Dexus (ASX: DXS)

ASX release

20 August 2024

2024 Annual Report

Dexus provides its 2024 Annual Report including sustainability reporting. This report should be read in
conjunction with the reports in our 2024 Annual reporting suite. The report will be mailed to Security
holders who have elected to receive a hard copy in late-September 2024.
Authorised by the Board of Dexus Funds Management Limited

For further information please contact:

Investors Media
Rowena Causley Luke O’Donnell
Head of Listed Investor Relations Senior Manager, Media and Communications
+61 2 9017 1390 +61 2 9017 1216
+61 416 122 383 +61 412 023 111
[email protected] [email protected]

About Dexus
Dexus (ASX: DXS) is a leading Australasian fully integrated real asset group, managing a high-quality Australasian real
estate and infrastructure portfolio valued at $54.5 billion. The Dexus platform includes the Dexus investment portfolio
and the funds management business. We directly and indirectly own $14.8 billion of office, industrial, retail, healthcare,
infrastructure and alternatives. We manage a further $39.7 billion of investments in our funds management business
which provides third party capital with exposure to quality sector specific and diversified real asset products. The funds
within this business have a strong track record of delivering performance and benefit from Dexus’s capabilities. The
platform’s $16.1 billion real estate development pipeline provides the opportunity to grow both portfolios and enhance
future returns. We believe that the strength and quality of our relationships will always be central to our success and are
deeply connected to our purpose Unlock potential, create tomorrow. Our sustainability approach is focused on the
priority areas where we believe we can make significant impact: Customer Prosperity, Climate Action and Enhancing
Communities. Dexus is supported by more than 37,000 investors from 23 countries. With four decades of expertise in
real estate and infrastructure investment, funds management, asset management and development, we have a proven
track record in capital and risk management and delivering returns for investors. www.dexus.com
Dexus Funds Management Limited ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS)
(Dexus Property Trust ARSN 648 526 470 and Dexus Operations Trust ARSN 110 521 223)
Level 30, 50 Bridge Street, Sydney NSW 2000
Annual Report
2024

Unlock potential
Create tomorrow
Dexus is a leading Australasian fully
integrated real asset group, owning
and managing a quality real estate
and infrastructure portfolio.

Our purpose Unlock potential

Create tomorrow
Our purpose reflects our unique ability to create value for
our people, customers, investors and communities over
the long term.
Dexus 2024 Annual Reporting suite Contents

Annual Report
2024
Annual Results Presentation
2024
Financial Statements
2024
Corporate Governance Statement
2024
Management Approach & Procedures
2024
Sustainability Data Pack
2024
Modern Slavery Statement
2024
Overview 2 FY24 highlights
4 About Dexus
Unlock potential
Create tomorrow

6 Chair & CEO review

Approach 10 How we create value

12 Megatrends
Annual Corporate Management Modern
Annual Results Financial Governance Approach & Sustainability Slavery
14 Strategy
Key information Report Presentation Statements Statement Procedures Data Pack Statement 16 Sustainability
strategy
Strategy 18 Materiality review

Overview
20 Key risks
Financial 26 Key resources
performance 28 Key business
activities
Operational
performance Performance 30 Financial
performance
38 Leading cities

Approach
Governance
52 Thriving people
58 Customer prosperity
Risk 62 Climate action
72 Enhancing
People and communities
communities 76 Sustainability
Foundations

Performance
Environment and
climate action Governance 82 Governance
86 Board of Directors
Security holder 89 Executive Committee
information
Directors’ 90 Directors’ report
report 90 Remuneration report

Financial 122 Financial report

Governance
report

Investor 188 Investor information

information 194 Integrated Reporting
Content Elements
Index

Acknowledgement of country About this Report

Directors’ report
Dexus acknowledges the Traditional Custodians of the lands on The 2024 report is a consolidated
which our business and assets operate, and recognises their ongoing summary of Dexus’s performance for
contribution to land, waters and community. the financial year ended 30 June 2024.
It should be read in conjunction with
We pay our respects to First Nations Elders past and present.
the reports that comprise the 2024
Artist Annual Reporting Suite available from
www.dexus.com/investor-centre. In this
Amy Allerton, Indigico Creative, a Gumbaynggir report, unless otherwise stated, references
Bundjalung and Gamilaraay woman to ‘Dexus’ refer to Dexus, the ASX listed
entity. References to ‘Dexus Platform’,
Financial report

Artwork
‘the platform’, ‘we’, ‘us’ and ‘our’ refer to
The Places Where We Thrive the Dexus ASX listed entity and the funds
management business combined. Any
Artwork description reference in this report to a ‘year’ relates
The artwork tells the story of a vision for our to the financial year ended 30 June 2024.
communities, both large and small, where they All dollar figures are expressed in Australian
are all thriving and strong as they build lives, dollars unless otherwise stated. The
homes and legacies for present and future Board acknowledges its responsibility
generations. Every community is connected by for the 2024 Annual Report and has
spirit and by country, surrounded by flourishing been involved in its development and
waterways and vibrant land that is enriched direction from the beginning. The Board
Investor information

and cared for by its people. Communities are reviewed, considered and provided
empowered to unlock potential and find new feedback during the production process
ways to build and expand, as they dream and and approved the Annual Report at
innovate to create tomorrow. its August 2024 board meeting. The
2024 Modern Slavery Statement will be
available later in 2024.
1
FY24 highlights
We continued to advance as a real asset
manager, focusing on sustainable value
creation and positive impact.

Financial

$516.3m $(1,583.8)m
Focus on delivering
financial performance
and distribution Adjusted Funds From Operations Statutory net profit/(loss) after tax
guidance. FY23: $555.0m FY23: $(752.7)m

48.0 cents 32.0%

AFFO and Distribution per security Pro forma gearing
FY23: 51.6 cents FY23: 27.9%

Real assets

$54.5bn $16.1bn
Developing, managing
and transacting real
assets to create a Dexus Platform portfolio Dexus Platform real estate
high‑quality portfolio development pipeline
across Australasia.

94.8% 96.8%
Dexus office portfolio occupancy Dexus industrial portfolio occupancy

People and capabilities

Attracting, retaining and

developing an engaged 61% 34.2%
and capable workforce, Employee engagement score Females in senior and executive
within an inclusive FY23: 70% management roles
environment that FY23: 38.3%
delivers on our strategy.

2 Dexus 2024 Annual Report

 Customers

Overview
+44 5.2 stars
Supporting the prosperity
of our customers through
the investment, design, Customer Net Promoter Score Average NABERS Indoor
development and FY23: +40 Environment rating across the

Approach
management of real assets. platform office portfolio
Our products and services FY23: 4.8 stars
prioritise occupant wellbeing
and drive sustainability
performance.

Performance
Climate action

Enhancing the efficiency and

10.0% 23.2%

Governance
resilience of our portfolio to
minimise our environmental Reduction in energy intensity across Reduction in water intensity across
footprint and ensure it is the platform’s managed office the platform’s managed office
positioned to thrive in a portfolio since 2019 portfolio since 2019
climate‑affected future.

100%
Directors’ report
of electricity sourced from renewable
sources in FY24 across the platform’s
managed portfolio

Communities
Financial report

Helping communities around

our assets through inclusive 120 assets >$1.78m
and accessible design Delivering community activations Community contribution value
and placemaking, and across Australasia FY23: >$0.6m
investment in infrastructure
that creates social value.
Investor information

3
About Dexus
Dexus is a leading Australasian fully integrated
real asset group, managing a high-quality
Australasian real estate and infrastructure
portfolio valued at $54.5 billion.
The Dexus Platform includes the The platform’s $16.1 billion real estate Dexus is listed on the Australian
Dexus listed portfolio and the funds development pipeline provides the Securities Exchange (trading code: DXS)
management business. We directly opportunity to grow both portfolios and is supported by more than 37,000
and indirectly own $14.8 billion of and enhance future returns. investors from 23 countries. With four
office, industrial, retail, healthcare, decades of expertise in real estate
We believe that the strength and
infrastructure, alternatives and other. and infrastructure investment, funds
quality of our relationships will always
management, asset management and
We manage a further $39.7 billion of be central to our success. We are
development, we have a proven track
investments in our funds management deeply connected to our purpose
record in capital and risk management
business which provides third party Unlock potential, create tomorrow.
and delivering returns for investors.
capital with exposure to quality sector
Our sustainability approach is focused
specific and diversified real asset
on the priority areas where we believe
products. The funds within this business
we can make a significant impact:
have a strong track record of delivering
Customer Prosperity, Climate Action
performance and benefit from
and Enhancing Communities.
Dexus’s capabilities.

Industrial
$10.6bn
n
itio
s
po
m
co
rm
fo
lat
sP

Port Hedland
xu
De

Our real asset portfolio

spans key cities across
Australia and New Zealand Perth

Office
$20.3bn

4 * Growth markets and other includes infrastructure, healthcare, alternatives and other.
 $54.5bn $14.8bn $39.7bn
Funds under management Dexus Funds Management
FY23: $61.0 billion FY23: $17.4 billion FY23: $43.6 billion

432 972 $7.0bn

Assets Employees Dexus market capitalisation
at 30 June 2024

Overview
Approach
Performance
Darwin

Governance
Retail
$9.2bn
Townsville

Brisbane Directors’ report

Financial report

Sydney
Auckland
Adelaide
Tauranga
Canberra

Melbourne Wellington
Investor information

Growth
markets
& other*
$14.3bn
5
Chair & CEO review
Dexus is positioned to benefit from
megatrends to generate long-term
investment performance.

Warwick Negus (Left), Chair

and Ross Du Vernet (Right),
Group Chief Executive Officer & Managing Director.

6 Dexus 2024 Annual Report

 “The assets we own, manage and develop, the capabilities
we build, and the relationships we forge with clients and
customers continue to position us well over the long term.”

Markets move in cycles, and while Dexus’s statutory net loss after tax was Pro forma gearing (look-through) of
conditions are presently challenging, $1,583.8 million, primarily driven by fair 32.0%2 sits near the lower end of our

Overview
we invest for the long term. The valuation losses on investment property. target range of 30–40%. We have
assets we own, manage and develop, Real estate sector valuations have successfully divested $7.4 billion of
the capabilities we build, and the declined further this year in response Dexus assets over the past five years.
relationships we forge with clients and to transactional evidence. The portfolio A further circa $2 billion of Dexus assets
customers continue to position us well valuations (including assets held for sale are earmarked for divestment over
to deliver superior risk-adjusted returns and developments) have resulted in a the next three years which, together
for Dexus Security holders and our total $1.9 billion or circa 12.9% decrease with the completion of committed

Approach
capital partners over the long term. on prior book values for the 12 months developments, will further enhance the
to 30 June 2024. The value of the office quality of our portfolio while maintaining
Broader business sentiment continues
portfolio decreased 15.6% on prior book a prudent level of gearing.
to be impacted by prolonged economic
values driven by higher capitalisation
uncertainty, with impacts from higher We actively managed our debt position,
rates and discount rates, partially offset
interest rates, inflation and geopolitical refinancing $1.0 billion of facilities with
by market rental growth. The industrial
risks being felt across the economy and tenors of up to 8 years, strengthening the
portfolio decreased by 3.3% on prior
business sector. balance sheet and reducing near-term
book values, with strong rental growth

Performance
debt maturities.
Both capital raising and transaction largely offsetting the impact of higher
volumes have slowed and capitalisation capitalisation rates and discount rates. Dexus has $2.5 billion of undrawn cash
rates have continued to expand, driving and debt facilities and was 92% hedged
In response to rising bond yields, the
further declines in valuations across on average for FY24. Further details
S&P/ASX 200 Property Accumulation
the real estate sector this year. relating to our financial result can be
(A-REIT) Index recovered to deliver a
found on pages 30–37.
The business performed as expected 24.6% Total Security holder Return in
delivering on distribution guidance FY24. Dexus underperformed the A-REIT 1. Includes $4.2 billion real asset transactions
for Security holders and maintaining index in FY24 with a (11.2)% Total Security that exchanged or settled post

Governance
operating performance in the owned holder Return, as office assets saw 30 June 2023 and $0.7 billion of real asset
the highest valuation declines in the securities across multiple funds.
and managed portfolios.
Australian real estate market during the 2. Adjusted for cash and debt in equity
year. Over the past 10 years, Dexus has accounted investments, excludes Dexus’s
Financial and operating result delivered an annual compound return of share of co-investments in pooled funds.
Pro forma gearing includes committed
Dexus achieved AFFO and distributions 5.1%, below the A-REIT index at 8.9% over transactions post 30 June 2024.
of 48.0 cents per security for FY24, in the same time period. Look‑through gearing at 30 June 2024
line with guidance, reflecting a decline was 32.6%. Pro forma look-through
of 7.0% on FY23. As a long-term investor, we have gearing including Dexus’s share of equity
confidence in the value of our quality

Directors’ report
accounted co-investments in pooled funds
Dexus’s financial result this year was office portfolio through the cycle. was 33.2% at 30 June 2024.
impacted by lower trading profits, There is ongoing demand to occupy
with AFFO excluding trading profits well-located, high-quality buildings as
up 0.2% on the prior year, in line with seen in our office leasing and portfolio 60
guidance. Portfolio like-for-like income occupancy. Our industrial portfolio
growth, an increased management continues to benefit from sustained 50
operations contribution driven by market rent growth across key markets 48.00
the AMP Capital platform acquisition with low land supply, supported by the 40
and performance fees, were offset by strong customer preference to be in
near-term headwinds to funds under well-connected logistics hubs. 30
Financial report

management, together with a higher

average cost of debt. We undertook a total of $4.9 billion1 20
of transactions across the platform,
Occupancy in our office and industrial including $3.2 billion on behalf 10
portfolios remained high at 94.8% and of a number of funds consisting
96.8%, respectively, due to the quality predominantly of divestments to 0
and location of our portfolio, along with maintain prudent gearing levels and
strong rent collections at 99.5%. For our facilitate redemptions, an important
FY13*
FY14*

office portfolio, occupancy exceeded

FY20

FY24
FY22
FY23
FY18

part of our proposition as a leading

FY15
FY16

FY19

FY21
FY17

the average Australian market fund manager. We continue to

occupancy of 86.4%, with average transition the Dexus portfolio, selectively History of Dexus
Investor information

leasing incentives of 27.9%, below the divesting assets to enhance portfolio

market average.
distribution per security
quality and balance sheet strength,
(Cents per security)
while providing capacity to fund our
committed developments.
* Adjusted for the one-for-six security
consolidation completed FY15.
7
Chair & CEO review continued

Our funds are performing well. Of the Each of our sector-specific business The Dexus Platform was recognised
funds with benchmarks, 84% by funds units are empowered to develop for its leadership by Global Real Estate
under management outperformed bespoke strategies across asset Sustainability Benchmark (GRESB), with
their benchmark. management, development and Dexus and five funds achieving 5 star
transactions that drive investment GRESB ratings for 2023. We were also
Since transitioning to Dexus’s platform, recognised by Climateworks as one of
outperformance in their unique
Dexus Wholesale Shopping Centre two assessed Australian organisations
competitive domains, and therefore
Fund continued to generate strong that fully met their principals for
for our investors and clients. While the
performance, outperforming its credible net zero targets and action.
market backdrop has been challenging,
benchmark by over 400 basis points in
we see different areas of opportunity in
FY24. Dexus Wholesale Property Fund Our focus on customer has seen us
each of the sectors, which leverage our
outperformed its benchmark across further strengthen our Net Promoter
portfolios and capabilities, and ability
all time periods. Score (NPS) to +44 (FY23: +40), at the
to create value over the long term.
high end of the NPS range of -100
We harnessed pockets of investor to +100. Our partnership with Black
As we think about the next phase of the
interest against a soft capital raising Dog has contributed to enhancing
cycle, we have evolved our approach
backdrop, successfully raising over communities through delivering mental
to capital allocation. Our framework
$300 million of equity at first close in health training for the employees of our
establishes a clear hierarchy for how
Dexus Real Estate Partnership 2, the customers in our office, industrial and
we allocate and manage our capital
second fund in our opportunity series. healthcare assets.
to protect downside, promote active
The projects in our $16.1 billion real management and drive improved
The finalisation of the AMP Capital
estate development pipeline are risk-adjusted returns for Security holders
acquisition and integration onto the
expected to deliver attractive long-term over the long term.
Dexus platform created an interim
returns. They provide embedded future period of uncertainty and impacted
This framework will guide our long‑term
value by improving the quality and our employee engagement score of
decisions, and the application is
growth opportunities of our directly 61%. Through this time, we continued
particularly important in our business
held investments and those portfolios to focus on strategic people initiatives,
given the diverse opportunity set.
managed on behalf of our third party providing active support for internal
capital partners. Construction progress career planning, development and
remains on track at our city-shaping 2. Sustainability
learning opportunities for our people.
developments, Atlassian Central and As we integrated the AMP Capital
stage 1 of Waterfront Brisbane, which assets onto our platform, we Our active commitment to inclusion
will be completed in 2027 and 2028 implemented initiatives across the and diversity across our workforce
respectively. expanded portfolio, focusing on has delivered initiatives focused on
the priority areas where we believe LGBTQ+ inclusion and reconciliation
Our committed industrial pipeline is we can make significant impact: with Aboriginal and Torres Strait
active across multiple development Customer Prosperity, Climate Action Islander peoples. Australian Workplace
projects owned by Dexus and its and Enhancing Communities. Equality Index recognised our efforts
third party capital partners, of which towards LGBTQ+ inclusion with a Silver
the majority have secured leases. We continued the net zero journey for
employer status. This year we refreshed
the building operations of the assets
our Reflect Reconciliation Action Plan
we manage across our group property
Platform initiatives portfolio. We remain committed to
to align with our business strategy,
1. Integration and immediate priorities purpose and values.
act to limit global warming to 1.5°C
This year we achieved Final Completion and delivering on our customers’ and We recognise we operate in a sector
and integration of the AMP Capital investors’ desire for strong climate where there are still many obstacles to
systems, processes and people into action and low carbon investments, achieving gender equity, and it remains
Dexus’s platform. The acquisition has and are excited about the opportunities an ongoing challenge for both our
further expanded and diversified our presented by our city-shaping projects organisation and the industry.
funds management business. and industrial developments to reduce
our environmental footprint. We reiterate our continued commitment
Following integration completion, to gender equity and are committed
we turned our focus to three Ensuring a consistent approach in to addressing the gender pay gap and
immediate priorities: embedding sustainability across improving the representation of women
our portfolio, we developed new across all areas of our business.
– Refining our strategy Sustainable Development Standards
– Refreshing our capital allocation for the office, industrial and healthcare 3. Governance
framework sectors to be applied across all new
Dexus is a trusted custodian of our
– Implementing a sector-aligned developments in FY25. We also ensured
investors’ capital with a reputation
operating model to drive investment that all asset plans and fund investment
for strong corporate governance
outperformance in the next phase plans include sustainability initiatives
and highly regarded sustainability
of the investment cycle aligned to our Sustainability Strategy
credentials. We have well established
and its priority areas.
frameworks, processes and policies that
Our platform currently has a well- Sustainability is embedded in our support our strong governance and
established presence in office, industrial strategy, our business and our culture risk management practices. The Board
and retail, with an emerging presence and we are globally recognised for our actively seeks feedback to ensure it
in the growth markets of healthcare, leadership in sustainability. Dexus has stays connected to the culture of the
infrastructure and alternatives. once again been included in the S&P organisation and gains deeper insights
Global Sustainability Yearbook 2024, into its operations.
achieving the third highest score of
global REIT peers.

8 Dexus 2024 Annual Report

Our Board comprises seven We manage a diversified real asset We have successfully divested
non-executive directors and one portfolio valued at $54.5 billion of $7.4 billion of Dexus assets over the
executive director, and we seek significant scale across each of our past five years. A further $2 billion
to maintain Board diversity across sectors, geographically focused in of Dexus assets are earmarked for
gender, skills and experience. Australia and New Zealand. divestment over the next three years
which, together with the completion of
As part of our Board renewal process, Our $14.8 billion Dexus portfolio is
committed developments, will further
Penny Bingham-Hall retired from the predominantly invested in high‑quality
enhance the quality of our portfolio
Board on 28 March 2024, and we office and industrial real estate
while maintaining a prudent level
welcomed Peeyush Gupta AM as alongside third party clients.
of gearing.
a non‑executive director.
Our $39.7 billion established funds
Our well-located property portfolio
We thank Penny for her significant management business contributes fees
continues to benefit from flight to
contribution and leadership as Chair from third‑party capital across scalable
quality, and our focus on customer
of the People and Remuneration product strategies.
centricity and sustainable outcomes.

Overview
Committee, and as a member of
Our real asset portfolio is underpinned
the Nomination & Governance Our diversified funds business has
by strong demand drivers. We are
Committee and the Board active client enquiry for new products
positioned to benefit from sustained
Sustainability Committee. and attractive investment opportunities.
long-term growth from megatrends
During the year the leadership of Dexus including urbanisation, growth in As the interest rate outlook becomes
transitioned to Ross Du Vernet who pension capital, and social and more certain, we expect direct investors
commenced as Group Chief Executive demographic change such as will gain greater confidence to deploy

Approach
Officer & Managing Director on population growth and an ageing capital. Markets remain challenging
28 March 2024. population. however, we expect well‑located quality
assets to continue to outperform.
Former CEO, Darren Steinberg, was The scale of the real estate and
instrumental in the growth and evolution infrastructure opportunity in Australasia Consistent with our strategy, from
of Dexus over the past 12 years. Under is significant. We aspire to be known FY25 the distribution policy has been
his leadership, the platform’s total for our deep local sector experience, updated to pay out 80–100% of AFFO,
funds under management increased our active management approach and providing a sustainable source of

Performance
to $54.5 billion today, while at the being an investment partner of choice. capital to invest through the cycle
same time portfolio quality has been into return-enhancing investment
Our people are the key to our success.
enhanced and diversified into new opportunities. With a preference to
The way we operate on a day-to-day
sectors including healthcare, alternative co-invest alongside capital partners,
basis is focused on our collective talent,
investments and infrastructure. we see attractive opportunities in
client mindset, sustainability impact,
the industrial, infrastructure and
The Board wishes to thank Darren trusted governance and constant
alternative investment sectors.
for his strong leadership of Dexus and evolution. This approach enables
recognises his contribution in shaping our people to unlock the significant Barring unforeseen circumstances, for

Governance
Dexus as it stands today. potential of the Dexus business. Further the 12 months ending 30 June 20251,
details relating to our strategy can be Dexus expects:
Further details relating to the
found on pages 14–15.
Board and our governance – AFFO of circa 44.5–45.5 cents per
practices can be found on pages security
82–89, as well as in the Corporate Summary and outlook – Distributions of circa 37.0 cents
Governance Statement available at We have refined our strategy, refreshed per security
www.dexus.com/corporategovernance. our capital allocation framework and
shifted to a sector aligned operating On behalf of the Board and
Our strategy

Directors’ report
model to drive outperformance in the management, we extend our
Our purpose Unlock potential, create next phase of the investment cycle. appreciation to our people across
tomorrow reflects our unique ability to Australia and New Zealand for
We have also identified a set of
create value for our people, customers, their commitment and significant
clear action items to support our
investors and communities over the contribution to this year’s result. We
medium term priorities of transitioning
long term. also thank our third party capital
the balance sheet, maximising the
partners for entrusting us with the
Our vision is to be globally recognised contribution from the funds business
management of their real asset
as Australasia’s leading real asset and unlocking our deep sector
investments, and our customers for
manager. We will achieve leadership expertise.
their loyalty and commitment across
by delivering superior risk-adjusted Our disciplined approach to capital our real asset portfolio.
Financial report

returns for Dexus Security holders and management has enabled us to

our capital partners from owning, Importantly, we thank you, our investors,
maintain a strong balance sheet
managing, and developing quality for your continued investment in Dexus
through asset recycling.
real estate and infrastructure assets. and we look forward to continuing to
deliver sustained performance.

Warwick Negus
Chair
Ross Du Vernet
Group Chief Executive Officer &
Investor information

Managing Director

1. Based on current expectations relating to asset sales, performance fees and trading profits, and subject to no material deterioration
in conditions.
9
How we create value
Our value drivers

Financial
Our financial resources are the pool of Our purpose
funds available to us for deployment.
Unlock potential
– Financial performance
– Capital management create tomorrow
– Corporate governance

Real assets
Our real estate and infrastructure assets
are central to how we create value.
– Portfolio scale and occupancy
– Economic contribution
– Development pipeline g
– Industry collaboration wnin
O

People and capabilities

Our people’s knowledge and expertise are
key inputs to how we create value.
– Employee engagement
– Inclusion and diversity
– Health, safety and wellbeing We create
value
through Our key
our key areas of
Customers business operation
activities
Our capacity to create value depends on
Page 28
strong relationships with our customers.
– Customer experience and engagement

De
Environment ve
lo p in
The efficient use of natural resources and g
sound management of environmental risks.
– Resource efficiency
– Climate resilience
– Green buildings
Our values

Rally to achieve together

Communities Build trust through action
Our capacity to create value depends on strong
relationships with the communities around our
assets, and our suppliers.
– Local community engagement
– Community contribution

Megatrends Page 12

Growth
Megatrends shape our operating environment,
Urbanisation in pension
generating both risks and opportunities that impact
capital
how we create value through our business model.

10 Dexus 2024 Annual Report

 The value we create

Financial performance Page 30

Our strategy Page 14 – Distribution per security
– Adjusted Funds From Operations (AFFO) per security
Deliver superior risk‑adjusted returns – Return on Contributed Equity (ROCE)
for Dexus security holders and our
capital partners by owning, managing
and developing quality real estate
and infrastructure assets.

Leading cities Page 38

Overview
– Scale: value of real assets
– Customer demand and space use: property
portfolio occupancy
– Economic contribution: construction jobs supported
and Gross Value Added (GVA) to the economy from
development projects
– Development pipeline: value of group development pipeline

Approach
Thriving people Page 52
– Employee engagement: Employee
Engagement Score
– Gender diversity: female representation
in senior and executive management roles

Performance
Infrastructure – Health and safety: workplace safety audit score
Managing

Customer prosperity Page 58

– Customer experience: customer Net
Promoter Score
– Initiatives that enhance occupant health and

Governance
wellbeing benchmarked using the NABERS
Real estate Indoor Environment performance rating

Climate action Page 62

– Climate resilience: Greenhouse gas

Directors’ report
emissions reductions
– Resource efficiency: energy and water
reductions and waste management
– Performance ratings: NABERS and
Green Star ratings
Our sustainability strategy Page 16

Unlock the potential of real assets to

create lasting positive impact and a Enhancing communities Page 72
more sustainable tomorrow.
– Community engagement: number of assets
Priorities:
Financial report

delivering activations
– Customer prosperity – Community contribution: total value contributed,
– Climate action hours of employee volunteering
– Enhancing communities
Our sustainability strategy is underpinned by our
foundational areas

Materiality and Risk Page 18

Investor information

Social and
Sustainability Identifying and understanding our material
demographic
revolution matters and risks is critical in the development
change
and delivery of our strategy.

11
Megatrends
Megatrends shape our operating
environment, generating both risks and
opportunities that impact how we create
value through our business model.

Growth in
Megatrend Urbanisation pension capital

Description Sustained population growth in major Australian Funds under management within pension funds
cities will underpin demand for infrastructure are expected to increase as populations in
and real estate investment. Population growth developed nations continue to age. Real estate
and investment tends to be focused around and infrastructure sectors are expected to
key transport nodes, driving densification and receive a higher share of capital allocation
the need for vibrant communities, creating and benefit from cross border capital flows.
challenges for social equity, the environment,
transport systems and city planning.

Connection
Financial Financial
to key
resources
Real assets Real assets

Environment

Implications for Our investments in quality properties in key Dexus is a leading Australasian real asset
our business CBD locations benefit from the concentration investment manager. Our funds management
of knowledge industries. In addition, we are business provides third party capital with
model and undertaking city-shaping developments exposure to quality, sector-specific and
how we are to serve vibrant communities. Our active diversified real estate and infrastructure
responding industrial development pipeline also supports investment products. These funds have a
the expansion of e-commerce businesses strong track record of performance and benefit
which is driving significant growth in demand from leveraging the investment management
for industrial property. The infrastructure capabilities of the overall Dexus platform.
investments we manage enable us to support In response to the growth in pension capital
the requirements of the growing populations of fund flows, we are strengthening our funds
the cities in which we operate. We work closely management business by attracting new third
with our third party capital partners, public party capital, expanding existing investment
authorities, real estate consultants, technology products and by launching new products
providers and the wider community in where we believe a competitive advantage
undertaking these activities. can be obtained.

12 Dexus 2024 Annual Report

There are various megatrends that Since 2019, we have aligned our Annual Report with the
Integrated Reporting Framework to meet increasing market
could impact Dexus’s strategy and demands to demonstrate how Dexus leverages sustainability
outlook, and we actively review to create long-term value. The material topics from our
materiality assessment (page 19) inform the ‘value drivers’
them as the nature and potential of within the value creation framework on pages 10–11 and are
these trends can change over time. aligned to the megatrends identified in the table on this page.

Overview
Social and Sustainability

Approach
demographic change revolution

Australia’s population is growing and changing, A growing recognition that environmental,

becoming more diverse by culture and age social and governance (ESG) factors are
grouping. The working age population is also economic issues driving a sustainability
reducing in proportion to those of retirement revolution. There are increasing opportunities
age and new entrants to the workforce have for sustainability related investments and,

Performance
different expectations and experience from to gain access to sustainable investment
prior generations. These trends have significant flows, businesses need to address the
implications for how society works, lives and environmental, social and governance
plays as well as the products and services issues that are material to their ability to
required to support these activities. create value. Investors are also demanding
better, more transparent ESG measurement
and reporting.

Governance
Real assets Financial

People and capabilities Customers

Customers Communities

Directors’ report
Communities Environment

Workforce composition is increasingly diverse, We have welcomed the increasing interest

and expectations for a seamless experience from our investors, third party capital
that enables collaboration and flexibility has partners and customers about how we
never been greater. Ageing demographics are managing ESG issues. The Dexus
will continue to underpin strong growth Sustainability Strategy has been integrated
Financial report

in healthcare spending and demand for with the Dexus Strategy and has been
healthcare services such as hospitals, medical designed to address emerging ESG risks
centres and medical office buildings. As our and opportunities. We have integrated the
customers adapt to these changes, they are reporting of our ESG performance into our
increasingly adopting mobile technology and Annual Report to enhance communication
focusing on health and wellbeing. In response, with our stakeholders and support the
our focus is on delivering ‘simple and easy’ further integration of ESG into our business
experiences and developing new services model. We benchmark our ESG approach
that reduce pain points for customers and using investor surveys and have established
promote the health and wellbeing of people globally leading positions in these surveys.
Investor information

and communities.

13
Strategy

WHY To unlock potential

WE EXIST
and create tomorrow

OUR To be globally recognised as Australasia’s

VISION leading real asset manager

By delivering superior risk-adjusted returns for Dexus

HOW
WE WILL Security holders and our capital partners by owning,
ACHIEVE THIS managing and developing quality real estate and
infrastructure assets

WHERE
LARGE, GROWING ABILITY TO ACHIEVE LEVERAGE MULTI-SECTOR
WE WILL
MARKETS LEADERSHIP SKILLSET
INVEST

OFFICE INDUSTRIAL RETAIL HEALTH INFRASTRUCTURE ALTERNATIVES

WHAT DEEP LOCAL SECTOR ACTIVE MANAGEMENT INVESTMENT PARTNER OF

WE WILL BE EXPERTISE APPROACH CHOICE
KNOWN FOR Specialist sector teams with deep Access to quality opportunities Trusted partner and aligned
local knowledge and and outperformance via active long-term co-investor for third
end-to‑end capability asset management party capital

HOW
WE OPERATE
Collective Client Sustainability Trusted Constant
talent mindset impact governance evolution

KEY Adjusted Funds Investment Capital strength Employee Customer

MEASURES From Operations performance & efficiency engagement satisfaction
OF SUCCESS

14 Dexus 2024 Annual Report

In pursuing our vision, Our purpose to Unlock potential, Within these markets, there are three
create tomorrow reflects our unique traits that we want to be known
we seek to be known ability to create value for our people, for which will set us apart over the
for our deep local customers, investors and communities long term:
over the long term.
sector expertise, – Deep local sector expertise
active management Our vision is to be globally recognised – Active management approach
as Australasia’s leading real asset
approach and for being manager.
– Investment partner of choice
the investment partner We will achieve leadership by delivering Building competitive advantage in
of choice. superior risk-adjusted returns for these areas will enable us to deliver
Dexus Security holders and our capital superior risk-adjusted returns over the
partners from owning, managing and long term.
developing quality real estate and

Overview
infrastructure assets. Our people are the key to our success.
The way we operate on a day-to-day
The real estate and infrastructure basis, or the ‘Dexus Way’, guides how
opportunity in Australasia is significant. our teams deliver:
Underpinned by our focus on driving
performance, we seek to invest in areas – Collective talent – harnessing the
with the following characteristics: collective potential and diversity
of our talented people

Approach
– Large, growing markets, with – Client mindset – addressing evolving
– Ability to achieve leadership, which needs of our clients when making
– Leverage our multi-sector skillset decisions
– Sustainability impact – prioritising
Our platform currently has a tangible impact aligned with
well‑established presence in office, commercial goals
industrial and retail, with an emerging – Trusted governance – operating

Performance
presence in healthcare, infrastructure, a sound business for all our
alternatives. stakeholders
– Constant evolution – driving
productivity and innovation by
finding a better way

Governance
Directors’ report
What sets Dexus apart?

1 2 3
Deep local Active management Investment partner
sector expertise approach of choice
Financial report

Our specialist teams We drive outperformance We are a trusted

provide deep local through-the-cycle by partner and custodian
market knowledge and applying the knowledge for a broad range of
end-to-end capability. and capabilities of our third party investors.
Each sector team is platform. We actively Dexus provides long term
focused on executing assess performance alignment by investing
bespoke strategies and recycle capital with our balance sheet
to deliver investment a view to enhancing portfolio alongside our
outperformance. portfolio composition. capital partners.
Investor information

15
Sustainability Strategy
Dexus’s strategy is underpinned by a commitment
to sustainability principles and performance.

We acknowledge the Adapting our sustainability approach Our Sustainability Strategy aligns with
to changing expectations is important Dexus’s purpose through its aspiration
impact that ESG and for managing risk and unlocking future to unlock the potential of real assets to
sustainability-related risks value. A key guiding principle of our create lasting positive impact and a
Sustainability Strategy is to ensure it more sustainable tomorrow.
and opportunities can have prioritises and focuses effort on the
on the value of the assets issues that are most material to Dexus
The strategy identifies three Priority
Areas for greater focus and investment,
we invest in and the financial to drive greater impact in a targeted
while also recognising the foundational
and effective way. Our Sustainability
success of our business. Strategy supports the achievement
sustainability activities that uphold the
company’s social licence to operate.
of Dexus’s Strategy and has been
Corporate Australia is increasingly informed by the results of our latest
focusing on sustainability issues as the materiality review (pages 18–19).
‘sustainability revolution’ megatrend
gains momentum (see page 13).
Sustainability is a key consideration
for our investors, funds management
clients, customers and communities.
Our Sustainability Strategy
prioritises the creation of value and
sustainability impact.

16 Dexus 2024 Annual Report

Priority Areas Foundations Implementing our
The Priority Areas that we believe will The Foundations that underpin our Sustainability Strategy
create greater sustainability impact Sustainability Strategy incorporate the A major focus in FY24 has been to
while unlocking increased commercial sustainability areas that are important embed the Sustainability Strategy
value are: Customer Prosperity, Climate for our stakeholders. These include across the platform. This included
Action and Enhancing Communities. Circularity; Indigenous Engagement; the development of sustainability
These priority areas utilise our core Health & Wellbeing; Nature; Diversity, roadmaps for each Priority Area.
business activities and assets to Equality & Inclusion; Human Rights; These have then been implemented
elevate the importance of customers, and Governance & Reporting. Our into our fund’s investment and asset
climate and communities to achieve commitment is to meet stakeholder plans and budgets. Each of the areas
sustainability outcomes. They also expectations in these foundational of the strategy are addressed in more
provide a balance across economic, areas, building a platform for greater detail in subsequent sections of this
social and environmental sustainability. impact and value creation in the annual report.
Priority Areas.

Overview
Approach
Unlock the potential of real assets to create lasting
positive impact and a more sustainable tomorrow

Priority Areas

Performance
Customer Customer Prosperity
Prosperity
Supporting the prosperity of

Governance
our customers through the
investment, design, development
and management of real assets.
Dexus’s products and services aim
to support occupant wellbeing and
Priorities sustainability performance.
Climate
Action

Directors’ report
Enhancing Climate Action
Communities
Focusing on climate action to
accelerate the transition to a
decarbonised economy, while
also safeguarding and advancing
our people, assets, property and
Financial report

financial returns.

Foundations Circularity Diversity, Equity

& Inclusion

Indigenous
Engagement Human Rights
Enhancing Communities
Investor information

Health & Governance &

Helping the communities around
Wellbeing Reporting
our assets through inclusive and
accessible design and placemaking,
Nature and investment in infrastructure that
creates social value.
17
Materiality review
The concept of materiality is central
to our approach to sustainability.

Materiality provides the These assessments include a reset We also engaged directly with
of Dexus’s approach to material key internal stakeholders, including
means to prioritise and focus topics through external stakeholder Sustainability, Investor Relations,
on the issues of greatest engagement and internal workshops, Finance, Funds Management, Strategy,
analysis of various inputs (such as P&C and Risk teams.
importance to our business, employee surveys and external
while also helping inform research) and external validation.
While the materiality of some topics
have changed as a result of this
our stakeholders about how This process determines the categories
analysis, the top five most material
and definitions of material topics, which
material sustainability issues are tested each year via materiality
topics for Dexus remain unchanged.
These are:
impact our ability to create reviews until the next materiality
assessment is conducted. – Customer engagement
value and mitigate risk.
and experience
This year we undertook a materiality
review, with inputs from research and – Decarbonisation and circularity
Dexus has completed regular published reports, investor, customer – Economic performance
assessments and reviews of material and employee surveys, upcoming and resilience
topics and key megatrends since 2011. regulation (e.g. Australian Sustainability
Comprehensive materiality assessments – Asset environmental performance
Reporting Standards), media analysis and optimisation
are typically conducted every two to for relevant high-profile issues or
three years, with the most recent being incidents. – Championing a high-performance
completed in FY23. workplace culture

Materiality assessment and review and process

1 2 3 4 5

Desktop Stakeholder Consolidation Double Validation

analysis engagement & prioritisation materiality & finalisation

FY23 Materiality Topics identified, Sustainability topics Identified topics Double materiality List of sustainability
Assessment defined and discussed with consolidated to analysis applied to the topics validated and
categorised in themes internal and external discrete sustainability sustainability topics. prioritised by Dexus
through a review of stakeholders to topics. Topics scored Topics assessed management and the
internal and external understand their and ranked according to determine the Board ESG Committee
documentation. relative importance. to a set criteria. potential contribution and represented via
each could make the materiality matrix.
to the United
Nations Sustainable
Development
Goals (SDGs).

FY24 Materiality Research and review Consultation with Topics re-scored and Consideration of any Validation with
Review of key megatrends internal stakeholders rankings tested. changes to double Executive Committee
and material topics, to review material materiality of topics. and the Board
and how they align topics, informed by Sustainability
with Dexus’s strategic research and analysis. Committee. Materiality
risks, risk management matrix adjusted to
activities, operations, reflect the newly
and project initiatives. assessed material
topics. The five most
material topics retained
their rankings.

18 Dexus 2024 Annual Report

Dexus 2024 Materiality Matrix
Higher
Climate resilience Decarbonisation & circularity
Customer engagement
& adaptation & experience
Community impact
& engagement
Technology
Importance to stakeholders

& innovation Asset environmental Economic performance

performance & & resilience
optimisation

Placemaking &
place-keeping Corporate transparency
Championing a
high-performance
workplace culture
Indigenous
Shareholder engagement Corporate advocacy Diversity,
sustainability activism inclusion &
belonging

Overview
Biodiversity Corporate
governance

Responsible
supply chain

Lower
Lower Importance to Dexus Higher

Approach
Environment Social Governance

Dexus’s most material sustainability topics

Material topic Sub-topics Definition Value drivers

Performance
Customer engagement – Customer engagement Providing safe and healthy assets and places, – Customer experience
and experience and experience while responding to changing customer needs, – Occupancy rates
– Customer attraction including focus on sustainability goals and – Health, safety & wellbeing
and retention identifying new opportunities.
– Customer health
and wellbeing

Decarbonisation – Embodied carbon Supporting the transition to a low carbon economy – Resource efficiency

Governance
and circularity – Electrification through innovation and partnering across the value – Attractiveness of assets
– Future-fit buildings chain to accelerate decarbonisation. Incorporates – Supply chain focus
deployment of renewables, exploring new
– Materials selection
opportunities for electrification, and minimisation of
– Smart buildings embodied carbon in construction. Consideration of
circular principles in design and construction to build
smart and ‘future-fit’ buildings that offer flexibility
and adaptability of use and de-fit/re-fit processes.

Economic performance – Economic performance Delivering returns for investors from high‑quality real – Financial performance

Directors’ report
and resilience – Sustainable growth assets through the cycle and over the long term. – Capital management
and investment – Corporate governance
– Market volatility – Portfolio scale and
– Responsible investment occupancy

Asset environmental – Energy efficiency Proactively managing asset performance – Green buildings
performance and – Waste management and promoting and embracing innovation – Resource efficiency
solutions to advance resource management,
optimisation – Water use efficiency – Development pipeline
reduce environmental impacts and improve
– Indoor environment – Climate resilience
asset desirability.
quality
Financial report

– Environmental
management systems

Championing a – Talent attraction, Embracing new opportunities to attract and retain – Employee engagement
high‑performance retention and high calibre talent with a range of skills, experience – Diversity and inclusion
workplace culture engagement and creativity. Building and empowering high – Health, safety
– Employee skills and performing teams through career development and wellbeing
development opportunities and flexibility in ways of working.
– Employee health, Continuing to prioritise the safety and wellbeing
safety and wellbeing of employees.
Investor information

Dexus’s material topics are incorporated into the Enterprise Risk Management processes, including the identification of Key
Risks on pages 20–25 of this report. Dexus reports in accordance with the GRI Standards reporting guidelines. The 2024 GRI
Index provides a comprehensive reference specifying the disclosure of material topics across our 2024 Annual Reporting Suite.
More information on the 2024 GRI Index can be found within the 2024 Sustainability Data Pack.
19
Key risks
We recognise that effective risk management
requires an understanding of risks during all
phases of the investment life cycle.

Key risks1 Health, safety and wellbeing

Description The risk of not providing an environment that ensures the safety and wellbeing of
employees, customers, contractors and the community at Dexus-managed
assets or responding to events that have the potential to disrupt business continuity.

Potential – Death or injury (physical or psychological) – Inability to sustainably perform or

impacts at Dexus properties deliver objectives
– Loss of broader community confidence – Increased employee turnover or absenteeism
– Costs or sanctions associated with regulatory – Reduction in employee wellbeing,
response, remediation and/or restoration, engagement and performance
and criminal or civil proceedings – Business disruption

Link to key
Real assets
resources

People and capabilities

Customers

Communities

How Dexus is As a priority, we focus on health, safety and – Ensuring compliance with legislative
responding wellbeing to ensure safety risks arising from and regulatory obligations
our business are appropriately managed. – Providing appropriate training, information
To achieve this, we have implemented an and instruction on Dexus Health Safety
ISO 45001 certified Occupational Health and and Wellbeing programs
Safety Management System to ensure the
– Actively promoting and developing initiatives,
effective management of health safety and
objectives, and targets to improve Health
wellbeing risks across the portfolio. Assisted
Safety and Wellbeing performance
by this system, Dexus is committed to:
– Providing safe and healthy working conditions, We maintain a business continuity management
including managing the physical and framework to mitigate safety threats, including the
psychological health, safety and wellbeing adoption of plans relating to crisis management,
of workers business continuity and emergency management.
– To the extent it is within Dexus’s control, Responsiveness at each Dexus‑managed
providing a safe environment for all property is regularly tested through scenario
customers and other persons entering exercises. Key performance indicators for
Dexus owned and managed assets reporting and resolution of security issues are
and development sites by developing, embedded into contractor agreements at
managing, monitoring, and implementing Dexus‑managed assets.
tailored risk management processes

20 Dexus 2024 Annual Report

Effective risk management is critical to We are committed to high standards Our key risks incorporate insights and
our vision, achieving our strategy and of risk management in the way we material topics relating to ESG from our
delivering high-quality products and conduct business and actively identify materiality review process, described on
services to customers and maximising and manage risks that may impact the pages 18–19.
investor returns. realisation of our strategy.

Strategic resilience Investment and financial performance

Overview
Inability to deliver the group’s strategic Inability to meet market guidance, achieve the group’s
objectives, generate value and deliver performance objectives and mitigate factors that may adversely
superior risk‑adjusted performance. impact the Dexus portfolio.

Approach
– Sustained inflation and recessionary pressures on the – Inability to meet guidance
economy which could impact strategic outcomes – Inability to sustainably perform or deliver
– Change in external market conditions investment objectives
– Loss of broader community confidence – Sustained inflation and recessionary pressures on the
– Reputational damage economy which could impact financial performance
– Reduced investor sentiment (equity and debt)

Performance
– Loss of broader community confidence
– Reduced credit ratings and availability of debt financing
– Decline in asset valuations
– Reputational damage

Financial Financial

Governance
Real assets Real assets

Customers

Communities

Dexus’s vision is to be recognised as the leading real asset We have processes in place to monitor and manage Directors’ report
investment manager in Australia. Dexus aims to achieve performance and risks that may impact on performance.
this through providing superior risk adjusted returns for Dexus management is responsible for the consideration,
investors through investing Dexus balance sheet capital approval or endorsement, subject to delegated authority,
and managing investments on behalf of its third party of material investment decisions.
capital partners.
The Dexus Executive Investment Committee includes the Chief
Dexus has processes in place to monitor and manage Executive Officer, Chief Financial Officer, Chief Investment
Financial report

strategic outcomes and risks. Its strategy and risk appetite Officer and other executive representatives who are responsible
are approved annually by the Board and reviewed for the consideration, approval or endorsement, subject to
throughout the year by management and the Board delegated authority, of material investment decisions. Detailed
Risk Committee. due diligence is undertaken for developments before approval
or endorsement of each investment decision.
Progress against strategy is subject to regular review
and reporting to the Board and regular sensitivity Detailed due diligence is undertaken for all investment and
analysis undertaken. divestment proposals and major capital expenditure before
approval or endorsement of each investment decision. Major
capital projects are monitored by control groups to assess
delivery and performance outcomes. Quarterly monitoring
Investor information

and review of financial results is reported to the Board.

1. While this section highlights key risks, we are unable to foresee all risks, opportunities and outcomes that will materially affect our ability to create
value over the long term.

21
Key risks continued

Key risks1 Capital management Development

Description Inability of the capital structure of the business to The risk of not achieving development objectives
withstand unexpected changes that provide the opportunity to grow Dexus’s
in equity and debt markets. and our third‑party capital partners’ portfolios
and enhance future returns.

Potential – Constrained capacity to execute strategy – Fund mandates negatively impacted

impacts – Increased cost of funding (equity and debt) – Leasing outcomes impacting on
– Fluctuations in interest rates which could completion valuations
impact the cost of debt – Fluctuations in construction costs
– Fluctuations in foreign exchange rates which – Negative impacts on supply chain channels
could impact profitability (cost and availability of resources)
– Reduced investor sentiment (equity and debt) – Reputational damage
– Reduced credit ratings and availability of
debt financing

Link to key
Financial Financial
resources

Real assets

How Dexus is Our prudent management of capital, Dexus has a strong development capability
responding including regular sensitivity analysis and with a proven track record of delivering projects
periodic independent reviews of the Treasury with a focus on quality, sustainability and returns
Policy, assists in positioning Dexus’s balance that satisfy the evolving needs of our growing
sheet in relation to unexpected changes in customer base.
capital markets.
We have platform-wide expertise that drives
We maintain a strong balance sheet with our development performance and objectives,
diversified sources of capital. Ongoing including design and costing, leasing, risk and
monitoring of capital management is compliance and insurance coverage.
undertaken to ensure metrics are within risk
appetite thresholds benchmarks and limits
outlined within the Treasury Policy.
Further information relating to financial
risk management is detailed in Note 14 of
the 2024 Financial Report contained in this
2024 Annual Report.

22 Dexus 2024 Annual Report

Institutional and Cyber and Compliance
retail investors data security and regulatory

Inability to deliver on strategic Inability to access, protect and The risk of not meeting requirements
objectives to meet the financial and maintain systems and respond to or expectations of investors and
non-financial expectations of listed major incidents including data loss, regulators through governance and
and unlisted investors. cyber security threats to or breaches compliance practices.
of information systems.

– Change in strategy and/or – Lack of resilience in Dexus’s response – Sanctions impacting on

capacity of existing third party to cyber security threats business operations

Overview
capital partners – Impact to Dexus’s customers – Reduced investor sentiment
– Inability to attract new third party and/or investors (equity and debt)
capital partners – Loss of broader community – Loss of broader community
– Loss of confidence in governance confidence confidence
structure and service delivery – Data integrity compromised – Increased compliance costs
– Loss of funds management income – Loss or damage to systems or assets

Approach
– Reputational damage

Performance
Financial Real assets People and capabilities

Real assets People and capabilities

Customers Customers

Governance
Communities Communities

Our funds management model We aim to have the most efficient Our compliance monitoring program
includes strong governance principles systems and processes, including supports our comprehensive compliance

Directors’ report
and processes designed to build financial accounting and operational framework policies and procedures
and strengthen relationships with systems. Regular reviews of policies that are regularly updated to ensure
existing and prospective third party and procedures on information the business operates in accordance
capital investors. security are undertaken. with regulatory expectations.
Our active approach to engagement We have comprehensive Business Our employees and service providers
across the business enables Continuity and Disaster Recovery plans receive training on their compliance
employees to understand the interests in place which are tested annually. obligations and are encouraged to
of third‑party capital investors raise concerns where appropriate.
Regular training, testing and disaster
and design strategies to maintain
recovery activities are conducted, We maintain grievance, complaints
investor satisfaction.
Financial report

along with the employment of and whistleblower mechanisms for

Our Funds Management team also data security software, to assist employees and stakeholders to safely,
undertakes a periodic client survey to in reducing the risk of threats to or confidently and anonymously raise
understand perceptions and identify breaches of data. We also educate concerns. Independent industry experts
areas for improvement. and train our people on how to best are appointed to undertake reviews
protect their data. where appropriate.
Additional reviews have been
undertaken in response to the increased
frequency and nature of cyber-attacks
experienced across the broader
Investor information

Australian corporate landscape.

Mitigation strategies are in place
to address potential cyber security
threats to, or via, our assets.

23
Key risks continued

Environmental and
Key risks1
social sustainability Organisational culture

Description The risk of not responding to the impacts Inability to maintain a respectful, open and
of climate change or mitigating negative transparent culture which supports diversity
social impacts in the communities in which of opinion and values acting honestly,
Dexus operates. ethically and with integrity.

Potential – Increased costs associated with global – Decreased business performance

impacts and domestic energy market fluctuations – Inappropriate conduct leading to
– Increased challenges and climate transition reputational damage or financial loss
impacts in leasing assets due to heightened – Reduced investor sentiment (equity and debt)
customer demand for sustainability and
– Inability to attract and retain talent due to a
climate change performance in real assets
perception of poor corporate culture
– Increased costs associated with physical risks
(e.g. asset damage from extreme weather)
– Increased costs associated with transition
risks (e.g. carbon regulation, requirements
for building efficiency)
– Inability to maintain access to capital due
to reputational damage
– Increased reputational risk for not supporting
the community and social causes

Link to key
Customers People and capabilities
resources

Communities Customers

Environment Communities

How Dexus is Dexus implements an ISO 14001 accredited We foster a culture and employee experience
responding Environment Management System including an that aligns and continually reinforces the group’s
environment risk assessment and audit program purpose statement, including our aspirations, values
to identify and assess risks associated with DXS and behaviours.
owned assets and operations, and to monitor that
Our employee listening strategy enables employees
controls are effectively implemented.
to provide anecdotal and anonymous feedback via
We use scenario analysis to understand the broad pulse surveys throughout the year. Insights gained
range of climate-related issues that may impact are used to understand our culture and employee
our business and focus on enhancing the resilience experience, to identify strengths and areas of
of our properties while implementing energy opportunity that require additional focus.
efficiency initiatives and renewable energy projects.
Our employee reference groups are empowered
Dexus’s approach to climate change risk to implement organisational initiatives to build an
management is disclosed in accordance with inclusive workplace, such as our LGBTQ+ employee
the recommendations of the Task Force on network and the Reconciliation Action Plan Working
Climate‑related Financial Disclosures across Group.
the 2024 Annual Reporting Suite.
We also invest in our employees’ development and
We are committed to ensuring our operations reward their achievement of sustainable business
provide quality jobs with the right conditions and outcomes that add value to our stakeholders.
collaborate with our suppliers to understand how
we can contribute to upholding human rights
across our supply chain, including addressing
modern slavery.

24 Dexus 2024 Annual Report

 Third party supplier
Talent and capability management

Inability to attract and retain the best talent Adverse impact from an external party including
to deliver business results. suppliers, vendors, contractors, or service
providers with whom Dexus has outsourced
a service or function.

– Decreased business performance – Lack of resilience in Dexus’s third‑party

– Negative impact to customer relationships supplier’s response to cyber security threats

Overview
– Decline in workforce productivity – Impact to Dexus’s customers and/or investors
– Increased workforce costs – Business or operational disruption
– Loss of corporate knowledge and experience – Reputational damage
– Poor employer brand leading to inability to – Adverse regulatory outcomes
attract talent – Modern slavery/Human rights infringements
– Unplanned employee turnover and

Approach
associated increased costs and time
to resource

Performance
People and capabilities
Financial

Real assets

Customers

Governance
Communities

We aim to attract, develop and retain an Dexus acknowledges our responsibility to

engaged and capable workforce that can ensure that standards relating to people, the
deliver our business results both today and in the environment and the communities in which
future. Professional development is undertaken we operate are maintained and continuously

Directors’ report
across the organisation to drive continuous improved throughout our supply chain. Dexus
learning and engagement of our employees. is committed to working with contractors and
service providers who maintain the highest
Talent reviews are conducted at regular intervals
ethical, safety and quality standards.
to monitor and respond to emerging talent risks
and opportunities and to inform succession We are committed to ensuring our operations
plans for key talent and critical roles. External provide quality jobs with the right conditions and
talent mapping is undertaken for critical roles. collaborate with our suppliers to understand how
we can contribute to upholding human rights
As a part of the employment value proposition,
across our supply chain, including addressing
our people are offered the opportunity to have
Financial report

modern slavery.
an ownership interest in Dexus and in doing so,
promote a tangible link between the interests of To support the delivery of our environmental,
employees, Dexus and its investors. All eligible social and governance commitments and
employees are allocated a number of DXS objectives, we request that all suppliers
securities with an aggregate equivalent cash engaging with Dexus agree to abide by
value of $1,000 each year. the Supplier Code of Conduct.
Investor information

25
Key resources
We rely on our key resources and relationships
to create value now and into the future.
Our key resources and how they are linked to value creation

Financial

Our financial resources are the pool of funds available Our prudent management of financial capital underpins
to us for deployment, which includes debt and equity the delivery of returns to Dexus investors.
capital, as well as profits retained from our investments,
funds management, development and trading activities.
This also includes the financial capital from our third party
capital partners which we invest on their behalf.

Real assets

Our real estate and infrastructure assets are central to Our real asset portfolio is concentrated in Australia
how we create value. We actively manage our portfolio and New Zealand’s major cities, which we contribute to
to enhance its potential, while unlocking value through shaping as leading destinations to live, work and play.
development to further enhance quality or for higher and
better uses.

People and capabilities

Our people’s knowledge and expertise are key inputs to Our intellectual capital enables us to instil strong
how we create value. corporate governance, sound risk management and
maintain a focus on health, safety and wellbeing at all
We are a passionate and agile team who want to make
levels of our business.
a difference. We focus on sustaining a high-performing
workforce supported by an inclusive and diverse culture.

Customers

Our capacity to create value depends on strong We support the prosperity of our customers through the
relationships with our customers. investment, design, development and management
of real assets. Dexus’s products and services support
occupant wellbeing and sustainability performance.

Environment

The efficient use of natural resources and sound We understand, monitor and manage our environmental
management of environmental risks and opportunities impact, setting short-term and long-term measurable
supports our creation of value through delivering cost environmental performance targets.
efficiencies and operational resilience.
We prepare for the physical impacts of climate change,
while harnessing opportunities that support the transition
to a low carbon economy.

Communities

Our capacity to create value depends on strong We support communities around our assets through
relationships with the communities around our assets. inclusive and accessible design and placemaking, and
investment in infrastructure that creates social value.

26 Dexus 2024 Annual Report

The value that is created How we measure value

Financial performance Page 30

Superior long-term performance for our investors and – Distribution per security
third party capital partners, supported by integration – Adjusted Funds From Operations (AFFO) per security
of ESG issues into our business model.

Overview
– Return on Contributed Equity (ROCE)

Leading cities Page 38

Approach
A high-quality portfolio that contributes to economic – Scale: value of real assets
prosperity and supports sustainable urban – Customer demand and space use: property
development across Australasia’s key cities. portfolio occupancy
– Economic contribution: construction jobs supported
and Gross Value Added (GVA) to the economy from
development projects

Performance
– Development pipeline: value of group
development pipeline

Thriving people Page 52

An engaged, capable and inclusive workforce, – Employee engagement: Employee

adopting high-performance ways of working to Engagement Score

Governance
deliver on our strategy. – Gender diversity: female representation in senior
and executive management roles
– Health and safety: workplace safety audit score

Customer prosperity Page 58

Directors’ report
Productive and satisfied customers supported – Customer experience: customer Net Promoter Score
by high-performing real assets that enhance the – Initiatives that enhance occupant health and
wellbeing of the individuals and communities who wellbeing benchmarked using the NABERS Indoor
work in and visit our places. Environment performance rating

Climate action Page 62

Accelerating the transition to a decarbonised – Resource efficiency: energy and water reductions
Financial report

economy, while also safeguarding and advancing and waste management

our people, assets, property and financial returns. – Climate resilience: Greenhouse gas
emissions reductions
– Performance ratings: NABERS and Green Star ratings

Enhancing communities Page 72

Investor information

Engaged local communities in and around our – Community engagement: number of assets
assets through inclusive and accessible design delivering activations
and placemaking, and investment in infrastructure – Community contribution: total value contributed,
that creates social value. hours of employee volunteering

27
Key business activities
We create value for our stakeholders through
owning, managing and developing quality
real estate and infrastructure assets.

Our key business activities We seek to be known for our deep Expanding our platform enables
local sector expertise, our active continued investment in our capabilities,
of owning, managing and management approach and for systems and processes. For Dexus
developing seek to deliver being the investment partner of Security holders, this provides the
choice. These traits enable Dexus ability to access enhanced returns
superior risk-adjusted to attract third party capital which as the business becomes increasingly
returns from each asset provides the opportunity to develop capital efficient.
on the Dexus platform. incremental scale in our target markets
and capacity to invest in evolving
our platform.

We create value
through our key
business activities
g
wnin
O

Infrastructure
Managing

Our key
areas of
operation

Real estate

D
ev
elo
pin
g

28 Dexus 2024 Annual Report

 Overview
Approach
Performance
Owning Managing Developing
Dexus invests its balance sheet capital Dexus manages a $54.5 billion Dexus focuses on development
directly and indirectly into a portfolio Australasian real estate and infrastructure opportunities that will improve portfolio
of high-quality assets (Investment portfolio. This includes the directly held quality and enhance future returns
Portfolio). Dexus’s Investment Portfolio investments and $39.7 billion of funds through leveraging our integrated real
is the largest driver of financial value for under management on behalf of third asset platform.

Governance
Dexus Security holders (83%1 of Funds party capital partners.
At 30 June 2024, the Dexus platform
From Operations (FFO) for the financial
In our real estate portfolio, we utilise our has a $16.1 billion group real estate
year ended 30 June 2024).
management expertise to maximise development pipeline. The pipeline
The Investment Portfolio primarily value from the assets we manage includes committed and
comprises ownership interests in across the platform. This active uncommitted projects across major
high-quality office and industrial approach seeks to add value through Australian cities that support long-term
assets and includes interests in third leasing to diversify the customer mix growth for Dexus and our third party
party funds that are managed by across our real estate portfolio and capital partners.

Directors’ report
Dexus. The Investment Portfolio will capitalise on the stage that we are at in
Development also delivers on our
become more diversified over time the cycle. Our in-house project delivery
capital partners’ strategies and
as we invest alongside partners group assists in effectively managing
provides organic growth in assets under
into a broader opportunity set. downtime and delivering capital works
management. Dexus’s share of the
At 30 June 2024, Dexus’s investment projects in a timely manner.
development pipeline is $7.9 billion with
portfolio was valued at $14.8 billion.
Our infrastructure portfolio is supported the remaining $8.2 billion spread across
by capability and expertise in our funds management portfolio.
managing infrastructure investments
on behalf of third party capital, with
meaningful exposure in transport,
Financial report

energy, social and health infrastructure.

Our ability to attract key strategic
capital partners is testament to
our experience and leading market
position. We seek to be identified as
the investment partner of choice and
have a strong track record of driving
investment performance for our third
party capital partners. We believe this
track record positions us well to continue
Investor information

to attract like-minded investors into our

funds management business.

1. FFO contribution is calculated before net finance costs, group corporate costs and other FFO.

29
 Financial performance
Our prudent and active management
of financial capital underpins the delivery
of returns to investors.

$516.3m 48.0 cents 32.0%

Adjusted Funds AFFO and Distribution Pro forma gearing1
From Operations per security FY23: 27.9%2
FY23: $555.0m FY23: 51.6 cents
Financial
performance
$(1,583.8)m 4.0%
Statutory net profit/ Return on
(loss) after tax Contributed Equity
FY23: $(752.7)m

30 Dexus 2024 Annual Report

Our capacity to sustain Our platform currently has a Consistent with our strategy, from
well‑established presence in office, FY25 the distribution policy has been
financial performance industrial, and retail, with an emerging updated to pay out 80–100% of AFFO,
depends on our ability to presence in healthcare, infrastructure, providing a sustainable source of
alternatives. Within these markets, capital to invest through the cycle
leverage our key resources there are three traits that we want to into return-enhancing investment
to create value, underpinned be known for which will set us apart opportunities. With a preference to
by a high standard of over the long term: co-invest alongside capital partners,
we see attractive opportunities in
corporate governance. – Deep local sector expertise the industrial, infrastructure and
– Active management approach alternative investment sectors.
Our financial resources are the pool of – Investment partner of choice
funds available to us for deployment, How we measure
which includes debt and equity capital, Building competitive advantage in financial performance

Overview
as well as asset recycling activities these areas will enable us to deliver
superior risk-adjusted returns for Dexus When measuring financial performance,
and profits retained from our property,
Security holders over the long term. we focus on growth in Adjusted
funds management, co-investments,
Funds From Operations (AFFO) and
development and trading activities.
We evolved our capital allocation distribution per security, as well as
This also includes the financial capital
framework to establish a holistic Return on Contributed Equity to
from our third party capital partners
approach to allocating capital across measure the returns achieved for
which we invest on their behalf.
a broader, more diverse opportunity set.

