Environment

RESOURCE EFFICIENCY AND SUSTAINABILITY
FY14 PERFORMANCE AGAINST COMMITMENTS

= Achieved , = Not achieved, = Underway

COMMITMENT STATUS FY14 ACHIEVEMENTS
Maintain an average 4.5 star NABERS Energy rating across the DEXUS office portfolio while reducing consumption of GreenPower Achieved an average NABERS Energy rating of 4.6 stars across the DEXUS office portfolio, exceeding the 4.5 star target and reducing purchased GreenPower. On a like-for-like basis, the DEXUS office portfolio achieved a 4.8 star NABERS Energy rating
Continue to deliver energy savings across the total DEXUS property portfolio in FY14, the second year of a three year program, to deliver a 10% reduction Delivered 8.4% energy savings across the Group's like-for-like property portfolio on an absolute basis in the second year of a three year program targeting a 10% reduction
Expand waste reporting to the retail portfolio and deliver a reduction in waste to landfill over the next three years across the office and retail portfolio In FY14 the Group expanded waste reporting to the retail portfolio and diverted 49% of waste from landfill across the office and retail portfolios, a 12.7% improvement in the first year of a three year program against the 2012 base year
Achieve a 4.5 star NABERS Energy rating for DEXUS's new head office at Australia Square DEXUS's Sydney head office achieved its targeted 4.5 star NABERS Energy rating in June 2014
Create and transact Energy Saving Certificates through participation in the NSW Energy Savings Scheme by continually improving asset performance Created and transacted Energy Saving Certificates valued at $470,379 through participation in the NSW Energy Savings Scheme

DEFINITIONS

NABERS - National Australian Built Environment Rating System GBCA - Green Building Council of Australia Green Star - An environmental rating tool for commercial design and construction, which evaluates a building's impact against eight environmental impact categories SIPs - Strategic Improvement Plans DEXUS Property Group, the Group - refers to the ASX listed entity and the Third Party Funds Management business DEXUS - refers to the portfolio of properties in ASX listed entity only DWPF - DEXUS Wholesale Property Fund Third Party Funds or Third Party Funds Management business ? refers to the Third Party Funds Management business including the Australian mandate, three capital partnerships and DWPF.

DEXUS PROPERTY GROUP

RESOURCE CONSUMPTION

The DEXUS portfolio has seen energy, water and greenhouse emissions increase over the last 12 months in line with a significant addition in the portfolio's footprint following acquisitions during the year including the CPA portfolio.

Since FY13, the Group's energy consumption has increased by 15.0%, Scope 1 and 2 emissions have increased by 14.4% and water consumption is up by 18.5%. Intensity figures are also marginally higher due to a reweighting of the portfolio towards office and retail properties that exhibit higher intensities than industrial properties.

In the Group's like-for-like performance, energy and greenhouse gas emissions reduced on an intensity basis by 4.0% and 4.8% respectively from the previous year, demonstrating a strong result in energy and greenhouse gas emissions management. These reductions are a direct result of the Group's active focus on property operations and ongoing targeted capital works that increase energy efficiency.

DEXUS Property Group is on track to achieve its three year commitment to reduce usage by 10% by FY15 against an FY12 baseline. Progress to date has seen the Group achieve an 8.4% reduction in absolute energy consumption. Water use increased over the past 12 months by 4.6% on a like-for-like intensity basis, with the most significant increases due to increased tenant demands and re-establishment of irrigation across industrial properties.

The Group has expanded the coverage of its reporting of waste and recycling to 90% of total lettable area across the office and retail properties. Through its waste management partners, the Group has engaged with office tenants on waste management and segregation, which is reflected by the 12.7% improvement in waste diverted from landfill over the past two years. Waste diversion for FY14 was 49% for the Group and 63% across office properties.

In the following sections, data is presented for the Group portfolios and like-for-like portfolios to enable comparison of the pre-existing portfolio as well as the overall Group trends including acquisitions. Energy, water and greenhouse gas intensity for newly acquired properties is expected to reduce in FY15 through the Group's value-add strategy to achieve performance in line with the existing property portfolio.

