Profile Disclosures

Market Leadership, Sustainable Growth, Financial Performance and Capital

= fully reported = partially reported = not reported

STANDARD DISCLOSURES PART I: PROFILE DISCLOSURES
Profile Description Reported Response Reference link

Strategy and analysis

1.1 Statement from the most senior decision-maker of the organisation.

Strategy Annual Review pgs  7-11
CR&S strategy Annual Review pgs 10-11

Letter from the Chair Annual Review pgs 14-16

Chief Executive Officer's report Annual Review pgs 17-21

1.2 Description of key impacts, risks, and opportunities.

Strategy Annual Review pgs 7-11

CR&S strategy Annual Review pgs 10-11

Letter from the Chair Annual Review pgs 14-16

Chief Executive Officer's report Annual Review pgs 17-21

Delivering commitments Annual Review pgs 22-25

Carbon Disclosure project 2014 Questions 2.1(a)(b), 5, 6 pgs 5, 18, 24

Organisational profile

2.1 Name of the organisation. Dexus
2.2 Primary brands, products, and/or services. Dexus's primary products/brands/services are detailed on its website.

Dexus Investor centre

Third Party Funds

2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures. Dexus's organisational structure is publicly available on its website.

Corporate structure

Group Management Committee

2.4 Location of organisation's headquarters. Level 25, Australia Square, 264-278 George Street Sydney NSW 2000

Directory

2.5 Number of countries where the organisation operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Dexus operates in Australia and New Zealand

Properties

2.6 Nature of ownership and legal form. Dexus (Dexus) is a publicly traded real estate investment trust listed on the Australian Securities Exchange

About Dexus

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

About Dexus

Dexus portfolio Annual Review pg 32-33

Dexus Office Annual Review pgs 34-35

Dexus Industrial Annual Review pgs 40-41 Third Party Funds Annual Review pgs 50-51

Dexus Retail Annual Review pgs 54-55

Properties

2014 property synopsis

2.8 Scale of the reporting organisation.

Consolidated statement of financial position Annual Report pg 49

About Dexus Annual Review pgs 2-3

Properties

People and culture Annual Review page 26

Employees

2.9 Significant changes during the reporting period regarding size, structure, or ownership. Successfully completed the $3.4bn takeover of Commonwealth Property Office Fund with partner

Chair's letter Annual Review pgs 14-16

Chief Executive Officer's Report Annual Review pgs 17-21

Delivering on strategy Annual Review pgs 12-13

2.10 Awards received in the reporting period.

Awards

Report parameters

3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Fiscal year 2013 (1 July 2013 - 30 June 2014)
3.2 Date of most recent previous report (if any). Fiscal year 2012 (1 July 2012 - 30 June 2013)
3.3 Reporting cycle (annual, biennial, etc.) Reporting cycle is annual, period ending 30 June 2014
3.4 Contact point for questions regarding the report or its contents.

Investor Enquiries: Registry Infoline: 1800 819 675 Investor Relations: +61 2 9017 1330; or Email: ir@dexus.com

Online enquiry
3.5 Process for defining report content.

Dexus applied the GRI 'Guidance on Defining Report Content', the associated Principles, and the Technical Protocol to determine the content of this report. In 2011, Dexus conducted a series of workshops, attended by key representatives from across the business. These workshops enabled the formal consideration of key business and stakeholder issues. Issues for discussion were identified through analysis of emerging industry trends and through direct stakeholder engagement with tenants, institutional investors and employees. Key stakeholders were identified based on their contribution to and influence on the business. Stakeholder issues were then prioritised based on a score measuring both impact and influence, with the top 14 selected for focus. In line with the revised strategy in 2012, the topics were also reviewed in light of current and future performance and material topics refined to the top 10. In 2014, Dexus developed a plan to transition from GRI version 3.1 to its materiality-based G4 sustainability reporting guidelines for reporting in FY15. The plan involves four phases in which Dexus will systematically: 1. Scan internal and external collateral and review existing and emerging material issues that are known to be or potentially relevant to the Group as identified by local and international best-practice peers, investment bodies, sustainability benchmarking tools and industry associations 2. Engage with a wide range of stakeholders to consult with them on existing and emerging material issues and gather feedback on current reporting disclosure 3. Conduct workshops and business forums with the Group's employees to prioritise material issues based on their significance and likely impact to Dexus and its stakeholders 4. Prepare to report in FY15 by reviewing the Group's strategy and set targets against the developed list of material issues and proceed to collect and report against these issues The Group completed the review phase in FY14 and those outcomes have been used as input for this report. The Group will continue its transitional work in preparation for reporting against GRI G4 in FY15.

