FY15 Performance Against Commitments

 = Achieved   = Not achieved  = Underway

Commitment Status FY15 Achievements
Deliver PCA FFO of 59.04 cents per security Delivered PCA FFO of 59.5 cents per security, in line with guidance, an increase of 9.3% on FY14
Refer to the Chair and CEO's Review and Group Performance
Deliver a return on equity of 9-10% Delivered a return on equity of 11.5 %, above the 9-10% target through the cycle
Refer to the Chair and CEO's Review and Group Performance
Deliver long term top quartile performance relative to DEXUS's target peer group and industry benchmarks Outperformed the S&P/ASX200 Property Index on a 5-year and 10-year basis, and achieved top quartile performance over a 10-year period
Refer to the Chair and CEO's Review
Report under GRI G4 reporting standards and undertake a materiality assessment Completed a materiality assessment and reported under GRI G4 reported standards
Refer to Material Issues and 2015 Performance Pack
CAPITAL MANAGEMENT
Take advantage of improved credit rating metrics to reduce cost of debt Reduced cost of debt by 20bps to 5.2% supported by credit rating upgrades
Refer to Group Performance
Improve diversification and length of the debt profile through refinancing bridge funding Secured US$250m long-dated USPP improving diversification and debt maturity profile
Refer to Chair and CEO's Review and Group Performance
Maintain gearing at the lower end of the target range 30-40% Raised $478m of equity, reducing gearing to 28.5% at 30 June 2015, below the target range of 30-40%
Refer to the Chair and CEO's Review and Group Performance
OFFICE AND INDUSTRIAL
Maintain >95% occupancy in the DEXUS office portfolio Achieved 95.3% office portfolio occupancy in line with target of >95%
Refer to Delivering FY15 Commitments and Office
Reduce the Sydney office portfolio lease expires in FY16-FY17 to under 8.5% and 9.5% respectively Reduced office FY16 expiries to 8.8% and FY17 expiries to 12.7%. The FY17 expiry target was revised upward to 10.5% against the respective targets of 8.5% and 9.5%, due to the impact of short term leasing
Refer to Delivering FY15 Commitments and Office
Target positive like-for-like income growth across the DEXUS combined portfolio Achieved 0.3% like-for-like income growth in line with target of positive like-for-like income growth
Refer to Office and Industrial
Focus on reducing incentives and undertaking effective leasing deals Reduced office incentives to 15.0% (18.6% in FY14) and secured 85 effective deals (29 in FY14)
Refer to Office
Deliver trading profits of approximately $40m Delivered trading profits of $42.6m in line with target of approximately $40m
Refer to Delivering FY15 Commitments and Trading
THIRD PARTY FUNDS MANAGEMENT
Continue to achieve top quartile performance for DWPF DWPF continued to outperform its benchmark over three and five year periods
Refer to Delivering FY15 Commitments and Third Party Funds Management
Continue to deliver on investment plans and objectives for capital partners Delivered a 12.7% unlevered total return for the DEXUS Office Partnership portfolio in the 12 months to 30 June 2015.
Acquired four properties on behalf of DWPF and three properties in joint venture with DEXUS Industrial Partner
Refer to the Chair and CEO's Review, Delivering FY15 Commitments and Third Party Funds Management
Leverage retail management team to enhance performance Leased 74,834sqm of retail space, commenced development at three retail projects and three city retail projects
Refer to Third Party Funds Management