SUMMARY

The following charts highlight the Group's performance trends on an absolute basis for energy and water consumption, greenhouse gas emissions and waste diversion from the base year of FY08.

Energy and water consumption by property type

CONSUMPTION/EMISSIONS ON AN INTENSITY BASIS

consumption emissions intensity basis

  1. FY08 represents the Group's base year for energy, water and greenhouse gas emissions. FY12 represents the Group's base year for waste diversion from landfill

The following charts highlight the Group's seven year performance trends on an intensity basis for energy and water consumption, greenhouse gas emissions and waste diversion from landfill.

Group energy intensity like for like

DEXUS PROPERTY GROUP LIKE-FOR-LIKE2 CONSUMPTION/EMISSIONS ON AN INTENSITY BASIS

Group consumption by intensity

  1. FY08 represents the Group's base year for energy, water and greenhouse gas emissions. FY12 represents the Group's base year for waste diversion from landfill.
  2. Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2014.

The following charts highlight the Group's like-for-like portfolio performance trends on an intensity basis for energy and water consumption, greenhouse gas emissions and waste diversion from landfill from the base year of FY08.

Group energy intensity like for like

ENERGY CONSUMPTION AND PRODUCTION BY SOURCE

 

The following highlights the total energy consumption for FY14 by energy source.

GREENHOUSE GAS EMISSIONS BY SOURCE

The following highlights the total Scope 1, 2 and 3 greenhouse gas emissions for FY14 by emissions source.

ENERGY CONSUMPTION

DEXUS Property Group has actively managed its energy consumption as part of its three-year commitment to reduce usage by 10% across the Group by FY15 against an FY12 baseline. To date, the Group has achieved an 8.4% reduction in absolute energy consumption and is on track to achieve its FY15 target.

These results demonstrate the portfolio-wide performance benefits achieved from the 4.5 star NABERS Energy program combined with the Group's continued active management approach.

Like-for-like energy consumption and intensity has reduced by 3.7% and 4.0% respectively since FY13, with office, retail and industrial all recording annual reductions of 2.8% or more. Notable energy savings were achieved at 50 Carrington Street, Sydney, 60 Miller Street, North Sydney, and 452 Flinders Street in Melbourne. Since 2008, like-for-like energy consumption has reduced by 130,000GJ per year while energy intensity has reduced by 36.1%.

On an absolute basis, energy consumption has increased by 15.0% over the past 12 months due to office and retail acquisitions including the CPA portfolio. Energy intensity has increased by 2.8% since FY13, yet remains 30.2% below the FY08 base year. The comparable uplift is due to FY14 acquisitions which have increased the weighting of retail and office property, which is more energy intensive than industrial. For example QV Melbourne, which was acquired in FY14, operates 24 hours per day, resulting in increased energy use when compared to other retail centres.

In the Third Party Funds Management business, a 5.0% reduction was achieved on a like-for-like intensity basis against FY13, or 37.2% since the base year.

Energy use within DEXUS Property Group's corporate tenancies has reduced by 19.4% reflecting the relocation of its head office to an energy efficient workspace within Australia Square, which achieved its targeted 4.5 star NABERS Energy rating in June 2014.

DEXUS PROPERTY GROUP - BY PROPERTY TYPE ENERGY CONSUMPTION

2014 Energy consumption by property type

  1. FY08 represents the Group's base year for performance comparison

DEXUS PROPERTY GROUP LIKE-FOR-LIKE2 - BY PROPERTY TYPE ENERGY CONSUMPTION

Energy consumption by property type like for like

  1. FY08 represents the Group's base year for performance comparison.
  2. Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2014.

