Our strategy
Dexus’s strategy is to deliver superior risk-adjusted returns for investors from high quality real estate in Australia’s major cities.
Delivering superior risk-adjusted returns means outperforming the relevant three and five year benchmarks in each market in which Dexus owns or manages properties while providing Dexus Security holders with sustainable and growing distributions.
- Leadership in office: being the leading owner and manager of Australian office property
- Funds management partner of choice: being the wholesale partner of choice in Australian property
Leadership in office is an aspiration that is supported by our scale. As the largest office owner and manager in Australia, we have scale that provides many advantages.
Our scale supports the generation of investment outperformance, through providing valuable customer insights and the opportunity to invest in people, systems and technologies that enhance our customers’ experience. It also enhances our ability to find the ideal workspace solution for customers and generates cost efficiencies.
Our objectives of leadership in office and funds management partner of choice complement each other. Our success in the office sector has enabled Dexus to attract investment partners not just in office, but also in the industrial, and healthcare sectors, in turn providing the opportunity to drive investment performance for those clients.
How our business creates value
Our strategy is underpinned by our business activities of developing, managing and transacting properties.
To generate superior risk-adjusted returns for investors it is necessary that for each asset we own or manage, we maximise cash flow and unlock value over the investment lifecycle.
- Property portfolio - the largest driver of value and contains the Dexus office and industrial portfolios
- Funds Management - provides access to wholesale sources of capital and a steady annuity-style income stream
- Trading - packaging of investment opportunities to generate trading profits
What sets Dexus apart?
- High performing, engaged and diverse workforce
- Quality real estate portfolio across key Australian cities
- Funds management business with access to diverse sources of capital
- Pipeline of development opportunities to create value over the long term
- Customer centric focus
Long-term value creation
To support long-term value creation, we consider corporate responsibility and sustainability an integral part of our business activities. Our approach supports our strategy through the overarching goal of delivering sustained value for all stakeholders. The outcomes we seek to achieve are as follows:
To learn more about our approach to managing these areas as well as our FY18 achievements and performance visit our website
Performance against strategy
We achieved strong performance against our strategic objectives and key focus areas, delivering sustained value for Security holders.
Leadership in office
Dexus’s owned and group office portfolios achieved IPD outperformance over the 1, 3 and 5 years to 31 March 2018. Supporting our strategic objective of leadership in office, leasing success enabled us to maintain high portfolio occupancy and lock in future income streams across the development pipeline. From a development perspective, two office projects were activated in Melbourne and Brisbane, and we successfully leased1 51% of the space at 240 St Georges Terrace in Perth, where development works commenced in July 2018.
Funds management partner of choice
Supporting our strategic objective of being the wholesale partner of choice in Australian property, we achieved strong performance for our wholesale investors and clients, with DWPF outperforming over 1, 3, 5, 7 and 10 year time periods. In addition, the first round equity raise for the Healthcare Wholesale Property Fund was completed. The $2.0 billion funds management development pipeline was progressed, and a number of transactions were undertaken to meet our clients’ investment objectives.
Dexus office portfolio performance vs IPD2
Third party funds under management
We achieved strong outcomes across our key focus areas of Customer, People and Environment. These results assist us in fulfilling our strategic objectives and delivering sustained value for Security holders.
Creating value from earnings drivers
The FY18 contribution for our earnings drivers and outlook for FY19 is outlined below.
- Including Heads of Agreement signed post 30 June 2018, with 57% of the impending Woodside vacancy now solved.
- As at 31 March 2018.
- Net Promoter Score (NPS) is calculated as the difference between the percentage of Promoters and Detractors. The NPS is expressed as an absolute number between -100 and +100.
- Adjusted funds from operations.
- Net of tax.