DEXUS Property Group ANNUAL GENERAL MEETING...No increase in Non-executive Director fees for 2008/09 & 2009/10 Performance payments: ... Microsoft PowerPoint - 2010 10 27 AGM presentation

2010 Annual General Meeting — Slide 1

DEXUS Property Group

ANNUAL GENERAL MEETING

2010


CHRISTOPHER BEAREChair


WELCOME AND INTRODUCTION TO THE DEXUS BOARD


ELIZABETH ALEXANDER AM


BARRY BROWNJOHN


JOHN CONDE AO


VICTOR HOOG ANTINK Chief Executive Officer


STEWART EWEN OAM


BRIAN SCULLIN


PETER ST GEORGE


DEXUS BOARD OF DIRECTORS




2010


2010 ONLINE ANNUAL REPORT SUITE



CHAIR’S ADDRESS

Christopher BeareChair


2010 ACHIEVEMENTS

DEXUS US Office, 4200 Von Karman Avenue, Newport Beach, CA

Focus on operational excellence

— Achieved like-for-like income growth

— Above market occupancy

— High lease duration

Strengthened management platform

— Established management team in US

— Restructured senior management team


5.5%6.6%11.7%DXS outperformance vs A-REIT sector1

-4.4%-24.2%-4.1%A-REIT sector1

1.1%-17.6%7.6%DEXUS (DXS)

6 Years2,3

% pa3 Years2

% pa1 Year% pa

SECURITY HOLDER RETURNS TO 30 SEPTEMBER 2010

1. S&P ASX 200 Property Accumulation Index 2. CAGR — Compound Annual Growth Rate3. Since listing (October 2004)


BOARD AND EXECUTIVE REMUNERATION



CORPORATE RESPONSIBILITY AND SUSTAINABILITY

Improvements in Energy, GHG and water usage

Global 100 Most Sustainable Corporations

DJSI World Index and DJSI Asia Index

2010 CR&S Report available today

1 Bligh Street, Sydney, NSW


CORPORATE GOVERNANCE

Highest standards of governance

ASX Corporate Governance principles

Board membership unchanged

— Comprising eight directors

— Seven independents

Board committee chairs rotated

DEXUS Board of Directors at 1 Bligh Street, Sydney, NSW


Victor Hoog AntinkChief Executive Officer

CEO’S ADDRESS


OUR VISION

The market leading owner, manager, developer

of superior quality properties in office and industrial in Australia and industrial

in the US west coast


OFFICE PORTFOLIO Australia and New Zealand

Quality $4 billion office portfolio

Leasing success in a challenging environment

— Occupancy above benchmark in all markets

— Zenith occupancy increased to 98%

1 Bligh & 123 Albert developments

— First two premium 6 Star Green Star developments in Sydney and Brisbane

— 123 Albert: 80% leased

— 1 Bligh: 55% leased


INDUSTRIAL PORTFOLIO Australia

Higher like-for-like income growth and occupancy

Redeploy capital into preferred markets

Commenced four quality pre-leased developments

Incorporating new levels of sustainability

Development at Quarry Industrial Estate, Reconciliation Road, Greystanes, NSW



INDUSTRIAL PORTFOLIO United States

Operating fundamentals remain challenged, capital values recovering

Significant progress in aligning US business with Australian operating model

— Opened US head office on the west coast

Focus on

— Managing portfolio to benefit from recovery

— Repositioning portfolio

— Internalising management

US$ 1.2bn

US$ 1.2bn


CAPITAL MANAGEMENT

Diversifying funding sources

Extending debt duration

Proven capital management track record

Increased focus on debt cost reduction


Fund breakdown

L to R: GPT, 1 Bligh Street, Gateway and Australia Square, Sydney, NSW

THIRD PARTY PROPERTY FUNDS MANAGEMENT

One of Australia’s largest wholesale platforms

DEXUS Wholesale Property Fund

— Out-performed benchmark returns

— Acquired $250m industrial portfolio

Annuity style income stream and increased scale in key markets


CORPORATE RESPONSIBILITY AND SUSTAINABILITY (CR&S)

Committed to CR&S practices

— Significant results in resource efficiency

— Developments incorporating innovative sustainable design

— Investment in community initiatives


2011 GUIDANCE1

Funds From Operations at least (per security) 7.3c

Distributions (70% of FFO) at least (per security) 5.1c

1. Barring adverse changes to operating conditions

Solaris, Quarry Industrial Estate, Reconciliation Road, Greystanes, NSW



OUTLOOK

123 Albert Street, Brisbane, QLD

Enhancing quality portfolio and stability of

income

Continued management focus on existing

portfolio

Value creation opportunities through

— Development

— Capital partnering


1 BLIGH STREET, SYDNEY Development progress





2010


DISCUSSIONS AND QUESTIONS


WRITTEN QUESTIONS


QUESTION 1 – DEXUS PERFORMANCE

With net assets down and FFO reduced,

why is DEXUS pleased with its performance?


