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Dexus Wholesale Australian Property Fund (DWAPF)

Direct Property Fund which aims to provide regular distribution

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INDUSTRY

Commercial Property

STATUS

Trading

OPEN TO

Wholesale investors and advised retail investors

Investment Highlights

Company Overview

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Investment Highlights

Open-ended fund established 1985

7.9% return to investors (net of fees) since inception [1]

Gross assets of approximately $1.9 billion as of 30 September 24

Diversified across the office, retail and industrial sectors

Portfolio occupancy of 97.1% and WALE of 4.5 years

Gearing range of 0-45% with long-term target 0-15% of gross assets

Monthly redemption windows with payments to be made within 12 months (subject to conditions) [2]

1- Past performance is not an indication of future performance

2- While the Fund is liquid, the Responsible Entity aims to pay redemptions within 12 months receiving the redemption request, however this may be extended in certain circumstances.

Fund Suitability

The Dexus Wholesale Australian Property Fund is intended for use as a minor to satellite allocation within a diversified investment portfolio for an investor who is seeking capital growth and regular income distributions and has a high risk and return profile for that portion of their investment portfolio. It is likely to be consistent with the financial situation and needs of an investor who has a 5-year investment timeframe and who is unlikely to need to withdraw their money on less than one year's notice.

Fund Overview

The Dexus Wholesale Australian Property Fund aims to provide investors with income and long-term capital growth by currently investing in 24 quality commercial properties in major metropolitan markets throughout Australia.

Commercial vs residential – commercial property has historically offered a better income yield than residential property, but the cost of individual commercial properties is prohibitive for most individual investors. Investing via the Dexus Wholesale Australian Property Fund allows investors to benefit from a $1.9 billion portfolio for as little as $10,000 [4].

Access to your Investment – ‘liquidity’ is the term used to describe when you can withdraw from a fund. The Dexus Wholesale Australian Property Fund allows you to submit a withdrawal at any time. Withdrawals are processed on a monthly basis, with payments to be made within 12 months after receiving a withdrawal request. [1]

Secondary selling of units: innovative partnership with PrimaryMarkets that may allow investors the option of buying / selling units on the PrimaryMarkets Platform that may create an alternative liquidity solution for unit holders.

Quarterly distribution – the ‘distribution’ is the amount of cash investors are paid. The Dexus Wholesale Australian Property Fund has paid a distribution every quarter since its inception in 1985. [2]

Gearing – range of 0-45% of gross assets with long-term target 0-15% of gross assets [3], Current gearing is 30.6%[4].

Diversified portfolio – the Fund has a high-quality portfolio of assets which are diversified across Australia’s major metropolitan markets. The Fund is well diversified by tenant, property and market.

High occupancy rate – over the past 15 years, the Fund has maintained an occupancy rate of 97.1%[5]. The Fund’s consistently-high occupancy rate has allowed a reliable distribution to be paid to investors.

Cost competitive – there is no application fee, no buy/sell spread, no performance fee and no stamp duty payable by new investors on existing fund assets.

1 - While the Fund is liquid, the Responsible Entity aims to pay redemptions within 12 months receiving the redemption request, however this may be extended in certain circumstances.

2- Past performance is not an indication of future performance

3- At the time the debt is drawn

4- As of 30 September 2024

5- As of 30 September 2024

Navigating the Market

The 24 direct property interests are diversified across different sectors, with approximately 350 tenants supporting the cashflow. These tenants operate in a range of industries and the largest tenants in the portfolio account for just 5.6% of the total Fund's revenue.[6]

The portfolio is diversified across major metropolitan cities with properties located in Sydney, Melbourne, Brisbane, Adelaide and the Gold Coast and the Fund’s largest assets account for just 10.5% of the portfolio.[6]

Dexus DWAPF Fund Profile_30 June 2024 (004)

Retail Portfolio

The retail portfolio has a long-term occupancy rate of 99%.

