Dexus (ASX: DXS) ASX release 17 August 2021 2021 Annual Report Dexus releases its 2021 Annual Report, which will be mailed to Security holders who have elected to receive a hard copy in mid-September 2021. Authorised by the Board of Dexus Funds Management Limited For further information please contact: Investors Media Rowena Causley Louise Murray Senior Manager, Investor Relations Senior Manager, Corporate Communications +61 2 9017 1390 +61 2 9017 1446 +61 416 122 383 +61 403 260 754 [email protected] [email protected] About Dexus Dexus (ASX: DXS) is one of Australia’s leading fully integrated real estate groups, managing a high-quality Australian property portfolio valued at $42.5 billion. We believe that the strength and quality of our relationships will always be central to our success and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $17.5 billion of office, industrial and healthcare properties, and investments. We manage a further $25.0 billion of office, retail, industrial and healthcare properties for third party clients. The group’s $14.6 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. Sustainability is integrated across our business, and our sustainability approach is the lens we use to manage emerging ESG risks and opportunities for all our stakeholders. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange and is supported by more than 30,000 investors from 23 countries. With over 35 years of expertise in property investment, funds management, asset management and development, we have a proven track record in capital and risk management and delivering superior risk-adjusted returns for investors. www.dexus.com Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS) Level 25, 264 George Street, Sydney NSW 2000 Annual Report 2021 Creating spaces where people thrive Annual Report 2021 Creating spaces where people thrive Dexus is one of Australia’s leading fully integrated real estate groups, managing a high-quality Australian property portfolio valued at $42.5 billion. Our vision is to be globally recognised as Australia’s leading real estate company Our purpose is to create spaces where people thrive Our values – Openness and trust – Empowerment – Integrity Our strategy is to deliver superior risk-adjusted returns for investors from high quality real estate in Australia’s major cities How we create value The framework that outlines how we create value for all stakeholders → Page 12 2021 Dexus Annual Reporting Suite Annual Results Annual Report Financial Statements Sustainability Report Annual Results Corporate Governance Modern Slavery Presentation 2021 2021 2021 Presentation Statement Statement 2021 Creating spaces Creating spaces 2021 2021 2021 where people thrive where people thrive Annual Report 2021 Financial Sustainability Annual Results Corporate Modern Slavery Statements 2021 Report 2021 Presentation 2021 Governance Statement 2021 Statement 2021 Front cover: Artist impression: Atlassian, Sydney NSW Inside cover: 25 Martin Place, Sydney NSW Overview Overview FY21 highlights → Page 2 About Dexus → Page 4 Chair and CEO review → Page 6 About this report Approach Approach The 2021 report is a consolidated summary of Dexus’s performance for the financial year ended How we create value → Page 12 30 June 2021. It should be read in conjunction with Megatrends Page 14 the reports that comprise the 2021 Annual Reporting → Suite available from www.dexus.com/investor-centre. Strategy → Page 16 In this report, unless otherwise stated, references to Key resources → Page 18 ‘Dexus’ ‘the group’, ‘we’, ‘us’ and ‘our’ refer to Dexus Key business activities Page 20 comprising the ASX listed entity and the funds → management business. Any reference in this report to Key risks → Page 22 a ‘year’ relates to the financial year ended 30 June 2021. All dollar figures are expressed in Australian dollars unless otherwise stated. Performance The Board acknowledges its responsibility for the Performance 2021 Annual Report and has been involved in its development and direction from the beginning. The Financial → Page 28 Board reviewed, considered and provided feedback during the production process and approved the Properties → Page 42 Annual Report at its August 2021 meeting. People and capabilities → Page 50 This Annual Report has been prepared in accordance Customers and communities → Page 54 with the content elements of the 2021 International Environment → Page 62 <IR> Framework, which we use to identify material Future commitments Page 70 issues from an enterprise value perspective and → Governance clearly articulate how we deliver sustained value for all stakeholders. An index is provided