DEXUS Portfolio Snapshot

Key Metrics FY11 FY12 FY13 FY14
(Pre-CPA)
FY14
(Post-CPA)
FY15
Portfolio value ($A) DEXUS portfolio $7.5bn $6.9bn $7.4bn $7.3bn $9.1bn $9.5bn
Office $4.5bn $4.7bn $5.9bn $5.7bn $7.7bn $7.8bn
Industrial $1.6bn $1.7bn $1.4bn $1.6bn $1.4bn $1.7bn
Industrial US* (US$) $1.3bn $549.5m - - - -
Net lettable area (sqm) DEXUS portfolio 4,236,274 2,468,446¹ 1,724,800 1,775,487¹ 1,993,729 2,697,990
Office 760,990 759,737 951,380 682,207 1,490,070 1,403,255
Industrial 1,146,778 1,239,101 1,251,152 1,254,588 1,254,588 1,294,735
Industrial US* (sqf) 23.7m 6.4m - - - -
Funds From Operations³ Office n/a n/a n/a n/a 455.4 533.3
Industrial n/a n/a n/a n/a 122.8 112.3
Like-for-like income growth Office 3.3% 5.4% 3.6% 1.8% - 0.2%
Industrial 1.1% (1.6%) 1.5% 1.1% 1.5% 0.7%
Industrial US* (4.5%) 3.8% - - - -
Occupancy
(by income)
DEXUS portfolio 93.6% 95.8% 94.7% 94.9% - -
Office 95.3% 96.8% 95.2% 94.6% 94.6% 95.3%
Industrial 95.1% 92.8% 93.0% 96.1% 93.0% 92.4%
Industrial US* 97.4%4 98.2% - - - -
Occupancy
(by area)
DEXUS portfolio 88.7% 93.4% 94.1% 95.3% - -
Office 96.2% 97.1% 94.7% 94.4% 94.3% 95.5%
Industrial 96.2% 91.7% 93.1% 95.9% 93.1% 91.7%
Industrial US* 97.7% 97.1% - - - -
Lease duration (by income) DEXUS portfolio 5.0 years 4.7 years 4.7 years 4.8 years n/a n/a
Office 5.3 years 4.9 years 4.9 years 5.0 years 4.7 years 4.3 years
Industrial 4.7 years 4.4 years 4.0 years 4.1 years 4.0 years 4.0 years
Industrial US* 4.5 years4 4.4 years - - - -
Weighted average capitalisation rate DEXUS portfolio 7.7% 7.51%2 7.13% 7.47% - 6.88%
Office 7.4% 7.30% 6.87% 7.17% - 6.71%
Industrial 8.6% 8.59% 8.32% 8.55% 8.32% 7.77%
Industrial US* 6.6%4 6.3% - - - -
1 year total return Office 9.0% 9.5% 9.2% 10.6% - 9.6%
Industrial 9.4% 8.0% 9.0% 8.8% 9.0% 11.3%
Industrial US* 14.3% 10.0% - - - -

1 Reduction is due to the sale of the US and European portfolios.

2 7.68% on a like-for-like basis excluding discontinued operations.

3 On 1 July 2014, the Group adopted the Property Council of Australia definition of FFO. The Directors consider FFO to be a measure that reflects the underlying performance of the Group. FFO 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, rental guarantees, coupon income and distribution income net of funding costs.

4 Industrial US west coast portfolio only at FY11. The Industrial US portfolio was completely sold as at 30 June 2013.

* The Industrial US portfolio was completely sold as at 30 June 2013.


Financial Highlights

Key Metrics FY11 FY12 FY13 FY14 FY15
Net profit after tax ($m) 553.0 181.1 514.5 406.6 618.7
Funds From Operations ($m) 358.0 367.8 365.4 446.6 544.5
Funds From Operations (cents per security) 7.40 7.65 7.75 8.34 59.5²
Distribution (cents per security) 5.18 5.35 6.00 6.26 41.04²
NTA per security ($) 1.01 1.00 1.05 1.06 6.68²
Gearing (%)¹ 28.4 27.0 29.0 33.7 28.5
Total shareholder return (%) 21.3 12.2 22.1 9.9 15.8

1 Adjusted for cash and for debt in equity accounted investments. Refer to 2015 DEXUS Annual Report for gearing definition.

2 DEXUS completed a one-for-six Security Consolidation in November 2014.

For more financial information refer to the 2015 DEXUS Annual Report.