QUESTION 1 – DEXUS PERFORMANCE

2010 returns impacted by financial crisis

— Balance sheet repair

— Challenging property market conditions

In 2010 DXS delivered:

— Earnings in line with guidance

— Occupancy well above market

— Sound capital management decisions

Shareholder returns outperformed industry averages


QUESTION 2 – MANAGEMENT EXPENSES

Is the current structure of DEXUS more

expensive than others and are management

expenses too high?


QUESTION 2 – MANAGEMENT EXPENSES

Costs tightly monitored

Compensation stable year on year

Management expense ratio 0.52% in FY10

DEXUS cost structure 22% lower than peer average

Independent report shows DXS compensation is low compared to peers


QUESTION 3 – REMUNERATION

How can we justify the salaries to executives and

performance payments in light of falling FFO

and reduced income levels?


QUESTION 3 – REMUNERATION

Executive remuneration assessed vigorously to ensure fair market levels:

— Externally: independent remuneration consultants

— Internally: robust framework aligned to group objectives

Additional criteria set for CEO and key executives

No increase to base salaries for executives and staff (with few exceptions)

No increase in Non-executive Director fees for 2008/09 & 2009/10

Performance payments:

— Increase reflects 30% reduction in 2009 bonus pool

— No increase when compared to 2008 (pre-GFC) level


GENERAL QUESTIONS


RESOLUTIONS


STEWART EWEN OAM


“That the continuing appointment of Stewart F Ewen as a Director of DEXUS Funds Management Limited be ratified”

RESOLUTION 1


Proxies held by the Chair of the meeting

% of units on issueNumber of units

3,163,286,992

6,963,969

9,494,829

3,146,828,194

65.37%

0.14%

0.20%

65.03%

Total proxies

Against

Open

For

RESOLUTION 1(continued)


VOTING FOR RESOLUTION 1 — STEWART F EWEN


RESOLUTIONS


REMUNERATION PROCESS

Executive development

Role modelling DEXUS cultural valuesEmployee engagement

Talent managementTenant satisfaction

Executive successionInvestor relations

LeadershipStakeholder satisfaction

Total security holder return, relative to peers

Achievement of international operations strategiesThird party funds performance

Corporate responsibility and sustainability initiativesDistributions per security

Delivery of strategic objectives on time and on budgetEarnings per security

Business development and business managementFinancial performance

DEXUS Balanced Scorecard – typical objectives


RESOLUTION 2

“That the Remuneration Report for the financial yearended 30 June 2010 be adopted.”


RESOLUTION 2(continued)

Proxies held by the Chair of the meeting

% of units on issueNumber of units

3,162,074,661

92,928,781

9,291,674

3,059,854,206

65.35%

1.92%

0.19%

63.23%

Total proxies

Against

Open

For


VOTING FOR RESOLUTION 2


DISCLAIMER

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 is not financial product advice.

Information in this presentation including, without limitation, any forward looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted by law, DXFM and DXS, and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied by any forward looking statements for a range of reasons outside the control of the relevant parties.

The information contained in this presentation should not be considered to be comprehensive or to comprise all the information which a DXS unitholder or potential investor may require in order to determine whether to deal in DXS stapled securities. This presentation does not take into account the financial situation, investment objectives and particular needs of any particular person.

The repayment and performance of an investment in DXS is not guaranteed by DXFM or any of its related bodies corporate or any other person or organisation. This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.


THANK YOU FOR ATTENDING OUR ANNUAL GENERAL MEETING




2010

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DEXUS Property Group ANNUAL GENERAL MEETING...No increase in Non-executive Director fees for 2008/09 & 2009/10 Performance payments: ... Microsoft PowerPoint - 2010 10 27 AGM presentation