Dexus · ASX:DXS
Dexus — DEXUS Property Group — Investor Presentation (December 2008)
24 slides from Dexus's investor presentation, Dec 3, 2008
Slide 1: DEXUS Property Group Institutional placement
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS DEXUS Property Group Institutional placement 3 December 2008 391.7m securities at $0.73 to $0.84 raising $286m - $329m DEXUS Funds Management Limited ABN 24 060 920 783 Australian Financial Services Licence Number 238163
Slide 2: Important information
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Important information This presentation is issued by DEXUS Funds Management Limited (DXFM) in its capacity as responsible entity of DEXUS Property Group (ASX:DXS). It is not an offer of securities for subscription or sale and
Slide 3: Contents
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Contents Executive summary Capital raising Debt refinancing / Additional headroom DEXUS at a glance Summary Additional information 3
Slide 4: Executive summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Executive summary
Slide 5: Executive summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Executive summary1 DEXUS is committed to a prudent, pro-active approach to maintaining its sound financial position – Debt facilities recently secured to refinance all maturities to February 20102 – Additional debt facility of
Slide 6: Executive summary cont.
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Executive summary cont. Pro forma gearing of 34% post the institutional placement – Significant headroom within 55% gearing covenant1 – No market capitalisation covenant – No off balance sheet debt – BBB+ / Stable S&P credit r
Slide 7: Capital raising
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Capital raising
Slide 8: Capital raising
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Capital raising Institutional placement to raise approximately $286m - $329m and a Security Purchase Plan Institutional placement – Is proposed to be conducted today – 391.7m securities1 – Bookbuild price range $0.73 – $0.84
Slide 9: Valuation metrics
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Valuation metrics At $0.73 per new security Earnings yield1,2 Discount to: 16% 12.9% 14.8% 11.7% − Last price of 13.1% 10.2% 10.8% 7.8% − 1 month VWAP of ($0.84) of 13.2% 8% 5.9% − 3 month VWAP of ($1.13) of 35.6% 0% CFX CPA D
Slide 10: Positions DEXUS for the future
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Positions DEXUS for the future One of the largest, highest quality diversified property groups in Australia Strong balance sheet – Reduces pro forma gearing1 from 37% to 34% – All maturities until February 2010 fully funded
Slide 11: Indicative placement timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Indicative placement timetable Activity Timing Institutional bookbuild opens 10.00am Wednesday 3 December 2008 Institutional bookbuild closes 2.30pm Wednesday 3 December 2008 Settlement of placement securities Tuesday 9 December
Slide 12: Debt refinancing / Additional headroom
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Debt refinancing / Additional headroom
Slide 13: Refinancing CY09 expiries
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Refinancing CY09 expiries DEXUS maintains strong relationships with Debt maturity profile1 its lenders Refinanced $500m CMBS due April 2009 1,600 Post capital raising – $250m announced in August 2008 1,410 Debt duration –
Slide 14: DEXUS at a glance
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS DEXUS at a glance
Slide 15: DEXUS at a glance
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS DEXUS at a glance One of the largest owner, manager and developers of high quality property in Australia and selected international markets 96%1 of operating earnings derived from net property income Properties continuing
Slide 16: Office portfolio highlights – Australia and New Zealand
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Office portfolio highlights – Australia and New Zealand High quality, strategically located office portfolio – 95%1 premium or A grade assets – 71%1 located in Sydney market, of which 85%1 in Sydney CBD – 18,000 sqm of leases2
Slide 17: Australian industrial portfolio
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Australian industrial portfolio Strategically located and diversified portfolio of quality industrial properties with high exposure to the key Sydney and Melbourne markets1 − Over 66,700 sqm of leases negotiated in Q1 FY09 rep
Slide 18: International industrial portfolio
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS International industrial portfolio North America1 Assets strategically located in key sub-markets Occupancy 92% Tenant retention 74% as at 30 June 2008 Geographical allocation by market2 Weighted average lease expiry 4.1
Slide 19: Committed developments and acquisitions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Committed developments and acquisitions 1 Bligh Street, 123 Albert Street, 60 Miller Street, Whirlpool Sydney1 Brisbane Sydney Premium grade 28 level, Premium grade 24 level, Redevelopment A grade office Whirlpool indust
Slide 20: Third party funds management business – stable and significant
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Third party funds management business – stable and significant One of the largest third party platforms in Australia In FY08, third party funds increased by 39% to $6.4bn1 DEXUS has no equity interest or contingent exposur
Slide 21: Summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Summary
Slide 22: DEXUS is well positioned for the future
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS DEXUS is well positioned for the future Clear vision and strategy High quality portfolio Stable and sustainable property earnings Quality developments adding value Strong balance sheet with low gearing Experienced ma
Slide 23: Additional information
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Additional information
Slide 24: Gearing post capital raising
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS Gearing post capital raising1 Pro Forma Pro Forma Actual Incl FX + MTM adj Post Capital Raising Consolidated, $ million Jun-08 Jun-08 Jun-08 Total Assets2 9,349 10,150 10,150 Payables, Provisions and Other3 507 810 803 Interest
DEXUS Property Group — Investor Presentation (December 2008) on 6ix