The following highlights the intensity performance for the Group and the Group like-for-like portfolios across each sector from the base year of FY08.

energy intensity

DEXUS PROPERTY GROUP - BY FUND ENERGY CONSUMPTION

Energy consumption by fund

  1. FY08 represents DEXUS's base year for performance comparison.

DEXUS PROPERTY GROUP LIKE-FOR-LIKE2 - BY FUND ENERGY CONSUMPTION

Energy consumption by fund like for like

  1. FY08 represents the Group's base year for performance comparison.
  2. Like-for-like portfolio comprises all properties under DEXUS control between 1 July 2012 and 30 June 2014.

The following highlights the intensity performance for the Group and the Group like-for-like portfolios by fund from the base year of FY08.

Energy intensity by fund like for like

WATER CONSUMPTION

Commentary

In FY14, water consumption across the Group increased by 18.5% and water consumption intensity increased by 5.9%. Water use and water consumption intensity have reduced by 3.4% and 17.2% respectively against the base year of FY08. Similar trends are observed across the like-for-like portfolio.

Tenants are ultimately responsible for operational control over water use in the majority of its industrial properties and in FY13, DEXUS Property Group introduced measures to assist tenants in minimise consumption.

The increases in water use are due to a number of factors, primarily due to:

  • Acquisitions during FY14 including the CPA portfolio
  • Re-establishment of irrigation across several industrial properties
  • Tenant usage due to increased occupancy across industrial properties, including Quarry at Greystanes
  • Correction of water metering issues

Water consumption in DWPF'S portfolio reduced by 3.2% since FY13 and 34.6% since the base year on an intensity basis.

DEXUS PROPERTY GROUP - BY PROPERTY TYPE WATER CONSUMPTION

Water consumption by property type

  1. FY08 represents the Group's base year for performance comparison.

DEXUS PROPERTY GROUP LIKE-FOR-LIKE2 - BY PROPERTY TYPE WATER CONSUMPTION

Water consumption by property type like for like

  1. FY08 represents the Group's base year for performance comparison.
  2. Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2014.

The following highlights the intensity performance for the Group and the Group like-for-like portfolios across each sector from the base year of FY08.

Water intensity by property type like for like

DEXUS PROPERTY GROUP - BY FUND WATER CONSUMPTION

Water consumption by fund

  1. FY08 represents the Group's base year for performance comparison.

DEXUS PROPERTY GROUP LIKE-FOR-LIKE2 - BY FUND WATER CONSUMPTION

Water consumption by fund like for like

  1. FY08 represents the Group's base year for performance comparison.
  2. Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2014.

The following highlights the intensity performance for the DEXUS Property Group and the Group like-for-like portfolios by fund from the base year of FY08.

water intensity by fund like for like

CARBON EMISSIONS

Scope 1 and 2 Greenhouse gas emissions

Across the Group, scope 1 and 2 greenhouse gas emissions increased by 14.4% over the past year due to new acquisitions including the CPA portfolio.

Emissions remain 18.0% below the base year. Scope 1 and 2 emissions intensity increased by 2.2% since FY13, yet remain 29.7% below the FY08 base year. The comparable uplift is due to FY14 acquisitions, which have increased the weighting of retail and office, which is more emissions intensive than industrial.

From a like-for-like perspective, the Group achieved a 4.5% reduction in absolute emissions and a 4.8% reduction in emissions intensity. This continues the Group's long term focus on energy efficiency and emissions reduction, with reductions occurring each year resulting in a 37.9% reduction in emissions intensity since 2008.

Across the Group's office and industrial properties achieved intensity reductions of 5.1% and 3.8% respectively, while the emission intensity of the retail portfolio increased by 1.8%, primarily due to the acquisition of Beenleigh Marketplace in Beenleigh and QV in Melbourne during FY14.

Total emissions across Third Party Funds Management have increased by 13.5% since FY13 due to acquisitions while emissions intensity remains steady. Like-for-like emissions have reduced by 5.1% over the past 12 months.

