Good morning, everyone. Okay, we'll get underway, being 10:00 A.M. or just past. So welcome, and I'd like to welcome those in the room and also via our online portal to the 2023 annual general meeting of Dexus Industria REIT. My name, for those who I haven't met, is Jennifer Horrigan, and I am the Chair and Independent Director of Dexus Asset Management Limited, the responsible entity of Industria Trusts 1 to 4, and Industria Company No. 1 Limited, which together, as you'd be aware, comprise Dexus Industria REIT. We appreciate that not all security holders can attend in person, and we're pleased to provide the opportunity for everyone to participate in the meeting through our hybrid meeting format. Before we start the meeting, as a courtesy to everyone present, may I ask our audience in the room to ensure your mobile phones are off or on silent.
You'll be pleased to know this year I remembered to turn mine off. In the unlikely event of an emergency, the closest emergency exit is located down the corridor outside of this room, next to the main entry lifts. The restrooms are located in the corridor around the corner to the left after you exit this room. I will table my appointment as Chair of today's meeting and open the meeting. For security holders unable to attend the meeting in person, we welcome you to the meeting via Link Market Services online meeting platform, which enables you to view the meeting live, vote while the meeting is underway, and also submit questions.
If you have any questions to put to the meeting today, we suggest that you submit your questions as early as you can, specifying whether the question relates to general business or to a specific resolution, and these will be addressed at the appropriate time during the meeting. For our security holders joining us today in the room, we ask that you raise your admission card during question times to indicate you have a question. We will take questions from the floor, followed by any questions submitted via the online platform. Note, we have not received any calls through our conference call telephone line prior to today's meeting.
For those security holders joining us online, if you are yet to access your voting card to vote on the resolutions for the meeting, you should click the Get a Voting Card button at the top of your screen to register first, which will then enable you to submit your vote at any time during the meeting. If you are a security holder, you will need your security holder number and postcode to register your vote. If you are a proxy holder, please enter the proxy number issued to you by Link Market Services in the Proxy Details section and then click the Submit Details and Vote button. Please note that online voting will close 5 minutes after the close of the meeting, and the results will be released to the ASX later today.
On behalf of the board, I would like to start by acknowledging the traditional custodians of the land on which we are presenting from today, and we pay our respects to their elders, past and present. I would also like to welcome any First Nations people joining our meeting today. I'm very pleased to introduce my fellow directors and the DXI Fund Manager. Firstly, Emily Smith, who Chairs the Audit and Risk Committee, Danielle Carter, Independent Director, Jonathan Sweeney, Independent Director, and Deborah Coakley, an Executive Director and Executive General Manager, Funds Management with Dexus, who is joining us virtually today, and Alex Abell, the Fund Manager of Dexus Industria REIT. I would also like to welcome our Company Secretary, Scott Mahoney, along with a representative from our auditors at PricewaterhouseCoopers and lawyers from King & Wood Mallesons.
Accordingly, I formally call for a poll on all of the resolutions to be put to the meeting today and declare the poll open so you can lodge your votes at any time during the meeting. The agenda for today's AGM will begin with the Chair's address, which will provide an overview of the Fund's vision and positioning in the current operating environment. I'll then hand over to Alex, who will provide more details on DXI's strategy, assets, and our most recent initiatives to position the Fund for long-term performance. We will also provide our investors with the opportunity to ask any questions. Following Alex's address, we will then turn to the formal aspects of the AGM and the series of resolutions outlined in the notice of meeting and the explanatory memorandum sent out to our security holders in mid-October.
Accordingly, I formally call for a poll on all resolutions to be put to the meeting and declare the polls open, so you can now start to lodge your votes. Moving to the Chair's address. The macroeconomic environment continues to be highly challenging, with significant volatility across global markets, escalated inflation, rising interest rates, and continuing geopolitical unrest. The impact of higher floating interest rates provides a material headwind, which is being felt across the REIT sector. Recognizing the challenging environment, we have taken action to ensure the Fund remains well-positioned. These actions included divesting AUD 250 million of assets, including two large business park properties at Rhodes, reducing income risk across the portfolio, and further strengthening the balance sheet with gearing of 27.3% at 30 June 2023, which is below the target range. We also delivered developments which meet the fund's required criteria.