Approach
our Security holders.

Where we will invest Our framework establishes a clear

hierarchy for how we allocate and
Underpinned by our focus on driving manage our capital to protect
performance, we seek to invest in areas downside, promote active management
with the following characteristics: and drive improved risk-adjusted returns
– Large, growing markets, with for Security holders over the long term.

Performance
– Ability to achieve leadership, which Acknowledging the right combination
– Leverage our multi-sector skillset of capital uses will change through
time, we have designed our framework
to be dynamic, enabling adjustments
based on market conditions, our
growth aspirations and risk appetite.

Governance
Board Focus

Directors’ report
In FY24, the Board and Board Audit Committee was involved in considering and
approving Dexus’s financial reports, audit reports, market guidance, distribution
details, funding requirements and liquidity, as well as property portfolio valuation
movements and overseeing Dexus’s internal audit program.
Key areas of focus in FY24 included:
– Approving the financial KPIs and – Noted the appointment of Dexus’s
the Group Scorecard core tax advisor and internal auditor
– Approving Dexus’s annual and effective from FY25
Financial report

half year results materials – Approval of the extension and/or

– Approving capital management repricing of $1 billion in bank facilities
initiatives with multiple lenders at commercially
attractive terms and conditions
– Overseeing the tender process for
Dexus’s external audit for FY25 with
the intention of appointing KPMG as
statutory auditor subject to Security
holder approval at the 2024 AGM
Investor information

1. Adjusted for cash and debt in equity accounted investments, excludes Dexus’s share of
co-investments in pooled funds. Pro forma gearing includes committed transactions post
30 June 2024. Look-through gearing at 30 June 2024 was 32.6%. Pro forma look-through
gearing including Dexus’s share of equity accounted co-investments in pooled funds was
33.2% at 30 June 2024.
2. Pro forma gearing including proceeds and payments for transactions post 30 June 2023
that settled before 16 August 2023. 31
Financial performance continued

Group performance Operationally, Underlying Funds From – Other FFO expenses reduced by
Operations (excluding trading profits) $17.1 million, driven by lower FFO
Broader business sentiment continues
of $693.1 million was 0.7% above the tax expense as a result of interest
to be impacted by prolonged economic
prior year, demonstrating resilience. costs on acquisitions within Dexus
uncertainty, with impacts from higher
Operations Trust (DXO)
interest rates, inflation and geopolitical Key drivers included:
risks being felt across the economy AFFO of $516.3 million was 7.0% lower
– Total Investments FFO reduced by
and business sector. Operating in this than the prior year driven by lower
$31.8 million driven by divestments,
environment remains challenging. Both trading profits, with AFFO excluding
partly offset by fixed rent increases,
capital raising and transaction volumes trading profits marginally higher than
recently completed developments,
have slowed and capitalisation rates the prior year:
higher one‑off income related to the
have continued to expand, driving
industrial portfolio and increased – Trading profits of $10.3 million (net
further declines in valuations across the
income from co‑investments in of tax) were $39.9 million below
real estate sector this year.
pooled funds the prior year, as Dexus chose not
Dexus delivered AFFO and distributions – Management operations FFO to restock its trading pipeline late
of 48.0 cents per security for the increased significantly by in the cycle
12 months ended 30 June 2024, in $30.0 million, reflecting the AMP – Maintenance capex and incentives
line with guidance. Capital acquisition and recognition of $187.1 million were $3.6 million
Dexus delivered a statutory net loss after of circa $28 million in performance above the prior year, due to
tax of $1,583.8 million, compared to a fees, partly offset by the impact of an increase in lessor works and
statutory net loss after tax of $752.7 million divestments, valuation declines and a the continued impact of higher
in FY23. This movement was primarily lower contribution from development incentives flowing through the
driven by $1,901.6 million of fair valuation milestone fees compared to FY23 portfolio, partially offset by the
losses on investment properties as a – Group corporate costs increased by impact of divestments
result of capitalisation rates softening $17.6 million, primarily due to the AMP On a per security basis, AFFO and
across the portfolio, compared to Capital acquisition and inflation, distributions per security were 48.0 cents,
$1,183.9 million of fair valuation losses with cost management initiatives down 7.0% on the prior year.
recognised in the prior year. Total portfolio implemented as part of the refreshed
valuation movements include the impact operating model We maintained a strong balance sheet
of investments classified as debt in with pro forma gearing (look‑through)1
– Net finance costs reduced by
Australian trusts. of 32.0%, towards the lower end of our
$7.1 million, reflecting the impact of
target range of 30–40%.
The portfolio valuations resulted in divestments on the average debt
a circa 12.9% decrease on prior book balance, partly offset by the impact
values for the 12 months to 30 June of a higher average cost of debt
2024. These revaluation losses primarily
drove the $1.91 or 17.6% decrease in
net tangible asset (NTA) backing per
security during the year to $8.97 at
30 June 2024.

Delivering FY24 Financial performance commitments

FY24 commitment Status FY24 progress

Barring unforeseen circumstances for the 12 months For the 12 months ended 30 June 2024,
ended 30 June 2024: Dexus delivered:
– Dexus expects distributions of circa 48.0 cents per – AFFO and distributions of 48.0 cents per security,
security, below the 51.6 cents per security delivered in line with guidance
in FY23, predominantly driven by lower trading profits – AFFO excluding trading profits of $506.0 million,
– AFFO excluding trading profits is expected to be 0.2% above that delivered in FY23
broadly in line with that delivered in FY23

Maintain a strong and diversified balance sheet. Dexus maintained a strong balance sheet with
pro forma gearing (look‑through) at 32.0%, towards
the lower end of our target range of 30–40%, while
maintaining a conservative debt maturity profile
and hedging levels.

Achieved Not achieved Progressed

32 Dexus 2024 Annual Report

Valuation movements Total FY24 Jun 2024 Dec 2023 83% of FFO from Investments portfolio8
Office portfolio ($1,790m) ($1,177m) ($614m)

Industrial portfolio ($110m) ($37m) ($73m)

Total portfolio 2 ($1,902m) ($1,214m) ($687m)

Weighted average capitalisation rate 30 Jun 24 30 Jun 23 Change

Office portfolio 6.05% 5.21% +84bps

Industrial portfolio 5.45% 4.76% +69bps

Total portfolio2 5.90% 5.11% +79bps

Overview
We continued to maintain a strong financial position with low gearing and
substantial liquidity.
Key financials FY24 FY23 Change

Statutory net profit/(loss) after tax ($m) (1,583.8) (752.7) (110.4)% 60% 8%
Office Co-investments
property FFO in pooled funds
Funds From Operations (FFO) ($m) 703.4 738.5 (4.8)%
16% 1%

Approach
AFFO ($m) 516.3 555.0 (7.0)%
Management Trading profits
operations (net of tax)
AFFO per security (cents) 48.0 51.6 (7.0)%

Distribution per security (cents) 48.0 51.6 (7.0)% 15%

Industrial
Net tangible asset backing per security ($) 8.97 10.88 (17.6)% property FFO

Return on Contributed Equity (%) 4.0 8.0 (4.0)ppt

Performance
Gearing (look‑through) (%) 1 32.0 3
27.9 4
4.1ppt

FY24 FY23 Change

FFO composition $m $m %

Office property FFO 554.2 597.6 (7.3)%

Industrial property FFO 140.7 163.5 (13.9)%

Co‑investments in pooled funds 5 70.3 35.9 95.8%

Governance
Total Investments FFO 765.2 797.0 (4.0)%

Management operations 6 142.6 112.6 26.6%

Group corporate (66.4) (48.8) (36.1)%

Net finance costs (130.1) (137.2) 5.2%

FY25 commitments
Other (including tax)7 (18.2) (35.3) 48.4%
Barring unforeseen circumstances,
for the 12 months ending

Directors’ report
Underlying FFO 693.1 688.3 0.7%
30 June 20259, Dexus expects
Trading profits (net of tax) 10.3 50.2 (79.5)% AFFO of circa 44.5–45.5 cents per
FFO 703.4 738.5 (4.8)% security and distributions of circa
37.0 cents per security.
Maintenance and leasing capex (187.1) (183.5) (2.0)%

Adjusted Funds From Operations (AFFO) 516.3 555.0 (7.0)% Focus areas

1. Adjusted for cash and debt in equity accounted investments and excludes Dexus’s share of
co‑investments in pooled funds. Maintain a strong and diversified
balance sheet.
Financial report

2. Valuation movement excludes co‑investments in pooled funds. Includes the impact of

investments classified as debt in Australian trusts, other property revaluation loss of $1.2m and
excludes leased assets and right of use assets revaluation gain of $0.9m.
3. Pro forma gearing includes committed transactions post 30 June 2024. Look-through gearing
at 30 June 2024 was 32.6%. Pro forma look-through gearing including Dexus’s share of equity
accounted co-investments in pooled funds was 33.2% at 30 June 2024.
4. Pro forma gearing including proceeds and payments for transactions post 30 June 2023 that
settled before 16 August 2023.
5. Includes distribution income from Dexus’s co‑investment stakes in pooled funds and excludes
joint venture and partnership income which is proportionately consolidated in Note 1
Operating Segments within Dexus’s Financial Report.
6. Management operations FFO includes development management fees.
Investor information

7. Other FFO includes non‑trading related tax expense, directly owned childcare property and
other miscellaneous items.
8. FFO is calculated before net finance costs, group corporate costs and other FFO.
9. Based on current expectations relating to asset sales, performance fees and trading profits,
and subject to no material deterioration in conditions.

33
Financial performance continued

FY24 FY23 Change Group outlook

Statutory profit reconciliation $m $m % Markets move in cycles, and while
Statutory AIFRS net profit/(loss) after tax (1,583.8) (752.7) (110.4)% conditions are presently challenging,
Dexus invests for the long term. The
Gains from sales of investment property – 0.6 (100.0)% assets we own, manage and develop,
Fair value (gain)/loss on investment 1,633.6 1,144.9 42.7% the capabilities we build, and the
property relationships we forge with clients and
customers will position us well to deliver
Fair value (gain)/loss of investments at 302.6 30.2 902.0% superior risk-adjusted returns for Dexus
fair value securityholders and our capital partners
Fair value (gain)/loss on the 5.5 67.6 (91.9%) over the long term.
mark‑to‑market of derivatives Dexus has successfully divested
Incentives amortisation and 161.1 153.6 4.9% $7.4 billion of assets over the past five
rent straight‑line1 years. A further $2 billion of Dexus assets
are earmarked for divestment over
Non‑FFO tax expense/(benefit) (36.6) (42.7) (14.3%) the next three years which, together
Share of co‑investment adjustments 114.3 29.8 283.6% with the completion of committed
developments, will further enhance the
Amortisation and impairment 4.1 62.2 (93.4%) quality of our portfolio while maintaining
Other unrealised or one‑off items 2 102.6 45.0 128.0% a prudent level of gearing.

Funds From Operations (FFO) 703.4 738.5 (4.8)% Consistent with our strategy, from
FY25 the distribution policy has been
Maintenance capital expenditure and (63.3) (48.5) 30.5% updated to pay out 80–100% of AFFO,
lessor works providing a sustainable source of
Cash incentives and leasing costs paid (44.9) (52.9) (15.1)% capital to invest through the cycle
into return-enhancing investment
Rent free incentives (78.9) (82.1) (3.9)% opportunities. With a preference to
Adjusted Funds From Operations (AFFO)3 516.3 555.0 (7.0)% co-invest alongside capital partners,
we see attractive opportunities in
Distribution 516.3 555.0 (7.0)% the industrial, infrastructure and
alternative investment sectors.
AFFO payout ratio (%) 100.0 100.0 –
Barring unforeseen circumstances, for
the 12 months ending 30 June 20254,
Dexus expects AFFO of circa
44.5–45.5 cents per security and
distributions of circa 37.0 cents
per security.

34 Dexus 2024 Annual Report

Funds management Dexus Real Estate Partnership 2 Dexus also ranked first on unlisted real
(DREP2), which launched in October estate relationship strength index for
performance
2023, successfully raised more than the third consecutive year by asset
Dexus manages $39.7 billion of funds on $300 million in equity commitments in consultants. Dexus was recognised as
behalf of a diversified mix of investors. its first close from both institutional and a Finalist in the 2023 Zenith Investment
We are the partner of choice for a private investors, as well as returning Partners Fund Award in the Real
deep network of domestic and global DREP1 investors. This fund is expected to Asset category. All retail investor
investors. We provide a broad range of be materially larger than DREP1 which pooled funds are ‘recommended’ by
quality investment exposure and invest closed with $475 million of equity, circa Lonsec Research and/or Zenith, with
alongside our capital partners with a 90% of which has been committed Dexus Core Infrastructure Fund being
view to performance over the long term. across the real estate subsectors, upgraded in FY24.
including credit opportunities.
Management operations FFO grew Dexus secured circa $3.2 billion of
significantly in FY24, reflecting the AMP The funds platform continues to deliver transactions across the funds platform
performance for investors. Of the during the year6, the vast majority of

Overview
Capital acquisition and recognition
of circa $28 million in performance funds with a benchmark, 84% by funds which were divestments on behalf of
fees, partially offset by the impact of under management outperformed a number of funds to maintain strong
valuation declines, divestments and a the respective benchmarks in FY245. gearing levels and facilitate redemption
lower contribution from development Dexus Wholesale Property Fund requests to meet client needs, an
milestones compared to FY23. (DWPF) outperformed its benchmark important part of our proposition as a
across all time periods and in FY24 leading fund manager.
This year we achieved Final Completion outperformed by circa 200 basis points.

Approach
and integration of the AMP Capital The funds platform continues to
Since transitioning to Dexus’s platform,
real estate and infrastructure platform be recognised for its leadership by
Dexus Wholesale Shopping Centre
and people. The acquisition has further Global Real Estate Sustainability
Fund (DWSF) continued to generate
expanded and diversified our funds Benchmark (GRESB), with Dexus Office
strong performance, outperforming its
management business. Partnership and DWPF ranked in the
benchmark by over 400 basis points
top 5% of participants globally. Dexus
Our expanded funds management in FY24.
Healthcare Property Fund (DHPF),
platform offers a spectrum of The platform again achieved DWPF and Powerco in New Zealand

Performance
investment products across real estate independent recognition across the were also recognised as sector leaders.
and infrastructure sectors, including institutional and retail investor space. In addition, Melbourne Airport (an
pooled funds, listed funds, joint All offshore real estate clients from the infrastructure investment) was awarded
ventures or partnerships and real estate Peter Lee institutional investor survey a 2023 ‘Airports Going Green Award’.
securities funds. consider Dexus to be either above
Our diverse capital base includes average or excellent and circa 90% of
domestic and global institutional these investors would consider Dexus
investors, as well as a growing presence for the right opportunity.
of retail and high net worth investors.

Governance
Funds management Funds management Funds management Management
allocation investor location composition operations FFO
$150m

$142.6m

Directors’ report
$112.6m
$100m

$10.6bn $1.5bn 75% 25% 44% 9%

Infrastructure Healthcare Australia Offshore Real estate Infrastructure
wholesale pooled funds
$10.5bn $0.8bn pooled funds
Office Real estate 6% $50m
19%
Financial report

securities Real estate

$8.8bn Real estate securities
Retail $0.5bn joint ventures and other
Opportunity
$7.0bn 17% 4%
Industrial Infrastructure Listed REITS
JV/Mandates
1%
Infrastructure $0m
retail fund FY23 FY24

1. Including cash, rent free and fit out incentives amortisation.

2. Includes $83.8m transaction costs and one-off significant items (including costs associated with the AMP Capital platform acquisition and
Investor information

integration and other successful transaction and one-off significant items) and $14.4m of unrealised fair value losses on interest bearing liabilities.
The remaining net $4.4m expense relates to various other items.
3. AFFO is in line with the Property Council of Australia definition.
4. Based on current expectations relating to asset sales, performance fees and trading profits, and subject to no material deterioration
in conditions.
5. Aggregate of individual fund performance against its respective benchmark and performance period. Funds included are DWPF, DWSF, DHPF,
DDIT, CommIF, DXI, DXC and DCIF.
35
6. Includes $0.7bn of real asset securities across multiple funds.
Financial performance continued

Investment portfolio Office portfolio key metrics Industrial portfolio key metrics

We are focused on 94.8% 96.8%

maximising the performance Occupancy
Occupancy
FY23: 99.4%
of our investments and FY23: 95.9%

continuing to enhance
our portfolio composition. 4.7 years 4.3 years
WALE
WALE
FY23: 4.8 years
FY23: 4.8 years

Our resilient investment portfolio

maintained high occupancy, 160,400sqm 170,500sqm
contributing to 83% of FFO in FY241. Space leased 3 Space leased5

Office portfolio performance

Dexus’s high quality portfolio continues
+0.5% +3.9%
Effective LFL income4 Effective LFL income4
to demonstrate resilience against a FY23: +5.6% FY23: +2.4%
challenging operating environment,
with occupancy of 94.8% and the
average terms of new leases signed 27.9% 16.5%
at circa 5.6 years. Average incentives3 Average incentives5
FY23: 30.0% FY23: 10.7%
Dexus manages a high‑quality
$20.3 billion office portfolio across its
platform, $9.8 billion of which sits in As a result, our customer base is more The portfolio is 15.4% under-rented,
the Dexus portfolio. During the year, we diverse, with an average tenancy benefiting from continued market rent
leased 160,400 square metres of office size of 1,200 square metres, and we growth in Dexus’s key markets, and circa
space across 271 transactions, as well have less exposure to large customers 26% of the portfolio is set to access
as 8,700 square metres of space across than our peers6. We have proactively rental reversion upon expiry by FY26.
four office development deals, securing diversified our customer base over
Our national and customer centric
future income streams. many years, and we continue to
industrial portfolio consists of
manage our forward lease expiries
Despite persistent headwinds, our well‑located, high-quality assets,
within acceptable threshold levels.
office portfolio occupancy reduced and along with our development
marginally during the year to 94.8%, capabilities, provide a complete
however remains well above the wider Industrial portfolio performance solution for customers with growth
market at 86.4%2. Average incentives of Dexus manages a high‑quality aspirations and net zero ambitions.
27.9% again outperformed the market, $10.6 billion industrial portfolio across Our strategic focus is on building
reflecting the quality and location of the platform, $3.6 billion of which sits in long-term relationships with high
our portfolio. Incentives were lower the Dexus portfolio. value and growing customers. Circa
than FY23, which was impacted by 75% of industrial income is derived
During the year, we leased 170,500
some large renewal deals in higher from relationships held directly with
square metres of industrial space
incentive markets. Incentives in Sydney customers rather than third party
across 40 transactions, as well as
and Melbourne CBDs are expected logistics operators.
82,100 square metres of space across
to remain elevated in the near term
10 industrial developments.
before vacancy normalises. Property market outlook
Our industrial portfolio continues
As expected, effective like-for-like In office, location remains a key
to perform well, albeit with some
income growth4 slowed to +0.5%, differentiator for asset performance,
moderation as expected following
reflecting amortisation impacts and with the Sydney core and Melbourne
the very strong run experienced
downtime on select vacancies. On a eastern core again reporting materially
by industrial markets over the past
face basis, excluding amortisation, lower vacancy compared with
three years.
like-for-like growth was 2.5%. their respective CBD averages. The
Industrial portfolio effective like‑for‑like Brisbane market continues to improve,
The resilience of the office portfolio is benefiting from strong demand and
income growth4 softened slightly to
underpinned by its high quality and limited medium‑term supply. Incentives
3.9%, impacted by a slight reduction
heavy weighting to core CBD markets, in Sydney and Melbourne CBDs are
in portfolio occupancy as a result of
where customers want to be. In our expected to remain elevated in the
vacancies at select facilities.
experience, smaller tenancies generate near term before vacancy normalises.
on average higher returns and present Average incentives increased to
less volatility and leasing exposure than 16.5% reflecting normalising market While the long‑term fundamentals for
larger tenancies. Our scale enables us conditions, with incentives lower in industrial real estate remain sound,
to invest in the systems and processes the second half at 13.7%. Net effective market rent growth slowed in a number
to service these customers efficiently. releasing spreads remain strong at of key markets in the second half of
circa 17%. FY24, reflecting subdued take‑up.
Third party logistics (3PL) providers
have been less active in leasing and
have contributed sublease space to
the market. Vacancy trended higher
during the year, albeit remains below
pre‑COVID levels.

36 Dexus 2024 Annual Report

Co‑investment income Financial position
Dexus receives distribution income – Look‑through net tangible assets decreased by $2,055 million, primarily due to
from investments in pooled property, property devaluations of $1,902 million
real estate securities and infrastructure – 92% of debt was hedged on average across FY24 providing material protection
funds. Investments in pooled funds against interest rate movements
are predominantly represented by
investments in quality real asset portfolios 30 Jun 2024 30 Jun 2023
Look-through net tangible assets $m $m
across office, healthcare, industrial, retail
and infrastructure sectors. Office investment properties 9,670 12,152
In FY24, Dexus received $70.3 million Industrial investment properties 3,187 3,686
in co‑investment income, an increase
from $35.9 million in FY23. This was Other properties 22 23
predominantly driven by new investments
Co‑investment assets 1,791 1,452

Overview
in a number of funds in connection with
the AMP Capital platform acquisition. Borrowings (4,872) (5,478)
These investments further diversify
investment earnings and provide Other (147) (129)
alignment to support fund growth.
Net tangible assets 9,651 11,706
Trading performance
Total number of securities on issue 1,075,565,246 1,075,565,246
Trading is a capability using our

Approach
expertise to package investment NTA ($ per security) 8.97 10.88
properties to generate trading profits.
Trading properties are either acquired Capital management
with the direct purpose of repositioning We continued to maintain a strong balance sheet with pro forma gearing
or development, or they are identified (look‑through)7 of 32.0%, toward the lower end of our target range of 30–40%, and
in Dexus’s existing portfolio as having $2.5 billion of cash and undrawn debt facilities.
value‑add potential and subsequently

Performance
transferred into the trading trust to be Dexus executed $1 billion of debt extensions during the year. We have a weighted
repositioned, developed, packaged average debt maturity of 4.8 years, manageable near-term debt expiries and
and sold. remain within all of our debt covenant limits, retaining our strong credit rating of
A‑/A3 from S&P and Moody’s respectively.
Dexus delivered on its FY24 trading
profit guidance realising $10.3 million Our balance sheet strength, combined with continued focus on strategic asset
trading profits (post tax), and is recycling, provides capacity to deliver on our strategic objectives.
restocking the trading pipeline, with
potential contributions from FY25. Key metrics 30 Jun 2024 30 Jun 2023

Governance
Pro forma gearing (look‑through) (%) 8 32.0 7
27.99

Cost of debt10 (%) 4.1 3.7

Diversified sources of debt
Average maturity of debt (years) 4.8 5.1
Drawn
Hedged debt (incl caps)11 (%) 92 86

S&P/Moody’s credit rating A‑/A3 A‑/A3

Facilities Directors’ report

1. FFO contribution is calculated before net finance costs, group corporate costs and other FFO.
Financial report

2. Australian CBD average by Property Council Australia at July 2024.

3. Excluding development leasing of 8,700 square metres across 4 transactions.
4. Excluding rent relief measures and provision for expected credit losses.
Drawn Facilities
Source of debt basis basis 5. Excluding development leasing of 82,100 square metres across 10 transactions.
6. Less than 5% of Dexus’s office income is represented by Sydney CBD’s largest 25 corporate
Bank facilities 36% 58% tenants.
Commercial paper 2% 1% 7. Pro forma gearing includes committed transactions post 30 June 2024. Look-through gearing
at 30 June 2024 was 32.6%. Pro forma look-through gearing including Dexus’s share of equity
MTN 21% 14% accounted co-investments in pooled funds was 33.2% at 30 June 2024.
8. Adjusted for cash and debt in equity accounted investments and excludes Dexus’s share of
USPP 31% 21%
Investor information

co‑investments in pooled funds.

9. Pro forma including proceeds and payments for transactions post 30 June 2023 that settled
Exchangeable Notes 10% 6% before 16 August 2023.
10. Weighted average for the year, inclusive of fees and margins on a drawn basis.
Bank debt 36% 58% 11. Average for the year. Hedged debt (excluding caps) was 75% for the 12 months to 30 June 2024
and 69% for the 12 months to 30 June 2023.
Debt capital markets 64% 42%
37
Leading cities
Dexus is a leading Australasian fully integrated
real asset group, managing a high-quality
real estate and infrastructure portfolio.

94.8% 96.8% $16.1bn

Dexus office Dexus industrial portfolio Dexus Platform real
portfolio occupancy occupancy estate development
pipeline
How we are
creating
Leading
cities
$54.5bn $2.5bn 15,141
Dexus Platform real Gross value added Construction jobs
asset portfolio to the Australian supported1,3
economy1,2

38 Dexus 2024 Annual Report

Our real asset portfolio Contributing to Leading Cities Our Approach to Leading Cities
provides the opportunity The contribution of our real estate and Our Leading Cities approach involves:
infrastructure investments and their
to make a significant potential to create value are closely
– Developing and managing
world‑class office properties
contribution to the prosperity linked to the success of Australasia’s
that deliver customer focused,
major cities.
and liveability of our cities. sustainable workspaces, and
Our scale across Australasian cities which enhance the amenity
means we are well positioned to benefit and vibrancy of CBDs
from the megatrends of urbanisation – Developing high-quality,
and population growth. well‑connected logistic hubs to
We are playing a leading role in meet the growing demands of
delivering world-class urban precincts, ecommerce business and other
helping to shape our cities as desirable growth industry customers

Overview
places to live, work and play, while – Creating vibrant and thriving retail
contributing to job creation and destinations as part of mixed-use
economic growth. placemaking that support our
communities and generate social
The assets in our infrastructure
and economic value
portfolio connect our cities and bring
us together every day. They include – Contributing to the long-term
viability of cities through investing

Approach
real estate enabled essential services
that underpin the operation of society in real estate enabled infrastructure
such as airports, schools and aged assets that deliver much-needed
care facilities. services to the community,
including healthcare
Sustainability impact is a key principle
– Building strong city partnerships
that binds the approach across our
through collaboration with industry
teams in the ‘Dexus way’. Our focus
associations and supporting events

Performance
on climate action is embedded in
and activations that celebrate
the operations of our real estate
our cities
portfolio and complemented by the
renewable energy investments in our
infrastructure portfolio.

Governance
1. REMPLAN is used to model the potential economic benefits associated with Dexus’s
committed developments. REMPLAN is an Input Output model that captures inter-industry
relationships within an economy. The multipliers and jobs data are provided by Urbis.

Directors’ report
2. Represents the value added (i.e. economic growth) generated through the Dexus Platform
committed development pipeline. GVA is calculated using the value of the total development
spend across the Dexus Platform in FY24 as a key input.
3. An estimation of all direct and indirect jobs created over the life of the construction phase of
the projects in the Dexus Platform committed development pipeline. This is calculated using
standard industry jobs per square metre benchmarks and regional employment multipliers
for NSW.

Board focus
Financial report

From a real asset perspective, the Board approves acquisitions, divestments

and developments.
In FY24, the Board was involved in:
– Approving the divestment of various – Approving the acquisition of
real estate assets including 5 Martin co-investment stakes
Place, Sydney and 130 George Street,
Parramatta
Investor information

39
Leading cities continued

Urbanisation of our cities

Key real asset sectors set to They are diversified locations The ongoing urbanisation
that attract and maintain talent of our cities is expected to
take advantage of megatrends while also providing tourists and drive demand for services and
Dexus is well placed to capitalise on residents with distinct experiences. amenity across workspace, heath,
the growth and opportunities driven social facilities, transport and living.
by urbanisation. The top city centres They are also the drivers of economic
With Australia’s population expected
across the world are recognised for their growth and opportunity. In Australia,
to increase by more than 50% over
amenity, ease of access, and place our major cities contribute more than
the next 40 years, Dexus is well
to do business that draw individuals 65% of our national GDP and are
positioned in these sectors to
together to work and connect. ranked in the top 20 most liveable
realise sustained value.
cities globally. CBDs are the engine
room for most of this economic activity,
supporting businesses and jobs.

Delivering FY24 Leading Cities commitments

Our commitments indicate how we will deliver on our value creation outcome of Leading Cities.

FY24 commitment Status FY24 progress

Maintain office portfolio occupancy above the Dexus office portfolio occupancy of 94.8%
Property Council of Australia market average. exceeded the Property Council of Australia’s
national occupancy rate of 86.4% at 30 June 2024.

Grow industrial precincts by more than 220,000 square Delivered 233,400 square metres of industrial
metres in FY24 to meet the demand for high-quality, space in VIC and WA across the platform.
highly accessible logistics facilities across Australia.

Progress city-shaping precinct projects to improve the Progressed construction at Atlassian Central, Sydney
amenity and vibrancy of Australia’s CBDs. and Waterfront Brisbane.

Focus area

Contribute to economic growth through the generation Dexus’s platform real estate development pipeline
of employment and contribution to gross value added generated $2.5 billion GVA to the Australian economy
from development projects. and supported 15,141 construction jobs in FY24.

Achieved Not achieved Progressed

40 Dexus 2024 Annual Report

Delivering city-shaping Beyond the major CBD precincts, Collaborating with
our strategically located
projects and well-connected industrial developments delivered city partners
logistic hubs 158,300 square metres of gross We work alongside industry partners
lettable area during the year in and city stakeholders to evolve the
Our $16.1 billion platform real estate partnership with our funds. experience and economies of our CBDs
development pipeline includes
Across the development pipeline, our around Australia by creating vibrant
iconic, irreplaceable towers and
ambition is to develop assets that are destinations where people come
mixed-use precincts in premium
fit-for-purpose, high-performing spaces together to socialise and collaborate.
locations in Australian CBDs and
that support customer prosperity, Across the year we celebrated our cities
strategically located logistics hubs
enhanced communities and are resilient and communities through activations
that service our customers across
to the impacts of climate change. that supported festivals and events
their national footprint.
such as Pride events, Vivid Sydney
Many of our projects are being Our new Sustainable Development and Lunar New Year.

Overview
undertaken in partnership with funds Standards provide a framework
management capital partners, who to guide project teams on our
along with our customers, have an sustainability ambitions across key
increasing focus on the sustainability ESG themes and principles. These new
performance of the projects, both standards set the foundation for future
during construction through to the Dexus developments through enhanced
built form. focus on the issues that create positive

Approach
impact and value for Dexus and
our stakeholders.

Performance
Governance
Directors’ report
Financial report
Investor information

41
Leading cities continued

Office
The Dexus platform’s The properties in the platform’s office As an active manager, Dexus is deeply
portfolio are predominantly located in committed to working with customers to
$20.3 billion high‑quality the core of Australia’s gateway cities deliver spaces that engage and inspire,
office portfolio is located and include some of the country’s offering destinations that support
most iconic buildings. These assets their prosperity. Investing alongside
across Australasia’s are held for the long term and leased third‑party capital in the acquisition
major CBDs. to generate resilient income streams and development of city-shaping office
through property cycles. buildings enhances the quality and
value of the Dexus portfolio and those
of its third party capital partners.

One Farrer Place, Sydney

After 30 years, One Farrer Place
remains one of Australia’s most
sought-after buildings. Managed by
Dexus on behalf of co-owners Dexus
(50%) and Australian Prime Property
Fund Commercial (50%), One Farrer
Place continues to attract and retain
Australia’s top-end law firms and
investment banks, including King &
Wood Mallesons (KWM) and Goldman
Sachs, as one of Sydney’s Premium
Grade office buildings.
Located in the core of Sydney’s legal
and financial district, the Governor
Phillip and Governor Macquarie Tower
Complex incorporates 85,000 square
metres of office space across two
towers. An expansive light-filled lobby
unites the two landmark towers and
connects to Raphael Lane, offering a
variety of dining options.
One Farrer’s timeless design celebrates
the historic importance of the site
as the first Government House and
has benefited from ongoing capital
investment to continue the architectural
focus on providing spaces that promote
productivity and collaboration.
In FY23, Dexus renewed KWM for a
further 10 years across 10,500 square
metres, representing the same footprint
as their previous lease. KWM is one
of the building’s original customers,
demonstrating One Farrer’s ongoing
appeal as one of Sydney’s buildings
of choice.

42 Dexus 2024 Annual Report

$20.3bn
Platform office funds
under management

54
Office properties

1.8m sqm

Overview
Office space

Approach
Waterfront Brisbane
Waterfront Brisbane is a major
city‑shaping project that is
transforming the Eagle Street Pier

Performance
and Waterfront Place precinct site to
create a global-standard business
and tourist destination. The $2.5 billion
transformational project aims to
maximise its prime riverside location
through the delivery of two Premium
office towers, expanded public space,
a premier waterfront dining hub and
widening of the riverwalk.

Governance
The project team has pioneered
new ways to deliver sustainability
outcomes, embracing circular economy
principles throughout the construction
of the project. To date, the project has
diverted circa 98% or 29,300 tonnes
of deconstruction waste from landfill
through recovery and recycling.

Directors’ report
Top Tier law firms, DLA Piper and Allens,
join Deloitte, Minter Ellison, Gadens
and Colliers in the North Tower, with
52% of the tower now committed,
four years ahead of the project’s
scheduled completion in 2028.
Waterfront Brisbane is aiming to
achieve a 6 Star Green Star Design &
As Built, 5.5 star NABERS Energy, 4.5 star
Financial report

NABERS Water, 4 star NABERS Waste

ratings, WELL Platinum Certification and
Climate Active Carbon Neutral Building.
Waterfront Brisbane is owned by
Dexus (50%) and Dexus Wholesale
Property Fund (50%).
Investor information

43
Leading cities continued

Industrial
Dexus is one of the largest The portfolio is located in key logistics Industrial projects prioritise sustainability
growth corridors across Australia across and efficiency, with the designs
industrial managers in 4.0 million square metres of premium incorporating flexibility and leveraging
Australia, owning and warehouse and logistics space. advanced data analytics to meet
customer preferences for sustainable,
managing a $10.6 billion The Dexus platform’s industrial portfolio
efficient space. To support customers’
is strategically located in highly
premium industrial portfolio. accessible markets, servicing the strong
sustainability journeys, the designs
include battery infrastructure linked to
customer preference to be located in
rooftop solar panels aimed at helping
well-connected logistics hubs.
customers meet their energy efficiency
and carbon emission targets.

ASCEND Industrial Estate On completion, the remaining The estate has attracted customers
development of ASCEND Industrial including Amazon, HelloFresh and
at Jandakot Airport, Perth Estate will deliver 263,000 square Marley Spoon, supporting them to
ASCEND at Jandakot Airport is one of metres of premium industrial space. grow their national footprint.
Perth’s most well-connected industrial
The estate’s location appeals to As the precinct evolves, customers
estates. Part of the Jandakot Airport
both first mile and last mile industrial continue to benefit from a focus on
precinct, the estate spans 620 hectares
customers due to its proximity to major energy efficiency, underpinned by Green
and comprises 55 properties and circa
road networks and Fremantle Port. Star and carbon neutral principles.
56 hectares of developable land.
ASCEND at Jandakot Airport is owned
by Dexus (33.4%), Dexus Industria REIT
(33.3%) and Cbus Super (33.3%).

44 Dexus 2024 Annual Report

$10.6bn
Platform industrial funds
under management

210
Industrial properties

4.0m sqm

Overview
Industrial space

Approach
Circuit.7 at Glendenning, Acquired in 2021, Dexus designed The estate has attracted strong
the estate as a versatile speculative demand and achieved higher than
Sydney development with a range of market rents. Practical completion
Circuit.7 is a Prime grade industrial configurations aimed at attracting was achieved in March 2024 with the

Performance
development strategically located a diverse customer base. The site estate 100% leased, delivering an
in north-western Sydney, owned by comprises eight warehouse and office outstanding outcome for DWPF.
Dexus Wholesale Property Fund (DWPF). units across 27,000 square metres of
The site is highly attractive to customers premium space.
due to its access to the M7 Motorway
and Power Street and the low supply
of logistics space in the area.

Governance
Directors’ report
Financial report
Investor information

45
Leading cities continued

Retail
Dexus manages interests City retail destinations support the In the CBDs, Dexus leverages
customers in the office portfolio. placemaking expertise to create
in a diverse retail portfolio In addition, our convenience retail vibrant city retail precincts, providing
of 23 shopping centres portfolio includes 100 service stations world class dining, beverage
incorporating retail. and entertainment destinations.
across Australasia that are These offerings, combined with
Dexus utilises its transactions,
strategically located to take development and asset management
customer activations, enhance the
advantage of population experience for office communities,
capability to deliver thriving
residents and CBD visitors.
growth and supporting community hubs that drive social
and economic value.
infrastructure.
A decentralised retail management
model empowers shopping centres
on the platform to evolve destinations
unique to their communities, providing
engaging experiences for visitors to
the centres.

Indooroopilly Shopping
Centre, Indooroopilly
Indooroopilly Shopping Centre is a
major regional shopping centre situated
in the western suburbs of Brisbane,
providing retail and entertainment
across 117,000 square metres. The
centre is home to more than 240
specialty stores, major retailers and
premium dining outlets, including
David Jones, Myer, Kmart, ALDI, Target,
Coles, Woolworths and Event Cinemas.
The centre features Australia’s first
automall shopping precinct, a
2,400 square metre car experience
destination featuring eight car brands,
servicing and maintenance retail space.
The centre’s management team
provides engaging community
activations to connect the shopping
centre community. Over the year,
the team delivered 55 activations,
including Project Reloved, a unique
activation which sold clothing donated
by Brisbane fashion influencers and
the local community. The proceeds
of the sales were donated to Serving
Our People, a charity that supports
people in need by ‘delivering anything
to anyone in need’. In FY24, more than
12 million people visited the centre.
Indooroopilly is owned by Dexus
Shopping Centre Fund (25%) and
Dexus Wholesale Property Fund (25%).

46 Dexus 2024 Annual Report

$9.2bn
Retail funds under
management

123
Retail properties

1.5m sqm

Overview
Retail space

Approach
QV, Melbourne QV Melbourne is a one-stop destination In FY24, QV attracted more than
for CBD office workers, tourists and 2.1 million visitors to the centre with
QV Melbourne is a leading shopping Melbourne’s residents. The centre spans custom activations during Melbourne
precinct in the heart of Melbourne’s 47,000 square metres of prime retail Fashion Week and Lunar New Year
CBD located at 180–222 Lonsdale

Performance
space, anchored by national retail helping to drive visitation.
Street. The precinct offers the chains including Woolworths, Big W,
quintessential city shopping experience QV Melbourne is owned by Dexus
Dan Murphy’s, Harvey Norman and
through a series of interconnected (25%), Dexus Office Partner (25%) and
Officeworks, and offers entertainment
laneways housing premium fashion, Victoria Square (50%).
including ten-pin bowling and karaoke.
beauty and lifestyle brands, lively dining
options, unique entertainment options
and convenient CBD parking.

Governance
Directors’ report
Financial report
Investor information

47
Leading cities continued

Healthcare

$1.8bn
Dexus partners with leading The platform’s portfolio of high-quality
healthcare assets is helping to meet
Australian healthcare the demand of a growing and ageing Healthcare funds
providers to provide population and contributing to the under management
long-term viability of the Australian
end‑to-end financial and healthcare sector.
operational solutions for
private hospital partners and 11
government through sale Healthcare properties
and leasebacks and precinct
development services.
0.1m sqm
Healthcare space

Royal Adelaide Hospital,

South Australia
Royal Adelaide Hospital is one of
the most advanced and sustainable
medical facilities in the world, featuring
40 operating theatres, 800 beds,
treating 85,000 inpatients and
600,000 outpatients each year.
Clinical Services at the hospital are
provided by SA Health, and the hospital
combines clinical services, training and
research facilities to deliver high quality
and complex patient care.
The investment provides exposure
to a premium healthcare asset with
reliable income backed by the South
Australian Government delivered as
a 35-year Public Private Partnership.
The Dexus platform owns 73% of Celsus,
the consortium that manages and
maintains the Royal Adelaide Hospital.
With its majority ownership stake,
Dexus portfolio managers actively
support the management team
leveraging platform expertise
across asset management, financial
services and other core property
services to improve operational
and financial outcomes.

48 Dexus 2024 Annual Report

Infrastructure

$10.9bn
Dexus is uniquely positioned The Dexus platform infrastructure
portfolio includes 27 world class
as a leading Australasian real assets across every state and Platform infrastructure
estate enabled infrastructure territory in Australia and New Zealand. funds under
Its infrastructure assets are real,
partner. The platform’s owned tangible and deliver essential services
management
and managed infrastructure to our communities, including hospitals,

27
portfolio investments airports, rail, energy providers, university
accommodation and schools.
underpin the fabric of society
through their contribution to Infrastructure
investments
sustainable economic growth.

Overview
Approach
The Dexus Platform’s infrastructure portfolio supports communities to thrive and is
focused around the four pillars of health, transport, energy and social.

Performance
Governance
Transport Health Social/Living Energy

Melbourne Airport Royal Adelaide Hospital Optus Stadium Powerco New Zealand

Directors’ report
Port Hedland Royal North Shore Hospital NSW Schools, SA Schools, Macarthur Wind Farm
International Airport SEQ Schools, VIC Schools

Victorian Comprehensive
Reliance Rail Cancer Centre ANU Student
Accommodation

Launceston Airport Opal Health Care

University of Melbourne
Student Accommodation
Financial report

Sydney University Village

Victorian Desalination Plant

Investor information

49
Leading cities continued

Infrastructure continued

Melbourne Airport
Melbourne Airport has one of the
world’s largest airport land holdings
across a 2,741-hectare site, servicing
more than 35 million passengers
annually. Its commercial revenues
are derived from a range of aviation
ground transport, retail and other
property activities.
In FY24, the airport achieved several
milestones, including being named
the Best Airport in Australia and the
Pacific at the 2024 Skytrax World
Airport Awards, setting new records
across international passenger
numbers and export freight volumes
and opening a new $20 million dining
precinct inside Terminal 1.
Dexus manages the largest combined
shareholding in Melbourne Airport
on behalf of its clients and is working
closely with other shareholders and
the management team to unlock
the economic potential of the asset.
This work is focused on delivering a
step change in growth at the airport,
including a third runway, as well as
aeronautical negotiations and funding
strategy, in addition to leveraging the
property adjacent.

50 Dexus 2024 Annual Report

 Overview
Approach
University of Melbourne On campus accommodation continues Dexus’s capability in this sector provides
to be the preferred accommodation insight to the emerging trends which
The Dexus platform owns and manages option for out-of-area students are used to improve the experience
a large portfolio of on-campus student who benefit from on-site student for students and inform the capital

Performance
accommodation with more than 7,000 welfare support, social engagement strategy for investors.
beds across three out of the top four opportunities and security services.
Australian universities. In FY24, the student accommodation
For the universities, partnering with facilities on the Dexus platform enjoyed
At the University of Melbourne, Dexus Dexus delivers modern, integrated and 96% occupancy and 58% of students
has a 40+ year concession across three secure facilities while freeing up capital reapplied from the prior year, a key
purpose-built student accommodation to fund other facilities on campus, indicator of student satisfaction (noting
(PBSA) residences, offering 1,481 beds to academic and research programs and an industry benchmark of 40%).
both domestic and international students. support the growth of the campuses.

Governance
Directors’ report
Financial report
Investor information

51
Thriving people
We believe our organisational performance
is intrinsically linked to our ability to leverage
the diverse thinking, expertise, experience and
leadership strengths of our people.

61% 34.2%
Employee Female representation
Engagement in senior management
and executive roles
How we are
creating
Thriving
people
98.8% 972
Safety audit Dexus employees
score across
Dexus workspaces

52 Dexus 2024 Annual Report

The knowledge and The structure and standardised role Our culture is what makes Dexus
titles help us maintain consistency capable of realising our purpose. It
expertise of our people in the way we attract, retain and guides our behaviours, interactions and
is central to creating value reward our employees. decisions, setting us apart in a dynamic
and competitive landscape. Our culture
and successfully delivering Throughout the year we held a series
is guided by our values Rally to achieve
our strategy of spotlight sessions to embed these
together and Build trust through action.
people changes. The sessions were
held for our people leaders and more Our purpose and values were launched
Our people are central to implementing widely for all our employees to raise a year ago representing our evolved
our approach to sustainability in our awareness and improve people’s culture, and our focus has been on
operations and across our projects. understanding of the changes and embedding this culture. A variety of
Our goal is to provide an inclusive and their benefits. This was an important channels and initiatives have been used
meaningful employee experience, milestone of the integration, as it to do this including all employee forums,
with our people contributing to signified to our people that we were Executive leader updates, in person

Overview
impactful environmental and social moving forward as one organisation. events, and a gamification app –
outcomes in their daily work. Culture Unlocked. The app was a highly
Evolving our culture successful initiative that engaged our
people in an interactive way on our
Realising the potential of We are a passionate team who strive values and culture, while providing
an integrated workforce to make a difference. Our culture is an access to learning, leadership and
important driver of delivering investment wellbeing resources.

Approach
We recognise that to deliver our performance and is underpinned by our
strategic aspirations and optimise purpose and values. We also refreshed our Quarterly
performance, we need scalable and Employee Awards format to introduce
consistent people practices. Following Our purpose Unlock Potential, Create values awards, giving people an
completion of the acquisition of Tomorrow captures our unique ability opportunity to recognise their peers
AMP Capital, our focus has been on to expand on what is possible and use for living our values.
harmonising our people practices and the potential to deliver long‑term value
strengthening our core foundations. for our people, customers, investors In FY25 we will further embed our culture

Performance
and communities. into our ways of working and foster
In March 2024 we introduced a new connections with our people.
workforce architecture which provides
us with a consistent way to measure the
size, shape and complexity of all the
roles in Dexus.

Governance
Our values
Rally to achieve together

Directors’ report
Build trust through action

Board focus
Financial report

In FY24, the Board and Board People and Remuneration Committee were involved in:
– Overseeing the finalisation of the – Monitoring the organisational
AMP Capital integration process culture and engagement metrics
– Providing input into our new – Endorsing the Dexus psychosocial
organisational purpose and values risk action plan

For further details on the Board People and Remuneration Committee’s key
focus areas relating to Director and Executive remuneration during FY24, refer
Investor information

to the Remuneration Report starting on page 90 and to the 2024 Corporate

Governance Statement available at www.dexus.com.

53
Thriving people continued

Fostering an
engaged workforce
An engaged workforce is central
to achieving a cohesive culture.
We listen to our people and curate
inspiring workspaces and experiences
to motivate them to deliver on our
purpose and business strategy.
Engagement surveys give our people
the opportunity to provide feedback on
their Dexus experience. These surveys
are an important feedback channel
that we employ to help us identify
areas where we excel, as well as areas
where we need to improve. They are
used to inform our people strategy
and initiatives.
In FY23, our two engagement surveys
were conducted before and around the
time of the first completion of the AMP
Capital acquisition. The overall average
engagement score of 70% only reflects
the heritage Dexus employee cohort, as
it was too early for many transitioning
AMP Capital employees to comment
on their overall employee experience
at Dexus.
In FY24, the surveys captured the
employee engagement for our
integrated workforce. The average
overall engagement score of 61%
is reflective of an environment of
significant change. The AMP Capital
acquisition required significant effort
from our people during the year. We
thank our employees for their continued
commitment and engagement in
the organisation.

Delivering FY24 Thriving People commitments

FY24 commitment Status FY24 progress

Continued commitment to gender equity and progress Female representation across senior
against our gender diversity targets including to management and executive roles was 34.2%
achievement of gender balance (40:40:20) in senior at 30 June 2024. We remain committed to
management and executive roles by FY25. our target and are reviewing our approach to
achieving meaningful long‑term change.

Focus areas

Embed the new values and behaviours into business Launched a new Dexus purpose and values following
operations and ways of working. consultation with the Board and a diverse range of
employee groups. Commenced embedding our culture
in an interactive way with our people.

Enhancing our approach to employee wellbeing, Conducted an external review of wellbeing practices
including education and benefits. and psychosocial risk and embarked on an action plan
endorsed by the Board and Executive Committee.

Achieved Not achieved Progressed

54 Dexus 2024 Annual Report
Wellbeing was a central focus Supporting our employees
with robust working
for our people in FY24. We arrangements
engaged external consultants Flexibility at Dexus provides every
employee with the opportunity to have

to undertake a detailed review a say in when, how, or where their work

is performed. Dexus supports and

of our psychosocial risk and

encourages flexible work practices
to increase personal wellbeing and
employee engagement, improve
employee practices. team performance and motivation,
maximise productivity, retain talent,
and encourage an organisational

Overview
culture of diversity and inclusion. As
at 30 June 2024, 79% of our people
We achieved our highest ever Our quarterly Employee Awards were using informal flexible and hybrid
engagement survey response rate of celebrate safe work practices and work practices. Our engagement
90%, indicating the strong desire of this year we expanded the scope of survey results also reported 78% of
our people to have their voices heard. the awards to also include Wellbeing. employees have found effective
An example of this recognition is the ways to collaborate as a team while

Approach
Our focus for FY25 will be to use award presented to a member of working flexibly.
the feedback and insights from our our industrial team who facilitated
engagement surveys to inform further We continue to support our employees
a partnership with Healthy Heads in with caring responsibilities. Nearly 50%
coordinated action through strategic Trucks & Sheds to deliver a mental
people initiatives. This includes of our people are parents or guardians
health awareness session and of a child aged between 0–17, or act
embedding our values and continuing morning tea with customers at our
to actively support internal career as a carer for someone. Our parental
industrial estate at Ravenhall, Victoria. leave policy entitlements support
planning, development and learning

Performance
See page 60 to read more about this families by providing inclusive parental
opportunities for our people. community initiative. leave assistance for employees. As at
In recognition of World Mental Health 30 June 2024, 77% of our people believe
Ensuring the safety and Day, we hosted an employee event with our leave arrangements are sufficient
wellbeing of our people eco-psychologist Mark Mathieson, who and flexible to enable the handling
explored the relationship between our of important caring responsibilities,
The management of employee and 79% of our people said their
environments, our bodies and mental
wellbeing is critical to fostering a safe, manager supports a combination
health. For R U OK Day?, we facilitated
healthy and productive workforce. of work and care.
Executive and Director roundtable

Governance
In FY24, proactive steps were taken sessions for our people.
to address Respect@Work legislative
We continue to partner with suppliers Building strength and
change. We also engaged external
consultants to undertake a detailed
and industry associations to upskill resilience through inclusion
our people and share resources
review of our psychosocial risk and We support an inclusive and diverse
across key topics relating to health,
employee practices, with feedback workforce that reflects our customers
safety and wellbeing. For National
sourced through a whole of workforce and communities. Monitoring diversity
Safe Work month, our focus was
survey, interviews and focus groups. is an important step in supporting
“For everyone’s safety, work safely”,
an inclusive workplace by providing

Directors’ report
The review identified positive practices which encouraged individuals to
insights into progress and areas for
regarding our approach to bullying prioritise safety in the workplace
improvement. During the year we
and harassment. It also identified because all workers have the right to
continued to monitor factors such as
opportunities to enhance our approach be safe at work. We held a roadshow
cultural background, country of origin,
to managing workloads, improve the which included training webinars and
sexual orientation, gender identity and
employee experience and expand a guest speaker promoting a safe
age. We also supported initiatives that
the ways we connect with each other. and healthy workplace.
celebrate inclusive practices.
Our focus for FY25 will be to further
Work, Health, Safety & Environment
embed practices and ensure consistent
training programs were delivered across Gender diversity
employee experiences across the
all business areas, ensuring our people
Financial report

organisation. Dexus is committed to gender equality

remain equipped with the necessary
We continued to track our progress knowledge and skills to maintain safety and creating meaningful long-term
on wellbeing through our employee and wellbeing in their workplace. Our change in gender representation at
engagement survey. Manager support comprehensive workplace health and all levels and across all areas of our
remains strong, with 88% of our people safety program was also re-certified business, accelerating our pipeline
feeling their manager genuinely cares this year under ISO 45001:2018, of talent and closing the pay gap.
about their wellbeing (May 2024), an confirming our continued and
increase of 7% from FY23. comprehensive monitoring of health
and safety for our employees and
workplaces.
Investor information

55
Thriving people continued

Diversity representation targets are In June 2024, we surveyed our people, The purpose of this initiative is to
approved by the Board and progress inviting ideas on how we can improve raise awareness of the career paths
is reported to the Board People and our approach. In FY25 we will use this available in the property industry and
Remuneration Committee and Executive data and CEO hosted round table to encourage a more diverse pipeline
Committee. Our Board gender diversity discussions to review our current people of talent into the sector.
target is at least 33% of non-executive practices and make changes as
required. Our long-standing Future Leaders
directorships held by women by
in Property (FLIP) program continues
30 June 2025. For the organisation, our
We will also be reviewing our gender to provide high school girls with
target is 40:40:20 (40% male, 40% female,
representation targets during the exposure to the property industry
20% any gender) for senior management
year with a view of creating alignment to encourage subject selection
and executive roles for the same period.
across our workforce cohorts, including and education pathways.
As at 30 June 2024, women represented
non‑executive directors.
57% of Non‑Executive Directors and Based on the concept ‘if she can see
34.2% of senior management and it, she can be it’, FLIP provides students
executive roles. Property Champions of
with a unique opportunity to hear from
Change Coalition female leaders involved in Dexus assets
In February 2024, the Workplace Gender
Dexus is a member of the Property and development projects and to
Equality Agency (WGEA) published
Champions of Change Coalition, learn about the broad range of career
the gender pay gaps for private
and our new CEO Ross Du Vernet paths available in property. This year
sector Australian organisations with
has joined the member community. we hosted sessions in Sydney and
100 or more employees. This is the first
The Coalition’s current focus is on Brisbane which included an asset tour,
time this data was officially released
collectively driving gender equality a panel session and a presentation
and seeks to improve transparency,
in the property industry by sharing on construction methodology.
accountability and motivate action to
learnings and implementing initiatives The students gain insight into the full
accelerate progress on gender equality
to increase the number of women spectrum of property business activities,
in workplaces. The Dexus median total
in leadership roles and to close the including asset management, facilities
remuneration pay gap was 29.3% and
gender pay gap. management, leasing, marketing,
median base remuneration pay gap
development, and construction.
was 26.4%. Given the acquisition of As part of the Coalition, Dexus is
Further details are available at
the AMP Capital platform during the piloting the gender equality dashboard,
www.dexus.com/casestudies.
WGEA reporting period (1 April 2022 designed to track and report on key
– 31 March 2023), the Dexus results drivers of the gender pay gap.
published this year include a combination LGBTQ+
Dexus Director Rhoda Phillippo
of data for both organisations. In recognition of our commitment and
participated in an all-employee
Internal analysis continues to webinar on International Women’s progress of LGBTQ+ inclusion, Dexus
demonstrate our pay practices are Day, where she shared her career was awarded Silver Employer by Pride in
equitable, irrespective of gender. Our experiences through an interactive Diversity’s Australian Workplace Equality
results show we have an opportunity to session. This event was one of two Index. Led by our LGBTQ+ employee
further increase female representation events we held to educate our people network TRIBE, we continued to raise
(especially in more senior and revenue- on personal biases in the workplace. awareness, educate and celebrate
generating roles) across our business; LGBTQ+ inclusion across our workforce
an opportunity that also applies to our and customer community.
Supporting next generation careers
peers across the sector. We embed and promote LBGTQ+
We are committed to supporting
We remain committed to both initiatives that foster and create inclusion both internally and externally
achieving our gender representation pathways for the next generation of through employee and customer events
targets and reducing the gender pay female talent into the property industry. and advising on initiatives across our
gap. Achieving meaningful long-term During the year, Dexus hosted the Girls developments and assets, including
change requires a multi-faceted in Property initiative in partnership all gender bathrooms. Throughout the
approach and we now have a deeper with the Property Council of Australia year, TRIBE hosted internal events to
understanding of our employee’s at our Sydney headquarters at Quay educate and build awareness around
perspectives on gender and inclusion. Quarter Tower. LGBTQ+ inclusion such as Mardi Gras
and Wear it Purple Day. Our office
property team facilitates customer
initiatives including lobby activations,
lighting up our buildings on inclusion
days of significance and rainbow stairs.
In FY24, we introduced Gender
Affirmation guidelines and resources
for our employees. We continue
to focus on training or people
managers, our People and Culture
team, and all employees to build
awareness of LGBTQ+ and support an
inclusive culture.
Dexus is also a member of external
industry bodies Pride in Diversity
and Building Pride. Our TRIBE network
and allies, actively support and
participate in industry and community
events including the Pride in Practice
Conference, Midsumma, and
Pride in Property events.
56 Dexus 2024 Annual Report
Working with Aboriginal and More information on our Reflect Our sessions included strategies for
Torres Strait Islander peoples Reconciliation Action Plan is publicly energising the workday, the connection
available at www.dexus.com. between mental health and nature (as
The Dexus Reconciliation Action Plan explored by an eco-psychologist). We
(RAP) reinforces our commitment to partnered with Leaders for Good who
promoting acknowledgement, respect Investing in our people
explored how different biases can be
and reconciliation with Australia’s First We continue to support the recognised, understood and addressed
Nations peoples. The RAP is endorsed development of our people through in the workplace.
by Reconciliation Australia and initiatives that empower them to thrive.
marks an important early step in our Lead @ Dexus is a program designed Supporting our Sustainability Strategy,
reconciliation journey. The Dexus RAP to instil self‑awareness, motivate and we also hosted Ronni Khan, the
was updated this year to align with our provide strategies to our people to founder of OzHarvest, who shared
new purpose, values, and priority areas improve their leadership skills. In FY24, her story of creating community
of impact. we progressed our commitment to impact while reducing food waste and
roll out the program to all people minimising the carbon footprint.

Overview
Cultural awareness training was
managers as well as new and
designed in partnership with PwC The inaugural Dexus Mentoring
emerging leaders.
Indigenous Consulting, with 88% of Program launched this year, offering
employees participating in the training As at 30 June 2024, 67% of people development opportunities for our
as at 30 June 2024. managers completed the first module people outside of formal training.
and 25% completed the second module. Sponsored by our Chief Financial
The referendum to decide whether to Officer, the program encourages
enact an Aboriginal and Torres Strait As part of our Grow @ Dexus program,

Approach
connection and provides individual
Islander Voice to Parliament was a all employees are provided with career guidance through pairing up
prominent issue for all Australians inclusive development opportunities. mentors with mentees across the
regardless of their background. This year, we delivered a total of seven business. The 20 mentees participating
Acknowledging the importance of the sessions, each designed to enhance in the program dedicated time and
referendum, we supported our people awareness and understanding across focus on self-improvement and their
by providing access to information topics, including wellbeing, productivity career goals, while the 20 mentors
and facilitating an all-employee and ESG practices. generously supported them with

Performance
virtual webinar hosted by the Dexus their professional development.
RAP Working Group, which provided a
platform for representatives from PwC Further details are available at
Indigenous Consulting to reflect on the www.dexus.com/casestudies.
referendum and its potential impacts.

Governance
FY25 commitments

Continued commitment to
gender equity and our gender

Directors’ report
diversity targets including the
achievement of gender balance
(40:40:20) in senior management
and executive roles by FY25.

Focus areas

Enhance our approach to

employee wellbeing and
Financial report

psychosocial risk.

Refine our approach to inclusion

and diversity.
Investor information

57
Customer prosperity
We support the prosperity of our customers
by investing in, designing, developing and
managing real assets. Our products and
services prioritise occupant wellbeing and
drive sustainability performance.

+44 6,854
Customer Net Customers
Promoter Score
How we are
creating
Customer
prosperity
5.2 stars
NABERS Indoor
Environment average
rating across our
platform’s office portfolio

58 Dexus 2024 Annual Report

Our assets, along with the Supporting engaged customer Our platform office portfolio has a
communities in our buildings weighted-average NABERS Indoor
places we create in and Environment rating of 5.2 stars. Notable
around them, can enhance We survey our customers each year to highlights include 12 of our office assets
better understand their experiences at achieving a 6 star rating (market
customer productivity and our assets and their evolving business leading performance), up from four
promote wellbeing. Our focus needs. Our Customer Net Promoter assets last year and 17 of our office
Score of +44 (out of a range between
is on delivering exceptional –100 to +100) across our office, industrial
assets achieving a 5.5 star rating
(excellent performance, up from 11
customer experiences, and health portfolios, indicates we are last year).
unlocking potential to effectively supporting and helping our
customers across our platform. Survey
create tomorrow. feedback has identified thematics This year we expanded our WELL
such as climate, waste, mental health certification program, delivering

Overview
and community partnerships as being evidence-based health and wellbeing
Creating places and important to customers and our outcomes to our customers through the
experiences that benefit engagement and communication on WELL Building Institute’s WELL at scale
these has been well received. We also offering. While WELL certification has
our customers continue to see response times as a key enabled us to define what healthier
We design and manage our assets driver of successful collaboration. buildings look like, WELL at scale
to enhance customer productivity helps us leverage our approach to
More information on environmental
customer health and wellbeing across

Approach
and satisfaction. We also prioritise thematics can be found in the Climate
the wellbeing of individuals and the platform by scaling certifications
Action and Sustainability Foundations
communities who interact with our across multiple assets.
sections and are considering the
spaces – whether they are occupants inclusion of additional asset classes Our initial focus is to maintain the
or visitors. Our workplaces foster in future. Health and Safety ratings across the
innovative ways of working, with portfolio. All 36 office assets that we
the potential to drive employee submitted for a WELL Health and
engagement, productivity, talent Customer satisfaction, Safety rating in 2023 maintained their

Performance
attraction and retention, and wellbeing and productivity certification. An additional three assets
are aligned with our customers’ have been registered under the WELL
own sustainability goals. Supporting customer wellbeing at scale program and will be certified
and productivity with under WELL Health and Safety in the
healthy buildings coming year.
There is growing awareness of the As well as achieving WELL ratings
role of the built environment in in existing assets, WELL ratings are
supporting people’s health and integrated into our development

Governance
safety. We measure the operational designs. Waterfront Brisbane and
performance of our assets via the Atlassian Central, Sydney are under
NABERS Indoor Environment rating construction and committed to
tool, a well‑established program delivering WELL certifications.
to benchmark indoor environment
quality across property portfolios.