DEXUS PROPERTY GROUP - BY PROPERTY TYPE SCOPE 1 & 2 EMISSIONS

Scope 1 and 2 greenhouse gas emissions by property type

  1. FY08 represents the Group's base year for performance comparison.

DEXUS PROPERTY GROUP LIKE-FOR-LIKE2 - BY PROPERTY TYPE SCOPE 1 & 2 EMISSIONS

scope 1 and 2 greenhouse gas by property type like for like

  1. FY08 represents the Group's base year for performance comparison.
  2. Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2014.

The following highlights the intensity performance for the Group and the Group like-for-like portfolios across each sector from the base year of FY08.

Scope 1 and 2 greenhouse gas intensity by property type

DEXUS PROPERTY GROUP - BY FUND SCOPE 1 & 2 EMISSIONS

scope 1 and 2 ghg by fund

  1. FY08 represents the Group's base year for performance comparison.

DEXUS PROPERTY GROUP LIKE-FOR-LIKE2 - BY FUND SCOPE 1 & 2 EMISSIONS

scope 1 and 2 ghg by fund like for like

  1. FY08 represents the Group's base year for performance comparison.
  2. Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2014.

The following highlights the intensity performance for the Group and the Group like-for-like portfolios by fund from the base year of FY08.

Scope 1 and 2 ghg intensity by fund

SCOPE 3 GREENHOUSE GAS EMISSIONS

Scope 3 emissions are reported for the first time as DEXUS Property Group seeks to quantify its supply chain impacts. Waste management is identified as a material issue and the Group has progressively expanded its waste reporting to 90% of managed office and retail properties in FY14.

Scope 3 emissions sources comprise transmission and distribution losses associated with energy purchases and emissions from tenant and base building waste collected across the Office and Retail properties that is sent to landfill.

Emissions are calculated by applying default emissions factors to waste and energy consumption data.

DEXUS reports scope 3 emissions from its corporate operations to the Federal Government as part of its ongoing commitment to achieve carbon neutrality certification under the National Carbon Offset Standard.

Refer to the DEXUS CR&S website for further details http://www.dexus.com/carbonneutral

DEXUS PROPERTY GROUP - BY SOURCE SCOPE 3 EMISSIONS

Scope 3 emissions by source

DEXUS PROPERTY GROUP LIKE-FOR-LIKE1 - BY SOURCE SCOPE 3 EMISSIONS

scope 3 emissions like for like

  1. Like-for-like portfolio comprises all properties under the Group control between 1 July 2012 and 30 June 2014.

WASTE AND RECYCLING

Commentary and methodology

Over the last 12 months, DEXUS Property Group has expanded waste reporting to the retail portfolio and diverted 49% of waste from landfill across the office and retail portfolios, a 12.7% improvement in the first year of a three year program against the 2012 base year.

Data capture now covers 90% of the Group's lettable area for office and retail properties.

Across the Group, site teams collaborate with waste contractors establish segregated waste collection and to educate tenants on recycling practices in order to maximise the amount of waste that can be diverted from landfill.

Office

Waste data is collected via two primary waste contractors that report waste collection across several waste streams on a monthly basis. Waste is directly weighed at some properties, and these measurements are used to determine average waste density factors which are used to convert volume-based figures collected at remaining sites.

The proportion of waste diverted from landfill continues to improve. In FY14 the Group diverted 63% of waste from landfill, an 8% improvement on the prior year. DEXUS Property Group has committed to a target of achieving a 65% diversion from landfill by 2016 across the office portfolio. Refer to FY15 commitments in DEXUS's 2014 Annual Review.

Industrial

Industrial tenants are diverse in their business, processes and therefore have varied waste management streams. DEXUS provides advice to tenants, where relevant, to assist them in managing their waste and recycling processes.

Retail

Within the DEXUS managed retail portfolio, waste management targets are set for each centre. Waste is collected and directly weighed and data is collated by site teams which work with local waste contractors.

Overall the proportion of waste diverted from landfill was 28%, a 3% reduction on FY13. The retail diversion rate contrasts with the 63% diversion rate achieved across the office portfolio due to differences in the types and volumes of waste across each waste stream. This is attributed to reduced amounts of recyclable paper achieved in the office portfolio and 30% of retail waste comprising organics such as food, with few economically viable recycling options available.

