DEXUS — Investor Presentation 2021

Aug 16, 2021

Dexus (ASX: DXS) ASX release

17 August 2021

2021 Annual results presentation and property synopsis

Dexus releases its 2021 Annual Results Presentation.

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

The 2021 property synopsis excel workbook is also available at www.dexus.com

Authorised by the Board of Dexus Funds Management Limited

For further information please contact:

Investors

Rowena Causley Senior Manager, Investor Relations +61 2 9017 1390 +61 416 122 383 rowena.causley@dexus.com

Media Louise Murray Senior Manager, Corporate Communications +61 2 9017 1446 +61 403 260 754 louise.murray@dexus.com

About Dexus

Dexus (ASX: DXS) is one of Australia's leading fully integrated real estate groups, managing a high-quality Australian property portfolio valued at \$42.5 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 \$17.5 billion of office, industrial and healthcare properties, and investments. We manage a further \$25.0 billion of office, retail, industrial and healthcare properties for third party clients. The group's \$14.6 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. Sustainability is integrated across our business, and our sustainability approach is the lens we use to manage emerging ESG risks and opportunities for all our stakeholders. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange and is supported by more than 30,000 investors from 23 countries. With over 35 years of expertise in property investment, funds management, asset management and development, we have a proven track record in capital and risk management and delivering superior risk-adjusted returns for investors. www.dexus.com

Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS) Level 25, 264 George Street, Sydney NSW 2000

Annual Results Presentation 2021

2021 Annual Results Presentation

17 August 2021

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

Acknowledgement of Country

As an owner, manager and developer of real estate across Australia, Dexus acknowledges the Traditional Custodians of the lands on which we operate.

We recognise their ongoing connection to land, waters and community, and pay our respects to First Nations Elders past, present and emerging.

Artist: Deborah Taylor, a Bundjalung and Gumbaynggirr woman Artwork: Down in the Valley Artwork photographer: Sharon Hickey Artwork description: This is a representation of the Clarence River and surrounding mountain ranges. The circle imagery

represents layers of people, rocks, minerals, animals, plants, trees and the living areas down in the valley.

Agenda

The Line
Overview	Darren Steinberg, CEO
Financial results	Alison Harrop, CFO
Funds management	Deborah Coakley, EGM Funds Management
Office portfolio	Kevin George, EGM Office
Industrial portfolio	Stewart Hutcheon, EGM Industrial, Retail & Healthcare
Investments and Developments	Ross Du Vernet, CIO
Summary	Darren Steinberg, CEO
Questions

$\overline{1}$ $1000$

$1 -$ and $-$

$\overline{3}$

Delivering in a complex operating environment

• Growing and diversifying the funds management business
• FUM grew by \$9.5 billion in FY21 $\qquad \qquad -$
• Maintaining high occupancy levels through strong leasing, reinforcing the resilience of the portfolio
• Undertaking \$6.4 billion of property transactions across the group, $\rightarrow$ enhancing portfolio resilience and supporting growth in funds
• Progressing the development pipeline

dexus

FY21 highlights Key achievements across the group

Excluding assets with no common areas under Dexus's operational control.

1. Includes acquisition of Capital Square Tower 1 at 98 Mounts Bay Road in Perth which occurred on 22 July 2021. Dexus paid \$339m for a 49% equity stake in the holding trust which owns the tower, which has been externally valued at \$970m as at 30 June 2021 and has \$450m of senior secured debt. A portion of Dexus's contribution will be utilised by the holding trust as a new receivable loan to the co-owner (Dexus's share is circa \$77m). Also includes post balance date industrial acquisitions of Kemps Creek and

2021, 22 Business Park Drive, Ravenhall which is expected to settle in September 2021, and Grosvenor Place in Sydney which is expected to settle in the first half of FY22.

between FY22-FY23. Includes divestments of 60 Miller Street, North Sydney which settled on 3 August

Including development leasing of 11,068sqm for office leasing, and 244,586sqm for industrial leasing. Dexus 2021 Annual Results Presentation

Prior to circa \$2bn of AMP Capital Diversified Property Fund (ADPF) unitholder redemptions.

Adjusted for cash and debt in equity accounted investments.

Corporate simplification was implemented on 6 July 2021.

Return on Contributed Equity.

6.

$\overline{5}$

Strategy Revised strategic objectives to guide next stage of business evolution

Actions have been navigating us toward a more capital efficient, multi-sector real estate platform $\rightarrow$

Purpose	To create spaces where people thrive
Vision		To be globally recognised as Australia's leading real estate company
Strategy	To deliver superior risk-adjusted returns for investors from high-quality real estate in Australia's major cities
	Sustainable income streams	Real estate investment partner of choice
	Investing in income streams that provide resilience through the cycle	Expanding and diversifying the funds management business
Strategic objectives	Maximising income via active leasing and evolving product and service offerings	Executing on investment mandates of existing funds
	Investing in quality Australian real estate and developments	Launching new products to meet investor demands
	Supporting growth in third party funds management vehicles	Maintaining track record for strong governance and provision of liquidity

Delivering on strategic objectives

New acquisitions and growth in funds management platform

FY21 FUM is prior to circa \$2bn of redemptions to existing ADPF unitholders and pro forma for the acquisition of APN Property Group which was approved on 27 July 2021 as well as settlement of MDAP's 33.3% interest in 1 Bligh Street, Sydney which occurred on 8 July 2021.

1. Prior to circa \$2bn of redemptions to existing ADPF unitholders.

Environmental, Social & Governance highlights

Achievements across Sustainability Approach value creation outcomes

Calculated using a location-based method.

$\mathsf{R}$ Dexus 2021 Annual Results Presentation

Key earnings drivers and valuations
Valuation uplifts reinforce quality of portfolio

Key earnings drivers				Property portfolio valuations
Earnings driver	FY21 result
Property AFFO 1 of \$625.2 million Property			30 Jun 2021 value 5	Valuation movement 6	Capitalisation rate 12-month movement
portfolio	+2.3% office LFL income growth 2 $+3.7\%$ industrial LFL income growth 3	Total \$17.1bn portfolio		\$584.0m 3.5%	4.91% $\blacksquare$ 14bps
Funds Management	Management Operations FFO of \$57.7 million $-$ comprising earnings from funds management, property and development management	Office portfolio	\$13.9bn	\$189.5m $\blacksquare$ Cap rate 1.4%	Rental growth 4.91% $\downarrow$ 6bps compression
Trading	Trading profits of $$50.4$ million 4 secured from North Shore Health Hub, the second tranche of 201 Elizabeth Street, Sydney and the first tranche of the Truganina assets and Lakes Business Park South	Industrial portfolio	\$2.9bn	11% \$376.8m 14.9% $\blacksquare$ Cap rate	4.92% Rental growth $\blacksquare$ 74bps compression

• AFFO contribution is calculated before finance costs, group corporate costs and tax. Property AFFO is $\overline{1}$ . equal to Property FFO of \$780.5m less total portfolio AFFO capex of \$155.3m.
• Office LFL income was +0.9% including the impact of rent relief and provision for expected credit losses. $2.$ $\overline{3}$ .
• Industrial LFL income was +4.5% including the impact of rent relief and provision for expected credit losses. 6.
• $4.$ Post tax. $5.$ Total portfolio FUM of \$17.1bn made up of office portfolio \$13.9bn, industrial portfolio \$2.9bn and healthcare portfolio \$0.3bn and is before the acquisition of APN Property Group which was approved on 27 July 2021 and MDAP's 33.3% interest in 1 Bligh Street, Sydney which occurred on 8 July 2021.
• Includes healthcare property revaluation gain of \$17.7m and excludes leased assets revaluation movement of \$(0.6m).

