TITLE S LIDE HEADER DEXUS Property Group S ub title (Trebuchet 18 pt) S eptember 2011 Vict or Hoog Ant ink Investor meetings Chief Execut ive Officer DXS 2009 Annual Results — Slide 1
DEXUS PLATFORM Group outlook — Positive SECTOR — KEY MESSAGE AUM/target allocation Driving growth and value Office $4.5bn 60% Leverage through submarket concentration Environment & Stakeholders Stable income and outlook Property Indust rial $1.6bn 20% Opportunities for development Capital values improving Indust rial US $1.2bn 20% Focus on leasing Strong platform Third Part y $6.2bn managed Future opportunity Funds and Capital Conservative Funding & capit al management Well positioned DEXUS Property Group — Slide 2
KEY FINANCIAL OUTCOMES Results in line with prior guidance — stronger FY12 June 2010 June 2011 % change Key financial metrics FFO $350.0 $358.0 2.3% FFO per securit y 7.30c 7.40c 1.4% Dist ribution per securit y 5.10c 5.18c 1.6% S t at ut ory profit $31.4m $553.0m — Gearing 29.8% 28.4% 1.4% NTA per securit y $0.95 $1.01 6.3% Key portfolio metrics Occupancy (by area) 89.9% 88.7% WALE (by income) years 5.1 5.0 Like-for-like income growt h (2.3% ) 1.9% Port folio value $7.3bn $7.5bn Tot al asset s under management $13.3bn $13.7bn June 2011 actual June 2012 guidance FFO FY12: at least 7.65c 1 FY11: 7.40c 3.4% Distribution guidance FY12: at least 5.35c 1 FY11: 5.18c 3.3% 1. Barring unforseen circumstances. DEXUS Property Group — Slide 3
FUNDS FROM OPERATIONS June 2010 June 2011 $m $m Group like-for-like NOI up $8m Office 245.1 255.2 Indust rial 109.9 116.4 1 Indust rial US 99.2 89.1 Management business cont ribution Non-core 1,2 30.2 18.5 and ot her operat ing cost s impact ed Currency impact on NOI - (12.0) by US int ernalisation and one-off Management business cont ribution t o FFO (12.9) (22.7) cost s Ot her operat ing cost s (10.2) (7.3) Operat ing EBIT broadly unchanged Operating EBIT 461.3 437.2 before net asset disposals and Finance cost s 1 (125.9) (103.3) currency movement s, which are Currency impact on finance cost s - 10.5 offset in int erest expense Cash and fit -out incent ive amortisat ion 30.4 30.9 RENTS (10.5) (12.5) Ot her (5.3) (4.8) Funds From Operat ions Funds From Operations (FFO) 350.0 358.0 increased 2.3% FFO per security 7.3 7.4 Distribution per security 5.1 5.2 1. Constant currency: refer to DEXUS 2011 Annual Results Appendices for exchange rates. 2. Retail (FY10) and European industrial. DEXUS Property Group — Slide 4
NET TANGIBLE ASSETS CHANGES June 2011 cps $m Investment Portfolio Cap rate Valuation Opening net tangible assets 4,576 95 property movement Revaluation of real estate 182 4 Office 60% 7.4% $123m Retained earnings 1 107 2 Indust rial 22% 8.6% -$14m Amortisation of tenant incentives (31) (1) Fair value movements 2 35 1 Indust rial US 16% 7.6% $81m NTA changes in comprehensive Indust rial EU 2% n/ a -$8m income 293 6 Total 100% 7.7% $182m Movement in DRP and FX reserve 9 Total movement in NTA 302 6 Closing net tangible assets 4,878 101 1. Based on payout ratio being 70% of FFO. 2. Includes primarily loss on sale of assets and fair value movements of derivatives. DEXUS Property Group — Slide 5
FFO AND NTA CHANGES RESULT IN ROE 11.8% FY11 Return on Equity ROE: 11.8% Funds From Operations $358m Distributions 5.2c 70% payout ratio NTA increase 6.0c Total movement in NTA $302m Opening NTA 95c Quarry Industrial Estate, Reconciliation Road, Greystanes, NSW DEXUS Property Group — DEXUS Property Group — Slide 6 Slide 6
DXS PORTFOLIO Focused platform: robust core returns - leveraged to cyclical upside SECTOR — CORE RETURNS ACTIVE RETURNS AUM/target allocation Prime properties in maj or CBD’ s Development and trading Office $4.5bn 60% (>85% AUM: target 9% IRR) (<15% AUM: target 15% IRR) Environment & Stakeholders S ydney and Melbourne growth Development, trading Property Indust rial $1.6bn 20% corridors (>80% & land (<20% AUM: target 10% IRR) AUM: target 15% IRR) Reposition to core markets Indust rial US $1.2bn 20% Medium term focus (currently 50% FUM: target 8.5% IRR) Existing funds growth Third Part y $6.2bn managed DWPF $3.4bn and two mandates capital partnering Funds and Capital Conservative approach, Reduced funding costs Funding & capit al management transparency and risk management Increased return in equity DEXUS Property Group — Slide 7
