Dexus

Thank you for standing by and welcome to the DEXIS HY26 results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Ross DuVernay, Group CEO and Managing Director. Please go ahead.

Well, good morning, everyone, and thanks for joining us for our half-year 2026 results presentation. I'd like to begin today by acknowledging the traditional custodians of the lands and waterways upon which we operate and pay our respects to Elders past and present. Today you hear from Kiera on the financials, Andy on office, Chris on industrial and Michael on funds management. Concluding the presentation, I'll provide a summary and open up to any questions that you may have. Texas is a unique investment proposition in the Australasian real asset market. Today we manage $51 billion of assets across our platform, with third-party funds under management at 2.4 times our investment portfolio. We have scale and diversity across the real asset spectrum, $20 billion in office and around $10 billion in each industrial, retail and growth markets, which includes infrastructure, healthcare and alternatives. This scale is underpinned by our multi-disciplinary team with deep expertise across each sector. Importantly, we have access to diverse pools of equity capital, which positions us well to capitalise on opportunities through the cycle. Our strategy is unchanged and our vision to be globally recognised as Australasia's leading real asset manager continues to guide our decisions. The strategy targets large growing markets, leveraging our multi-sector strengths in transacting, managing and developing across each. Our high quality balance sheet portfolio, together with our large diversified funds management business, continues to differentiate us. Today, the investment portfolio is anchored by prime office exposure across Australia's major CBDs. Over time, the investment portfolio will continue to become more diversified. by investing alongside capital partners into a diverse range of opportunities. Our culture, the quality and scale of the portfolio and projects we have underway, coupled with our approach to people, enable us to attract, retain and develop leading talent to ultimately create value for customers, clients and you, our investors. Turning to our results. We delivered AFFO of $253 million and distributions per security of 19.3 cents. This was the second consecutive six-month period of positive property portfolio valuations, which supported the delivery of a statutory net profit and an increase in NTA to $8.95 per security. Our office leasing volumes were almost double that of levels achieved in the prior corresponding half. including further progress at Waterfront in Brisbane, which is now 71% pre-leased, and will deliver a premium product in the strong Brisbane office market. Our industrial portfolio, as we expected, delivered strong like-for-like growth and re-leasing spreads. We undertook $800 million of divestments for the balance sheet, including the recently agreed divestment of 100 Mount Street in North Sydney. If we turn to the fund's business, we continue to work through some fund-specific matters while positioning the business for long-term success. Our flagship funds continue to outperform, DWPF outperforming its benchmark across all time periods, while DWSF, the shopping centre fund, has outperformed since joining the platform. We raised over $950 million of equity, comprised $640 million of new equity commitments, and the facilitation of more than $280 million in secondary unit transactions. We established a new fund series, we closed DREC2 above its initial target, and we continued to rationalise sub-scale funds to simplify the platform. In August, I outlined our action items for FY26, aligned to our three strategic priority areas of transitioning the balance sheet maximising the contribution of the fund's business and unlocking our deep sector expertise. In addition to the progress I mentioned on the previous slide, key development milestones were achieved at Waterfront in Brisbane. The DEXAS office and the industrial portfolios delivered positive total returns over the 12-month period. And DEXAS has now secured $1.4 billion of divestments since 30 June 2024, progressing well towards our $2 billion target. We invested $170 million of seed capital into DCIP1, a new fund series, which we aim to reduce to $50 million during the year. We've reduced the real estate redemption queue by $1 billion, and post the APAC court date scheduled for April this year, we expect to make more progress on solving infrastructure redemptions. Overall, we've made solid progress and remain focused on the priorities that will position the business for long-term success. Our sustainability strategy focuses on three priority areas where we can make the greatest impact across climate action, customer prosperity and enhancing communities. Sustainability remains core to how we operate, and we continue to receive global recognition for our performance. Thank you, and I now pass you over to Kea.

Thanks, Ross, and good morning, everyone. Turning to the results in detail. In line with expectations, total AFFO was with a distribution of 19.3 cents per security, reflecting a payout ratio of 82%. Office FFO reduced primarily due to divestments and lower average occupancy, partly offset by contracted rent increases. Industrial portfolio income increased due to higher occupancy, development completions and contracted rent increases, partly offset by divestments. FFO from management operations decreased due to lower FUM as a result of divestments and slightly lower performance fees, with $19 million realised in the first half and $16 million secured for the second half. Finance costs were broadly flat, with a higher cost of debt offset by higher interest income. As expected, trading profits were higher with the sale of Brook Hollow, Chester Hill and continuing construction at Preston's, securing FY26 guidance. Maintenance and leasing CapEx is skewed to the first half of the year, mainly due to the impact of incentives on deals secured in prior periods, as well as the timing of maintenance CapEx. Looking ahead to FY27, performance fees and trading profits are expected to be materially lower than FY26. It has been positive to see the second six-month period of valuation growth across the office and industrial portfolios. Overall, for the six months to 31 December, the portfolio increased by 1%. Capitalisation rates have stabilised, with the valuation movement predominantly driven by rental growth. Our office portfolio, which is 77% weighted to core CBD markets, increased by 0.7 of a percent, and our industrial portfolio, which is 90% weighted to core industrial estates and distribution centres, increased by 1.6%. Pleasingly, these outcomes demonstrate the quality of the portfolio. Moving to capital management, our balance sheet remains solid. We've looked through gearing towards the lower end of the 30 to 40% target range, providing capacity to fund committed expenditure. During the half, we issued $500 million of subordinated notes at attractive rates and diversifying our funding sources. We have been active with refinancing, resulting in a weighted average debt maturity of 4.6 years, $2.5 billion of headroom and manageable near-term debt maturities. 95% of our debt was hedged during the half at an average rate of 2.9%, providing material interest rate protection. Looking forward, there's $1.2 billion of remaining spend on the Committed Development Pipeline over the next four years, with $360 million expected to be incurred in the second half of FY26. Thank you, and I'll now hand over to Andy.