FY21 financial results

Achieved 3% distribution growth despite challenging market and divestments

	FY21 \$m\$	FY20 \$m	Change %
Office property FFO	658.3	671.4	2.0%
Industrial property FFO	122.2	124.2	1.6%
Total property FFO	780.5	795.6	1.9%
Management operations 1	57.7	71.5	19.3%
Group corporate	(35.4)	(33.0)	7.3%
Net finance costs	(130.5)	(127.4)	2.4%
Other 2	(5.7)	(11.8)	51.7%
Underlying FFO3	666.6	694.9	4.1%
Trading profits (post tax)	50.4	35.3	42.8%
FFO	717.0	730.2	1.8%
Adjusted Funds from Operations (AFFO)	561.7	550.5	2.0%
Distribution payout (% AFFO)	99.9%	100.0%
Distribution	561.0	550.3	1.9%

Management operations FFO includes development management fees.

Other FFO includes non-trading related tax expense, healthcare and investment income and other miscellaneous items

Underlying FFO excludes trading profits post tax.

• Office property FFO reduced primarily due to the impact of divestments, alongside rent relief and provisions associated with COVID-19. This was partly offset by income from recently completed developments

• Industrial property FFO reduced due to divestments, partly offset by income from acquisitions and recently completed developments

Management operations reduced as costs normalised following non-recurring cost reduction measures in FY20. The FY21 result was also impacted by transition of the Australian mandate and the continued impacts of COVID-19 on revenue, offset by new funds and other initiatives which are expected to drive strong growth into FY22

$\rightarrow$ > Other income movement driven by reduction in underlying tax expense

Key per security metrics	FY21	FY20	Change
Underlying FFO per security 3	$61.5$ cents	$63.5$ cents	$\frac{1}{2}$ 3.1%
FFO per security	$66.1$ cents	$66.7$ cents	$-0.9%$
AFFO per security	51.8 cents	50.3 cents	$-3.0%$
Distribution per security	51.8 cents	50.3 cents	$-30%$
	FY21	FY20	Change
Net Tangible Assets (NTA) per security	\$11.42	\$10.86	5.1%

COVID-19 impacts Rent collections of 98.1% for FY21

FY21 Rent collections

• Strong cash collection while ensuring the viability of small business customer base

• Reached in principle agreement across circa 96% of rent relief requests received¹

• Continue to work with our customers on rent relief requests

FY21 direct COVID-19 AFFO impacts³

Rent collections 2	Office	Industrial	Total
Total FY21	97.9%	99 O%	98.1%
Total July-21	97.4%	98.9%	97.6%

Direct COVID-19 AFFO impacts 3	FY21 Total	FY20 Total	FY21 Est. Rent Waivers	FY20 Est. Rent Waivers	FY21 Provisions	FY20 Provisions
Office	$-$18.6m$	$-$ \$20.1m	$-$ \$4.6m 4	$-$15.0m$	$-$14.0m$	$-$ \$5.1m
Industrial	\$1.6m	$-$ \$5.9m	\$2.1m 5	$-$ \$4.2m	$-$0.5m$	$-$1.7m$
Total 6	$-$17.0m$	$-$ \$26.0m	$-$ \$2.5m	$-$19.2m$	$-$14.5m$	$-$ \$6.8m

Reflects agreements for the Code of Conduct period to 4 August 2021. FY21 rent relief impacts are estimates as at 30 June 2021.

Dexus share.

Estimated rent waivers and provisions for the 12 months to 30 June. In addition, rent deferrals of \$3.3m, which do not directly impact FFO or AFFO, have been agreed or estimated during the 12 months to 30 June 2021.

Cumulative rent waivers within AFFO as at 30 June 2021 is \$19.6m, of which \$4.6m was recognised in FY21. $\Delta$

Cumulative rent waivers within AFFO as at 30 June 2021 is \$2.1m, of which a \$2.1m benefit was recognised in FY21 in connection with the reversal of part of the FY20 adjustment. 5.

The FY21 statutory impact is \$25.9m. The difference between the statutory impact and AFFO impact of \$8.9m relates to a benefit recognised in FY21 in connection with the reversal of part of the FY20 adjustment for 6. estimated rent waivers for tenants that were not in arrears

Strong financial position
Capacity to fund growth opportunities

• Gearing of 26.7%^1,2 remains below the 30-40% target range

• Purchased circa 15.6 million securities via the on-market securities buy-back program in FY21

• Simplified corporate structure approved by Securityholders and recommended by the Board of DXFM prior to 30 June 2021, with implementation occurring on 6 July 2021

Key metrics	30 June 2021	30 June 2020
Gearing (look-through) 1	26.7% 2	24.3%3
Headroom 4	\$1.1bn	\$1.6bn
Cost of debt 5	3.2%	3.4%
Duration of debt	6.2 years	6.9 years
Hedged debt (incl caps) 6	81%	78%
S&P/Moody's credit rating	$A - A3$	$A - / A3$

Adjusted for cash and debt in equity accounted investments.

• Excluding the impact of the divestments of 60 Miller Street, North Sydney which settled on 3 August 2021 and Grosvenor Place in Sydney which is expected to settle in the first half of FY22.
• Proforma gearing adjusted for cash and debt in equity accounted investments. Look-through gearing at 30 June 2020 was 26.3%.
• Undrawn facilities plus cash. 4.

13

Weighted average for the year, inclusive of fees and margins on a drawn basis.

Average for the year. Hedged debt (excluding caps) was 62% for the 12 months to 30 June 2020 and 68% for the 12 months to 30 June 2021. 6.

Dexus 2021 Annual Results Presentation

Funds management

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17 August 2021

$\frac{1}{\sqrt{2}}\sum_{i=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\sum_{j=1}^n\frac{1}{\sqrt{2}}\$

Funds management Delivering for our third party capital partners

• High standard of corporate governance

• Strong track record of performance, with:

• DWPF outperforming over 3, 5, 7 and 10 years
• DHPF delivering a 18.1% one-year return
• All other established vehicles¹ outperforming benchmarks since inception

• Strong track record of providing liquidity and raising capital, with DWPF:

• Facilitating \$1.4 billion of transfers and redemptions for its investors over the past four years
• Raising \$2.3 billion of gross new equity over the same time period

• FY21 initiatives indicate continued strength of investor support:

• Raised over \$1.1 billion equity in FY21 across two new funds as well as DWPF and DHPF
• Secured approval for the merger of DWPF and ADPF, enhancing the investment proposition for both sets of unitholders
• Diversified the platform's capital pool via establishment and acquisition of new channels into the private investor market (DREP1 and APN Property Group)

dexus

Includes vehicles established prior to 30 June 2019.

Prior to circa \$2bn of redemptions to existing ADPF unitholders and pro forma for the acquisition of APN Property Group which was approved on 27 July 2021 as well as settlement of MDAP's 33.3% interest in 1 Bligh Street, Sydney which occurred on 8 July 2021.

