Thank you for standing by, and welcome to the Dexus 2023 Half Year 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 one on your telephone keypad. Officer, please go ahead. Good morning, everyone. Thanks for joining us today for our. I'd like to start today's presentation by acknowledging the traditional custodians of the lands on which we operate, and pay our respects to them and future. Today, you'll hear from Keir on the financials, Deb on our funds business, Kevin on office, Stewart on industrial, and Ross on investments and our development you might have. Despite subdued market conditions, it's been an active six months. 2022 result, recycling capital into higher returning opportunities and maintaining a strong balance sheet with low gearing, substantial headroom. We continue to grow our healthcare fund and our opportunistic fund, raising equity in both funds. We maintained high occupancy levels across leasing activity. We've also progressed city shaping developments with Atlassian Central and Waterfront Brisbane. On our ESG track record, Dexus was again recognized as a global leader in the S&P Global Sustainability Yearbook. Real asset investment manager in Australia. We aim to achieve this through providing a superior risk-adjusted returns for investors and managing investments on behalf of our third-party capital investors. Our balance sheet provides resilient cash earnings from a portfolio of efficient, higher growth exposure while maintaining the overall risk profile of the business. Going forward, we don't anticipate a material. Overall, AUM will increase as the funds business grows. Our medium-term target is to expand the proportion of income generated from up from 11% in FY 2022. Balance sheet capital will increasingly be invested alongside diversified over time due to the expanded set of investment opportunities available across the funds management platform. We updated the market in result of completion being delayed, we've renegotiated terms with AMP, and the maximum total consideration payable by Dexus has been reduced to AUD 225 million, which equates to an attractive one. An alternative transaction structure is being agreed to provide timing certainty with the transaction to now occur in March. A further AUD 18 billion to the group portfolio and will underpin our next phase of growth, bringing with it an expanded product offering, new capabilities in infrastructure and for third-party investors. We continue to be globally recognized for our leadership across ESG, reaffirming our status over the half. Our office portfolio's NABERS rating health and safety rating across 45 office properties, giving our customers confidence that their world through a comprehensive training program with our people and suppliers. I'll now pass you on to Keir to cover the financials. Thanks, Darren. Good morning, everyone. Turning to the composition of the result. Our property portfolio delivered AFFO of AUD 300.5 million. Office like-for-like income growth was 3.2%. Industrial like-for-like income growth was 2.4%. Rent collections remained strong at 98.9%. Management operations and trading profits grew significantly, which I'll discuss in more detail shortly. The external independent valuations resulted in a total of AUD 242 million or 1.4% decrease on prior book values for the six months to December 31st, with positive rent growth partially offsetting the impact of cap rates expanding by 16 basis points on average across the portfolio. Turning to the result in detail. Office property FFO reduced due to divestments and non-recurring income on development impacted properties in the prior half, partially offset by contracted rent increases. Industrial property FFO increased due to a full period contribution from Jandakot, recently completed developments and leasing success. FFO from management operations increased significantly, driven predominantly by development-related milestone fees. Net finance costs were up mainly as a result of higher floating rates, partially offset by a lower average debt balance. Net other expenses increased, primarily due to tax expense on the management business. Trading profits of AUD 48.7 million post-tax were secured from the sale of two assets with a further AUD 5 million pre-tax to be realized across FY 2023 and FY 2024. Overall, funds from operations per security was down 1.9% on the prior period. AFFO CapEx reduced due to the timing of project commencements, with AFFO per security growing by 2.8%. Distributions per security were AUD 0.28, in line with the prior corresponding period. While NTA reduced to AUD 12.01, primarily driven by property devaluations. Moving to our capital management. Since FY22, we have secured over AUD 2 billion of new and refinanced facilities of debt. We now have substantial headroom with AUD 3 billion of cash and undrawn debt facilities. At 25.6%, our gearing remains below the 30%-40% target range. Combined with our ongoing approach to strategic asset recycling, this provides capacity management and development. Our percentage of hedged debt averaged 85% in the first half this year. The weighted average maturity of our hedge book is 4.8 