FY12 commitments

FY13 commitments

FY14 commitments

About the 2014 Annual Review

Overview

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

The 2014 Annual Review is a consolidated summary of Dexus's operational and financial performance for the financial year ended 30 June 2014.

Environmental data includes data from Australian and New Zealand properties under Dexus's operational control as defined under the National Greenhouse and Energy Reporting System (NGERS). Data from properties where Dexus does not have operational control is not reported as these properties are operated by joint venture partners or tenants directly.

About the 2014 Annual Review

3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

Environmental data includes only properties located in Australia and New Zealand under Dexus's operational control as defined under the National Greenhouse and Energy Reporting System (NGERS). The boundary and scope address the full range of material, economic, environmental and social impacts.

Report scope

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations.

The resource consumption data for Australia and New Zealand is from all office, industrial and retail properties under the operational control of Dexus during the reporting period between 1 July 2013 and 30 June 2014 with the inclusion of Dexus head office and jointly owned properties where Dexus has operational control. Properties managed by joint venture partners on behalf of Dexus are omitted from the dataset.

Additional information on the properties omitted can be found in 2014 Performance Pack -Environment. For full details of tenant profiles across the Dexus portfolio, refer to 2014 property synopsis.

Environmental performance

2014 property synopsis

3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.

All methodology and calculation assumptions and techniques applied in the compilation of the GRI Indicators and other information in the report are disclosed within the relevant sections of the 2014 Performance Pack.

Overview

Assurance criteria

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Dexus has reviewed its environmental dataset to fully align with NGER by adding minor source items and confirming calculation methods and factors. This has resulted in non-material restatements of historical figures which have been applied to all years since 2008 base year for consistency. Figures in some tables may not sum due to rounding. Repetition only occurs when there is an overlap of reporting periods.

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

There have been no significant changes from previous reporting periods in the boundary, or measurement methods applied in the report. Dexus has expanded the scope of reporting to include all energy and emission sources that are reportable under NGER, and has reported on Scope 3 emissions from its operations attributable to transmission and distribution losses, and emissions from waste sent to landfill for the first time.

3.12 Table identifying the location of the Standard Disclosures in the report.

This GRI Context Index table.

3.13 Policy and current practice with regard to seeking external assurance for the report.

PricewaterhouseCoopers (PwC) has provided Limited Assurance over key aspects of Dexus's sustainability performance as reported in the 2014 Annual Review and within the online reporting suite on the Dexus website.

PwC opinion letter

Assurance criteria

Governance, commitments and engagement

4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organisational oversight.

Dexus Funds Management Limited (DXFM) is the Responsible Entity of each of the four trusts that comprise Dexus. DXFM is also responsible for the management of a number of third party funds and mandates. Dexus's corporate governance framework applies to all funds and mandates. Refer to the terms of reference for the Board and Board Committees for details of their mandates and composition (including number of independent members and/or non-executive members). At 30 June 2014 female participation at the Board level was 43% of non-executive directors and 33% of all directors. Female participation across senior management was 26% at 30 June 2014.

Board committees

Corporate governance overview

Corporate Governance statement Annual report pgs 8-11

Corporate Governance snapshot Annual review pgs 70-71

Employees

4.2 Indicate whether the Chair of the highest governance body is also an executive officer.

Chris Beare is both the Chair and an Independent Director of Dexus Funds Management Limited. Chris is the Chair of the Board Nomination, Committee and a member of the Board People & Remuneration Committee.