Funds management
Investor diversification and sentiment

Investor insights

• Attractiveness of Australia as an investment destination

• Significant interest from offshore investors

• Significant interest in healthcare and alternatives

• Continued and increasing importance of ESG as an investment hurdle

• Australian super fund industry consolidation driving a move to direct/JV investing

Prior to circa \$2bn of redemptions to existing ADPF unitholders and pro forma for the acquisition of APN Property Group which was approved on 27 July 2021 as well as settlement of MDAP's 33.3% interest in 1 Bligh Street, Sydney which occurred on 8 July 2021

Funds management platform enhancement
Executed growth and diversification initiatives

FY21 initiatives

Prior to circa \$2bn of redemptions to existing ADPF unitholders and pro forma for the acquisition of APN Property Group which was approved on 27 July 2021 as well as settlement of MDAP's 33.3% interest in 1 Bligh Street, Sydney which occurred on 8 July 2021.

Includes Bethesda Clinic which settled post-period end, and Spring Hill Medical Centre and Herston Car Park which are expected to settle in the coming months.

Funds management

Diversified management business across 20 vehicles

All figures as at 30 June 2021 unless otherwise stated.

$\mathrm{\tilde{\triangledown}}$ DWPF and ADPF merged portfolio prior to circa \$2bn of redemptions to existing ADPF unitholders.

Includes Dexus ownership interest and value of assets under development. Includes Bethesda Clinic which settled $2.$ post period end, and Spring Hill Medical Centre and Herston Car Park expected to settle in the coming months.

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Office demand indicators positive prior to lockdown

Expected to recover any lost ground quickly

White collar payroll jobs faster to recover after past lockdowns

Source: Westpac, ABS Index Nov-10=100, JLL Research (*Sydney CBD, Melbourne CBD, Brisbane CBD, Perth CBD).

Net office take-up had turned positive in the 4 major CBDs*

Dexus Sydney portfolio leasing recovery after past lockdown

17 August 2021

Office customer insights

Positive indicators for leasing prior to latest lockdowns

Dexus annual office customer survey insights

Customer NPS Scores - Dexus office portfolio

Source: 2021 Dexus Customer Survey.

• At Dexus, we utilise Net Promoter Scores (NPS) to allow us to compare performance against leading, global customer brands. We continue to demonstrate year-onyear improvement in our NPS

• Dexus's NPS score is comparable to leading global organisations

• Trend towards mobile working accelerated by COVID-19

• The office will retain its important role as a hub for collaboration, social interaction, career development and culture

• Organisations will embrace a 'hybrid or blended working' model a combination of core office space, flexible office options and virtual working

Dexus's product offering to meet increased flexibility
Expect demand for more collaboration spaces

Dominant portfolio offering. Customer demand expected to remain, however, customer requirements for flexibility will continue to evolve over time.

Fully fitted out suites with shorter lease terms. Targeted at reducing the pain points associated with real estate occupation for SMEs.

Flexible spaces $6$ months $+$

SuiteX provides high quality workspace that enables companies to remain agile while having access to turn-key solutions to support growth.

Dexus Place provides meeting, video conferencing and training facilities that facilitate cost effective interaction and collaboration across physical and virtual environments.

We continue to work with our customers on the future of workspace

Workspace solutions from 1 hour to 10 years

22

Office portfolio performance

High quality portfolio attracting solid leasing across key CBDs

Occupancy impacted by Melbourne where leasing has been impacted by extended lockdowns, which offset occupancy increases at 25 Martin Place (MLC Centre), Australia Square and 60 Castlereagh Street in Sydney

Potential for incentives to decline into early CY22 in Sydney and Premium grade Melbourne assets, albeit the latest lockdowns could slow the rate of improvement

Dexus office portfolio vs PCA/MSCI office index at 31 March 2021³

Excludes development leasing of 11,068sgm across 30 transactions.

Excludes rent relief and provision for expected credit losses. Including these impacts: Effective +0.9% and Face +1.3%.

Period to 31 March 2021 which reflects the latest available PCA/MSCI Australia Annual Property Index 3.

Staggered expiry profile and diversified tenant base

Dexus office portfolio well placed

Excludes 123 Albert Street, Brisbane which has been removed from the stabilised portfolio as it nears development commencement. Including 123 Albert Street, FY22 expiries would be 12.8% and office portfolio occupancy would be 95.3%.

Leasing observations
Well positioned for flight to quality and centralisation

Prime grade assets represent 94% of Dexus office portfolio¹

Net absorption of space by grade in the past 5 years (4 major CBDs^*)

Source: JLL Research (*Sydney CBD, Melbourne CBD, Brisbane CBD, Perth CBD), company information.

1. Prime grade buildings represented 94% of the office portfolio excluding assets held for sale and including development-affected assets.

Centralisation into Sydney CBD

Assets in Dexus's Sydney CBD portfolio where tenants have been centralising from fringe locations:

Industrial portfolio

$\overline{\phantom{0}}$

CALL

Industrial portfolio performance

Exceptional year of leasing activity

Includes development leasing of 244,586sam.

Excludes rent relief and provision for expected credit losses. Including these impacts: Effective +4.5% and Face +2.2%.

Period to 31 March 2021 which reflects the latest available PCA/MSCI Australia Annual Property Index.

■ Dexus industrial portfolio ■ Dexus Group industrial portfolio ■ PCA/MSCI industrial index

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Investments

$111.$

Transactions Redeploying capital into higher return opportunities

\$3.2 billion group divestments

60 Miller Street¹ Sale proceeds \$273m

Grosvenor Place¹ Sale proceeds \$925m

Sale proceeds \$285m

60 Miller Street, North Sydney settled on 3 August 2021 and Grosvenor Place, Sydney
is expected to settle in the first half of FY22.

\$3.2 billion² group property acquisitions, plus ADPF, APN and AUHPT transactions

Includes acquisition of Capital Square Tower 1 at 98 Mounts Bay Road in Perth which occurred on 22 July 2021. Dexus paid \$339m for a 49% equity stake in the holding trust which
owns the tower, which has been externally val holding trust as a new receivable loan to the co-owner (Dexus's share is circa \$77m). Also includes post balance date industrial acquisitions of Kemps Creek and McPhee portfolio which are subject to put and call options, which if exercised, are expected to settle between FY22-FY23. Includes divestments of 60 Miller Street, North Sydney which settled on 3 August 2021, 22 Business Park Drive, Ravenhall which is expected to settle in September 2021, and Grosvenor Place in Sydney which is expected to settle in the first half of FY22.

Developments
\$14.6 billion pipeline includes expanded city-shaping pipeline

Group share in project cost (including cost of land where purchased for development and excludes downtime and income earned through development). $\mathbb{1}$ .

Developments
Remainder of \$14.6 billion pipeline is diversified across sectors

plus circa \$1.6 billion opportunities from recent platform initiatives

Includes projects from the merger of DWPF and ADPF.
Project cost for committed developments and trading projects as a proportion of balance sheet FUM at 30 June 2021.