Directors’ report

Board focus
Financial report

In FY24 the Board and Board Sustainability Committee was involved in:
– Approving Customer Prosperity – Reviewing customer complaints
as a priority area of the Dexus – Overseeing targets to deliver a
Sustainability Strategy Customer NPS of 40+ and a NABERS
– Overseeing the Customer Prosperity Indoor Environment 5 star office
roadmap, including the development portfolio average rating by FY25
of flagship programs
– Reviewing and discussing the
Investor information

annual customer survey results

and associated actions

59
Customer prosperity continued

Leveraging scale to support We partnered with Healthy Heads in Partnerships for recycling success
prosperity and mental wellbeing Trucks & Sheds (HHTS), a mental health
Waste management is increasingly
and wellbeing organisation focused
We recognise the importance of mental important to our customers, and as
on prevention and understanding
health and the prevalence of mental a property manager, we have the
of mental health issues in the road
health challenges in the workplace, capability to influence our customers’
transportation and logistics industries.
both for our customers and employees. waste management practices.
We partnered with HHTS to offer
We continued our partnership with By introducing circular economy
our industrial customers access to
Black Dog Institute, Australia’s only principles across our assets, we
mental health resources, including the
medical research institute that studies can significantly reduce the levels
Healthy Heads App offering fitness
mental health across the lifespan, of waste generated across our
content, resilience resources and links
with the goal of creating a mentally portfolio. More information on our
for crisis support.
healthier world for everyone. Through approach to broader circularity and
this partnership, we provide access We also hosted a HHTS roadshow at waste management is included in
to mental health training to our office, Dexus Industrial Estate in Truganina, Sustainability Foundations.
industrial and healthcare customers. Victoria, with the aim of fostering
We continued our partnership with
Four hundred training spaces were connections and reducing the stigma
Planet Ark, offering our customers
offered to executive leaders, managers of mental health. We partnered with
programs that support their recycling
and employees, with 110 customer Coles to host this event at their site and
initiatives. Batteries 4 Planet Ark
groups registering to participate in invited other local customers to attend.
safely collects and recycles batteries,
the training across Sydney, Melbourne, and Business Recycling Planet Ark
We also partnered with Mates in
Brisbane and Perth, both in person provides an online resource for
Construction to support the health
and online. workplaces looking to reduce their
and wellbeing of our delivery partners’
This year, we extended our mental employees. Mates in Construction waste to landfill. In addition, we offer
health and wellbeing program to brings together Australia’s building customised Planet Ark activations to
provide a sector-specific offering and construction industry to raise improve waste diversion rates, such
at our industrial assets. awareness and funds for suicide as waste sorting competitions, online
prevention and we have mandated trivia competitions, and recycling and
Mates in Construction resources sustainable art displays.
across our industrial developments.
We also partner with Planet Ark to
Further details are available at celebrate our customers’ anniversary
www.dexus.com/casestudies. in their Dexus building, gifting a
donation to Planet Ark’s Seedling Bank.
This initiative supports community
groups to restore their natural
landscape, and over the past three
years, our contribution has planted
over 14,500 trees, shrubs and grasses
in communities around Australia.

Delivering FY24 Customer prosperity commitments

FY24 commitment Status FY24 progress

Maintain a Customer Net Promoter Score for the Achieved a Customer Net Promoter Score for the
platform office, industrial and health portfolios at or platform office, industrial and health portfolios of
above +40. +44, driven by a focus on customer experience
and engagement programs informed by the 2023
Customer Survey.

Through initiatives that enhance occupant health and On track to achieve FY25 target with 5.2 star portfolio
wellbeing, deliver an average 5 star NABERS Indoor average NABERS Indoor Environment rating measured
Environment rating across the platform’s office portfolio across 91% of our office portfolio in FY24.
by FY25.

Continue to support customer wellbeing by delivering Maintained WELL Health & Safety rating across
initiatives such as a WELL health and safety portfolio 36 Dexus owned and managed office assets. We
certification. transitioned to the WELL at scale offering to aggregate
and centralise our delivery of health and wellbeing
initiatives and certifications across the platform.

Achieved Not achieved Progressed

60 Dexus 2024 Annual Report

Customer experience uplift Supporting our customers on Future workspaces
through scaled service delivery their sustainability journey Traditional fitouts can account
We appointed a new concierge and for up to 40% of a building’s life
customer experience services delivery Increasing renewable cycle carbon emissions, and are
partner supporting 37 of our office energy uptake therefore a significant contributor to
assets. This collaboration brings environmental impact. We are looking
We acknowledge the role we play in
consistency to the service we provide ‘beyond the base build’ to support our
decarbonising our value chain and
to our office customers as we continue customers in creating and delivering
continue to support our customers to
to engage and celebrate our building the next generation of sustainable
increase their renewable energy uptake.
communities. workplace fitouts.
As customers increasingly set their own
As well as offering fitness classes decarbonisation goals, we have seen We have developed Greenkey® Fitout
and lobby activations, we have the addition of new members to our Requirements to help our customers
celebrated diversity with our customers GreenPower Buyers Group program. reduce upfront carbon emissions,

Overview
throughout the year with activations We initiated the group in 2021 to help minimise waste, design for longevity,
including Lunar New Year celebrations our customers overcome the challenges procure responsibly and use materials
showcasing dragon dancers and lucky of decarbonising their energy supply that promote a healthy workplace.
gold envelopes and Mardi Gras where and to lower costs by working together This initiative has been designed to
many of our NSW office assets featured to collectively purchase renewable attach to a fitout brief and integrate
rainbow signage and celebrations. electricity. Leveraging our scale, with the workplace design, significantly
customers receive electricity via our reducing the time and cost required to

Approach
embedded networks and purchase build in best practice.
renewable electricity in the form of
accredited GreenPower. The Waterfront Brisbane project is
leading the Greenkey® Fitout initiative,
Members have now collectively championing a market‑differentiating
purchased over 3,300 megawatt‑hours platform that customers can leverage
of renewable electricity and avoided to contribute to their corporate
over 2,200 tonnes of greenhouse gas sustainability performance and
emissions since the program’s inception. employee wellbeing. This project

Performance
will create a new standard for Dexus
leases that can be scaled across
our portfolio, further increasing
collaboration with customers on
creating a more sustainable tomorrow.

Governance
FY25 commitments

Maintain a Customer Net

Promoter Score for the platform

Directors’ report
office, industrial and health
portfolios at or above +40.

Deliver on our FY21 target to

achieve an average 5 star NABERS
Indoor Environment rating across
the platform office portfolio by FY25
through initiatives that enhance
occupant health and wellbeing.
Financial report

Focus areas

Greenkey® customer program

expanded to more parts of
the platform.
Investor information

61
Climate action
We focus on climate action to accelerate the
transition to a decarbonised economy, while
also safeguarding and advancing our people,
assets and financial returns.

Maintained 4.9 stars

Net zero across scope 1 and NABERS Energy average
2 (and operational scope 3) rating across our
emissions across managed platform office portfolio
How we are portfolio1
delivering
on Climate
action
4.2 stars 3.5 stars
NABERS Water average NABERS Waste average
rating across our rating across our
platform office portfolio platform office portfolio

62 Dexus 2024 Annual Report

Climate-related risks Strategy Our role in delivering these outcomes
is aligned to our ability to directly or
and opportunities As one of our sustainability priority indirectly manage assets.
areas, Climate Action recognises the
Climate-related issues present Managed portfolio: Climate action
central role that real assets must play
risks and opportunities across our activity is owned and driven by Dexus
in responding to climate change.
operations, along with potential where we have operational control of
Our capacity to create value depends
strategic opportunities. an asset. It includes activity around
on our ability to develop and manage
Being a leading Australasian real asset assets that are high performing, resilient energy efficiency and electrification,
group requires us to understand how and have a positive impact on the climate risk scenario analysis and
both the physical and transitional risks health of both people and the natural development of climate transition
of climate change will impact our ability environment. investments.
to create and maintain value. Portfolio investments: Where
Climate Action is focused on
Prioritising Climate Action positions us to three priorities: operational control sits with others,

Overview
proactively respond to climate‑related such as customers and investment
– Decarbonisation: Continuing to partners, we do not directly implement
risks and opportunities and broadly
decarbonise our platform, including sustainability programs, but seek to
aligns with the requirements of the
our value chain and customers to influence, work with and support the
draft Australian Sustainability Reporting
mitigate risk and preserve value entity that has operational control in
Standards (ASRS).
– Resilience and adaptation: sustainability delivery. Examples include
Dexus welcomes increased transparency Increasing physical and financial programs to support our customers and
around disclosing climate-related

Approach
resilience against the impacts investment partners to decarbonise
information in accordance with the of a changing climate and increase their climate resilience.
new standards. This aligns with the
– Transition investment: This year we made significant progress
global shift towards sustainability
Capitalising on climate-related against our FY25 metrics and targets
disclosure accelerated by the
opportunities and investments, and anticipate delivering these in the
launch of the International Financial
while supporting the next 12 months.
Reporting Standard (IFRS) Foundation’s
climate transition
International Sustainability Standards Looking beyond FY25, we are exploring

Performance
Board (ISSB). the next phase of Climate Action and
These are supported by an ongoing
Dexus anticipates it will be a commitment to strong and transparent in the next 12 months we will refresh our
Group 1 entity and is well‑prepared governance and reporting around Climate Transition Action Plan. This will
to respond to the enhanced our strategic goals, implementation see us set new decarbonisation and
disclosure requirements based on our program and initiatives, and efficiency metrics and targets.
existing reporting against the Task performance against targets.
Force on Climate‑related Financial
Disclosure (TCFD) recommendations
since 2018 and our comprehensive

Governance
reporting on greenhouse gas (GHG)
emissions. Further details are available
in our 2024 Management Approach
and Procedures and Sustainability
Data Pack.

Directors’ report
Board focus
In FY24, the Board and Board Sustainability Committee was involved in:
– Approving Climate Action as part of – Overseeing the targets to deliver
the Dexus Sustainability Strategy 10% reductions in energy and
– Overseeing the Climate water intensity across its platform
Action roadmap, including office portfolio by FY25 against a
flagship programs 2019 baseline
– Overseeing the maintenance of – Overseeing progress on Dexus’s
Financial report

Dexus’s net zero commitment and approach to climate resilience

transition to net zero emissions
Investor information

1. In line with Climate Active Carbon Neutral Standard for Organisations, net emissions for
the year ended 30 June 2024 include offsets purchased and allocated for retirement
during the year and up to the date of this report.

63
Climate action continued

Governance Sustainability objectives are integrated

into all Dexus roles through inclusion
We take a collaborative approach to managing in the group scorecard. Sustainability
scorecard measures include
climate-related impacts across the platform’s operations. performance on key sustainability
benchmarks and embedding
Climate change has been incorporated into relevant group policies and sustainability and climate action into
procedures to provide guidance to employees and inform all stakeholders of fund investment plans and asset plans.
our commitment to managing climate-related issues.
Key activities that supported these
outcomes in FY24 included maintaining
net zero1 across the management
Climate Action governance framework portfolio and continued progress
Our corporate governance framework supports a culture that prioritises sustainability against commitments to reduce energy
and addresses climate-related issues at board and management levels and water intensity by 10% and NABERS
Energy, Water and Waste portfolio
Dexus Board star ratings (see Metrics and Targets
Oversees all strategic risks including climate change on page 70).

Board Sustainability Committee Board Risk Committee More information on Dexus Platform’s
Oversees the platform’s approach to Oversees the platform enterprise risk approach to managing the economic,
addressing climate-related issues management practices and key risk register environmental and social impacts
related to its business can be found
Executive Committee (ExCo) in the 2024 Management Approach
Has management oversight and accountability for Dexus’s climate strategy and delivery, and and Procedures.
the Chief Operating Officer is responsible for oversight of the platform’s Sustainability Strategy,
including Climate Action and sustainability reporting. Various ExCo members have accountability
for implementation of climate related matters relevant to their functional areas

Sustainability team 1. In line with Climate Active Carbon Neutral

Oversees the platform’s management response and reporting, presenting regularly to the Standard for Organisations, net emissions
ExCo and, on a quarterly basis, to the Board Sustainability Committee on the progress for the year ended 30 June 2024 include
against targets, and to the Board as key topics emerge offsets purchased and allocated for
retirement during the year and up to the
date of this report.

Delivering FY24 Climate action commitments

FY24 commitment Status FY24 progress

Ongoing commitment to reduce energy intensity by Office energy intensity remains steady at 10.0% below
10% across the platform managed office portfolio by the 2019 baseline as gains from energy efficiency
FY25 against a 2019 baseline. activities are balanced by increasing levels of physical
occupancy and influenced by changes to the portfolio
under management.

Ongoing commitment to reduce water intensity by 10% Office water intensity rose by 15.4% year-on-year
across the platform managed office portfolio by FY25 and remains 23.2% below the 2019 baseline as water
against a 2019 baseline. management savings are offset by higher levels of
physical occupancy and influenced by changes to the
portfolio under management.

Focus areas

Looking beyond net zero to amplify impact across our Achieved and maintained net zero1 on scope 1 and 2
value chain including our 1.5-degree decarbonisation (and operational scope 3) emissions for our platform
journey and 2030 goals. managed portfolio since FY22. Our decarbonisation
initiatives continue as we amplify impact across our
value chain.

Having achieved 100% sourcing of electricity from Maintained sourcing of 100% renewable electricity
renewable sources in FY22, we aim to maintain this purchasing for our platform managed portfolio and
to 2030 and beyond across the platform’s managed advancing uptake of energy efficiency, electrification,
portfolio as a RE100 signatory. solar and battery storage.

Achieved Not achieved Progressed

We obtain external assurance over selected sustainability performance data, with progress against environmental targets
and other climate metrics being disclosed in the 2024 Management Approach and Procedures and Sustainability Data Pack.

64 Dexus 2024 Annual Report

Risks and opportunities
Effective management of climate-related risks and opportunities is guided by Dexus’s Sustainability Strategy
and Climate action priority area. This includes addressing the following key risks and opportunities.

Driver and how

Priority Risk or opportunity does this affect Dexus How are we responding

Need to reduce GHG emissions to Increasing stakeholder expectations – Net zero commitment
zero to limit atmospheric carbon. and associated income benefits for – Energy, water, waste efficiency targets
decarbonisation across the value and programs
chain (upfront emissions, operational – Sourcing 100% electricity from
efficiency and electrification) and renewables
Decarbonisation Opportunity to increase income and/
reduced reliance on offsets.

Overview
or occupancy by meeting customer – On-site solar program
demands for high performing, carbon – Greenkey® program
neutral, resilient assets. – Sustainable Development Standards

Opportunity to support customers’ – Industrial on-site solar

own decarbonisation goals through and battery program
programs and support towards

Approach
– GreenPower Buyers Group
renewable energy and reducing their
low upfront carbon impacts.

Direct risk to people and property Ensuring that climate risks and – Environment and Sustainable
from the physical impacts of opportunities across our portfolio Procurement Policies
climate change. are quantified to inform decision- – Embedding climate risk into
making to ensure increased physical

Performance
Environmental Management System
and financial resilience. (ISO14001)
Resilience and
Indirect risks such as economic, – Portfolio and asset climate
adaptation risk assessment program
regulatory or reputational to Dexus
and across its value chain through – Periodic transition risk
climate change. and scenario analysis

Opportunity to invest in projects Leveraging real assets capability – Infrastructure renewable

Governance
and programs that support and to invest in climate transition energy investments
accelerate the transition to a low opportunities such as renewable – Supply chain partnerships
carbon economy. energy, distribution and carbon
credits via nature solutions.
Transition
investment

Risk of inaction to changing physical, Enabling effective oversight – Maintaining strong internal
economic or regulatory conditions. and uplifting governance and governance and Board oversight

Directors’ report
reporting in line with emerging – Setting continuous
reporting standards. improvement targets
Risk of over or under reporting of – Preparing for incoming ASRS
Governance
environmental claims. reporting requirements
and reporting
– Strong processes for
preparing market disclosures
– Embedding alignment within Fund
Opportunity to enhance transparency
Investment Plans and Asset Plans
about our climate issues and our
strategic response and progress on – Reporting in line with the
programs and initiatives. TCFD recommendations
Financial report

Within Dexus’s Risk Management Framework, climate is included as a key risk and the sustainability team is responsible
for regularly reviewing climate-related risks and opportunities through scenario analysis. The Property operations and
Development teams are responsible for applying the platform’s risk management framework and environmental management
system to appropriately manage and plan for property-related risks including climate change, with support from the risk and
sustainability teams.
More information on Dexus’s methodology for identifying and prioritising material risks can be found in the Materiality section
Investor information

of the 2024 Annual Report and our approach to managing these risks can be found in the 2024 Management Approach
and Procedures.

65
Climate action continued

Delivering on Climate action to address key risks and opportunities

We continue to decarbonise our platform, including supporting our value chain to mitigate
risk and preserve value.

Repositioning assets and strategies Powered by renewable electricity Cost-effective energy supply solutions
for energy efficiency and electrification

Targeted decarbonisation program

Our commitment to procuring 100% Across our industrial portfolio we are
renewable electricity is supported supporting customers’ decarbonisation
by our platform approach to energy goals by partnering to install renewable
As we look beyond net zero, we are efficiency and decarbonisation energy generation infrastructure.
driving the next phase of energy initiatives. Our actions to promote We expanded our rooftop solar
efficiency and electrification through a shift to renewable electricity are program with 1.26 MW of large-scale
a targeted decarbonisation program. creating demand beyond our own solar PV installed in FY24 and approvals
needs through customer programs are progressing on a further 2.46 MW
We completed decarbonisation
including our GreenPower Buyers across our committed developments.
roadmap studies across 23 commercial
Group and solar rollout. Our positive
assets, which involved asset-level Our energy generation ambitions
action to create a demand base
desktop assessments and audits to are supported by a leading approach
that is supporting acceleration of the
identify energy, water and electrification to energy storage. In an industry first,
renewable power industry is delivering
opportunities. The roadmaps provide Dexus has embedded the installation
meaningful results.
commercially viable decarbonisation of commercial grade storage batteries
solutions and include the quantification Dexus is a signatory to RE100 and has linked to rooftop solar panels as a
of emissions savings, associated return been purchasing renewable electricity design standard in all new industrial
on investment and future alignment to since 2008. We achieved, and have facilities.
NABERS requirements. The results will be since maintained, our target of sourcing
used to understand opportunities and The first tranche of battery infrastructure
100% renewable electricity in FY24 for
challenges in expanding electrification linked to solar panels is scheduled
our managed portfolio.
across our platform. to be a part of Dexus’s upcoming
Sourcing of renewable energy through industrial projects at Horizon 3023, a
In the coming year, these studies will a combination of on-site renewable 127-hectare master planned industrial
support target setting and lifecycle energy installations and purchasing estate in Melbourne’s western growth
planning to deliver the best experience off‑site renewable electricity is corridor, with the first battery build to be
for our customers, optimise energy embedded as a standard within completed by late 2024.
performance, reduce costs and our energy tendering process. Since
mitigate risks. Dexus’s battery infrastructure initiative
2021, we have partnered with energy
forms part of our structured approach
providers via long-term agreements
to increasing energy generation
Optimising mechanical maintenance to implement supply-linked renewable
and storage at our assets, which will
electricity contracts that leverage
simultaneously reduce our customers’
procurement advantages from our
carbon footprint and that of our value
buying platform to deliver long-term,
chain, while generating significant
viable and cost‑effective solutions.
Our continued investment in fault customer cost savings.
detection analytics optimises building Our procurement approach aims to
operations on a daily basis. This More information on this
prioritise offtake based on geographic
year we retendered for mechanical program can be found at
location, pairing renewable generation
maintenance services to embed facilities across the locations were www.dexus.com/casestudies.
analytics and data driven maintenance. we operate. We actively track our
The new services provide consistency voluntary renewable sourcing and can
in approach across the office portfolio, provide transparency to our customers
while delivering operational efficiencies on were buildings source electricity.
by eliminating unnecessary scheduled
maintenance activities and enabling For our Australian locations, we receive
service technicians to focus on Large-scale Generation Certificates
data‑driven insights and actions. (Renewable Energy Certificates
issued and verified by the Australian
This is supported by a new, centralised Government’s Clean Energy Regulator)
approach to managing our critical that we retire against our assets on
building operational datasets that a quarterly basis. For our managed
will be progressively rolled out in FY25. New Zealand locations, we procure
Together, these solutions will standardise, unbundled New Zealand Electricity
simplify and reduce the cost of bringing Certificates, an energy certificate
together building metrics, as well as scheme in the voluntary market.
positioning Dexus at the centre of our These are procured on an annual
building data ecosystem. basis and retired on our behalf.
For more information refer to the
2024 Sustainability Data Pack.
66 Dexus 2024 Annual Report
 Overview
Approach
Developments Decarbonisation through Preparing for increased

Performance
supplier collaboration regulatory reporting
Recognising increasing customer
and investor focus on upfront carbon Dexus is committed to influencing Dexus is preparing for the incoming
emissions, we launched the Sustainable our supply chain to accelerate their Australian Sustainability Reporting
Development Standards (the SDS) pilot to own decarbonisation journey. Dexus Standards, and will be captured
consistently deliver tangible sustainability favourably considers contracting in the first tranche of reporters
outcomes for the spaces we deliver. suppliers who have a net zero target (‘Group 1’). We have a strong
of 2030 or earlier, that is verifiable by track record of TCFD‑aligned
The SDS are embedded in our
a recognised reporting standard. reporting and comprehensive

Governance
Development Excellence Method
reporting on GHG emissions, as
and have been trialled across office We have strengthened our supply
well as disclosing our approach to
and industrial projects, prior to its full chain monitoring to include carbon
managing material sustainability
integration across the development risk profiling within sustainability
issues via our Management
portfolio in FY25. The standards set risk analysis. The program has
Approach and Procedures.
minimum expectations by sector and been applied across 1,179 suppliers,
the pilot feedback has been positively representing 70% of total supplier During the year, we assessed our
received, particularly highlighting spend, to provide a holistic view of current disclosures against the
the benefit of knowledge sharing and supplier emissions. It highlighted requirements to identify areas

Directors’ report
the adoption of lessons learned from the need for greater collaboration of uplift and have commenced
other projects. with our suppliers to achieve shared work to align activities within
decarbonisation goals, with seven of climate‑aligned programs and
Dexus suppliers currently reporting reporting with the proposed standards.
GHG emissions or decarbonisation
We are focused on improving our
commitments. As incoming mandatory
understanding and reporting on
climate‑related disclosures place
scope 3 emissions (upfront embodied
increased focus on supply chain
carbon, downstream tenancy emissions
transparency, Dexus will continue to
and financed emissions). We are also
collaborate with suppliers on sharing
revisiting our assessment of physical
emissions data and monitoring progress
Financial report

and transition risk across the platform

against commitments to ensure
to better integrate climate-related
accountability and alignment.
decision making.
This work will lead into the next
iteration of Dexus’s Climate Transition
Action Plan, which will be delivered in
FY25. The Climate Transition Action
Plan will reaffirm Dexus’s strategic
commitment to decarbonisation,
resilience and investment in the
Investor information

climate transition. It will incorporate

commercial considerations of the cost
and opportunity of action, to enhance
resilience and create value as we
transition to a net-zero economy.

67
Climate action continued

Delivering on climate action continued

Increasing physical and

financial resilience
Addressing physical risk
We identified 52 locations for
site‑specific risk assessments to
understand risks for the short and
long-term, evaluate how these risks
are currently managed and specific
additional where required to address
them. This year’s focus was on greater
exposure across sectors, visibility
across new precincts and coverage
across risk topics.
Facilities teams and customers were
engaged in site walks to provide a
holistic view of climate vulnerability.
From these assessments we saw:
– Climate zones: Themes were
identified across climate zones
resulting in similar risk identification
dependent on asset typology.
Examples include projected
increases in the frequency
and intensity of storms and
flooding across Brisbane (climate
zone 2), increases in the severity
and frequency of storm activity and
extreme heat in Sydney (climate
zone 5), and increases in heatwave
conditions and hot days across
Melbourne (climate zone 6).
– Asset typology: Themes were
identified across asset typologies,
including façade, rooftop and
general site risk areas for industrial
locations, and façade, HVAC
systems, drainage and basement
risk areas for office locations.

Adaptation plans have been

developed, with short-term activities
being tracked through our in-house
asset risk management program and
supported by capital expenditure.
As our portfolio evolves, we will
incorporate infrastructure assets in a
refreshed view of our climate physical
risk at the portfolio level in FY25. This
will be supported by further integration
of climate action into business
decision making through the financial
quantification of climate-related risk.

Addressing transition risk

Stakeholders expect us to be clear
on how we are addressing climate
risks and opportunities, and how
this is being translated into business
decision making.
In FY25, we will refresh the platform
approach to transition risk, updating
our qualitative and quantitative
climate risk assessment.

68 Dexus 2024 Annual Report

Capitalising on climate‑ Similarly, all green lease clauses
offered for new and renewable events
related opportunities were Green Leases and the Green
and investments Star Performance v2 submission is
progressing in line with Green Building
Managed investments Council of Australia revised timing.
in climate transition We will continue to support our
The energy infrastructure investments joint venture partners as they
we manage play a role in the energy access financial products to
transition. Macarthur Wind Farm (MWF) support environmentally responsible
in southwestern Victoria is a strategic initiatives and objectives.

Overview
investment that delivers climate
outcomes. One of the largest wind
farms in the southern hemisphere, MWF
is capable of generating 420 MW of
energy per hour. Energy generated from
the wind farm, which started operating
in 2013, is fully committed until 2038.

Approach
Another Dexus managed investment,
Powerco, is the second largest
electricity distribution network in
New Zealand supplying electricity
from largely renewable sources to
customers and supporting New
Zealand’s decarbonisation journey

Performance
through electrification1. As a regulated 1. Powerco also distributes natural gas.
utility, Powerco benefits from a
well‑established regulatory framework
to deliver stable and predictable
cashflows underpinned by population
growth and electrification demand.
FY25 commitments
Supporting Joint Venture
Deliver on our FY21 commitment
partners in accessing

Governance
to reduce energy intensity by 10%
green financing across the platform managed
We continued to support the office portfolio by FY25 against
establishment of a green debt facility a 2019 baseline.
for a third party capital investor in a
Dexus managed Joint Venture (JV).
The facility incorporates performance Deliver on our FY21 commitment
incentives linked to the delivery to reduce water intensity by 10%
of sustainability target outcomes across the platform managed

Directors’ report
across the JV. office portfolio by FY25 against
a 2019 baseline.
We are well progressed in meeting
commitments in the green finance
instrument, having identified clear Continue to maintain net zero on
milestones for emissions reduction scope 1 and 2 (and operational
to track against. The JV is well on scope 3) emissions for our platform
the way to achieving its target to managed portfolio.
increase installed rooftop solar PV
capacity, with 91% of the solar capacity Focus areas
target achieved through committed
Financial report

capacity across its portfolio.

Establish the next iteration of
our Climate Transition Action
Plan to support our 1.5-degree
decarbonisation journey across
our value chain.

Continue to procure 100% of

electricity from renewable sources
across the platform’s managed
Investor information

portfolio in line with our RE100

signatory commitments.

69
Climate action continued

Metrics and targets We will continue our membership of Dexus has not chosen to transition
the Property council of Australia’s to the new standard at this point,
Quantifying emissions and working group on incoming disclosures however we continue to recognise the
climate‑related metrics is to embed a consistent approach to urgency of limiting global warming in
an important component in reporting on climate-related financial line with 1.5 degrees and our targets
understanding commitments and information across the sector. are still based on this trajectory, having
setting goals. Our data collection achieved and maintained net zero
system starts in the building and on scope 1 and 2 emissions for our
flows through our data management Progress against
managed portfolio since FY22.
systems to provide a holistic view metrics and targets
of performance and progress. We are committed to enhancing
In 2019 we set a target to achieve operational efficiency across our
Our focus for the year has been a 70% reduction in scope 1 and 2 property portfolio to deliver savings in
on standardisation and process emissions by 2030 against our FY18 resource consumption and associated
efficiencies to support greater baseline. This goal was certified by greenhouse gas emissions, and to meet
transparency around sustainability the Science Based Targets initiative current and future environmental targets.
performance. We have successfully (SBTi) at that time as being aligned We monitor and report on absolute,
trialled a new data management with a global warming trajectory of like-for-like greenhouse gas emissions
architecture for the collection of under 1.5°C and we also committed to and emissions intensity for all properties
building operational and performance reducing customer-related emissions under our operational control.
data. In FY25, we will roll out this by 25% over this timeframe. The SBTi
enhanced architecture so Dexus can continues to recognise Dexus’s 2030 Progress against our metrics and
use it for reporting and performance. targets, yet formal recognition of a targets is underpinned by our advocacy
long-term commitment to net zero around climate action. Dexus has
requires transition to their Corporate pledged to the World Green Building
Net‑Zero Standard. Council’s Net Zero Carbon Buildings
Commitment and is a member of
RE100, the global corporate leadership
initiative of businesses committed to
100% renewable energy.
Additionally in March 2024, Dexus was
awarded Climate Active carbon neutral
Topic and goals Metrics and targets Impact certification across its management
operations and managed portfolio for
Energy consumption and greenhouse gas emissions
the FY23 period. We have also responded
to the Australian Government’s
Reduce like-for-like – Maintain net zero – Better utilisation of voluntary Corporate Emissions
portfolio energy use greenhouse gas natural resources Reduction Transparency (CERT) report
and greenhouse gas emissions (t. CO2-e) – Reduced energy costs for the second year, recognising our
emissions and maximise across the platform- – Lower greenhouse gas
portfolio energy managed portfolio1
transparency around the maintenance
emissions in buildings of a group-wide climate active position
efficiency – Reduce energy intensity – Improved resource efficiency via our reporting on Dexus’s net
(MJ/sqm) by 10% across
– Manage transition risks emissions position, renewable electricity
the platform-managed
office portfolio by FY25 use and carbon offset retirement.
against a FY19 baseline
Dexus has a strong track record of
setting improvement targets which drive
Resource consumption and efficiency continuous improvement over the short
to medium term.
Target Australian best – NABERS Energy – Reduction in use of energy
practice in building portfolio star rating and potable water through The table outlines metrics, goals, and
energy and water – NABERS Water portfolio better utilisation targets that we use to measure climate
performance star rating – Reduced resource and environmental performance and
management cost the related impacts of our performance.

Renewable electricity

Renewable electricity – Maintain sourcing of 100% – Eliminate greenhouse gas

procurement renewable electricity for emissions from base building
base building operations electricity
– Manage transition risks
– Support the acceleration
of the renewable
electricity industry

Scope 3 emissions from waste

Reduce the percentage – NABERS Waste portfolio – Reduced volumes of

of waste sent to star rating waste sent to landfill
landfill by increasing and associated avoided
recycling activity greenhouse gas emissions 1. In line with Climate Active Carbon Neutral
Standard for Organisations, net emissions
– Reduced reliance on
for the year ended 30 June 2024 include
carbon offsets
offsets purchased and allocated for
retirement during the year and up to the
date of this report.

70 Dexus 2024 Annual Report

Climate related financial disclosure reporting
The table below provides an index of Dexus’s climate-related disclosures in accordance with the Taskforce on Climate-related
Financial Disclosures (TCFD) acknowledging its broad alignment to the International Financial Reporting Standard (IFRS)
International Sustainability Standards Board’s (ISSB) S1 General Requirements for Disclosure of Sustainability-related Financial
Information. Alignment with the IFRS ISSB S1 and S2 will be incorporated within FY25 reporting.

TCFD recommendation Reporting reference

Governance

Disclose the organisation’s governance around climate‑related risks and opportunities:

Overview
a) Describe the Board’s oversight of climate-related risks – 2024 Integrated Annual Report (page 64)
and opportunities. – Towards Climate Resilience (page 15)

b) Describe the management’s role in assessing and – 2024 Integrated Annual Report (page 64)
managing climate-related risks and opportunities.

Strategy

Approach
Disclose the actual and potential impacts of climate-related risks and opportunities on the organisation’s businesses,
strategy, and financial planning where such information is material:

a) Describe the climate-related risks and opportunities – 2024 Integrated Annual Report (page 65)
the organisation has identified over the short, medium – Towards Climate Resilience (pages 19–21)
and long term.
– 2024 Management Approach and Procedures
(pages 17–25)

Performance
b) Describe the impact of climate-related risks and – 2024 Integrated Annual Report (pages 62–71)
opportunities on the organisation’s businesses, – Towards Climate Resilience (pages 9–14, 19–21)
strategy, and financial planning.

c) Describe the resilience of the organisation’s strategy, – Towards Climate Resilience (pages 4–14)
taking into consideration different climate-related – 2024 Management Approach and Procedures
scenarios, including a 2°C or lower scenario. (pages 17–25)

Risk management

Governance
Disclose how the organisation identifies, assesses, and manages climate-related risks:

a) Describe the organisation’s processes for identifying – 2024 Integrated Annual Report (pages 62–71)
and assessing climate-related risks. – Towards Climate Resilience (page 16)
– 2024 Management Approach and Procedures
(pages 17–25)

b) Describe the organisation’s processes for managing – 2024 Integrated Annual Report (pages 62–71)

Directors’ report
climate-related risks. – Towards Climate Resilience (page 16)
– 2024 Management Approach and Procedures
(pages 17–25)

c) Describe how processes for identifying, assessing, – 2024 Integrated Annual Report (pages 62–71)
and managing climate-related risks are integrated – Towards Climate Resilience (page 16)
into the organisation’s overall risk management.
– 2024 Management Approach and Procedures
(pages 17–25)
Financial report

Metrics and targets

Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities
where such information is material:

a) Disclose the metrics used by the organisation to assess – 2024 Integrated Annual Report (page 70)
climate-related risks and opportunities in line with its – 2024 Management Approach and Procedures
strategy and risk management process. (pages 17–25)

b) Disclose scope 1, scope 2, and if appropriate, scope 3 – 2024 Sustainability Data Pack (GHG emissions)
greenhouse gas emissions, and the related risks.
Investor information

c) Describe the targets used by the organisation to – 2024 Integrated Annual Report (pages 62–71)
manage climate-related risks and opportunities and – 2024 Management Approach and Procedures
performance against targets. (pages 17–25)

71
Enhancing communities
We support communities around our assets
through inclusive and accessible design
and placemaking, and investment in
infrastructure that creates social value.

120 732
properties delivering hours of employee
community activations across volunteering
Australia and New Zealand
How we are
Enhancing
communities
>$1.78m
contributed to
communities across
Australia and New Zealand

72 Dexus 2024 Annual Report

Our ability to create value In FY24, we identified a proposed social Connecting people through
value theme to focus our community
and maintain a social social infrastructure
investments and enable us to continue
license to operate hinges on to increase our impact at scale across The assets in our social infrastructure
the platform. portfolio connect our cities and bring
successfully engaging with people together. This includes hospitals,
local communities in and As we continue to develop our schools, airports, rolling stock, wind
partnership framework, we are farms, water treatment plants, student
around our properties. identifying programs and partnerships accommodation and recreational
aligned to our identified theme. facilities. Our investment in critical social
In addition, we will define an infrastructure delivers essential services
As a leading Australasian real asset
outcome‑based social value goal and strengthens the fabric of our local
group, we are well positioned to
and build a measurement framework communities.
enhance the communities living
and tool for greater understanding
in and around our assets. People As we further refine our Enhancing
of the value generated through our

Overview
visit our properties every day to Communities roadmap, we will consider
social programs.
work, shop and access important the role of our social infrastructure
services. We consider these visitors assets, and how they contribute to the
our community, and we value the Scale of social impact social outcomes we strive to generate.
opportunity to unlock potential to As part of our Enhancing Communities In FY25, we will explore the potential to
create a better tomorrow for them. roadmap, we have been focused measure the social impact generated
By achieving this, we also create value on how we create a consistent and by our social infrastructure assets.

Approach
through enhancing the appeal of our scalable approach to community
assets and foster trust in Dexus. partnerships across the platform.
Working with existing partners we Leveraging development
Enhancing Communities have focused on taking existing projects to support
programs to deliver them to a wider
roadmap to support a real
audience, across multiple assets. In
our communities
and lasting difference addition, this year we have improved
Given our broad reach across Australia our reporting processes to capture the The platform’s $16.1 billion real estate

Performance
and New Zealand, there are numerous scale of social programs and activities development pipeline provides
social causes and organisations across our portfolio. Combined, the opportunity to drive positive
operating in our communities in need of this has led to an increase in overall social change, support the needs
assistance. Rather than trying to tackle community contributions to $1.78 million, of local communities and celebrate
all social needs, we want to focus our representing more than triple our local culture.
efforts and resources where, through investment from the previous year. As outlined in the Climate Action
leveraging our assets and capabilities, section, we launched the Sustainable
we can make an impactful and In FY24, we improved our social data
reporting by capturing the value of Development Standards (SDS) in FY24
sustainable difference. to promote consistent application

Governance
social programs and activations at our
In identifying a social value theme, we assets. Valued at over $737,000, these of our sustainability priorities across
have explored the social issues that programs focus on inclusion, connection our developments. The SDS includes
are most prevalent for our communities, and wellbeing. This data positions us a range of requirements focused on
customers and people, alongside the to understand the inputs and social enhancing local communities through
unique assets, resources and skills we outcomes being delivered locally. our developments, including social
have available to make a difference. procurement, universal and inclusive
Our goal is to maximise the value we design, community resilience, culture
offer communities through greater and heritage and reconciliation.

Directors’ report
focus and alignment of efforts across More information on our
our portfolio. developments can be found at
www.dexus.com/casestudies.
Financial report

Board focus
In FY24 the Board and Board Sustainability Committee was involved in:
– Approving Enhancing Communities – Overseeing the Enhancing
as a priority area of the Dexus Communities roadmap, including
Sustainability Strategy flagship programs and social
value theme
Investor information

73
Enhancing communities continued

Amplifying social impact In addition to working with community Accessible experiences

partners, our employees volunteered
through partnerships 732 hours with charities and community
We aim to create spaces that are
welcoming, inclusive and beneficial for
We continue to work with community organisations including Our Big Kitchen,
everyone in the community. Providing
partners to amplify social impact Eat Up Australia, Two Good, Oz Harvest,
accessible experiences enhances social
across our assets. We maintained Collingwood’s Children Farm, and
value and fosters a sense of belonging.
our partnership with major partners Cerebral Palsy Alliance’s STEPtember
Black Dog Institute and Planet Ark and Christmas present wrapping. This year we held ‘Sensitive Santa’
and more information on these sessions across seven shopping centres,
More information on our
activities can be found in the allowing families to visit during quiet
community partnership events
Customer Prosperity section. hours to support their sensory needs.
and initiatives can be found at
We saw a 128% increase in attendance
Through our partnership with www.dexus.com/casestudies.
at Macquarie Centre in December 2023
Cerebral Palsy Alliance (CPA), compared to 2022, demonstrating the
our employees and customers
across 37 office and industrial sites
Delivering meaningful importance of providing these types
of services.
participated in STEPtember and raised connections at our assets
funds, donated goods and packed Our assets play an important role
hampers and gifts. Over 330 Dexus within their communities, providing
customers and employees participated opportunities to bring people together
in the challenge. and delivering experiences that
In the lead up to Christmas, are meaningful and engaging for
Dexus supported Foodbank, local residents. 120 assets delivered
which works with front line charities community activations across
to feed vulnerable Australians. Australia and New Zealand.
Customers and employees donated
1,600 kilograms of non‑perishable Celebration of diversity
goods and provided the equivalent Our asset strategies are focused
of more than 20,000 meals. on addressing the unique needs of
For infrastructure investments where we the local communities and provide
do not have operational management opportunities to connect and celebrate
control, we encourage them to prioritise in a meaningful way. Over the year,
social impact. Through our investment we rolled out culturally diverse
in Powerco, 2,925 native trees were campaigns across our offices and retail
planted in local communities in 2023 centres that resonated with the local
as part of the Replant for Tomorrow community, including Ramadan,
initiative. Orthodox Easter, Lunar New Year
and Mardi Gras.

Delivering FY24 Enhancing communities commitments

Focus areas Status FY24 progress

Develop a revised community investment approach Developed an Enhancing Communities roadmap

as part of the Enhancing Communities priority area with a proposed social value theme and a draft
in the new Dexus Sustainability Strategy. partnership framework. Reviewed our existing
processes for social data, improving our measurement
coverage and capability.

Achieved Not achieved Progressed

74 Dexus 2024 Annual Report

Macquarie Shopping Centre also Supporting charities Across our retail centres, we raised
launched the Hidden Disabilities through our operations over $54,000 through our Christmas
Sunflower program which adopts gift‑wrapping charity donations at
the sunflower, a globally recognised Decorative flower auctions and six centres. Of note, Indooroopilly
symbol for those living with non‑visible Christmas gift-wrapping events were Shopping Centre reported an increase
disabilities, and our concierge, held across our office and retail assets of almost 90% in donations through
security and Centre Management in support of local charities. gift wrapping on the previous year.
teams have been trained on how Every week, we auction the decorative More information on our community
to support customers with invisible flowers in our office lobbies rather contributions can be found within
disabilities. By choosing to wear a than sending them to landfill. The our Sustainability Data Pack.
Hidden Disabilities Sunflower item, funds raised are donated to our charity
such as a lanyard, badge or wristband, partners, with more than $77,000
customers can discreetly signal donated throughout the year across
to our team that they may need 26 properties.

Overview
assistance during their visit.

Approach
Performance
Governance
Directors’ report

FY25 focus areas

Finalisation of Social Value theme,

Financial report

community partnership framework

and aligned community partner(s).

Development of group‑wide
social value goal and
measurement framework.
Investor information

75
Sustainability Foundations
Foundational sustainability activities support
our social license and value creation

$3.0m Second RAP 3.5 stars

spent with Supply Nation launched NABERS Waste average
certified or registered endorsed by Reconciliation rating across our
companies Australia platform office portfolio

76 Dexus 2024 Annual Report

 Delivering FY24 Sustainability
Foundations commitments

FY24 commitment Status FY24 progress

Continue to progress the delivery of our Reflect We launched our second RAP which was endorsed by
RAP and set the next Dexus RAP. Reconciliation Australia. The new Reflect RAP aligns to
Dexus’s purpose, values, core business and priorities.

Overview
Implement EcoVadis supplier verification across Achieved coverage of 100% of our preferred supplier
preferred suppliers, targeting coverage of 80% spend with EcoVadis supplier verification.
of preferred supplier spend engaged on the
platform by FY24.

Approach
Achieve a 4 star NABERS Waste average rating Achieved a 3.5 star average as at 30 June 2024.
across our platform office portfolio by FY25.

Achieved Not achieved Progressed

Performance
Sustainability Foundations The Sustainability Foundations can be Our performance in these areas is
categorised in three areas: outlined in this section. Information on
The Foundations that underpin our Dexus’s Diversity, Equality & Inclusion
Sustainability Strategy incorporate the 1. Environmental management
approach and performance can be
sustainability areas that are important (Circularity, Nature)
found in the Thriving people section of
to us and our stakeholders. the Annual Report on pages 52–57.
2. Social performance

Governance
(Indigenous Engagement,
Human Rights, Health & Wellbeing,
Diversity, Equality & Inclusion)
3. Governance & Reporting

Directors’ report
Financial report

Board focus
In FY24, the Board and Board Sustainability Committee were involved in:
– Overseeing Dexus’s waste target to – Overseeing results of Modern
deliver a NABERS Waste 4 star office Slavery audits undertaken by
portfolio average rating by FY25 an external party
– Overseeing Dexus’s continued – Approving the 2023 Dexus Modern
Indigenous engagement, including Slavery Statement, and discussing
approval of Dexus’s second actions taken to prevent modern
Investor information

Reflect RAP slavery and overseeing supplier

engagement on modern slavery risk

77
Sustainability Foundations continued

Environmental management As with energy and water, waste

reduction is a focus and one that
requires a strong partnership
between customers, cleaners, Nature
waste contractors, and Dexus.
Circularity Dexus facilities management teams We understand the impact our
worked collaboratively with customers operations and supply chain can have
Assets delivering building to optimise waste management on nature and aim to enhance and
performance targets practices and increase engagement manage biodiversity across properties
Our ongoing goal is to embed resource on sustainability. Throughout FY24, we that we develop and operate.
stewardship into asset operations delivered 40 waste engagements with In addition to biodiversity initiatives
and drive asset performance so that customers and identified a further 200 at our assets, we continue to support
the Dexus Platform portfolio is high opportunities for future engagements. local and international carbon projects,
performing, fossil fuel free, resilient and These efforts have contributed to an forest preservation, reforestation and
actively managed with minimal risk. increase in our NABERS Waste office tree planting that deliver carbon
portfolio average to 3.5 stars in FY24, reduction and biodiversity co-benefits.
We continue to enhance how we As part of our partnership with Planet
up from 3.3 stars in FY23.
plan, budget, implement and monitor Ark, all customers on their anniversary
energy, water and waste management have a donation made by Dexus to
programs to maximise positive Circular economy principles at
The Seedling Bank on their behalf.
environmental outcomes. Waterfront Brisbane
The Waterfront Brisbane development We recognise the importance of the
Decarbonisation roadmaps for is underpinned by circular economy Taskforce for Nature-related Financial
23 assets were completed in FY24, principles with the goal of maximising Disclosure (TNFD) guidelines and aim
providing a technical view of future diversion of demolition and construction to start introducing TNFD aligned
asset energy and water efficiency waste. To date, 98% or 29,300 tonnes of reporting on nature in future disclosures.
potential, which will directly inform material cleared from the site has been
future asset strategies and capital More information on Dexus’s carbon
recycled or repurposed. offset procurement can be found in the
works plans. Operationally, we
are transitioning to a data-driven The Waterfront Brisbane development 2024 Sustainability Data Pack.
mechanical maintenance regime which team collaborated with partners John
will help service technicians diagnose Holland, Rino, Delta Group, Five Mile
and resolve issues that could lead to Radius and Laura Lane Creatives to
excess energy use or water leakages. deliver innovative waste management
solutions including repurposing
In the coming year we will revisit concrete into new materials for
our virtual engineer analytics construction projects, including the
service, which has been successfully road at Crossbank Estate. The project
operating since 2016. The goal for team have also repurposed waste
our refreshed approach is to position material into new outdoor seating
assets to consistently achieve their furniture for the completed Waterfront
daily operational potential. We will Brisbane precinct and recycled vinyl
do this by combining data-driven signage into merchandise.
maintenance activities with a value
creation‑based lens to identify and
deliver resource efficiency opportunities
to uplift performance over the
short- to medium-term.

78 Dexus 2024 Annual Report

 Our ESG risk assessed suppliers have Key Indigenous Engagement outcomes
an overall sustainability score 27% and achievements in FY24 include:
above the EcoVadis global benchmark,
Human Rights – Celebrating Reconciliation Week and
demonstrating strong engagement on
NAIDOC Week with activities across
sustainability. In FY24, we introduced new
Our supply chain is an extension of our assets – including local arts and
KPIs with more ambitious sustainability
our business and forms part of our crafts, and storytelling sessions in
targets in recognition of the increased
social licence to operate. Our suppliers our shopping centres. A key highlight
importance of aligning sustainability
play a central role in optimising asset for the year involved Quay Quarter
objectives across our value chain.
performance, managing risk and Tower hosting the Legs on the Wall
Through the selection, performance
delivering customer outcomes. Our Indigenous acrobatic performance
management and re-contracting
capacity to create value depends process we now favourably consider – First Nations procurement – in
on understanding, influencing and suppliers who have a net zero target FY24, we procured $3 million with
collaborating with suppliers within our of 2030 or earlier and aligned to First Nations businesses. This is a
value chain.

Overview
a recognised reporting standard, reduction on our FY23 First Nations
and suppliers who have an Elevate procurement spend of $7.7 million,
Supply chain monitoring and Reconciliation Action Plan (RAP). due to supplier organisational
relationship management changes outside of our control.
Our 2023 Modern Slavery Statement Procurement spend remains a
We take a risk-based approach details our approach to managing
to understanding and monitoring significant opportunity to support
modern slavery risks, available at First Nations employment through
human rights and sustainability trends www.dexus.com/corporategovernance. the goods and services we procure,

Approach
across our supply chain. This year, we Our 2024 Modern Slavery Statement
expanded our partnership with EcoVadis and we will be looking to expand our
will be available in December 2024. suppler engagement in FY25
to provide ESG risk screening across
the breadth of our 1,179 suppliers and – Our first project Reconciliation
conducted in‑depth supplier specific risk Social Performance Action Plan (RAP) for a development
assessments of 86 key suppliers. The ESG (Waterfront Brisbane) – While
risk screening tool now applies to 70% not a formal RAP endorsed by
of total supplier spend and 100% of our Reconciliation Australia, it is the

Performance
preferred suppliers, including monitoring first time we have developed a
of human rights and modern slavery, in
Indigenous Engagement project-specific RAP with a focus
excess of our FY24 commitment to verify As a leading Australasian real asset on supporting the needs of local
80% of preferred supplier spend. owner and manager, we are uniquely First Nations peoples through
positioned to collaborate with our our developments
This year, we expanded our program
so 847 suppliers attested to adhering Indigenous partners and enable – Our ongoing partnership with the
to Dexus’s Sustainable Procurement connections with our customers and Australian Literacy and Numeracy
Procedure and Supplier Code of communities across Australia and Foundation – In addition to a
New Zealand. financial donation, our customers,

Governance
Conduct, demonstrating the strength
of our supplier selection processes and communities and employees are
In FY24, we launched our second encouraged to support through our
ongoing supplier management across Reconciliation Australia endorsed
our diverse operations. Leveraging our annual Share-A-Book Campaign.
Reflect RAP. Our new RAP aligns with our We collected books from customers
ESG risk assessment tool, we focused on new purpose, values and core business
engaging with our suppliers to improve and employees across our portfolio
and prioritises areas of impact. throughout Reconciliation week
their sustainability risk management
resulting in an overall ratings improvement The areas that have been and NAIDOC Week to be donated
of 4% across the 35 suppliers that were prioritised include: to First Nations peoples to support
their learning of language and

Directors’ report
re-assessed.
– Engaging with customers as part of communications skills
Results of the ESG risk screening will be reconciliation activities and support
– Indigenous art – We launched
used to expand the in-depth ESG risk for customers reconciliation initiatives
a First Nations Art Program at
assessments for greater coverage of within our assets
25 Martin Place in collaboration
suppliers in FY25. Suppliers also benefit – Supporting the Indigenous carbon with Boomalli Aboriginal Artists
from access to academy training industry through purchasing carbon Co‑operative and the celebrated
materials across the four EcoVadis offsets that are Indigenous-led artist Dennis Golding. The artist’s
pillars of Environmental, Labour & curated series Drawing from Gadigal
– Activating our spaces with First
Human Rights, Ethics and Sustainable is on display over the next 12 months
Nations partners and reconciliation
Procurement, with over 90% taking up
events across our assets
Financial report

access.
More information is available in our
Reflect Reconciliation Action Plan is
publicly available at www.dexus.com.
Investor information

79
Sustainability Foundations continued

Social Performance Governance & Reporting From a development perspective, Dexus

assets achieved the following ratings:
continued
– 40 Cloudline Court, Ravenhall
achieved 4 Star Green Star Design &
As Built v1.3 certified rating
Green Building Certifications
Health & Wellbeing – 525 Boundary Street, Spring Hill
Building certifications are an achieved 5 Star Green Star Design &
Our Work Health, Safety and Wellbeing important tool to integrate leading As Built v1.3 certified rating
vision is to achieve a workplace where our practice into our developments and
people and communities care for each operations and to benchmark our In addition, the following assets in our
other, everyone stays safe and well sustainability performance. development pipeline are registered to
and the environment is cared for in the achieve a future Green Star certification
successful operation of our business. Green Star with targeted star ratings as follows:
During the year we onboarded 100% Dexus maintained its 4 Star Green Star – Waterfront Brisbane targeting a
of the AMP Capital portfolio onto our Performance portfolio certification, with 6 Star Green Star – Buildings v1 rating
ISO 45001:2018 accredited workplace coverage of 96 properties across the
– Atlassian Central targeting a
health and safety management Dexus Platform office, retail, industrial
6 Star Green Star – As Built v1.3 rating
system, ensuring our continued and and healthcare assets. The platform’s
office portfolio maintained on average a – Central Place Sydney targeting a
comprehensive monitoring of health and
5 Star Green Star – Performance rating. 6 Star Green Star – Buildings v1 rating
safety for our employees and workplaces
is maintained across the portfolio. – 82 Momentum Way, Ravenhall
Notable achievements include Bayfair
targeting a 4 Star Green Star –
In support of our expanded workforce, Shopping Centre being the first shopping
Buildings v1 rating
the annual “National Safe Work centre in New Zealand to achieve a 4 Star
Green Star Performance certified rating. – 25 Martin Place, Sydney retail
Month” campaign in October focused
This accomplishment is a testament to targeting a 5 Star Green Star –
on upskilling our people on current
the continuous management initiatives Design & As Built v1.3 rating
risk‑related matters with the theme
“For everyone’s safety, work safely”. and innovative strategies implemented at
The Dexus Risk team facilitated a risk the centre to embed sustainability. Further details are available at
roadshow to deliver three training www.dexus.com/casestudies.
We are partnering with the Green
webinars to over 260 Dexus and Building Council of Australia (GBCA) as
partner personnel across asset, part of its Early Access Program to trial
property, facility, centre and operations and transition to Green Star Performance
management teams. Topics included version 2 from FY25. We have registered
environmental, climate change, hazardous 88 assets from our industrial portfolio to
material, indoor air quality, and property pilot the new performance tool, which
risk assessment and audit programs. the GBCA has significantly expanded
Additionally, the Dexus Risk and uplifted to adopt an outcome focus.
team partnered with emergency The update reflects the drive towards
management consultants to deliver continuous improvements to align with
three sector-specific emergency increasing expectations from customers
scenario exercise training sessions with and investors on the transition to net
over 160 participants across Dexus and zero and the need to achieve targets in
its facility management partner teams. line with climate science.

80 Dexus 2024 Annual Report

NABERS NABERS portfolio averages
Dexus has a well-established National
Australian Built Environment Rating System Indoor
(NABERS) program to benchmark Asset type Energy Water Waste Environment
energy, water, waste and indoor
environment performance nationally,
using a rating scale from 1 to 6 stars. Dexus Platform 4.9 stars 4.2 stars 3.5 stars 5.2 stars
office portfolio 84% coverage 91% coverage
The platform’s office portfolio average
NABERS Energy rating remained steady
at 4.9 stars. This was influenced by
ratings uplifts across 5 assets driven Dexus Platform
by energy management activities. retail portfolio 4.7 stars 3.3 stars
During the year, Quay Quarter Tower

Overview
was awarded a 5 star NABERS Energy
rating, which will further improve in FY25
as it benefits from full occupancy.
These successes were balanced by a Together, these and other market The platform’s portfolio includes
number of high-performing assets being signals provide a strong commercial 12 assets that have achieved a 6 star
divested during the year, and half star business case for our asset NABERS Indoor Environment rating,
reductions across 8 assets, influenced decarbonisation and optimisation including Quay Quarter Tower for its

Approach
by higher physical occupancy as more programs to drive the next phase of inaugural rating. Overall, the portfolio
workers return to the office. energy efficiency and electrification. recorded an uplift across 22 assets and
is on track to achieve its FY25 target
We have embraced recent and The platform’s office portfolio average portfolio average of 5 stars.
upcoming changes to the NABERS NABERS Water rating reduced from
Energy rating tool. The introduction 4.5 stars to 4.2 stars, as higher water This year we made progress towards
of the Renewable Energy Indicator use associated with increased physical our FY25 4 star NABERS waste targets,
this year aligns with our approach for occupancy is resetting high NABERS with 18 properties recording gains of

Performance
purchasing renewable electricity and water ratings towards pre‑COVID 0.5 stars or more. By actively engaging
market-based emissions accounting levels. This was observed across with customers and cleaners, we have
and enables us to publicly communicate 23 office assets. improved awareness of our waste
our track record of sourcing 100% of management system which will help
electricity from renewables. Across NABERS Indoor Environment, drive improved recycling performance.
the platform’s office portfolio achieved Organics has been a key focus, and at
NABERS’ planned 2025 updates a 5.2 star portfolio average NABERS the QV precinct in Melbourne, we are
to the emissions factors within its Indoor Environment (increasing partnering with a progressive AgTech
energy ratings criteria to reflect the by 0.4 stars on FY23, with overall company to collect and transform food
decarbonisation of the grid will, over

Governance
coverage currently at 91% as coverage waste from the precinct into protein
time, incentivise landlords to review has fallen due to the divestment of and fertiliser using insects in support
their asset’s energy supply mix. office assets during the year. of a circular, carbon positive future for
agriculture and the built environment.

Directors’ report

FY25 commitments
Continue to implement ESG
Financial report

risk screening and assessment

programs using EcoVadis,
targeting risk assessments for over
100 key suppliers.

Deliver on our FY21 commitment

to achieve a 4 star NABERS
Waste average rating across the
Investor information

platform office portfolio by FY25.

81
Governance
A high standard of corporate governance
is the foundation for the long-term success
of the platform.

Our Board and Executive Committee Our Board and Board delegated Governance for
are committed to excellence in committees have overall responsibility
corporate governance and aspire to for corporate governance and Funds Management
the highest standards of conduct and are collectively focused on the Dexus uses its expertise, scale and
disclosure. To support this aspiration, long‑term success of the platform. knowledge of the Australian real estate
we have embedded a framework that Areas of specific responsibility include and infrastructure markets to create
enhances corporate performance financial performance, setting strategy and manage real asset investments
and protects the interests of all key and overseeing its implementation, for its third party capital partners
stakeholders. Our Board believes providing leadership and direction and investors.
that a high standard of corporate on workforce culture and values,
governance supports: and agreeing and overseeing the A high standard of corporate
risk framework and risk appetite. governance is vital for attracting,
– A culture of ethical behaviour retaining and reinforcing the confidence
resulting in an organisation Our Board regularly reviews of these third party capital partners
that acts with integrity and investors. Demonstrating this
– Improved decision-making processes
its corporate governance importance, Dexus’s unlisted funds
– Better controls and risk management policies and processes to have in place a best practice
corporate governance model that
– Improved relationships ensure they are appropriate was established in consultation
with stakeholders and meet industry best with their respective investor base.
– Accountability and transparency practice, governance These funds have Responsible Entity
Boards that are comprised wholly
We continue to focus on organisational
standards and regulatory or predominantly of non-executive
culture by encouraging an environment requirements. directors and are independent of the
where our people and stakeholders Dexus Board. In addition, these funds
feel comfortable in raising issues and each have Advisory Committees in
ensuring our Board and Management For the 2024 financial year, the group’s place comprising Unitholder appointed
are kept informed of incidents that governance practices complied representatives.
may impact the business. with the ASX Corporate Governance
Council’s Corporate Governance The Responsible Entity Boards are
Principles and Recommendations responsible for reviewing and approving
(fourth edition) and addressed recommendations with respect to
additional aspects of governance each Fund’s major decisions, including
which the Board considers important. acquisitions, divestments, developments,
major capital expenditure and the
Further details are set out in the annual Investment Plan.
Royal Adelaide Corporate Governance Statement,
Hospital Dexus also acknowledges the
which outlines key aspects of our
corporate governance framework importance of effective corporate
and practices, which is available at governance practices in relation to its
www.dexus.com/corporategovernance. third party capital partners. Policies
are in place to manage conflicts of
interest and related party transactions.
In managing conflicts of interest, Dexus
has established a structure whereby the
responsibility for the investment vehicle
is separated from the other funds or
investment vehicles involved for which
Dexus provides services. The Fund
Manager for each fund or investment
vehicle will, at all times, act in the best
interests of the fund or investment
vehicle. In addition, staff involved in
managing a Fund are dedicated to the
funds management business, rather
than to other activities.
Dexus also manages two other listed
funds, Dexus Convenience Retail
REIT and Dexus Industria REIT, and
applies many of the same governance
arrangements. These funds also benefit
from leveraging Dexus’s funds and
property management expertise to
drive growth and performance.

82 Dexus 2024 Annual Report

Governing ESG
Our corporate governance framework
integrates ESG across the breadth and
depth of Dexus. We regularly review and

Overview
update our policies and procedures
to ensure our organisation adapts to
shifting risks and opportunities.
The Board Sustainability Committee
considers material environmental and
social issues relevant to the platform
and supports the maintenance of our

Approach
position among the leaders in ESG
performance and sustainability impact.
The Board Sustainability Committee
supports the Board in:
– Understanding the expectations
of our key stakeholders
– Understanding how our ability to

Performance
create value is impacted by ESG issues
– Monitoring external ESG trends and
understanding associated risks
and opportunities

The Board Sustainability Committee

meets four times a year and during the
year engaged with Dexus management Sustainability across

Governance
teams on a range of ESG topics,
including: the Dexus Platform
– Engagement on and approval of
Dexus’s materiality assessment and
material topics
– Review and setting of Dexus’s Dexus Board
sustainability strategy Sets the corporate standard, establishes effective
governance, oversees business performance and
– Development and progress against provides ultimate accountability for the group

Directors’ report
Customer Prosperity, Climate Action
and Enhancing Communities priority
area roadmaps
– Embedding sustainability into Board Sustainability Committee
investment and asset plans Oversees the implementation and management of
across the portfolio environmental and social practices and initiatives
– Engagement on ESG and evolving throughout Dexus
investor and customer expectations,
trends and market context and
evolving competitor landscape
Financial report

Executive Committee
– Strengthening ESG in our supply
chain through extended supply chain Oversees the implementation and management of
environmental and social practices and initiatives
mapping and supplier assessments
throughout Dexus
– Progressing towards public
sustainability commitments,
including our net zero
emissions target Reconciliation Action Climate Reporting
Plan Working Group Working Group
– Addressing climate risk across
the portfolio Responsible for advancing Dexus’s Responsible for overseeing Dexus’s
reconciliation journey with Aboriginal transition to meeting mandatory
Investor information

and Torres Strait Islander peoples climate-related financial disclosure

and implementing initiatives requirements against the Australian
aligned to Dexus’s Reconciliation Sustainability Reporting Standards,
Action Plan. as well as oversee implementation
of the approach.

83
Governance continued

Board of Directors The Executive Committee are The members of the Board of
responsible for ensuring that Dexus’s Directors and the relevant business
The Board currently consists of seven group strategy is achieved through and management experience the
Independent Non-Executive Directors the development and implementation Directors bring to the Board is detailed
and one Executive Director. The Board of effective policies, processes on pages 85-88 and available at
renewal process over the past several and procedures, and support and www.dexus.com.
years has produced an experienced encourage behaviours that align with
Board of Directors with a broad Dexus’s values and risk, compliance &
and diverse skill set. Our Board has corporate culture. Board skills and experience
determined that, along with individual Our Board has determined the skills,
Director performance, openness, Executive sub-committees include
expertise and experience required as a
trust, integrity, teamwork, emotional the Capital Markets Committee,
collective to ensure diversity of thought
intelligence, and diversity are important Performance Committee, Investment
and vigorous debate on key decisions.
attributes to a well-functioning board. Committee, and Infrastructure
This is regularly reviewed when
We also acknowledge that an effective Valuations Committee.
recruiting new Directors and assessed
Board relies on board members with by the Board on an ongoing basis.
Further details relating to the Board
different tenures. The collective experience of the current
and Board Committee structure
The Board is responsible for ensuring can be found in the Corporate Directors has been outlined against the
that the fiduciary and statutory Governance Statement available at areas of skill and expertise on page 85.
obligations to Security holders and www.dexus.com/corporategovernance.
The Board believes that its composition
stakeholders are met, and the various meets or exceeds the minimum
Board Committees are detailed below. requirements in each category.

