Investor Presentaiton
Prime grade properties better placed
Dexus portfolio predominantly weighted to Prime grade
> We expect quality assets to perform better in the current environment, with
regard to both tenant demand (continued flight to quality) and investor demand
> Strong market rental growth to provide some support for industrial valuations
› Direct property investors tend to hold long term investment horizons
Sydney CBD office capitalisation rates by grade
12%
10%
8%
6%
Premium
Average Prime
-Average Secondary
4%
2%
0%
Jun-02
Jun-06
Jun-10
Jun-14
Jun-18
Jun-22
Source: JLL Research
1.
Outer Western Sydney industrial market cap rate data used.
63
Dexus 2022 Annual Results Presentation
Sydney industrial capitalisation rates by grade¹
- Upper Prime
- Average Prime
Average Secondary
12%
10%
8%
Prime grade 94% of
Dexus office
6%
portfolio
4%
2%
0%
Jun-02
Jun-06
Jun-10
Jun-14
Jun-18
Jun-22
dexus
Spread between
avg prime and
secondary
properties is
starting to widen
after reaching a
decade low of
50bps in June 2021
17 August 2022View entire presentation