Consistent delivery of trading profits over time

Replenishment of pipeline underway

Delivered \$50.4 million of FY21 trading profits (post tax) across four trading projects

• Three new opportunities within existing portfolio identified to replenish the pipeline

• Secured trading profits for FY22 of \$25-30 million (pre tax)¹

			Key	√ Secured Contracted Unsecured
Trading projects	Trading strategy	FY21	FY22	FY23+
Truganina (Laverton) properties 2, 3	Development
Botany Quarter (Lakes Business Park South), Botany 3	Development
436-484 Victoria Road, Gladesville 4	Rezoning
22 Business Park Drive, Ravenhall 5	Repositioning
12 Frederick Street, St Leonards - Stage 2	Industrial development
Other identified opportunities (Three projects)	Mixed use, Office

Focus on activating 12 Frederick Street, St Leonards Stage 2 development and replenishing the pipeline

Track record	FY15	FY16	FY17	FY18	FY19	FY20	FY21
Post tax profit	\$42.6m	\$63.3m	\$47.2m	\$36.6m	\$34.7m	\$35.3m	\$50.4m
Post tax guidance 1	\$40m	\$60m	\$45-50m	\$35-40m	\$35-40m	\$35-40m	N/A

1. Including contribution from Truganina properties and Lakes Business Park South, Botany

as well as 436-484 Victoria Road, Gladesville and 22 Business Park Drive, Ravenhall.

1. Share of Truganina (Laverton) lots which sit in inventory.

During FY21, Dexus contracted to sell six trading assets to DALT, which realised \$19.8m of trading profits (pre-tax) in FY21 and is expected to realise circa \$16m in FY22 (in the 3. event the options are exercised). Dexus settled on tranche 1 of Truganina and Lakes Business Park South in October and December 2020, respectively. Tranche 2 is expected to settle in the first half of FY22.

Dexus settled on the sale of 436-484 Victoria Road, Gladesville on 9 August 2021.

On 13 August 2021, Dexus entered into a put and call option arrangement to sell 22 Business Park Drive, Ravenhall, with settlement expected in September 2021. -5.

Investment strategy

Delivering enhanced returns from core Australian real estate

Summary

$\overline{\mathbf{r}}$ W

Investment in Dexus

Provides access to fully integrated real estate platform

Funds From Operations (FFO) is calculated before finance costs, aroup corporate costs and other (including tax).

Stabilised assets only. Excluding assets held for sale and development-affected assets

Look-through gearing, adjusted for cash and debt in equity accounted investments, excluding the impact of the divestments of 60 Miller Street, North Sydney which settled on 3 August 2021 and Grosvenor Place in Sydney which 3.

Includes APN Property Group funds platform 4.

Summary Well positioned for uncertain operating environment

• The continuing cycle of lockdowns will have an impact on business and consumer confidence, and we are preparing for this environment
• Demonstrated ability to capitalise on opportunities while also being able to $\rightarrow$ address challenges
• Ability to deliver long-term performance beyond the recovery is a function of : $\rightarrow$
• our scale and capability across key real estate sectors
• our funds management business which provides a capital efficient way to increase our $\qquad \qquad$ exposure to growth sectors
• our substantial city-shaping development pipeline $-$
• Based on current expectations relating to COVID-19 impacts and barring unforeseen circumstances, Dexus expects to deliver distribution per security growth of not less than 2% for the 12 months ended 30 June 2022

Track record of generating distributions

cents per security

Appendices

Dexus today
\$42.5 billion¹ - total funds under management

uaust 20

Proforma for the acquisition of APN Property Group which was approved on 27 July 2021 as well as the settlement of MDAP's 33.3% interest in 1 Bligh Street, Sydney which occurred on 8 July 2021.

ment of the discussion of redemptions to existing ADPF unitholders and proforma for the acquisition of APN Property Group which was
Approved on 27 July 2021 as well as settlement of MDAP's 33.3% interest in 1 Bligh Street, 2.

Financial results Reconciliation to statutory profit

Reference	Item	30 June 2021 Sm	30 June 2020 $\mathsf{Sm}$
Statutory AIFRS net profit after tax		1,138.4	$972.7^{3}$
Investment property and inventory	(Gains)/losses from sales of investment property	(6.0)	(0.1)
	Fair value gain on investment properties	(583.4)	(612.4)
Financial instruments	Fair value (gain)/loss on the mark-to-market of derivatives	102.4	2.5
Incentives and rent straight-lining	Amortisation of cash and fit out incentives	59.2	59.0
	Amortisation of lease fees	14.0	14.6
	Amortisation of rent-free incentives	79.9	74.3
	Rent straight-lining	1.6	(20.4)
Tax	Non-FFO tax expense	3.2	3.3
Other unrealised or one-off items 1	Other unrealised or one-off items	(92.3)	236.7
Funds From Operations (FFO)		717.0	730.2
Maintenance and leasing capex	Maintenance capital expenditure	(72.0)	(59.1)
	Cash incentives and leasing costs paid	(29.9)	(41.9)
	Rent free incentives 2	(53.4)	(78.7)
Adjusted Funds From Operations (AFFO)		561.7	550.5
Distribution		561.0	550.3
AFFO Payout ratio		99.9%	100.0%

1. FY21 other unrealised or one-off items includes \$15.2m of unrealised fair value gains on interest bearing liabilities, \$4.7m of impairment reversal on inventory assets, offset by \$11.6m transaction costs and one-off significant items including \$11.2m IFRIC SaaS customisation expenses, \$2.2m
   amortisation of intangible assets and \$13.8m rental guarantees, coupon income

2. As at 30 June 2021, cumulative estimated rent waivers within rent free incentives is \$2.9m for tenants not in arrears, of which an \$8.9m benefit was recognised in FY21 in connection with the reversal of part of the FY20 adjustment.

3. Includes a prior year \$10.3m (post tax) restatement for IFRIC SaaS customisation expenses.

40 Dexus 2021 Annual Results Presentation

Financial result Management operations profit

$FY21$ (\$m)	Property Management	Funds Management	Development Management	Management Operations
Revenue	68.0	73.2	16.1	157.3
Operating expenses	(56.5)	(28.1)	(15.0)	(99.6)
FY21 net profit	11.5	45.1	1.1	57.7
FY21 margin	17%	62%	7%	37%
FY20 margin	27%	64%	22%	43%

Financial results Cash flow reconciliation

		30 June 2021 \$m	30 June 2020 2 \$m
Cash flow from operating activities		999.3	714.1
add back:	payment for inventory acquisition and capex	86.7	87.1
less:	cost of sale of inventory	(244.6)	(225.3)
less:	tax on trading profits not yet paid	(21.6)	(15.2)
add back:	capitalised interest	1.8	9.5
less:	adjustments for equity accounted distributions	(217.0)	40.6
add back:	other working capital movements	61.6	53.2
add back:	transaction costs	10.3	1.1
Adjusted cash flow from operating activities		676.5	665.1
Rent free income		53.4	78.7
Depreciation and amortisation (including deferred borrowing costs)		(12.9)	(13.6)
FFO		717.0	730.2
Less: payments from maintenance capex and incentives 1		(155.3)	(179.7)
AFFO		561.7	550.5
Less: gross distribution		(561.0)	(550.3)
Cash surplus/(deficit)		0.7	0.2

1. Includes cash and fitout incentives, lease fees and rent-free incentives. As at 30 June 2021, cumulative estimated rent waivers within rent free incentives is \$2.9m for tenants not in arrears, of which an \$8.9m benefit was recognised in FY21 in connection with the reversal of part of the FY20 adjustment.

2. FY20 restated for IFRIC SaaS customisation expenses.

Financial results Interest reconciliation

	30 June 2021 \$m	30 June 2020 \$m
Total statutory finance costs	131.7	139.7
Less: exchangeable note amortisation	(4.0)	(3.9)
Less: finance costs attributable to investments accounted for using the equity method 1	(7.9)	(4.3)
Less: AASB 16 interest expense and debt modification	12.5	(2.6)
Net finance costs for FFO 2	132.3	128.9
Add: interest capitalised	15.7	18.7
Gross finance costs for cost of debt purpose	148.0	147.6

Includes finance costs associated with properties held in investments accounted for using the equity method.
Excludes interest income of \$1.8m (FY20: \$1.5m).