The Dexus Board and Board Committee

membership at 30 June 2024

Nomination & People & Risk &

Audit Governance Remuneration Compliance Sustainability
Director Board Committee Committee Committee Committee Committee

Warwick Negus

Ross Du Vernet

Paula Dwyer

Mark Ford

Peeyush Gupta AM

Rhoda Phillippo

The Hon. Nicola Roxon

Elana Rubin AM

Member Chair & Member

84 Dexus 2024 Annual Report

Dexus Board skills matrix

Areas of skill, expertise and experience

Leadership and Governance Extensive experience as a director and leader including in public listed
companies of similar size and complexity. Deep understanding of relevant
legal, compliance and regulatory frameworks and sound capability in
governance and protecting and enhancing the company’s reputation.

Strategy Experience in developing, executing and successful delivery of strategy,

Overview
and oversight against strategic objectives; includes extensive experience
in merger and acquisition activities, integrations and organisational
transformations.

Property and Experience in and understanding of economic drivers and trends, markets

Approach
Infrastructure investment and customer needs and driving returns from investment in real estate
(including office, industrial, retail and health care) and infrastructure.
Good understanding of the risks and opportunities of larger scale
development projects.

Funds management Experience in and good understanding of the drivers of the successful

Performance
management of third party funds including a deep understanding of, and
engagement with, institutional and other fund investors. Understanding of the
global and local trends in the management of third party funds and sources
of capital.

Capital management Proficiency in and strong understanding of raising capital and investment
banking including experience in allocating and managing equity and debt

Governance
capital to optimise the organisation’s returns while ensuring appropriate
financial strength and liquidity.

Culture, People and Remuneration Demonstrated experience in influencing organisation culture shaped
by ‘tone from the top’ that promotes high engagement, diversity and
inclusion. Deep experience in leadership development, talent management,
succession planning, and in remuneration frameworks and reporting for

Directors’ report
large, listed companies.

Sustainability and Experience and expertise in sustainability best practice including

Stakeholder engagement understanding of climate change and climate related risks and opportunities.
Good understanding of community and stakeholder engagement, as well
as related governance.
Financial report

Finance Good understanding of accounting standards and trends and proficient at

interpreting and analysing financial statements for organisations of similar size
and complexity. Sound understanding of budgeting, forecasting and drivers of
financial performance. Ability to evaluate the effectiveness of internal controls.

Risk management Experience in and understanding of risk management frameworks and

and Compliance controls; the identification, assessment and management of risks, including
Investor information

managing compliance across large, complex, regulated financial services

organisations. Includes experience in workplace health and safety and
understanding of cyber and technological risk management.

85
Board of Directors

Board Focus
The key areas of focus
for the Board and Board
Committees during FY24
are aligned to each of our
key resources.

Risk Pages 20–25

The Board and Risk and Compliance

Committee oversee the risk Warwick Negus Ross Du Vernet
management practices.
Chair and Independent Director Group Chief Executive Officer
BBus, MCom, SF Fin and Executive Director
BBus, MBA
Financial Pages 30–37

The Board and Board Audit Committee Appointed to the Board on Appointed to the Board on
are involved in reviewing and monitoring
1 February 2021 as an Independent 28 March 2024, Ross Du Vernet is Group
financial performance.
Director, Warwick Negus became Chair Chief Executive Officer (Group CEO)
of Dexus Funds Management Limited of Dexus and an Executive Director of
on 27 October 2022. He is also Chair of Dexus Funds Management Limited.
Real assets Pages 38–51
the Board Nomination & Governance
Ross has more than 20 years’
The Board is involved in approving Committee, and a member of the
experience investing in real assets
transactions and developments Board Audit Committee, Board People
with a background in corporate
across the portfolio. & Remuneration Committee, Board Risk
transactions, strategy, and funds
& Compliance Committee and Board
management in Australia and abroad.
Sustainability Committee.
People and Ross holds an MBA from MGSM and a
Pages 52–57 Warwick is Chair of the Bank of
capabilities Bachelor of Business (Finance, Banking)
Queensland and a Non-Executive
from the University of Technology
The Board and Board People and Director of Virgin Australia Holdings
Sydney. He has also completed the
Remuneration Committee are involved Limited, Terrace Tower Group, New
Advanced Management Program at
in aspects relating to employees. South Wales Rugby Union Limited and
the Wharton School of Business.
Tantallon Capital Advisors. He is also
Deputy Chancellor and a member
Customer of the Council of UNSW.
Pages 58–61
prosperity Warwick has more than 30 years of
The Board and Board Sustainability funds management, finance and
Committee are involved in reviewing property industry experience in
activities to support the prosperity Australia, Europe and Asia. Through
of our customers. his experiences as an executive and a
non-executive director, Warwick brings
expertise in the management and
Climate action Pages 62–71 governance of complex organisations
particularly in the fields of fund
The Board and Board Sustainability management and finance.
Committee are involved in reviewing
aspects relating to climate action His most recent executive roles included
and the environment. Chief Executive Officer of Colonial First
State Global Asset Management, Chief
Executive Officer of 452 Capital, and
Enhancing Goldman Sachs Managing Director
Pages 72–75
communities in Australia, London, and Singapore.
Warwick was formerly Chair of
The Board and Board Sustainability UNSW Global and Pengana Capital
Committee are involved in reviewing
Group, and a Non-Executive Director
community related activities within
of Washington H. Soul Pattinson
areas our assets are located.
and FINSIA.

Foundations Pages 76–81

The Board and Board Sustainability

Committee are involved in reviewing
sustainability activities within the
sustainability strategy foundations.

86 Dexus 2024 Annual Report

 Overview
Paula Dwyer Mark Ford Peeyush Gupta AM
Independent Director Independent Director Independent Director
BCom, FCA, SF Fin, FAICD Dip. Tech (Commerce), CA, FAICD FAICD, MBA (Finance), BA (CompSc)

Approach
Appointed to the Board on Appointed to the Board on Appointed to the Board on
1 February 2023, Paula Dwyer is an 1 November 2016, Mark Ford is an 24 April 2024, Peeyush Gupta AM is
Independent Director of Dexus Funds Independent Director of Dexus Funds an Independent Director of Dexus
Management Limited, and a member Management Limited and Dexus Funds Management Limited, and
of the Board Audit Committee, Board Wholesale Property Limited, Chair of a member of the Board Audit
Nomination & Governance Committee the Board Audit Committee, and a Committee, Board Nomination &

Performance
and Board People & Remuneration member of the Board Nomination & Governance Committee and Board
Committee. Governance Committee and Board Risk Sustainability Committee.
& Compliance Committee.
Paula is Chair of Allianz Australia Peeyush is currently a Non-Executive
Limited, Elenium Automation Pty Mark is a Director of Prime Property Director on the boards of Liberty
Limited and Blackmores Limited and Fund Asia. Group, SBS, Great Southern Bank,
a Non‑Executive Director of AMCIL Quintessence Labs, Northern
Mark has extensive property industry Territory Aboriginal Investment
Limited and Lion Pty Limited, where
experience and has been involved in Corporation, Institute of Chartered
she is Chair of the Audit, Risk and
Real Estate Funds Management for over

Governance
Compliance committees. She is a Accountants, NSW Cancer Council
25 years. He was previously Managing and The George Institute.
member of the Committee of the
Director, Head of DB Real Estate
Melbourne Cricket Club.
Australia, where he managed more Peeyush has extensive experience
Paula has been a Non-Executive than $10 billion in property funds and as a non-executive director across
Director for over 25 years following sat on the Global Executive Committee financial services, property, insurance,
an executive career in investment for Deutsche Bank Real Estate and government, media, accounting and
banking and funds management. RREEF. Mark was also a Director in the technology.
She has significant experience Property Investment Banking division
Peeyush was co-founder and inaugural
across financial services, investment of Macquarie and was involved in

Directors’ report
CEO of IPAC Securities, a pre-eminent
management, healthcare, energy, listing the previous Macquarie Office
wealth management firm spanning
utilities and infrastructure, property Fund. His previous directorships include
financial advice and institutional
and construction, corporate finance Comrealty Limited, Property Council of
portfolio management. He was
and mergers & acquisitions. Paula Australia, Deutsche Asset Management
previously Chair of Charter Hall Long
brings to the board her diverse Australia and he was also Founding
Wale REIT and Charter Hall Direct
leadership experience including in Chair of Cbus Property Pty Limited
Property Management Ltd and has
corporate strategy development and Chair of Kiwi Property Group and
previously held executive roles at AXA
and implementation across a broad South East Asia Property Company.
and Nathan Funds Management.
range of industries and in navigating Mark previously held senior roles with
complex stakeholder relationships. Price Waterhouse and Macquarie Bank. Peeyush was awarded a Member of
Financial report

the Order of Australia in 2019 for service

Previous roles include as Non-Executive
to business and community through
Director of ANZ Banking Group Limited
governance and philanthropic roles.
(where she was Chair of the Audit
Committee), Suncorp Group Limited,
Astro Japan Property Group Limited,
Fosters Group Limited, David Jones
Limited and Promina Group Limited.
Paula was formerly Chair of Tabcorp
Holdings Limited and Healthscope
Investor information

Limited and Deputy Chair of Leighton

Holdings Limited.

87
Board of Directors continued

Rhoda Phillippo The Hon. Nicola Roxon Elana Rubin AM

Independent Director Independent Director Independent Director
MSc (Telecommunications BA/LLB (Hons), GAICD BA (Hons), MA, SF Fin, FAICD
Business), GAICD

Appointed to the Board on Appointed to the Board on Appointed to the Board on

1 February 2023, Rhoda Phillippo is an 1 September 2017, Nicola Roxon is 28 September 2022, Elana Rubin is
Independent Director of Dexus Funds an Independent Director of Dexus an Independent Director of Dexus
Management Limited, Chair of the Funds Management Limited, Chair of Funds Management Limited and Dexus
Board Risk & Compliance Committee, the Board Sustainability Committee, Wholesale Property Limited, Chair of
and a member of the Board Nomination and a member of the Board Nomination the Board People & Remuneration
& Governance Committee and Board & Governance Committee and Board Committee, and a member of the
Sustainability Committee. People & Remuneration Committee. Board Nomination & Governance
Committee and Board Risk &
Rhoda is a Non-Executive Director Nicola is the Independent Chair of
Compliance Committee.
of APA Group (ASX: APA) where she large superannuation fund, HESTA, and
chairs the Risk Committee and a of the statutory public health agency, Elana is Chair of the Australian Business
Non‑Executive Director of Waveconn VicHealth. She is also on the board Growth Fund (ABGF) and Victorian
Group Holdings Management Pty Ltd. of the Murdoch Children’s Research Managed Insurance Authority, and
Institute. She is Chair of the Australian a Non-Executive Director of Telstra
Rhoda has been a Non-Executive
Institute of Health and Welfare (AIHW). Corporation. She is also a director
Director for over 15 years, following an
of several infrastructure, private and
extensive executive career leading Trained as an industrial lawyer,
social enterprises, and a member of
operations across infrastructure, energy, Nicola served in the Commonwealth
the Reserve Bank of Australia.
telecommunications and technology Parliament for 15 years including
in Australia, New Zealand and the a period as Minister for Health, Elana has been a Non-Executive
UK. Her experiences have gained her and also as Australia’s first female Director for over 20 years.
deep skills in operational and change Attorney‑General. She was a She has extensive experience across
management, mergers & acquisitions, Non‑Executive Director of ASX technology, financial services, property,
risk management, technology and listed housing company, Lifestyle infrastructure and government sectors.
cyber issues. Communities. Her non-executive directorships
have spanned listed, unlisted, private
Previous Board roles include Nicola’s skill set from more than
and government companies.
Non‑Executive Director of Pacific 20 years’ experience in government
Hydro, Datacom Group Limited, LINQ, and law provides strong insights Previous roles include having served
Vocus Group Limited (ASX: VOC) and into strategy, public policy and as Chair of Afterpay, Chair of
Managing Director of Lumo Energy. accountability. Her non-executive AustralianSuper and Chair of WorkSafe
Rhoda also held the role of Chair of career across not-for-profit, unlisted, Victoria and as a director of Mirvac
Snapper Services NZ, Chair of Kinetic government and listed organisations and ME Bank. Elana was formerly a
IT Pty Limited and Deputy Chair of in the last decade has allowed her to member of the Federal Government’s
Kiwibank NZ. develop further expertise in ESG, health, Infrastructure Australia Council and
investor relations and remuneration. Climate Change Authority, and a
member of the AICD Victorian Council.
Elana brings a strong investor and
stakeholder focus and understands
the positive role well managed real
assets can play to create stronger
communities. She has been a strong
advocate for the benefits of diversity
in the workplace and building strong
cultures to drive performance.
Elana was awarded a Member of the
Order of Australia in 2021 for services to
corporate governance and community.

88 Dexus 2024 Annual Report

 Executive Committee

Board composition The Board has appointed an Executive Committee

(ExCo) comprising Dexus’s most senior executives.
The ExCo is responsible for implementing our strategy,
maintaining our high standards of governance, driving
culture and engagement, achieving objectives, and
ensuring prudent financial and risk management
across the Dexus Platform.
Professional
qualifications
Members of the Executive Committee include:

Overview
55% 9%
Business/ Science
Commerce
(including

Approach
Accounting
& Finance)
Ross Du Vernet Keir Barnes Melanie Bourke
9% 27% Group Chief Executive Chief Financial Chief Operating
Law Other Officer & Managing Officer Officer
Director

Performance
Tenure
Marjan van der Burg Andy Collins Marco Ettorre

Governance
Chief People Executive General Executive General
Officer Manager, Office Manager, Retail

62% 13%
0–3 years 3–6 years

25%

Directors’ report
6–9 years

Jonathan Hedger Nik Kemp Chris Mackenzie

Chief Investment Executive General Executive General
Officer Manager, Growth Manager, Industrial
Markets, commencing
mid-October 2024
Financial report

Gender1

43% 57%
Men Women
Investor information

1. Non-Executive directors only.

89
Directors' report

Board focus In FY24, the Board and Board People – Engaging with key investors and
and Remuneration Committee also proxy advisors following the 2023
The main objective of the Board undertook a range of activities relating Remuneration strike and reviewing the
People and Remuneration Committee to broader people and remuneration remuneration framework to ensure it
is to assist the Board in fulfilling issues including: remains fit-for-purpose
its responsibilities of developing
remuneration strategy, framework and – Appointment of the new Group CEO, – Monitoring the organisational
policies for Board approval for the the CEO transition and changes to culture, employee engagement and
following groups: Board Committee membership corporate culture metrics
– Approving performance objectives – Reviewing talent development
– Non-Executive Directors (NEDs) programs and succession planning
and Key Performance Indicators
– Executive Key Management for the Group CEO, Executive KMP – Approving the Purpose Statement
Personnel (Executive KMP), including and other executives
the Group Chief Executive Officer – Approving the Good Leaver Policy
and Managing Director (Group CEO) – Approving the Inclusion and Diversity – Approving an increase in base fee for
strategic priorities and targets the Chair
– Executive Committee (ExCo)
– Approving the FY24 Fixed
Remuneration parameters for all
Dexus employees and the FY24 Fixed
Remuneration increase budget

90 Dexus 2024 Annual Report

Remuneration report – We secured circa $2.9 billion of 2023 AGM ‘first strike’
divestments across the funds
Dear Security holder, At the 2023 AGM, Dexus received
platform during the year to maintain
a ‘first strike’ against its 2023
On behalf of the Board, I am pleased to strong gearing levels and facilitate
Remuneration Report with one proxy
present the Remuneration Report for the redemption requests to meet
advisor recommending a vote ‘against’.
year ended 30 June 2024. client needs, an important part
We engaged with a number of investors
of our proposition as a leading
in October 2023 following the release
Against the backdrop of a continued fund manager
of that report and in the lead up to the
challenging economic environment, – We continued to selectively AGM. At that time, investors primarily
Dexus has remained focused on divest assets to enhance portfolio expressed concerns about the level
strategic execution, maintaining a quality and balance sheet strength, of FY23 incentive outcomes when
resilient balance sheet through asset with circa $0.7 billion of balance compared to financial performance
recycling and completing the integration sheet divestments announced since and Security holder returns, which were
of the AMP Capital platform across real FY23, bringing total exchanged and lower than previous years. The only

Overview
estate and infrastructure. In addition, settled divestments to $1.7 billion structural concern raised by investors
Dexus’s CEO transitioned during the year since FY23 related to the inclusion of strategic
from former CEO Darren Steinberg to
– We continued to make significant measures in the long-term incentive (LTI)
Ross Du Vernet.
progress on our sustainability (with some strategic measures also
Despite the tough market conditions, initiatives, with the key highlights included in the short-term incentive (STI)).
acknowledging a higher interest rate for the year including delivering net Following the AGM, we engaged with key
environment and a softening in office zero1 and 100% renewable energy

Approach
investors and proxy advisors to better
market valuations, Dexus continued purchasing for our managed portfolio, understand their concerns and reviewed
to achieve solid outcomes against and significant progress made on our our remuneration framework to ensure it
key measures that drive the rewards FY25 sustainability targets. We have remains fit-for-purpose in the context of
under our short and long-term incentive also received external recognition Dexus’s broader strategy and operations.
programs for FY24 including: for our sustainability leadership, Details of our response to the concerns
achieving a Dow Jones Sustainability raised are set out in section 3.
– Adjusted Funds from Operations
Indices (DJSI) score within the top 5%
(AFFO) per security of 48.0 cents per
of peers globally and achieving 5 star

Performance
security. This AFFO performance FY24 remuneration outcomes
Global Real Estate Sustainability
enabled us to deliver distributions of
Benchmark (GRESB) outcomes While no substantial remuneration
48.0 cents per security to our Security
across six of our Real Estate funds. framework changes have taken place
holders, in line with the guidance
Further, we have embedded the in FY24, following substantial changes in
set at the start of the year. In a year
new sustainability strategy within all FY23, we have been particularly mindful
where distribution growth has been
funds and asset plans, and finalised of the feedback received following the
negative, the Board has recognised
the new Development Sustainability 2023 AGM in our disclosures this year
the impact to Security holders by
Standard which will apply across all and in considering the appropriateness
awarding an AFFO outcome at
new developments from FY25

Governance
threshold (for meeting guidance). Our of incentive outcomes:
distributions in FY24 were lower than – In November 2023, we achieved – As Dexus continues to intentionally
FY23 predominantly due to lower Final Completion of the AMP Capital place a lower weighting on the STI
trading profits in FY24. AFFO excluding real estate and infrastructure relative to our A-REIT peers in favour
trading profits was 0.2% above FY23, equity platform acquisition. The of a higher weighting to LTI, our STI
demonstrating resilience despite the addition of the AMP Capital platform opportunities (in dollar amounts) are
headwinds experienced during the allows us to offer a broader set low compared to our ASX 100 A-REIT
year from valuation declines and of investment opportunities and peers. Based on Executive Key
divestments across the platform, positions us to realise our vision to be Management’s (KMP) performance

Directors’ report
and a higher average cost of debt globally recognised as Australasia’s against their FY24 scorecards, the
leading real asset manager. This Board has approved an incentive
– Occupancy in our office and industrial
was a complex transaction which outcome of 44.8% of maximum for
portfolios remained high at 94.8%
required discipline and innovation to the former CEO, which is 20% lower
and 96.8%, respectively, due to active
separately complete and integrate. than his FY23 outcome in dollar
asset management and the quality
While we acknowledge that there terms. Other incentive outcomes are
and location of our portfolio, along
were challenges associated with 57.6% for the new Group CEO, 0.0%
with strong rent collections at 99.5%.
such a significant structural change, for the CE, FM and 60.0% for the CFO,
For our office portfolio, occupancy
impacting our FY24 employee of maximum. Refer to section 5 for
exceeded the average Australian
engagement score (against which more detail on performance and
market occupancy of 86.4%, with
there was no vesting), we expect our
Financial report

average leasing incentives of 27.9%, STI outcomes

initiatives to have a positive impact
below the market average – For the LTI tranches tested on
from FY25. I would like to thank all our
– Against a soft capital raising employees who worked so hard over 1 July 2024, the vesting outcomes for
backdrop, we successfully raised many months on this transaction to the second tranche of the FY21 LTI
over $300 million of equity at ensure its success and full integration was 58.7% and the first tranche of the
first close in Dexus Real Estate by 31 March 2024, three-months earlier FY22 LTI was 20.0%. Refer to section 5
Partnership 2 (DREP2), the second than our target completion date for more detail on LTI outcomes
fund in our opportunity series. Of our
flagship funds, 50% outperformed These financial and non-financial
their benchmarks outcomes serve as inputs to the
Investor information

Board’s decision-making when

assessing the appropriateness of
remuneration outcomes.

1. In line with Climate Active Carbon Neutral Standard for Organisations, net emissions for the year ended 30 June 2024 include offsets
purchased and allocated for retirement during the year and up to the date of this report. 91
– During the year, we conducted His fixed remuneration was set at The Board thanks Darren for his
benchmarking of the remuneration $1.5 million per annum, which is 6% lower dedication and vision in growing Dexus
of our Executive KMP. The fixed than his predecessor, with a maximum over what is an extraordinarily long
remuneration of our CFO was STI of 100% of fixed remuneration and period as CEO of an ASX 100 entity.
identified as being below her a maximum LTI opportunity of 200% of The Board wishes Darren all the best
ASX 20–100 market peers. fixed remuneration. This represents a for the future and looks forward to
Accordingly, the Board approved change in the weighting of the Group continuing to achieve Dexus’s strategic
a 6.25% increase in her fixed CEO remuneration mix towards a higher and operational goals as part of its
remuneration to bring her to market LTI and lower STI. This aligns the new next chapter under the leadership of
median. No other Executive KMP Group CEO with Dexus’s remuneration Ross Du Vernet, as our new Group CEO.
received a fixed remuneration strategy since FY23 to weight our
Following the end of the financial year,
increase in FY24 (aside from the new Executives’ pay mix to the long-term
Deborah Coakley, Chief Executive,
Group CEO, compared to his fixed and create greater alignment with
Funds Management, stepped down
remuneration in his previous role Security holder interests.
from her position to pursue other
as CIO)
opportunities. The Board wishes to
Changes to remuneration for FY25 thank Deborah for the important role
Dexus commitment to At the request of our new Group CEO in that she has played in growing Dexus’s
gender diversity and 2024, the Board undertook a review of funds management business and the
the executive remuneration framework diversification of our investor base.
closing the gender pay gap
to ensure it continues to support
Dexus has a clear commitment to Finally, I would also like to thank Penny
Dexus’s ability to attract and retain
creating a diverse, equitable and Bingham-Hall for her significant
key talent to accelerate our next stage
inclusive workplace that reflects our contribution and leadership as Chair
of growth and become Australasia’s
customers and communities. Our Board of the People and Remuneration
leading real asset manager.
gender diversity target is at least 33% Committee until her resignation from
of non‑executive directorships held In order to support our strategy of the Board, which became effective
by women by 30 June 2025. For the delivering superior risk adjusted 28 March 2024.
organisation, our target is 40:40:20 returns for our investors, the Board has
The Board reaffirms its ongoing
(40% male, 40% female, 20% any gender) approved a new LTI plan for FY25. Under
commitment to ensuring Dexus’s
for senior management and executive the new plan, our Executives will be
remuneration framework remains
roles for the same period. As at granted market priced Options which
fit‑for-purpose and is strongly aligned
30 June 2024, women represented 57.0% will only have a value where our security
with Dexus’s long-term strategy and
of Non‑Executive Directors and 34.2% of price increases. The new LTI will be
the interests of our Security holders.
senior management and executive roles. granted in three equal tranches that will
We thank all our team for their
be tested after three, four and five years
We recognise that we operate in a sector commitment and hard work to bring
– underpinning our focus on generating
where there are still many obstacles our strategy to life and deliver value for
superior returns over the long-term.
to achieving gender pay equity, and it our Security holders.
The Options will only vest where our
remains an ongoing challenge for both Security holders enjoy a minimum level We welcome your feedback on
our organisation and the industry. In line of total return (distributions plus security our remuneration framework and
with this, we remain committed to gender price growth) over the performance look forward to your support at our
equity and improving the representation period. This change also results in the 2024 AGM.
of women across all areas of our business removal of strategic measures from the
to address the findings of the WGEA LTI measures, addressing an area of Yours sincerely
gender pay report. concern raised by investors regarding Elana Rubin
Further detail on the work we are doing the remuneration structure.
Chair – People and Remuneration
to achieve meaningful long‑term Further detail is provided in section 6.4. Committee
change is included in the Thriving
People section in this Annual Report.
KMP changes
New Group CEO arrangements The Board wishes specifically to call
out the strong leadership of Dexus over
As announced at the 2023 AGM, our the past 12 years by Darren Steinberg.
long-standing CEO Darren Steinberg Dexus has changed significantly
stepped down during the year. under Darren’s leadership as CEO.
Following an extensive search, which Since joining Dexus in 2012, Darren has
included both internal and external been instrumental in growing Dexus’s
candidates, the Board selected our total funds under management from
CIO, Ross Du Vernet to be Group $12.9 billion to $54.5 billion today,
CEO. He commenced in that role while at the same time enhancing
on 28 March 2024. portfolio quality, diversifying the
platform including into new sectors
such as healthcare, opportunistic
and infrastructure, and developing
a unique set of capabilities across
the platform.

92 Dexus 2024 Annual Report

This Remuneration Report forms part of the Directors’ Report and outlines the
remuneration framework and outcomes for KMP in FY24.
This report has been prepared and audited in accordance with section 308(3C) of the Corporations Act 2001.

Contents
1. Introduction
2. Remuneration snapshot
3. Our response to the ‘first strike’ at the 2023 AGM
4. Company performance

Overview
5. FY24 performance and remuneration outcomes
6. FY24 remuneration framework
7. Executive KMP contractual agreements
8. Remuneration governance
9. NED remuneration

Approach
10. Statutory disclosures

1. Introduction

Performance
1.1 Key Management Personnel (KMP)
In this report, the KMP comprise the officers outlined below, as those individuals having the authority and responsibility for
planning, directing and controlling the activities of the Group, either directly or indirectly. The Group CEO and other Executives
considered KMP are referred to collectively as ‘Executive KMP’ in this report.

Name Role Term

Non-Executive Directors

Governance
Warwick Negus Chair Full year
Penny Bingham-Hall Director Part year – until 28 March 2024
Paula Dwyer Director Full year
Mark Ford Director Full year
Peeyush Gupta Director Part year – from 24 April 2024
Rhoda Phillippo Director Full year

Directors’ report
The Hon. Nicola Roxon Director Full year
Elana Rubin AM Director Full year
Executive Director and Executive KMP
Ross Du Vernet Group Chief Executive Officer Full year – C
 IO until 27 March 2024,
& Managing Director (Group CEO) Group CEO from 28 March 2024
Other Executive KMP
Keir Barnes Chief Financial Officer (CFO) Full year
Financial report

Deborah Coakley1 Chief Executive, Funds Management Full year

(CE, FM)
Former KMP
Darren Steinberg Executive Director & Chief Executive Part year – until 27 March 2024
Officer (CEO)
Kevin George Executive General Manager, Part year – until 3 July 2023
Office (EGM, Office)
1. Ms Deborah Coakley stepped down from her role as CE, FM on 17 July 2024.
Investor information

93
2. Remuneration snapshot
2.1 Link between business strategy and remuneration framework
Our Vision Our Strategy Our Remuneration Strategy
To be globally recognised as To deliver superior risk-adjusted returns To attract, retain and motivate the
Australasia’s leading real asset for Dexus Security holders and our best people to create a great culture
manager. capital partners by owning, managing that delivers our business strategy and
and developing quality real estate contributes to sustainable long-term
and infrastructure assets. returns.

Remuneration principles

We align reward to our strong risk, high

performance, diverse and inclusive culture

Culture

We reward for performance aligned to our business

strategy with an emphasis on equity ownership
Alignment to
performance

We position reward opportunity to attract

and retain the best talent
Market
competitive

We appropriately reward for both financial

and non‑financial outcomes

Sustainable

We keep it simple and set clear expectations

Simple and
transparent

94 Dexus 2024 Annual Report

2.2 Executive remuneration components
Fixed Remuneration (FR) Short-Term Incentive (STI) Long-Term Incentive (LTI)
Purpose Attract and retain Reward for performance against annual Align Executives’ focus with the
Executives with financial and non-financial, Group and long-term business strategy to drive
the capability and individual objectives. sustained earnings and Security
experience to deliver holder returns.
our strategy.
Link to Fixed remuneration The STI is designed in a simple and The LTI provides alignment with
remuneration should be market transparent manner with a focus on long-term performance and is
principles competitive. rewarding annual performance, through an delivered wholly in equity to align
assessment of financial and non-financial with Security holder interests.
measures. The STI is only awarded where
We reward sustainable

Overview
Executive behaviour standards align to our
performance by assessing
culture and values.
performance against financial and
Delivery of part of the award in equity places non-financial measures.
an emphasis on equity ownership to align Strategic:
Executives with Security holder interests. RTSR: 40% ROCE: 40%
20%

FY24 Only the CFO received All Executive KMP met the behavioural The following LTI tranches were
outcomes a fixed remuneration gateway and were eligible for an FY24 STI. tested on 1 July 2024:

Approach
increase – a 6.25%
The STI outcomes as a percentage – The second tranche of the FY21
increase from $800,000
of maximum for the Executive KMP for LTI vested at 58.7%, against the
to $850,000 to bring
FY24 were: AFFO per security performance
her fixed remuneration
and ROCE measures
to market median – Former CEO: 44.8%
compared to her ASX – The first tranche of the FY22
– New Group CEO: 57.6% (pro-rated as
and A-REIT peers. LTI vested at 20.0%, against
nine-months CIO and three-months as

Performance
the ATSR, ROCE and strategic
See section 2.3 for Group CEO)
measures
more details on the – CE, FM: 0.0%
new Group CEO’s See section 5.5 for more detail.
remuneration package. – CFO: 60.0%
See section 5.1 and 5.2 for more detail.

Minimum security holding requirement

Governance
Group CEO: 150% of Fixed Remuneration
Other Executive KMP: 75% of Fixed Remuneration
This requirement is to be met within five years of appointment to the Executive Committee (ExCo).

2.3 New Group CEO remuneration package

Ross Du Vernet was appointed as Group CEO on 28 March 2024. Mr Du Vernet’s remuneration package, effective from the date
of his appointment, is weighted more heavily to the LTI than his predecessor to ensure his rewards are aligned with Dexus’s
long-term goals and has a heavier weighting on equity (and less on cash) to ensure that his rewards are aligned to Security

Directors’ report
holder interests. As a result, his maximum STI opportunity is the lowest of all the ASX 100 A-REIT CEOs.
His remuneration package at the minimum, target and maximum levels of performance are shown below.

Group CEO (FY24)

Minimum
$1,500k
(no STI and LTI)

100% cash
Financial report

Target
(target STI and $1,500k $900k $300k $1,500k
50% LTI vests)1

57% cash 43% equity

Maximum
(maximum STI $1,500k $1,125k $375k $3,000k
and LTI vests)
Investor information

44% cash 56% equity

Fixed Remuneration (Cash) STI (Cash) STI Deferred (Security Rights) LTI

1. Target LTI figure of 50% is used as a proxy for indicative purposes only. 95
2.4 Other Executive KMP pay mix
Set out below is the remuneration mix for the other full-year Executive KMP at target and maximum below.

Target remuneration mix

42% 25% 8% 25%

67% cash 33% equity

Maximum remuneration mix

31% 23% 8% 38%

54% cash 46% equity

Fixed Remuneration (Cash) STI (Cash) STI Deferred (Security Rights) LTI

2.5 Executive remuneration structure

Our FY24 remuneration structure for Executive KMP is outlined below, including the FY24 remuneration framework changes.

Year One Year Two Year Three Year Four

Base Salary,
Fixed remuneration
Superannuation
(FR)
and Other Benefits.

Assessed against Cash

a scorecard (75%).
STI maximum is
over 12 months,
STI 100% of FR for all
subject to meeting
Deferred Security Executive KMP.
a behavioural
Rights (25%)
gateway.

LTI maximum is 200%

of FR for the new
Performance Rights tested at end of Year Three
Group CEO or 120%
against performance measures (50%).
of FR for other
LTI Executive KMP.

Performance Rights tested at end of Year Four against performance measures (50%).

Payment/Vesting

96 Dexus 2024 Annual Report

3. Our response to the ‘first strike’ at the 2023 AGM
At the 2023 AGM, more than 70% of the votes cast were in favour of our FY23 Remuneration Report as three out of the four
proxy advisors supported our Remuneration Report. However, some external stakeholders raised concerns, particularly
regarding our FY23 incentive outcomes, resulting in a ‘first strike’ against the Report. Following engagement with stakeholders,
we set out below the key concerns raised with the Board and how we have responded.

Concern Response
Strategic measures As Dexus’s business model is long-term in nature, the introduction of strategic measures in the LTI
(20% weighting) in in FY22 aimed to focus Executives on achieving our long-term strategy in a sustainable manner.
the LTI are perceived As FY24 is the first year in which the strategic measures component is tested, we provide detail on
as ‘day job’ activities how these are assessed in section 5.5.
and do not have
The Board will introduce a new LTI framework in FY25, which includes removing the strategic

Overview
quantifiable targets
measure from FY25.
set, with similarities
between measures
under the STI and LTI
Below market STI Dexus currently defers 25% of the STI award for one year. The Board considered this a fair balance
deferral compared when remuneration was reweighted in FY23 to reduce the STI opportunity of our Executives and
to large ASX‑listed increase the LTI opportunity.

Approach
companies
The AFFO component Each year, the Board sets AFFO targets relative to distribution guidance, with distributions paid
paid out for lower in line with free cash flow, for which AFFO is a proxy. We believe AFFO remains the most relevant
year-on‑year earnings measure in the STI for our sector through the cycle, as it removes the impact of the gains
performance at and losses from revaluations of our assets.
the threshold level
FY23 distribution guidance (50.0–51.5 cents per security) was lower than FY22, considering

Performance
anticipated challenging economic conditions in a rising interest rate environment. Guidance
was then updated at the HY23 result, to 51.0–51.5 cents per security. The final AFFO outcome for
FY23 delivered distributions to Security holders above the top end of the range, at 51.6 cents per
security, resulting in a threshold level of vesting. The Board acknowledges that AFFO was lower in
FY23 and FY24, however the results reflect a solid outcome in challenging economic conditions.
As mentioned in the Chair’s Letter, our lower AFFO result in FY24 was primarily due to lower trading
profits, acknowledging the headwinds facing our properties valuations. AFFO excluding trading
profits was 0.2% higher than FY23.

Governance
Perceived misalignment For FY23, the STI outcome was 56.0% of the maximum for the former CEO, and 56.0–66.8% of
between STI and LTI maximum for other Executive KMP, representing the lowest STI outcome over the past five-year
outcomes with Security period, and reflective of lower returns to Security holders.
holder outcomes
In FY23, Dexus distributions to Security holders exceeded guidance. Our performance against
guidance, the relative performance of our Funds against industry benchmarks, our performance
against strategic objectives and the generation of strong return on capital employed
underpinned our STI and LTI outcomes for FY23.
For FY24, the STI outcome as a percentage of maximum was 44.8% for the former CEO, 57.6% for

Directors’ report
the new Group CEO, 0.0% for the CE, FM and 60.0% for the CFO.
Key achievements contributing to the FY24 outcome were delivering guidance, fund relative
performance against industry benchmarks, delivering on sustainability initiatives, completing the
integration of AMP Capital and a smooth CEO transition.
Non-financial measures The Board believes it is important to holistically assess our Executives’ performance not
in the STI may represent only against financial targets, but also against important non-financial measures relating
‘day job’ responsibilities to sustainability, our people and, last year, the integration of AMP Capital’s real estate and
infrastructure equity platform. The Board strongly believes that all of these measures support our
long-term success and reflect Dexus’s strategic priorities and organisational values.
Financial report

The Board reviews and sets out the annual STI scorecard having regard to our organisational and
strategic priorities for the coming year. We set robust targets for all our measures in the STI scorecard.
Investor information

97
4. Company performance
4.1 Historical performance outcomes
The following table outlines Dexus’s historical financial performance. These results flow into scorecard outcomes for the STI and
LTI vesting results.

Five-year financial performance FY24 FY23 FY22 FY21 FY20

FFO1 ($m) 703.4 738.5 757.6 717.0 730.2
AFFO1 ($m) 516.3 555.0 572.2 561.7 550.5
Net Profit/(loss) After Tax (NPAT) ($m) (1,583.8) (752.7) 1,615.9 1,138.4 927.7
AFFO per security (cents) 48.0 51.6 53.2 51.8 50.3
AFFO per security growth (%) (7.0) (3.0) 2.7 3.0 0.0
Distribution per security (DPS) (cents) 48.0 51.6 53.2 51.8 50.3
ROCE (%) 4.0 8.0 9.7 8.3 9.0
Dexus’s closing security price ($) 6.48 7.80 8.88 10.67 9.20
NTA per security ($) 8.97 10.88 12.28 11.42 10.86
CEO’s STI outcome (% of maximum)2 (%) 44.8 56.0 94.8 100.0 57.0
1. FFO and AFFO is a non-IFRS measure that is unaudited but derived from audited Financial Statements. Please refer to Note 1 Operating Segments
of the financial statements for the disclosure of the basis of the calculations and adjusted items.
2. FY20–FY24 CEO STI outcomes relate to the STI outcomes of former CEO, Darren Steinberg.

Distribution and AFFO per security v former CEO’s

STI outcome 100% 75¢

Our STI outcome for the former CEO in FY24 was 44.8% of
maximum, acknowledging that Mr Steinberg served in the CEO 80% 60¢
role for the majority of the year. All STI outcomes FY20-FY24

Cents per security

relate to former CEO, Mr Steinberg.
STI Outcome

60% 45¢

40% 30¢

20% 15¢

0% 0¢
FY20 FY21 FY22 FY23 FY24

CEO’s STI outcome (% of maximum) Distribution and AFFO

per security

Average ROCE v former CEO’s LTI outcome

Our average LTI outcomes over the past three years have 100% 10%
been lower than historic levels, reflecting our lower ROCE
performance during the COVID impacted years and in a higher
interest rate environment. All LTI outcomes FY20–FY24 relate to 80% 8%
former CEO, Mr Steinberg.
Average ROCE p.a.
LTI Outcome

60% 6%

40% 4%

20% 2%

0% 0%
FY20 FY21 FY22 FY23 FY24

CEO’s LTI outcome (% of maximum) ROCE

98 Dexus 2024 Annual Report

5. FY24 performance and remuneration outcomes
Despite Dexus’s TSR performance and statutory net loss this year, which is largely the result of unrealised net property
valuation losses each year over the below period Dexus has generated strong cash earnings (as measured by AFFO), on which
distributions are based.

Statutory NPAT ($m) AFFO ($m) DPS (cps)

2,000 120

100
1,500
Statutory NPAT and AFFO ($m)

Overview
80
1,000

60

DPS (cps)
500

40

Approach
20

-500
0

-1,000 -20
FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

TSR (%) 9.9% 15.8% 30.3% 10.1% 7.5% 39.4% (25.7)% 22.0% (12.3)% (6.3)% (11.2)%

Performance
5.1 Former CEO scorecard performance outcomes
In FY24, Executive KMP were assessed against a mix of Group and role-specific KPIs.
At the end of FY24, upon assessment of whether each Executive KMP met Dexus’s values and expectations, the Board
determined that the behavioural gateway was met, and each Executive was eligible to receive an STI award in FY24.
Details on the former CEO’s performance against each measure in his scorecard have been provided below, given he was in

Governance
the role for the majority of the year. Further detail relating to Mr Steinberg’s outgoing arrangements is set out in section 7.2.

Assessment
Out-
Measure & Rationale perform-
for Inclusion Weighting Outcomes Achieved Threshold Target ance
Group Financial (60%) (50%) (100%) (125%)

Directors’ report
Adjusted Funds from 40% Dexus’s AFFO for FY24 was 48.0 cents per
Operation (AFFO) per security, which was aligned to the Board
Guidance
security approved distribution guidance of Guidance Guidance
+7%
+5%
48.0 cents per security for FY24.
Key financial measure to
assess the performance Threshold
of our overall business.

Funds’ performance vs 20% Of Dexus’s flagship funds, 50%1 of funds

benchmark hurdle rate or outperformed benchmarks.
50% of funds 62.5% of funds 75%+ of funds
investment plan objective outperform outperform outperform
Financial report

To assess our ability

to deliver competitive Threshold
returns against our peers.

1. Represents the number of funds that outperformed benchmark.

Investor information

99
 Assessment
Out-
Measure & Rationale perform-
for Inclusion Weighting Outcomes Achieved Threshold Target ance
Group Non-Financial (20%) (75%) (100%) (125%)
Employee engagement 10% Our employee engagement score, noting
score that this is the first full year of AMP Capital
63% 66% 70%+
contribution, was below the threshold for vesting.
To ensure we provide a
workplace that brings out As part of the integration, it was anticipated that Nil outcome
the best in our people, there would be challenges associated with such
helping them grow and significant structural change, hence baseline and
develop their careers. targets were set lower than the prior year.
Having now completed the full integration of
the AMP Capital employees during FY24, senior
management has implemented a number of
initiatives to improve employee engagement that
we expect to have a positive impact in FY25.
Sustainability impact 10% Outcomes for FY24 include:
& performance
– Dexus has maintained or improved its position Retain Threshold Target plus
To ensure we maintain against the GRESB and DJSI benchmarks. It is leadership plus all exceedance
position and funds have against
our market-leading ranked in the top 5% of the DJSI benchmark for majority of plans and plan
sustainability credentials the REIT peer group funds have Standards
sustainability launched
and deliver on the – Sustainability Development Standards have and real
Group’s sustainability been developed for each sector and will apply estate asset
strategy. across all new developments from FY25
plans
Target
– All Fund Managers are using the approved
Funds Sustainability Action Plan to inform funds
investment plan updates

Full details of achievements can be found in the

Performance section in this Annual Report.
Role-specific (20%) (75%) (100%) (125%)
Demonstrates leadership 20% Outcomes for FY24 include:
of key elements of
– Completing the successful integration of AMP
Dexus’s FY24 strategy
Capital by March 2024, three-months ahead
Supporting sustainable of schedule, including the integration into our Between threshold
long-term growth platform and completion of transitional services and target
and value creation for – Outgoing and incoming CEO transition
Security holders through arrangements finalised in a timely manner and
key deliverables. implemented smoothly internally and externally
– Infrastructure FUM achieved above threshold.
However, the Real Estate FUM outcome was
below threshold, impacting the final score of
the former CEO’s role-specific KPIs
Former CEO’s outcome (% of target) 56.0%
Former CEO’s outcome (% of maximum) 44.8%

For the new Group CEO, Ross Du Vernet, Group measures from his CIO scorecard were retained for the full year, however,
role specific KPIs were updated to reflect his transition to the Group CEO role and associated deliverables for the last quarter.
The new Group CEO's full year scorecard outcome was 57.6% of maximum (pro-rated as nine-months CIO and three-months
as Group CEO).

100 Dexus 2024 Annual Report

5.2 Other Executive KMP role specific KPI outcomes
While the financial and non-financial measures outlined in relation to the former CEO in section 5.1 apply in most instances
to the other Executive KMP, each role has some variation to role-specific performance measures which have resulted in
differentiated STI outcomes in FY24.
A summary of performance against the additional measures applying to various other KMP is set out below.

Measure Outcomes Description of performance outcome

Infrastructure fund Target 75%1 of Dexus’s infrastructure flagship funds outperformed the
performance vs benchmark benchmark, which met our target set at the start of the year.
Real Estate fund Nil 40%1 of Dexus’s real estate flagship funds outperformed their
performance vs benchmark benchmark. Of the funds that did not outperform benchmark,
the two listed REITs DXI and DXC (40% of real estate flagship

Overview
funds) still performed strongly overall and were within the Top
8 A-REIT 300 Index performers during the year. However, the
overall result relative to benchmarks was below the minimum
threshold set at the start of the year, resulting in no vesting
against this measure.
Development metrics Target Strong development leasing outcomes have been achieved,
particularly at DWPF's 33 Alfred Street, Sydney and the

Approach
Jandakot and Ravenhall Industrial estates held by Dexus and
funds. Opportunities have also been identified which have the
potential to deliver trading profits in FY25.
Finalisation of operating Outperform We successfully implemented our finance operating model
model changes on time and within budget, in line with the AMP Capital
platform integration. We made changes to restructure various
divisions to enhance business partnering and efficiencies in

Performance
our business.

1. Represents the number of funds that outperformed benchmark.

5.3 FY24 STI remuneration outcomes

The FY24 performance assessment resulted in the Board awarding the former CEO 44.8% of the maximum STI in FY24, which
is 20% lower than his FY23 outcome in dollar terms ($896,000 vs $1,120,000). The new Group CEO was awarded 57.6% of
maximum and other Executive KMP outcomes were 0.0% and 60.0% of maximum STI. As Ms Coakley stepped down from her

Governance
role on 17 July 2024 to pursue another opportunity with a competitor, she was not eligible to receive an FY24 STI under Dexus’s
leaver provisions.

% of % of
Actual FY24 maximum maximum
STI target STI max STI awarded % of target STI STI
Executive KMP % of FR % of FR $ STI awarded awarded forfeited
Ross Du Vernet1 80.0% 100.0% 608,484 72.0% 57.6% 42.4%

Directors’ report
Keir Barnes 80.0% 100.0% 510,000 75.0% 60.0% 40.0%
Deborah Coakley2 80.0% 100.0% 0 0.0% 0.0% 100.0%
Former KMP
Darren Steinberg 100.0% 125.0% 896,000 56.0% 44.8% 55.2%
1. As Ross Du Vernet was appointed to the Group CEO role on 28 March 2024, his FY24 STI has been apportioned between the period served in his
Group CEO and CIO roles.
2. In alignment with STI Plan rules, Deborah Coakley received an STI outcome of 0% following her resignation.
Financial report
Investor information

101
5.4 LTI awards which vested at the beginning of FY24
On 1 July 2023, the second tranche of the FY20 LTI plan and the first tranche of the FY21 LTI plan were eligible for vesting for
participating Executive KMP. Consistent with disclosures in last year’s Report, the LTI vesting outcomes are materially lower
than our pre-COVID LTI outcomes due to the adverse impact of COVID and a higher interest rate environment on AFFO
performance and ROCE performance.

FY20 LTI Vesting Outcome

Results of each performance measure within tranche 2 of the FY20 LTI plan over the four-year performance period were:

Minimum Maximum Group Vesting Amount

Performance measure Weighting (50% vests) (100% vests) result outcome forfeited
AFFO per security performance 50.0% 3.5% 4.5% 1.1% 0.0% 100.0%
Average ROCE 50.0% 8.5% 9.0% 8.8% 75.0% 25.0%
Vesting outcome 37.5% 62.5%

FY21 LTI Vesting Outcome

For the FY21 LTI, given AFFO performance targets were set lower than historical targets, only 25% of the AFFO performance portion
vests where minimum is achieved. ROCE continues to vest at 50% where minimum is achieved, consistent with prior years.
Results of each performance measure within tranche 1 of the FY21 LTI plan over the three-year performance period were:

Minimum
(25% (AFFO)/
50% (ROCE) Maximum Group Vesting Amount
Performance measure Weighting vests) (100% vests) result outcome forfeited
AFFO per security performance 50.0% 0.0% 3.0% 1.9% 72.0% 28.0%
Average ROCE 50.0% 7.0% 8.0% 8.6% 100.0% 0.0%
Vesting outcome 86.0% 1
14.0%

1. For the former EGM, Office, Mr Kevin George, 50% of his FY21 LTI was subject to a service component and the remaining 50% was assessed against
the evenly weighted measures of AFFO per security performance and ROCE. His LTI outcome for tranche 1 of the FY21 LTI was 93%.

102 Dexus 2024 Annual Report

5.5 LTI awards which vest in FY25
On 1 July 2024, the second tranche of the FY21 LTI plan and first tranche of the FY22 LTI plan were eligible for vesting for
participating KMP.

FY21 LTI Vesting Outcome

Results of each performance measure within tranche 2 of the FY21 LTI plan over the four-year performance period were:

Minimum
(25% (AFFO)/
50% (ROCE) Maximum Group Vesting Amount
Performance measure Weighting vests) (100% vests) result outcome forfeited
AFFO per security growth 50.0% 0.0% 3.0% 0.7% 42.4% 57.6%

Overview
Average ROCE 50.0% 7.0% 8.0% 7.5% 75.0% 25.0%
Vesting outcome 58.7%1 41.3%

FY22 LTI Vesting Outcome

Results of each performance measure within tranche 1 of the FY22 LTI plan over the three-year performance period were:

Approach
Minimum Maximum Group Vesting Amount
Performance measure Weighting (50% vests) (100% vests) result outcome forfeited
Average ROCE 40.0% 7.5% 9.0% 7.2% 0.0% 100.0%
ATSR 40.0% 6.0% 9.0% -10.3% 0.0% 100.0%
Strategic measures 20.0% N/A N/A 100.0% 100.0% 0.0%
Vesting outcome 20.0% 80.0%

Performance
1. For the former EGM, Office, Mr Kevin George, 50% of his FY21 LTI was subject to a service component and the remaining 50% was assessed against
the evenly weighted measures of AFFO per security performance and ROCE. His LTI outcome for tranche 2 of the FY21 LTI was 73.1%.

Given the LTI awards are granted in equity, the value of the vested awards for tranche 1 of the FY22 LTI are significantly lower
than their grant value, linking executive reward to the Security holder experience. For tranche 1 of the FY22 LTI, the vested
value for each participant was equivalent to 25% of their initial grant value, due to lower vesting outcomes and alignment with
security price performance.

Governance
Directors’ report
Financial report
Investor information

103
Following annual progress updates of performance against the strategic focus areas provided below, a detailed formal
assessment, for the end of the first three-year performance period, is now provided. The Board conducted a robust
assessment of management’s performance against strategic targets set at the start of the performance period and based on
these targets, it believes that management has executed on the multi-year targets set. Given the strategic measures comprise
20% of the LTI award, it is noted that this component forms a small portion of the overall FY22 award, with the majority being
assessed against financial measures. The Board note that while the LTI financial measures have not been met, management’s
performance against strategic objectives is positioning Dexus to enhance financial returns to Security holders beyond the
three year measurement period. The Board also note that while LTI strategic measures were met, some non-financial measures
within the STI scorecard were not met this period. The Board have sought to achieve balanced remuneration outcomes that
align with the Security holder experience.

Category Description Key achievements

Funds Management Diversification of – Since FY21, funds under management has grown by $12.0 billion or 28.2%
capital partners and and diversified further in terms of sector exposure and investor type, with
investor base, and infrastructure being added on to the platform as a result of the AMP
overall growth in Funds transaction and >6,500 registered unitholders added on to the platform
Management. – Dexus has raised $4.6 billion in new equity through DRPs across its
platform over this period
– Over this period Dexus opened its Singapore office to support the
growth of the funds management business in Asia. This aims to attract
international capital partners to invest in Australasian real assets
– During the period, Dexus successfully completed the acquisitions and
onboarding/integration of the APN Property Group and AMP Capital
funds platforms, both of which materially expanded and diversified the
funds business. These transactions involved substantial time and effort to
complete and integrate
– Following the acquisition of APN Property Group, Dexus established a
$1.3 billion joint venture to acquire Jandakot Airport industrial precinct
alongside Dexus Industria REIT (DXI) and later introduced Cbus Super into
the joint venture. The transaction was transformational for DXI, which was
part of the former APN platform, introducing new investors to its register
and enhancing the quality of its portfolio
– Dexus has successfully closed its first funds in the opportunistic and
infrastructure sectors during the period. During FY22, Dexus secured
the first investments and cornerstone investor for the first fund in its
opportunistic series, DREP1, which had been launched the prior year.
DREP1 raised $475 million of equity with circa 90% committed across the
real estate subsectors, including credit opportunities. Dexus has also
raised over $300 million in equity commitments at first close in DREP2,
which is expected to be materially larger than DREP1. During FY23,
Dexus launched its first infrastructure fund, the Wholesale Airport Fund,
and raised $185 million in equity, above its $130 million target
Transactions Strategic acquisitions – Since FY21, amidst a challenged transactions market, Dexus has divested
and divestments of $12.6 billion and acquired $7.6 billion for its platform portfolio, of which the
assets across the Dexus Dexus investment portfolio accounted for $6.9 billion of divestments and
investment portfolio. $3.1 billion of acquisitions
– Major Dexus divestments include office properties located at:
44 Market Street, 1 Margaret Street, 5 Martin Place, 383–395 and
309–321 Kent Street in Sydney, 130 George Street in Parramatta,
8 Nicholson Street in East Melbourne, Axxess Corporate Park in Mount
Waverley, as well as 12 Creek Street in Brisbane. As a result of these
divestments, the quality of Dexus’s investment portfolio has improved,
with the office portfolio weighting to Premium grade assets increasing
from 31% to 55%. The divestments have also enabled balance sheet
strength to be maintained despite the impact of material property
devaluations during the period, with pro forma gearing (look-through) of
32.0% at 30 June 2024 at the lower end of the 30–40% target range
– The divestments undertaken on behalf of fund clients across a number
of funds helped to maintain strong gearing levels despite the impact of
valuation declines during the period, as well as facilitating redemption
requests to meet client needs, an important part of Dexus’s positioning
as a leading fund manager
– As mentioned above, during the period Dexus successfully completed
the strategic corporate acquisitions of the APN Property Group and
AMP Capital funds platforms, both of which materially expanded
and diversified the funds business. It also completed the complex
$1.3 billion acquisition of Jandakot Airport industrial precinct, entering
the WA industrial market and creating a truly national offering for its
industrial customers

104 Dexus 2024 Annual Report

Category Description Key achievements
Developments Progressing the Group – Since FY21, Dexus has completed $4.8 billion of developments across the
development pipeline. platform, further enhancing the quality of the platform portfolio
– $1.3 billion developments were completed within the Dexus portfolio,
including 123 Albert Street, Brisbane, which is fully leased, 25 Martin
Place, Sydney and more than $500 million of industrial development
completions
– Dexus continues to progress city shaping developments Atlassian Sydney
and Waterfront Brisbane, as well as 150,400 square metres of industrial
development within its committed pipeline
Sustainability To be globally – External recognition for leadership includes one of only two ASX
recognised as a companies that fully met Climatework’s principals for credible net zero1

Overview
sustainability leader targets and action and being included in the Financial Times and Statista
in our industry. Asia-Pacific Climate Leaders list for 2024
– Dexus has achieved net zero1 emissions for building operations across the
group’s managed portfolio since FY22, eight years ahead of the original
target of 2030, and transitioned to 100% of electricity sourced from
on-site and off-site renewable sources
– Delivered improvements in sustainability performance of office operating

Approach
assets, measured through portfolio average NABERs ratings, with Waste
improving from 2.7 to 3.5 stars and Indoor Environment from 4.7 to 5.2 stars
– Delivered world leading sustainability outcomes in developments with
6 Star Green Star ratings for Horizon 3023, Ravenhall (industrial), Quay
Quarter Tower (office) and North Shore Health Hub (healthcare)
– The Dexus Sustainability strategy has been refreshed and embedded
within all funds and asset plans, and we have finalised the new

Performance
Development Sustainability Standard which will apply across all new
developments from FY25

5.6 One-off retention awards vested in FY24

In December 2023, 50% of the one-off retention awards granted to the CIO and CE, FM vested. These awards were granted
in December 2020 to secure our senior leadership talent during a volatile period for the Real Estate sector during COVID and
were successful in doing so during this period. The remaining 50% is due to vest in December 2024 for Ross Du Vernet, subject
to continued service. As Deborah Coakley stepped down from her role on 17 July 2024, her final tranche of the retention award

Governance
will be forfeited. No new one-off retention awards have been granted by the Board.
As these awards were granted in equity to provide alignment with Securityholders, the value of the awards vested are lower
than the original grant value, as shown in the table below. This reflects the link between the value of the awards and Security
holder experience.

Security Total Change Value of

Allocation price at value at in value Rights
price per vesting 1st vesting between vested (50%

Directors’ report
Right Total value date date grant and vested on
(14 December at grant (14 December (14 December 1st vesting 14 December
2020) date 2023) 2023) date 2023)
Ross Du Vernet $9.77 $1,500,000 $7.70 $1,181,796 (21%) $590,898
Deborah Coakley $9.77 $1,500,000 $7.70 $1,181,796 (21%) $590,898

The one-off retention award granted to the former CEO in 2021 was not due to vest in FY24. See section 7.2 for further details
on his outgoing arrangements.
Financial report
Investor information

1. In line with Climate Active Carbon Neutral Standard for Organisations, net emissions for the year ended 30 June 2024 include offsets
purchased and allocated for retirement during the year and up to the date of this report.

105
5.7 Actual remuneration based on performance and service through FY24
These values differ from the Executive statutory remuneration table (provided in section 10.1), which has been prepared in
accordance with statutory requirements and accounting standards. The table below is not measured in accordance with the
Australian Accounting Standards and has been provided to disclose the actual value of remuneration received in FY24.
Incentive awards have been calculated as follows:
– Deferred STI vested – The value of the deferred STI from prior years that vested on 1 July 2023 (being the number of Security
Rights that vested multiplied by the volume weighted average price (VWAP) for the five days prior to the vesting date)
– LTI vested – The value of Performance Rights that vested in relation to the LTI on 1 July 2023 (being the number of
Performance Rights that vested multiplied by the VWAP for the five days prior to the vesting date)
– One-off retention awards vested – The value of Rights vested on 14 December 2023 (being the number of Rights that
vested multiplied by the VWAP for the five days prior to the vesting date)

One-off
Super- Non STI Deferred retention
Base annuation monetary cash STI KTEP1 LTI awards
Executive salary benefits benefits payment vested vested vested vested Total
KMP ($) ($) ($) ($) ($) ($) ($) ($) ($)
Ross Du
Vernet 1,027,363 27,399 2,244 387,501 204,309 N/A 257,375 569,446 2,475,637
Keir Barnes 822,601 27,399 4,938 336,000 109,509 60,723 N/A N/A 1,361,170
Deborah
Coakley 872,601 27,399 8,374 350,000 201,090 N/A 244,705 569,446 2,273,615
Former KMP2
Darren
Steinberg3 1,164,412 20,287 11,658 840,000 421,522 N/A 1,098,162 N/A 3,556,041

1. The Key Talent Equity Plan (KTEP) is a mid-term incentive plan, granted to identified Executives before becoming KMP, which aims to retain
individuals identified as key talent and further align them to the interests of Dexus and its investors through an increased security holding. KTEP
participants are granted Performance Rights that do not receive distributions until vesting occurs. The plan vests in two tranches equally over a
two and three year period.
2. As Kevin George ceased employment as EGM, Office on 3 July 2023, he received salary for one day of work during FY24.
3. Darren Steinberg stepped down from his CEO role on 27 March 2024. His base salary, superannuation benefits and non-monetary benefits have
been pro-rated up to this date.

6. FY24 remuneration framework

6.1 Fixed remuneration strategy
The Group’s fixed remuneration strategy is to offer market competitive rates to attract and retain our experienced and
accomplished management team. Remuneration levels are set based on role size, complexity, scope and leadership
accountability. Dexus is committed to continue adhering to the principle of pay equity, which has achieved gender pay equity
across like-for-like roles. To determine fixed remuneration levels, Dexus benchmarks externally against ASX20–100 companies
for directly comparable roles, as well as other large ASX A-REIT peers for relevant roles.
In FY24, our CFO received a fixed remuneration increase from $800,000 to $850,000 following a market benchmarking exercise
of her ASX 20–100 peers. This adjustment is in line with our policy of paying market competitive remuneration to our Executives.
Mr Du Vernet’s remuneration was adjusted upon his promotion to the Group CEO role.
The FY24 fixed remuneration levels as at 30 June 2024 for full-year Executive KMP are set out below:

FY24
contractual
fixed
remuneration
Executive KMP ($)
Ross Du Vernet 1,500,000
Keir Barnes 850,000
Deborah Coakley 900,000

106 Dexus 2024 Annual Report

6.2 Short-Term Incentive (STI)
The STI plan is aligned to Security holder interests by:
– Encouraging Executives to achieve year-on-year performance improvement in a balanced and sustainable manner
aligned to our values
– Setting scorecard measures and targets aligned to our budgets and strategic goals for the financial year
– Mandatory deferral of 25% of each STI award into Security Rights deferred for one year, acting as a retention mechanism
and providing further alignment with Security holder interests

Group/Divisional Role-specific

Overview
AFFO, Fund performance vs benchmarks, employee Financial and non-financial measures pertaining
engagement and sustainability targets. to the individual’s specific role responsibilities.

Cash Annual cash payment (75%) Equity Deferred Security Rights (25%), deferred for one year

Approach
Group/Divisional and
role-specific performance Individual STI Outcome
Fixed Remuneration STI Target against financial (Capped at 100% of
and non-financial Target)
performance measures

Each Executive KMP is awarded an individual STI outcome between zero and 100% of their target.
Individual STI outcomes are based on a mix of Group/divisional performance measures and individual KPIs, subject to meeting a behavioural gateway.

Performance
The target STI opportunity for all Executive KMP is 80% of FR (excluding the former CEO), which is intentionally lower than our ASX 100 A-REIT peers.

The additional terms for the STI plan are outlined below.

Term Detail
Behavioural gateway For any STI award to pay out, a minimum standard of performance must be met by the individual
via the behavioural gateway which includes no material financial misstatement and no actions

Governance
inconsistent with the commercial or ethical standards expected by the Board or our stakeholders.
This seeks to align Executive KMP performance with Dexus’s values and expectations of Executives.
Scorecard assessment Group/Divisional performance is measured against a scorecard comprising of Group/divisional and
role-specific measures. See section 5.1 and 5.2 for disclosure on FY24 measures.
Allocation methodology Face value.
The number of Security Rights granted to Executive KMP for the deferred portion of the STI is
determined by dividing the deferred STI value by the VWAP of Dexus Securities 10 trading days

Directors’ report
either side of the first trading day of the new financial year.
Distribution rights For the portion of STI deferred as Security Rights, participants are entitled to the benefit of
distributions paid on the underlying Dexus Securities prior to vesting through the issue of additional
Security Rights at the time of vesting.
Leaver provisions If a participant is classified as a Bad Leaver (i.e. termination for cause, resignation or other
circumstances determined by the Board), all Security Rights will be forfeited and there will be no
entitlement to an STI award for the year in which employment ceases.
Where the participant is a Good Leaver, they will continue to be entitled to their Security Rights
from previous years which will be released at the end of the restriction period and to a pro-rated STI
Financial report

award for the part of the current financial year they are employed.
The Board may vary the classification of the individual’s leaver status, between cessation of
employment and the release of awards, for example where the individual accepts an offer of
employment with a competitor during the contractual non-compete period or misconduct events
are discovered after cessation of employment.
Malus provisions The Board has the discretion to adjust STI outcomes upward or downward, including to zero, where:
– There is any misalignment between the Executive KMP’s conduct or performance, such as in the
case of significant misconduct or material misstatement of performance
Investor information

– There have been unintended consequences or outcomes as a result of the Executive KMP’s
actions, including where the original performance outcomes are later found to have been
unrealised or not in line with the original performance assessment
– The STI outcomes are materially misaligned with the experience of Security holders

107
6.3 Long-Term Incentive (LTI)
The LTI plan is aligned to Security holders’ interests in the following ways:
– Encourages Executives to make sustainable business decisions by assessing financial and non-financial performance
– Aligns the financial interests of Executives participating in the LTI Plan with Security holders through exposure to
Dexus Securities

40% 40% 20%

Relative Total Security Holder Average Return on Contributed Strategic measures
Return (RTSR) Equity (ROCE) (financial and non-financial)

Equity – Performance Rights with – 50% three-year Performance Period – Subject to behavioural standards
allocation calculated at – 50% four-year Performance Period being met, performance hurdles
Face Value and continued employment during
the vesting period

40% RTSR

40% Average ROCE Individual LTI Outcome

Fixed Remuneration LTI Opportunity (Capped at 100% of
20% Strategic Opportunity)
(financial and non-financial)

Each Executive KMP is allocated an LTI opportunity subject to performance hurdles. The award may vest between 0% to 100% of the allocation
amount based on performance. LTI awards do not vest if performance targets are not met with no retesting permitted.
The maximum LTI opportunity for the new Group CEO is 200% of Fixed Remuneration, and for other Executive KMP is 120% of Fixed Remuneration
(excluding the former CEO).

