DEXUS Property Group reported a net profit for the 2011 financial year of AU$553m, an increase of AU$521.6m over last year, while decreasing energy, greenhouse gas and water intensity across its entire portfolio.
DEXUS owns, manages and develops office, industrial and retail properties with total properties under management of more than A$13bn, primarily in Australia and the US. In its 2011 annual review, DEXUS reported on financial and non-financial performance, including its corporate responsibility and sustainability (CRS) indicators. DEXUS’ profit reflects the result of funds from operations (FFO) of AU$358m for the year and the revaluation of real estate, up AU$182m. The FFO of AU$358m is 7.4 cents per security and distributions paid were 5.2 cents per security for the year. The company reported gearing of 28.4%, access to multiple debt markets and limited short term debt expiries.
In its sustainability highlights, Dexus reported that throughout its portfolio, energy intensity fell 2.6% from 2010 to 270 megajoules/sqm, while greenhouse gas intensity fell 3.8% to 59.2kg of CO2 emissions/sqm and water intensity fell 2.8% to 555.7 litres/sqm. Dexus said that in the past three years, it achieved a 15.3% reduction in energy usage across the portfolio.
This year, the company integrated the recommendations in the UNPRI, of which DEXUS is a signatory. As part of that, DEXUS developed a “six pillar” strategic stakeholder approach – investors, tenants, suppliers, employees, community and environment and reported on stakeholder objectives and 2012 commitments.
The company reported improvements in its annual employee opinion survey, with employee engagement rising to 83%, up from 78% in 2010. Employees reported improved performance from management across areas including working relationships, balancing work, diversity and employment brand. Service excellence was identified as an area of development and will be a focus for the 2012 financial year. Overall, employee engagement and benefits have been identified by DEXUS as a material issue for the company,
DEXUS said it outperformed in 18 of the top 19 categories of the Towers Watson Australian National Norm and in several categories of the Global High Performing Norm. In the second half of 2011, DEXUS implemented a new quarterly business performance system which measures performance against key performance indicators (KPIs) across business units. The KPIs “are aligned to our group objectives to achieve top quartile investment performance, earnings per share growth and further build our leadership position,” the report said.
On the governance side, in 2011, the company established a new board membership policy that outlined its take on directors serving on multiple boards, “to guard against directors over committing their time,” the report said. The company also created a diversity policy.
In June 2011, we agreed objectives and one of these was to achieve at least 33% female participation in senior management and the board by June 2015,” said Christopher Beare, board chair, in the review. “I am pleased to report that we currently sit at 31% female participation. This represents the top 30% of our workforce, including the board, and is one of the highest in the ASX 100. We continue to support and encourage diversity at all levels – the board of directors, the senior management team and throughout our organisation. The board and management oversee progress towards the achievement of our diversity objectives, including regular monitoring of key workforce demographics.”
For 2012, the company committed to developing a stakeholder engagement framework “incorporating engagement principles and service excellence standards for all operational areas of the business” and expanding the CR&S platform to the US business. The company also committed to increasing like-for-like income growth for its office portfolio and achieving complete residual leasing for its 1 Bligh property, completing 80,000 square metres of developments on its industrial portfolio while realising trading profits of more than AU$4m, and in its US industrial portfolio, increasing central market occupancy by more than 6%.
“In the US we are partnering with Whirlpool to undertake the largest rooftop solar panel installation in the country,” the report said. “This will also be the first US solar power rooftop generation system with 100% of the electricity generated being transferred directly to the neighbouring SCE energy grid.”