$2.$

Financial result

Change in net tangible assets and revaluations

	$\mathsf{sm}$	\$ps
Opening net tangible assets 1 (1 Jul 20)	11,850.8	10.86
Revaluation of real estate	583.4	0.54
Retained earnings 2	156.0	0.14
Amortisation of tenant incentives 3	(154.4)	(0.14)
Fair value and other movements 4	(155.6)	0.02
Closing net tangible assets 1 (30 Jun 21)	12,280.2	\$11.42

Investment portfolio	Valuation change $\mathsf{Sm}$	Weighted average cap rate	$%$ of portfolio
Dexus Office portfolio	189.5	491%	80%
Dexus Industrial portfolio	376.8	4.92%	17%
Total Dexus portfolio5	584.0	4.91%	100%

Net tangible assets exclude \$76.6m deferred tax liability relating to management rights.

Includes \$135.8m cost associated with funding Dexus's securities buyback, which had a 3.9 cent accretive impact on NTA on a per security basis. Also includes fair 4.

value movements of derivatives and interest-bearing liabilities, deferred tax, which has been able of investment properties, movement in reserves and other.
Includes healthcare property revaluation gain of \$17.7m and exclu 5.

Represents FY21 FFO less distributions. $\overline{2}$ .

$\overline{3}$ . Includes rent straight-lining.

Financial results

Direct property portfolio book value movements

	Office 1 \$m	Industrial 1 \$m	Healthcare 1 \$m	Dexus total 1 \$m	Trading assets 2 (inventory) \$m
Opening direct property	14,171.2	2,233.2	139.7	16,544.1	335.8
Lease incentives 5	79.9	12.4	0.2	92.5	1.0
Maintenance capex	62.5	9.6	$\overline{\phantom{a}}$	72.1	0.2
Acquisitions	92.7	252.0	64.4	409.1	9.6
Developments 4	279.0	121.8	59.5	460.3	10.5
Disposals 5	(840.0)	(91.4)	$\overline{\phantom{m}}$	(931.4)	(183.1)
Revaluations 6	189.5	381.5	17.7	588.7	4.7
Amortisation	(138.9)	(14.3)	$\overline{\phantom{m}}$	(153.2)	(1.2)
Rent straight lining	(0.6)	(1.2)	0.2	(1.6)	0.7
Closing balance at the end of the period	13,895.3	2,903.6	281.7	17,080.6	178.2

Includes Dexus's share of equity accounted investments and excludes leased assets.
Trading assets are included in Office, Industrial and Dexus total amounts.
Includes rent free incentives.
Includes capitalised interest.

• $\overline{3}$
• 1. $5.$

nouses capturings interest.
At book value and includes internal transfers to and from investment property.
Industrial and trading assets (inventory) revaluations include \$4.7m of impairment reversals. 6.

45 Dexus 2021 Annual Results Presentation

Capital management
FY21 position

Includes \$425m Exchangeable Notes based on investor put date in FY24.

• Total debt does not include debt in equity accounted investments. $\overline{2}$ .
• 1. Undrawn facilities plus cash.
• -4.
• Adjusted for cash and debt in equity accounted investments.
  Excluding the impact of the contracted divestments of 60 Miller Street, North Sydney which settled on $5.$ 3 August 2021 and Grosvenor Place, Sydney which is expected to settle in the first half of FY22.

• 46 Dexus 2021 Annual Results Presentation

• 1. Proforma gearing adjusted for cash and debt in equity accounted investments. Look-through gearing at 30 June 2020 was 26.3%
• 1. Look-through interest cover is 4.9x.
• 1. As per public bond covenants.

Capital management
Interest rate hedging profile

Hedge maturity profile

Hedging profile	30 June 2021	30 June 2020
Average amount of debt hedged 1	81%	78%
Average amount of debt hedged excluding caps	68%	62%
Weighted average interest rate on hedged debt 2	1.7%	2.1%
Cost of debt 3	3.2%	3.4%
Weighted average maturity of hedges	5.1 years	6.4 years

$\frac{2}{3}$

Average amount hedged for the year (including caps).
Including fixed rate debt (without credit margin).
Weighted average for the year, inclusive of fees and margins on a drawn basis.

Capital management
Debt facilities¹

	Facility limit A\$m	Drawn A\$m	Maturity	Currency
Bilateral bank debt	50	50	FY22	A\$
	300	300	FY23	A\$
	300	297	FY24	A\$
	550	180	FY25	A\$
	575	253	FY26	A\$
	425	211	FY27	A\$
	175		FY28	A\$
Commercial paper 2	100	100	FY24	A\$
Medium term notes	160	160	FY23	A\$
	185	185	FY26	A\$
	130	130	FY27	A\$
	200	200	FY30	A\$
	500	500	FY32	A\$
	30	30	FY39	A\$
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\$

	Facility limit A\$m	Drawn A\$m
Sub total	5,735	4,651
Currency translation and fair value adjustments	328	328
Deferred borrowing costs and debt modifications	(32)	(32)
Exchangeable Notes adjustments	(22)	(22)
Total interest bearing liabilities	6,009	4,925
Bank guarantee utilised		(58)
Cash		44
Headroom including cash		1,069

Does not include debt facilities in equity accounted investments: \$11.5m (December 2022),
\$27.7m (April 2024), \$27.7m (April 2025), \$183.4m (June 2025) and \$36.9m (April 2026). $\mathbb{1}$ .

1. Based on maturity date of commercial paper standby facility.

2. USPP US\$ amount shown at the cross-currency swap contract rate.

3. Based on investor put date in FY24.

Funds management
Development pipeline

	\$6.5 billion Funds management development pipeline
\$1.8 billion Total Funds committed projects	\$4.1 billion Total Funds uncommitted projects		\$635 million Concept projects
	Project cost on uncommitted projects in Funds Management business
Uncommitted projects	FY22	FY23	FY24+
Office - 5 properties		\$3.4bn
Industrial - 3 properties		\$0.4bn
Retail - 1 property		\$0.2bn
Healthcare - 1 property		$$0.1$ bn
Project cost on uncommitted Funds Management projects		\$4.1bn

Property portfolio
Office and industrial key metrics

Key metrics	Office	Industrial
Amount of space leased $^{\rm l}$	184,029sqm 2	445,428sqm
No. of leasing transactions	3392	116
Occupancy by income	95.2%	97.7%
Occupancy by area	94.6%	98.7%
Average incentives	24.9%3	19.1%4
No. of effective deals	78	40
Weighted Average Lease Expiry 5 (WALE)	4.6 years	4.4 years
ike-for-like income growth (excluding rent.	Face $+2.4\%$ 6	Face $+1.5\%$ 7
elief and provision for expected credit losses)	Effective +2.3%	Effective $+3.7\%$ 7

Including rent relief and provision for expected credit losses office LFL growth was 6.

Effective +0.9% and Face was +1.3%.

$7.$ Including rent relief and provision for expected credit losses industrial LFL growth was Effective +4.5% and Face was +2.2%.