Also ensured the portfolio is appropriately marked to market, with all assets undergoing external valuations at 31 December 2022 and 30 June 2023. We've remained disciplined and focused on continuing to execute the strategy to generate superior risk-adjusted returns for investors seeking listed industrial real estate exposure over the long term, through delivering organic income growth, underpinned by high occupancy and contracted rental growth, as well as capturing rental reversion upon lease expiry. We've also conservatively managed the balance sheet to enhance resilience and provide flexibility to invest opportunistically. We've also actively managed the portfolio, with the team continuing to develop strong leasing outcomes, with industrial occupancy maintained at 100% and BTP, Brisbane Technology Park, occupancy increasing to 86%. These activities are all driven by Dexus, an aligned manager with deep capability across capital transactions, development, leasing, and asset management.
ESG has been a focus of ours for many years, and we seek to deliver on commitments that create long-term value for our stakeholders, with initiatives such as solar, allowing us to reduce outgoings, achieve higher rents, and limit downtime. Some highlights from FY 2023 include: maintaining net zero status across the managed portfolio, installing additional solar with 2.3 megawatts of total arrays across the portfolio currently, and an additional 6.0 megawatts contracted for deployment in FY 2024. We've also designed an operational waste diversion program at BTP, which is expected to reduce the proportion of waste sent to landfill by at least 20% and lower waste-related expenses at BTP by circa 60%.
And we've also, from a governance perspective, completed our planned board renewal process during the year, which included the resignation of long-term directors while welcoming Danielle Carter and Jonathan Sweeney to the board. As security holders would be aware, last month, we announced Alex Abell's resignation from Dexus after serving as DXI's fund manager for the past 7 years. On behalf of the board and our security holders, I would like to acknowledge Alex's dedication and leadership of DXI and thank him for his significant contribution to DXI's success since his appointment in April 2016. A recruitment process for Alex's replacement is well underway, and the outcome of this will be advised to the ASX in due course. Finally, I would like to thank our security holders for their ongoing support of DXI.
I would also like to thank the management team, who are here today, for the results achieved in FY 2023. We will maintain a disciplined approach to capital allocation, and we will continue to actively manage the portfolio for the long-term benefit of our security holders. I will now hand over to Alex to provide his address.
Thank you, Jennifer, and good morning, everyone. In FY 2023, we delivered on our commitments, including guidance for FFO and distributions, while proactively disposing AUD 250 million of assets, repaying debt, and strengthening the balance sheet to reinvest into higher returning developments. Leasing activity was strong across the board, with double-digit re-leasing spreads that strengthened to 24% into the second half of the year, and the average rent review was 4.9%. We also continued to unlock new income streams with the completion of 50,000 square meters of high-quality developments leased to global e-commerce players, including Amazon and HelloFresh. The AUD 1.6 billion high-quality portfolio delivers income resilience through high occupancy, combined with annual rent reviews driven by CPI and fixed uplifts, and a diversified pool of tenants.
These property and income foundations are enhanced by the growth that we are poised to capture through the lease expiry profile and the development pipeline, which provides opportunities to capture strong market rental growth in future periods. In the FY 2024 year to date, we have continued to deliver on the strategy. This includes divesting two assets for AUD 45 million, which was a premium to the 30 June 2023 book value. These sales improve the portfolio quality and reduce the look-through gearing by circa 2 percentage points. In terms of our development pipeline, I'm pleased to report that Dexus has received the development approval for our project at Moorebank, and this is anticipated to deliver 17,800 square meters of new warehouse space located in one of Sydney's strongest submarkets at an attractive yield on cost of 6%.
After proactively selling almost AUD 300 million of assets, or 18% of the portfolio, over the last 12 months, the balance sheet has been positioned to withstand further market volatility, while also allowing the flexibility to pursue opportunistic investments when and if they arise. Development completions, double-digit re-leasing spreads, and 50% of the portfolio benefiting from CPI reviews are all positive factors contributing to our revenue expectations for FY 2024, although FFO impacts have been muted due to higher interest rates. We reiterate our FY 2024 guidance, with FFO of AUD 0.171 and distributions of AUD 0.164 per security.
It has been a privilege to oversee DXI since 2016, and I would like to thank the DXI board, the Dexus team, many of whom are with us in this room today, as well as our investors for your support over this period. Thank you very much for your ongoing support, and I will now hand back to Jennifer.