on page 180 of this report. PwC has been engaged to provide limited assurance as to whether Content Elements Governance of the Integrated Reporting Framework have been addressed in the report as described in this Index. Governance Page 72 This assurance is focused on whether these Content → Elements have been included in this report but does Board of Directors → Page 74 not extend to assessing the accuracy or validity of Group Management Committee → Page 77 any statement made throughout this report. We have also used the GRI Standards to understand material issues from a stakeholder impact report Directors’ perspective, as disclosed across our 2021 Annual Reporting Suite, which is prepared in accordance with Directors’ report the GRI Standards: Core option (GRI Content Index and is provided in our 2021 Sustainability Report). Remuneration report → Page 78 PwC has provided limited assurance over select Directors’ report → Page 107 environmental and social data, within the annual reporting suite covering the 12 months to 30 June 2021 (assurance statement provided in our 2021 Sustainability Report). Financial report Report scope Financial report The Annual Report covers financial performance Financial report → Page 114 at all locations. Environmental data only includes properties under the Group’s operational control as defined under the National Greenhouse and Energy Reporting System (NGER Act). Additional information on financial, people, customer, community, supplier Investor information and environmental datasets is provided in our 2021 Sustainability Report. Integrated Reporting Content → Page 180 Elements Index Investor information → Page 182 Investor information Investor Dexus 2021 Annual Report 1 FY21 Highlights Throughout the Maintaining strong financial Financial performance by delivering on our year, we maintained → Page 28 strategy momentum on maximising property portfolio income and performance while growing and Developing, managing and diversifying our Properties transacting properties to create → Page 42 a high-quality portfolio across funds management Australia’s key cities business. Attracting, retaining and developing People and an engaged and capable workforce capabilities that delivers on our strategy → Page 50 Supporting the success of our Customers customers, the wellbeing of building occupants, the strength of our local and communities and the capabilities of communities our suppliers → Page 54 Assessing the efficiency and resilience Environment of our portfolio to minimise our → Page 62 environmental footprint and ensure it is positioned to thrive in a climate- affected future 2 Overview – FY21 Highlights Overview 51.8cents 51.8cents 8.3% Approach Distribution per security AFFO per security Return on Contributed Equity FY20: 50.3 cents FY20: 50.3 cents FY20: 9.0% $ $ 42.5bn 95.2% 14.6bn 1 Value of group property portfolio Dexus office portfolio occupancy Group development pipeline Performance % 43 35 Governance +Employee Net Promoter Score Females in senior and executive management roles FY20: +61 FY20: 36% $ 46 0.8m +Customer Net Promoter Score >Community investment value Directors’ report Directors’ FY20: +50 FY20: $1.1m 31% 4.7star Of electricity sourced from Average NABERS Indoor on-site and off-site renewable Environment rating across Financial report sources in FY21 across the the group office portfolio group managed portfolio 1 Prior to circa $2bn of redemptions to existing AMP Capital Diversified Property Fund (ADPF) unitholders and proforma for the acquisition of Investor information Investor APN Property Group which was approved on 27 July 2021 as well as settlement of Mercatus Dexus Australian Partnership’s (MDAP’s) 33.3% interest in 1 Bligh Street, Sydney which occurred on 8 July 2021. Dexus 2021 Annual Report 3 About Dexus Artist impression: Central Place, Sydney NSW Dexus is one of Dexus is a Top 50 entity by market We invest only in Australia, and directly capitalisation listed on the Australian own $17.5 billion of office, industrial and Australia’s leading fully Securities Exchange (trading code: DXS) healthcare properties and investments. and is supported by more than We manage a further $25.0 billion of integrated real estate 30,000 investors from 23 countries. office, retail, industrial and healthcare properties in our funds management groups, managing a We believe the strength and quality business, which provides wholesale of our relationships will always be high-quality Australian investors with exposure to quality central to our success and we are sector specific and diversified real property portfolio deeply committed to working with estate investment