The additional terms of the LTI plan are outlined below.

Term Detail
Performance RTSR (40%)
measures and RTSR has been selected to assess our ability to deliver Security holder returns relative to our industry
vesting schedule peers. RTSR is measured by assessing Dexus’s TSR against the TSR of each company in the ASX 200
A-REIT peer group, with distributions considered to be reinvested over the three and four-year
performance periods. Noting a level of correlation between A-REIT peers, the Board considers a
3% per annum return above the index over three and four years to constitute material outperformance
against our A-REIT peers.

Performance target Performance target

(50% of Rights tested (50% of Rights tested
Vesting schedule after three years) after four years) Vesting outcome
Below Threshold
Performance Below the Index Below the Index 0%
Threshold performance Equal to the Index Equal to the Index 50%
Between Threshold Between the Index Between the Index Straight-line
and Outperformance and Index + 9% and Index + 12% pro-rata vesting
Outperformance Index + 9% or greater Index + 12% or greater 100%

108 Dexus 2024 Annual Report

Term Detail
Performance Average ROCE (40%)
measures and Average ROCE has been selected to ensure that management has a regard for generating returns
vesting schedule on Security holder equity through a combination of improving earnings and capital management, in
continued accordance with our risk appetite.
ROCE is measured as simple average ROCE, calculated as a percentage, comprising AFFO together
with the net tangible asset impact from completed developments, divided by the weighted average
contributed equity during the period. ROCE is measured as the per annum average at the respective
conclusion of the three and four-year performance periods. The 7–10% ROCE target has been set
within a ‘through the cycle’ range to cover various stages of the property cycle. This aims to increase
consistency and simplify our annual approach to target setting, noting that this range will still be
regularly reviewed by the Board.

Overview
Vesting schedule Performance target Vesting outcome
Below Threshold Performance <7% p.a. 0%
Threshold performance 7% p.a. 50%
Between Threshold Straight-line pro-rata
and Outperformance 7–10% p.a. vesting

Approach
Outperformance >10% p.a. 100%
Strategic (financial and non-financial) (20%)
Strategic measures continue to comprise a portion of the LTI to ensure management remains focused
on Dexus’s long-term growth ambitions. These measures have been set in relation to the following
areas of focus:
– Funds Management: The diversification of capital partners and investors, and overall growth

Performance
in funds management
– Transactions: Strategic acquisitions and divestment of assets across the Dexus investment portfolio
– Developments: Progressing the Group development pipeline
– Sustainability: To be globally recognised as a sustainability leader in our industry

While some of these measures appear to overlap with some of our STI measures, the LTI’s strategic
measures are assessed over a multi-year timeframe in line with our long-term strategy as opposed
to over one year in the STI which is focused on the annual activities that underpin achievement of our

Governance
long-term strategy.
From FY25, strategic measures will no longer be part of the LTI.
Allocation Face value.
methodology
The number of Performance Rights granted is equal to the participant’s LTI opportunity (based on a
percentage of Fixed Remuneration) divided by the VWAP of Dexus Securities 10 trading days either
side of the first trading day of the new financial year.
Distribution rights No distribution rights on underlying Dexus Securities during the performance period prior to vesting.

Directors’ report
Leaver provisions If a participant is classified as a Bad Leaver (i.e. termination for cause, resignation or other
circumstances determined by the Board) all Performance Rights will be forfeited, subject to the Board’s
discretion to determine otherwise.
Where the participant is a Good Leaver, unvested Performance Rights will remain on-foot to be
tested at the end of the original performance period, subject to the Board’s discretion to determine
otherwise. The Board may vary the classification of the individual’s leaver status, between cessation
of employment and the vesting of awards, for example where the individual accepts an offer of
employment with a competitor during the contractual non-compete period or misconduct events are
discovered after cessation of employment.
Financial report

Malus provisions The Board has the discretion to adjust LTI outcomes upward or downward, including to zero, where:
– The LTI outcome does not reflect the Executive KMP’s performance or conduct, such as in the case
of significant misconduct or material misstatement of performance
– There have been unintended consequences or outcomes as a result of the Executive KMP’s actions,
including where the original performance outcomes are later found to be unrealised or not in line with
the original performance assessment
– The LTI outcome is materially misaligned with the experience of Security holders
Investor information

109
6.4 Changes to FY25 Executive KMP remuneration arrangements
As disclosed in the Chair’s Letter, to support Dexus’s ambition to be globally recognised as Australasia’s leading real asset
manager, changes to our LTI framework will be made in FY25 to align executive reward with our long-term horizons and the
delivery of Security holder returns.
The key changes are:
– Market priced Options will replace the use of Performance Rights. These Options will only have a value to Executives where
our security price is above the exercise price. The Options will be allocated at the fair value of the Options externally
calculated at that time using a recognised Option valuation methodology. The exercise price determination will be
disclosed in the 2024 Notice of Meeting
– The performance period will be extended to up to five years (from up to four years currently) as we seek to align executive
reward to a longer-term horizon. The Options will be eligible to vest in three equal tranches after three, four and five years.
Options may be exercised during the two years following vesting
– The Options will only vest when a performance gateway is met related to minimum level of annual TSR (security price growth
targets plus distributions), to align executive reward with the delivery of Security holder returns

The introduction of a new LTI plan aims to support Dexus’s ability to attract and retain talent from the infrastructure and
investments space to execute its strategy, while only providing rewards where Dexus security price grows over the relevant
performance period.
Further detail will be provided in the resolution to approve the grant of the Group CEO’s LTI in the 2024 Notice of Meeting.
In addition, the CFO’s target STI opportunity will increase from 80% of FR to 90% of FR in FY25, after benchmarking data
indicated that her target STI was at the lower end of her ASX 100 A-REIT peers. The Board has approved this greater STI
opportunity to enhance the competitiveness of her overall remuneration package.

7. Executive KMP contractual agreements

7.1 Terms of Executive KMP service agreements
Executive KMP service agreements detail the individual terms and conditions of employment applying to Executive KMP, with
the termination scenarios and other key employment terms detailed below.
New Group CEO Other Executive KMP
Employment An ongoing Executive Service Agreement. An ongoing Executive Service Agreement or
agreement individual contract.
Termination by the Six-month notice period. The Group may choose Three-month notice period. The Group may
Company or by to place the Group CEO on leave or make a choose to place the Executive on leave or make a
Mutual Agreement payment in lieu of notice at the Board’s discretion. payment in lieu of notice at the Board’s discretion.
Resignation by Six-month notice period. The Group may choose Three-month notice period. The Group may
the Executive to place the Group CEO on leave or make a choose to place the Executive on leave or make a
payment in lieu of notice at the Board’s discretion. payment in lieu of notice at the Board’s discretion.
Termination by the No notice or severance is payable. All unvested incentive awards are forfeited.
Group with Cause
Leaver Treatment If a participant is a Bad Leaver (i.e. termination for cause, resignation or other circumstances
of Incentives determined by the Board) all Security Rights granted under the STI plan and all unvested Performance
Rights under the LTI plan will be forfeited.
Where the participant is a Good Leaver, they will continue to be entitled to their Security Rights at the
end of the restriction period under the STI plan and any unvested Performance Rights granted under
the LTI plan will remain on-foot to be tested against the applicable performance conditions at the end
of the performance period.
The Board retains overarching discretion to determine an alternate treatment and to vary the
classification of the individual’s leaver status, between cessation of employment and the vesting/
release of awards.
Change of Currently, in a change of control scenario:
Control treatment
– Unvested LTI Performance Rights would vest and be settled in cash, provided the change of control
of Incentives
event occurs three months or more from the issue date of the Rights. If the change of control event
occurs less than three months from the issue date, all unvested Performance Rights granted in that
three-month period lapse
– For LTI grants from FY24 onwards, any vested but unexercised Performance Rights would be required
to be exercised during a period post-vesting, specified by the Board
– Unvested STI Security Rights would vest and be settled in cash

The rules of the new LTI Option plan are being finalised. Details regarding the treatment on change of
control will be disclosed in the 2024 Notice of AGM.

110 Dexus 2024 Annual Report

7.2 Outgoing arrangements of Darren Steinberg
Darren Steinberg stepped down from his CEO role on 27 March 2024 and no longer held a KMP role after this date, however
he will remain employed with the Group until December 2024 to assist Ross Du Vernet in completing a smooth Group CEO
transition. Given Mr Steinberg ceased employment via termination by mutual agreement, he will continue to be paid during this
period of gardening leave, noting he has a 12-month notice period. The Board considers this to be appropriate to ensure that
Mr Steinberg is not available to be engaged by our competitors during this period.
Any termination benefits provided to Mr Steinberg are to comply with the one times base salary cap limit as defined by the
Corporations Act 2001 (Cth).
As a Good Leaver, he received his statutory entitlements, and the treatment of his on-foot incentive awards are as follows:
– A full-year FY24 STI award will be received given he will be employed until December 2024. This will be received in cash (75%)
and deferred Security Rights (25%). He will not be eligible to receive an FY25 STI award
– Deferred STI Security Rights to remain restricted until the end of the normal restriction period

Overview
– Unvested LTI Performance Rights were left on-foot to be tested in the ordinary course. He will not be eligible to receive an
FY25 LTI grant; and
– The one-off Incentive Award granted to Mr Steinberg in June 2021 vested on 1 July2024. This award was designed to:
– Ensure Mr Steinberg continued to lead Dexus through the COVID-19 pandemic and to provide leadership stability over
the three-year period to allow for the eventual CEO succession process to commence
– Reward the CEO for the successful delivery of a number of key strategic initiatives over the three-year period

Approach
– The Board has determined that the strategic performance conditions of Mr Steinberg's one-off Incentive Award have been
satisfied, including successfully:
– Navigating the changes to the office market, with office occupancy remaining strong over this period despite the
challenging environment
– Maintaining a leading position in ESG and continuing to make significant progress on sustainability initiatives
– Diversifying our capital partners and investors and achieving overall growth in funds management. Total third party

Performance
funds under management has increased by 28.2% and Dexus’s sector exposure has increased to retail, infrastructure and
alternatives over the past three-years
– Completing the strategic acquisition and divestment of assets across the Dexus investment portfolio such as the
successful completion of the AMP Capital and Jandakot acquisitions and the execution of $6.9 billion of balance
sheet divestments
– Progressing the group development pipeline by completing $4.8 billion in developments over the past three years,
including $1.3 billion being completed within the Dexus portfolio
Gardening leave was granted for the period from March 2024 to December 2024. Mr Steinberg will receive his base salary
and entitlements during this leave period, totalling $1,238,840.

Governance
7.3 Outgoing arrangements of Kevin George
Kevin George ceased employment with the Company on 3 July 2023 and was determined to be a Good Leaver. He received
his statutory entitlements and his unvested LTI Performance Rights were left on-foot to be tested in the ordinary course. He
was not entitled to an FY24 STI award.

Directors’ report
Financial report
Investor information

111
8. Remuneration governance
The diagram below displays the interaction between the Board, Committees, management and external advisors, when
discussing remuneration strategy, framework and outcomes.

Risk
Board
Committee

People &
Remuneration Management
Committee*

Independent
Audit
external
Committee
advisors

Board Independent external advisors

Approves and has oversight of Dexus’s Remuneration Policy, NED and The Board’s independent remuneration advisor, SW Corporate,
Executive KMP remuneration and culture indicators. was engaged to provide benchmarking data, market practice
information and advice on the remuneration framework in FY24.
Risk Committee
Advises the PRC of material risk issues, behaviours and/or SW Corporate did not make any remuneration recommendations
compliance breaches. in FY24.

Two joint meetings are held each year with the PRC to review Risk Audit Committee
Culture frameworks, metrics, and audit information. Reviews the calculation of financial performance incentive plans.
Management
Proposes Executive appointments, succession plans, policies,
remuneration structures and remuneration outcomes to the PRC for
review and approval or recommendation to the Board.

* Members: Elana Rubin, The Hon. Nicola Roxon, Paula Dwyer and Warwick Negus.

112 Dexus 2024 Annual Report

8.1 People and Remuneration Committee Responsibilities
The People and Remuneration Committee (PRC) is responsible for developing the remuneration strategy, framework and
policies for NEDs, Executive KMP and the Executive Committee (ExCo) for Board approval.
The responsibilities of the PRC are outlined in the PRC’s Terms of Reference, available at www.dexus.com/boardcommittees,
which is reviewed and approved annually by the Board. The primary accountabilities of the PRC are:
– Reviewing and recommending to the Board for approval Dexus’s remuneration practices, which covers Executive KMP, other
ExCo members and all other Dexus employees
– Reviewing and approving the Group Scorecard, annual performance objectives and KPIs for the Group CEO, Executive KMP
and other ExCo members
– Recommending to the Board for approval Group CEO, Executive KMP and other ExCo members’ base salary increases and
annual incentive payments
– Reviewing, overseeing and approving aggregate base salary increases and annual incentive payments for all employees

Overview
(other than the Group CEO, Executive KMP and other ExCo members)
– Reviewing and recommending to the Board any Director fee changes, including proposals regarding the Directors’ fee cap
– Reviewing and recommending to the Board for approval the Code of Conduct and other key policies
– Reviewing and recommending to the Board for approval, the Diversity Principles, including identification of measurable
objectives for achieving diversity (including beyond gender) and progress towards those objectives
– Reviewing and approving processes and information on talent assessments, leadership development and

Approach
succession planning
– Reviewing processes and metrics for measuring culture and behaviours, including risk culture areas
– Overseeing general people and culture practices including the risk of gender or other bias in remuneration

8.2 Meetings
The PRC is required to meet at least four times per year. In FY24, the PRC met seven times to discuss and review remuneration,

Performance
and people and culture related matters.
Committee papers are provided to all PRC members prior to meetings to enable timely, considered and effective decision
making. The PRC may request additional information from management or external advisors where required.

8.3 Remuneration decision making

For remuneration concerning the Executive KMP, the new Group CEO's input was sought to help guide discussions and provide
input on performance throughout the year. The new Group CEO’s remuneration was considered separately to manage
conflicts of interest.

Governance
The PRC uses a range of inputs when assessing Executive KMP performance and determining remuneration outcomes:
– Financial performance measured using audited financial measures
– Management providing detailed examples of how non-financial outcomes have been achieved
– Demonstrated leadership of the Dexus values and behaviours
– External remuneration benchmarking and market practice provided by independent external advisors
– Under certain circumstances, the PRC and Board may adjust proposed remuneration outcomes for Executive KMP and the
ExCo members or require a forfeit of unvested Security Rights or Performance Rights issued under the Dexus LTI or STI Plans

Directors’ report
Financial report
Investor information

113
9. NED remuneration
NED fees are reviewed annually by the Committee using information from a variety of sources, including:
– Publicly available remuneration data from ASX-listed companies with similar market capitalisation and complexity
– Publicly available remuneration data from ASX 100 A-REITs
– Information supplied by external remuneration advisors (where required)

Other than the Chair, who receives a single base fee, NEDs receive a base fee plus additional fees for membership of
Board Committees. NEDs do not participate in incentive plans or receive any retirement benefits other than statutory
superannuation contributions.
The total fees paid to NEDs for the year ended 30 June 2024 remained within the aggregate fee pool of $2,500,000
per annum, which was approved by Security holders at the AGM in October 2017.

9.1 Fee structure

The Board fee structure (inclusive of statutory superannuation contributions) for FY24 is provided below. The only change to
FY24 fees was a 3% increase to the Board Chair fee from $475,000 to $490,000 following a market benchmarking exercise
against the ASX 20-100, to ensure ongoing market competitiveness to the median of our peers.

Chair Member
($) ($)
Base fees 490,0001 178,500
Risk Committee 35,700 17,850
Audit Committee 35,700 17,850
Nomination Committee2 N/A N/A
People and Remuneration Committee 35,700 17,850
Sustainability Committee 35,700 17,850
DWPL Board N/A 50,000
1. The Board Chair receives a single fee for service, including service on Board Committees.
2. No fees applied to the Board Nomination Committee in FY24.

9.2 Minimum security holding requirement

NEDs are expected to hold the equivalent of 100% of their base fees in Dexus Securities, to be acquired over five years from
their appointment date.

9.3 Security movements

The table below outlines the movement in NED security holdings for FY24.

Number of Number of
Securities held at Securities held at
NED 1 July 2023 Movement 30 June 2024
Warwick Negus1 50,000 10,000 60,000
Penny Bingham-Hall2 32,773 – ­­­32,773
Paula Dwyer3 25,000 – 25,000
Mark H Ford4 17,339 – 17,339
Peeyush Gupta5 – – –
Rhoda Phillippo6 2,500 7,500 10,000
The Hon. Nicola Roxon7 25,669 – 25,669
Elana Rubin AM8 18,348 9,480 27,828
1. Mr Warwick Negus was appointed to the Chair role on 27 October 2022 and has met the MSR.
2. Ms Penny Bingham-Hall was a Director until 28 March 2024. Her security holding is shown until 28 March 2024.
3. Ms Paula Dwyer was appointed as a Director on 1 February 2023 and has met the MSR.
4. Mr Mark Ford was appointed as Director on 1 November 2016 and has met the MSR.
5. Mr Peeyush Gupta was appointed as a Director on 24 April 2024 and is within the five-year timeframe to meet the MSR. His security holding on the
commencement date is shown.
6. Ms Rhoda Phillippo was appointed as a Director on 1 February 2023 and is within the five-year timeframe to meet the MSR.
7. The Hon. Nicola Roxon was appointed as a Director on 1 September 2017 and has met the MSR.
8. Ms Elana Rubin was appointed as a Director on 28 September 2022 and has met the MSR.

114 Dexus 2024 Annual Report

9.4 NED statutory remuneration
This summary of the benefits received by each NED for the year ended 30 June 2024 is prepared in accordance with the
Australian Accounting Standards.

Post-
employment
benefits Other
Short-term (super- long-term
benefits1 annuation) benefits Total
NED Year ($) ($) ($) ($)
Current

Overview
Warwick Negus FY24 471,734 18,266 – 490,000
FY23 373,074 17,062 – 390,136
Paula Dwyer FY24 209,054 22,996 – 232,050
FY23 71,346 7,491 – 78,837
Mark Ford FY24 254,651 27,399 – 282,050

Approach
FY23 256,758 25,292 – 282,050
Peeush Gupta1 FY24 32,877 3,616 – 36,493
FY23 – – – –
Rhoda Phillippo FY24 210,575 5,307 – 215,882
FY23 70,000 7,350 – 77,350

Performance
The Hon. Nicola Roxon FY24 232,050 – – 232,050
FY23 232,050 – – 232,050
Elana Rubin AM FY24 259,918 6,545 – 266,463
FY23 172,624 4,433 – 177,057
Former
Richard Sheppard FY24 – – – –

Governance
FY23 146,333 8,230 – 154,563
Patrick Allaway FY24 – – – –
FY23 129,231 13,569 – 142,800
Penny Bingham-Hall2 FY24 168,289 5,749 – 174,038
FY23 232,050 – – 232,050
Tonianne Dwyer FY24 – – – –

Directors’ report
FY23 83,548 8,230 – 91,778
Total FY24 1,839,148 89,878 – 1,929,026
FY23 1,767,014 91,657 – 1,858,671
1. Mr Peeyush Gupta was appointed as a Director on 24 April 2024. His statutory remuneration is shown from 24 April 2024.
2. Ms Bingham-Hall was a Director until 28 March 2024. Her statutory remuneration is shown until 28 March 2024.
Financial report
Investor information

115
10. Statutory disclosures
10.1 Statutory remuneration
The total remuneration paid to Executive KMP for FY23 and FY24 is calculated in accordance with the Australian
Accounting Standards.

Short-term benefits Long-term benefits Security-based benefits

Long Once-
Annual Non- Super- service Deferred off %
leave mone- annua- Termi- leave STI incentive Perform-
Executive Base STI move- tary tion nation move- plan LTI plan awards ance-
KMP Year salary award1 ment benefits2 benefits benefits ment3 accrual accrual accrual Total based

Current
Ross FY24 1,027,363 456,363 23,792 2,244 27,399 – 31,207 144,628 517,684 251,251 2,481,931 55.20%
Du Vernet
FY23 808,041 387,500 (6,268) 2,128 25,292 – 31,197 199,681 303,437 368,121 2,119,129 59.40%
Keir FY24 822,601 382,500 3,385 4,938 27,399 – 3,329 125,661 186,856 – 1,556,669 44.65%
Barnes
FY23 774,708 336,000 9,447 9,590 25,292 – – 135,437 182,512 – 1,472,986 0.00%
Deborah FY24 872,601 – (131) 8,374 27,399 – (354) 63,281 203,169 251,251 1,425,590 36.31%
Coakley4
FY23 808,041 350,000 (11,783) 11,038 25,292 – 26,751 191,684 297,769 368,121 2,066,913 58.42%
Former
Darren FY24 1,164,412 672,000 (160) 11,658 20,287 – (398) 370,456 786,405 1,034,314 4,058,974 70.54%
Steinberg5
FY23 1,574,708 840,000 (48,835) 16,741 25,292 – 25,629 416,529 1,031,221 1,031,490 4,912,775 67.56%
Kevin FY24 2,875 – (58) – 8,771 – (371) – – – 11,217 0.00%
George6
FY23 726,608 502,269 (16,855) 22,378 25,292 759,550 10,652 146,783 497,764 – 2,674,441 42.88%
Total FY24 3,889,852 1,510,863 26,828 27,214 111,255 – 33,413 704,026 1,694,114 1,536,816 9,534,381 57.12%
FY23 4,692,106 2,415,769 (74,294) 61,875 126,460 759,550 94,229 1,090,114 2,312,703 1,767,732 13,246,244 57.27%
1. STI award was approved by the Board of Directors on 8 August 2024.
2. Non-monetary benefits include any car parking, health insurance, relocation costs and FBT.
3. The accounting value of leave movements may be negative; for example, where an Executive’s annual leave balance decreases as a result of
taking more than the 20 days’ annual leave they accrue during the current year. Long service leave accrues from five years of service and the
accrual may seem high in the first year.
4. Deborah Coakley was not considered a good leaver and her unvested deferred STI Security Rights and LTI Performance Rights were forfeited
upon her departure. Accrual related to Deborah Coakley’s Deferred STI plan, LTI plan, and Once-off incentive awards continue to be recognised
at 30 June 2024, as notification of her departure was on 17 July 2024. Accrued expenses remaining in relation to unvested rights after 1 July 2024
will be reversed in FY25.
5. Darren Steinberg stepped down from his Group CEO role on 27 March 2024 and his remuneration is shown until this date. He was a Good
Leaver under the terms of the STI and LTI plan rules and as such, any unvested deferred STI Security Rights, LTI Performance Rights and
one‑off Performance Rights were left on-foot to vest in the ordinary course. The recognition of the unamortised fair value of unvested rights
was accelerated and fully recognised as at 27 March 2024. In addition to the above, Mr Steinberg is on gardening leave for the remainder of
his 12 months notice period from 27 March 2024 to 11 December 2024, where he will receive his fixed remuneration and other normal employee
entitlements (refer to section 7.2). During the gardening leave period, Mr Steinberg is available to provide reasonable assistance to the Board and
the new Group CEO.
6. Kevin George was a Good Leaver under the terms of the STI and LTI plan rules and as such, any unvested deferred STI Security Rights and
LTI Performance Rights were left on-foot to vest in the ordinary course. The recognition of the unamortised fair value of unvested rights was
accelerated and fully recognised as at 30 June 2023. There was no deferral component related to the FY23 STI.

116 Dexus 2024 Annual Report

10.2 Deferred STI and LTI awards which vested during FY24
The summary below outlines the number of Rights which vested under the Deferred STI and LTI plans during FY24. The vesting
date for the one-off retention award was 14 December 2023 and all other Rights was 1 July 2023. Deferred STI vested and the
LTI vesting outcomes are in section 5.4.

Number of Market value

Grant Rights which at vesting2
Executive KMP Plan name date Tranche vested1 ($)
Ross Du Vernet Deferred STI 29.11.21 2 12,382 96,729
16.11.22 1 13,771 107,580
LTI 12.12.19 2 7,847 61,301

Overview
22.12.20 1 25,099 196,074
One-off Retention Award 14.12.20 1 76,740 569,446
Keir Barnes Deferred STI 29.11.21 2 4,550 35,545
16.11.22 1 9,468 73,964
Other3 29.11.21 2 7,773 60,723

Approach
Deborah Coakley Deferred STI 29.11.21 2 11,970 93,510
16.11.22 1 13,771 107,580
LTI 12.12.19 2 7,062 55,169
22.12.20 1 24,262 189,536
One-off Retention Award 14.12.20 1 76,740 569,446

Performance
Former KMP
Darren Steinberg Deferred STI 29.11.21 2 26,416 206,363
16.11.22 1 27,542 215,159
LTI 12.12.19 2 33,481 261,555
22.12.20 1 107,092 836,607
1. All DSTI vested as this is only subject to a service condition and the LTI vesting outcome is detailed in section 5.4. All vested Rights are
exercised immediately.

Governance
2. Market value at vesting is the VWAP of DXS Securities for the five-day period before the vesting date.
3. Other refers to the Key Talent Equity Plan (KTEP) plan granted to the Executive before becoming KMP. The KTEP is a mid-term incentive plan which
aims to retain individuals identified as key talent and further align them to the interests of Dexus and its investors through an increased security
holding. KTEP participants are granted Performance Rights that do not receive distributions until vesting occurs. The plan vests in two tranches
equally over a two and three-year period.

10.3 Deferred STI in respect of FY23 STI

The below table details the number of Security Rights granted to Executive KMP on 20 December 2023 based on the 2023
performance period.

Directors’ report
Number Fair
of Security value per
Rights Performance Vesting
Executive KMP Granted right Date
Ross Du Vernet 16,308 $7.79 1 July 2024
Keir Barnes 14,141 $7.79 1 July 2024
Deborah Coakley 14,730 $7.79 1 July 2024
Financial report

Former KMP
Darren Steinberg 35,353 $7.79 1 July 2024
Investor information

117
10.4 Deferred STI in respect of FY24 STI
The below details the number of Security Rights to be granted to Executive KMP based on performance during FY24 under the
Deferred STI plan, using a VWAP of $6.54.

Number
Value of of Security
deferred STI Rights Vesting
Executive KMP ($) Granted Date
Ross Du Vernet 152,121 23,260 1 July 2025
Keir Barnes 127,500 19,495 1 July 2025
Deborah Coakley 1
– – 1 July 2025
Former KMP
Darren Steinberg 224,000 34,251 1 July 2025

1. Ms Deborah Coakley stepped down from her role as CE, FM on 17 July 2024, and was not eligible for FY24 STI.

10.5 LTI grant with respect to the FY24 LTI

The table below details the number of Performance Rights granted to Executive KMP on 20 December 2023 under the FY24
LTI plan.

Fair value Fair value

Number of VWAP Tranche 1 Tranche 2
Grant Performance value per (50%) (50%)
value as a Performance Rights Performance Vesting date Vesting date
Executive KMP % of FR measure granted Right2 1 July 20263 1 July 20273
Ross Du Vernet1 120% ROCE 79,933 7.92 $6.69 $6.30
RTSR 79,933 7.92 $1.14 $1.17
Strategic measures 39,967 7.92 $6.69 $6.30
Keir Barnes 120% ROCE 51,515 7.92 $6.69 $6.30
RTSR 51,515 7.92 $1.14 $1.17
Strategic measures 25,757 7.92 $6.69 $6.30
Deborah Coakley 120% ROCE 54,545 7.92 $6.69 $6.30
RTSR 54,545 7.92 $1.14 $1.17
Strategic measures 27,273 7.92 $6.69 $6.30
Former KMP
Darren Steinberg 150% ROCE 121,212 7.92 $6.69 $6.30
RTSR 121,212 7.92 $1.14 $1.17
Strategic measures 60,606 7.92 $6.69 $6.30
1. Ross Du Vernet’s LTI grant for the FY24 LTI Plan was received for his time served in the CIO role.
2. VWAP adopted to determine performance right allocation and is based on 10 trading days either side of the first trading day of the new financial year.
3. Fair value for the LTI reflects the grant date fair value in accordance with AASB 2 Share-based Payment. Valuations were provided by EY under
the Monte Carlo Simulation model.

118 Dexus 2024 Annual Report

10.6 Executive KMP unvested Rights outstanding
The table below shows the number of unvested Rights held by Executive KMP as at 30 June 2024 under the Deferred STI and
LTI plans. The STI and LTI awards in respect of which the elements below are deferred elements which were disclosed in prior
year Remuneration Reports. Minimum total value of grant is nil.

Maximum
Possible
Vesting Number Value yet
Executive KMP Plan name Grant date date1 Tranche of Rights to Vest
Ross Du Vernet Deferred STI 16.11.22 01.07.24 2 12,959 –
20.12.23 01.07.24 1 16,308 –
LTI 22.12.20 01.07.24 2 29,151 –

Overview
29.11.21 01.07.24 1 28,126 –
29.11.21 01.07.25 2 28,125 78,298
16.11.22 01.07.25 1 52,522 106,384
16.11.22 01.07.26 2 52,522 122,933
20.12.23 01.07.26 1 99,917 356,942

Approach
20.12.23 01.07.27 2 99,916 355,628
One-off Retention Award 14.12.20 14.12.24 2 76,740 69,580
Keir Barnes Deferred STI 16.11.22 01.07.24 2 8,909 –
20.12.23 01.07.24 1 14,141 –
LTI 29.11.21 01.07.24 1 19,336 –

Performance
29.11.21 01.07.25 2 19,336 53,830
16.11.22 01.07.25 1 52,522 106,384
16.11.22 01.07.26 2 52,522 122,933
20.12.23 01.07.26 1 64,394 230,040
20.12.23 01.07.27 2 64,393 229,000

Governance
Deborah Coakley2 Deferred STI 16.11.22 01.07.24 2 12,959 –
20.12.23 01.07.24 1 14,730 –
LTI 22.12.20 01.07.24 2 28,179 –
29.11.21 01.07.24 1 28,126 –
29.11.21 01.07.25 2 28,125 –
16.11.22 01.07.25 1 52,522 –

Directors’ report
16.11.22 01.07.26 2 52,522 –
20.12.23 01.07.26 1 68,182 –
20.12.23 01.07.27 2 68,181 –
One-off Retention Award 14.12.20 14.12.24 2 76,740 –
Financial report
Investor information

119
 Maximum
Possible
Grant Vesting Number Value yet
Former KMP Plan name date date1 Tranche of Rights to Vest
Darren Steinberg Deferred STI 16.11.22 01.07.24 2 25,919 –
20.12.23 01.07.24 1 35,353 –
LTI 22.12.20 01.07.24 2 124,380 –
29.11.21 01.07.24 1 112,503 –
29.11.21 01.07.25 2 112,502 –
16.11.22 01.07.25 1 131,305 –
16.11.22 01.07.26 2 131,305 –
20.12.23 01.07.26 1 151,515 –
20.12.23 01.07.27 2 151,515 –
One-off Retention Award 01.06.21 01.07.24 1 356,335 –
Kevin George Deferred STI 16.11.22 01.07.24 2 10,658 –
LTI 22.12.20 01.07.24 2 29,151 –
29.11.21 01.07.24 1 26,435 –
29.11.21 01.07.25 2 26,434 –
16.11.22 01.07.25 1 49,364 –
16.11.22 01.07.26 2 49,364 –
1. All awards are automatically converted to Securities upon vesting hence there is no expiry date.
2. As Ms Deborah Coakley stepped down from her role as CE, FM, unvested LTI and one-off Retention Awards at this date will be forfeited.

10.7 Equity investments – Security Rights and Performance Rights

The table below outlines the movement in Executive KMP’s Security Rights and Performance Rights for FY24, noting that all
vested Rights are automatically exercised.

Vested and
Held at Granted exercised Forfeited Held at
30 June during during during 30 June
Number of Rights 2023 the year3 the year the year 2024
Ross Du Vernet 430,853 218,348 135,839 17,076 496,286
Keir Barnes 173,346 143,998 21,791 – 295,553
Deborah Coakley 426,456 153,254 133,805 15,639 430,266
Former KMP
Darren Steinberg1 1,257,035 342,983 194,531 72,855 1,332,632
Kevin George2 263,072 2,063 58,694 15,035 191,406
1. As Darren Steinberg stepped down from the CEO role on 27 March 2024, his Security Rights and Performance Rights are shown until this date. The
Number of Rights disclosed on 30 June 2023 did not include Rights related to his one-off Retention Awards of 356,335 but is included in the Number
of Rights held at 30 June 2023.
2. As Kevin George ceased employment as EGM, Office on 3 July 2023, his Security Rights and Performance Rights are shown until this date.
3. Grants during the year include performance rights related to dividend equivalent for the Deferred STI plan. These rights immediately vest
when granted.

120 Dexus 2024 Annual Report

10.8 Equity investments – security holdings
The table below outlines the movement in Executive KMP’s security holdings for FY24. All Executive KMP currently meet or are
on-track to meet their minimum security holding requirement within five years from their date of appointment.

Vested and Acquired/

Held at Granted exercised (disposed) Held at
30 June during during during 30 June
Number of Securities 2023 the year the year the year 2024
Ross Du Vernet 154,413 – 135,839 (39,000) 251,252
Keir Barnes 17,579 – 21,791 – 39,370
Deborah Coakley 152,258 – 133,805 (2,150) 283,913
Former KMP

Overview
Darren Steinberg1 1,377,611 – 194,531 – 1,572,142
Kevin George 2
69,329 – 58,694 – 128,023
1. As Darren Steinberg stepped down from the Group CEO role on 27 March 2024, his security holding is shown until this date.
2. As Kevin George ceased employment as EGM, Office on 3 July 2023, his security holding is shown until this date.

10.9 Loans

Approach
No loans were provided to KMP or related parties.

10.10 Other transactions

There were no transactions involving an equity instrument (other than share based payment compensation) to KMP or
related parties.

Performance
10.11 Dexus Securities Trading Policy
The Securities Trading Policy provides guidance to Directors, Employees (including KMP), Contractors and Associates for
ongoing compliance with legal obligations relating to trading or investing in financial products managed by Dexus.
The Policy prohibits employees from trading in financial products while they are in possession of Inside Information (non-public
price sensitive information) and hedging their exposure to unvested Dexus Securities. Trading in Dexus Securities or related
products is only permitted with the permission of the Chair (for Directors and the Group CEO) or the Group CEO (for Other
Executive KMP).

Governance
The Group also has Conflict of Interest and Insider Trading policies in place which extend to family members and associates
of employees.

Directors’ report
Financial report
Investor information

121
Financial report
Contents
123 Directors’ Report
128 Auditor’s Independence Declaration
129 Consolidated Statement of Comprehensive Income
130 Consolidated Statement of Financial Position
131 Consolidated Statement of Changes in Equity
132 Consolidated Statement of Cash Flows
133 Notes to the Consolidated Financial Statements
137 Group performance
137 Note 1 – Operating segments
142 Note 2 – Property revenue and expenses
143 Note 3 – Management fees and other revenue
144 Note 4 – Management operations, corporate and administration expenses
144 Note 5 – Finance costs
144 Note 6 – Taxation
146 Note 7 – Earnings per unit
147 Note 8 – Distributions paid and payable
148 Investments
148 Note 9 – Investment properties
152 Note 10 – Investments accounted for using the equity method
157 Note 11 – Investments accounted for at fair value
158 Note 12 – Inventories
158 Note 13 – Non-current assets classified as held for sale
159 Capital and financial risk management and working capital
159 Note 14 – Capital and financial risk management
167 Note 15 – Interest bearing liabilities
169 Note 16 – Lease liabilities
170 Note 17 – Commitments and contingencies
170 Note 18 – Contributed equity
171 Note 19 – Reserves
172 Note 20 – Working capital
174 Other disclosures
174 Note 21 – Intangible assets
176 Note 22 – Business combination
177 Note 23 – Audit, taxation and transaction service fees
177 Note 24 – Cash flow information
178 Note 25 – Security-based payments
180 Note 26 – Related parties
181 Note 27 – Parent entity disclosures
181 Note 28 – Subsequent events
182 Directors’ Declaration
183 Independent Auditor’s Report

122 Dexus 2024 Annual Report

Directors’ report
Directors’ Report
The Directors of Dexus Funds Management Limited (DXFM) as Responsible Entity of Dexus Property Trust (DPT or the Trust)
present their Directors’ Report together with the Consolidated Financial Statements for the year ended 30 June 2024. The
Consolidated Financial Statements represents DPT and its consolidated entities, which are referred to as Dexus (DXS or the
Group).
The Trust, together with Dexus Operations Trust (DXO), form the Dexus stapled security.

Directors and Secretaries

Directors
The following persons were Directors of DXFM at all times during the year and to the date of this Directors’ Report, unless
otherwise stated:

Directors Appointed

Overview
Warwick Negus, BBus, MCom, SF Fin 1 February 2021
Penny Bingham-Hall, BA (Industrial Design), SF Fin, FAICD1 10 June 2014
Ross Du Vernet, BBus, MBA 28 March 2024
Paula Dwyer, BCom, FCA, SF Fin, FAICD 1 February 2023
Mark Ford, Dip. Tech (Commerce), CA, FAICD 1 November 2016
Peeyush Gupta AM, BA (CompSc), MBA (Finance), FAICD 24 April 2024

Approach
Rhoda Phillippo, MSc (Telecommunications Business), GAICD 1 February 2023
The Hon. Nicola Roxon, BA/LLB (Hons), GAICD 1 September 2017
Elana Rubin AM, BA (Hons), MA, SF Fin, FAICD 28 September 2022
Darren Steinberg, BEc, FAICD, FRICS, FAPI1 1 March 2012

1 Resigned, effective 28 March 2024.

Company Secretaries Scott Mahony BBus (Acc), Grad Dip (Business

Performance
The names and details of the Company Secretaries of Administration), MBA (eCommerce), Grad Dip (Applied
DXFM as at 30 June 2024 are as follows: Corporate Governance) FGIA, FCIS

Brett Cameron LLB/BA (Science and Technology), GAICD, Appointed: 5 February 2019
FGIA Scott is the Head of Governance of Dexus and is
Appointed: 31 October 2014 responsible for the development, implementation and
oversight of Dexus’s governance policies and practices
Brett is the General Counsel and a Company Secretary of and internal audit function. Prior to being appointed the
Dexus companies and is responsible for the legal function, Head of Governance in 2018, Scott had oversight of

Governance
company secretarial services and compliance and Dexus’s risk and compliance programs.
governance systems and practices across the Dexus
Group. Scott joined Dexus in October 2005 after two years with
Commonwealth Bank of Australia as a Senior Compliance
Prior to joining Dexus, Brett was Head of Legal for Manager. Prior to this, Scott worked for over 11 years for
Macquarie Real Estate (Asia) and has held senior legal Assure Services & Technology (part of AXA Asia Pacific)
positions at Macquarie Capital Funds in Hong Kong and where he held various management roles.
Minter Ellison in Sydney and Hong Kong. Brett has over 25
years' experience as inhouse counsel and in private

Directors’ report
practice in Australia and in Asia, where he worked on real
estate structuring and operations, funds management,
mergers and acquisitions, private equity and corporate
finance across a number of industries. Financial report
Investor information

123
123
Attendance of Directors at Board Meetings and Board Committee Meetings
The number of Directors’ meetings held during the year and each Director’s attendance at those meetings is set out in the
table below. The Directors met 13 times during the year, of which two were Board Sub-committee and special meetings.

Main meetings Main meetings Special meetings Special meetings

held attended held attended
Warwick Negus 11 11 2 2
Penny Bingham-Hall1 8 8 1 1
Ross Du Vernet2 3 3 — —
Paula Dwyer 11 11 1 1
Mark Ford 11 11 2 2
Peeyush Gupta AM3 3 3 — —
Rhoda Phillippo 11 9 1 1
The Hon. Nicola Roxon 11 11 1 1
Elana Rubin AM 11 11 1 1
Darren Steinberg1 8 8 2 2
1 Resigned, effective 28 March 2024.
2 Appointed, effective 28 March 2024.
3 Appointed, effective 24 April 2024.

Board Sub-committee and special meetings are held at a time to enable the maximum number of Directors to attend and are
generally held to consider specific items that cannot be held over to the next scheduled main meeting.
The table below shows Non-Executive Directors’ attendances at Board Committee meetings of which they were a member
during the year ended 30 June 2024. All Non-Executive Directors have a standing invitation to attend any or all Board
Committee meetings.

Board Audit Board Nomination Board People and Board Risk and Board
Committee and Governance Remuneration Compliance Sustainability
Committee Committee Committee Committee
Held Attended Held Attended Held Attended Held Attended Held Attended

Warwick Negus 4 4 3 3 7 7 5 5 4 4
Penny Bingham-Hall1 — — 2 2 5 5 — — 3 3
Paula Dwyer 4 4 3 3 1 1 4 4 — —
Mark Ford 4 4 3 3 — — 2 2 3 3
Peeyush Gupta AM2 1 1 1 1 — — — — 1 1
Rhoda Phillippo 3 3 3 3 — — 5 3 1 1
The Hon. Nicola Roxon — — 3 3 7 7 — — 4 4
Elana Rubin AM — — 3 3 7 7 5 5 — —
1 Resigned, effective 28 March 2024.
2 Appointed, effective 24 April 2024.

Directors’ relevant interests

The relevant interests of each Director in DXS stapled securities as at the date of this Directors’ Report are shown below:

Directors No. of securities

Warwick Negus 60,000
Penny Bingham-Hall1 32,773
Ross Du Vernet2 251,153
Paula Dwyer 25,000
Mark Ford 17,339
Peeyush Gupta AM3 —
Rhoda Phillippo 10,000
The Hon. Nicola Roxon4 25,669
Elana Rubin AM 27,828
Darren Steinberg5 2,904,774
1 Resigned, effective 28 March 2024.
2 Appointed, effective 28 March 2024.
3 Appointed, effective 24 April 2024.
4 Includes interests held directly and through Non-Executive Director (NED) Plan rights.
5 Resigned, effective 28 March 2024. Includes interests held directly and through performance rights (refer to note 25).

Operating and financial review

Information on the operations and financial position of the Group and its business strategies and prospects is set out on
pages 30 to 37 of the Annual Report and forms part of this Directors’ Report.
124 Dexus 2024 Annual Report
Remuneration Report
The Remuneration Report is set out on pages 90 to 121 of the Annual Report and forms part of this Directors’ Report.

Directors’ directorships in other listed entities

The following table sets out directorships of other ASX listed entities (unless otherwise stated), not including DXFM, held by the
Directors at any time in the three years immediately prior to the end of the year, and the period for which each directorship
was held.

Directors Company Date appointed

Warwick Negus Pengana Capital Group Limited (Chairman)1 1 June 2017
Bank of Queensland 22 September 2016
Washington H. Soul Pattison and Company Ltd2

Overview
1 November 2014
Penny Bingham-Hall3 BlueScope Steel Limited4 29 March 2011
Fortescue Metals Group Ltd 16 November 2016
Ross Du Vernet5 - -
Paula Dwyer AMCIL Limited 6 June 2023
ANZ Group Holdings Ltd6 1 April 2012

Approach
Mark Ford Kiwi Property Group Limited7 16 May 2011
Peeyush Gupta AM8 Liberty Group 1 July 2024
Link Administration Holdings Limited9 18 November 2016
Charter Hall Long Wale REIT10 6 June 2016
National Australia Bank Limited11 5 November 2014
Rhoda Phillippo APA Group 1 June 2020
The Hon. Nicola Roxon Lifestyle Communities Limited12 1 September 2017

Performance
Elana Rubin AM Telstra Corporation 14 February 2020
Darren Steinberg3 VGI Partners Limited13 12 May 2019

1 Resigned from the Board of Pengana Capital Group Limited, effective 1 April 2023.
2 Resigned from the Board of Washington H. Soul Pattison and Company Ltd, effective 31 December 2022.
3 Resigned from the Board of DXFM, effective 28 March 2024.
4 Resigned from the Board of BlueScope Steel Limited, effective 31 October 2022.
5 Appointed to the Board of DXFM, effective 28 March 2024.
6 Resigned from the Board of ANZ Group, effective 16 December 2021.
7 Resigned from the Board of Kiwi Property Group Limited, effective 28 June 2023 (listed for trading on the New Zealand Stock Exchange).

Governance
8 Appointed to the Board of DXFM, effective 24 April 2024.
9 Resigned from the Board of Link Administration Holdings Limited, effective 28 November 2023.
10 Resigned from the Board of Charter Hall Long WALE REIT, effective 24 April 2024.
11 Resigned from the Board of National Australia Bank Limited, effective 15 December 2023.
12 Resigned from the Board of Lifestyle Communities Limited, effective 31 December 2023.
13 Resigned from the Board of VGI Partners Limited, effective 3 June 2022.

Directors’ report
Financial report
Investor information

125
Principal activities Distributions
During the year, the principal activities of the Group were Distributions paid or payable by the Group for the year
to: ended 30 June 2024 were 48.0 cents per security which
amounted to $516.3 million (2023: 51.6 cents per security,
– Own, manage and develop high quality real assets $555.0 million) as outlined in note 8.
– Invest in Australian managed funds
– Manage real asset funds on behalf of third party DXFM fees
investors
Fees paid or payable by the Group to DXFM are
Significant changes in the nature of the Group’s activities eliminated on consolidation. Details are outlined in note 26
during the year are detailed below. and form part of this Directors’ Report.

Total value of Group assets Interests in DXS securities

The total value of the assets of the Group as at 30 June The movement in securities on issue in the Group during
2024 was $15,822.4 million (2023: $18,471.7 million). Details the year and the number of securities on issue as at
of the basis of this valuation are outlined in the Notes to 30 June 2024 are detailed in note 18 and form part of this
the Consolidated Financial Statements and form part of Directors’ Report.
this Directors’ Report.
Interests held in the Group by DXFM at the end of the
financial year is nil (2023: nil).
Likely developments and expected The DXFM Board has approved a grant of performance
results of operations rights of DXS stapled securities to eligible participants.
Details of the performance rights awarded during the
In the opinion of the Directors, disclosure of any further financial year are outlined in note 25. The Group did not
information regarding business strategies and future have any options on issue as at 30 June 2024 (2023: nil).
developments or results of the Group, other than the
information already outlined in this Directors’ Report or the
Consolidated Financial Statements accompanying this Environmental regulation
Directors’ Report would be unreasonably prejudicial to the
Group. The Board Risk and Compliance Committee and Board
Sustainability Committee oversee the policies, procedures
and systems that have been implemented to ensure the
Significant changes in the state of adequacy of Dexus’s environmental risk management
practices. The Committees are not aware of any material
affairs breaches of the Corporations Act or Regulatory Guide 68.
In 2022, Dexus announced the acquisition of the real The Group is subject to the reporting requirements of the
estate and domestic infrastructure equity business of National Greenhouse and Energy Reporting Act 2007
Collimate Capital Limited (Collimate Capital or AMP (NGER Act). The NGER Act requires the Group to report its
Capital) from AMP Limited ("AMP Capital transaction"). The annual greenhouse gas emissions and energy use.
transaction occurred under a two-stage completion
process. First Completion occurred on 24 March 2023 with The Group has implemented systems and processes for
consideration of $175.0 million paid on this date. Final the collection and calculation of the data required. The
Completion occurred on 30 November 2023 following the Group submitted its 2023 report to the Greenhouse and
satisfaction of the condition precedent relating to the Energy Data Officer on 30 October 2023 and will submit its
transfer of AMP’s ownership interest in China Life AMP 2024 report by 31 October 2024. During the 12 month
Asset Management (“CLAMP”) out of entities being period ending 30 June 2024, the Group complied with all
acquired by Dexus under the AMP Capital transaction. the relevant requirements as set out by the NGER Act.
Contingent consideration of $50.0 million was paid on this Information regarding the Group’s participation in the
date. In connection with the transaction, a co-owner has NGER program is available at: www.dexus.com/
taken steps seeking to compulsorily acquire an interest in sustainability
a property owned by a Dexus fund. The Dexus platform
intends to defend the action with resolution anticipated
by 30 June 2025. Indemnification and insurance
The insurance premium for a policy of insurance
Matters subsequent to the end of the indemnifying Directors, Officers and others (as defined in
financial year the relevant policy of insurance) is paid by DXFM’s
immediate parent entity, Dexus Holdings Pty Limited
Since the end of the year, the Directors are not aware of (DXH).
any matter or circumstance not otherwise dealt with in
Subject to specified exclusions, the liabilities insured are
their Directors’ Report or the Consolidated Financial
for costs that may be incurred in defending civil or criminal
Statements that has significantly or may significantly
proceedings that may be brought against Directors and
affect the operations of the Group, the results of those
Officers in their capacity as Directors and Officers of
operations, or state of the Group’s affairs in future
DXFM, its subsidiaries or such other entities, and other
financial periods.
payments arising from liabilities incurred by the Directors
and Officers in connection with such proceedings.

126 Dexus 2024 Annual Report

Indemnification and insurance (continued) Directors' authorisation
PricewaterhouseCoopers (PwC or the Auditor), is The Directors’ Report is made in accordance with a
indemnified out of the assets of the Group pursuant to the resolution of the Directors. The Consolidated Financial
Dexus Specific Terms of Business agreed for all Statements were authorised for issue by the Directors on
engagements with PwC, to the extent that the Group 19 August 2024.
inappropriately uses or discloses a report prepared by
PwC. The Auditor is not indemnified for the provision of
services where such an indemnification is prohibited by
the Corporations Act 2001.

Audit
Auditor

Overview
Warwick Negus Ross Du Vernet
PwC continues in office in accordance with section 327 of Chair Group CEO & Managing Director
the Corporations Act 2001. In accordance with section 19 August 2024 19 August 2024
324DAA of the Corporations Act 2001, the Group’s lead
auditor must be rotated every five years unless the Board
grants approval to extend the term for up to a further two
years.

Approach
Non-audit services
The Group may decide to employ the Auditor on
assignments, in addition to the statutory audit
engagement, where the Auditor’s expertise and
experience with the Group are important.
Details of the amounts paid or payable to the Auditor for

Performance
audit and non-audit services provided during the year are
set out in note 23.
The Board Audit Committee is satisfied that the provision
of non-audit services provided during the year by the
Auditor (or by another person or firm on the Auditor’s
behalf) is compatible with the standard of independence
for auditors imposed by the Corporations Act 2001.
The reasons for the Directors being satisfied are:

Governance
– All non-audit services have been reviewed by the Board
Audit Committee to ensure that they do not impact the
impartiality and objectivity of the Auditor; and
– None of the services undermine the general principles
relating to auditor independence as set out in APES 110
Code of Ethics for Professional Accountants.

The above Directors’ statements are in accordance with

the advice received from the Board Audit Committee.

Directors’ report
Auditor's Independence Declaration
A copy of the Auditor's Independence Declaration as
required under section 307C of the Corporations Act 2001
is set out on page 128 and forms part of this Directors'
Report.

Corporate governance
Financial report

DXFM’s Corporate Governance Statement is available at:

www.dexus.com/corporategovernance

Rounding of amounts and currency

As the Group is an entity of the kind referred to in ASIC
Corporations (Rounding in Financial/Directors' Reports)
Instrument 2016/191, the Directors have chosen to round
Investor information

amounts in this Directors' Report and the accompanying

Consolidated Financial Statements to the nearest
hundred thousand dollars, unless otherwise indicated. All
figures in this Directors' Report and the Consolidated
Financial Statements, except where otherwise stated, are
expressed in Australian dollars.
127
Auditor’s Independence Declaration

Auditor’s Independence Declaration

As lead auditor for the audit of Dexus Property Trust for the year ended 30 June 2024, I declare that to
the best of my knowledge and belief, there have been:

(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Dexus Property Trust and the entities it controlled during the period.

Marcus Laithwaite Sydney

Partner 19 August 2024
PricewaterhouseCoopers

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au
Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

128 Dexus 2024 Annual Report

Consolidated Statement of Comprehensive Income
Consolidated
For Statement
the year ended 30 June 2024 of Comprehensive Income
For the year ended 30 June 2024
2024 2023
Note $m $m
Revenue from ordinary activities
Property revenue 2 323.9 416.3
Development revenue 12 135.7 113.8
Management fees and other revenue 3 421.3 307.6
Interest revenue 21.3 10.7
Total revenue from ordinary activities 902.2 848.4
Net fair value gain of foreign currency interest bearing liabilities — 75.6
Other income 21.7 12.8
Total income 923.9 936.8

Overview
Expenses
Property expenses 2 (116.3) (137.0)
Development costs 12 (117.7) (61.0)
Management operations, corporate and administration expenses 4 (322.7) (222.4)
Finance costs 5 (169.3) (174.1)
Impairment of intangibles 21 — (60.0)

Approach
Impairment of investments accounted for using the equity method 10 (0.7) (3.2)
Share of net loss of investments accounted for using the equity method 10 (585.6) (213.4)
Net fair value loss of derivatives 14(c) (2.7) (67.6)
Net foreign exchange loss (0.2) —
Net fair value loss of investment properties 9 (796.9) (623.5)
Net fair value loss of investments accounted for at fair value 11 (302.6) (28.3)
Net fair value loss of foreign currency interest bearing liabilities (14.4) —

Performance
Transaction costs (88.3) (87.8)
Total expenses (2,517.4) (1,678.3)
Loss for the year before tax (1,593.5) (741.5)
Income tax benefit/(expense) 6(a) 9.7 (11.2)
Loss for the year (1,583.8) (752.7)

Other comprehensive (loss)/income:

Items that may be reclassified to profit or loss

Governance
Changes in the fair value of cash flow hedges 19 (4.8) 1.7
Changes in the foreign currency basis spread reserve 19 (0.3) 0.2
Exchange differences on translation of foreign operations 19 (0.2) —
Total comprehensive loss for the year (1,589.1) (750.8)

Loss for the year attributable to:

Unitholders of the parent entity (1,578.9) (685.2)
Unitholders of other stapled entity (non-controlling interests) (4.9) (67.5)

Directors’ report
Loss for the year (1,583.8) (752.7)

Total comprehensive loss for the year attributable to:

Unitholders of the parent entity (1,584.0) (683.3)
Unitholders of other stapled entity (non-controlling interests) (5.1) (67.5)
Total comprehensive loss for the year (1,589.1) (750.8)

Cents Cents
Earnings per unit on profit/(loss) attributable to unitholders of the Trust (parent entity)
Financial report

Basic earnings per unit 7 (146.80) (63.71)

Diluted earnings per unit 7 (146.80) (63.71)

Earnings per stapled security on profit/(loss) attributable to stapled security holders

Basic earnings per security 7 (147.25) (69.98)
Diluted earnings per security 7 (147.25) (69.98)

The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Investor information

129 129
Consolidated Statement of Financial Position
Consolidated Statement of Financial Position
As at 30 June 2024
As at 30 June 2024

2024 2023
Note $m $m
Current assets
Cash and cash equivalents 20(a) 54.0 123.9
Receivables 20(b) 218.6 151.8
Non-current assets classified as held for sale 13 104.2 1,354.0
Inventories 12 60.2 30.6
Derivative financial instruments 14(c) 128.5 98.6
Current tax receivable 6(c) 20.1 11.2
Other 20(c) 76.3 103.8
Total current assets 661.9 1,873.9
Non-current assets
Investment properties 9 5,117.9 6,038.1
Plant and equipment 9.9 11.3
Right-of-use assets 82.0 6.5
Investments accounted for using the equity method 10 8,605.5 9,050.0
Investments accounted for at fair value 11 353.6 431.9
Derivative financial instruments 14(c) 321.1 385.5
Deferred tax assets 0.7 —
Intangible assets 21 667.8 670.9
Other 2.0 3.6
Total non-current assets 15,160.5 16,597.8
Total assets 15,822.4 18,471.7
Current liabilities
Payables 20(d) 194.8 197.0
Contingent consideration 22 — 50.0
Interest bearing liabilities 15 163.7 381.8
Lease liabilities 16 11.8 2.1
Derivative financial instruments 14(c) 21.7 32.6
Provisions 20(e) 305.4 311.9
Loans with related parties 26 2.3 21.5
Other — 68.2
Total current liabilities 699.7 1,065.1
Non-current liabilities
Interest bearing liabilities 15 4,745.9 4,927.9
Lease liabilities 16 80.8 12.5
Derivative financial instruments 14(c) 34.1 53.4
Deferred tax liabilities 6(f) 89.3 117.9
Provisions 20(e) 7.8 10.8
Other 3 — 19.8
Total non-current liabilities 4,957.9 5,142.3
Total liabilities 5,657.6 6,207.4
Net assets 10,164.8 12,264.3
Equity
Equity attributable to unitholders of the Trust (parent entity)
Contributed equity 18 7,048.0 7,048.0
Reserves 19 14.1 19.2
Retained profits 2,914.0 4,969.2
Parent entity unitholders' interest 9,976.1 12,036.4
Equity attributable to unitholders of other stapled entity
Contributed equity 18 107.1 107.1
Reserves 19 (0.3) 36.7
Retained profits 81.9 84.1
Other stapled entity unitholders' interest 188.7 227.9
Total equity 10,164.8 12,264.3

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

130 Dexus 2024 Annual Report 130

Consolidated Statement of Changes in Equity
Consolidated
For Statement
the year ended 30 June 2024 of Changes in Equity
For the year ended 30 June 2024

Equity attributable to unitholders of the Trust Equity attributable to unitholders of other

(parent entity) stapled entity
Con- Con-
tributed Retained tributed Retained Total
equity Reserves profits Total equity Reserves profits Total equity
Note $m $m $m $m $m $m $m $m $m
Opening balance as at
7,048.0 17.3 6,159.4 13,224.7 107.1 33.8 201.6 342.5 13,567.2
1 July 2022
Net profit/(loss) for the
— — (685.2) (685.2) — — (67.5) (67.5) (752.7)
year
Other comprehensive
income/(loss) for the 19 — 1.9 — 1.9 — — — — 1.9
year

Overview
Total comprehensive
income/(loss) for the — 1.9 (685.2) (683.3) — — (67.5) (67.5) (750.8)
year
Transactions with
owners in their capacity
as owners
Movement of securities,
19 — — — — — (7.5) — (7.5) (7.5)
net of transaction costs

Approach
Security-based
19 — — — — — 10.4 — 10.4 10.4
payments expense
Distributions paid or
8 — — (505.0) (505.0) — — (50.0) (50.0) (555.0)
provided for
Total transactions with
owners in their capacity — — (505.0) (505.0) — 2.9 (50.0) (47.1) (552.1)
as owners

Performance
Closing balance as at
7,048.0 19.2 4,969.2 12,036.4 107.1 36.7 84.1 227.9 12,264.3
30 June 2023
Opening balance as at
7,048.0 19.2 4,969.2 12,036.4 107.1 36.7 84.1 227.9 12,264.3
1 July 2023
Net profit/(loss) for the
— — (1,578.9) (1,578.9) — — (4.9) (4.9) (1,583.8)
year
Other comprehensive
income/(loss) for the 19 — (5.1) — (5.1) — (0.2) — (0.2) (5.3)
year

Governance
Total comprehensive
income/(loss) for the — (5.1) (1,578.9) (1,584.0) — (0.2) (4.9) (5.1) (1,589.1)
year
Transfer (from)/to
— — — — — (42.7) 42.7 — —
retained profits
Transactions with
owners in their capacity
as owners
Movement of securities,
19 — — — — — (11.6) — (11.6) (11.6)
net of transaction costs

Directors’ report
Security-based
19 — — — — — 17.5 — 17.5 17.5
payments expense
Distributions paid or
8 — — (476.3) (476.3) — — (40.0) (40.0) (516.3)
provided for
Total transactions with
owners in their capacity — — (476.3) (476.3) — 5.9 (40.0) (34.1) (510.4)
as owners
Closing balance as at
7,048.0 14.1 2,914.0 9,976.1 107.1 (0.3) 81.9 188.7 10,164.8
30 June 2024
Financial report

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
Investor information

131
131
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
For the year ended 30 June 2024
For the year ended 30 June 2024

2024 2023
Note $m $m
Cash flows from operating activities
Receipts in the course of operations (inclusive of GST) 882.1 940.1
Payments in the course of operations (inclusive of GST) (588.7) (452.8)
Interest received 21.2 10.5
Finance costs paid (173.1) (177.0)
Distributions received 533.7 404.0
Income and withholding taxes paid (28.4) (56.8)
Proceeds from sale of property classified as inventory and development services 71.5 113.8
Payments for property classified as inventory and development services (104.8) (10.9)
Net cash inflow/(outflow) from operating activities 24 613.5 770.9

Cash flows from investing activities

Proceeds from sale of investment properties 1,232.8 688.5
Proceeds from sale of investments accounted for using the equity method 12.8 68.5
Proceeds from sale of investments accounted for at fair value — 130.1
Payments for capital expenditure on investment properties (145.7) (218.8)
Payments for investments accounted for using the equity method (569.8) (513.0)
Payments for investments accounted for at fair value (167.4) (402.3)
Payments for acquisition of investment properties — (134.4)
Proceeds from return of capital from investments accounted for using the equity
2.5 —
method
Payments for plant and equipment (1.3) (4.3)
Payments for intangibles (1.1) (3.7)
Payment for acquisition of subsidiary, net of cash acquired (51.8) (190.4)
Net cash inflow/(outflow) from investing activities 311.0 (579.8)

Cash flows from financing activities

Borrowings provided to related parties (0.2) (0.9)
Repayment of loan with related party — (33.1)
Proceeds from borrowings 3,660.8 7,811.5
Repayment of borrowings (4,098.4) (7,392.5)
Proceeds from loan with related party — 55.5
Payment of lease liabilities (4.1) (3.3)
Purchase of securities for security-based payments plans (11.6) (7.5)
Distributions paid to security holders (540.9) (572.2)
Net cash inflow/(outflow) from financing activities (994.4) (142.5)

Net increase/(decrease) in cash and cash equivalents (69.9) 48.6

Cash and cash equivalents at the beginning of the year 123.9 75.3
Cash and cash equivalents at the end of the year 54.0 123.9

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

132 Dexus 2024 Annual Report 132

Notes to
to the
theConsolidated
Consolidated Financial Statements
Financial Statements
In this section

This section sets out the basis upon which the Group’s Consolidated Financial Statements are prepared.