• Including Heads of Agreement.
• Excluding development leasing of 11,068sqm across 30 leasing transactions. Gross basis excluding development leasing.
• 1. 1. Net basis.
• 1. By income.
• 50 Dexus 2021 Annual Results Presentation

Sydney

CBD/Fringe

52%

WA7%

\$14.0bn²

Property portfolio Office portfolio diversification

1. Proforma for the acquisition of APN Property Group which was approved on 27 July 2021 as well as the settlement of MDAP's 33.3% interest in 1 Bligh Street, Sydney which occurred on 8 July 2021. Asset type and location composition are as at 30 June 2021.

NSW 60%

$\blacksquare$ Income $\blacksquare$ Area

Property portfolio Office portfolio lease expiry profiles by region

Includes stabilised properties only. 1.

$2.$ Passing FFO yield based on FY21 actual income excluding the effects of COVID rent waivers and one-off income.

Brisbane CBD

Property portfolio

Office top 10 customers represents 17.7% of property portfolio income

Office top 10 customers

Office customers 1	Credit rating 2	% of income 3
Victoria State Government	AA	3.6%
Wilson Parking	Not rated	3.4%
Commonwealth of Australia	AAA	2.9%
BDO Services	Not rated	1.2%
NBN	$A+$	1.2%
Herbert Smith Freehills	Not rated	1.2%
Worley	BBB-	1.1%
Commonwealth Bank of Australia	$AA-$	1.1%
HWL Ebsworth	Not rated	1.1%
John Holland	Not rated	1.0%

Diversity of office customers (by income)

Agriculture, Forestry and Fishing 1%

17 August 26

Total Dexus portfolio includes executed heads of agreement at 30 June 2021.

Highest equivalent S&P rating. $\overline{2}$

$\overline{\mathcal{L}}$ Annualised income is based on the sum of the passing Gross Rental and secured gross Rental (for signed leases and for signed Heads of Agreement).

Property portfolio
Industrial portfolio diversification

Industrial by location

Proforma for the acquisition of APN Property Group which was approved on 27 July 2021. $\overline{1}$ . Asset type and location composition are as at 30 June 2021.

Property portfolio
Industrial portfolio lease expiry profile¹

$\mathbb{1}$ . By industrial income.

Property portfolio
Industrial portfolio lease expiry profiles by region

Includes stabilised properties only. 1.

$2.$ Passing FFO yield based on FY21 actual income excluding the effects of COVID-19 rent waivers and one-off income.

Property portfolio Industrial top 10 customers represent 4.1% of property portfolio income

Industrial top 10 customers

Industrial customers 1	% of income 2
Autosports Group	0.8%
IBM Australia	0.6%
Coles	0.5%
Reece	0.4%
Symbion Health	0.3%
AWH Pth Ltd	0.3%
ESTORE	0.3%
Bapcor	0.3%
Scott's Refrigerated Logistics	0.3%
Fujitsu	0.3%

Diversity of industrial customers (by income)

26%

22%

Total Dexus portfolio includes executed Heads of Agreement at 30 June 2021.

$2.$ Annualised income is based on the sum of the passing Gross Rental and Secured gross Rental (for signed leases and for signed Heads of Agreement)

dexus

Environmental metrics Office portfolio sustainability metrics

Dexus Office Energy and GHG emissions intensity

Dexus Office Water intensity

GHG = areenhouse aas.

Location-based GHG emissions are calculated using published emissions coefficients and do not $2.$ consider voluntary renewable electricity purchases made by Dexus.

Dexus Office NABERS portfolio average ratings (stars)

	Energy with GreenPower	Energy	Water	Waste	Indoor Environment
Jun 15	4.7	4.4	3.8	$\qquad \qquad$	-
Jun 16	4.8	4.5	3.7		-
Jun 17	4.8	4.5	3.6	-	$\qquad \qquad$
Jun 18	4.9	4.7	3.6		-
Jun 19	5.0	4.8	3.6	$\overline{\phantom{a}}$	-
Jun 20	5.0	4.8	3.7	2.6	4.1
Jun 21	5.1	5.0	4.5	2.6	4.8

Development
Dexus completed developments and fund-throughs

Pipeline		Building area1 sqm	Project cost 2 \$m	Yield on cost 3 %	Leased %	Final completion	Third party partner interest %
Office	180 Flinders Street, Melbourne, VIC	20,300	168	$6 - 7%$	93%	Aug 20	$\overline{\phantom{a}}$
	80 Collins Street, Melbourne, VIC (Hotel) 4	7,700	28	N/A	100%	Aug 20	25%
Total office		28,000	196
Industrial	2-18 Momentum Way, Ravenhall, VIC 5	72,100	24	$6 - 7%$	100%	Jul 21	75%
	47 Momentum Way, Ravenhall, VIC	43,100	15	$6 - 7%$	100%	Jun 21	75%
	54 Ferndell Street, South Granville, NSW 5	57,100	83	$6 - 7%$	100%	Jul 21	49%
	425-479 Freeman Road, Richlands, QLD 5	55,100	43	$6 - 7%$	41%	Jul 21	49%
	9 Custom Place, Truganina, VIC 6	45,400	52	$6 - 7%$	100%	Sep 20
Total industrial		272,800	217
Healthcare	NSHH 12 Frederick Street, St Leonards, NSW 7	15,900	$\Omega$	N/A	57%	Mar 21	100%
Total Healthcare		15,900	$\circ$
	Total developments completed	316,700	413

n locals share in development cost (including cost of land, where purchased for development and excluding downtime and income earned through development).
Yield on cost calculation includes cost of land, downtime and incom $2.$ $\overline{3}$ .

The vendor managed the development of the Hotel. Development costs, including certain third-party claims associated with the development, were funded by the vendor with Dexus's contribution effectively limited 4.

to the agreed purchase price, subject to certain limitations on claims.
These projects were completed post 30 June 2021.
5. These projects were completed post 30 June 2021.
6. Dexus 100% owned at 30 June 2021. Entered into

At 100%.

Development
Dexus committed developments and fund-throughs

Pipeline		area 1 sqm	Building Project cost est. 2 \$m	Est. cost to completion \$m	Yield on cost 3 %	Leased %	Completion due	Third party partner interest %
Office	123 Albert Street, Brisbane, QLD	38,600	168	166	$5 - 6%$	17%	Mid 2023
Total office		38,600	168	166
Industrial	Lot 6 Palm Springs Road, Ravenhall, VIC	60,900	19	13	$6 - 7%$	0%	Late 2022	75%
	Lot 7 Palm Springs Road, Ravenhall, VIC	50,900	17	13	$6 - 7%$	100%	Mid 2022	75%
	107 Momentum Way, Ravenhall, VIC	20,000		5	$6 - 7%$	100%	Late 2021	75%
	73-91 Momentum Way, Ravenhall, VIC	40,000	12	9	$6 - 7%$	100%	Early 2022	75%
	Lot 401 Innovation Drive, Mickleham, VIC	51,600	37	14	N/A	100%	Mid 2021	49%
	Lot 501 Innovation Drive, Mickleham, VIC	21,400	14	9.	N/A	0%	Late 2021	49%
Total industrial		244,800	106	63
City retail/other	25 Martin Place, Sydney, NSW	11,000	105	36	$5 - 6%$	88%	Early 2022	50%
	Australian Bragg Centre, North Terrace, Adelaide, SA	24,500	231	164	$5 - 6%$	77%	Mid 2023	50%
Total city retail/other		35,500	336	200
Total committed developments		318,900	610

At 100%.