DEXUS PROPERTY GROUP - BY PROPERTY TYPE WASTE AND RECYCLING

waste recycling and diversion landfill by property

  1. FY12 represents the Group's base year for performance comparison.

DEXUS PROPERTY GROUP LIKE-FOR-LIKE2 - BY PROPERTY TYPE WASTE AND RECYCLING

waste recycling and diversion landfill by property like for like

  1. FY12 represents the Group's base year for performance comparison.
  2. Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2014.

The following highlights the waste diversion from landfill performance for the Group and the Group's like-for-like portfolios across Office and Retail sectors from the base year of FY12.

waste diversion rate from land fill

The waste diversion trends follows similar patterns across the two charts as the data collection has been most successful across the established portfolio.

DEXUS PROPERTY GROUP - BY FUND WASTE AND RECYCLING

waste recycling and diversion from land fill by fund

  1. FY12 represents the Group's base year for performance comparison.
  2. FY11 includes partial-year data and included for purposes of trending diversion.

DEXUS PROPERTY GROUP LIKE-FOR-LIKE3 - BY FUND WASTE AND RECYCLING

waste recycling and diversion from land fill by fund like for like

  1. FY12 represents the Group's base year for performance comparison.
  2. FY11 includes partial-year data and included for purposes of trending diversion.
  3. Like-for-like portfolio comprises all properties under the Group's control between 1 July 2012 and 30 June 2014.

The following highlights the waste diversion from landfill performance for the Group and the Group's like-for-like portfolios by fund from the base year of FY12.

waste diversion from landfill by fund

RESOURCE CONSUMPTION METHODOLOGY

The resource consumption data is derived from office, industrial and retail properties under the operational control of DEXUS Property Group for part or all of the 12 months ending 30 June 2014 with the inclusion of DEXUS Head Office.

DEXUS Property Group has applied the principles contained within the National Greenhouse and Energy Reporting Act 2007 and its associated guidelines to determine the operational control of its properties across Australia and New Zealand.

The Group has also included water usage from 11 current and four previously managed Australian industrial properties where water is purchased by DEXUS and consumed by tenants and DEXUS for property maintenance e.g. landscaping. The following joint venture partner controlled properties are omitted as the Group does not maintain operational control:

  • Westfield Miranda, Miranda, NSW
  • Westfield Plenty Valley, South Morang, VIC
  • Westfield North Lakes, Mango Hill, QLD
  • Westfield West Lakes Shopping Centre, West Lakes, SA
  • Westfield Hurstville, Hurstville, NSW
  • Westfield Mount Druitt, Mt Druitt NSW
  • Knox City Shopping Centre, Wantirna South, VIC
  • 5 Martin Place, Sydney NSW
  • 10 Shelley Street, Sydney, NSW
  • 480 Queen Street, Brisbane, QLD
  • 324 Queen Street, Brisbane, QLD
  • Kings Square, Wellington Street, Perth, WA

Refer to the DEXUS 2014 Assurance Criteria for further details including the list of consumption and emission sources, and references for factors that have been applied. The 2014 Assurance Criteria can be found at the DEXUS CR&S website at www.dexus.com/assurance

Like-for-like data has been based on a portfolio whereby operational control and data for energy and water was available for the full 24 month period in FY13 and FY14.

Reporting against DEXUS's 10% energy reduction target is based on a like-for-like data portfolio whereby operational control and data for energy and water was available for the full 36 month period across FY12, FY13 and FY14.

DEXUS has reviewed its environmental dataset to fully align with NGER by adding minor source items and confirming calculation methods and factors. Non-material historical figures have been applied to all years since the 2008 base year and have been restated for consistency. Repetition only occurs when there is an overlap of reporting periods. There may be small discrepancies in the totals in some tables due to rounding.