Thank you, Alex. We now have time for questions. So are there any questions of a general nature that security holders would like to pose? We'll take them from the room firstly. Okay, and if not, we will check whether there are any questions from the online portal.
There are no questions online, Chair.
Okay. Thank you. Okay, given that, we will now. Oops, excuse the microphone. We'll now continue with the formal business of the meeting. So today's meeting has been convened in accordance with the constitutions of the company and each of the trusts that comprise Dexus Industria REIT and the Corporations Act. And I have been informed by the registry, Link Market Services, that a quorum is present to enable the formal resolutions, the subject of the meeting, to be considered and passed. If you have not already done so, please click the Cast Vote or Cast Partial Vote button on your screen to register your vote. There are six resolutions, and each must be considered separately. Resolution one is the adoption of the company's remuneration report.
Resolution 1 is an ordinary resolution and concerns the adoption of the remuneration report of Industria Company No. 1 Limited for the year ended 30 June, 2023. Under the Corporations Act, a listed company is required at its AGM to put to its shareholders a resolution to approve its remuneration report. Despite the fact that no remuneration is paid by DXI, we have complied with these requirements. The remuneration report was included in the Industria Company No. 1 Limited's 2023 financial statements. Copies of these financial statements are available at this meeting and are also available to download on our website. From reviewing these documents, our security holders would be aware that the remuneration report is referred to as a nil remuneration report, because DXI is externally managed, and Dexus, as the manager of DXI, pays the remuneration for employees and directors of DXI.
The nil remuneration paid by DXI is confirmed in the Remuneration Report. The proxies received are detailed on the screen and represent circa 59.7% of the issued capital. Are there any questions in relation to Resolution 1? We will check the online platform.
Chair, there are no questions online.
Okay. Thank you. Okay, I will now turn to resolution 2. As resolution 2 relates to my re-election, I will ask Emily Smith, the Chair of our Audit and Risk, to chair the meeting for resolution 2.
Thank you, Jennifer. Resolution 2 is an ordinary resolution of the company and seeks the re-election of Jennifer Horrigan as a director of the company. The proxies received are detailed on the slide and represent circa 59.7% of issued capital. Before we turn to questions relating to this resolution, I will ask Jennifer to present to the meeting.
Thank you, Emily. I'm a proud security holder in Dexus Industria REIT, and in support of my re-election as a director of DXI, I'm pleased to provide the following background on myself. I'm an experienced chairman and director across ASX listed, unlisted, and not-for-profit boards, with specific sector experience in property, both real estate and infrastructure, funds management, financial services, transport, consumer-facing businesses, and healthcare. My executive career included 25 years of commercial experience across investment banking, investor relations, and financial communications, and I was formerly the Chief Operating Officer in Australia of the independent investment bank, Greenhill and Co, formerly known as Greenhill Caliburn. My qualifications include a Bachelor of Business, a Graduate Diploma in Applied Finance from Finsia, and a Graduate Diploma in Management from the Australian Graduate School of Management, and I'm a member of the Australian Institute of Company Directors.
I currently serve as a non-exec director of A2B Limited and Yarra Funds Management, and as an independent director of Dexus Capital Funds Management and Dexus Capital Investment Services. I previously served as a non-exec director of Generation Healthcare, QV Equities, and as chairman of the National Children's Cancer Charity, Redkite.... As an independent director of DXI, my responsibilities are to represent the best interests of all security holders, and I bring a high level of diligence and commitment to this role. I am pleased to submit myself for re-election as a director of the company. Thank you.
Thank you, Jennifer. Are there any questions in relation to Resolution Two? And online?
There are no questions online.
I will now hand back to Jennifer to chair the remainder of the meeting.
Thank you. Thank you, Emily. We will now move to Resolution Three. Resolution Three is an ordinary resolution of the company and seeks the re-election of Deborah Coakley as an executive director of the company. The proxies received are detailed on the slide and represent circa 59.7% of the issued capital. Before we turn to questions relating to this resolution, I will ask Deborah to present to the meeting.
Thank you. Thank you, Jennifer, and my apologies to all those in the room that I could not be with you today. It remains an honor to serve on the Dexus Asset Management Board. I bring extensive senior management experience, gained over 25 years across real estate, funds management, aviation, and the consulting sectors. My executive career at Dexus has included leadership roles in funds management, property services, and human resources. I led a team of expert professionals who manage AUD 44 billion in funds on behalf of retail, listed, wholesale, and unlisted investors. I'm an executive director on several of our internal responsible entity boards, including the Dexus Wholesale Funds Management Limited and Dexus Capital Funds Management Limited. I currently serve as the Deputy President of the Property Council of Australia, and I'm the former President of the Capital Markets Division of the Council.
