2 May 2019 for further detail.
Includes maintenance capex, cash incentives, leasing costs and rent free incentives.

53 2019 Annual Results Appendices

Property portfolio

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Dexus uncommitted developments – core hold

Pipeline		Building area1	Project cost est.2	Est. yield on est. project	Third Party
		sqm	$m	cost3	partner interest
				%	%
Office	Waterfront Precinct Masterplan, Brisbane, QLD (Office)	66,900	c. 450		50%
	140 George Street, Parramatta, NSW	43,600	c. 200		50%
	60 & 52 Collins Street, Melbourne, VIC	27,400	c. 550
	Pitt & Bridge precinct, Sydney, NSW	121,100	c. 1,300		50%
Total office		259,000	c. 2,500	5‐6%
Industrial	11‐167 Palm Springs, Ravenhall, VIC	325,900	c. 100		75%
	425‐479 Freeman Road, Richlands, QLD	53,500	c. 50		49%
	54 Ferndell Street, South Granville, NSW	54,800	c. 50		49%
Total industrial		434,200	c. 200	6‐8%
Total uncommitted		693,200	c. 2,700

At 100%.
Dexus interest in development cost (including cost of land where purchased for development and excludes downtime and income earned through development).
Target yield on cost calculation includes cost of land, downtime and income earned through development.
54 2019 Annual Results Appendices

Transactions[1]

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A year of significant activity

Transactions1 A year of significant activity
Dexus acquisitions Purchase price $m Interest Settlement	Funds Management acquisitions Purchase price$m Interest Settlement
54 Ferndell Street, South Granville, NSW3 $31.4 51% 13‐Sep‐18 11‐167 Palm Springs Road, Ravenhall, VIC2 $25.5 25.50% 10‐Dec‐18 60 Collins Street, Melbourne, VIC $160.0 100% 31‐Oct‐18 Dexus Australian Logistics portfolio (DALT)4 (T:1) $1,092.0 75% 10‐Dec‐18 MLC Centre, 19 Martin Place, Sydney, NSW $400.0 50% 1‐Apr‐19 425‐479 Freeman Road, Richlands, QLD3 $13.5 51% 15‐Apr‐19 80 Collins Street, Melbourne, VIC $1,107.1 75% 9‐May‐19 52 Collins Street, Melbourne, VIC $70.0 100% Jul‐19 3 Spring, 58 Pitt and 60 Pitt Streets, Sydney, NSW5 $177.0 50% Aug 18‐Jul 22 10 Light Street, Fortitude Valley, QLD $2.8 100% 23‐Aug‐19 Total acquisitions $3,079.3	11‐167 Palm Springs Road, Ravenhall, VIC2 $74.5 74.50% 10‐Dec‐18 54 Ferndell Street, South Granville, NSW3 $30.1 49% 13‐Sep‐18 1035‐1051 Nudgee Road & 10 Buchanan Road Banyo, QLD $34.3 100% 20‐Nov‐18 Dexus Australian Logistics portfolio (DALT)4 (T:1) $364.0 25% 10‐Dec‐18 MLC Centre, 19 Martin Place, Sydney, NSW $400.0 50% 1‐Apr‐19 80 Collins Street, Melbourne, VIC $369.0 25% 9‐May‐19 425‐479 Freeman Road, Richlands, QLD3 $13.0 49% 15‐Apr‐19 3 Spring, 58 Pitt and 60 Pitt Streets, Sydney, NSW5 $177.0 50% Aug 18‐Jul 22 Total acquisitions $1,461.9