Three of the four retail properties are anchored by supermarkets and approximately 65% of the revenue is paid by: supermarkets (Coles, Woolworths, Aldi), fresh food (butchers, bakers, grocers etc), healthcare (chemists, pharmacists etc), personal services that cannot be fulfilled online (hairdressers, beauty, wellness, fitness etc); essential services (banks and Australia Post); other services (dry cleaning, car wash etc), or major corporate tenants or government (Kmart, local government).[6]

Logistics Portfolio

The Fund’s properties are located in established markets in the major capital cities of Australia and has a long-term occupancy rate of 97%. The properties are versatile and have been well-maintained, making them attractive to a wide range of tenants.

Office Portfolio

The Fund’s office portfolio is characterised by its ability to offer tenants quality accommodation at affordable rents in high-amenity locations.

The properties are often in highly urbanised areas which offer excellent transport links but are generally outside major CBDs.

Locations include Mascot in Sydney, North Sydney, Newstead and South Brisbane, in Brisbane and St Kilda in Melbourne.

The portfolio generally caters to small and medium sized tenants which is part of the market with the greatest volume of activity.

Dexus is one of Australia’s leading office managers with a specialist in-house leasing team ensuring complete market coverage, unparalleled access to leasing deal flow and market intelligence.

6- As of 30 September 2024

Company Overview

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.

Dexus directly and indirectly owns $14.8 billion of office, industrial, retail, healthcare, infrastructure and alternatives. Dexus manages 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. Dexus believes that the strength and quality of its relationships will always be central to its success and are deeply connected to our purpose Unlock potential, create tomorrow.

Dexus' sustainability approach is focused on the priority areas where it believes it can make a 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.

Fund Manager

Christopher Davitt is the Fund Manager for the Dexus Wholesale Australian Property Fund and has overarching responsibility for setting the Fund’s strategy and capital management. Christopher works with Dexus’s specialist teams to formulate asset plans for each of the Fund’s properties and make acquisitions and divestments.

Christopher joined Dexus in 2022 as part of Dexus’s wider acquisition AMP Capital. He joined AMP Capital in March 2010 having previously held research, transaction and funds management roles in Australia and Europe.

Risks

All investing involves risk, and you should consider investment risks before making an investment decision. The risks specific to the Fund may include or be associated with:

Property investments – factors such as investor demand for property, the demand by tenants for commercial space, rental income levels, tenants’ ability to service rental payments, the supply of new commercial space, capital expenditure and ongoing expenses for maintenance and repairs may affect the Fund’s performance.

Liquidity – assets subject to liquidity risk may be difficult to trade and it may take longer for their full value to be realised, and in circumstances where the Fund's portfolio ceases to be ‘liquid’ for Corporations Act purposes, there may be significant delays or a freeze on withdrawal requests. Market conditions may adversely impact the liquidity of assets held in a fund portfolio.

Interest rates – including the risk of capital loss in a rising interest rate environment.

Gearing – has the effect of magnifying the Fund’s returns, both positive and negative.

Derivatives – the use of derivatives may magnify any losses incurred.

Market risk – certain events may have a negative effect on the economies and financial markets worldwide or in specific countries or regions which may negatively affect the value of investments including the Fund's investments.

Product Disclosure Statement is available at:

www.dexus.com/dwapfinvest

Important note: Investors and potential investors should consider the Product Disclosure Statement (“PDS”) available from Dexus Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (“DCFM”) for the Dexus Wholesale Australian Property Fund (“Fund”) before making any decision regarding the Fund. The PDS contains important information about investing in the Fund and it is important investors read the PDS before making a decision about whether to acquire, continue to hold or dispose of units in the Fund. A target market determination has been made in respect of the Fund and is available at www.dexus.com/dwapf.

DCFM is the responsible entity of the Fund and the issuer of units in the Fund. DCFM is a wholly owned subsidiary of Dexus (ASX: DXS). Any investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither DCFM, Dexus nor any other company in the Dexus group guarantees the repayment of capital or the performance of the Fund or any particular rate of return referred to in this document. Past performance is not a reliable indicator of future performance. For details of the Fund’s performance over different time periods, please refer to the Fund information page at this link: www.dexus.com/dwapf.

While every care has been taken in the preparation of this document, DCFM and Dexus make no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to their objectives, financial situation and needs.