years, providing material protection against interest rate movements over the medium term, containing prudent hedging positions through economic cycles. Thank you. I'll now hand over to Deb. Deliver strong performance for our funds. Our responsibility for performance extends beyond the financial, with Dexus global leadership in sustainability aligned to our capital partners ambitions, with DHPF being recognized as a global sector leader by GRESB in 2022 as an example. Current market conditions have led to a pivot in some investors realization of gains in real estate through reducing allocations. In response, we have been able to provide liquidity to those investors whose strategies have required it over the past two years, while growing funds under management by AUD 10 billion over the same time period, dominantly in support of DREP1 and DHPF, as well as executing on development. Having the investor at the center of our business has always been a core focus and understanding in Singapore and developing our on the ground presence in the region, which will enable us to be closer. We have a demonstrated ability to quickly achieve scale in funds. Series of closed-ended funds that leverages our integrated platforms capability and trading track record. DREP1 has now closed with AUD 475 million, taking the funds investment capacity to circa AUD 1 billion. We saw an opportunity to enter into the, and we believe the timing was right. In DHPF, we have built a AUD 1.8 billion high quality healthcare portfolio, 13.4% per annum since inception. Of the equity raised by DHPF during the half in confidence in the fund's strategy. Looking more broadly at investor sentiment, Australia remains an attractive destination, which are considerations for our investors. Investor support for our pooled funds, DHPF, and ongoing new business conversations with capital partners are continuing across all sectors. Thank you, and I'll now pass you to Kevin. Good morning everyone. Office portfolio occupancy continues to outperform the market, remaining consistently above 90% despite some market uncertainty. Stabilized leasing volumes were up compared to this environment. The average weighted lease expiry was steady at 4.6 years. As Keir mentioned, like for like, income growth was above the 10-year average of 2.7%. Incentives have increased to 31.8%, largely as a result of leasing in Brisbane. Incentives are expected to remain elevated in the near term, although our premium assets should perform better, particularly in Sydney, where the portfolio vacancy rate is around 1%. Moving on to our expiry profile. The space we currently have available is concentrated in both Sydney and Melbourne, where we have made progress and are advanced negotiations with a number of tenants. Expiry levels are below our target threshold maximum of 13% per annum over each of the coming four years. Our base presents limited concentration risk with our top customer, Woodside, representing 3.2% of income and our top 10 customers combined representing 16 point. I'll now share our market observations from the first half. There is continued evidence of a flight to quality. For example, Sydney Premium had positive 30,000 square meters net absorption, whilst lower grade buildings recorded negative absorption. Organizations moving into the Sydney CBD from suburban locations and taking circa 20,000 square meters in aggregate. Incentives are likely to remain as the existing supply pipeline completes. Larger inquiries picked up across the market, deals in general are taking longer. Companies are becoming increasingly concerned with negative impacts to organizational productivity and corporate culture because of the force. As labor market pressures subside over the next six to 12 months, we expect many more organizations to move from encouraging staff back to the office days of attendance. The return to the office is becoming more evident in PCA data, where in some cases, physical occupancy is at pre-pandemic level. Visible buzz of activity in the Sydney CBD core. Office demand is expected to benefit in the long term from employment growth. Last year added to the four main CBDs, while net absorption was only 48,000 square meters, about a third of the long-term run rate, 2023 as more normal, normalized office utilization resumes. Thank you. I'll now hand you over to Stewart. Getting to the performance of our industrial portfolio, we leased 154,000 square meters across our stabilized properties, which is well above of 60,000 square meters. Our total leasing volumes were more than 114,000 square meters for the period. Our national customer base, bodes well for future leasing efforts as rising transport costs increasingly favor our well located. Portfolio occupancy reduced slightly to 97.4%, driven mainly by expiries at Access Corporate Park, has since been substantially leased to an existing major Australian customer. Occupancy, excluding business parks, was 99.9%. Gears to 10.9%. Our portfolio delivered a one-year total return of 10.2% to the December 31st. Pleasingly linked to annual CPI increases. Effective like-for-like income growth was 2.4%, driven by contracted