	Funds Management divestments Sale price $m Interest Settlement
Dexus divestments Sale price $m Interest Settlement
	Sturt Mall, Wagga Wagga, NSW $73.0 100% 2 Aug 2018 Finlay Crisp Centre, Canberra, ACT $31.0 50% Jul 2020 Total divestments $104.0
Land parcels, Truganina, VIC $6.2 100% Jul/Aug 2018 32 Flinders Street, Melbourne $87.1 100% Aug 2018 Land parcels, Truganina, VIC $3.6 100% Nov 2018 & Jan 2019 Dexus Australian Logistics portfolio (DALT)4(T:1) $1,456.0 100% 10 Dec 2018 11 Talavera Road, Macquarie Park, NSW $231.2 100% 21 Jun 2019 Finlay Crisp Centre, Canberra, ACT $31.0 50% Jul 2020 201 Elizabeth Street, Sydney, NSW6 $315.0 50% by Nov 19 & by Oct 20 Total divestments $2,130.1
	1. Transactions include properties in property synopsis and exclude sundry properties. 2. Forms part of the DALT transaction, DXS interest 25.5%, DWPF interest 50% and Dexus Australian Logistics Partner interest 24.5%. Ravenhall Tranche 2 settlement is expected August 2019. 3. Forms part of the DALT transaction with Dexus Australian Logistics Partner taking a 49% interest. 4. Tranche 1 now includes 131 Mica Street, Carole Park, QLD and 14 Felstead Drive, Truganina, VIC. Dexus Australian Logistics Partner is expected to increase its interest in the seed portfolio to 49% by June 2020, through Tranche 2 of the DALT transaction. Dexus’s interest in the seed core portfolio would reduce to 51%. 5. 3 Spring and 58 Pitt Street properties acquired on a deferred settlement basis. 6. Post 30 June 2019, Dexus exchanged contracts to sell a 25% interest in 201 Elizabeth Street, Sydney for $157.5 million and entered into

Post 30 June 2019, Dexus exchanged contracts to sell a 25% interest in 201 Elizabeth Street, Sydney for $157.5 million and entered into a put and call option to sell the remaining 25% interest in late 2020. Sale price of $315 million is subject to the exercise of either option for the remaining 25% interest for $157.5 million.

55 2019 Annual Results Appendices

Funds management Development pipeline

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$3.5 billion
Funds management development [1] pipeline
$879 million $283 million $2.6 billion Uncommitted projects focused
primarily on office and industrial
Total committed projects Remaining spend on committed projects Total uncommitted projects
properties
Project cost on uncommitted projects in Funds Management business
Uncommitted projects FY20 FY21 FY22+
Office ‐ 3 properties $2.0bn
Retail ‐ 2 properties $0.2bn
Industrial ‐ 3 properties $0.4bn
Project cost on uncommitted Funds management projects $2.6bn
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Third party funds’ or partners’ share of development spend and including Dexus third party funds’ or partners’ share of Westfield redevelopments and estimated on‐completion value for Calvary Adelaide Hospital.

56 2019 Annual Results Appendices

Market outlook

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Dexus’s CBD office strategy leverages powerful urban growth trend

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‐ Inner city areas and CBDs benefit from faster employment
growth than other regions NSW Employment growth by region
‐ CBDs benefit from a virtuous cycle of employment and new 150 Index State Greater City Inner City
infrastructure investment (e.g. light rail, metro rail)
‐ Trend to inner‐city living and a ‘live/work/play’ ethos 140
‐ Businesses value CBD locations for attracting and retaining 130
talented staff
120
‐ CBDs foster ideas, collaboration and productivity
110
100
90
Nov‐08 Nov‐10 Nov‐12 Nov‐14 Nov‐16 Nov‐18
Source: ABS, Dexus Research.
57 2019 Annual Results Appendices
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Market outlook

Australia’s growing infrastructure pipeline to support growth

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Transport infrastructure investment – work done [1]
$bn NSW VIC QLD WA Transport
40 infrastructure
planned [2]
35 $bn
NSW 91
30
VIC 72
25 QLD 47
WA 23
20
15
10
5
0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
1. Source ACIF, includes road, railways, bridges, harbours.
2. Source DAE Investment Monitor, includes transport projects under construction, under consideration or possible.
58 2019 Annual Results Appendices
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Market outlook