VOLUNTARY GREENHOUSE GAS ABATEMENT

Commentary

DEXUS Property Group continues its focus on reducing its carbon footprint with investments in renewable and low-carbon technologies and through the purchase of accredited, emission-free GreenPower.

In FY14, the Group generated 69MWh of electricity from solar photovoltaic (PV) and 2,865MWh from gas-powered cogeneration plants. The Group also sourced 12,125MWh of its purchased electricity from GreenPower.

From these activities the Group estimates that it has abated 12,365 tonnes of greenhouse gas emissions, which represents 7.2% of its total Scope 1, 2 and 3 emissions.

ELECTRICITY FROM RENEWABLE AND LOW CARBON SOURCES (MWh)

electricity from renewable and low carbon sources

PROGRESS AGAINST ENERGY REDUCTION COMMITMENT

Commentary

DEXUS Property Group committed to deliver a 10% energy saving over the next three years across its property portfolio. Refer to the Group's FY15 commitments in the 2014 Annual Review.

The table below reports on progress towards the three year target, which is reported in absolute terms on a like-for-like basis against the FY12 baseline.

After two years, the Group is on track to achieve its target having reduced energy consumption by 8.4% against the baseline and reduced by 3.7% within the past 12 months.

Energy reduction commitment

GREEN BUILDING FUND GRANTS

Green building fund grants

STRATEGIC IMPROVEMENT PLANS

strategic improvement plans

Commentary

In FY14, DEXUS completed its first five-year assessment cycle under the Federal Government's Energy Efficiency Opportunities (EEO) Program. EEO has been a highly beneficial and timely program which DEXUS has embraced and actively implemented within its NABERS Improvement Program.

As the table above shows, DEXUS progressively conducted energy and water assessments across assets that covered 80% of total energy use, as required under the EEO program. Through Strategic Improvement Plans (SIPs), significant resource efficiency projects were identified, evaluated and implemented resulting in the substantial improvements in resource efficiency reported since 2008.

The retail resource efficiency program commenced during 2011 with five SIPs in place. This process has not been implemented for the industrial portfolio as SIPs are driven by NABERS benchmarking and there is currently no NABERS industrial rating tool.

In FY14, DEXUS focused on implementing four additional SIPs while consolidating the operational performance of previously implemented projects. During this time DEXUS received its final grant funding amounts from the Federal Government's Green Building Fund.

BENCHMARKS

NABERS ENERGY AVERAGE OFFICE

Commentary

On an absolute (or whole portfolio) basis, the average DEXUS office NABERS Energy rating as at 30 June 2014 was 4.6 stars with GreenPower and 4.4 stars without GreenPower. This represents an incremental improvement of 0.1 stars against FY13.

The average DEXUS office NABERS Energy rating at 30 June 2014 was 4.8 stars on a like-for-like basis, exceeding the 4.5 star target set at the commencement of the NABERS Improvement Program. The like-for-like rating improved as a result of the completion of the portfolio energy efficiency program and an ongoing focus on efficient building operations.

With the completion of DEXUS's NABERS Improvement Program and the inclusion of acquisitions during FY14 including assets from the CPA transaction, DEXUS will report its NABERS average portfolio ratings on an absolute basis from FY15. This is reflected in DEXUS's FY15 commitments to maintain a 4.5 star NABERS Energy rating across the entire DEXUS office portfolio.

Highlights for the year include:

  • 50 Carrington Street, Sydney was purchased as a trading asset in November 2012 with a NABERS Energy rating of 3.0 Stars. DEXUS mobilised quickly to install new chillers, cooling towers, recommissioning and lighting upgrades in order to realise the energy savings. 18 months after the purchase of the property, 50 Carrington Street was awarded a 4.5 Star NABERS Energy rating
  • 1 Bligh Street, Sydney received its inaugural rating of 5.0 stars NABERS Energy (without GreenPower) which is in line with its design target and testament to its innovative design and prior Green Star-As Built Rating
  • 452 Flinders Street, Melbourne and 123 Albert Street, Brisbane each improved 0.5 stars (ex GreenPower) to be 4.0 and 5.5 stars respectively
  • 39 Martin Place, Sydney achieved a 2.5 star NABERS Energy outcome in its first rating since DEXUS acquired the property in early 2013. The asset has improved 1.5 stars from acquisition, assisted by a building-wide lighting retrofit program
  • 30 The Bond, Sydney achieved a 5.5 star NABERS Energy rating and a 4.0 star NABERS Water rating in FY14, delivering a 10 year track record of leadership in sustainability