Specific accounting policies are described in their respective Notes to the Consolidated Financial Statements.

Basis of preparation Business combinations are accounted for using the

acquisition method. The cost of an acquisition is measured
These Consolidated Financial Statements are general as the aggregate of the consideration transferred, which
purpose financial statements which have been prepared is measured at fair value at the acquisition date and
in accordance with the requirements of the Constitutions adjusted for the amount of any non-controlling interests in
of the entities within the Group, the Corporations Act the acquiree. Identifiable assets acquired and liabilities
2001, Australian Accounting Standards issued by the

Overview
and contingent liabilities assumed in a business
Australian Accounting Standards Board and the combination are initially measured at their fair values at
International Financial Reporting Standards adopted by the acquisition date. The Group recognises any non-
the International Accounting Standards Board. controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at
Unless otherwise stated, the Consolidated Financial
the non-controlling interest’s proportionate share of the
Statements have been prepared using consistent
net identifiable assets of the acquired entity. Acquisition-
accounting policies in line with those of the previous
related costs are expensed as incurred.

Approach
financial year and corresponding interim reporting period.
Where required, comparative information has been Goodwill is the sum of the consideration transferred, the
restated for consistency with the current year’s amount of any non-controlling interest in the acquired
presentation. entity, and the acquisition date fair value of any previous
equity interest in the acquired entity, less the fair value of
The Consolidated Financial Statements are presented in
the net identifiable assets acquired. If those amounts are
Australian dollars, with all values rounded to the nearest
less than the fair value of the net identifiable assets of the
hundred thousand dollars in accordance with ASIC
business acquired, the difference is recognised directly in

Performance
Corporations (Rounding in Financial/Directors’ Reports)
profit or loss as a bargain purchase.
Instrument 2016/191, unless otherwise stated.
Contingent consideration is classified either as equity or a
The Group is a for-profit entity for the purpose of
financial liability. Amounts classified as a financial liability
preparing the Consolidated Financial Statements.
are subsequently remeasured at fair value with changes in
The Consolidated Financial Statements have been fair value recognised in profit or loss.
prepared on a going concern basis using the historical
Where the business combination is achieved in stages, the
cost convention, except for the following which are stated
acquisition date carrying value of the acquirer’s previously
at their fair value:

Governance
held equity interest in the acquiree is remeasured at fair
– Investment properties; value at the acquisition date. Any gains or losses arising
– Investment properties within equity accounted from such remeasurement are recognised in profit or loss.
investments; After initial recognition, goodwill is measured at cost less
– Investments accounted for at fair value; any accumulated impairment losses and is tested for
– Non-current assets classified as held for sale; impairment annually. Where a business combination is
incomplete by the end of the reporting period in which the
– Derivative financial instruments; and combination occurs, the acquirer shall report in its
– Security-based payments. financial statements provisional amounts for the items for

Directors’ report
which the accounting is incomplete. During the
Significant change from the previous annual measurement period, the acquirer shall retrospectively
adjust the provisional amounts recognised at the
financial report
acquisition date to reflect new information obtained
During the year, the Group completed its acquisition of about facts and circumstances that existed as of the
Collimate Capital’s real estate and domestic acquisition date and, if known, would have affected the
infrastructure equity business from AMP Limited. Details of measurement of the amounts recognised as of that date.
the acquisition are outlined in note 22. The accounting
policy for business combinations and related goodwill is
outlined below.
Financial report
Investor information

133
133
Critical accounting estimates The Group is finalising its assessment of the impacts of
The preparation of the Consolidated Financial Statements these amendments and will adopt the amendments from 1
requires the use of certain critical accounting estimates July 2024. It is expected that the Group’s exchangeable
and management to exercise its judgement in the process notes (2024: $462.0 million) will be reclassified from a non-
of applying the Group’s accounting policies. current liability to a current liability. The reclassification is
not expected to impact the Group’s covenant
In the process of applying the Group’s accounting calculations.
policies, management has considered the current
economic environment including the impacts of persistent
inflation and elevated interest rates and the estimates Climate change
and assumptions used for the measurement of items such On 26 June 2023, the International Sustainability
as: Standards Board (ISSB) released new sustainability
– Investment properties; standards, IFRS S1 General Requirements for Disclosure of
Sustainability-related Financial Information and IFRS S2
– Investment properties within equity accounted
Climate-related Disclosures. Subsequently, the Australian
investments;
Accounting Standards Board (AASB) issued Exposure Draft
– Investments accounted for at fair value; “Australian Sustainability Reporting Standards –
– Non-current assets classified as held for sale; Disclosure of Climate-related Financial Information” and
– Derivative financial instruments; on 27 March 2024, the “Treasury Laws Amendment
(Financial Market Infrastructure and Other Measures) Bill
– Security-based payments; 2024” was introduced into Parliament. Under the
– Inventories; proposed Bill, the new reporting requirements will be
– Intangible assets; and mandatory for the year ended 30 June 2026 for the
Group. The Group is continuing to develop its assessment
– Performance fees.
of the impact of climate change in line with emerging
No other key assumptions concerning the future or other industry and regulatory guidance on its Consolidated
estimation uncertainty at the end of the reporting period Financial Statements. Refer to specific considerations
could have a significant risk of causing material relating to Investment Properties within note 9.
adjustments to the Consolidated Financial Statements.
Principles of consolidation
Net current asset deficiency
These Consolidated Financial Statements incorporate the
As at 30 June 2024, the Group had a net current asset
assets, liabilities and results of all subsidiaries as at
deficiency of $37.8 million (2023: surplus of $808.8 million).
30 June 2024.
This is primarily due to interest bearing liabilities of $163.7
million due within 12 months (2023: $381.8 million) and a
distribution provision of $229.2 million (2023: $253.8 million). a. Controlled entities

Capital risk management is managed holistically through Subsidiaries are all entities over which the Group has
a centralised treasury function. The Group has in place control. The Group controls an entity when the Group is
both external and internal funding arrangements to exposed to, or has rights to, variable returns from its
support the cash flow requirements of the Group, involvement with the entity and has the ability to affect
including undrawn facilities of $2,462.0 million those returns through its power to direct the activities of
(2023: $2,409.5 million). the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group. They are
In determining the basis of preparation of the deconsolidated from the date that control ceases.
Consolidated Financial Statements, the Directors of the
Responsible Entity have taken into consideration the
b. Joint arrangements
unutilised facilities available to the Group. As such, the
Group is a going concern and the Consolidated Financial Investments in joint arrangements are classified as either
Statements have been prepared on that basis. joint operations or joint ventures depending on the
contractual rights and obligations each investor has,
Accounting standards issued but not yet rather than the legal structure of the joint arrangement.
effective
Amendments to AASB 101 Presentation of Financial Joint operations
Statements (AASB 101) apply retrospectively for annual
reporting periods beginning on or after 1 July 2024. Where assets are held directly as tenants in common, the
Group’s proportionate share of revenues, expenses,
The amendments clarify certain requirements for assets and liabilities are included in their respective items
determining whether a liability should be classified as of the Consolidated Statement of Financial Position and
current or non-current, depending on the rights that exist Consolidated Statement of Comprehensive Income.
at the end of the reporting period. The amendments
specify how entities should classify a convertible debt
Joint ventures
liability that can be settled by an entity’s own equity
instruments at the option of the counterparty and require Investments in joint ventures are accounted for using the
conversion options classified as liabilities to be assessed equity method. Under this method, the Group’s share of
when determining the appropriate current and non- the joint ventures’ post-acquisition profits or losses are
current classification. recognised in the Consolidated Statement of
Comprehensive Income and distributions received from
joint ventures are recognised as a reduction of the
carrying amount of the investment.

134 Dexus 2024 Annual Report

c. Employee share trust
The Group has formed a trust to administer the Group’s
security-based employee benefits. The employee share
trust is consolidated as the substance of the relationship is
that the trust is controlled by the Group.

Foreign currency
The Consolidated Financial Statements are presented in
Australian dollars.
Foreign currency transactions are translated into the
Australian dollars functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign

Overview
exchange gains and losses resulting from the settlement
of such transactions and from the translation at period
end exchange rates of financial assets and liabilities
denominated in foreign currencies are recognised in the
Consolidated Statement of Comprehensive Income,
except for qualifying cash flow hedges, which are
deferred to equity.

Approach
On consolidation, the assets, liabilities, income and
expenses of foreign operations are translated into
Australian dollars using the following applicable exchange
rates:
– Income and expenses: Average exchange rate
– Assets and liabilities: Reporting date

Performance
– Equity: Historical date
– Reserves: Reporting date

Foreign exchange differences resulting from translation of

foreign operations are initially recognised in the foreign
currency translation reserve and subsequently transferred
to the Consolidated Statement of Comprehensive Income
on disposal of the foreign operation.

Governance
Goods and services tax
Revenues, expenses and capital assets are recognised
net of any amount of Australian Goods and Services Tax
(GST), except where the amount of GST incurred is not
recoverable. In these circumstances the GST is recognised
as part of the cost of acquisition of the asset or as part of
the expense. Cash flows are included in the Consolidated

Directors’ report
Statement of Cash Flows on a gross basis. The GST
component of cash flows arising from investing and
financing activities that is recoverable from or payable to
the Australian Taxation Office is classified as cash flows
from operating activities.
Financial report
Investor information

135
Notes to the Consolidated Financial Statements
The Notes include information which is required to understand the Consolidated Financial Statements and is material and
relevant to the operations, financial position and performance of the Group.
The Notes are organised into the following sections:

Capital and financial risk

management and working
Group performance Investments capital Other disclosures
1. Operating segments 9. Investment properties 14. Capital and financial risk 21. Intangible assets
management
2. Property revenue and 10. Investments accounted 15. Interest bearing liabilities 22. Business combination
expenses for using the equity
method
3. Management fees and 11. Investments accounted 16. Lease liabilities 23. Audit, taxation and
other revenue for at fair value transaction service fees
4. Management operations, 12. Inventories 17. Commitments and 24. Cash flow information
corporate and contingencies
administration expenses
5. Finance costs 13. Non-current assets 18. Contributed equity 25. Security-based payments
classified as held for sale
6. Taxation 19. Reserves 26. Related parties
7. Earnings per unit 20. Working capital 27. Parent entity disclosures
8. Distributions paid and 28. Subsequent events
payable

136 Dexus 2024 Annual Report

Group performance
Group performance
In this section
This section explains the results and performance of the Group.
It provides additional information about those individual line items in the Consolidated Financial Statements that the
Directors consider most relevant in the context of the operations of the Group, including:
– Operating segments
– Property revenue and expenses
– Management fees and other revenue
– Management operations, corporate and administration expenses
– Finance costs
– Taxation

Overview
– Earnings per unit
– Distributions paid and payable

Note 1 Operating segments

Description of segments

Approach
The Group’s operating segments have been identified based on the sectors analysed within the management reports in order
to monitor performance across the Group and to appropriately allocate resources. Refer to the table below for a brief
description of the Group’s operating segments.

Segment Description
Office Domestic office space with any associated retail space; as well as car parks and office
developments owned directly or in joint ventures or partnerships.

Performance
Industrial Domestic industrial properties, industrial estates and industrial developments owned
directly or in joint ventures or partnerships.
Co-investments Distribution income earned from investments in pooled real asset funds and funds
invested in securities.
Property management Property management services for third party clients and owned assets.

Funds management Funds management of third party client assets.

Governance
Development and trading Revenue earned and costs incurred by the Group on development services for third party
clients and inventory.
All other segments Corporate expenses associated with maintaining and operating the Group. This segment
also includes the real assets portfolio value of other investments.

Directors’ report
Financial report
Investor information

137
137
Note 1 Operating segments (continued)

Office Industrial
30 June 2024 $m $m
Segment performance measures
Property revenue 623.5 171.1
Property management fees — —
Development revenue — 80.0
Management fee revenue — —
Co-investment income — —
Total operating segment revenue 623.5 251.1
Property expenses and property management salaries (199.1) (39.5)
Management operations expenses — —
Development costs — (77.6)
Corporate and administration expenses (15.5) (5.4)
Incentive amortisation and rent straight line 145.3 15.5
Foreign exchange gains/(losses) — —
Interest revenue — —
Finance costs — —
Rental guarantees, coupon income and other — (3.4)
FFO tax expense — —
Funds From Operations (FFO) 554.2 140.7
Net fair value gain/(loss) of investment properties (1,523.2) (110.1)
Net fair value gain/(loss) of leased assets — —
Share of net profit/(loss) of investments accounted for using the equity method — —
Net fair value gain/(loss) of investments accounted for at fair value (267.1) —
Net fair value gain/(loss) of derivatives — —
Net fair value gain/(loss) of interest bearing liabilities — —
Transaction costs and other significant items — —
Incentive amortisation and rent straight line (145.3) (15.5)
Amortisation and impairment of intangible assets — —
Rental guarantees, coupon income and other — 3.4
Distribution income — —
Co-investment income — —
Non FFO tax benefit — —
Net profit/(loss) attributable to stapled security holders (1,381.4) 18.5
Investment properties 4,339.2 750.1
Equity accounted real estate funds1 5,164.8 2,312.1
Equity accounted real estate security funds1 — —
Equity accounted inventories — —
Equity accounted non-current assets held for sale — —
Equity accounted infrastructure funds1 — —
Investments accounted for at fair value2 97.3 —
Inventories — —
Non-current assets held for sale 69.1 35.1
Investments 9,670.4 3,097.3

1 Comprises the Group’s portion of the underlying property, infrastructure assets and other investments accounted for using the equity method.
2 Comprises the carrying value of the Group’s investments accounted for at fair value which consists of interests in Australian trusts, managed property
funds and infrastructure assets.

138 Dexus 2024 Annual Report

 Co- Property Funds Development All other
investments management management and trading segments Eliminations Total
$m $m $m $m $m $m $m

— — — — 0.5 (4.5) 790.6

— 69.4 — — — — 69.4
— — — 55.7 — — 135.7
— 19.6 240.3 26.1 — — 286.0
70.3 — — — — — 70.3
70.3 89.0 240.3 81.8 0.5 (4.5) 1,352.0
— (27.3) — — — — (265.9)

Overview
— (43.6) (109.0) (35.1) — — (187.7)
— — — (41.0) — — (118.6)
— — — — (66.4) 4.5 (82.8)
— — — — 0.3 — 161.1
— — — — (0.2) — (0.2)
— — — — 33.2 — 33.2

Approach
— — — — (163.3) — (163.3)
— — 2.2 — 5.2 — 4.0
— — — (4.4) (24.0) — (28.4)
70.3 18.1 133.5 1.3 (214.7) — 703.4
— — — — (1.2) — (1,634.5)
— — — — 0.9 — 0.9
(54.6) — — — — — (54.6)

Performance
(36.1) — — — 0.6 — (302.6)
— — — — (5.5) — (5.5)
— — — — (14.4) — (14.4)
— — — — (83.8) — (83.8)
— — — — (0.3) — (161.1)
— — — — (4.1) — (4.1)
— — — — (7.8) — (4.4)
10.6 — — — — — 10.6

Governance
(70.3) — — — — — (70.3)
— — — — 36.6 — 36.6
(80.1) 18.1 133.5 1.3 (293.7) — (1,583.8)
— — — — 28.6 — 5,117.9
1,174.5 — — — 102.6 — 8,754.0
12.4 — — — — — 12.4
63.0 — — 29.8 — — 92.8
6.8 — — — — — 6.8

Directors’ report
300.5 — — — — — 300.5
246.4 — — — 9.9 — 353.6
— — — 60.2 — — 60.2
— — — — — — 104.2
1,803.6 — — 90.0 141.1 — 14,802.4
Financial report
Investor information

139
Note 1 Operating segments (continued)

Office Industrial
30 June 2023 $m $m
Segment performance measures
Property revenue 670.1 199.5
Property management fees — —
Development revenue — —
Management fee revenue — —
Co-investment income — —
Gain on sale of units in investments accounted for using the equity method — —
Total operating segment revenue 670.1 199.5
Property expenses and property management salaries (196.1) (48.4)
Management operations expenses — —
Development costs — —
Corporate and administration expenses (14.1) (4.7)
Incentive amortisation and rent straight line 137.8 15.9
Foreign exchange gains/(losses) — —
Interest revenue — —
Finance costs — —
Rental guarantees, coupon income and other (0.1) 1.2
FFO tax expense — —
Funds From Operations (FFO) 597.6 163.5
Net fair value gain/(loss) of investment properties (1,177.8) (6.6)
Net fair value gain/(loss) of leased assets — —
Share of net profit/(loss) of investments accounted for using the equity method — —
Net fair value gain/(loss) of investments accounted for at fair value — —
Net fair value gain/(loss) of derivatives — —
Net fair value gain/(loss) of interest bearing liabilities — —
Transaction costs and other significant items — —
Incentive amortisation and rent straight line (137.8) (15.9)
Amortisation and impairment of intangible assets — —
Rental guarantees, coupon income and other 0.1 (1.2)
Distribution income — —
Co-investment income — —
Non FFO tax expense — —
Net profit/(loss) attributable to stapled security holders (717.9) 139.8
Investment properties 4,927.3 1,080.9
Equity accounted real estate funds1 5,992.0 2,246.6
Equity accounted real estate security funds1 — —
Equity accounted infrastructure funds1 — —
Investments accounted for at fair value2 206.8 —
Inventories — —
Non-current assets held for sale 1,000.0 354.0
Investments 12,126.1 3,681.5

1 Comprises the Group’s portion of the underlying property assets accounted for using the equity method.
2 Comprises the carrying value of the Group’s investments accounted for at fair value which consists of interests in Australian trusts and managed
property funds.

140 Dexus 2024 Annual Report

 Co- Property Funds Development All other
investments management management and trading segments Eliminations Total
$m $m $m $m $m $m $m

— — — — — (8.6) 861.0
— 52.5 — — — — 52.5
— — — 113.8 — — 113.8
— 38.3 148.8 35.0 — — 222.1
35.9 — — — — — 35.9
— — — 18.9 — — 18.9
35.9 90.8 148.8 167.7 — (8.6) 1,304.2

Overview
— (32.2) — — — — (276.7)
— (48.5) (57.3) (26.1) — — (131.9)
— — — (61.0) — — (61.0)
— — — — (48.8) 8.6 (59.0)
— — — — (0.1) — 153.6
— — — — 0.4 — 0.4

Approach
— — — — 20.9 — 20.9
— — — — (158.1) — (158.1)
— — 2.1 — 0.5 — 3.7
— — — (21.5) (36.1) — (57.6)
35.9 10.1 93.6 59.1 (221.3) — 738.5
— — — — 8.8 — (1,175.6)
— — — — 0.5 — 0.5

Performance
(2.0) — — — — — (2.0)
— — — — (1.1) — (1.1)
— — — — (67.6) — (67.6)
— — — — 75.6 — 75.6
— — — — (96.2) — (96.2)
— — — — 0.1 — (153.6)
— — — — (62.2) — (62.2)
— — — — (22.8) — (23.9)

Governance
8.1 — — — — — 8.1
(35.9) — — — — — (35.9)
— — — — 42.7 — 42.7
6.1 10.1 93.6 59.1 (343.5) — (752.7)
— — — — 29.9 — 6,038.1
1,073.6 — — — 62.2 — 9,374.4
12.6 — — — — — 12.6
136.9 — — — — — 136.9

Directors’ report
225.1 — — — — — 431.9
— — — 30.6 — — 30.6
16.3 — — — — — 1,370.3
1,464.5 — — 30.6 92.1 — 17,394.8
Financial report
Investor information

141
Note 1 Operating segments (continued)
Other segment information
Funds from Operations (FFO)
The Directors consider the Property Council of Australia’s (PCA) definition of FFO to be a measure that reflects the underlying
performance of the Group. FFO comprises net profit/loss after tax attributable to stapled security holders, calculated in
accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments and reversal of
impairments, derivative and foreign exchange mark-to-market impacts, fair value movements on investments accounted for
at fair value, fair value movements of interest bearing liabilities, amortisation of tenant incentives, gain/loss on sale of certain
assets, straight line rent adjustments, non-FFO tax expenses, certain transaction costs, one-off significant items, amortisation
of intangible assets, movements in right-of-use assets and lease liabilities, rental guarantees and coupon income.

Reconciliation of segment revenue to the Consolidated Statement of Comprehensive Income

2024 2023
$m $m
Property lease revenue 694.3 754.3
Property services revenue 96.3 106.7
Property revenue 790.6 861.0
Property management fees 69.4 52.5
Development revenue 135.7 113.8
Management fee revenue 286.0 222.1
Co-investment income 70.3 35.9
Gain on sale of units in investments accounted for using the equity method — 18.9
Total operating segment revenue 1,352.0 1,304.2
Share of revenue from joint ventures and associates (507.7) (466.5)
Interest and other revenue 57.9 10.7
Total revenue from ordinary activities 902.2 848.4

Reconciliation of segment assets to the Consolidated Statement of Financial Position

2024 2023
$m $m
Investments1, 2 14,802.4 17,394.8
Right-of-use assets 82.0 6.5
Cash and cash equivalents 54.0 123.9
Receivables 218.6 151.8
Intangible assets 667.8 670.9
Derivative financial instruments 449.6 484.1
Plant and equipment 9.9 11.3
Prepayments and other net assets3 (461.9) (371.6)
Total assets 15,822.4 18,471.7

1 Includes the Group’s portion of investment property, infrastructure assets and other investments accounted for using the equity method and the
Group's investments accounted for at fair value.
2 Includes Co-investments in listed and unlisted real estate, real estate security and infrastructure funds. The principal activity of these funds is to invest
in domestic and global real estate and infrastructure investments. Where the Group is deemed to have significant influence over these funds due to its
ability to influence the decisions made by the Board of the Responsible Entities of these funds, which are wholly owned subsidiaries of the Group, these
investments are accounted for using the equity method. Other investments in this category are accounted for at fair value.
3 Other net assets include the Group’s share of total net assets of its investments accounted for using the equity method less the Group’s share of the
investment property and infrastructure asset value which is included in Investments.

Note 2 Property revenue and expenses

Property revenue
Property rental revenue is derived from holding properties as investment properties and earning rental yields over time. Rental
revenue is recognised on a straight line basis over the lease term for leases with fixed rent review clauses.
Prospective tenants may be offered incentives as an inducement to enter into operating leases. The costs of incentives are
recognised as a reduction of rental revenue being incentive amortisation calculated on a straight line basis from the lease
commencement date to the end of the lease term. The carrying amount of the lease incentives is reflected in the fair value of
investment properties.
Within its lease arrangements, the Group provides certain services to tenants (such as utilities, cleaning, maintenance and
certain parking arrangements) which are accounted for in accordance with AASB 15 Revenue from Contracts with Customers.
A portion of the consideration within the lease arrangements is therefore allocated to services revenue within property
revenue.

142 Dexus 2024 Annual Report

Note 2 Property revenue and expenses (continued)
Property revenue (continued)

2024 2023
$m $m
Rent and recoverable outgoings 312.9 390.3
Services revenue 39.9 53.3
Incentive amortisation (71.4) (83.6)
Other revenue 42.5 56.3
Total property revenue 323.9 416.3

Property expenses

Overview
Property expenses include:
– Rates;
– Taxes;
– Expected credit losses on receivables ; and
– Other property outgoings incurred in relation to investment properties.

Approach
These expenses are recognised in the Consolidated Statement of Comprehensive Income on an accrual basis. If these items
are recovered from a tenant by the Group, they are recorded within services revenue or direct recoveries within property
revenue.

2024 2023
$m $m

Performance
Recoverable outgoings 81.0 104.2
Other non-recoverable property expenses 35.3 32.8
Total property expenses 116.3 137.0

Note 3 Management fees and other revenue

Management fees are brought to account on an accrual basis and, if not received at the end of the reporting period, are
reflected in the Consolidated Statement of Financial Position as a receivable.

Governance
2024 2023
$m $m
Investment management and responsible entity fees 244.5 190.6
Lease review and renewal fees 14.9 13.0
Property management fees 61.1 41.5
Capital works and development management fees 23.0 33.9
Performance and transaction fees 26.5 1.4

Directors’ report
Wages recovery and other fees 51.3 27.2
Total management fees and other revenue 421.3 307.6

Performance fees are for performance obligations fulfilled over time and for which consideration is variable. The fees are
determined in accordance with the relevant agreement which stipulates out-performance of a benchmark over a given
period. Performance fee revenue is recognised to the extent that it is highly probable that the amount of variable
consideration recognised will not be significantly reversed when the uncertainty is resolved. Detailed calculations and an
assessment of the risks associated with the recognition of the fee are completed to inform the assessment of the appropriate
revenue to recognise.
Financial report

As at 30 June 2024, there was no unearned revenue relating to performance fees recorded within non-current liabilities
(2023: $19.3 million).

Critical accounting estimates: input used to measure performance fee

Judgement is required in determining the following significant inputs for recognition of performance fee revenue:
– Estimates of future underlying asset values and income measures compared to benchmark on the final performance fee
calculation date
– The period of time remaining from balance date to the final performance fee calculation date and the degree of
Investor information

probability that any potential fee may be reversed taking into consideration historical performance, prevailing and
future economic conditions

143
Note 4 Management operations, corporate and administration expenses
2024 2023
$m $m
Audit, taxation, legal and other professional fees 16.3 19.1
Depreciation and amortisation 13.9 8.4
Employee benefits expense 235.5 145.0
Administration expenses and other expenses 57.0 49.9
Total management operations, corporate and administration expenses 322.7 222.4

Note 5 Finance costs

Finance costs include:
– Interest;
– Amortisation or other costs incurred in connection with arrangement of borrowings;
– Finance costs on lease liabilities; and
– Realised gains and losses on interest rate swaps.

Finance costs are expensed as incurred unless they are directly attributable to qualifying assets which are capitalised to the
cost of the asset.
A qualifying asset is an asset under development where the works being carried out to bring it to its intended use or sale are
expected to take a substantial period of time. Finance costs incurred for the acquisition and construction of a qualifying asset
are capitalised to the cost of the asset for the period of time that is required to complete the asset. To the extent that funds
are borrowed generally to fund development, the amount of borrowing costs to be capitalised to qualifying assets must be
determined by using an appropriate interest rate.

2024 2023
$m $m
Interest paid/payable 237.6 194.4
Amount capitalised (26.7) (23.7)
Realised (gain)/loss of interest rate derivatives (62.0) (29.2)
Finance costs - leases and debt modification 0.9 23.9
Other finance costs 19.5 8.7
Total finance costs 169.3 174.1

The average interest rate used to determine the amount of borrowing costs eligible for capitalisation is 4.04% (2023: 3.70%).

Note 6 Taxation
Under current Australian income tax legislation, DPT is not liable for income tax provided it satisfies certain legislative
requirements, which were met in the current and previous financial years. DXO is liable for income tax and has formed a tax
consolidated group with its wholly owned and controlled Australian entities. As a consequence, the tax consolidated group is
taxed as a single entity.
Income tax expense is comprised of current and deferred tax expense. Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in other comprehensive income or directly in equity, in which case it is
recognised in other comprehensive income or directly in equity, respectively.
Current tax expense represents the expense relating to the expected taxable income at the applicable rate of the financial
year.
Deferred tax expense represents the tax expense in respect of the future tax consequences of recovering or settling the
carrying amount of an asset or liability. Deferred income tax liabilities are recognised for all taxable temporary differences.
Deferred income tax assets are recognised for all deductible temporary differences and unused tax losses, to the extent that
it is probable that future taxable profit will be available to utilise them.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at
reporting date.
Attribution managed investment trust regime
Dexus made an election for DPT and its wholly owned subsidiaries (DDF, DIT and DOT) to be attribution managed investment
trusts (AMITs) for the year ended 30 June 2017 and future years. The AMIT regime is intended to reduce complexity, increase
certainty and minimise compliance costs for AMITs and their investors.

144 Dexus 2024 Annual Report

Note 6 Taxation (continued)
a. Income tax (expense)/benefit

2024 2023
$m $m
Current income tax expense (19.6) (30.6)
Deferred income tax benefit 29.3 19.4
Total income tax benefit/(expense) 9.7 (11.2)
Deferred income tax expense included in income tax (expense) / benefit comprises:
Increase in deferred tax assets 8.4 3.6
Decrease in deferred tax liabilities 20.9 15.8
Total deferred tax benefit 29.3 19.4

Overview
b. Reconciliation of income tax (expense)/benefit to net profit

2024 2023
$m $m
Loss before income tax (1,593.5) (741.5)

Approach
Add: loss attributed to entities not subject to tax 1,554.0 692.6
Loss subject to income tax (39.5) (48.9)
Prima facie tax expense at the Australian tax rate of 30% (2023: 30%) 11.9 14.7
Tax effect of amounts which are not deductible/(assessable) in calculating taxable income:
(Non-assessable)/non-deductible items (2.2) (25.9)
Income tax benefit/(expense) 9.7 (11.2)

Performance
c. Current tax assets/liabilities

2024 2023
$m $m
Increase in current tax assets 8.9 11.2
Decrease in current tax liabilities — 16.0
Increase in current tax assets 8.9 27.2

Governance
d. Deferred tax assets

2024 2023
$m $m
The balance comprises temporary differences attributable to:
Employee provisions 31.6 26.6
Software expenditure 5.9 9.8
Other 39.7 32.5

Directors’ report
Total non-current assets - deferred tax assets 77.2 68.9
Movements:
Opening balance 68.8 42.5
Deferred tax assets arising from business combination — 22.7
Movement in deferred tax asset arising from temporary differences 8.4 3.6
Closing balance 77.2 68.8

e. Deferred tax liabilities

Financial report

2024 2023
$m $m
The balance comprises temporary differences attributable to:
Intangible assets 165.5 166.4
Investment properties 0.2 16.6
Other 0.1 3.7
Total non-current liabilities - deferred tax liabilities 165.8 186.7
Movements
Opening balance 186.7 144.7
Investor information

Deferred tax liabilities arising from management rights on business combination1 — 57.8
Movement in deferred tax liability arising from temporary differences (20.9) (15.8)
Closing balance 165.8 186.7

1 Representing the deferred tax recognised in relation to the acquisition of Collimate Capital’s real estate and domestic infrastructure equity business
from AMP Limited. Refer to note 22 for further details.
145
Note 6 Taxation (continued)
f. Net deferred tax liabilities

2024 2023
$m $m
Deferred tax assets 77.2 68.8
Deferred tax liabilities (165.8) (186.7)
Net deferred tax liabilities1 (88.6) (117.9)
1 Net deferred tax liabilities of $88.6m is presented in the Consolidated Statement of Financial Position as $89.3m in net deferred tax liabilities related to
Australian entities and net deferred tax assets of $0.7m related to foreign entities.

Note 7 Earnings per unit

Earnings per unit are determined by dividing the net profit or loss attributable to unitholders by the weighted average number
of ordinary units outstanding during the year. Diluted earnings per unit are adjusted from the basic earnings per unit by taking
into account the impact of dilutive potential units.
a. Net profit used in calculating basic and diluted earnings per security

2024 2023
$m $m
Loss attributable to unitholders of the Trust (parent entity) for basic earnings per security (1,578.9) (685.2)
Effect on exchange of Exchangeable Notes (0.3) 22.4
Loss attributable to unitholders of the Trust (parent entity) for diluted earnings per security (1,579.2) (662.8)
Loss attributable to stapled security holders for basic earnings per security (1,583.8) (752.7)
Effect on exchange of Exchangeable Notes (0.3) 22.4
Loss attributable to stapled security holders for diluted earnings per security (1,584.1) (730.3)

b. Weighted average number of securities used as a denominator

2024 2023
No. of No. of
securities securities
Weighted average number of units outstanding used in calculation of basic earnings per
1,075,565,246 1,075,565,246
security
Effect on exchange of Exchangeable Notes 68,498,708 53,412,698
Weighted average number of units outstanding used in calculation of diluted earnings per
1,144,063,954 1,128,977,944
unit

146 Dexus 2024 Annual Report

Note 8 Distributions paid and payable
Distributions are recognised when declared.
a. Distribution to security holders

2024 2023
$m $m
31 December (paid 29 February 2024) 287.1 301.2
30 June (payable 29 August 2024) 229.2 253.8
Total distribution to security holders 516.3 555.0

b. Distribution rate

Overview
2024 2023
Cents per Cents per
security security
31 December (paid 29 February 2024) 26.7 28.0
30 June (payable 29 August 2024) 21.3 23.6
Total distribution rate 48.0 51.6

Approach
c. Franked dividends

2024 2023
$m $m
Opening balance 154.6 114.3
Income tax paid during the year 28.0 61.7

Performance
Franking credits utilised for payment of distribution (17.1) (21.4)
Closing balance 165.5 154.6

Governance
Directors’ report
Financial report
Investor information

147
Investments
Investments
In this section

Investments are used to generate the Group’s performance. The assets are detailed in the following notes:
– Investment properties (note 9): relates to investment properties (including ground leases where relevant), both stabilised
and under development.
– Investments accounted for using the equity method (note 10): provides summarised financial information on the joint
ventures and investments where the Group has significant influence and relates to interests in underlying property,
infrastructure assets and other investments.
– Investments accounted for at fair value (note 11): relates to the fair value of investments in Australian trusts, managed
property funds and equity investments in infrastructure assets.
– Inventories (note 12): relates to the Group’s ownership of office and industrial assets or land held for repositioning,
development and sale.
– Non-current assets classified as held for sale (note 13): relates to investment properties which are expected to be sold
within 12 months of the reporting date and/or contracts have already exchanged.

Note 9 Investment properties

The Group’s investment properties consist of properties held for long-term rental yields and/or capital appreciation and
property that is being constructed or developed for future use as investment property. Investment properties are initially
recognised at cost including transaction costs. Investment properties are subsequently measured at fair value.
The basis of valuations of investment properties is fair value, being the estimated price that would be received to sell the asset
in an orderly transaction between market participants at the measurement date.
Changes in fair values are recorded in the Consolidated Statement of Comprehensive Income. The gain or loss on disposal of
an investment property is calculated as the difference between the carrying amount of the asset at the date of disposal and
the net proceeds from disposal and is included in the Consolidated Statement of Comprehensive Income in the year of
disposal.
Subsequent redevelopment and refurbishment costs (other than repairs and maintenance) are capitalised to the investment
property where they result in an enhancement in the future economic benefits of the property.
Leasing fees incurred and incentives provided are capitalised and amortised over the lease periods to which they relate.
a. Reconciliation

Office Industrial Other 2024 2023

Note $m $m $m $m $m
Opening balance 4,927.3 1,081.0 29.8 6,038.1 8,295.7
Additions 142.8 2.5 0.4 145.7 218.8
Acquisitions — — — — 134.4
Transfer from non-current assets classified as held for
13 99.0 — — 99.0 —
sale
Lease incentives 47.9 2.2 — 50.1 62.5
Amortisation of lease incentives (70.2) (4.9) — (75.1) (90.9)
Rent straightlining (2.6) (0.7) 0.3 (3.0) (0.9)
Disposals — (174.0) — (174.0) (579.5)
Transfer to non-current assets classified as held for
13 (69.1) (35.1) — (104.2) (1,354.0)
sale
Transfer (to)/from inventories 12 — (60.0) — (60.0) (25.7)
Net fair value gain/(loss) of investment properties (735.9) (60.9) (1.9) (798.7) (622.3)
Closing balance 4,339.2 750.1 28.6 5,117.9 6,038.1

Leased assets
The Group holds leasehold interests in a number of properties. Leasehold land that meets the definition of investment property
under AASB 140 Investment Property is measured at fair value and presented within Investment property. The leased asset is
measured initially at an amount equal to the corresponding lease liability. Subsequent to initial recognition, the leased asset is
recognised at fair value in the Consolidated Statement of Financial Position. Refer to note 16 for details of the lease liabilities.

148
148 Dexus 2024 Annual Report
Note 9 Investment properties (continued)
a. Reconciliation (continued)
Disposals
Proceeds1
Date Property Name
$m
21 November 2023 20 Distribution Drive, Truganina, VIC - Lot EE 16.8
19 December 2023 153 Aldington Road, Kemps Creek, NSW2 137.2
12 June 2024 20 Distribution Drive, Truganina, VIC - Lot DD 8.6
17 June 2024 18 Motorway Circuit, Ormeau, QLD 17.9

Overview
1 Excludes transaction costs.
2 49% interest in the trust holding the property was sold to a third party during the year. Remaining 51% interest has been reclassified as an investment
accounted for using the equity method,

b. Valuation process
It is the policy of the Group to obtain independent valuations for each individual property at least once every three years by a
member of the Australian Property Institute of Valuers. It has been the Group’s practice in the majority of cases to have such
valuations performed at least every six months. Each valuation firm and its signatory valuer are appointed on the basis that

Approach
they are engaged for no more than three years except for properties under development and co-owned properties where it is
deemed appropriate to extend beyond this term. Independent valuations may be undertaken more frequently where the
Responsible Entity believes there is potential for a change in the fair value of the property, being 5% of the asset value. At
30 June 2024, 170 out of 175 investment properties (including those classified as held for sale) were independently externally
valued.
The Group’s policy requires investment properties, including those held within investments accounted for using the equity
method, to be internally valued at least every six months at each reporting period (interim and full-year) unless they have been

Performance
independently externally valued. Where appropriate, internal valuations are performed by the Group’s internal valuers who
hold recognised relevant professional qualifications and have previous experience as property valuers from major real estate
valuation firms.
An appropriate valuation methodology is utilised according to asset class. This includes the capitalisation approach (market
approach) and the discounted cash flow approach (income approach). The valuation is also compared to, and supported by,
direct comparison to recent market transactions. The adopted capitalisation rates and discount rates are determined based
on industry expertise and knowledge and, where possible, a direct comparison to third party rates for similar assets in a
comparable location. Rental revenue from current leases and assumptions about future leases, as well as any expected

Governance
operational cash outflows in relation to the property, are also factored into each asset assessment of fair value.
In relation to development properties under construction for future use as investment property, where reliably measurable, fair
value is determined based on the market value of the property on the assumption it had already been completed at the
valuation date (using the methodology as outlined above) less costs still required to complete the project, including an
appropriate adjustment for industry benchmarked profit and development risk.

c. Sustainability valuation considerations

The Group engages independent valuation firms to assist in determining fair value of the investment property assets at each

Directors’ report
reporting period. As qualified valuers, they are required to follow both the RICS Valuation - Global Standards and the
Australian Property Institute’s International Valuation Standards, and accordingly their valuations are required to take into
account the sustainability features of properties being valued and the implications such factors could have on property values
in the short, medium and longer term.
Where relevant, the Group’s independent valuation firms note in their valuation reports that sustainability features are
considered as part of the valuation approach and that sustainability features have been influencing value for some time.
Where the independent valuation firms give consideration to the impacts of sustainability, they are incorporating their
understanding of how market participants consider the impact of sustainability on market valuations, noting that valuers
should reflect markets and not lead them.
Financial report
Investor information

149
Note 9 Investment properties (continued)
d. Fair value measurement, valuation techniques and inputs
The following table represents the level of the fair value hierarchy and the associated unobservable inputs utilised in the fair
value measurement for each class of investment property, including investment property held within investments accounted
for using the equity method.
Range of unobservable inputs
Class of property Fair value hierarchy Inputs used to measure fair value 2024 2023
Office1 Level 3 Adopted capitalisation rate 4.75% - 7.75% 4.25% - 6.75%
Adopted discount rate 6.00% - 8.50% 5.75% - 8.00%
Adopted terminal yield 4.75% - 8.00% 4.25% - 7.00%
Net market rental (per sqm) $414 - $1,782 $459 - $1,657
Industrial Level 3 Adopted capitalisation rate 4.75% - 9.75% 4.00% - 10.00%
Adopted discount rate 6.13% - 10.50% 5.75% - 10.00%
Adopted terminal yield 5.13% - 9.75% 4.25% - 10.25%
Net market rental (per sqm) $50 - $801 $50 - $765
Leased assets Level 3 Adopted discount rate 3.51% - 8.92% 3.51% - 8.50%

1 Includes office developments and excludes car parks, retail and other.

Critical accounting estimates: inputs used to measure fair value of investment properties including those held within
investments accounted for using the equity method
Judgement is required in determining the following significant unobservable inputs:
– Adopted capitalisation rate: The rate at which net market rental revenue is capitalised to determine the value of a
property. The rate is determined with regard to market evidence and the prior external valuation.
– Adopted discount rate: The rate of return used to convert cash flows, payable or receivable in the future, into present
value. For industrial and office properties, it reflects the opportunity cost of capital, that is, the rate of return the cash
can earn if put to other uses having similar risk. The rate is determined with regard to market evidence and the prior
external valuation. For leased assets, the discount rate is determined with reference to the Group's incremental
borrowing rate at inception of the lease.
– Adopted terminal yield: The capitalisation rate used to convert the future net market rental revenue into an indication
of the anticipated value of the property at the end of the holding period when carrying out a discounted cash flow
calculation. The rate is determined with regard to market evidence and the prior external valuation.
– Net market rental (per sqm): The net market rent is the estimated amount for which a property should lease between a
lessor and a lessee on appropriate lease terms in an arm’s length transaction.

e. Impact of the current economic environment on the fair value of investment properties
The elevated levels of economic uncertainty, coupled with a lack of recent comparable transactions in the market, has
created heightened levels of judgment when deriving the fair value of the Group’s investment property portfolio.
Whilst the fair values of investment property can be relied upon at the date of valuation, a higher level of valuation
uncertainty than normal is assumed. A sensitivity analysis has been included in note 9(f), showing indicative movements in
investment property valuations should certain significant unobservable inputs differ by reasonably possible amounts from
those assumed in the valuations.

f. Sensitivity information
Significant movement in any one of the valuation inputs listed in the table above may result in a change in the fair value of the
Group’s investment properties, including investment properties within investments accounted for using the equity method as
shown below.

The estimated impact of a change in certain significant unobservable inputs would result in a change in the fair value as
follows:

Office Industrial
2024 2023 2024 2023
$m $m $m $m
A decrease of 25 basis points in the adopted capitalisation rate 409.8 550.4 147.2 183.6
An increase of 25 basis points in the adopted capitalisation rate (377.3) (500.0) (134.2) (165.3)
A decrease of 25 basis points in the adopted discount rate 355.1 456.5 112.7 139.0
An increase of 25 basis points in the adopted discount rate (330.4) (421.3) (105.0) (128.2)
A decrease of 5% in the net market rental (per sqm) (475.2) (546.0) (153.1) (165.6)
An increase of 5% in the net market rental (per sqm) 475.2 546.0 153.1 165.6

150 Dexus 2024 Annual Report

Note 9 Investment properties (continued)
f. Sensitivity information (continued)

Generally, a change in the assumption made for the adopted capitalisation rate is often accompanied by a directionally
similar change in the adopted terminal yield. The adopted capitalisation rate forms part of the capitalisation approach while
the adopted terminal yield forms part of the discounted cash flow approach.
Under the capitalisation approach, the net market rental has a strong interrelationship with the adopted capitalisation rate as
the fair value of the investment property is derived by capitalising, in perpetuity, the total net market rent receivable. An
increase (softening) in the adopted capitalisation rate would offset the impact to fair value of an increase in the net market
rent. A decrease (tightening) in the adopted capitalisation rate would also offset the impact to fair value of a decrease in the
net market rent. Directionally opposite changes in the net market rent and the adopted capitalisation rate would increase the
impact to fair value.

Overview
The discounted cash flow is primarily made up of the discounted cash flow of net income over the cash flow period and the
discounted terminal value (which is largely based upon market rents grown at forecast market rental growth rates capitalised
at an adopted terminal yield). An increase (softening) in the adopted discount rate would offset the impact to fair value of a
decrease (tightening) in the adopted terminal yield. A decrease (tightening) in the discount rate would offset the impact to fair
value of an increase (softening) in the adopted terminal yield. Directionally similar changes in the adopted discount rate and
the adopted terminal yield would increase the impact to fair value.

Approach
A decrease (softening) in the forecast rental growth rate may result in a negative impact on the discounted cash flow
approach value while a strengthening may have a positive impact on the value under the same approach.

g. Investment properties pledged as security

Refer to note 15 for information on investment properties pledged as security.

Performance
Governance
Directors’ report
Financial report
Investor information

151
Note 10 Investments accounted for using the equity method
a. Interest in joint ventures and associates
The following investments are accounted for using the equity method of accounting in the Consolidated Financial Statements.
All entities were formed in Australia and their principal activity is either property or infrastructure related investment in Australia
or investment in Australian and global listed real estate and infrastructure investment trusts.
Ownership interest
2024 2023 2024 2023
Name of entity % % $m $m
Dexus Office Trust Australia (DOTA) 50.0 50.0 1,715.9 2,159.7
Dexus 80C Trust 75.0 75.0 991.4 1,177.1
Dexus Martin Place Trust 50.0 50.0 832.4 919.0
Dexus Australian Logistics Trust (DALT) 51.0 51.0 731.5 730.1
Dexus Australian Logistics Trust No.2 (DALT2) 51.0 51.0 580.7 584.6
Bent Street Trust 33.3 33.3 338.3 378.3
Dexus Wholesale Australian Property Fund (DWAPF) 25.0 18.9 323.4 319.8
Jandakot City Holdings Trust (JCH) 33.4 33.4 318.0 317.8
Dexus 480 Q Holding Trust 50.0 50.0 316.8 357.1
AAIG Holding Trust 49.4 49.4 315.8 326.6
Dexus Industrial Trust Australia (DITA) 50.0 50.0 299.8 301.7
Dexus Healthcare Property Fund (DHPF)1 16.1 16.4 219.8 241.3
Dexus Kings Square Trust 50.0 50.0 211.2 231.5
Dexus Industria REIT (DXI) 17.5 17.5 181.8 193.0
Dexus Australian Logistics Trust No.3 (DALT3) 51.0 51.0 134.5 125.6
Dexus Community Infrastructure Fund (COMMIF) 9.3 5.1 128.1 73.1
Dexus Wholesale Shopping Centre Fund (DWSF)2 5.3 — 123.8 —
Dexus Diversified Infrastructure Trust (DDIT)3 5.1 — 102.7 —
Dexus Eagle Street Pier Trust 50.0 50.0 102.5 53.1
Other4 637.1 560.6
Total assets - investments accounted for using the equity method5 8,605.5 9,050.0

1 In October 2023, DHPF raised equity resulting in a dilution of the Group’s interest from 16.4% to 16.1%.
2 In July 2023, the Group acquired a 5.3% interest in DWSF.
3 In October 2023, DXO acquired a 5.1% interest in DDIT.
4 The Group also has interests in a number of immaterial joint ventures and associates that are accounted for using the equity method.
5 These investments are accounted for using the equity method as a result of the Group having either significant influence over the financial and
operating policy decisions of the associate or joint control over the associate under contractual arrangements requiring unanimous decisions on all
relevant matters.

b. Impairment assessment on Investments accounted for using the equity method

At each reporting date, management assess whether there is any indication of impairment to the carrying value of
Investments accounted for using the equity method, which in certain instances may include notional goodwill recognised on
acquisition. If an indicator of impairment is identified, the entire carrying amount of the investment is tested for impairment in
accordance with AASB 136 Impairment of Assets as a single asset, by comparing its recoverable amount (higher of value in use
and fair value less costs of disposal) with its carrying amount. Impairment losses of $0.7 million losses were recognised during
the year (2023: impairment losses of $3.2 million were recognised).

c. Summarised financial information for individually material equity accounted investments

The following table provides summarised financial information for the joint ventures and associates accounted for using the
equity method which, in the opinion of the Directors, are material to the Group. The information disclosed reflects the amounts
presented in the Financial Statements of the relevant joint ventures and associates and not Dexus' share of those amounts.

152 Dexus 2024 Annual Report

Note 10
Note 10 Investments
Investmentsaccounted
accountedfor
forusing
usingthe
theequity
equitymethod
method(continued)
(continued)
c. Summarised
c. Summarisedfinancial
financialinformation
informationfor
forindividually
individuallymaterial
materialjoint
jointventures
ventures and
and associates
associates (continued)
(continued)

Dexus
DexusOffice
OfficeTrust
TrustAustralia
Australia Dexus
Dexus80C Trust
80C Trust Dexus Martin
Dexus Place
Martin Trust
Place Trust
2024
2024 2023
2023 2024
2024 2023
2023 2024
2024 2023
2023
Statement
Statement of
ofFinancial
FinancialPosition
Position $m
$m $m$m $m$m $m$m $m$m $m$m
Cash
Cash and
and cash
cashequivalents
equivalents 40.6
40.6 32.8
32.8 5.0
5.0 6.16.1 8.78.7 8.68.6
Other current assets
Other current assets 19.2
19.2 16.5
16.5 14.7
14.7 18.3
18.3 3.53.5 3.03.0
Non-current
Non-currentassets
assets 3,426.5
3,426.5 4,312.4
4,312.4 1,332.0
1,332.0 1,582.0
1,582.0 1,676.7
1,676.7 1,870.9
1,870.9
Current
Current borrowings
borrowings —— —— —— —— — — — —
Other
Other current
currentliabilities
liabilities (53.1)
(53.1) (42.3)
(42.3) (29.9)
(29.9) (36.9)
(36.9) (24.0)
(24.0) (44.6)
(44.6)
Non-current
Non-currentborrowings —— —— —— —— — — — —

Overview
borrowings
Other
Other non-current
non-currentliabilities
liabilities (1.4)
(1.4) —— —— —— — — — —
Net
Net assets
assets 3,431.8
3,431.8 4,319.4
4,319.4 1,321.8
1,321.8 1,569.5
1,569.5 1,664.9
1,664.9 1,837.9
1,837.9
Reconciliation
Reconciliationto
tocarrying
carryingamounts:
amounts:
Opening
Opening balance
balance 4,319.4
4,319.4 4,816.8
4,816.8 1,569.5
1,569.5 1,651.1
1,651.1 1,837.9
1,837.9 1,985.9
1,985.9
Additions/(redemptions)
Additions/(redemptions) 56.6
56.6 142.1
142.1 16.4
16.4 18.9
18.9 34.9
34.9 91.291.2

Approach
Profit/(loss)
Profit/(loss) for
forthe
theyear
year (480.9)
(480.9) (321.1)
(321.1) (202.6)
(202.6) (42.9)
(42.9) (138.1)
(138.1) (177.3)
(177.3)
Distributions received/receivable (463.3) (318.4) (61.5) (57.6) (69.8) (61.9)
Distributions received/receivable (463.3) (318.4) (61.5) (57.6) (69.8) (61.9)
Closing balance 3,431.8 4,319.4 1,321.8 1,569.5 1,664.9 1,837.9
Closing balance 3,431.8 4,319.4 1,321.8 1,569.5 1,664.9 1,837.9
Group's share in $m 1,715.9 2,159.7 991.4 1,177.1 832.4 919.0
Group's share in $m 1,715.9 2,159.7 991.4 1,177.1 832.4 919.0
Notional goodwill — — — — — —
Notional goodwill — — — — — —
Group's carrying amount 1,715.9 2,159.7 991.4 1,177.1 832.4 919.0
Group's carrying amount 1,715.9 2,159.7 991.4 1,177.1 832.4 919.0

Performance
Statement of Comprehensive Income
Statement of Comprehensive Income
Revenue 223.0 226.2 89.2 79.5 94.6 101.2
Revenue 223.0 226.2 89.2 79.5 94.6 101.2
Interest income 2.7 1.5 0.9 0.7 0.7 0.2
Interest income 2.7 1.5 0.9 0.7 0.7 0.2
Finance costs (0.1) (0.8) — — — —
Finance costs (0.1) (0.8) — — — —
Income tax (expense)/benefit — — — — — —
Income tax (expense)/benefit — — — — — —
Net profit/(loss) (480.9) (321.1) (202.6) (42.9) (138.1) (177.3)
Net profit/(loss) (480.9) (321.1) (202.6) (42.9) (138.1) (177.3)
Total comprehensive income/(loss) (480.9) (321.1) (202.6) (42.9) (138.1) (177.3)
Total comprehensive income/(loss) (480.9) (321.1) (202.6) (42.9) (138.1) (177.3)

Governance
Jandakot City Holdings Trust Dexus 480 Q Holding Trust AAIG Holding Trust
Jandakot City Holdings Trust Dexus 480 Q Holding Trust AAIG Holding Trust
2024 2023 2024 2023 2024 2023
2024 2023 2024 2023 2024 2023
Statement of Financial Position $m $m $m $m $m $m
Statement of Financial Position $m $m $m $m $m $m
Cash and cash equivalents 18.0 24.2 8.5 2.5 14.5 17.9
Cash and cash equivalents 18.0 24.2 8.5 2.5 14.5 17.9
Other current assets 2.3 2.0 2.7 1.4 2.3 3.8
Other current assets 2.3 2.0 2.7 1.4 2.3 3.8
Non-current assets 1,459.1 1,443.5 640.2 725.3 1,090.3 1,113.5
Non-current
Current assets
borrowings 1,459.1
— 1,443.5
— 640.2
— 725.3
— 1,090.3
— 1,113.5
—

Directors’ report
Current
Other borrowings
current liabilities (17.5)— (25.0)— (17.8) — (14.9) — (20.0) — (23.5) —
Other current liabilities
Non-current borrowings (17.5)
(318.7) (25.0)
(318.7) (17.8)
— (14.9)
— (20.0)
(447.5) (23.5)
(450.0)
Non-current
Other borrowings
non-current liabilities (318.7)
(190.5) (318.7)
(174.9) —— —— (447.5)
— (450.0)
—
Other
Net non-current liabilities
assets (190.5)
952.7 (174.9)
951.1 633.6 — 714.3 — 639.6 — 661.7 —
Net assets
Reconciliation to carrying amounts: 952.7 951.1 633.6 714.3 639.6 661.7
Reconciliation
Opening balanceto carrying amounts: 951.1 747.8 714.3 764.1 661.7 694.2
Opening balance
Additions/(redemptions) 951.1
33.6 747.8
173.5 714.3
28.5 764.1
8.6 661.7
— 694.2
2.9
Additions/(redemptions)
Profit/(loss) for the year 33.6
21.9 173.5
62.0 28.5
(68.4) (14.3)8.6 17.1 — 3.82.9
Financial report

Profit/(loss) for
Distributions the year
received/receivable 21.9
(53.9) 62.0
(32.2) (68.4)
(40.8) (14.3)
(44.1) (39.2)17.1 (39.2)3.8
Distributions
Closing balancereceived/receivable (53.9)
952.7 (32.2)
951.1 (40.8)
633.6 (44.1)
714.3 (39.2)
639.6 (39.2)
661.7
Closing share
Group's balance
in $m 952.7
318.0 951.1
317.8 633.6
316.8 714.3
357.1 639.6
315.8 661.7
326.6
Group's share
Notional in $m
goodwill 318.0
— 317.8
— 316.8
— 357.1
— 315.8
— 326.6
—
Notionalcarrying
Group's goodwillamount 318.0— 317.8— 316.8 — 357.1 — 315.8 — 326.6 —
Group's carrying
Statement amount
of Comprehensive Income 318.0 317.8 316.8 357.1 315.8 326.6
Statement of Comprehensive Income
Revenue 98.4 69.8 43.8 49.8 87.9 71.7
Interest
Revenueincome 0.7
98.4 0.5
69.8 0.2
43.8 —
49.8 15.5
87.9 15.371.7
Investor information

Finance
Interest costs
income (23.5)
0.7 (22.7)
0.5 —
0.2 —— (25.9)
15.5 (19.6)15.3
Income
Financetax (expense)/benefit
costs —
(23.5) —
(22.7) —— —— —
(25.9) —
(19.6)
Net profit/(loss)
Income tax (expense)/benefit 21.9— 62.0— (68.4) — (14.3) — 17.1 — 3.8 —
Total comprehensive income/(loss)
Net profit/(loss) 21.9
21.9 62.0
62.0 (68.4)
(68.4) (14.3)
(14.3) 17.117.1 3.83.8
Total comprehensive income/(loss) 21.9 62.0 (68.4) (14.3) 17.1 3.8
153

153
 Dexus Australian Logistics Dexus Australian Logistics Dexus Wholesale Australian
Trust Trust No.2 Bent Street Trust Property Fund
2024 2023 2024 2023 2024 2023 2024 2023
$m $m $m $m $m $m $m $m
16.2 18.9 14.6 13.2 6.5 4.8 4.5 4.8
5.9 5.4 4.9 2.8 1.8 1.5 13.5 10.1
1,429.0 1,426.0 1,133.7 1,139.9 1,023.0 1,146.0 1,869.6 2,410.0
— — — — — — — —
(16.7) (18.8) (14.6) (9.7) (16.4) (17.3) (78.6) (44.0)
— — — — — — (514.8) (690.3)
— — — — — — — —
1,434.4 1,431.5 1,138.6 1,146.2 1,014.9 1,135.0 1,294.2 1,690.6

1,431.5 1,378.6 1,146.2 1,067.2 1,135.0 1,158.9 1,690.6 —

— — 54.6 70.8 25.4 6.0 (96.3) 1,787.8
49.3 98.5 (30.7) 33.1 (96.7) 17.1 (246.7) (31.2)
(46.4) (45.6) (31.5) (24.9) (48.8) (47.0) (53.4) (66.0)
1,434.4 1,431.5 1,138.6 1,146.2 1,014.9 1,135.0 1,294.2 1,690.6
731.5 730.1 580.7 584.6 338.3 378.3 323.4 319.8
— — — — — — — —
731.5 730.1 580.7 584.6 338.3 378.3 323.4 319.8

78.8 70.4 48.9 41.4 61.8 59.5 164.2 126.6

0.9 0.5 0.4 0.3 0.3 — 0.9 0.4
— — — — — — (40.0) (27.3)
— — — — — — — —
49.3 98.5 (30.7) 33.1 (96.7) 17.1 (246.7) (31.2)
49.3 98.5 (30.7) 33.1 (96.7) 17.1 (246.7) (31.2)

Dexus Healthcare Property

Dexus Industrial Trust Australia Fund Dexus Kings Square Trust Dexus Industria REIT
2024 2023 2024 2023 2024 2023 2024 2023
$m $m $m $m $m $m $m $m
7.0 7.4 50.1 77.3 18.3 4.5 4.6 5.7
2.0 2.1 54.2 7.4 0.9 0.8 12.8 104.3
598.3 601.6 1,652.7 1,618.7 410.2 466.0 1,361.1 1,451.8
— — — — — — (0.5) (0.4)
(7.7) (7.6) (74.2) (32.9) (7.1) (8.3) (29.0) (34.6)
— — (297.5) (177.0) — — (266.0) (379.3)
— — (21.4) (22.1) — — (45.1) (45.8)
599.6 603.5 1,363.9 1,471.4 422.3 463.0 1,037.9 1,101.7

603.5 600.2 1,471.4 1,057.2 463.0 500.7 1,101.7 1,153.5

— — 25.5 440.0 16.7 2.3 — —
17.9 23.0 (78.4) 16.1 (28.2) (11.3) (11.8) 0.2
(21.8) (19.7) (54.6) (41.9) (29.2) (28.7) (52.0) (52.0)
599.6 603.5 1,363.9 1,471.4 422.3 463.0 1,037.9 1,101.7
299.8 301.7 219.8 241.3 211.2 231.5 181.8 193.0
— — — — — — — —
299.8 301.7 219.8 241.3 211.2 231.5 181.8 193.0

28.0 25.2 96.6 55.0 36.4 38.2 85.5 75.1

0.4 0.2 0.8 1.2 — — 0.3 0.1
— — (15.4) (6.6) — — (12.5) (16.5)
— — — — — — 1.4 2.1
17.9 23.0 (78.4) 16.1 (28.2) (11.3) (11.8) 0.2
17.9 23.0 (78.4) 16.1 (28.2) (11.3) (11.8) 0.2

154 Dexus 2024 Annual Report

154
Note 10 Investments accounted for using the equity method (continued)
c. Summarised financial information for individually material equity accounted investments (continued)

Dexus Australian Logistics Dexus Community Dexus Wholesale Shopping

Trust No.3 Infrastructure Fund Centre Stapled Fund
2024 2023 2024 2023 2024 2023
Statement of Financial Position $m $m $m $m $m $m
Cash and cash equivalents 8.7 1.4 19.0 22.7 18.5 —
Other current assets 1.7 2.1 65.1 61.4 (2.0) —
Non-current assets 262.4 248.4 1,615.4 1,664.8 2,764.1 —
Current borrowings — — — — — —
Other current liabilities (8.3) (5.0) (194.4) (187.0) (70.4) —

Overview
Non-current borrowings — — (130.3) (131.2) (394.0) —
Other non-current liabilities — — — — 2.5 —
Net assets 264.5 246.9 1,374.8 1,430.7 2,318.7 —
Reconciliation to carrying amounts:
Opening balance 246.9 214.5 1,430.7 — — —

Approach
Additions/(redemptions) 18.9 37.6 0.9 1,450.0 2,400.3 —
Profit/(loss) for the year 6.8 2.5 29.8 55.4 36.4 —
Distributions received/receivable (8.1) (7.7) (86.6) (74.7) (118.0) —
Closing balance 264.5 246.9 1,374.8 1,430.7 2,318.7 —
Group's share in $m 134.5 125.6 128.1 73.1 123.8 —
Notional goodwill — — — — — —

Performance
Group's carrying amount 134.5 125.6 128.1 73.1 123.8 —
Statement of Comprehensive Income
Revenue 13.8 12.2 91.1 98.1 153.0 —
Interest income 0.1 0.1 0.4 0.2 1.2 —
Finance costs — — (5.1) (3.8) (35.1) —
Income tax (expense)/benefit — — (0.3) (0.3) (0.4) —
Net profit/(loss) 6.8 2.5 44.1 55.4 36.4 —

Governance
Total comprehensive income/(loss) 6.8 2.5 44.1 55.4 36.4 —

Directors’ report
Financial report
Investor information

155
 Dexus Diversified Infrastructure
Trust Dexus Eagle Street Pier Trust Other1 Total
2024 2023 2024 2023 2024 2023 2024 2023
$m $m $m $m $m $m $m $m
57.9 — 1.0 2.5 94.1 68.2 416.3 323.5
2,006.1 — 1.1 2.0 184.8 1,002.9 2,397.5 1,247.8
— — 216.8 107.8 3,445.2 2,718.0 27,406.3 26,046.6
— — (0.5) (0.5) (21.6) (70.2) (22.6) (71.1)
(50.2) — (12.8) (4.1) (109.1) (103.1) (851.8) (659.6)
— — — — (246.9) (290.9) (2,615.7) (2,437.4)
— — (2.8) (3.2) (312.3) (103.7) (571.0) (349.7)
2,013.8 — 202.8 104.5 3,034.2 3,221.2 26,159.0 24,100.1

— — 104.5 77.3 3,221.2 2,398.5 24,100.1 20,266.5

1,960.5 — 106.2 73.8 77.5 1,034.2 4,760.2 5,339.7
123.3 — (7.9) (46.6) (145.4) (129.3) (1,233.3) (462.3)
(70.0) — — — (119.1) (82.2) (1,468.0) (1,043.8)
2,013.8 — 202.8 104.5 3,034.2 3,221.2 26,159.0 24,100.1
102.7 — 102.5 53.1 636.8 557.3 8,605.2 9,046.7
— — — — 0.3 3.3 0.3 3.3
102.7 — 102.5 53.1 637.1 560.6 8,605.5 9,050.0

134.8 — — 0.2 173.0 119.0 1,802.8 1,319.1

1.2 — 0.1 — 17.1 3.0 44.8 24.2
(0.1) — (0.1) (0.1) (15.7) (28.0) (173.5) (125.4)
— — — — (0.1) (5.0) 0.6 (3.2)
123.3 — (7.9) (46.6) (145.7) (129.3) (1,219.3) (462.3)
123.3 — (7.9) (46.6) (145.7) (129.3) (1,219.3) (462.3)

1 The Group also has interests in a number of immaterial joint ventures and associates that are accounted for using the equity method.