Chris Beare

Board of Directors Annual review pgs 66-67

4.3 For organisations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.

The Dexus Board is a unitary Board. At 30 June 2014, there were seven Independent (non-executive) Directors, three of whom were female, and two executive Directors (CEO and CFO). The unitary board is a one tier board in which the Board of Directors functions as a collectively appointed corporate body. There are Executive and Non-Executive Directors who are elected to work together for long-term sustainable value of the company.

Board of Directors Annual review pgs 66-67

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Dexus has four Board Committees to assist in fulfilment of its responsibilities.

There are six committees advising the Group Management Committee (the senior executives of the organisation). Employees are able to make recommendations through these forums as well as directly to senior management.

Security holders may attend the Annual General Meeting (AGM) in person to meet the Board of Directors and Executive team. The Investor Relations team facilitate engagement with investors including regular meetings with investors. A feedback mechanism and enquiry facility is available on the Dexus website to facilitate investor and stakeholder feedback. Additionally, investors can make enquiries through the Registry infoline.

Investor enquiries were materially related to their investment i.e. distributions, tax statements, performance and limited enquiries on CR&S topics.

Corporate governance statement Annual Report pgs 16-17

Investor enquiries

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organisation's performance (including social and environmental performance).

The Board Nomination, Remuneration & Governance Committee (now split into two committees being the Board Nomination Committee and the Board People and Remueration Committee) ensures appropriate compensation arrangements and linkages to performance exist. CR&S KPIs are included in objectives setting across the Group. There are STI linkages with social and environmental performance for specific employees responsible for delivering related KPIs.

Corporate governance statement Annual Report pg 11

Board Nomination, Remuneration & Governance Committee Annual Report pg 18

Remuneration Report Annual Report pg 21

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

The Group has strict policies which address conflicts of interest including: Director Code of Conduct; Employee Code of Conduct; Conflicts of Interest Policy; Securities Trading Policy (including Inside Information); and Gifts and Entertainment. Potential conflicts and related party transactions are overseen by the Compliance Manager and are reported on a regular basis to the Board.

Corporate governance statement Annual Report pgs 12-14

4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

The Board Nomination, Remuneration & Governance Committee advises the Board in fulfilling its responsibilities by overseeing all aspects of Director, Group Management Committee and Key Management Personnel remuneration, and Board nomination and performance evaluation. The Committee also oversees aspects of Human Resources management.

Board policies

Selection and appointment of new Directors

DXFM structure

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

About Dexus

Strategy Annual Review pgs 6-11

Corporate governance overview

Supplier code of conduct

Procurement policy

UNPRI Transparency report

4.9 Procedures of the highest governance body for overseeing the organisation's identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.

The management of risk is an important aspect of Dexus's activities, and the Group has a segregated risk function reporting to the General Counsel on a day-to-day basis, as well as a Compliance, Risk, Ethics & Sustainability Committee that has an independent reporting line to the Board Audit, Risk & Sustainability Committee. The General Manager, Compliance, Risk & Governance has direct access to the Chief Executive Officer and Independent Directors. To oversee risk management at Dexus, the Board has established a Board Audit, Risk & Sustainability Committee (now Risk Committee) responsible for reviewing the integrity and quality of the Group's financial statements and disclosures including auditing, accounting and financial reporting processes. The Committee also oversees the Group's enterprise risk management practices, other than that specifically overseen by the Finance Committee, as well as its internal audit and corporate responsibility & sustainability practices and procedures.

Recognise and manage risk Annual Report pgs 17-18

Dexus committees terms of reference

4.10 Processes for evaluating the highest governance body's own performance, particularly with respect to economic, environmental, and social performance.

The Board Nomination, Remuneration & Governance Committee oversees the Board performance evaluation program which extends over a two year period. Board and Committee performance is evaluated one year, and individual Director performance is evaluated the following year. Every third year, Dexus uses an external third party to conduct its Board performance evaluation.