DEXUS's office portfolio now boasts 27 properties that have achieved a NABERS Energy rating of 5.0 stars or more.

DWPF's weighted average NABERS Energy rating is 4.2 stars; an improvement of 0.3 stars from FY13. The uplift is due to a 0.5 star improvement at 452 Flinders Street in Melbourne, which achieved a 4.5 NABERS Energy rating, demonstrating the successful implementation of its two year sustainability masterplan. The plan included a range of initiatives including lift upgrades, lighting upgrades and building control system optimisation measures.

The improved portfolio rating is also the result of the acquisition of 60 Albert Street in Brisbane and the completion of an inaugural rating at 1 Bligh Street, Sydney, both of which attained 5.0 star ratings.

Nabers energy office by fund

NABERS WATER AVERAGE OFFICE

Commentary

On an absolute or whole portfolio basis, the average DEXUS office NABERS Water rating as at 30 June 2014 was 3.5 stars. This represents an incremental improvement of 0.3 stars against FY13.

The average DEXUS office NABERS Water rating at 30 June 2014 was 3.5 stars on a like-for-like basis, and has remained steady over the past 12 months.

With the completion of DEXUS's NABERS Improvement Program and the inclusion of acquisitions during FY14, including assets from the CPA transaction, DEXUS will report its NABERS average portfolio rating on an absolute basis from FY15. This is reflected in DEXUS's FY15 commitments to maintain a 3.5 star NABERS Water rating across the entire DEXUS office portfolio.

nabers water office by fund

NABERS ENERGY AVERAGE RETAIL

Commentary

The retail portfolio continues its ongoing commitment to energy and water reduction targets through the NABERS rating tool and is seeking further reductions in energy and water usage via optimised operations following recent upgrade works.

Highlights for the year include:

  • The completion of Green Building Fund Grant projects at Capalaba Central Shopping Centre, Tweed City Shopping Centre and Plumpton Marketplace
  • Initiatives undertaken at Willows Shopping Centre, including optimisation of the Building Management and Controls System, plant reconfiguration and lighting installations, have resulted in an increase in the NABERS Energy rating from 2.5 stars to 4.0 stars

The reduction of 0.2 stars across all Third Party Funds Management retail assets is due to the acquisition of Beenleigh Shopping Centre in December 2013, which holds a 2.5 star NABERS Energy rating, and the 0.5 star decrease in the NABERS Energy rating to 3.5 stars at Smithfield Shopping Centre.

nabers energy retail by fund

NABERS WATER AVERAGE RETAIL

The DWPF portfolio's NABERS Water rating improved by 0.2 stars to 4.2 stars against FY13 due to the acquisition of Beenleigh Shopping Centre, which holds a 4.5 star NABERS Water rating, and a 1 star increase in the rating at Willows Shopping Centre, which enhanced its rating from 3 stars to 4 stars.

The reduction of 0.3 stars across all Third Party Funds Management retail assets is related to 0.5 star decreases in ratings at Smithfield and Tweed Shopping Centres, offset in part by a 0.5 star improvement in the NABERS Water rating Plumpton Marketplace.

nabers energy retail by fund

APPENDIX

BUILDING NABERS RATINGS - OFFICE (JUNE 2014)

nabers office ratings

nabers office ratings 2

nabers office third party

BUILDING NABERS RATINGS - RETAIL (JUNE 2014)

nabers retail third party