156
156 Dexus 2024 Annual Report
Note 11 Investments accounted for at fair value
The Group’s investments accounted for at fair value consist of interests in Australian trusts, managed property funds and
infrastructure assets. Financial assets are initially recognised at fair value, excluding transaction costs. Transaction costs are
expensed as incurred in the Consolidated Statement of Comprehensive Income. Financial assets are subsequently measured
at fair value with any realised or unrealised gains being recognised in the Consolidated Statement of Comprehensive Income
in the period in which they arise.

a. Financial assets at fair value through profit or loss

2024 2023
$m $m
Equity investments in Australian managed funds 246.4 225.1

Overview
Investments classified as debt in Australian trusts 97.3 206.8
Total financial assets at fair value through profit or loss 343.7 431.9

b. Investment in associates accounted for at fair value

2024 2023
$m $m

Approach
Equity investments in infrastructure assets 9.9 —
Total investments in associates accounted for at fair value 9.9 —

c. Total investments accounted for at fair value

2024 2023

Performance
$m $m
Total financial assets at fair value through profit or loss 343.7 431.9
Total investments in associates accounted for at fair value 9.9 —
Total Investments accounted for at fair value1 353.6 431.9

1 Refer to note 14(b)(iv) for the fair value measurement.

d. Amounts recognised in profit or loss

Governance
During the year, the following gains/(losses) were recognised in profit or loss:

2024 2023
$m $m
Fair value loss on equity investments in Australian managed funds (36.1) (1.1)
Fair value loss on investments classified as debt in Australian trusts (267.1) (27.2)
Fair value gain on equity investments in infrastructure assets 0.6 —
Total fair value losses on investments accounted for at fair value (302.6) (28.3)

Directors’ report
e. Equity price risks
The Group is exposed to equity price risk arising from equity investments in Australian managed funds classified as financial
assets at fair value through profit or loss. The exposure to equity price risk at the end of the reporting period, assuming equity
prices had been 10% higher or lower while all other variables were held constant, would increase/decrease net profit by $24.6
million (2023: $22.5 million).

f. Valuation risks
The Group is exposed to valuation risk on underlying investment property within investments classified as debt in Australian
Financial report

trusts that form part of financial assets at fair value through profit or loss. The estimated impact of changes in valuations of
underlying investment property at the end of the reporting period, assuming the adopted capitalisation rate had been 25
basis points lower or higher while all other variables were held constant, would increase/(decrease) net profit by $48.3 million/
($61.9 million) respectively (2023: $77.0 million/($68.9 million)).
The Group is exposed to valuation risk on the equity investments in infrastructure assets classified as investment in associates
accounted for at fair value. The estimated impact of changes in valuations of underlying investments at the end of the
reporting period, assuming the adopted discount rate had been 25 basis points lower or higher while all other variables were
held constant, would increase/(decrease) net profit by $0.2 million/($0.2 million) respectively (2023: N/A).
Investor information

157
Note 12 Inventories
Development properties held for repositioning, construction and sale are recorded at the lower of cost or net realisable value.
Cost is assigned by specific identification and includes the cost of acquisition, development costs and holding costs such as
borrowing costs, rates and taxes. Holding costs incurred after completion of development are expensed.
Development revenue includes proceeds on the sale of inventory and revenue earned through the provision of development
services on assets sold as inventory. Revenue earned on the provision of development services is recognised using the
percentage complete method. The stage of completion is measured by reference to costs incurred to date as a percentage
of estimated total costs for each contract. Where the project result can be reliably estimated, development services revenue
and associated expenses are recognised in profit or loss. Where the project result cannot be reliably estimated, profits are
deferred and the difference between consideration received and expenses incurred is carried forward as either a receivable
or payable. Development services revenue and expenses are recognised immediately when the project result can be reliably
estimated.
Transfers from investment properties to inventories occur when there is a change in intention regarding the use of the property
from an intention to hold for rental income or capital appreciation purposes to an intention to develop and sell. The transfer
price is recorded as the fair value of the property as at the date of transfer. Commencement of development activities occur
immediately after the transfer.

Critical accounting estimates: Net Realisable Value (NRV) of inventories

NRV is determined using the estimated selling price in the ordinary course of business less estimated costs to bring
inventories to their finished condition, including marketing and selling expenses. NRV is based on the most reliable evidence
available at the time and the amount the inventories are expected to be realised. These key assumptions are reviewed
annually or more frequently if indicators of impairment exist. No impairment provisions have been recognised.

a. Development properties held for sale

2024 2023
$m $m
Current assets
Development properties and trading assets 60.2 30.6
Total current assets - inventories 60.2 30.6

b. Reconciliation

2024 2023
Note $m $m
Opening balance 30.6 54.4
Transfer from investment properties 9 60.0 25.7
Disposals (33.8) (60.4)
Additions 3.4 10.9
Closing balance 60.2 30.6

Note 13 Non-current assets classified as held for sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale
transaction rather than through continuing use, and a sale is considered highly probable.
Non-current assets classified as held for sale are presented separately from the other assets in the Consolidated Statement
of Financial Position. Non-current assets classified as held for sale relate to investment properties measured at fair value.
At 30 June 2024, the balance relates to 130 George Street, Parramatta NSW and 28 Jones Road, Brooklyn VIC.
At 30 June 2023, the balance related to 20 Distribution Drive (Lot CC), Truganina VIC, 8 Nicholson Street, Melbourne VIC, 84
Lahrs Road, Ormeau QLD, 44 Market Street, Sydney NSW, Axxess Corporate Park, Mount Waverley VIC, 1 Margaret Street,
Sydney NSW and 130 George Street, Parramatta NSW.

158 Dexus 2024 Annual Report

Capital and
Capital andfinancial
financialrisk
riskmanagement
management
and working
and workingcapital
capital
In this section
The Group’s overall risk management program focuses on reducing volatility from impacts of movements in financial
markets and seeks to minimise potential adverse effects on the financial performance of the Group.
Note 14 Capital and financial risk management outlines how the Group manages its exposure to a variety of financial risks
(interest rate risk, foreign currency risk, liquidity risk and credit risk) including details of the various derivative financial
instruments entered into by the Group.
The Board of the Responsible Entity determines the appropriate capital structure of the Group, how much is borrowed from
financial institutions and capital markets (debt), and how much is raised from security holders (equity) in order to finance
the Group’s activities both now and in the future. This capital structure is detailed in the following notes:
– Debt: Interest bearing liabilities in note 15, Lease liabilities in note 16, and Commitments and contingencies in note 17

Overview
– Equity: Contributed equity in note 18 and Reserves in note 19.
Note 20 provides a breakdown of the working capital balances held in the Consolidated Statement of Financial Position.

Note 14 Capital and financial risk management

Approach
Capital and financial risk management is carried out through a centralised treasury function which is governed by a Board
approved Treasury Policy. The Group has an established governance structure which consists of the Executive Committee and
Capital Markets Committee.
The Board has appointed an Executive Committee responsible for achieving Dexus’ goals and objectives, including the
prudent financial and risk management of the Group. A Capital Markets Committee has been established to advise the
Executive Committee.
The Capital Markets Committee is a management committee that is accountable to the Board. It convenes at least four times

Performance
per annum and conducts a review of financial risk management exposures including liquidity, funding strategies and hedging.
It is also responsible for the development of financial risk management policies and funding strategies for recommendation to
the Board, and the approval of treasury transactions within delegated limits and powers.

a. Capital risk management

The Group manages its capital to ensure that entities within the Group will be able to continue as a going concern while
maximising the return to owners through the optimisation of the debt and equity balance.

Governance
The capital structure of the Group consists of debt, cash and cash equivalents and equity attributable to security holders. The
Group continuously monitors its capital structure and it is managed in consideration of the following factors:
– The cost of capital and the financial risks associated with each class of capital
– Gearing levels and other debt covenants
– Potential impacts on net tangible assets and security holders’ equity
– Potential impacts on the Group’s credit rating
– Other market factors

Directors’ report
The Group has a stated target gearing level of 30% to 40%. The table below details the calculation of the gearing ratio in
accordance with its primary financial covenant requirements.
2024 2023
$m $m
Total interest bearing liabilities1,3 4,650.2 5,087.7
Total tangible assets2 14,704.3 17,316.7
Gearing ratio 31.6% 29.4%
Gearing ratio (look-through)4 32.6% 30.3%
Financial report

1 Total interest bearing liabilities excludes deferred borrowing costs and includes the impact of foreign currency fluctuations of cross-currency interest
rate swaps.
2 Total tangible assets comprise total assets less intangible assets and derivatives.
3 Total borrowings excludes borrowings in equity accounted investments and the Group’s share of co-investments in pooled funds.
4 Adjusted for cash and debt in equity accounted investments and excluding the Group’s share of co-investments in pooled funds. Look-through
gearing including the Group’s share of equity accounted co-investments in pooled funds was 33.9% as at 30 June 2024 (2023: 31.7%).
Investor information

159

159
Note 14 Capital and financial risk management (continued)
a. Capital risk management (continued)
The Group is rated A- by Standard & Poor’s (S&P) and A3 by Moody’s. The Group is required to comply with certain financial
covenants in respect of its interest bearing liabilities. During the 2024 and 2023 reporting periods, the Group was in
compliance with all of its financial covenants.
DXFM is the Responsible Entity for the managed investment schemes (DPT and DXO) that are stapled to form the Group. The
Responsible Entity has been issued with an Australian Financial Services Licence (AFSL). The licence is subject to certain capital
requirements including the requirement to maintain liquidity above specified limits. The Responsible Entity must also prepare
rolling cash projections over at least the next 12 months and demonstrate it will have access to sufficient financial resources to
meet its liabilities that are expected to be payable over that period. Cash projections and assumptions are approved, at least
quarterly, by the Board of the Responsible Entity.
AFSLs have been issued to the following wholly owned entities:
– Dexus Wholesale Property Limited (DWPL), as the responsible entity for Dexus Wholesale Property Fund (DWPF)
– Dexus Wholesale Management Limited (DWML), as the trustee of third party managed funds
– Dexus Wholesale Funds Limited (DWFL), as the responsible entity for Dexus Healthcare Property Fund (DHPF)
– Dexus Investment Management Limited (DIML), as the responsible entity for Dexus Industrial Fund (DIF)
– Dexus Asset Management Limited (DXAM), as the responsible entity of Dexus Convenience Retail REIT (DXC), Dexus Industria
REIT (DXI) and other third party managed funds
– Dexus RE Limited (DXRE), as the responsible entity for APD Trust, a wholly owned entity
– Dexus Capital Funds Management Limited (DCFM), as the responsible entity of third party managed funds
– Dexus Capital Investment Services Pty Limited (DCIS), as the trustee of third party managed funds
– Dexus Capital Investors Limited (DCIL), as the trustee of third party managed trusts

Certain group entities are subject to capital and liquidity requirements under their respective AFSLs. Refer to note 26 for further
details. All capital requirements were complied with during the year.

b. Financial risk management

The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the financial performance of the Group. The Group’s principal financial instruments, other than
derivatives, comprise cash, bank loans and capital markets issuance. The main purpose of financial instruments is to manage
liquidity and hedge the Group’s exposure to financial risks namely:
– Interest rate risk
– Foreign currency risk
– Liquidity risk
– Credit risk

The Group uses derivatives to reduce the Group’s exposure to fluctuations in interest rates and foreign exchange rates. These
derivatives create an obligation or a right that effectively transfers one or more of the risks associated with an underlying
financial instrument, asset or obligation. Derivative financial instruments that the Group may use to hedge its risks include:
– Interest rate swaps and interest rate options (together interest rate derivatives)
– Cross-currency interest rate swaps and foreign exchange contracts
– Other derivative contracts

The Group does not trade in interest rate or foreign exchange related derivative instruments for speculative purposes. The
Group uses different methods to measure the different types of risks to which it is exposed, including monitoring the current
and forecast levels of exposure and conducting sensitivity analysis.

i. Market risk
Interest rate risk
Interest rate risk arises from interest bearing financial assets and liabilities that the Group utilises. Non-derivative interest
bearing financial instruments are predominantly short term liquid assets and long term debt issued at fixed rates which expose
the Group to fair value interest rate risk as the Group may pay higher interest costs than if it were at variable rates. The
Group’s cash and borrowings which have a variable interest rate give rise to cash flow interest rate risk due to movements in
variable interest rates.
The Group’s risk management policy for interest rate risk seeks to minimise the effects of interest rate movements on its asset
and liability portfolio through active management of the exposures. The policy prescribes minimum and maximum hedging
amounts for the Group, which is managed on a portfolio basis.

160 Dexus 2024 Annual Report

Note 14 Capital and financial risk management (continued)
b. Financial risk management (continued)
i. Market risk (continued)
Interest rate risk (continued)
The Group maintains a mix of offshore and local currency fixed rate and variable rate debt, as well as a mix of long term and
short term debt. The Group primarily enters into interest rate derivatives and cross-currency interest rate swap agreements to
manage the associated interest rate risk. The Group hedges the interest rate and currency risk on its foreign currency
borrowings by entering into cross-currency interest rate swaps, which have the economic effect of converting foreign currency
borrowings to local currency borrowings at contracted rates. The derivative contracts are recorded at fair value in the
Consolidated Statement of Financial Position, using standard valuation techniques with market inputs.
As at 30 June 2024, 90% (2023: 84%) of the interest bearing liabilities of the Group were hedged. The average hedged

Overview
percentage for the financial year was 92% (2023: 86%).
Interest rate derivatives require settlement of net interest receivable or payable generally each 90 or 180 days. The settlement
dates coincide with the dates on which the interest is payable on the underlying debt. The receivable and payable legs on
interest rate derivative contracts are settled on a net basis. The net notional amount of average fixed rate debt and interest
rate derivatives in place in each year and the weighted average effective hedge rate is set out below:
June 2025 June 2026 June 2027 June 2028 June 2029

Approach
$m $m $m $m $m
A$ fixed rate debt 1,870.0 1,746.7 1,663.3 1,213.3 955.0
A$ interest rate derivatives 2,200.0 2,818.8 2,200.0 1,167.7 200.0
Combined fixed rate debt and
4,070.0 4,565.5 3,863.3 2,381.0 1,155.0
derivatives (A$ equivalent)
Hedge rate (%) 2.05% 3.08% 3.10% 2.81% 1.79%

Performance
Amounts do not include fixed rate debt that has been swapped to floating rate debt through cross-currency interest rate
swaps.

Sensitivity analysis on interest expense

The table below shows the impact on the Group’s net interest expense of a 100 basis point movement in market interest rates.
The sensitivity on cash flow arises due to the impact that a change in interest rates will have on the Group’s floating rate debt
and derivative cash flows on average during the financial year. Net interest expense is only sensitive to movements in market
rates to the extent that floating rate debt is not hedged.

Governance
2024 2023
(+/-) $m (+/-) $m
+/- 1% (100 basis points) 5.1 7.0
Total A$ equivalent 5.1 7.0

The movement in interest expense is proportional to the movement in interest rates.

Sensitivity analysis on fair value of interest rate derivatives

Directors’ report
The sensitivity analysis on interest rate derivatives below shows the effect on net profit or loss of changes in the fair value of
interest rate derivatives for a 100 basis point movement in market interest rates. The sensitivity on fair value arises from the
impact that changes in market rates will have on the valuation of the interest rate derivatives.
The fair value of interest rate derivatives is calculated as the present value of estimated future cash flows on the instruments.
Although interest rate derivatives are transacted for the purpose of providing the Group with an economic hedge, the Group
has elected not to apply hedge accounting to these instruments. Accordingly, gains or losses arising from changes in the fair
value are reflected in the profit or loss.
2024 2023
(+/-) $m (+/-) $m
Financial report

+/- 1% (100 basis points) 70.8 63.7

Total A$ equivalent 70.8 63.7

Sensitivity analysis on fair value of cross-currency interest rate swaps

The sensitivity analysis on cross-currency interest rate swaps below shows the effect on net profit or loss for changes in the fair
value for a 100 basis point increase and decrease in short-term and long-term market rates. The sensitivity on fair value arises
from the impact that changes in short-term and long-term market rates will have on the valuation of the cross-currency
interest rate swaps. The sensitivity analysis excludes the impact of hedge-accounted cross-currency interest rate swaps.
Investor information

2024 2023
(+/-) $m (+/-) $m
+/- 1% (100 basis points) US$ (A$ equivalent) 0.0 0.0
Total A$ equivalent 0.0 0.0

161
Note 14 Capital and financial risk management (continued)
b. Financial risk management (continued)
i. Market risk (continued)
Foreign currency risk
Foreign currency risk refers to the risk that the value or the cash flows arising from a financial commitment, or recognised asset
or liability will fluctuate due to changes in foreign currency rates. The Group’s foreign currency risk arises primarily from
borrowings denominated in foreign currency.
The objective of the Group’s foreign exchange risk management policy is to ensure that movements in exchange rates have
minimal adverse impact on the Group’s foreign currency assets and liabilities. Refer to note 15 for the US$ foreign currency
exposures and management thereof via cross-currency interest rate swaps.
Foreign currency assets and liabilities
Where foreign currency borrowings are used to fund Australian investments, the Group transacts cross-currency interest rate
swaps to reduce the risk that movements in foreign exchange rates will have an impact on security holder equity and net
tangible assets.

ii. Liquidity risk

Liquidity risk is associated with ensuring that there are sufficient funds available to meet the Group’s financial commitments as
and when they fall due and planning for any unforeseen events which may curtail cash flows. The Group identifies and
manages liquidity risk across the following categories:
– Short-term liquidity risk management through ensuring the Group has sufficient liquid assets, working capital and
borrowings facilities to cover short-term financial obligations; and
– Funding and refinancing liquidity risk management through ensuring an adequate spread of maturities of borrowing facilities
so that refinancing risk is not concentrated in certain time periods and ensuring an adequate diversification of funding
sources where possible, subject to market conditions.

Refinancing risk
Refinancing risk is the risk that the Group:
– Will be unable to refinance its debt facilities as they mature
– Will only be able to refinance its debt facilities at unfavourable interest rates and credit market conditions (margin price risk)

The Group’s key risk management strategy for margin price risk on refinancing is to spread the maturities of debt facilities over
different time periods to reduce the volume of facilities to be refinanced and the exposure to market conditions in any one
period.

2024 2023
Within Between Between After Within Between Between After
one one and two and five one one and two and five
year two years five years years year two years five years years
$m $m $m $m $m $m $m $m
Payables (194.8) — — — (197.0) — — —
Lease liabilities (11.8) (23.9) (37.9) (57.6) (2.1) (2.3) (6.4) (3.8)
Total payables and lease
(206.6) (23.9) (37.9) (57.6) (199.1) (2.3) (6.4) (3.8)
liabilities

Interest bearing liabilities

Fixed interest rate liabilities (297.1) (531.0) (1,533.3) (1,612.4) (525.6) (293.6) (1,810.7) (1,789.8)
Floating interest rate liabilities (141.5) (696.3) (1,119.5) (403.6) (121.0) 752.0 (1,045.7) (405.0)

Total interest bearing liabilities (438.6) (1,227.3) (2,652.8) (2,016.0) (646.6) 458.4 (2,856.4) (2,194.8)

Derivative financial liabilities

Cash receipts 213.9 293.9 752.9 622.0 118.4 228.2 832.2 835.1
Cash payments (191.8) (216.0) (592.2) (562.5) (120.8) (200.8) (649.4) (714.7)
Total net derivative financial
22.1 77.9 160.7 59.5 (2.4) 27.4 182.8 120.4
instruments1

1 The notional maturities on derivatives are shown for cross-currency interest rate swaps (refer to interest rate risk) as they are the only instruments where
a principal amount is exchanged. For interest rate derivatives, only the net interest cash flows (not the notional principal) are included. Refer to note
14(c) for fair value of derivatives. Refer to note 17(b) for financial guarantees.

162 Dexus 2024 Annual Report

Note 14 Capital and financial risk management (continued)
b. Financial risk management (continued)
iii. Credit risk
Credit risk is the risk that the counterparty will not fulfil its obligations under the terms of a financial instrument and will cause
financial loss to the Group. The Group has exposure to credit risk on financial assets included in the Group’s Consolidated
Statement of Financial Position.
The Group manages this risk by:
– Adopting a process for determining an approved counterparty, with consideration of qualitative factors as well as the
counterparty’s credit rating
– Regularly monitoring counterparty exposure within approved credit limits that are based on the lower of an S&P and
Moody’s credit rating. The exposure includes the current market value of in-the-money contracts and the potential

Overview
exposure, which is measured with reference to credit conversion factors as per APRA guidelines
– Entering into International Swaps and Derivatives Association (ISDA) Master Agreements once a financial institution
counterparty is approved
– For some trade receivables, obtaining collateral where necessary in the form of bank guarantees and tenant bonds
– Regularly monitoring loans and receivables on an ongoing basis

Approach
A minimum S&P rating of A– (or Moody’s equivalent) is required to become or remain an approved counterparty unless
otherwise approved by the Responsible Entity’s Board.
The Group is exposed to credit risk on cash balances and on derivative financial instruments with financial institutions. The
Group has a policy that sets limits as to the amount of credit exposure to each financial institution. New derivatives and cash
transactions are limited to financial institutions that meet minimum credit rating criteria in accordance with the Group’s policy
requirements.
Financial instrument transactions are spread among a number of approved financial institutions within specified credit limits to

Performance
minimise the Group’s exposure to any one counterparty. As a result, there is no significant concentration of credit risk for
financial instruments. The maximum exposure to credit risk at 30 June 2024 is the carrying amounts of financial assets
recognised on the Consolidated Statement of Financial Position.
The Group is exposed to credit risk on trade receivable balances. The Group has a policy to assess and monitor the credit
quality of trade debtors on an ongoing basis. Given the historical profile and exposure of the trade receivables, it has been
determined that no significant concentrations of credit risk exists for receivables balances. The maximum exposure to credit
risk at 30 June 2024 is the carrying amounts of the receivables recognised on the Consolidated Statement of Financial
Position.

Governance
iv. Fair value
The Group uses the following methods in the determination and disclosure of the fair value of assets and liabilities:
Level 1: the fair value is calculated using quoted prices in active markets.
Level 2: the fair value is determined using inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: the fair value is estimated using inputs for the asset or liability that are not based on observable data.

Directors’ report
Equity investments in Australian managed funds are measured at Level 3 having regard to unit prices which are determined by
giving consideration to the net assets of the relevant fund. The unit prices and net asset values are largely driven by the fair
values of investment properties, infrastructure assets and derivatives held by the funds. Recent arm’s length transactions, if
any, are also taken into consideration. The fair value of equity investments in Australian managed funds is impacted by the
price per security of the investment. An increase to the price per security results in an increase to the fair value of the
investment.
Investments classified as debt in Australian trusts are measured at Level 3 using a fair value model.
Equity investments in infrastructure assets are recognised initially at fair value and measured as a Level 3 investment.
Subsequent to initial recognition, infrastructure assets are measured at fair value as determined by an independent valuer,
Financial report

having appropriate recognised professional qualifications and relevant experience in the nature of the investment being
valued. The valuer applies the 'discounted cash flow method' where management's best estimate of expected future cash
flows are discounted to their present value using a market determined risk adjusted discount rate.
All derivative financial instruments were measured at Level 2 for the periods presented in this report.
All investment properties, infrastructure assets, listed securities and derivatives were appropriately measured at Level 1, 2 or 3,
within investments accounted for using the equity method for the periods presented in this report.
During the year, there were no transfers between Level 1, 2 and 3 fair value measurements.
Since cash, receivables and payables are short-term in nature, their fair values are not materially different from their carrying
Investor information

amounts. For the majority of the borrowings, the fair values are not materially different to their carrying amounts, since the
interest payable on those borrowings is either close to current market rates or the borrowings are of a short-term nature.

163
Note 14 Capital and financial risk management (continued)
b. Financial risk management (continued)
iv. Fair value (continued)
Material differences are identified only for the following borrowings:

2024 2024 2023 2023

Carrying Amount Fair value Carrying Amount Fair value
Type Maturity ($m) ($m) ($m) ($m)
USD borrowing 2025-2033 1,534.5 1,544.6 1,586.5 1,619.7
MTN 2026-2039 1,043.8 901.8 1,043.9 874.2
AUD USPP 2028-2039 325.0 308.2 325.0 300.2
Exchangeable note 2028 462.0 486.3 761.8 799.9

Critical accounting estimates: fair value of derivatives and interest bearing liabilities
The fair value of derivatives and interest bearing liabilities has been determined based on observable market inputs
(interest rates) and applying a credit or debit value adjustment based on the current credit worthiness of counterparties
and the Group.

v. Offsetting financial assets and financial liabilities

Financial assets and liabilities are offset and the net amount reported in the Consolidated Statement of Financial Position
where there is a legally enforceable right to set-off the recognised amounts and there is an intention to settle on a net basis,
or realise the asset and settle the liability simultaneously. No financial assets and liabilities are currently held under netting
arrangements.
Master netting arrangements – not currently enforceable
Agreements with derivative counterparties are based on an ISDA Master Agreement. Under the terms of these arrangements,
where certain credit events occur (such as default), the net position owing/receivable to a single counterparty in the same
currency will be taken as owing and all the relevant arrangements terminated. As the Group does not presently have a legally
enforceable right of set-off, these amounts have not been offset in the Consolidated Statement of Financial Position.

c. Derivative financial instruments

A derivative is a type of financial instrument typically used to manage risk. A derivative’s value changes over time in response
to an underlying benchmark, such as interest rates, exchange rates, or asset values, and is entered into for a fixed period. A
hedge is where a derivative is used to manage an underlying exposure.
Written policies and limits are approved by the Board of Directors of the Responsible Entity, in relation to the use of financial
instruments to manage financial risks. The Responsible Entity regularly reviews the Group’s exposures and updates its treasury
policies and procedures. The Group does not trade in interest rate or foreign exchange related derivative instruments for
speculative purposes.
The Group uses the following types of derivative contracts as part of its financial and business strategy. Derivative contracts
may cover interest rate, foreign currency and equity market movements but also include option contracts embedded in the
Group’s Exchangeable note borrowings.
1. Interest rate derivative contracts – the Group uses interest rate derivative contracts to manage the risk of movements in
variable interest rates on the Group’s Australian dollar denominated borrowings.
2. Cross-currency interest rate swap contracts – the Group uses cross-currency interest rate swap contracts to manage the
risk of movements in interest rates and fair values of foreign currencies associated with its foreign denominated
borrowings.
3. Other derivative contracts – other derivative contracts include embedded option contracts within the Group's
Exchangeable note borrowings (see note 15(e)).

164 Dexus 2024 Annual Report

Note 14 Capital and financial risk management (continued)
c. Derivative financial instruments (continued)
Derivatives are measured at fair value with any changes in fair value recognised either in the Consolidated Statement of
Comprehensive Income, or directly in equity where hedge accounted.
At inception the Group can elect to formally designate and document the relationship between certain hedge derivative
instruments and the associated hedged items, along with its risk management objectives and its strategy for undertaking
various hedge transactions.
The only derivatives designated by the Group in hedge relationships are cross-currency interest rate swap contracts used to
hedge foreign denominated borrowings.
The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the financial
instrument is effective in offsetting changes in fair values or cash flows of the hedged item attributable to the hedged risk. The

Overview
hedging relationship is deemed effective when all of the following requirements are met:
– There is an economic relationship between the hedged item and the hedging instrument
– The effect of credit risk does not dominate the changes in value that result from that economic relationship
– The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the
Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of
hedged item

Approach
The Group uses cross-currency interest rate swap contracts to hedge interest rate risk and foreign exchange risk associated
with foreign denominated borrowings issued by the Group. The Group designates the cross-currency interest rate swap
contracts as:
– Fair value hedges against changing interest rates on foreign denominated borrowings
– Cash flow hedges or fair value hedges against foreign currency exposure on foreign denominated borrowings

Performance
The foreign currency basis spread of a cross-currency interest rate swap is excluded from the designation of that financial
instrument as the hedging instrument. Changes in the fair value of the foreign currency basis spread of a financial instrument
are accumulated in the foreign currency basis spread reserve and are amortised to profit or loss on a rational basis over the
term of the hedging relationship.
As the critical terms of the cross-currency interest rate swap contracts and their corresponding hedged items match, the
Group performs a qualitative assessment of effectiveness. The main source of hedge ineffectiveness in these hedge
relationships is the effect of the counterparty and the Group’s own credit risk on the fair value of the cross-currency interest
rate swap contracts, which is not reflected in the fair value of the hedged item attributable to the change in interest rates. No
other sources of ineffectiveness emerged from these hedging relationships.

Governance
The Group has applied the hedge ratio of 1:1 to all hedge relationships.

Fair value hedge – cross-currency interest rate swap contracts

A fair value hedge is a hedge of the exposure to changes in fair value of an asset or liability that is attributable to a particular
risk and could affect the Consolidated Statement of Comprehensive Income. Changes in the fair value of cross-currency
interest rate swap contracts that are designated as fair value hedges are recorded in profit or loss, together with any
changes in the fair value of the interest rates on foreign denominated borrowings, and fair value of the foreign denominated

Directors’ report
borrowings themselves.
If the hedge no longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged item for
which the effective interest method is used is amortised to profit or loss over the period to maturity using a recalculated
effective interest rate.

Cash flow hedge – cross-currency interest rate swap contracts

A cash flow hedge is a hedge of the exposure to variability in cash flows attributable to a particular risk to a highly probable
forecast transaction pertaining to an asset or liability. The effective portion of changes in the fair value of cross-currency
interest rate swap contracts that are designated as cash flow hedges is recognised in other comprehensive income in equity
Financial report

via the cash flow hedge reserve. Amounts accumulated in equity are reclassified to profit or loss in the periods when the
payments associated with the underlying foreign denominated borrowings affect profit or loss. Any gain or loss related to
ineffectiveness is recognised in profit or loss immediately.
Hedge accounting is discontinued when each cross-currency interest rate swap contract expires, is terminated, is no longer in
an effective hedge relationship, is de-designated, or the forecast underlying payments are no longer expected to occur. The
fair value gain or loss of derivatives recorded in equity is recognised in profit or loss over the period that the forecast payments
are recorded in profit or loss. If the forecast payments are no longer expected to occur, the cumulative gain or loss in equity is
recognised in profit or loss immediately.
Investor information

165
Note 14 Capital and financial risk management (continued)
c. Derivative financial instruments (continued)

2024 2023
$m $m
Current assets
Interest rate derivative contracts 60.6 64.7
Cross-currency interest rate swap contracts 67.9 33.9
Total current assets - derivative financial instruments 128.5 98.6

Non-current assets
Interest rate derivative contracts 59.0 105.0
Cross-currency interest rate swap contracts 262.1 280.5
Total non-current assets - derivative financial instruments 321.1 385.5

Current liabilities
Cross-currency interest rate swap contracts 21.7 6.6
Exchangeable note contracts — 26.0
Total current liabilities - derivative financial instruments 21.7 32.6

Non-current liabilities
Cross-currency interest rate swap contracts 9.8 —
Exchangeable note contracts 24.3 53.4
Total non-current liabilities - derivative financial instruments 34.1 53.4
Net derivative financial instruments 393.8 398.1

The table below details a breakdown of the net fair value gain on derivatives in the Consolidated Statement of
Comprehensive Income.

2024 2023
$m $m
Net fair value gain/(loss) of derivatives
Cross-currency interest rate swap contracts 13.9 (72.9)
Interest rate derivative contracts (52.6) (3.4)
Exchangeable note contracts 36.0 8.7
Total net fair value loss of derivatives (2.7) (67.6)

Effects of hedge accounting on the financial position and performance – quantitative information
The following table details the notional principal amounts and remaining terms of the hedging instrument (cross-currency
interest rate swap) at the end of the financial year:

Notional Amount of the Hedging Instrument ($m)

Under 1 year 1-2 years 2-5 years Over 5 years
Foreign exchange risk and interest rate risk - Cross currency interest rate swap (hedging foreign currency debt)1
Average contracted FX rate (AUD/USD) 0.8676 0.8660 0.8397 0.7656
Average contracted fixed USD rate 2.2071 2.1684 2.2226 2.0608
Average notional amount 1,256.4 1,131.7 976.6 502.9
Interest rate risk - Cross currency interest rate swap (hedging foreign currency debt)1
Average contracted fixed USD rate 1.6625 1.6639 1.6529 1.6474
Average notional amount 1,256.4 1,131.7 976.6 502.9

1 Cross-currency interest rate swaps totalling 1,090 million (USD notional) have been split into cash flow hedge and fair value hedge relationships.

166 Dexus 2024 Annual Report

Note 14 Capital and financial risk management (continued)
c. Derivative financial instruments (continued)
The following tables detail information regarding the cross-currency interest rate swaps designated in cash flow hedge or fair
value hedge relationships at the end of the reporting period and their related hedged items.

Cash flow hedges Fair value hedges

Cross currency Cross currency
interest rate swaps interest rate swaps
$m $m
Current notional principal value of the hedging instrument 1,256.4 1,256.4
Carrying amount of the hedging instrument assets1 14.0 274.6
Cumulative change in fair value of the hedging instrument used for calculating

Overview
13.7 274.6
hedge ineffectiveness
Current fair value notional amount of the hedged item — (1,534.5)
Cumulative change in value of the hedged item used for calculating hedge
(19.0) (278.1)
ineffectiveness
Balance in cash flow hedge reserve (13.7) —
Hedge ineffectiveness recognised in the Consolidated Statement of
— (0.9)
Comprehensive Income 2

Approach
1 The carrying amount is included in the “Derivative financial instruments” line items in the Consolidated Statement of Financial Position.
2 Included in the “Net fair value loss of derivatives” line item in the Consolidated Statement of Comprehensive Income.

The cash flow hedge reserve represents the cumulative amount of gains and losses on hedging instruments deemed effective
in cash flow hedges. The cumulative deferred gain or loss on the hedging instrument is recognised in profit or loss only when
the hedged transaction impacts the profit or loss.

Performance
Foreign
exchange risk
Cash flow hedge reserve and foreign currency basis spread $m
Balance at 1 July 2023 (before tax) 19.1
Movement
Gain arising on changes in fair value of hedging instruments during the year 4.4
Changes in fair value of foreign currency basis spread during the year (1.3)
Transfer out

Governance
(Gain) reclassified to profit or loss – hedged item has affected profit or loss (9.2)
Loss arising on changes in fair value of foreign currency basis spread during the year 1.0
Balance at 30 June 2024 (before tax) 14.0

Note 15 Interest bearing liabilities

Borrowings are initially recognised at fair value net of transaction costs and subsequently measured at amortised cost using
the effective interest rate method. Under the effective interest rate method, any transaction fees, costs, discounts and

Directors’ report
premiums directly related to the borrowings are capitalised to borrowings and amortised in the Consolidated Statement of
Comprehensive Income over the expected life of the borrowings.
If there is a substantial debt modification, the financial liability is derecognised from the Consolidated Statement of Financial
Position and residual capitalised costs expensed to the Consolidated Statement of Comprehensive Income. If there is a non-
substantial debt modification, the balance on the Consolidated Statement of Financial Position is adjusted and the difference
between the fair value of the new facility and carrying value of the original facility is recognised in the Consolidated
Statement of Comprehensive Income.
If there is an effective fair value hedge of borrowings, a fair value adjustment will be applied based on the mark to market
movement in the benchmark component of the borrowings. This movement is recognised in the Consolidated Statement of
Financial report

Comprehensive Income. Refer to note 14(c) for further details.

All borrowings with contractual maturities greater than 12 months after reporting date are classified as non-current liabilities.
Investor information

167
Note 15 Interest bearing liabilities (continued)
The following table summarises the Group's financing arrangements:

2024 2023
Note $m $m
Current
Unsecured
US senior notes1 a. 163.7 67.1
Exchangeable notes e. — 314.7
Total unsecured 163.7 381.8
Total current liabilities - interest bearing liabilities 163.7 381.8
Non-current
Unsecured
US senior notes1 a. 1,695.8 1,844.4
Bank loans b. 1,471.2 1,545.1
Commercial paper c. 95.0 77.5
Medium term notes d. 1,043.8 1,043.9
Exchangeable notes e. 462.0 447.1
Total unsecured 4,767.8 4,958.0
Deferred borrowing costs (21.9) (30.1)
Total non-current liabilities - interest bearing liabilities 4,745.9 4,927.9
Total interest bearing liabilities 4,909.6 5,309.7

1 Includes cumulative fair value adjustments amounting to $111.1 million (2023: $125.6 million) in relation to effective fair value hedges.

Financing arrangements
The following table summarises the maturity profile of the Group’s financing arrangements:

Facility
Utilised Limit
Type of facility Note Currency Security Maturity Date $m $m
US senior notes (USPP)1 a. US$ Unsecured Dec-24 to Nov-32 1,645.6 1,645.6
US senior notes (USPP) a. A$ Unsecured Jun-28 to Oct-38 325.0 325.0
Multi
Multi-option revolving credit facilities b. Unsecured Sep-25 to May-32 1,468.0 4,100.0
Currency
Commercial paper c. A$ Unsecured Dec-25 95.0 100.0
Medium term notes d. A$ Unsecured Nov-25 to Aug-38 1,043.8 1,043.8
Exchangeable notes e. A$ Unsecured Nov-27 462.0 462.0
Total 5,039.4 7,676.4
Bank guarantee facility in place2 (175.0)
Unused at balance date 2,462.0

1 Excludes fair value adjustments recorded in interest bearing liabilities in relation to effective fair value hedges.
2 Includes utilised bank guarantees of $139.7 million (2023: $140.9 million).

Each of the Group’s unsecured borrowing facilities are supported by guarantee arrangements and have negative pledge
provisions which limit the amount and type of encumbrances that the Group can have over its assets and ensures that all
senior unsecured debt ranks pari passu.
a. US senior notes (USPP)
This includes a total of US$1,090 million and A$325 million of US senior notes with a weighted average maturity of April 2029.
US$1,090 million is designated as an accounting hedge using cross currency interest rate swaps with the same notional value.

b. Multi-option revolving credit facilities

This includes A$4,100 million of facilities maturing between September 2025 and May 2032 with a weighted average maturity
of June 2028. A$175 million represents bank guarantee facilities available for utilisation for Australian Financial Services
Licences (AFSL) requirements and other business requirements including developments.

c. Commercial paper
This includes a total of A$100 million of Commercial Paper backed by a standby facility maturing in December 2025. The
standby facility has same day availability.

d. Medium term notes

This includes a total of A$1,045.0 million of Medium Term Notes with a weighted average maturity of February 2030. The
remaining A$1.2 million is the net discount on the issue of these instruments.

168 Dexus 2024 Annual Report

Note 15 Interest bearing liabilities (continued)
e. Exchangeable notes
This includes exchangeable notes with a face value of $500.0 million issued on 24 November 2022 and maturing in November
2027. The notes are exchangeable based on the exchange price (currently $8.84 representing approximately 56.5 million
securities) on the exchange date, at the election of the holder, until 10 days prior to maturity on 24 November 2027. Any
securities issued on exchange will rank equally with existing securities. If the notes are not exchanged, they will be redeemed
on maturity at 104.15% of face value. The notes pay a fixed coupon of 3.5% per annum.
During the year, the Group repaid and cancelled $325.0 million of exchangeable notes that were issued on 19 March 2019. In
March 2024, investors exercised their put option for an aggregate face value of A$323.2 million. On 5 April 2024, the Group
exercised a related call option for early repayment and cancellation of the remaining $1.8 million of exchangeable notes. The
repayments were funded from existing borrowing capacity.

Overview
Note 16 Lease liabilities
Under AASB 16 Leases, as a lessee, the Group recognises a right-of-use asset and lease liability on the Consolidated
Statement of Financial Position for all material leases. In relation to leases of low value assets, such as IT equipment, small
items of office furniture or short-term leases with a term of 12 months or less, the Group has elected not to recognise right-of-
use assets and lease liabilities. Instead, the Group recognises the lease payments associated with these leases as an expense
in the Consolidated Statement of Comprehensive Income as incurred over the lease term.

Approach
The Group recognises a right-of-use asset and lease liability on the lease commencement date. The right-of-use asset is
initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses, adjusted for
any remeasurements of the lease liability. The cost of the right-of-use asset includes:
– The amount of initial measurement of the lease liability
– Any lease payments made at or before the commencement date, less any lease incentives received
– Any initial direct costs

Performance
– Make good costs

Right-of-use assets are depreciated on a straight line basis from the commencement date of the lease to the earlier of the
end of the useful life of the asset or the end of the lease term, unless they meet the definition of an investment property.
The Group tests all right-of-use assets for impairment where there is an indicator that the asset may be impaired. If an
impairment exists, the carrying amount of the asset is written down to its recoverable amount as per the requirements of AASB
136 Impairment of Assets.
The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in

Governance
the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its
incremental borrowing rate as the discount rate. The weighted rate applied was 7.06%. Variable lease payments that depend
on an index or rate are included in the lease liability, measured using the index or rate as at the date of lease commencement.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made.
The liability is remeasured when there is a change in future lease payments arising from a change in index or rate or changes
in the assessment of whether an extension option is reasonably certain to be exercised or a termination option is reasonably
certain not to be exercised. Interest costs and variable lease payments not included in the initial measurement of the lease
liability are recognised in the Consolidated Statement of Comprehensive Income in the period to which they relate.

Directors’ report
The Group has applied judgement to determine the lease term for contracts which include renewal and termination options.
The Group’s assessment considered the facts and circumstances that create an economic incentive to exercise a renewal
option or not to exercise a termination option.
The following table details information relating to leases where the Group is a lessee.

2024 2023
Note $m $m
Current
Lease liabilities - ground leases a. 0.9 0.9
Financial report

Lease liabilities - other property leases b. 10.9 1.2

Total current liabilities - lease liabilities 11.8 2.1
Non-current
Lease liabilities - ground leases a. 5.8 6.5
Lease liabilities - other property leases b. 75.0 6.0
Total non-current liabilities - lease liabilities 80.8 12.5
Total liabilities - lease liabilities 92.6 14.6

a. Lease liabilities – ground leases

Investor information

Lease liabilities include ground leases at Parkade, 34-60 Little Collins Street, Melbourne and Waterfront Place, 1 Eagle Street,
Brisbane. Refer to note 9 where the corresponding leased asset is included in the total value of investment properties.
b. Lease liabilities – other property leases
Lease liabilities relating to property leases predominantly relate to Dexus offices. Refer to the Consolidated Statement of
Financial Position for disclosure of the corresponding right-of-use asset.
169
Note 17 Commitments and contingencies
a. Commitments
Capital commitments
The following amounts represent capital expenditure as well as committed fit out or cash incentives contracted at the end of
each reporting period but not recognised as liabilities payable:

2024 2023
$m $m
Investment properties 108.4 128.1
Investments accounted for using the equity method 569.2 446.8
Investments accounted for at fair value 661.6 740.9
Inventories and development management services 51.1 54.1
Non-current assets classified as held for sale — —
Total capital commitments 1,390.3 1,369.9

Lease receivable commitments

The future minimum lease payments receivable by the Group are:

2024 2023
$m $m
Within one year 242.7 360.7
Later than one year but not later than five years 617.6 1,039.2
Later than five years 233.7 479.5
Total lease receivable commitments 1,094.0 1,879.4

b. Contingencies
DPT and DXO are guarantors of A$7,676.4 million (2023: A$8,042.8 million) of interest bearing liabilities (refer to note 15). The
guarantees have been given in support of debt outstanding and drawn against these facilities and may be called upon in the
event that a borrowing entity has not complied with certain requirements such as failure to pay interest or repay a borrowing,
whichever is earlier. During the period no guarantees were called.
The Group has bank guarantees of A$139.7 million, comprising A$91.2 million held to comply with the terms of the Australian
Financial Services Licences (AFSL) and A$48.5 million largely in respect of developments, with $35.3 million available for other
corporate purposes.
The above guarantees are issued in respect of the Group and represent an additional commitment to those already existing
in interest bearing liabilities on the Consolidated Statement of Financial Position.
Outgoings are excluded from contingencies as they are expensed when incurred.
The Directors of the Responsible Entity are not aware of any other contingent liabilities in relation to the Group, other than
those disclosed in the Notes to the Consolidated Financial Statements, which should be brought to the attention of security
holders as at the date of these Consolidated Financial Statements.

Note 18 Contributed equity

2024 2023
No. of No. of
securities securities
Opening balance 1,075,565,246 1,075,565,246
Closing balance 1,075,565,246 1,075,565,246

Each stapled security ranks equally with all other stapled securities for the purposes of distributions and on termination of the
Group.
Each stapled security entitles the holder to vote in accordance with the provisions of the Constitutions and the Corporations
Act 2001.
During the 12 months to 30 June 2024, no Dexus securities were issued or cancelled.

170 Dexus 2024 Annual Report

Note 19 Reserves
2024 2023
$m $m
Asset revaluation reserve — 42.7
Cash flow hedge reserve 13.7 18.5
Foreign currency basis spread reserve 0.3 0.6
Security-based payments reserve 20.7 14.9
Treasury securities reserve (20.7) (20.8)
Foreign currency translation reserve (0.2) —
Total reserves 13.8 55.9

Overview
Movements:
Asset revaluation reserve
Opening balance 42.7 42.7
Transfer to retained earnings (42.7) —
Closing balance — 42.7
Cash flow hedge reserve
Opening balance 18.5 16.8

Approach
Changes in the fair value of cash flow hedges (4.8) 1.7
Closing balance 13.7 18.5
Foreign currency basis spread reserve
Opening balance 0.6 0.4
Changes in cost of hedge reserve (0.3) 0.2
Closing balance 0.3 0.6
Security-based payments reserve

Performance
Opening balance 14.9 13.3
Issue of securities to employees (11.7) (8.8)
Security-based payments expense 17.5 10.4
Closing balance 20.7 14.9
Treasury securities reserve
Opening balance (20.8) (22.1)
Issue of securities to employees 11.7 8.8
Purchase of securities (11.6) (7.5)

Governance
Closing balance (20.7) (20.8)
Foreign currency translation reserve
Opening balance — —
Exchange differences on translation of foreign operations (0.2) —
Closing balance (0.2) —

Nature and purpose of reserves

Directors’ report
Asset revaluation reserve
The asset revaluation reserve is used to record the fair value adjustment arising on a business combination.
The balance of this reserve was transferred to retained profits during the year.
Cash flow hedge reserve
The cash flow hedge reserve is used to record the effective portion of changes in the fair value of derivatives that are
designated as cash flow hedges.
Foreign currency basis spread reserve
Financial report

The foreign currency basis spread reserve is used to record the changes in the fair value of cross-currency derivatives
attributable to movements in foreign currency basis spreads and represents a cost of hedging.
Security-based payments reserve
The security-based payments reserve is used to recognise the fair value of performance rights to be issued under the Deferred
Short Term Incentive Plans (DSTI), Long Term Incentive Plans (LTI) and Senior Management Retention Awards. Refer to note 25
for further details.
Treasury securities reserve
The treasury securities reserve is used to record the acquisition of securities purchased to fulfil the obligations of the DSTI, LTI
Investor information

and Senior Management Retention Awards. As at 30 June 2024, DXS held 2,900,349 stapled securities which includes 1,657,718
acquired during the year net of 1,302,637 vested during the year (2023: 931,986).
Foreign currency translation reserve
The foreign currency translation reserve is used to record the exchange differences arising from the translation of the financial
operations of foreign subsidiaries.
171
Note 20 Working
Working capital
capital
a. Cash and cash
cash equivalents
equivalents
Cash and
and cash
cash equivalents
equivalents include
includecash
cashononhand,
hand,deposits
depositsheld
heldatatcall
callwith
withfinancial
financialinstitutions and
institutions other
and short-term,
other highly
short-term, highly
liquid investments
liquid investments with
with original
originalmaturities
maturitiesofofthree
threemonths
monthsororless
lessthat
thatarearereadily
readilyconvertible
convertibletoto known
knownamounts
amounts ofof
cash and
cash and
which are
which are subject
subject to
to an
an insignificant
insignificantrisk
riskof
ofchanges
changesininvalue.
value.

b. Receivables
b. Receivables
Rental income
Rental income and
and management
managementfees
feesare
arebrought
broughtto
toaccount
accounton
onan
anaccrual
accrualbasis.
basis.
Dividends and
Dividends and distributions
distributionsare
arerecognised
recognisedwhen whendeclared
declaredand,
and,ififnot
notreceived
receivedatatthe
theend
endofofthe reporting
the period,
reporting reflected
period, reflectedin in
the Consolidated
the Consolidated Statement
Statementof ofFinancial
FinancialPosition
Positionasasaareceivable.
receivable.
Trade and
Trade and other
other receivables
receivablesarearerecognised
recognisedinitially
initiallyat
atfair
fairvalue
valueand
andsubsequently
subsequentlymeasured
measuredatat amortised
amortisedcost using
cost usingthe
the
effective interest rate method, less provision for expected credit losses. Trade receivables are required to be settled
effective interest rate method, less provision for expected credit losses. Trade receivables are required to be settled within within 3030
days and
days and are
are assessed
assessed onon an
anongoing
ongoingbasis
basisfor
forimpairment.
impairment.Receivables
Receivableswhich
whichare
areknown
knowntotobebeuncollectable are
uncollectable arewritten offoff
written
by reducing
by reducing the
the carrying
carrying amount
amountdirectly.
directly.
A provision for expected credit losses is recognised for expected credit losses on trade and other receivables. The provision for
A provision for expected credit losses is recognised for expected credit losses on trade and other receivables. The provision for
expected credit losses is the difference between the asset’s carrying amount and the present value of estimated future cash
expected credit losses is the difference between the asset’s carrying amount and the present value of estimated future cash
flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted as
flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted as
the effect of discounting is immaterial.
the effect of discounting is immaterial.
The calculation of expected credit losses relating to rent and other receivables requires judgement to assess the future
The calculation of expected credit losses relating to rent and other receivables requires judgement to assess the future
uncertainty of tenants’ ability to pay their debts. Expected credit losses have been estimated using a provision matrix that has
uncertainty of tenants’ ability to pay their debts. Expected credit losses have been estimated using a provision matrix that has
been developed with reference to the Group’s historical credit loss experience, general economic conditions and forecasts,
been developed with reference to the Group’s historical credit loss experience, general economic conditions and forecasts,
assumptions around rent relief that may be provided to tenants and tenant risk factors such as size, industry exposure and the
assumptions around rent relief that may be provided to tenants and tenant risk factors such as size, industry exposure and the
Group’s understanding of the ability of tenants to pay their debts. Accordingly, expected credit losses include both the part of
Group’s understanding of the ability of tenants to pay their debts. Accordingly, expected credit losses include both the part of
the rent receivable that is likely to be waived and any additional amount relating to credit risk associated with the financial
the
conditionreceivable
rent that is likely to be waived and any additional amount relating to credit risk associated with the financial
of the tenant.
condition of the tenant.
In relation to distributions and fees receivables, an assessment has been performed taking into consideration the ability of the
In relation
funds and to distributions
mandates and fees
managed receivables,
by the an assessment
Group to cash-settle theirhas been performed
distributions and paytaking into outstanding.
their fees consideration the ability of the
funds and mandates managed by the Group to cash-settle their distributions and pay their fees outstanding.
For any provisions for expected credit losses, the corresponding expense has been recorded in the Consolidated Statement of
For any provisions
Comprehensive for expected
Income credit losses,
within property the corresponding expense has been recorded in the Consolidated Statement of
expenses.
Comprehensive Income within property expenses.
2024 2023
2024 2023
$m $m
Rent receivable1 $m
11.3 7.5$m
1
Rent
Less: receivable
provision for expected credit losses 11.3
(3.2) (4.0)7.5
Less:
Total provision for expected credit losses
rent receivables (3.2)
8.1 (4.0)
3.5
Total rent receivables
Distributions receivable 63.98.1 58.13.5
Distributions
Fees receivablereceivable 63.9
106.5 79.658.1
Fees receivable
Other receivables 106.5
40.1 10.679.6
Other receivables
Total other receivables 40.1
210.5 148.3 10.6
Total other receivables
Total receivables 210.5
218.6 148.3
151.8
Total receivables
1 Rent receivable includes outgoings recoveries.
218.6 151.8
1 Rent receivable includes outgoings recoveries.
The provision for expected credit losses for rent receivables (which includes outgoings recoveries) as at 30 June 2024 was
The provision
determined asfor expected credit losses for rent receivables (which includes outgoings recoveries) as at 30 June 2024 was
follows:
determined as follows:
$m Sector
$m
30 June 2024 Office Sector
Industrial Total
1
30
0-30June 2024
days Office
1.2 Industrial
0.1 Total
1.3
1
0-30
31-60 days
days 0.21.2 —0.1 0.21.3
31-60
61-90 days 0.2
0.1 —— 0.10.2
61-90 days
91+ days 1.40.1 0.2 — 1.60.1
Total
91+ provision for expected credit losses
days 2.91.4 0.30.2 3.21.6
1 Total provision
0-30 days for
includes expected
deferred credit losses
rent receivable but not due. 2.9 0.3 3.2
1 0-30 days includes deferred rent receivable but not due.
The provision for expected credit losses for distributions receivable, fees receivable and other receivables that has been
recorded
The is minimal.
provision for expected credit losses for distributions receivable, fees receivable and other receivables that has been
recorded is minimal.
The provision for expected credit losses for rent receivables as at the reporting date reconciles to the opening loss allowances
as follows:
The provision for expected credit losses for rent receivables as at the reporting date reconciles to the opening loss allowances
as follows:
2024 2023
$m
2024 $m
2023
Opening balance 4.0
$m 7.6$m
Provision recognised/(reversed)
Opening balance in profit or loss during the year 0.1
4.0 (3.6)7.6
Receivables
Provision written off during theinyear
recognised/(reversed) asoruncollectible
profit loss during the year (0.9)0.1 —
(3.6)
Closing balance
Receivables written off during the year as uncollectible 3.2
(0.9) 4.0 —
Closing
172
balance
Dexus 2024 Annual Report
3.2 4.0

172
Note 20 Working capital (continued)
c. Other current assets

2024 2023
$m $m
Prepayments 18.1 20.8
Net receivable acquired through business combination1 — 42.7
Other 58.2 40.3
Total other current assets 76.3 103.8

1 Refer to note 22 for details.

d. Payables

Overview
2024 2023
$m $m
Trade creditors 31.1 47.1
Accruals 42.1 43.1
Accrued capital expenditure 53.2 29.6

Approach
Prepaid income 14.3 20.5
Accrued interest 37.6 37.2
Other payables 16.5 19.5
Total payables 194.8 197.0

e. Provisions
A provision is recognised when an obligation exists as a result of a past event, and it is probable that a future outflow of cash

Performance
or other benefit will be required to settle the obligation.
In accordance with the Trust Constitutions, the Group distributes its distributable income to security holders by cash or
reinvestment. Distributions are provided for when they are approved by the Board of Directors and declared.
Provision for employee benefits relates to the liabilities for wages, salaries, annual leave and long service leave.
Liabilities for employee benefits for wages, salaries and annual leave expected to be settled within 12 months represent
present obligations resulting from employees’ services provided to the end of the reporting period. They are measured based
on remuneration wage and salary rates that the Group expects to pay at the end of the reporting period including related

Governance
on-costs, such as workers compensation, insurance and payroll tax.
The provision for employee benefits for long service leave represents the present value of the estimated future cash outflows,
to be made resulting from employees’ services provided to the end of the reporting period.
The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected
settlement dates based on turnover history.
The provision for employee benefits also includes the employee incentives schemes which are shown separately in note 25.

Directors’ report
2024 2023
$m $m
Current
Provision for distribution 229.2 253.8
Provision for employee benefits 75.8 57.7
Provision for land tax 0.4 0.4
Total current provisions 305.4 311.9

2024 2023
Financial report

$m $m
Non-current
Provision for employee benefits 7.8 10.8
Total non-current provisions 7.8 10.8

2024 2023
$m $m
Provision for distribution
Opening balance 253.8 271.0
Investor information

Additional provisions 516.3 555.0

Payment of distributions (540.9) (572.2)
Closing balance 229.2 253.8

A provision for distribution has been raised for the period ended 30 June 2024. This distribution is to be paid on 29 August
2024.
173
Other disclosures
Other disclosures
In this section
This section includes other information that must be disclosed to comply with the Accounting Standards, the Corporations
Act 2001 or the Corporations Regulations.

Note 21 Intangible assets

The Group's intangible assets comprise management rights, goodwill and capitalised software.
Costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the
Group are recognised as intangible assets. Costs associated with configuration and customisation in a cloud computing
arrangement are recognised as an expense when incurred, unless they are paid to the suppliers of the SaaS arrangement to
significantly customise the cloud-based software for the Group, in which case the costs are recorded as a prepayment for
services and amortised over the expected renewable term of the arrangement. Software is measured at cost and amortised
using the straight line method over its estimated useful life, expected to be three to five years.
Management rights represent the asset management rights owned by subsidiaries of the Group, which entitle the Group to
management fee revenue from both finite life trusts and indefinite life trusts. Those management rights that are deemed to
have a finite useful life held at a value of $5.8 million (2023: $8.7 million) are measured at cost and amortised using the straight
line method over their estimated useful lives of three to five years. Management rights that are deemed to have an indefinite
life are held at a value of $591.6 million (2023: $591.3 million).
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable
assets of the acquired subsidiary at the date of acquisition.
Goodwill and management rights with an indefinite useful life are not subject to amortisation and are tested annually for
impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. An impairment loss
is recognised in the Consolidated Statement of Comprehensive Income for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value
in use. For the purposes of assessing impairment, management rights are grouped at the lowest levels for which there are
separately identifiable cash inflows, which are largely independent of the cash inflows from other assets or groups of assets
(cash generating units). Goodwill has been grouped at the lowest level at which the goodwill is monitored, which may
comprise of a number of cash generating units to which the goodwill relates. Impairment charges recorded in relation to
management rights may be reversed at a future point in time to the extent that the recoverable amount exceeds the carrying
amount. Impairment charges recorded in relation to goodwill cannot be reversed.
Where relevant, the value-in-use has been determined using a five-year discounted cash flow model and applying a terminal
multiple in year five. The fair value less costs of disposal has been determined using a five-year discounted cash flow model
and applying a terminal multiple in year five (2023: a three-year discounted cash flow model and applying a terminal growth
rate in year three). Forecasts were based on projected returns in light of current market conditions and hence classified as a
Level 3 fair value.

Key assumptions: management rights

Judgement is required in determining the following key assumptions used to calculate:
Value in use
– Terminal multiple range of 5 to 12 times (2023: 5 to 12 times) has been applied incorporating an appropriate risk premium.
– Cash flows have been discounted at a post-tax rate of 9.0% (2023: 9.0%) based on externally published weighted
average cost of capital for an appropriate peer group plus an appropriate premium for risk.
– An income growth rate range of 3.0% to 5.5% (2023: 3.0% to 5.5%) has been applied to forecast cash flows based on past
performance and management’s estimate of the future cash flows to be derived from the cash generating units.
Fair value less costs of disposal
– A terminal multiple range of 6 to 12 times (2023: terminal growth rate: 0% to 2.5%) has been applied incorporating an
appropriate risk premium.
– Cash flows have been discounted at a post-tax rate range of 8.0% to 11.0% (2023: 8.0% to 11.0%) based on externally
published weighted average cost of capital for an appropriate peer group plus an appropriate premium for risk.
– An income growth rate range of 3.0% to 5.0% has been applied to forecast cash flows based on past performance and
management’s estimate of the future cash flows to be derived from the cash generating units.

