Dexus today announced a strong result for the first six months of FY18 and upgraded its guidance for distribution per security growth for FY18. FINANCIAL HIGHLIGHTS Net profit after tax of $997.1 million, up 39.3% on the previous corresponding period Funds from Operations (FFO) of $321.8 million, up 8.7% on the previous corresponding period Underlying FFO per security (FFO excluding trading profits) of 30.2 cents, up 1.7% on the previous corresponding period Distribution per security of 23.7 cents, up 9.2% on the previous corresponding period Reduced the Group Management Expense Ratio to 33 basis points Completed Dexus’s largest ever debt raising of $653 million, achieving Dexus’s longest average duration for a debt issue of 13.5 years and extending Dexus’s total debt duration to 7.0 years Gearing (look-through)2 of 26.5% OPERATIONAL HIGHLIGHTS Property portfolio One-year unlevered total return of 15.8% in the Dexus office portfolio and 15.4% in the Dexus industrial portfolio High office portfolio occupancy of 96.5% with Sydney office leasing spreads of +16% Continued industrial leasing activity, increasing industrial portfolio occupancy to 97.5% Activation of three office projects in Dexus’s $2.1 billion development pipeline Funds Management Top quartile performance for Dexus Wholesale Property Fund (DWPF) over one, three, five, seven and ten years, and completed a $300 million equity offer, following DWPF’s acquisition of a 25% interest in the MLC Centre One-year unlevered total property return of 16.5% for the Dexus Office Partnership, and an annualised unlevered property return of 15.3% since inception Completed the first equity raise for the Healthcare Wholesale Property Fund Acquired 56 Berry Street, North Sydney and exchanged contracts to sell 11 Waymouth Street, Adelaide for the Dexus Office Partnership Trading $14.3 million of trading profits net of tax Advanced the trading pipeline through progressing development proposals to contribute to profits in future years Outlook and guidance Dexus expects Australia to continue to benefit from global economic growth, population growth and considerable construction activity in the infrastructure sector over the next two years. They believe this will have a positive flow on effect on demand for office and industrial space over the same time period. Goodman expect to see support for real estate values over the next 12 months as a result of the strength of property fundamentals in Sydney and Melbourne along with the improving fundamentals in Perth and Brisbane. Recent volatility in equity markets, has resulted in Dexus announcing plans to initiate an on-market securities buy-back of up to 5% of Dexus securities on issue, providing the opportunity to enhance investor returns. As a result of improved performance across a number of areas in the underlying business, Dexus has upgraded its market guidance for distribution per security growth to 4.5-5.0% from 4.0-4.5% for the 12 months ending 30 June 2018. Investor Presentation Document #Dexus