DEXUS PERFORMANCE AGAINST A-REIT INDEX
DEXUS Performance Against A Reit Index


DEXUS TOTAL SECURITY HOLDER RETURN
Dexus Total Secuity Holder Return


Capital Management

Key Metrics FY11 FY12 FY13 FY14 FY15
Cost of debt¹ 6.6% 6.1% 5.9% 5.4% 5.2%
Duration of debt 4.2 years 4.2 years 5.4 years 5.2 years 5.7 years
Hedged debt 82% 73% 64% 60% 69%
Gearing² 28.4% 27.2% 29.0% 33.7% 28.5%
Headroom (approximately)³ $0.6bn $0.6bn $0.3bn $0.5bn $0.8bn
S&P/Moody's credit rating BBB+/Baa1 BBB+/Baa1 BBB+/Baa1 A-/A3 A-/A3

1 Weighted average across the period, inclusive of fees and margins on a drawn basis.

2 Adjusted for cash and for debt in equity accounted investments. Refer to glossary for gearing definition. DEXUS's gearing of 28.5% at 30 June 2015 will increase to approximately 29.3% post the divestment of the Rosebery and Mascot trading properties and the acquisition of the Waterfront Place Complex which is expected to settle in October 2015.

3 Undrawn facilities plus cash. Excluding forward start commitments.

DEBT MATURITY PROFILE¹
DEBT MATURITY PROFILE

1 Current position at 12 August 2015 including domestic MTNs in equity accounted investments.

DIVERSIFIED MIX OF DEBT¹
DIVERSIFIED MIX OF DEBT

1 Current position at 12 August 2015 including domestic MTNs in equity accounted investments.

INTEREST RATE HEDGING MATURITY PROFILE¹
INTEREST RATE HEDGING MATURITY PROFILE

1 Current position at 12 August 2015.


Interest Rate Hedging Profile

Interest Rate Hedging¹ FY15 FY16 FY17 FY18 FY19 FY20
A$ net fixed coupon debt² 593 485 339 362 170 89
A$ interest rate caps 240 240 70 - - -
A$ interest rate swaps 1,498 1,438 1,575 1,512 1,323 670
Total hedged A$m 2,330 2,163 1,984 1,874 1,493 758
Hedge rate (excluding margin)³ 3.65% 3.54% 3.58% 3.76% 3.88% 3.75%

1 Average amount hedged for the period (excluding caps). Average for the full year (including caps) was 76%. DEXUS was 95% hedged (including caps) as at 30 June 2015.

2 Gross fixed coupon less the amount converted to floating rate basis via coupon matched swaps.

3 Weighted average rate of fixed debt, swaps and caps for the period. Caps included at a rate equal to the lower of cap strike and forecast floating rate for the applicable period.


Debt Facilities¹

Facility limit
A$m
Drawn
A$m
Maturity dates Currency
Bilateral bank debt 150.0 150.0 Mar 16 A$
100.0 54.5 Jul 16 A$
50.0 37.5 Jan 16 A$
250.0 196.5 Oct 17 - Dec 17 A$
475.0 321.0 Jan 18 - Aug 18 A$
325.0 10.0 Jan 19 - Mar 19 A$
350.0 141.5 Nov 19 - Jun 20 A$
Commercial paper 100.0 100.0 Aug 16² A$
Medium term notes 210.0 210.0 Apr 17 A$
205.0 205.0 Sep 18 A$
US senior notes (144A)³ 287.4 287.4 Mar 21 US$
US senior notes (USPP)³ 39.2 39.2 Dec 16 - Mar 174 US$
270.9 270.9 Jul 23 - Jul 25 US$
285.9 285.9 Dec 24 - Dec 26 US$
245.0 245.0 Feb 27 - Jul 28 US$
Subtotal 3,343.4 2,554.4
Currency translation and fair value adjustments 233.8 233.8
Deferred borrowing costs (14.1) (14.1)
Total interest bearing liabilities 3,563.0 2,774.0

1 Debt facilities do not include Medium Term Notes included in an equity accounted investment: A$96.3m March 2016, A$74.8m December 2019, A$11.5m December 2022.

2 Maturity date of commercial paper standby facility.

3 144A and USPP amount shown at the cross currency swap contract rate.

4 USPP maturities: US$19m December 2016, US$22m March 2017.