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Office demand should benefit from employment growth
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Demand moderating in markets short of space Employment growth is positive Business confidence improved post election
Quarterly net absorption
(‘000sqm) %pa Index
150 8% 15
100 6%
10
4%
50
2%
0 5
0%
‐50
‐2%
0
‐100
‐4%
‐150Jun‐09 Jun‐11 Jun‐13 Jun‐15 Jun‐17 Jun‐19 ‐6% ‐5
May‐09 May‐11 May‐13 May‐15 May‐17 May‐19 Jun‐14 Jun‐15 Jun‐16 Jun‐17 Jun‐18 Jun‐19
Syd CBD Melb CBD Bris CBD Perth CBD White Collar Total Employment Business Confidence Index
Source: Dexus Research, JLL Research, NAB, ABS.
59 2019 Annual Results Appendices
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Market outlook

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Sydney office rents in perspective
‐ Companies have steadily increased the density of workers per square metre of office space – so rent paid
goes further now than in the past
$/sqm Gross effective rents in Sydney CBD
1,050
Nominal rent
950
850
Rents adjusted for
750 workspace density
650
Adjusted for inflation and
workspace density
550
450
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: Dexus Research, CBRE, JLL Research City of Sydney, DAE.
60 2019 Annual Results Appendices
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Market outlook

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Sydney office: well positioned given low vacancy

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Sydney CBD waterfall chart ‐ FY19 to FY22
FY19 vacancy well below Total completions only just above average levels of Moderate withdrawals Demand just above the Vacancy to rise to 6.4% in
the long term average of 105,400sqm pa average of 47,180sqm p.a. FY21 before falling to 5.4%
7.9% after a soft year in FY20 in FY22
‘000sqm
600 +7.1% ‐ 2.5%
500 ‐125,000sqm of withdrawals ‐ 3.1%
400 357,000sqm of supply of net absorption158,000sqm =5.4%
300
4.1%
200
281,000sqm
100 208,000sqmof vacancy of vacancy
0
Vacancy FY19 New supply FY19‐FY22 Withdrawals FY19‐FY22 Net absorption FY19‐FY22 Vacancy FY22
Source: Dexus Research, long‐term average based on 20 year average as % of stock.
Difference due to rounding.
61 2019 Annual Results Appendices
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Market outlook

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Sydney CBD supply landscape for major office projects

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150 Available
Withdrawal
100 Pre‐committed
50
0
‐50
‐100
FY20 FY21 FY22 FY23 FY24 FY25 FY26
Source: Dexus Research, Company reports, Agent reports.
62 2019 Annual Results Appendices
‘000sqm
10‐14 Hunter 426‐430 Kent 66 King Street 388 George Street Sixty Martin Place 1 Sussex Street 51‐55 Pitt Street 320 Pitt Street Korean Air House 275 George Street Henry Davis York Building Sub Station No. 164 55 Market Street Wynyard Place 320 Pitt Street Quay Quarter Poly Centre Bligh House 233 Castlereagh Street 338 Pitt Street ANZAC House Fortuna House Vitalwork Building Sydney Cove AMP Building 4‐6 York Street David Jones 284‐292 Pitt Street Circular Quay Tower Sydney Cove AMP Building 256 Pitt (Metro Station North) 55 Pitt Street Martin Place Station Precinct One Shelley EVT Darling Park Tower 4 338 Pitt Street Central Barangaroo One Shelley
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Market outlook

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Melbourne CBD supply landscape for major office projects