The Chair conducted a series of interviews with new and existing Independent Directors to seek their views of Board and Board Committee performance. These discussions led to several improvements to Committee structures and memberships being made, effective 1 July 2012. This is an annual process.

Each Committee has a standing item to address at each meeting any improvement to reporting or process that would benefit the Committee as well as any items that require immediate reference to the Board, or regulator (where applicable).

Corporate Governance Statement - Performance Annual Report pg 11

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation.

The Compliance, Risk & Governance team oversees Dexus's risk, compliance and corporate governance programs. These programs support the development and implementation of compliance, risk management and corporate governance procedures across the business to minimise risk. In line with the precautionary approach, activities that could potentially cause harm to the public or the environment receive heightened focus. Where the risk of human or environmental harm is high, the activity is not undertaken. Dexus has developed both a Compliance Management Framework and Risk Management Framework outlining how compliance and risk is addressed and managed at Dexus.

Recognise and manage risk Annual Report pgs 17-18

Corporate governance policies

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses.

Dexus's corporate voluntary commitments include: United Nations Principles for Responsible Investment (UNPRI), Carbon Disclosure Project (CDP), National Carbon Offset Standard (NCOS), FTSE4Good, CitySwitch, Better Buildings Partnership, Dow Jones Sustainability Indexes (DJSI) and Global Real Estate Sustainability Benchmark (GRESB).

Dexus has been committed to CitySwitch, CDP, DJSI and AuSSI since the FY09 period, and subsequently was acknowledged by FTSE4Good. Dexus signed up to the United Nations Principles for Responsible Investment (UNPRI) and the Investor Group on Climate Change (IGCC) during the FY10 period.

As a signatory to the UNPRI, Dexus is committed to responsible investment and business practice and to corporate responsibility and sustainability considerations, and is obligated to report annually on its responsible investment approach. The IGCC represents institutional investors, who take a responsible position on climate change and are committed to climate change disclosure, best practice approaches and raising awareness amongst investors.

During FY11, Dexus became a founding member of the City of Sydney's Better Building Partnership, which aims to improve the sustainability performance of existing commercial and public sector buildings across inner Sydney.

FY14 is the fourth year that Dexus has been certified carbon neutral for its head office, and the second year for its Melbourne office under NCOS.

Statutory reporting obligations include Energy Efficiency Opportunities (EEO) which commenced in 2011, National Greenhouse and Energy Reporting Scheme (NGERS) since introduction and Commercial Building Disclosure (CBD).

Stakeholders include the government and organisations captured by energy use thresholds and property types. Dexus properties are assessed against the NABERS suite of rating tools and the Green Building Council of Australia's Green Star tools.

Memberships & affiliations

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organisations in which the organisation: * Has positions in governance bodies * Participates in projects or committees * Provides substantive funding beyond routine membership dues or * Views membership as strategic

Dexus participates in several Australian and international associations and organisations. Memberships are regularly reviewed for relevance to the business and alignment with the corporate strategy. They include: the Property Council of Australia, where the Dexus CEO is the Chairman; the Investor Group on Climate Change (IGCC); the Green Building Council of Australia; and the Better Building Partnership Leadership Panel and technical working groups. Dexus is also a signatory to the United Nations Principles for Responsible Investment (UNPRI) and an Investor Member of the Carbon Disclosure Project (CDP).

Memberships & affiliations

4.14 List of stakeholder groups engaged by the organisation. Dexus engages regularly with its key stakeholder groups comprising investors, tenants, employees, suppliers and the community. These groups are recognised within Dexus's CR&S framework.

Framework & stakeholders Annual Review pg 10

Delivering committments Annual Review pgs 22-25

Our stakeholders

Investors

Investors Annual Review pgs 76-77

Tenants

Tenants/Customers Annual Review pg 38

Suppliers

Supplier performance

Employees

People and Culture Annual Review pgs 28, 30

Community

4.15 Basis for identification and selection of stakeholders with whom to engage.

Dexus referred to the GRI Sustainability Reporting Guidelines (version 3.1) to set the report's boundaries in relation to material issues and key performance indicators.