DEXUS PLATFORM Office SECTOR — AUM/target allocation FY11 total return: 9.0% Office $4.5bn 60% Geographical weighting Environment & Stakeholders Canberra Auckland Property Indust rial $1.6bn 20% 1% 2% Pert h 10% Brisbane 8% Indust rial US $1.2bn 20% Quality : 39% Premium S ydney 65% 49% A Grade Melbourne 14% Third Part y $6.2bn managed Funds and Capital Funding & capit al management DEXUS Property Group — Slide 8
DEXUS PLATFORM Office SECTOR — AUM/target allocation June 2010 June 2011 Office $4.5bn 60% Net operat ing income $245.1m $255.2m Environment & Stakeholders NOI change (0.7% ) 4.1% Property Indust rial $1.6bn 20% Like-for-like 0.4% 3.3% Occupancy (area) 95.7% 96.2% Indust rial US $1.2bn 20% Occupancy (income) 96.2% 95.3% Over/ under rent ed 2.4% under 3.0% under Third Part y $6.2bn managed Ret ent ion rat es 56% 53% Funds and Capital Lease durat ion by income 5.4yrs 5.3yrs Funding & capit al management Average cap rat e 7.6% 7.4% DEXUS Property Group — Slide 9
OFFICE PORTFOLIO — CORE S ydney CBD — dominant owner/ manager in S ydney’ s western corridor ydney t reet , S 44 Market S 44 Market S treet, S ydney Occupancy increased to 97% Valuation up 7.4% Rents up 10% WALE up to 5.8 years (5% above market) Incentives 4% FY11 total return 11.3% below market DEXUS Property Group — Slide 10
DEXUS PLATFORM Industrial SECTOR — AUM/target allocation FY11 total return: 9.4% Office $4.5bn 60% Environment & Stakeholders Geographical weight ing Propert y classificat ion by book value by book value Property Indust rial $1.6bn 20% Adelaide & Brisbane Vacant land Business 6% 14% parks 33% S ydney 57% Indust rial US $1.2bn 20% Warehouses/ Third Part y $6.2bn managed Melbourne dist ribut ion 37% cent res 23% Funds and Capital Indust rial est at es 30% Funding & capit al management DEXUS Property Group — Slide 11
DEXUS PLATFORM Industrial SECTOR — AUM/target allocation June 2010 June 2011 Office $4.5bn 60% Net operating income $109.9m $116.4m Environment & Stakeholders NOI change 0.6% 5.9% Property Indust rial $1.6bn 20% Like-for-like 1.6% 1.1% Occupancy (area) 98.4% 96.2% Indust rial US $1.2bn 20% Occupancy (income) 97.9% 95.1% Over/ under rented 7.1% over 4.9% over Third Part y $6.2bn managed Retention rates 80% 61% Funds and Capital Lease duration by income 4.9yrs 4.7yrs Funding & capit al management Average cap rate 8.8% 8.6% DEXUS Property Group — Slide 12
INDUSTRIAL — ACTIVE S ydney industrial hotspots — Erskine Park Local market knowledge and focus creat es value Acquired 7.6 ha Aug 2010 $15.9m ($197/ sqm) — S old two lots at $290/ sqm — S trong enquiry for 21,000sqm spec warehouse Target proj ect IRR: >20% DEXUS Property Group — Slide 13
DEXUS PLATFORM Industrial US SECTOR — AUM/target allocation FY11 total return: 14.3% Office Office $4.5bn $4.5bn 60% 60% Environment & Stakeholders Property Indust rial $1.6bn 20% Indust rial US $1.2bn 20% Third Part y $6.2bn managed Funds and Capital Funding & capit al management DEXUS Property Group — Slide 14
DEXUS PLATFORM Industrial US SECTOR — AUM/target allocation June 2010 June 2011 Office Office $4.5bn $4.5bn 60% 60% Net operat ing income US $87.3m US $78.6m Environment & Stakeholders NOI change (US D) (10.5% ) (10.0% ) Property Indust rial $1.6bn 20% Like-for-like (US D) (12.3% ) (4.5% ) Occupancy (area) 86.4% 84.4% Indust rial US $1.2bn 20% Occupancy (income) 84.3% 87.9% Over rent ed 8.2% 2 13.8% Third Part y $6.2bn managed Ret ent ion rat es 56% 55% Funds and Capital Lease durat ion by income 4.9yrs 4.4yrs Funding & capit al management Average cap rat e 8.4% 7.6% DEXUS Property Group — Slide 15
DEXUS PLATFORM Industrial US SECTOR — AUM/target allocation Property Occupancy Average Retention value 30 June 11 cap rate FY11 Office Office $4.5bn $4.5bn 60% 60% ($m) Environment & Stakeholders West coast 308 96.2% 6.75% 84% Property Indust rial $1.6bn 20% Whirlpool 335 100.0% 6.50% — Central 615 74.0% 8.60% 46% Indust rial US $1.2bn 20% Total 1,258 84.4% 7.60% 55% FY11 ― S Third Part y $6.2bn managed old US $148.2m (13% above book) Funds and ― US $59.0m acquisitions (average yield 7.1% ) Capital Funding & capit al management DEXUS Property Group — Slide 16
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