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80
Withdrawal
60
40 Available
20 Pre‐committed
0
‐20
‐40
‐60
FY20 FY21 FY22 FY23 FY24
Source: Dexus Research, Company reports, Agent reports.
63 2019 Annual Results Appendices
Market outlook
Sydney CBD office
‐ Vacancy below average at 4.1% Sydney CBD office market At 30 June 2019
‐ Market well placed to handle a period of economic uncertainty Total net lettable area 5.02 million sqm
Prime vacancy average 4.1%
‘000sqm Sydney CBD office market Dexus Sydney CBD exposure [1]
250 12%
200 9% Net lettable area 672,618sqm
150 Number of properties 19
6%
100
50 3% % of portfolio by value 56%
‐ 0% Occupancy by area 97.6%
‐50
‐100 ‐3% Occupancy by income 96.1%
‐150 ‐6% Weighted average lease expiry 4.3 years
‐200 ‐9%
FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23
Net Absorption Net Supply Vacancy (RHS)
Source: JLL Research actual and Dexus Research forecast.
1. Includes stabilised properties only.
64 2019 Annual Results Appendices
‘000sqm
Collins Arch VIC Police HQ Wesley Place 477 Collins Street 85‐91 Spring Street CBW Tower 2 405 Bourke Street 12 Riverside Quay CBW Tower 2 100 Queen Street 180 Flinders Street 383 La Trobe Street 500 Bourke Street 1000 LaTrobe German Club 55 King Street Melbourne Central 435 Bourke Street 500 Bourke Street
80 Collins Street South Tower Two Melbourne Quarter Wesley Place ‐ Stage 2 Victoria University Precinct Charter Hall Collins St Development Stage 1 Melbourne Quarter Tower 371‐383 La Trobe Street
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Market outlook

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Melbourne CBD office

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‐ Vacancy low at 3.8%, with prime vacancy just 2.5% Melbourne CBD office market At 30 June 2019
‐ Market well‐positioned to absorb supply given strong employment growth Total net lettable area 4.79 million sqm
Prime vacancy average 2.5%
‘000sqm Melbourne CBD office market Dexus Melbourne CBD exposure [1]
250 12.5% Net lettable area 248,779sqm
200 10.0% Number of properties 6
150 7.5% % of portfolio by value 16.0%
100 5.0% Occupancy by area 99.2%
50 2.5% Occupancy by income 99.3%
‐ 0.0% Weighted average lease expiry 4.5 years
‐50 ‐2.5%
FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23
Net Absorption Net Supply Vacancy (RHS)
Source: JLL Research actual and Dexus Research forecast.
1. Includes stabilised properties only.
65 2019 Annual Results Appendices
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Market outlook

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Brisbane CBD office

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‐ Prime vacancy has almost halved to 7.7% in the past three years
‐ Net absorption well above average in FY19
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‐ Brisbane CBD office market At 30 June 2019
‐ Net absorption well above average in FY19 Total net lettable area 2.20 million sqm
Prime vacancy average 7.7%
‘000sqm Brisbane CBD office market
Dexus Brisbane CBD exposure [1]
150 18%
Net lettable area 245,208sqm
100 12%
Number of properties 6
50 6% % of portfolio by value 12.8%
Occupancy by area 98.1%
‐ 0%
Occupancy by income 98.1%
‐50 ‐6%
Weighted average lease expiry 3.9 years
‐100 ‐12%
FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23
Net Absorption Net Supply Vacancy (RHS)
Source: JLL Research actual and Dexus Research forecast.
1. Includes stabilised properties only.
66 2019 Annual Results Appendices
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Market outlook

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Perth CBD office
‐ Demand improving with almost 50,000 sqm net absorption in FY19 Perth CBD office market At 30 June 2019
‐ Rents and values growing Total net lettable area 1.82 million sqm
Prime vacancy average 14.8%
‘000sqm Perth CBD office market
300 30% Dexus Perth CBD exposure [1]
250 25% Net lettable area 73,631sqm
200 20% Number of properties 2
150 15%
% of portfolio by value 5.4%
100 10%
Occupancy by area 98.7%
50 5%
‐ 0% Occupancy by income 98.7%
‐50 ‐5% Weighted average lease expiry 5.8 years
‐100 ‐10%
FY09 FY11 FY13 FY15 FY17 FY19 FY21 FY23
Net Absorption Net Supply Vacancy (RHS)
Source: JLL Research actual and Dexus Research forecast.
1. Includes stabilised properties only.
67 2019 Annual Results Appendices
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Exchange rate and securities used in statutory accounts

