2010 DEXUS Property Group US Property Tour DEXUS Funds - - PowerPoint PPT Presentation
2010 DEXUS Property Group US Property Tour DEXUS Funds Management Limited ABN 24 060 920 783 DEXUS Property Group, US Property Tour Slide 1 AFSL 238163 as responsible entity for DEXUS Property Group TITLE SLIDE HEADER DEXUS US
DEXUS Property Group, US Property Tour —Slide 1
DEXUS Property Group US Property Tour
DEXUS Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for DEXUS Property Group
DXS 2009 Annual Results —Slide 2
TITLE SLIDE HEADER (Trebuchet Bold 28pt) Sub title (Trebuchet 16 pt)
Victor Hoog Antink Chief Executive Officer
DEXUS US
Jane Lloyd, Managing Director, US Investments
3691 North Perris Boulevard, Perris, CA
DEXUS Property Group, US Property Tour —Slide 3
DEXUS US VISION Our goal in the US
is to become a market leader in industrial real estate on the west coast within three years by:
—Repositioning our existing portfolio to create critical mass, and —Establishing a full service asset management platform Tenants preferred owner Quality assets Active portfolio management S trong balance sheet Investors enhanced value Employees preferred employer
Our brand proposition
DEXUS Property Group, US Property Tour —Slide 4 13602 12t h St reet, Chino, CA
US INDUSTRIAL
The task at hand
Establish US
team
Manage existing portfolio - improved operational performance Transition management of existing core portfolio Reposition portfolio to preferred west coast markets
DEXUS Property Group, US Property Tour —Slide 4
DEXUS Property Group, US Property Tour —Slide 5
INDUSTRIAL MARKETS
Some perspective on relative size
DEXUS Property Group, US Property Tour —Slide 6
US OPERATING ENVIRONMENT
Weak but improving
US Industrial absorption and US GDP US Industrial transactions
US
industrial net absorption weak but forecast to improve with economy 2011-13
US
industrial transaction volumes remain low following 2007 peak
S
Research * To Q1/ 10
DEXUS Property Group, US Property Tour —Slide 7
What do we want?
—S tabilized portfolio —Consistent performance —Long-term sustainable earnings growth
How do we measure?
—Rental growth, retention and receivables —Benchmarking
What are we doing?
—Building DEXUS team —Regular visits to assets —Weekly calls —Focus on high risk areas
9371 Buffalo Avenue Rancho Cucamonga, CA DEXUS Property Group, US Property Tour —Slide 7
DEXUS Property Group, US Property Tour —Slide 8
DEXUS Property Group, US Property Tour —Slide 9
DEXUS US – An Integrated Property Model
Asset Management
Property management
Development Management Leasing & Transactions
ENHANCED PERFORMANCE AND VALUE Investment management (portfolio oversight)
IT, Finance, CR&S
Jun 2010 Jan 2011 CBRE
DEXUS Property Group, US Property Tour —Slide 10
Portfolio – April 2009
DEXUS Property Group, US Property Tour —Slide 11
Portfolio – current
DEXUS Property Group, US Property Tour —Slide 12
Portfolio – following repositioning
DEXUS Property Group, US Property Tour —Slide 13
What type of assets do we want?
—A-Grade and quality B-Grade —Institutional grade (high spec) —Assets that can become A-Grade
Criteria
—Preferred west coast markets —Location – transport nodes —S pecification —Disciplined approach
Why?
—Operational efficiencies —Investor requirements —S etting market expectations
TARGET ASSET CRITERIA
Source: Cushman & Wakefield Dec 2009 valuations
Core portfolio
DEXUS Property Group, US Property Tour —Slide 14
US INVESTMENTS
Where we are and where we want to be
One brand DEXUS Multiple brands DEXUS / RREEF/ CBRE Brand Core portfolio rated Program implemented 5 LEED certified Sustainability A-Grade – 80% B-Grade – 15% C-Grade – 5% D-Grade – 0% A-Grade – 52% B-Grade – 37% C-Grade – 6% D-Grade – 5% Quality Repositioned to west coast S trong management platform Diversification, recycling Capital and value proposition Core portfolio managed by DEXUS 20-25 people One organization One culture One brand Preferred west coast markets
2012/ 13 MARKETS 2010
Markets 17 markets People 12 people 3 parties with multiple interests Tenant relationships Portfolio managed by 2 x third party providers
DEXUS Property Group, US Property Tour —Slide 15
KEY PERFORMANCE INDICATORS Short-term
—Third party providers —More aggressive deals —Stronger enforcement/ expectation on benchmarks
Assemble team
—S election —DEXUS approach: service excellence
Assume asset management responsibility Implement integrated management Future opportunities
—3rd party funds management and development
3590 De Forest Circle, Mira Loma, CA
DXS 2009 Annual Results —Slide 16
TITLE SLIDE HEADER (Trebuchet Bold 28pt) Sub title (Trebuchet 16 pt)
Victor Hoog Antink Chief Executive Officer
QUESTIONS
4190 Santa Ana Street, Ontario, CA
DEXUS Property Group, US Property Tour —Slide 17
DEXUS Property Group US Property Tour
DEXUS Funds Management Limited ABN 24 060 920 783 AFSL 238163 as responsible entity for DEXUS Property Group