174
174 Dexus 2024 Annual Report
Note 21
Note 21 Intangible
Intangibleassets
assets(continued
(continued) )
Sensitivity information
Sensitivity information
A
A significant
significant movement
movementininany
anyone
oneofofthe
theinputs
inputslisted
listedininthe
thetable
tableabove
above asas
atat
the reporting
the date
reporting would
date result
would in ainchange
result in in
a change
the
the recoverable
recoverableamount
amountofofthe
theGroup’s
Group’smanagement
managementrights rightsand
andgoodwill.
goodwill.
The
The estimated
estimatedimpact
impactof
ofaachange
changeinincertain
certainsignificant
significantinputs
inputswould
wouldresult in in
result the following
the impairment
following of of
impairment intangibles:
intangibles:
Intangibles
Intangibles
Assumption
Assumption 20242024 2023
2023
Value
Value in
in use
use $m$m $m$m
An
An increaseof
increase of0.25%
0.25%ininthe
theadopted
adopteddiscount
discountrate
rate (0.4)
(0.4) — —
A
A decrease of 1x the adopted terminalmultiple
decrease of 1x the adopted terminal multiple (4.6)
(4.6) (6.3)(6.3)
A
A decrease
decreaseof of1%
1%ininthe
theadopted
adoptedincome
incomegrowth
growthrate
rate (3.0)
(3.0) (3.9)(3.9)

Overview
Fair
Fair value
value less
lesscosts
costsof
ofdisposal
disposal
An
An increase of 0.25% inthe
increase of 0.25% in theadopted
adopteddiscount
discountrate
rate — — (3.8)(3.8)
1
A
A decrease
decreaseof
of1x1xthe
theadopted
adoptedterminal
terminalmultiple
multiple — — N/AN/A 1
1
A
A decrease of 1% in the adoptedterminal
decrease of 1% in the adopted terminalgrowth
growthrate
rate N/A
N/A1 (16.2)
(16.2)
1
A
A decrease
decreaseof
of1%
1%ininthe
theadopted
adoptedincome
incomegrowth
growthrate
rate — — N/AN/A 1

Approach
1 The fair value less costs of disposal has been determined using a five-year discounted cash flow model and applying a terminal multiple in year five
1 The fair value less costs of disposal has been determined using a five-year discounted cash flow model and applying a terminal multiple in year five
(2023: a three-year discounted cash flow model and applying a terminal growth rate in year three).
(2023: a three-year discounted cash flow model and applying a terminal growth rate in year three).
2024 2023
2024 2023
$m $m
$m $m
Management Rights
Management Rights
Opening balance
Opening balance
Dexus Wholesale Property Fund (indefinite useful life) 263.2 261.9
Dexus Wholesale Property Fund (indefinite useful life) 263.2 261.9
Direct property funds (indefinite useful life) 42.0 42.0

Performance
Direct property funds (indefinite useful life) 42.0 42.0
Direct property funds (finite useful life) 0.3 0.7
Direct property funds (finite useful life) 0.3 0.7
APN funds (indefinite useful life) 106.0 129.8
APN funds (indefinite useful life) 106.0 129.8
APN funds (finite useful life) 0.1 0.1
APN funds (finite useful life) 0.1 0.1
AMP Capital funds (indefinite useful life) 180.2 —
AMP Capital funds (indefinite useful life) 180.2 —
AMP Capital funds (finite useful life) 8.2 —
AMP Capital funds (finite useful life)
Movements
8.2 —
Movements
Dexus Wholesale Property Fund (indefinite useful life)1 1 0.2 1.3
Dexus
AMP Wholesale
Capital fundsProperty
(indefiniteFund
useful(indefinite
life)2 2 useful life) —0.2 180.2 1.3

Governance
AMP Capital funds (indefinite useful
AMP Capital funds (finite useful life) 2 life)
— — 180.2
8.7
2
AMP Capital
Impairment funds (finite useful
of management rights life) — — (24.1) 8.7
Impairment of
Amortisation management rights
charge (2.8) — (24.1)
(0.6)
Amortisation
Closing charge
balance 597.4(2.8) 600.0 (0.6)
Closing balance
Cost 597.4
635.7 600.0
635.5
Cost
Accumulated amortisation 635.7
(9.7) 635.5
(6.9)
Accumulatedimpairment
Accumulated amortisation (9.7)
(28.6) (28.6)(6.9)
Accumulated
Total impairment
management rights (28.6)
597.4 600.0 (28.6)

Directors’ report
Total management rights
Goodwill 597.4 600.0
Goodwillbalance
Opening 66.5 49.9
Opening 3balance
Additions 66.5
— 52.549.9
Additions3
Impairment — — (35.9)52.5
Impairment
Closing balance 66.5 — 66.5(35.9)
Closing balance
Cost 66.5
107.4 107.466.5
Cost
Accumulated impairment 107.4
(40.9) (40.9)107.4
Total goodwill impairment
Accumulated 66.5
(40.9) 66.5
(40.9)
Software
Total goodwill 66.5 66.5
Financial report

Opening
Softwarebalance 4.4 3.6
Additions
Opening balance 0.84.4 2.3 3.6
Amortisation
Additions charge (1.3)0.8 (1.5) 2.3
Closing balance
Amortisation charge 3.9
(1.3) 4.4(1.5)
Cost
Closing balance 5.43.9 7.74.4
Accumulated
Cost amortisation (1.5)5.4 (3.3) 7.7
Cost - Fully amortised
Accumulated assets written off
amortisation (3.1)
(1.5) (0.1)(3.3)
Accumulated amortisation
Cost - Fully amortised - Fully
assets amortised
written off assets written off 3.1
(3.1) 0.1(0.1)
Total software
Accumulated amortisation - Fully amortised assets written off 3.93.1 4.4 0.1
Investor information

Total
Total non-current
software intangible assets 667.83.9 670.94.4
Total non-current intangible assets 667.8
1 Dexus has incurred costs to date in connection with Dexus Wholesale Property Limited, a Dexus entity, being appointed as responsible entity of Dexus
670.9
ADPF. Dexus may incur further costs, including but not limited to stamp duty and legal costs in relation to the merger of DWPF and Dexus ADPF.
21 Acquired
Dexus hasasincurred costs
part of the to Capital
AMP date in transaction.
connection with Dexus Wholesale Property Limited, a Dexus entity, being appointed as responsible entity of Dexus
ADPF.
3 The Dexus
excess may incur
between thefurther costs, including
cash consideration but not limited
transferred and thetofair
stamp
valueduty and
of the legal
net costs in assets
identifiable relationacquired
to the merger
as partofofDWPF andCapital
the AMP Dexus ADPF.
2 transaction
Acquired ashas
part of the
been AMP Capital
recorded transaction.
as goodwill.
3 The excess between the cash consideration transferred and the fair value of the net identifiable assets acquired as part of the AMP Capital
transaction has been recorded as goodwill. 175

175
Note 22 Business combination
In 2022, Dexus announced the acquisition of the real estate and domestic infrastructure equity business of Collimate Capital
Limited (Collimate Capital or AMP Capital) from AMP Limited ("AMP Capital transaction"). The transaction occurred under a
two-stage completion process. First Completion occurred on 24 March 2023 with consideration of $175.0 million paid on this
date. Final Completion occurred on 30 November 2023 following the satisfaction of the condition precedent relating to the
transfer of AMP’s ownership interest in China Life AMP Asset Management (“CLAMP”) out of entities being acquired by Dexus
under the AMP Capital transaction. Contingent consideration of $50.0 million was paid and Dexus Capital Investors Limited
(previously known as AMP Capital Investors Limited) became a wholly owned subsidiary of Dexus on this date.
The Group reported provisional fair values on the acquisition of identifiable assets, including management rights, and liabilities
in the consolidated financial statements for the year ending 30 June 2023. Following Final Completion on 30 November 2023,
these fair value assessments were finalised during the year. The amounts recognised in respect of the consideration paid and
the assets and liabilities recognised are set out below.

Purchase consideration
$m
Cash consideration paid - base purchase price 175.0
Working capital adjustments paid 65.6
Contingent consideration paid 50.0
Co-investment stake acquisition consideration paid1 103.0
Total consideration 393.6

1 Dexus acquired associated co-investment stakes in the Dexus Core Property Fund (DCPF), Dexus Wholesale Australian Property Fund (DWAPF) and
Dexus Core Infrastructure Fund (DCIF) from AMP Limited for total cash consideration of $103.0 million.

Identifiable assets and liabilities recognised

$m
Cash and cash equivalents 52.1
Trade and other receivables 93.9
Investments accounted for using the equity method 63.5
Financial assets at fair value through profit & loss 39.3
Intangible assets: management rights1 188.9
Trade and other payables (3.5)
Current tax liabilities (0.7)
Provisions (57.3)
Deferred tax assets 22.7
Deferred tax liabilities (57.8)
Net identifiable assets acquired 341.1
Goodwill2 52.5
Net assets acquired 393.6

1 Recognised in connection with AMP Capital managed funds, which include both open ended and closed ended funds and mandates.
2 Goodwill is attributable to the people, established business practices and relationships obtained via the acquisition and is not deductible for tax
purposes.

Adjustments to the provisional purchase price allocation

The final fair value for management rights at acquisition was $188.9 million, $6.3 million lower than the provisional fair value,
with a corresponding decrease in deferred tax liabilities of $1.9 million. Other adjustments to the fair value of other net
identifiable assets and liabilities resulted in a net increase to trade and other payables of $0.8 million, a decrease in provisions
of $2.3 million and an increase in deferred tax assets of $5.1 million. As a result of these adjustments, there was a
corresponding decrease in goodwill of $2.2 million, resulting in total goodwill arising on the acquisition of $52.5 million. These
adjustments have been made in the prior year comparatives in accordance with applicable accounting standards.
Payment for the business combination
$m
Cash consideration paid 342.7
Co-investment stake acquisition consideration paid 103.0
Less: Cash and cash equivalents acquired (52.1)
Net cashflow on acquisition1 393.6

1 Includes $301.1 million in payments for the acquisition of subsidiary, $53.0 million in payments for investments accounted for using the equity method
and $39.5 million in payments for financial assets at fair value through profit or loss.

Acquisition-related costs
Acquisition-related costs of $84.6 million (2023: $81.3 million) have been included within Transaction costs in the Consolidated
Statement of Comprehensive Income and in Operating cash flows in the Consolidated Statement of Cash Flows.

176 Dexus 2024 Annual Report

Note 22 Business combination (continued)
Acquired receivables
The fair value of trade and other receivables acquired was $93.9 million and reflects the gross contractual amount at the
acquisition date.

Note 23 Audit, taxation and transaction service fees

During the year, the Auditor and its related practices earned the following remuneration:

2024 2023
$'000 $'000
Audit and review services

Overview
Auditors of the Group - PwC
Financial statement audit and review services 2,253 2,506
Audit and review fees paid to PwC 2,253 2,506
Assurance services
Auditors of the Group - PwC
Outgoings audits 85 67

Approach
Regulatory audit and compliance assurance services 297 238
Sustainability assurance services 242 215
Other assurance services 37 374
Assurance fees paid to PwC 661 894
Total audit, review and assurance fees paid to PwC 2,914 3,400
Other services
Auditors of the Group - PwC

Performance
Taxation services 631 424
Other services 45 35
Other services fees paid to PwC 676 459
Total audit, review, assurance and other services fees paid to PwC 3,590 3,859

Note 24 Cash flow information

a. Reconciliation of cash flows from operating activities

Governance
Reconciliation of net profit/(loss) for the year to net cash flows from operating activities.
2024 2023
$m $m
Net loss for the year (1,583.8) (752.7)
Capitalised interest (26.7) (23.7)
Depreciation and amortisation 13.9 8.4
Amortisation of incentives and straight line income 78.1 91.8

Directors’ report
Impairment of intangibles — 60.0
Net fair value (gain)/loss of investment properties 796.9 623.5
Net fair value (gain)/loss of investments at fair value 302.6 28.3
Share of net (profit)/loss of investments accounted for using the equity
585.6 213.4
method
Net fair value (gain)/loss of derivatives 2.7 67.6
Amortisation of interest bearing liabilities 17.4 12.1
Security-based payments expense 17.5 10.4
Net fair value (gain)/loss of interest bearing liabilities 14.4 (75.6)
Financial report

Impairment of investments accounted for using the equity method 0.7 3.2
Net foreign exchange (gain)/loss 0.2 (0.3)
Development services revenue non-cash settled (23.4) —
Distributions from investments accounted for using the equity method 524.6 404.0
Change in operating assets and liabilities (107.2) 100.5
Net cash Inflow from operating activities 613.5 770.9
Investor information

177
Note 24 Cash flow information (continued)
b. Net debt reconciliation
Reconciliation of net debt movements:

2024 2023
Interest bearing Interest bearing
liabilities liabilities
$m $m
Opening balance 5,331.2 4,915.4

Changes from financing cash flows

Proceeds from borrowings 3,660.8 7,811.5
Repayment of borrowings (4,098.4) (7,392.5)
(Repayment of)/Proceeds from loan with related party — (11.6)

Non cash changes

Movement in deferred borrowing costs and other 0.3 (8.4)
Effect of changes in foreign exchange rates 1.3 92.4
Fair value hedge adjustment 14.4 (75.6)
Closing balance 4,909.6 5,331.2

Note 25 Security-based payments

The DXFM Board has approved a grant of performance rights to DXS stapled securities to eligible participants. Awards, via the
DSTI and LTI will be in the form of performance rights awarded to eligible participants which convert to DXS stapled securities
for nil consideration subject to satisfying specific service and performance conditions.
For each Plan, eligible participants are granted performance rights, based on performance against agreed key performance
indicators, as a percentage of their remuneration mix. Participants must remain in employment for the vesting period in order
for the performance rights to vest. Non-market vesting conditions, including Adjusted Funds from Operations (AFFO), Return on
Contributed Equity (ROCE), successful delivery of key strategic initiatives identified by the Board and employment status at
vesting, are included in assumptions about the number of performance rights that are expected to vest. Market conditions
include Absolute Total Shareholder Return (ATSR) and Relative Total Shareholder Return (RTSR). When performance rights vest,
the Group will arrange for the allocation and delivery of the appropriate number of securities to the participant.
The fair value of performance rights granted is recognised as an employee benefit expense with a corresponding increase in
the provision for employee benefits. The total amount to be expensed is determined by reference to the fair value of the
performance rights granted.

Critical accounting estimates: fair value of performance rights granted

Judgement is required in determining the fair value of performance rights granted. In accordance with AASB 2 Share-
based Payment, fair value is determined independently using Binomial and Monte Carlo pricing models with reference to:
– The expected life of the rights
– The security price at grant date
– The expected price volatility of the underlying security
– The expected distribution yield
– The risk free interest rate for the term of the rights and expected total security holder returns (where applicable)

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions
are to be satisfied. At the end of each period, the Group revises its estimates of the number of performance rights that are
expected to vest based on the non-market vesting conditions. The impact of the revised estimates, if any, is recognised in
profit or loss with a corresponding adjustment to equity.

178 Dexus 2024 Annual Report

Note 25 Security-based payments (continued)
The movement in performance rights is summarised below:

Opening Closing
2024 balance Granted Vested Cancelled balance
DSTI Plan 1,122,969 1,066,508 (788,227) (55,696) 1,345,554
LTI Plan 2,618,389 1,789,063 (360,906) (189,415) 3,857,131
Retention Awards 663,298 — (153,481) — 509,817
Total 4,404,656 2,855,571 (1,302,614) (245,111) 5,712,502

Opening Closing
2023 balance Granted Vested Cancelled balance

Overview
DSTI Plan 977,983 791,645 (613,137) (33,522) 1,122,969
LTI Plan 2,068,962 1,068,306 (318,849) (200,030) 2,618,389
Retention Awards 663,298 — — — 663,298
Total 3,710,243 1,859,951 (931,986) (233,552) 4,404,656

a. Deferred Short Term Incentive Plan

Approach
25% of any award under the Deferred Short Term Incentive (DSTI) Plan for certain participants will be deferred and awarded in
the form of performance rights to DXS securities.
The majority of the performance rights awards will vest one year after grant and some will vest two years after grant, subject
to participants satisfying employment service conditions. In accordance with AASB 2 Share-based Payment, the year of
employment in which participants become eligible for the DSTI, the year preceding the grant, is included in the vesting period
over which the fair value of the performance rights is amortised. As applicable, 50% of the fair value of the performance rights
is amortised over two years and 50% of the award is amortised over three years.

Performance
The weighted average remaining contractual life for DSTI performance rights is 0.53 years (2023: 0.57 years). The weighted
average fair value price of all outstanding DSTI performance rights is $7.81 (2023: $8.52) and the weighted average fair value
price of grants with respect to the year ended 30 June 2024 is $7.51 (2023: $7.51). The total security-based payments expense
recognised during the year ended 30 June 2024 was $7,142,086 (2023: $5,760,646).
b. Long Term Incentive Plan
50% of the awards will vest three years after grant and 50% of the awards will vest four years after grant, subject to
participants satisfying employment service conditions and performance hurdles. In accordance with AASB 2 Share-based

Governance
Payment, the year of employment in which participants become eligible for the Long Term Incentive (LTI) Plan, the year
preceding the grant, is included in the vesting period over which the fair value of the performance rights is amortised.
Consequently, 50% of the fair value of the performance rights is amortised over four years and 50% of the award is amortised
over five years.
The weighted average remaining contractual life for LTI performance rights is 1.51 years (2023: 1.55 years). The weighted
average fair value price of all outstanding LTI performance rights is $5.32 (2023: $6.32) and the weighted average fair value
price of grants with respect to the year ended 30 June 2024 is $4.99 (2023: $4.12). The total security-based payments expense
recognised during the year ended 30 June 2024 was $6,655,389 (2023: $2,786,174).

Directors’ report
c. Senior Management Retention Awards
CEO Incentive Award
A once-off CEO incentive award was granted to then CEO Darren Steinberg on 1 June 2021 which vested on 1 July 2024. The
fair value of the performance rights has been recognised over the 3 year vesting period and was fully amortised during the
year.
Retention Equity Award
The retention equity award is a once-off award to certain Key Management Personnel which was granted in December 2020.
50% of the once-off retention equity rights vested in December 2023 and 50% of the rights will vest in December 2024, subject
Financial report

to participants satisfying employment service conditions and governance and behavioural standards. Consequently, 50% of
the fair value of the rights is amortised over three years and 50% of the rights is amortised over four years from the grant date.
The weighted average remaining contractual life for all senior management retention award is 0.14 years (2023: 0.98 years).
The weighted average fair value price of all outstanding senior management retention award is $8.64 (2023: $8.59). The total
security-based payments expense related to this award recognised during the year ended 30 June 2024 was $1,536,817 (2023:
$1,766,752).
Investor information

179
Note 26 Related parties
Responsible Entity, Trustee and Investment Manager
DXH, a wholly owned subsidiary of DXO, is the parent entity of:
– DXFM, the responsible entity of DPT and DXO, the trustee of Dexus Office Trust Australia and Dexus Australian Logistics
Trust, and the investment manager of Dexus Industrial Trust Australia, Dexus KC Trust, Parangool Pty Ltd and Dexus Core
Property Fund
– DWPL, the responsible entity of DWPF
– DWFL, the responsible entity of DHPF
– DIML, the responsible entity of DIF
– DWML, the trustee of third party managed funds
– DXAM, the responsible entity of DXC, DXI and other third party managed funds
– Dexus RE Limited, the responsible entity of APD Trust
– DCFM, the responsible entity of Dexus Australian Property Fund, Dexus Community Infrastructure Fund, Dexus Core
Infrastructure Fund, Dexus Wholesale Australian Property Fund and Dexus Wholesale Shopping Centre Fund
– DCIS, the trustee of third party managed funds
– Dexus Capital Private Markets NZ Limited, the manager of third party managed funds
– DCIL, the trustee of third party managed trusts and the investment manager of third party managed trusts and portfolios
– DREP Investment Management Pty Limited, the investment manager of the Dexus Real Estate Partnership series
– Dexus Property Services Limited, the investment manager of third party managed funds

Management Fees and other revenue

Under the terms of the Constitutions of the entities within the Group, the Responsible Entity and Investment Manager are
entitled to receive fees in relation to the management of the Group. Other entities within the Group are also entitled to receive
property and development management fees and to be reimbursed for administration expenses incurred on behalf of the
Group.
The Group received responsible entity fees, management fees and other related fees from real asset funds managed by
subsidiaries of DXH during the financial year.

Related party transactions

Transactions between the consolidated entity and related parties were made on commercial terms and conditions.
Agreements with third party funds and joint ventures are conducted on normal commercial terms and conditions.

Transactions with related parties

2024 2023
$'000 $'000
Responsible entity (investment management fees) 209,913.4 143,860.4
Property management fee income 61,141.0 52,189.9
Development services revenue (DS), Development management (DM), Project Delivery Group
(PDG), capital expenditure and leasing fee income 89,605.8 47,793.2
Other fund fees and recoveries 70,727.2 16,319.0
Rental expense 4,566.5 1,310.0

2024 2023
$'000 $'000
Responsible entity fees receivable at the end of each reporting year 52,166.0 46,055.4
Property management fees receivable at the end of each reporting year 7,645.8 8,917.2
DS, DM, PDG, capital expenditure, leasing fees and other receivables at the end of each reporting
year 79,389.8 20,969.9
Loans to related parties — 1,750.2
Loans and payables from related parties 3,417.8 24,559.3

Key management personnel compensation

2024 2023
$'000 $'000
Compensation
Short-term employee benefits 7,294.0 8,862.5
Post employment benefits 234.0 1,071.9
Security-based payments 3,935.0 5,170.5
Total key management personnel compensation 11,463.0 15,104.9

180 Dexus 2024 Annual Report

Note 26 Related parties (continued)
Key management personnel compensation (continued)
In addition, gardening leave was granted for the period from March 2024 to December 2024 for the former CEO, Darren
Steinberg. Mr. Steinberg will receive his base salary and entitlements during this leave period, totalling $1,238,840.

Information regarding remuneration of key management personnel is provided in the Remuneration Report on pages 90 to 121
of the Annual Report. There have been no other transactions with key management personnel during the year.

Note 27 Parent entity disclosures

The financial information for the parent entity of Dexus Property Trust has been prepared on the same basis as the
Consolidated Financial Statements except as set out below.

Overview
Distributions received from associates are recognised in the parent entity’s Statement of Comprehensive Income, rather than
being deducted from the carrying amount of these investments.
Interests held by the parent entity in controlled entities are measured at fair value through profit and loss to reduce a
measurement or recognition inconsistency.
a. Summary financial information

Approach
The individual Financial Statements for the parent entity show the following aggregate amounts:

2024 2023
$m $m
Total current assets 9.4 667.7
Total assets 12,814.2 12,442.1
Total current liabilities 189.8 206.1

Performance
Total liabilities 195.9 206.1

Equity
Contributed equity 12,022.4 12,022.4
Reserves — —
Retained profit 595.9 213.6
Total equity 12,618.3 12,236.0
Net profit for the year 858.6 485.8

Governance
Total comprehensive income for the year — 485.8

b. Guarantees entered into by the parent entity

There are no guarantees entered into by the parent entity. Refer to note 17 for details of guarantees entered into by the
Group.

c. Contingent liabilities
The parent entity has no contingent liabilities. Refer to note 17 for the Group's contingent liabilities.

Directors’ report
d. Capital commitments
The parent entity had no capital commitments as at 30 June 2024 (2023: nil).

e. Going concern
The parent entity is a going concern. Capital risk management for the parent entity is managed holistically as part of the
Group. The Group has unutilised facilities of $2,462.0 million (2023: $2,409.5 million) (refer to note 15) and sufficient working
capital and cash flows in order to fund all of its requirements as at 30 June 2024.
Financial report

Note 28 Subsequent events

On 26 July 2024, settlement occurred for the disposal of 6 Bellevue Circuit, Greystanes NSW for total consideration of $45.6
million excluding transaction costs.
On 8 August 2024, Dexus exchanged contracts for the disposal of 28 Jones Road, Brooklyn VIC for total consideration of $35.1
million excluding transaction costs.
Since the end of the year, the Directors are not aware of any other matter or circumstance not otherwise dealt within the
Consolidated Financial Statements that has significantly or may significantly affect the operations of the Group, the results of
Investor information

those operations, or state of the Group’s affairs in future financial periods.

181
Directors’ Declaration
Directors’ Declaration
The Directors of Dexus Funds Management Limited as Responsible Entity of Dexus Property Trust declare that the
Consolidated Financial Statements and Notes set out on pages 129 to 181:
i. Comply with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional
reporting requirements; and
ii. Give a true and fair view of the Group’s consolidated financial position as at 30 June 2024 and of its performance, as
represented by the results of its operations and cash flows, for the year ended on that date.
In the Directors’ opinion:
a. The Consolidated Financial Statements and Notes are in accordance with the Corporations Act 2001;
b. There are reasonable grounds to believe that the Dexus Property Trust will be able to pay its debts as and when they
become due and payable; and
c. The Group has operated in accordance with the provisions of the Constitution dated 15 August 1984 (as amended) during
the year ended 30 June 2024.
The Consolidated Financial Statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board.
The Directors have been given the declarations by the Chief Executive Officer and the Chief Financial Officer required by
section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Directors.

Warwick Negus
Chair
19 August 2024

182
182 Dexus 2024 Annual Report
Independent Auditor’s Report

Independent auditor’s report

Overview
To the stapled security holders of Dexus Property Trust

Report on the audit of the financial report

Our opinion
In our opinion:

Approach
The accompanying financial report of Dexus Property Trust (the Trust) and its controlled entities which
includes Dexus Operations Trust (DXO) and its controlled entities (together the Group) is in accordance
with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Performance
What we have audited
For the purposes of consolidation accounting, the Trust is the deemed parent entity and acquirer of DXO.
The financial report represents the consolidated financial results of the Trust and includes the Trust and
its controlled entities and DXO and its controlled entities.
The financial report comprises:
• the Consolidated Statement of Financial Position as at 30 June 2024
• the Consolidated Statement of Comprehensive Income for the year then ended

Governance
• the Consolidated Statement of Changes in Equity for the year then ended
• the Consolidated Statement of Cash Flows for the year then ended
• the Notes to the Consolidated Financial Statements, including material accounting policy
information and other explanatory information
• the Directors’ Declaration.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under

Directors’ report
those standards are further described in the Auditor’s responsibilities for the audit of the financial report
section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.

Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Financial report

Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999
Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999
Investor information

Liability limited by a scheme approved under Professional Standards Legislation.

183
 Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion
on the financial report as a whole, taking into account the relevant and management structure of the
Group, its accounting processes and controls and the industry in which it operates.

Audit scope Key audit matters

• Our audit focused on where the Group made • Amongst other relevant topics, we communicated
subjective judgements; for example, significant the following key audit matters to the Board Audit
accounting estimates involving assumptions and Committee:
inherently uncertain future events.
− Valuation of investment properties, including
those investment properties in investments
accounted for using the equity method
− Carrying amount of indefinite useful life intangible
assets (management rights and goodwill)
• These are further described in the Key audit matters
section of our report.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report for the current period. The key audit matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters. Further, any commentary on the outcomes of a particular audit
procedure is made in that context.

Key audit matter How our audit addressed the key audit matter

Valuation of investment properties, including those investment properties included in investments

accounted for using the equity method (Refer to Notes 9 and 10)

The Group’s investment property portfolio To assess the fair value of investment properties, we
comprises: performed the following procedures, amongst others:
• Directly held properties included in the • We developed an understanding of the valuation policy
Consolidated Statement of Financial Position as used by the Group in determining the fair value of
investment properties. investment properties and assessed whether it was in
accordance with Australian Accounting Standards.
• The Group’s share of investment properties
held through associates and joint ventures, • We developed an understanding of the key control
included in the Consolidated Statement of activities relevant to our audit and assessed whether they
Financial Position as investments accounted for were appropriately designed and implemented.
using the equity method.
• We evaluated whether certain key control activities
Investment properties are carried at fair value at relevant to our audit, using a sampling methodology,
reporting date using the Group’s policy as described were operating effectively throughout the year.
in Note 9. The value of investment properties is
dependent on the valuation methodology adopted • We assessed the scope, competence and objectivity of
and the inputs and assumptions in the valuation the internal and external valuation experts used by the
models. Group to prepare the valuation models at the reporting
date.

184 Dexus 2024 Annual Report

Key audit matter How our audit addressed the key audit matter

Overview
Significant assumptions in establishing fair value • To develop an understanding of prevailing market
included the: conditions and their expected impact on the fair value of
the Group's investment properties, we:
• Capitalisation rate, and
− read relevant external and PwC Real Estate expert
• Discount rate. property market reports, and
At each reporting period, the Group determines the
− where appropriate, held discussions with the
fair value of its investment property portfolio in line
Group's internal and external valuation experts.
with the Group’s valuation policy, which requires all

Approach
properties to be valued by a member of the For a risk-based sample of investment properties:
Australian Property Institute of Valuers at least once
every three years. It has been the Group’s practice
• We assessed the valuation methodology against the
in most cases to have such valuations performed
requirements of the Australian Accounting Standards.
every six months.
• We assessed significant inputs, using a sampling
We considered the valuation of investment
methodology, to the investment property valuation
properties to be a key audit matter due to the:
reports and agreed the inputs to relevant supporting

Performance
• Financial significance of investment properties documentation. For example, on a sample basis, we
in the Consolidated Statement of Financial compared the rental income used in the investment
Position (including those within investments property valuations to the relevant lease agreement.
accounted for using the equity method).
• We tested the mathematical accuracy of the relevant
• Potential for changes in the fair value of valuation calculations.
investment properties to have a significant
• Where considered necessary, we held discussions with
effect on the Consolidated Statement of
the valuer of a specific property to develop an
Comprehensive Income.
understanding of their relevant processes, judgments
• The inherently subjective nature of the and observations.

Governance
assumptions that underpin the valuations,
• We assessed the appropriateness of the significant
including the capitalisation and discount rates,
assumptions, such as the capitalisation rate and discount
given the uncertain economic environment on
rate, including comparing to market data and comparable
investment property valuations.
transactions.
We assessed the reasonableness of the disclosures against
the requirements of Australian Accounting Standards.

Carrying amount of indefinite useful life intangible assets (management rights and goodwill) (Refer Note 21)

Directors’ report
The Group’s indefinite useful life intangible assets We performed the following procedures amongst others:
comprise of management rights and goodwill.
• For material indefinite useful life management rights and
The Group performed impairment testing at 30 June goodwill, together with PwC valuation experts for
2024 on the indefinite useful life intangible assets by selected CGUs, we assessed the methodologies used in
comparing the recoverable amount of indefinite the Group’s impairment models (the models) against
useful life intangible assets to their carrying amount. commonly accepted valuation practice, and the
We considered the carrying amount of indefinite appropriateness of selected data inputs and significant
useful life management rights and goodwill to be a assumptions used in the models, with reference to our
key audit matter due to the: knowledge of the Group’s operations and observable
market factors.
• Financial significance of the balance in the
Financial report

Consolidated Statement of Financial Position. • We evaluated the appropriateness of forecasted cash

flows used in the models and testing the mathematical
• Degree of estimation uncertainty in determining accuracy of material underlying calculations.
the recoverable amount of indefinite useful life
intangible assets. • We tested the mathematical accuracy of relevant
impairment model calculations.
• We evaluated the Group’s historical ability to forecast
future cash flows by comparing a selection of prior year
budgets to reported actual results.
Investor information

185
 Key audit matter How our audit addressed the key audit matter

• We performed sensitivity analysis by shifting significant

assumptions within a reasonably possible range to
identify higher risk assumptions and CGUs at higher risk
of impairment to determine where to focus further
procedures.
• We assessed the reasonableness of the disclosures
made in Note 21, including those related to estimation
uncertainty, against the requirements of Australian
Accounting Standards.

Other information
The Directors of Dexus Funds Management Limited (the Directors), the Responsible Entity of the Trust,
are responsible for the other information. The other information comprises the information included in the
annual report for the year ended 30 June 2024, but does not include the financial report and our auditor’s
report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon through our opinion on the financial report. We have
issued a separate opinion on the remuneration report and a limited assurance conclusion on the
Integrated Reporting Content Elements Index of the Annual Report.

In connection with our audit of the financial report, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the financial report or
our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the financial report

The Directors are responsible for the preparation of the financial report in accordance with Australian
Accounting Standards and the Corporations Act 2001, including giving a true and fair view, and for such
internal control as the Directors determine is necessary to enable the preparation of the financial report
that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.

186 Dexus 2024 Annual Report

A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:

Overview
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.

Report on the remuneration report

Our opinion on the remuneration report

We have audited the remuneration report included in the Directors’ report for the year ended 30 June

Approach
2024.

In our opinion, the remuneration report for the year ended 30 June 2024 complies with section 300A of
the Corporations Act 2001.

Responsibilities
The Directors are responsible for the preparation and presentation of the remuneration report in

Performance
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.

PricewaterhouseCoopers

Governance
Marcus Laithwaite Sydney
Partner 19 August 2024

Directors’ report
Financial report
Investor information

187
Investor Information
Dexus recognises the importance of
effective communication with existing and
potential institutional investors, sell-side
analysts and retail investors.
Our Executives and the Investor We participated in a number of virtual Investor contact method
Relations team maintain a strong and in-person conferences which
rapport with the investment community were attended by domestic and (by numbers)
through proactive and regular international institutional investors.
engagement initiatives. These conferences enabled access to
potential new investors and assisted
We understand the importance our with strengthening existing relationships
investors place on ESG topics and with long-term investors.
issues for long-term value creation.
We are committed to delivering We regularly commission independent
high levels of transparency and investor perception studies to gather
disclosure by: feedback from the institutional
investment community. These studies
– Releasing accurate and relevant involve independent surveys and
information to investors to ensure interviews with institutional investors
they can make informed investment and sell-side brokers to measure
decisions perceptions on a number of attributes
– Providing regular access to senior and report on the findings. The results
management through one-on-one
meetings, presentations, property
help the Board and Executive team 25 191
understand the investment community’s Group meetings One-on-one meetings
tours, conferences, dedicated views and concerns and assists in the
investor roadshows, conference calls enhancement of our investor relations
and webcasts and communications activities. 7 36
Property tours Director engagement meetings
Our Treasury team held presentations
We adopt strong governance practices
with institutional debt investors in
including a policy that ensures a
minimum of two Dexus representatives
August 2023 and February 2024. In 2 10
addition, the team participated in Roadshows Conferences & panels
participate in any institutional investor
the Property Treasurers’ Round Table
or sell-side broker meetings and that
and Debt Markets events facilitated
a record of the meeting is maintained
by the Property Council of Australia
on an internal customer relationship
management database.
and regularly met with banks, rating Security holders
agencies and other credit investors
During FY24, senior management through the course of the year. by geography
together with the Investor Relations
In FY24 we engaged with investors
team held 271 engagements with
to discuss our approach to ESG and
investor/broker groups to discuss the
to learn about their priorities and
group’s business strategy, operational,
concerns.
financial and ESG performance. These
engagements were undertaken across
a wide range of investor activities
including one-on-one meetings,
telephone calls, conferences, site visits,
roadshows, investor briefings and
roundtables.

51% 13%
Australia UK

18% 12%
North America Europe (ex UK)

5% 1%
Asia Rest of world

188 Dexus 2024 Annual Report

Investor communications
We are committed to ensuring all investors have equal access to information. In line
with our commitment to long term integration of sustainable business practices,
investor communications are provided via various electronic methods including:

Dexus website Subscribe to alerts Go electronic for

www.dexus.com www.dexus.com/subscribe convenience and speed
Other investor tools available: Enables investors to receive Did you know that you can receive
Dexus communications all or part of your Security holder
Online enquiry immediately after release. communications electronically?
www.dexus.com/get-in-touch You can change your communication

Overview
Key dates preferences at any time by logging
Scroll down to the Dexus Listed www.dexus.com/investor-centre into your Security holding at
Investors section to get in touch with us. www.dexus.com/update or by
Notifies investors on key events contacting Link Market Services
Investor login and reporting dates. on +61 1800 819 675.
www.dexus.com/update
LinkedIn
Enables investors to update their We engage with our followers

Approach
details and download statements. on LinkedIn.

Investor sustainability Climateworks

Performance
Dexus was recognised as one of only two companies found to
benchmarks have met all four principles for credible net zero targets and tangible
We participate in and are evaluated on actions, in the Climateworks Australia assessment of 30 ASX-listed
several investor surveys for the purposes companies on climate targets and alignment with global climate science.
of benchmarking our sustainability
performance, communicating our The four best-practice principles forming part of the criteria by Climateworks were:
environment, social and governance – A commitment to net zero emissions by or before 2050
(ESG) credentials, and understanding
– Medium-term targets that are appropriate and ambitious
how we can continuously enhance our

Governance
approach. We are proud to be leaders – Tangible actions to support achieving the targets
across key sustainability benchmarks – Commitments that cover all emissions, such as value chain, customer
in the industry. and financed emissions, not just operational.
As a result of Dexus’s renewed This is a strong foundation to build from as Dexus embarks on setting the
Sustainability Strategy, we have next phase of its Climate Transition Action Plan.
enhanced our focus on the areas where
we can make an impact which align to GRESB
our priority areas. Through this process, The platform’s achievements from the Global Real Estate Sustainability Benchmark

Directors’ report
we have reduced our focus on some of (GRESB) include:
the sustainability benchmark surveys
while still prioritising performance in – Royal Adelaide Hospital1 (RAH) achieved an exceptional result, ranking 1st for
DJSI and GRESB. performance out of 683 infrastructure assets globally. RAH scored 96 out of 100
and has attained a 5 star GRESB rating for 2023.
– Powerco NZ being named an Infrastructure Asset Sector Leader
– Two Dexus unlisted funds were named sector leaders:
– Dexus Healthcare Property Fund was named Global Non-Listed Leader
for Healthcare in the Development Benchmark
Financial report

– Dexus Wholesale Property Fund was named Regional Sector Leader

for Diversified (Office/Retail) in the Standing Investments Benchmark
– Dexus, Dexus Office Trust, Dexus Office Partnership and Dexus Wholesale
Property Fund ranked in the Top 5% globally out of 1,924 respondents.

DJSI
Dexus was again recognised as a sustainability leader, achieving the third highest
score of global REIT peers in the S&P Global Corporate Sustainability Assessment
(CSA) and being included in the S&P Global Sustainability Yearbook 2024.
Investor information

1. Royal Adelaide Hospital is managed

by Celsus Holdings Pty Ltd, of which MSCI
Dexus Community Infrastructure Fund,
Dexus Healthcare Property Fund and In November 2023, MSCI rated Dexus an AA Rating in the Morgan Stanley Capital
Dexus Core Infrastructure Fund have International (MSCI) ESG Rating 2023, representing industry leadership in managing
a combined 72.79% ownership interest. the most significant ESG risks and opportunities.

189
Investor Information continued

Link Market Services Limited Distribution payments Unclaimed distribution

Our security registrar Link Market Dexus’s payout policy in FY24 is to income
Services Limited (part of the Link Group) distribute in line with free cash flow for
Unpresented cheques or unclaimed
was acquired by Mitsubishi UFJ Trust & which AFFO is a proxy. Distributions
distribution income can be claimed
Banking Corporation (the Trust Bank), are paid for the six-month periods to
by contacting the Dexus Infoline on
a consolidated subsidiary of Mitsubishi 31 December and 30 June each year.
+61 1800 819 675. For monies outstanding
UFJ Financial Group, Inc. (MUFG), on
Distribution statements are available greater than seven years, please
16 May 2024. In the coming months,
in print and electronic formats. contact the NSW Office of State
Link Market Services’ name will change
Distributions are paid by direct credit Revenue on +61 1300 366 016,
to MUFG Pension & Market Services.
into nominated bank accounts for 8.30am–5.00pm Monday to Friday
The registry services they provide
all Australian and New Zealand or use their search facility at NSW
Security holders will continue as normal.
Security holders and by cheque for Office of State Revenue or email
other international Security holders. [email protected].
Annual General Meeting To update the method of receiving
distributions payment, please
Dexus’s Annual General Meeting will be
visit the investor login facility at
held on Wednesday 30 October 2024
www.dexus.com/update.
commencing at 2.00pm. Dexus will host
a hybrid Annual General Meeting (AGM)
with an in-person meeting and utilising AMMA Statement
Link Market Services virtual online
An Attribution Managed Investment
meeting platform for Security holders
Trust Member Annual Statement (AMMA)
who cannot join us in Sydney.
is sent to Security holders at the end of
We encourage all Security holders August each year.
and proxyholders to participate in
The AMMA statement summarises
the Meeting, either by attending the
distributions provided during the
meeting in person, or via a virtual
financial year and includes information
online meeting platform or webcast
required to complete your tax return.
at www.dexus.com/investor-centre.
AMMA statements are also available
Details relating to the meeting and online at www.dexus.com/update.
how it will be conducted will be
provided in the 2024 Notice of Annual
General Meeting to be released in
September 2024.

Key dates

2024 Reporting calendar1

2024 Annual General Meeting 30 October 2024
2025 Half year results 19 February 2025
2025 Annual results 20 August 2025
2025 Annual General Meeting 29 October 2025

Distribution calendar1
Period end 31 December 2024 30 June 2025
1. Please note that these
Ex-distribution date 30 December 2024 27 June 2025 dates are indicative and are
subject to change without prior
Record date 31 December 2024 30 June 2025 notice. Any changes in our key dates
will be published on our website at
Payment date 27 February 2025 28 August 2025
www.dexus.com/investor-centre.

190 Dexus 2024 Annual Report

Complaint handling process Dexus Funds Management Limited is
a member of the Australian Financial
Dexus has a complaint handling policy Complaints Authority (AFCA), an
to ensure that all Security holders independent dispute resolution
are dealt with fairly, promptly and scheme which may be contacted at:
consistently. A Complaints Guide
is available at www.dexus.com/
Dispute Resolutions Officer
complaints-management.
Dexus Funds Management Limited
Any Security holder wishing to lodge PO Box R1822
a complaint, can do so verbally Royal Exchange NSW 1225
by calling the Dexus Infoline on
+61 1800 819 675 or in writing by email Email: [email protected]
to [email protected].
Australian Financial Complaints

Overview
Contact us directly at: Authority Limited
GPO Box 3
Complaints Officer
Melbourne VIC 3001
Dexus Funds Management Limited
PO Box R1822 Phone: +61 1800 931 678
Royal Exchange NSW 1225 (free call within Australia)
Fax: +61 3 9613 6399
Phone: +612 9017 1100

Approach
Email: [email protected] Email: [email protected]
Website: www.afca.org.au

Performance
Governance
Making contact
If you have any questions regarding This service is available from 8.30am to 5.30pm (Sydney time) on all
your Security holding or wish to business days. All correspondence should be addressed to:
update your personal or distribution
Dexus
payment details, please contact Link
Market Services on +61 1800 819 675. C/- Link Market Services Limited
Locked Bag A14

Directors’ report
Sydney South NSW 1235
Phone: +61 1800 819 675
Email: [email protected]

We are committed to delivering a high level of service to all investors. If you

feel we could improve our service or you would like to make a suggestion or
a complaint, your feedback is appreciated.
Our contact details are:
Financial report

Investor Relations
Dexus
PO Box R1822
Royal Exchange NSW 1225
Email: [email protected]
Investor information

191
Additional information
Top 20 Security holders at 31 July 2024
Number of % of issued
Rank Name stapled securities capital
1 HSBC Custody Nominees (Australia) Limited 416,159,001 38.69
2 J P Morgan Nominees Australia Pty Limited 221,408,386 20.59
3 Citicorp Nominees Pty Limited 150,273,274 13.97
4 BNP Paribas Nominees Pty Limited 33,658,630 3.13
5 National Nominees Limited 28,102,372 2.61
6 BNP Paribas Nominees Pty Ltd <Agency Lending A/C> 24,186,509 2.25
7 Citicorp Nominees Pty Limited <Colonial First State Inv A/C> 12,059,156 1.12
8 HSBC Custody Nominees (Australia) Limited <NT-Commonwealth Super Corp A/C> 7,793,580 0.72
9 BNP Paribas Nominees Pty Ltd <Hub24 Custodial Service Ltd> 5,810,243 0.54
10 Medich Capital Pty Ltd <Roy Medich Investment A/C> 5,502,012 0.51
11 Medich Foundation Pty Ltd <Medich Foundation A/C> 4,750,000 0.44
12 Charter Hall Wholesale Management Ltd <CH AREIT Partnership No. 1> 4,750,000 0.44
13 Artmax Investments Limited 4,060,738 0.38
14 Netwealth Investments Limited <Wrap Services A/C> 3,334,098 0.31
15 Pacific Custodians Pty Limited Performance Rights Plan Trust 2,864,219 0.27
16 BNP Paribas Nominee (NZ) Ltd 2,757,253 0.26
17 Citicorp Nominees Pty Limited <143212 NMMT Ltd A/C> 2,651,743 0.25
18 HSBC Custody Nominees (Australia) Limited 2,252,455 0.21
19 Charter Hall Wholesale Management Ltd <CH Deep Value AREIT Partnership> 2,090,000 0.19
20 IOOF Investment Services Limited <IPS Superfund A/C> 1,701,704 0.16
Sub total 936,165,373 87.04
Balance of register 139,399,873 12.96
Total of issued capital 1,075,565,246 100

Substantial holders at 31 July 2024

The names of substantial holders, at 31 July 2024 that have notified the Responsible Entity in accordance with section 671B of
the Corporations Act 2001, are:

Number of
Date Name stapled securities % voting
3 July 2024 State Street Corporation 113,767,112 10.58%
29 February 2024 Blackrock Group 113,001,421 10.50%
28 July 2021 Vanguard Group 109,255,969 10.16%

Class of securities
Dexus has one class of stapled security trading on the ASX with Security holders holding stapled securities at 31 July 2024.

192 Dexus 2024 Annual Report

Spread of securities at 31 July 2023
Range Securities % No. of holders
100,001 and over 962,279,998 89.47 85
50,001 to 100,000 6,218,917 0.58 90
10,001 to 50,000 33,601,703 3.12 1,849
5,001 to 10,000 26,319,663 2.45 3,721
1,001 to 5,000 40,506,873 3.77 16,356
1 to 1,000 6,638,092 0.62 15,186
Total 1,075,565,246 100.00 37,287

Overview
At 31 July 2024, the number of security holders holding less than a marketable parcel of 72 Securities ($500) was 980 and they
held a total of 31,930 securities.

Voting rights
At meetings of the Security holders of Dexus Property Trust and Dexus Operations Trust, being the Trusts that comprise Dexus,

Approach
on a show of hands, each Security holder of each Trust has one vote. On a poll, each Security holder of each Trust has one
vote for each dollar of the value of the total interests they have in the Trust.
There are no stapled securities that are restricted or subject to voluntary escrow.

On-market buy back

Dexus does not have an on-market buy-back program open at the date of this report.

Performance
Cost base apportionment
For capital gains tax purposes, the cost base apportionment details for Dexus securities for the 12 months ended
30 June 2024 are:

Date Dexus Property Trust Dexus Operations Trust

1 Jul 2023 to 31 Dec 2023 98.19% 1.81%

Governance
1 Jan 2024 to 30 Jun 2024 97.97% 2.03%

Historical cost base details are available at www.dexus.com/investor-centre.

Directors’ report
Financial report
Investor information

193
Integrated Reporting Content Elements Index

An Integrated Report includes eight Content Elements, posed in the form of questions to be answered. The purpose of this
Index is to allow readers to understand how and where we have addressed these integrated reporting content elements
throughout this Annual Report. PwC has been engaged to provide limited assurance as to whether the Content Elements of
the Integrated Reporting Framework have been addressed in this report as described in this Index. This assurance is focused
on whether these Content Elements have been included in this report but does not extend to assessing the accuracy or
validity of any statement made throughout this report.

Content Elements Reference Page

A. Organisational overview and external environment
What does the organisation do and what are the FY24 highlights 2–3
circumstances under which it operates? About Dexus 4–5
Chair and CEO review 7–9
How we create value 10–11
Strategy 14–15
Sustainability strategy 16–17
Materiality review 18–19
Key resources 26–27
Key business activities 28–29
Financial performance 30–37
Funds management performance 35
Leading cities 38–51
Thriving people 52–57
Climate action 62–71
Directors’ Report 123–125
External environment About this Report 1
Chair and CEO review 7–9
How we create value 10–11
Megatrends 12–13
Materiality review 18–19
Key risks 20–25
Customer prosperity 58–61
Climate action 62–71
Enhancing communities 72–75
Sustainability Foundations 76–81
NABERs portfolio ratings 81
Governance 82–84
B. Governance
How does the organisation’s governance Chair and CEO review 8–9
structure support its ability to create value How we create value 10–11
in the short, medium and long term? Materiality review 18–19
Key risks 20–25
Key resources 26–27
Leading cities 38–51
Thriving people 52–57
Customer prosperity 58–61
Climate action 62–71
Enhancing communities 72–75
Sustainability Foundations 77–80
Governance 82–89
Dexus Board skills matrix 85
Board focus areas 31, 39, 53, 59, 63, 73, 77
FY24 commitments and key focus area 33, 57, 61, 69, 75, 81
Sustainability across the Dexus Platform 83
Executive Committee 89
Remuneration report 90–91, 99–100
C. Business model
An integrated report should answer the question: FY24 highlights 2–3
About Dexus 4–5
What is the organisation’s business model 6–9
Chair and CEO review
including key; inputs, business activities, How we create value 10–11
outputs and outcomes? Megatrends 12–13
Strategy 14–15
Sustainability Strategy 16–17
Materiality review 18–19
Key risks 20–25
Key resources 26–27
Key business activities 28–29
Performance:
– Financial performance 30–37
– Leading cities 38–51
– Thriving people 52–57
– Customer prosperity 58–61
– Climate action 62–71
– Enhancing communities 72–75
– Sustainability Foundations 76-81
Climate action: metrics and targets 70
Green star building certifications 80
Sustainability across the Dexus Platform 83

194 Dexus 2024 Annual Report

Content Elements Reference Page
D. Risks and opportunities
An integrated report should answer the question: How we create value 10–11
Megatrends 12–13
What are the specific risks and opportunities that
Sustainability priority areas 17
affect the organisation’s ability to create value Materiality review 18–19
over the short, medium and long term, and how is Key risks 20–25
the organisation dealing with them? Key resources 26–27
Financial performance: Group outlook 34
Leading cities: Infrastructure 49
Delivering on climate action: physical and financial resilience 68
E. Strategy and resource allocation
An integrated report should answer the question: Chair and CEO review 6–9
Strategy 14–15
Where does the organisation want to go and 16–17
Sustainability strategy

Overview
how does it intend to get there? Materiality review 18–19
Key risks 20–25
Key resources 26–27
Thriving people 52–57
Customer prosperity 58–61
Delivering on climate action: decarbonisation 66
Climate action 62–71
Supply chain monitoring and relationship management 79
FY25 commitments 33, 57, 61, 69, 75, 81

Approach
F. Performance
An integrated report should answer the question: Chair and CEO review 6–9
Materiality review 18–19
To what extent has the organisation achieved its 23
Compliance and regulatory risk
strategic objectives for the period and what are Performance highlights:
its outcomes in terms of effects on the capitals? – Financial performance 30, 35–36
– Leading cities 38
– Thriving people 52

Performance
– Customer prosperity 58
– Climate action 62
– Enhancing communities 73–75
Human rights 79
Office and Industrial portfolio performance 36
Delivering on climate action 64–68
Corporate governance 64, 82
Sustainability Foundations 76–81
G. Outlook
An integrated report should answer the question: FY24 highlights 2–3
Chair and CEO review 6–9

Governance
What challenges and uncertainties is the 10–11
How we create value
organisation likely to encounter in pursuing its Megatrends 12–13
strategy, and what are the potential implications Key risks 20–25
for its business model and future performance? Group and property outlook 34, 36
FY25 commitments 33, 57, 61, 69, 75, 81
– Leading cities 38–51
– Thriving people 52-57
Climate action: metrics and targets 70
Sustainability Foundations 76–81
Remuneration report 90–91, 99–100

Directors’ report
H. Basis of preparation and presentation
An integrated report should answer the question: About Dexus Cover page
About this report 1
How does the organisation determine what 18–19
Materiality review
matters to include in the integrated report and Key risks 20–25
how are such matters quantified or evaluated? Key resources 28–29
Climate action 62–71
Remuneration report 90–93
Directors’ Report 123–125
Report scope 197
Summary of materiality determination process Materiality review 18–19
Key risks 20–25
Financial report

Governance 82–84
Reporting boundary Megatrends 12–13
Materiality review 18–19
Key risks 20–25
Directors’ Report 123–125
Report scope 197
Summary of significant frameworks and methods FY24 highlights 2–3
Materiality review 18–19
Performance highlights:
– Financial performance 30, 35–37
– Leading cities 38–39
– Thriving people 52–54
Investor information

– Customer prosperity 58–61

– Climate action 62–64
– Enhancing communities 72–74
– Green star building certifications 80
Report scope 197

195
 To the Board of Directors of Dexus Holdings Pty Limited

Independent Limited Assurance Report on the Integrated Reporting

Content Elements Index within the Dexus 2024 Annual Report
The Board of Directors of Dexus Holdings Pty Limited (‘Dexus') engaged us to perform an
independent limited assurance engagement in respect of the Integrated Reporting Content Elements
Index (the ‘Subject Matter‘) located on pages 194 and 195 of the Dexus 2024 Annual Report for the
year ended 30 June 2024.

Subject Matter and Criteria

The criteria used by Dexus to prepare the Subject Matter and which we assessed the Subject Matter
is described in section 4 of the International Integrated Reporting Framework dated January 2021,
developed by the International Integrated Reporting Council (the ‘Criteria’). The criteria requires
disclosure of certain information in an integrated report. The criteria requires disclosure of certain
information in an Integrated report.
The maintenance and integrity of Dexus’ website is the responsibility of management; the work
carried out by us does not involve consideration of these matters and, accordingly, we accept no
responsibility for any changes that may have occurred to the reported Subject Matter or Criteria when
presented on Dexus’ website.
Our assurance conclusion is with respect to the year ended 30 June 2024 and does not extend to
information in respect of earlier periods or to any other information included in, or linked from, the
2024 Annual Report including any images, audio files or videos.

Responsibilities of management
Management is responsible for the preparation of the Subject Matter in accordance with the Criteria.
This responsibility includes:
• determining appropriate reporting topics and selecting or establishing suitable criteria for
measuring, evaluating and preparing the underlying Subject Matter;
• ensuring that those criteria are relevant and appropriate to Dexus and the intended users; and
• designing, implementing and maintaining systems, processes and internal controls over
information relevant to the preparation of the Subject Matter, which is free from material
misstatement, whether due to fraud or error.

Our independence and quality control

We have complied with the ethical requirements of the Accounting Professional and Ethical Standard
Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards)
relevant to assurance engagements, which are founded on fundamental principles of integrity,
objectivity, professional competence and due care, confidentiality and professional behaviour.
Our firm applies Australian Standard on Quality Management ASQM 1, Quality Management for Firms
that Perform Audits or Reviews of Financial Reports and Other Financial Information, or Other
Assurance or Related Services Engagements, which requires the firm to design, implement and
operate a system of quality management including policies or procedures regarding compliance with
ethical requirements, professional standards and applicable legal and regulatory requirements.

PricewaterhouseCoopers, ABN 52 780 433 757

One International Towers Sydney, Watermans Quay, Barangaroo NSW 2000, GPO BOX 2650 Sydney NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

196 Dexus 2024 Annual Report

Our responsibilities
Our responsibility is to express a limited assurance conclusion based on the procedures we have

Overview
performed and the evidence we have obtained.
Our engagement has been conducted in accordance with the Australian Standard on Assurance
Engagements (ASAE) 3000 Assurance Engagements Other Than Audits or Reviews of Historical
Financial Information. That standard requires that we plan and perform this engagement to obtain
limited assurance about whether anything has come to our attention to indicate that the Subject
Matter has not been prepared, in all material respects, in accordance with the Criteria, for the year
ended 30 June 2024.

Approach
The procedures performed in a limited assurance engagement vary in nature and timing from, and are
less in extent than for, a reasonable assurance engagement and consequently the level of assurance
obtained in a limited assurance engagement is substantially lower than the assurance that would
have been obtained had a reasonable assurance engagement been performed. Accordingly, we do
not express a reasonable assurance opinion.
In carrying out our limited assurance engagement we:
• made inquiries of the persons responsible for the Subject Matter regarding the processes and

Performance
controls for collecting and reporting the Subject Matter;
• Reviewing and assessing the appropriateness of the Criteria;
• Reviewing and assessing the completeness of the Subject Matter;
• Assessing the preparation and presentation of the Subject Matter against the Criteria;
• Reviewing all references noted in the Subject Matter and confirming the appropriateness of the
references against the Criteria; and
• Reconciling the sections and page numbers included within the Subject Matter to the referenced
sections of the Dexus 2024 Annual Report.
This assurance is focused on whether the Subject Matter has been addressed according to the

Governance
Criteria in the Dexus 2024 Annual Report but does not extend to assessing the accuracy or validity of
any statement made throughout the Annual Report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our
conclusion.

Inherent limitations
Inherent limitations exist in all assurance engagements due to the selective testing of the information
being examined. It is therefore possible that fraud, error or non-compliance may occur and not be
detected. A limited assurance engagement is not designed to detect all instances of non-compliance

Directors’ report
of the Subject Matter with the Criteria, as it is limited primarily to making enquiries of the management
and applying analytical procedures.
Additionally, non-financial data may be subject to more inherent limitations than financial data, given
both its nature and the methods used for determining, calculating and estimating such data. The
precision of different measurement techniques may also vary. The absence of a significant body of
established practice on which to draw to evaluate and measure non-financial information allows for
different, but acceptable, evaluation and measurement techniques that can affect comparability
between entities and over time.
The limited assurance conclusion expressed in this report has been formed on the above basis.
Financial report
Investor information

197
 Our limited assurance conclusion
Based on the procedures we have performed, as described under ‘Our responsibilities’ and the
evidence we have obtained, nothing has come to our attention that causes us to believe that the
Subject Matter has not been prepared, in all material respects, in accordance with the Criteria for the
year ended 30 June 2024.

Use and distribution of our report

We were engaged by the board of directors of Dexus to prepare this independent assurance report
having regard to the criteria specified by the board of directors of Dexus and set out in this report.
This report was prepared solely for Dexus to assist the directors in responding to their governance
responsibilities by obtaining an independent assurance report in connection with the Selected subject
matter.
We accept no duty, responsibility or liability to anyone other than Dexus in connection with this report
or to Dexus for the consequences of using or relying on it for a purpose other than that referred to
above. We make no representation concerning the appropriateness of this report for anyone other
than Dexus and if anyone other than Dexus chooses to use or rely on it they do so at their own risk.
This disclaimer applies to the maximum extent permitted by law and, without limitation, to liability
arising in negligence or under statute and even if we consent to anyone other than Dexus receiving or
using this report.

PricewaterhouseCoopers

Caroline Mara Sydney

Partner 19 August 2024

198 Dexus 2024 Annual Report

Key ASX announcements
Date Announcement Date Announcement

17/07/2024 Changes to Leadership Team 15/12/2023 Portfolio valuation update

05/07/2024 Change in substantial holding 11/12/2023 Ross Du Vernet appointed as Dexus CEO

27/06/2024 Sale of three assets 30/11/2023 Dexus achieves final completion of

Collimate Capital acquisition
20/06/2024 Portfolio valuation update
14/11/2023 Appendix 3Y – Elana Rubin
19/06/2024 FY24 estimated distribution details
01/11/2023 2023 Dexus Investor Day
07/05/2024 March 2024 quarter update
31/10/2023 Appendix 3Y – Warwick Negus
07/05/2024 Macquarie Australia Conference

Overview
31/10/2023 Appendix 3Y – Rhoda Phillippo
24/04/2024 Appointment of non-executive director
30/10/2023 Condition precedent satisfied for
12/04/2024 Appendix 3H final completion of Collimate Capital
acquisition
12/04/2024 Appendix 3G
25/10/2023 September 2023 quarter update
09/04/2024 Appendix 3H

Approach
25/10/2023 2023 AGM Chair and CEO Address
03/04/2024 Appendix 3Z – Penny Bingham-Hall
25/10/2023 Darren Steinberg to step down as
02/04/2024 Appendix 3Z – Darren Steinberg Dexus CEO
02/04/2024 Appendix 3X – Ross Du Vernet 25/10/2023 2023 Annual General Meeting results
27/03/2024 Resignation of non-executive director 12/10/2023 Appendix 3G

Performance
22/03/2024 Correction to Appendix 3G 12/10/2023 Appendix 3H
22/03/2024 Correction to Appendix 3H 22/09/2023 2023 Notice of Annual General Meeting
19/03/2024 Exercise of Put Option 07/09/2023 Appendix 3G
19/03/2024 Appendix 3H 05/09/2023 Appendix 3Y – Darren Steinberg
04/03/2024 Change in substantial holding 04/09/2023 Appendix 3H

Governance
29/12/2024 December 2023 distribution payment 04/09/2023 Appendix 3G
22/02/2024 Appendix 3Y – Rhoda Phillippo 29/08/2023 Appendix 3Y – Rhoda Phillippo
14/02/2024 HY24 Results presentation 25/08/2023 Appendix 3Y – Elana Rubin
14/02/2024 HY24 Appendix 4D and Financial 18/08/2023 Sale of 1 Margaret Street Sydney
Statements
16/08/2023 2023 Annual Report

Directors’ report
14/02/2024 HY24 Results release
16/08/2023 Appendix 4G and 2024 Corporate
14/02/2024 HY24 Distribution details Governance Statement
14/02/2024 HY24 Property synopsis 16/08/2023 2023 Annual Results Presentation
19/01/2024 Appendix 3G 16/08/2023 2023 Sustainability Approach and
Data Pack
19/01/2024 Appendix 3G
16/08/2023 2023 Sustainability data pack (xls)
19/01/2024 Appendix 3Y – Darren Steinberg
Financial report

16/08/2023 2023 Synopsis

19/01/2024 Appendix 3H
16/08/2023 2023 Financial Statements
02/01/2024 Change in substantial holding
16/08/2023 2023 Appendix 4E
02/01/2024 Ceasing to be a substantial holder
16/08/2023 2023 Final Distribution details
19/12/2023 Appendix 3G
21/07/2023 Change of address details
15/12/2023 HY24 estimated distribution details
Investor information

199
Our memberships and affiliations
Dexus holds memberships and affiliations with key
industry bodies that are relevant to its investments
and operations.

Dexus’s industry memberships ensure that its views are represented on advocacy, on policy and legislation.
The benefits of collaborating with industry peers include strategic partnerships, research, professional development
and networking opportunities.
Dexus regularly reviews these memberships for relevance to its business and alignment with its corporate values.
Current Dexus corporate memberships and commitments include:

Member

Constituent Signatory

200 Dexus 2024 Annual Report

Directory
Dexus Property Trust Investor Enquiries
ARSN 648 526 470 Registry Infoline: +61 1800 819 675
Investor Relations: +612 9017 1330
Dexus Operations Trust E: [email protected]
ARSN 110 521 223
Security Registry
Responsible Entity Link Market Services Limited
Level 12, 680 George Street
Dexus Funds Management Limited
Sydney NSW 2000
ABN 24 060 920 783
AFSL 238163 Locked Bag A14
Sydney South NSW 1235
Directors of the Responsible Entity
W: linkmarketservices.com.au
Warwick Negus, Chair E: [email protected]
Ross Du Vernet, Group CEO & Managing Director
Paula Dwyer Open Monday to Friday between 8.30am and
Mark H Ford 5.30pm (Sydney time).
Peeyush Gupta AM For enquiries regarding security holdings, contact the
Rhoda Phillippo security registry, or access security holding details at
The Hon. Nicola Roxon www.dexus.com/update
Elana Rubin AM
Australian Securities Exchange
Secretaries of the Responsible Entity
ASX Code: DXS
Brett Cameron
Scott Mahony
Social media
Registered office of the Responsible Entity DXS engages with its followers via LinkedIn
Level 30, 50 Bridge Street
Sydney NSW 2000
PO Box R1822
Royal Exchange
Sydney NSW 1225
T: +61 2 9017 1100
F: +61 2 9017 1101
E: [email protected]
W: www.dexus.com

Auditor
PricewaterhouseCoopers
Chartered Accountants
One International Towers Sydney
Watermans Quay
Barangaroo NSW 2000

Report scope
This Annual Report has been prepared in accordance with the content elements of the 2021 International <IR> Framework, which we use to identify
material issues from an enterprise value perspective and clearly articulate how we deliver sustained value for all stakeholders. An index is provided
on pages 194–195 of this report. PwC has been engaged to provide limited assurance as to whether Content Elements of the Integrated Reporting
Framework have been addressed in the report as described in this Index. This assurance is focused on whether these Content Elements have been
included in this report but does not extend to assessing the accuracy or validity of any statement made throughout this report.
We have also used the GRI Standards to understand material issues from a stakeholder impact perspective, as disclosed across our 2024 Annual
Reporting Suite, which is prepared in accordance with the GRI Standards: (GRI Content Index available at www.dexus.com/sustainability).
PwC has provided limited assurance over select environmental and social data and methodology, within the 2024 Annual Reporting Suite
covering the 12 months to 30 June 2024 (assurance statement available at www.dexus.com/sustainability). The Annual Report covers financial
performance at all locations. Dexus has applied the principles contained within the National Greenhouse and Energy Reporting Act 2007 (NGERA)
and its associated guidelines in the development of our environmental reporting boundary, which comprises of our corporate operations and
managed property portfolio. Additional information on financial, people, customer, community, supplier and environmental datasets is available at
www.dexus.com/sustainability.
dexus.com