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		30 June 2018	31 Dec 2018	30 June 2019
Closing rates for Statement of Financial Position	USD	0.7391	0.7058	0.7013
Average rates for Statement of Comprehensive Income	USD	0.7753	0.7247	0.7156

Post consolidation equivalent amounts		12 mths to	6 mths to	12 mths to
		30 June 2018	31 Dec 2018	30 June 2019
Average weighted number of securities1		1,017,299,246	1,017,196,877	1,028,577,220
Closing number of securities		1,017,196,877	1,017,196,877	1,096,857,665

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1. Used to calculate underlying FFO, FFO and AFFO per security.
68 2019 Annual Results Appendices
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Glossary

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Distribution payout policy: Policy is to distribute in line with free cash flow.
Funds From Operations (FFO): FFO is in line with Property Council of Australia definition and comprises net profit/loss after tax attributable to stapled security holders calculated in
accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark to market impacts, fair
value movements of interest bearing liabilities, amortisation of tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments,
deferred tax expense/benefit, transaction costs, amortisation of intangible assets, rental guarantees and coupon income
Adjusted FFO (AFFO): AFFO is calculated in line with the Property Council of Australia definition and comprises PCA FFO and adjusted for: maintenance capex, incentives
(including rent free incentives) given to tenants during the period and other items which have not been adjusted in determining FFO.
Gearing: Gearing is represented by Interest Bearing Liabilities (excluding deferred borrowing costs and including the currency gains and losses of cross currency
swaps) less cash divided by Total Tangible Assets (excluding derivatives and deferred tax assets) less cash. Covenant gearing is the same definition but not
adjusted for cash.
Gearing (look through): Represents Gearing defined above adjusted to include debt in equity accounted investments.
Portfolio value: Unless otherwise stated, portfolio value is represented by investment properties, inventories and investments accounted for using the equity method, and
excludes cash and other assets.
Weighted Average A measure in years of the average term to expiry of in‐place rent. Includes vacancies.
Lease Expiry (WALE):
69 2019 Annual Results Appendices
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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.
70 2019 Annual Results Presentation

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AI assistant

DEXUS — Investor Presentation 2019

64807_rns_2019-08-13_5784f253-51b4-4bc5-91fc-034810178bdf.pdf

Dexus (ASX:DXS)

ASX release

14 August 2019

2019 Annual results presentation

For further information please contact:

About Dexus

Download the Dexus IR app

Annual Results Presentation

Agenda

Megatrends

Active year of transaction activity

Key earnings drivers and valuations

Delivered a strong financial result

Balance sheet strength maintained

Office portfolio performance

Customer focus

Office market outlook

Sydney

Melbourne

Brisbane

Perth

Implications to Dexus

Industrial portfolio metrics

Completion of 100 Mount Street, North Sydney

Core office development pipeline

Core industrial development pipeline

Foundation at Truganina

11‐167 Palm Springs Road, Ravenhall

54 Ferndell Street, South Granville

Quarry, Greystanes

Trading business

FY20 and FY21 profits significantly de‐risked

201 Elizabeth Street, Sydney

North Shore Health Hub, Stage 1, 12 Frederick Street, St Leonards[3]

Trading business

Strong track record and progressed pipeline

Attracted new investors

Embedded value

Summary

Dexus today

Financial results

Financial results

Financial results

Financial results

Financial results

Financial results

Property portfolio

Property portfolio

Property portfolio

Property portfolio

Property portfolio

Transactions[1]

Market outlook

Market outlook

Market outlook

Market outlook

Market outlook

Market outlook

Market outlook

Market outlook

Melbourne CBD office

Market outlook

Brisbane CBD office

Market outlook

Exchange rate and securities used in statutory accounts

Glossary

Important information

More from DEXUS

DEXUS Investor Presentation 2019