1. Dexus share in development cost (including cost of land where purchased for development and excludes downtime and income earned through development).
   3. Target yield on cost calculation includes cost of land, downtime a

Development
Dexus uncommitted developments and fund-throughs

Pipeline		Building area 1,5	Project cost est. 2,6	Est. yield on est. project cost 3	Third party partner interest
		sqm	\$m\$	%	%
Office	Waterfront, Brisbane, QLD	130,700	c.1,100	$5 - 6%$	50%
	60 Collins Street, Melbourne, VIC	42,800	c.900	$5 - 6%$
	140 George Street, Parramatta, NSW	43,600	c.250	$5 - 6%$	50%
	150 George Street, Parramatta, NSW	21,600	c.50	$6 - 7%$	50%
	Central Place Sydney, NSW 4	138,200	c.550	$5 - 6%$	25%
	Pitt and Bridge Precinct, Sydney, NSW	93,400	c.1,450	$5 - 6%$	50%
	Atlassian, Sydney, NSW 5	58,500	c.1,200	$4 - 5%$	N/A
Total office		528,800	c.5,500
Industrial	11-167 Palm Springs, Ravenhall, VIC	166,000	c.50	$6 - 7%$	75%
	20 Distribution Drive, Truganina, VIC	21,000	c.50	$5 - 6%$
	141 Anton Road, Hemmant, NSW	66,000	c.100	$5 - 6%$
	12 Frederick Street, St Leonards (North), NSW	17,600	c.50	$6 - 7%$
	113-153 Aldington Road, Kemps Creek, NSW 7	150,000	c.350	$5 - 6%$
	311 South Street, Marsden Park, NSW	41,800	c.50	$4 - 5%$	49%
	Stage 2 1-21 McPhee Drive, Berrinba, QLD 7	13,800	c.50	N/A
Total industrial		476,200	c.700
Total uncommitted developments		1,005,000	c.6,200

1. At 100%.

2. Excluding external party share of project. External JV partner owns 50% of this project.

3. Dexus share in development cost (including cost of land where purchased for development and excludes downtime and income 5. Represents funding obligation for 100% of the project cost (ex land), noting that at practical completion, Dexus group will retain earned through development). Pitt & Bridge Precinct only excludes land for 56 Pitt Street and Central Place Sydney only at least a 50% interest. 6. Amounts have been rounded.

excludes land for 14 Lee Street, Sydney. 3. Target yield on cost calculation includes cost of land, downtime and income earned through development in the denominator.

1. Entered into put and call options to acquire the assets post 30 June 2021.

Transactions Dexus

Dexus acquisitions	Purchase price \$m	Interest	Settlement	Dexus divestments	Sale price Interest \$m		Settlement
155, 159, 171 Edward Street, Brisbane, QLD (Hermes)	\$87.0	100%	3-Aug-20	Finlay Crisp Centre, Canberra, ACT	\$31.0	50%	$1-Jul-20$
141 Anton Road, Hemmant, QLD	\$31.8	100%	11 Sep-20	201 Elizabeth Street, Sydney, NSW 10	\$315.0	50%	12 Nov-19 & Aug-20
Australian Bragg Centre, Adelaide, SA	\$223.1	50%	30-Oct-20	45 Clarence Street, Sydney, NSW	\$530.0	100%	18-Dec-20
278 Orchard Road, Richlands, QLD	\$43.4	51%	5-Mar-21	27-29 Liberty Road, Huntingwood, NSW	\$7.1	51%	05-Feb-21
Lot 501, Merrifield Business Park, Mickleham, VIC	\$11.9	51%	10-Mar-21	250-270 Forest Road South, Lara, VIC	\$13.2	24%	01-Apr-21
179 Palm Springs Road, Ravenhall, VIC	\$4.2	26%	15-Mar-21	10 Eagle Street, Brisbane, QLD	\$142.5	50%	31-May-21
84 Lahrs Road, Ormeau, QLD	\$34.0	100%	$8 - Apr - 21$	436-484 Victoria Road, Gladesville, NSW	\$55.0	100%	$9 - Aug - 21$
47 Acanthus Street, Darra, QLD	\$13.0	100%	$8 - Apr - 21$	60 Miller Street, North Sydney, NSW	\$273.0	100%	3-Aug-21
18 Motorway Circuit, Ormeau, QLD	\$19.8	100%	$8 - Apr - 21$	Grosvenor Place, 225 George Street, Sydney NSW 11	\$694.0	37.5%	First half FY22
37-39 Wentworth Street, Greenacre, NSW 2	\$51.0	51%	$9 - Apr-21$	Truganina, VIC and Lakes Business Park South, Botany, NSW 12	\$269.4	100%	Oct 20-Sep/Oct-21
22 Business Park Drive, Ravenhall, VIC	\$9.0	100%	17-Jun-21	22 Business Park Drive, Ravenhall, VIC 13	\$13.5	100%	$Sep-21$
Capital Square Tower 1, Perth, WA 3	\$475.3	49%	22-Jul-21
Ford Facility, Merrifield Business Park, Mickleham, VIC 4	\$37.5	51%	Aug 20 - Aug 21	The purchase price reflects the development completion price. The property will be acquired via a fund-through arrangement and
3 Spring, 58 Pitt and 60 Pitt Streets, Sydney, NSW 5	\$177.0	50%	Aug 18 - Jul 22	expected completion is August 2023. The settlement of the initial payment of \$111.8m occurred on 30 October 2020. 2. 75% of the purchase price was paid in July 2020 with the remaining 25% paid in April 2021.
311 South Street, Marsden Park, NSW	\$23.0	51%	22-Jul-21	3. Dexus paid \$339m for its 49% equity stake in the trust owning the property valued at \$970m, a \$157m loan receivable and \$450m of senior secured debt.
113-153 Aldington Road, Kemps Creek, NSW 6	\$125.5	100%	Apr $-23$	4. The purchase price reflects the initial purchase of the land and the estimated development costs. 5. Of the total \$177.0m purchase price, \$126.7m was settled prior to 30 June 2021.
2 Maker Place, Truganina, VIC 7,9	\$69.0	100%	Aug-21 - Feb-22	Settlement subject to exercise of put and call option.
Stage 11-21 McPhee Drive, Berrinba, QLD 6,9	\$37.5		100% Aug-21 - Feb-22	7. Purchase price reflects the combination of a stabilised property worth \$61m and expansion land worth \$8m. Settlement subject to exercise of put and call option.
Stage 21-21 McPhee Drive, Berrinba, QLD6,8,9	\$42.0	100%	$Mar-23$	8. The purchase price reflects the development completion price and will be acquired via a fund-through arrangement with practical completion expected March 2023.
Stage 3 116-130 Gilmore Road, Berrinba, QLD6,9	\$37.5	100%	Aug-21 - Feb-22	9. Makes up part of the McPhee Industrial portfolio. 10. Dexus settled on the sale of the initial 25% interest in November 2019 for \$157.5m. Settlement of the remaining 25% interest occurred in August 2020 for \$157.5m. 11. Settlement expected in first half of FY22. 12. Down astitud the first transhes of the industrial assets in Ostaber 2020 and December 2020 and has entered into mut and sell entian

1. Dexus settled the first tranche of the industrial assets in October 2020 and December 2020 and has entered into put and call option arrangements to sell the second tranche in the first half of FY22.