I'm also a member of the National Construction Industry Forum. I'm committed to using my experience to serve the security holders of DXI to the best of my ability. I'm an advocate for ensuring performance is measured both financially as well as from an impact perspective. I stand for election today taking accountability of my responsibilities as an executive director and to represent the best interests of you, the security holders. Thank you.
Thank you, Deborah. Are there any questions in relation to Resolution Three? Any from the online?
There are no questions online.
Okay, thank you. We will now move to Resolution Four. Resolution 4.1 relates to the reinsertion. So, Resolutions 4.1 through to 4.5 are special resolutions relating to the reinsertion of the proportional takeover provisions in the constitutions of each of the trusts and the company that comprise DXI. Under the Corporations Act and the DXI constitutions, the provisions must be renewed or reinserted every 3 years, or they cease to have effect. The current provisions approved at the 2019 AGM have expired, and accordingly, it is proposed to reinsert, insert them. If reinserted, the DXI proportional takeover provisions will operate on the same basis as the constitutional provisions existing prior to the expiry of those provisions in October 2022, for a period of 3 years from today.
As outlined in the Notice of Meeting and the explanatory memorandum sent out in mid-October, the directors consider that the potential advantages for security holders of the Proportional Takeover Provisions outweigh the potential disadvantages. Resolution 4.1 is a special resolution and seeks the reinsertion of Industria Trust No. 1 Proportional Takeover Provisions into its constitution. The proxies received are detailed on the slide and represent circa 45.7% of the issued capital. Are there any questions in relation to Resolution 4.1? And online?
There are no questions online.
Thank you. As there are no questions related to this resolution, we'll now turn to Resolution 4.2. So 4.2 through to 4.5 may have a familiar ring to it, but it is important that we consider each resolution in turn. So Resolution 4.2 is a special resolution and seeks the reinsertion of Industria Trust No. 2 Proportional Takeover Provisions into its constitution. The proxies received are detailed on the slide and represent 45.7% of the issued capital. Are there any questions in relation to Resolution 4.2? Online?
There are no questions online.
Thank you. We will now turn to Resolution 4.3. Resolution 4.3 is a special resolution and seeks the reinsertion of Industria Trust No. 3 proportional takeover provisions into its constitution. The proxies received are detailed on the slide and represent circa 45.7% of the issued capital. Are there any questions in relation to Resolution 4.3? Online?
There are no questions online.
Okay, thank you. We will now turn to Resolution 4.4. Resolution 4.4 is a special resolution and seeks the reinsertion of Industria Trust No. 4 Proportional Takeover Provisions into its constitution. The proxies received on this resolution are detailed on the slide and represent 45.7% of the issued capital. Are there any questions in relation to Resolution 4.4? Online?
There are no questions online.
Thanks, Rowena. We will now turn to Resolution 4.5. Resolution 4.5 is, again, a special resolution and seeks the reinsertion of Industria Company No. 1 proportional takeover provisions into its constitution. The proxies received are detailed on the slide and represent circa 59.7% of the issued capital. Are there any questions in relation to Resolution 4.5? Online?
There are no questions online, Chair.
Thank you. Right. Once the votes from today's meeting are collected and counted, we will announce the final poll results for each resolution to the ASX and have them available on our website after the meeting. Before we conclude the meeting today, are there any further questions which security holders would like to pose from the room or online? Online?
There are no questions online.
Thank you. If there are no further questions, I will call on the representatives from Link Market Services to circulate the ballot boxes and collect your completed voting cards. For our security holders voting online, I ask that you complete your voting now, if you haven't already done so already, and remind you that the voting system will close 5 minutes after I formally close the meeting. Just giving adequate time. So ladies and gentlemen, that ends the formal part of today's meeting. I would like to thank you, our security holders, for your continued support and for attending the meeting today. I'd like to extend the board's thanks to members of management and our advisors who are here today, for your continued hard work and guidance during the year.
For those of you attending in person, I invite you to join my fellow directors and I, alongside members of our senior management team, for refreshments. I now formally close the meeting. Thank you.