Stakeholder groups were identified through hosting materiality workshops in FY11 and were reviewed in FY14 to confirm they remain relevant across the business. Within these workshops Dexus reviewed internal and external source material including reports, survey feedback and other engagement collateral to identify a list of key material issues, and link each issue to relevant stakeholder group(s). The list was then prioritised based on Dexus's assessment of stakeholder interest and impact, as well as Dexus's ability to influence each issue.

Through this process Dexus identified its key stakeholders as comprising current and prospective investors, employees, tenants, customers, suppliers and the community. Dexus's CR&S framework and engagement strategy has been developed to effectively engage with these key stakeholders to understand and respond to their needs, as well as focusing on environmental performance and relevant issues.

About this 2014 Annual Review

Performance pack overview

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

Dexus's stakeholder engagement framework seeks to tailor its relationships with each individual stakeholder group. Dexus regularly surveys its major stakeholder groups including semi-annual investor survey (DXS and DWPF investors), annual tenant surveys (across office, industrial and retail) and the annual employee engagement survey. In FY14 Dexus also surveyed twelve of its major tier 1 suppliers.

In preparing the 2014 Annual Review, Dexus engaged with employees across the business for their input regarding performance informaiton and commentary, as well as details of their engagement with external stakeholders, including survey results. Dexus also engaged directly with investor representatives via one-on-one sessions to gather their input. From their feedback Dexus enhanced the structure and content within the 2014 Annual Review to improve performance and strategy disclosure, via new sections such as Trading and Retail.

Dexus also engages regularly in a variety of ways, including: committees and working groups; one-on-one meetings; monthly distribution of information; partnerships; memberships; and online and postal feedback mechanisms.

Dexus identified material issues through stakeholder engagement and a materiality workshop in FY11. These issues were reviewed for relevance in FY12, FY13 and FY14.

Dexus also presents its half year and annual results together with quarterly operational performance. These presentations are webcast through the Dexus website and allow for investor Q&A from investors present at the meeting as well as via phone. Investors are also able to engage with the Board at the AGM, which is also webcast. Dexus has an Investor Relations Application available on smart phones.

Framework and stakholders

Delivering committements

Our stakeholders

Investors

Investors Annual Review pgs 76-77

Tenants

Tenants/Customers Annual Review pg 38

Suppliers

Supplier performance

Employees

People and Culture Annual Review pgs 28, 30

Community

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting.

Dexus is focused on delivering superior returns to investors while adopting leading CR&S practice. To ensure report content is relevant and material, both to the overall corporate strategy and to key stakeholders, commitments have been developed taking into account the findings of a materiality assessment workshop in FY11. This identified the most material issues for the organisation which were reviewed for relevance in FY12 and FY13.

In 2014, Dexus developed a plan to transition from GRI version 3.1 to its materiality-based G4 sustainability reporting guidelines for reporting in FY15. The plan involves four phases in which Dexus will systematically: 1. Scan internal and external collateral and review existing and emerging material issues that are known to be or potentially relevant to the Group as identified by local and international best-practice peers, investment bodies, sustainability benchmarking tools and industry associations 2. Engage with a wide range of stakeholders to consult with them on existing and emerging material issues and gather feedback on current reporting disclosure 3. Conduct workshops and business forums with the Group's employees to prioritise material issues based on their significance and likely impact to Dexus and its stakeholders 4. Prepare to report in FY15 by reviewing the Group's strategy and set targets against the developed list of material issues and proceed to collect and report against these issues

The Group completed the review phase in FY14 and those outcomes have been used as input for this report. The Group will continue its transitional work in preparation for reporting against GRI G4 in FY15.

Risk reviews are conducted by an experienced team using up-to-date information on market developments, regulatory changes and organisational performance and these are prioritised according to their materiality to Dexus's business.

About 2014 Annual Review

Corporate Responsibility & Sustainability Annual Review pgs 10-11

Delivering commitments Annual Review pgs 22-25

Report scope Annual Review pg 80

Performance pack overview