2. On 13 August 2021, Dexus entered into a put and call option arrangement to sell 22 Business Park Drive, Ravenhall.

Transactions Funds management

Funds Management acquisitions	Purchase price \$m	Interest	Settlement	Funds Management divestments	Sale price \$m	Interest	Settlement
Australian Bragg Centre, Adelaide, SA 1	\$223.1	50%	30-Oct-20	Finlay Crisp Centre, Canberra, ACT	\$31.0	50%	Jul 20
College Junction, 695 Sandgate Road, Clayfield, QLD	\$36.5	100%	30-Nov-20	141 Anton Road, Hemmant, NSW	\$31.8	100%	$11-Sep-20$
201-203 Power Street, Glendenning	\$27.1	100%	11-Dec-20	452 Flinders, Melbourne, VIC	\$454.3	100%	10-Dec-20
278 Orchard Road, Richlands, QLD	\$41.7	49%	05-Mar-21	27-29 Liberty Road, Huntingwood, NSW	\$6.9	49%	05-Feb-21
Lot 501, Merrifield Business Park, Mickleham, VIC	\$11.4	49%	10-Mar-21	10 Eagle Street, Brisbane, QLD	\$142.5	50%	31-May-21
179 Palm Springs Road, Ravenhall, VIC	\$12.2	75%	15-Mar-21	Grosvenor Place, 225 George Street, Sydney NSW 10	\$231.0	12.5%	First half FY22
37-39 Wentworth Street, Greenacre, NSW 2	\$49.0	49%	$9 - Apr - 21$
399 Royal Parade, Parkville, VIC	\$138.7	100%	16-Jun-21
Bethesda Mental Health Clinic, Cockburn Central, WA3	\$58.3	100%	07-Jul-21
1 Bligh Street Sydney, NSW4	\$375.0	33%	08-Jul-21
525 Boundary Street, Spring Hill, QLD 5	\$97.4	100%	Aug-21 - Dec-21
43 Butterfield Street, Herston, QLD 6	\$33.3	100%	Aug-21 - Dec-21
Ford Facility, Merrifield Business Park, Mickleham, VIC7	\$36.0	49%	Aug-20 $-$ Aug-21
Truganina, VIC and Lakes Business Park South, Botany, NSW 8	\$269.4	100%	Oct-20-Sep/Oct-21
3 Spring, 58 Pitt and 60 Pitt Streets, Sydney, NSW 9	\$177.0	50%	Aug-18 - Jul-22
311 South Street, Marsden Park, NSW	\$22.1	49%	Jul-22

1. The purchase price reflects the development completion price. The property will be acquired via a fund-through arrangement and expected completion is August 2023. The settlement of the initial payment of \$111.8m occurred on 30 October 2020.

2. 75% of the purchase price was paid in July 2020 with the remaining 25% paid in April 2021.

3. 1. The purchase price reflects the development completion price. The property will be acquired via a fund-through arrangement.
4. 1. Reflecting the acquisition price for the 33.33% interest in 1 Bligh Street (of which Mercatus holds a 90% share and Dexus a 10% share) and excludes acquisition costs, other costs and purchase price adjustments.
5. 1. The purchase price reflects the development completion price. The property will be acquired via a fund-through arrangement and expected completion is the end of 2022.
6. 1. The purchase price reflects the development completion price. The property will be acquired via a fund-through arrangement and expected completion is the end of 2022.
7. The purchase price reflects the initial purchase of the land and the estimated development costs.
8. 1. Dexus settled the first tranche of the industrial assets in October 2020 and December 2020 and has entered into put and call option arrangements to sell the second tranche in the first half of FY22.
9. 1. Of the total \$177.0m purchase price, \$126.7m was settled prior to 30 June 2021.
10. 1. Settlement expected in first half of FY22.

Yield is a positive thematic driving investor demand for real estate

Australian real estate yields are still high compared to interest rates

Negative real interest rates support demand for real assets

Search for defensive yield driving cap rate compression²

Source: MSCI, Dexus Research, RBA, JLL Research.

Office cap rates.

Cap rates series are for Sydney markets (office, retail and healthcare) and the Melbourne market (industrial). The Healthcare series is the hospital income return from MSCI. $2.$

Australia has attractive yields on relative global basis¹

All property types demonstrate attractive spreads to bonds²

Industrial sector

Take-up running at well above average levels, buoyed by online spending

National industrial take-up by type

Australian retail sales growth buoyed by the online channel

Healthcare sector

Healthcare has outperformed other sectors over the past decade

Employment growth next 5 years

400 -All Property -Retail -Office -Industrial -Healthcare 350 300 250 200 150 100 Mar 2013 Mar 2015 Mar 2017 Mar 2019 Mar 2021 Mar 2011

Indexed returns by sector (10yrs) (March-2011=100)

Source: DAE, MSCI, Dexus Research

66 Dexus 2021 Annual Results Presentation

Market outlook

Sydney CBD - short term supply substantially offset by withdrawals

Source: JLL Research, Dexus Research

Market outlook

Melbourne CBD - many projects will require pre-commitment in order to proceed

Source: JLL Research, Dexus Research

dexus

Office markets Dexus's position in CBD office

CBD Office Market	Sydney	Melbourne	Brisbane	Perth
Total NLA	5,175,349sqm	5,106,785sqm	2,305,724sqm	1,807,262sqm
Prime vacancy average	13.6%	15.0%	15.8%	15.4%
Dexus CBD Exposure
Total NLA	553,557sqm	422,426sqm	231,151sqm	122,202sqm
Number of properties	18	9	6	3
Occupancy (by area)	97.4%	86.4%	95.0%	98.2%
Occupancy (by income)	97.2%	87.6%	95.3%	98.0%
WALE	4.3 years	5.4 years	4.2 years	5.5 years

Other information

Exchange and securities used in statutory accounts

		30 Jun 2021	31 Dec 2020	30 Jun 2020
Closing rates for Statement of Financial Position	USD	0.7518	0.7702	0.6863
Average rates for Statement of Comprehensive Income	USD	0.7468	0.7302	0.6714
Post consolidation equivalent amounts		12 mths to 30 Jun 2021	6 mths to 31 Dec 2020	12 mths to 30 Jun 2020
Average weighted number of securities 1		1,084,536,777	1,090,472,045	1,095,096,969
Closing number of securities		1,075,565,246	1,089,055,137	1,091,202,163

1. Used to calculate Underlying FFO, FFO and AFFO per security.

Glossary

Distribution payout policy:	Policy is to distribute in line with free cash flow.
Funds From Operations (FFO):	FFO is in line with Property Council of Australia definition and comprises net profit/loss after tax attributable to stapled security holders calculated in accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark to market impacts, fair value movements of interest bearing liabilities, amortisation of tenant incentives, gain/loss on sale of certain assets, straight line rent adjustments, deferred tax expense/benefit, certain transaction costs, one-off significant items, amortisation of intangible assets, movements in right of use assets and lease liabilities, rental guarantees and coupon income.
Adjusted FFO (AFFO):	AFFO in accordance with guidelines provided by the Property Council of Australia (PCA): comprises net profit/loss after tax attributable to stapled security holders, calculated in accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments and reversal of impairments, derivative and foreign exchange 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, non-FFO tax expenses, certain transaction costs, one-off significant items (including write off of IFRIC SaaS customisation expenses), amortisation of intangible assets, movements in right-of-use assets and lease liabilities, rental guarantees and coupon income less maintenance capital expenditure and lease incentives.
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 Lease Expiry (WALE):	A measure in years of the average term to expiry of in-place rent. Includes vacancies.

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 quaranteed 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.