HY16 Results Release and Review

17 February 2016

2016 Half year results – Dexus delivers across key earnings drivers

Dexus (Dexus) today announced its results for the six months ended 31 December 2015. Key financial and operational highlights for the period included:

Dexus Chief Executive Officer, Darren Steinberg said: “Our results reflect the delivery of our strategy. The core property business has performed well, our funds management business has recorded good results, and we’ve achieved excellent outcomes in development and trading.

“Revaluation gains across our property portfolio drove the majority of the increase in Statutory net profit and NTA per security, as recent comparable market transactions drove cap rate compression at properties with strong tenant covenants.

“Pleasingly we also achieved an employee engagement score of 84% in Dexus’s latest Towers Watson employee engagement survey results, which is six percentage points higher than the Australian National Norm.”

FINANCIAL HIGHLIGHTS

• Funds from Operations1 (FFO) of $323.9 million, up 25.3% on the previous corresponding period
• Adjusted Funds from Operations2 (AFFO) of $230.7 million, up 22.3% on the previous corresponding period
• Statutory net profit of $797.5 million, up 209.3% on the previous corresponding period driven primarily by $533.7 million of revaluations in the six months ended 31 December 2015
• FFO per security of 33.4 cents and distribution per security of 23.05 cents, both up 17.1% on the previous corresponding period
• Group Management Expense Ratio3 of 40bps, down 3bps from the previous corresponding period
• Net tangible assets (NTA) per security of $7.25 at 31 December 2015, up 57 cents from 30 June 2015
• Gearing4 of 29.5%, maintaining Dexus’s financial strength

OPERATIONAL HIGHLIGHTS

Dexus property portfolio

• Achieved strong one-year total returns across Dexus Office (+14.8%) and Industrial (+16.7%) portfolios
• Significant leasing activity with 245 leasing deals undertaken across 242,596 square metres11
• Improved Industrial portfolio occupancy by 1ppt to 93.4% and WALE by 0.6 years to 4.6 years
• Completed developments at 5 Martin Place, Sydney and Kings Square, Perth, with 480 Queen Street,
• Brisbane nearing completion

Third Party Funds Management

• Achieved a one-year total return of 14.8% in the Dexus Wholesale Property Fund (DWPF) and an annualised unlevered property return of 16.0% since inception in the Dexus Office Partnership, exceeding respective benchmarks
• Increased Third Party Funds under management to $10.6 billion, up 11% from 30 June 2015, achieved through acquisitions, developments and revaluations

Trading

• Settled on the sale of trading properties at Rosebery and Mascot, securing $63.3 million5 of trading profits net of tax, in line with FY16 guidance
• Announced the sale of 57-65 Templar Road in Erskine Park, to contribute to FY17 trading profits
• Achieved leasing outcomes at properties at Parramatta, St Leonards and Auburn enabling developments to proceed, subject to appropriate regulatory approvals

Transactions

• Divested 36 George Street, Burwood6 for $95 million, representing a 44% premium to book value
• Entered into a binding Implementation Agreement with Investa Listed Funds Management Limited (ILFML) the responsible entity of Investa Office Fund (IOF) under which Dexus will seek to acquire all of the units in IOF, subject to certain conditions

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