rental growth offsuite of our larger facilities. Thanks to strong market rent growth and our leasing efforts, our portfolio is 9.3% under rented and is set to benefit from our continued market rent growth. There is only limited opportunity for rental reversions or stronger like-for-like growth in the very near term due to our lease expiry. Further out, there is the opportunity to grow income by resetting the rents on vacancy and upcoming lease expiries across approximately 20% of the portfolio. Taking a closer look at what's driving demand, industrial take-up remains above long-term averages as businesses invest in extra distribution space to cut. This demand is really broad-based, including medical, supermarkets and retail, transport, and of course, e-commerce chain uncertainty caused by the pandemic. Warehouse demand is being supported by growing inventory levels as firms adopt adjust. Dexus's development capability is supporting our customers' growth requirements across Australia and delivers quality new product to the group portfolio. It's an important legal platform. Thank you. Over to Ross. Thanks, Stewart, and good morning, everyone. It's been another busy period. Improve the balance sheet portfolio quality and provide capacity to fund our growth drivers being the development and funds businesses. As you can see on the slide, at a group level, we were net sellers. For the balance sheet, we announced nearly AUD 800 million of new sales, bringing total divestments over the past two years. To advise for assets continued to be weak during the half. With the exception of some of the alternative real estate sub-sectors, like healthcare. We expect demand for but we do remain cautious on the prospects for secondary assets and markets. During the half million dollars of early-phase concept projects will no longer be pursued. Pleasingly, the remainder of the group's AUD 15 billion pipeline is profitable, with average margins expected in the teens based on current market assumptions. After 6 years of pre-work, we commenced construction of the first stage of the Waterfront Precinct in Brisbane. The project is 45% leased. Waterfront takes the balance sheet's development commitments to circa AUD 3.5 billion, of which AUD 2.5 billion remains to be funded over the next five years. At de-risking and committing our 60 Collins Street in Melbourne and Central Place in Sydney. 5 million square meters of land, of which the balance sheet holds a little under half by a number of funds and JVs. Group development will be marginally lower than we anticipated at the beginning of the year, with 250,000 square meters now expected. This is driven by a few factors, including weather and the decision to better the attention and project returns. Development leasing has also been slower than anticipated during the first half, with Dexus securing just over 60,000 a second half skew and should finish the year above 150,000 square meters of leasing. Keir has already referenced the trading portfolio. We're also seeing some interesting deal flow in the market, which we may participate in through the opportunistic fund DREP or via trading, depending on the circumstance. Back to Darren. Thanks, Ross. To conclude, we have demonstrated resilience in a challenging environment. Benefit from the flight to quality. Recycling assets and proactively managing capital has also enabled us to maintain the strongly and higher interest rates will continue to impact our results for FY 2023. Taking all of this into account and AUD 0.5 Per security for the 12 months ended June 30th, 2023. You may have. Thank you. If you wish to ask a question. If you wish to cancel your request, please press star then two. If you are on a speaker phone, please pick up your handset to ask your question. Hi, Darren and the team. Thanks for your time. Just a quick one on the guidance. It seems you've tied it at the low end. Is that mainly just due to the lower leasing and maintenance CapEx? I know it normalized in the second. Mainly the main driver of that upgrade. Morning, Sholto. It's Keir. CapEx is certainly skewed to the second half. That's pretty consistent with what we've seen. When we originally set guidance, there are a lot of moving parts, including around interest rates, trading profits, and potential asset divestments. We now have increased certainty around each of those items, which has given us the confidence. Floating rates are tracking in line with forecast. We've secured trading profits, with the majority realized this half. We've also made really good progress on asset sales. As Darren mentioned, it's close to AUD 800 million that we've announced so far. AUD 350 million settled in January, which was a bit earlier than we had expected. Outside of those things, our results are tracking slightly better than expected across the business. That makes sense. Thank you for that. Just an update on the bid ask spread. You've still got quite a few assets in the market. What's sort of vendor versus buyer expectations? How far apart are for you guys, so where do you think they land? Yeah, well, look, we've just recently revalued the portfolio, so you'd hope they'd be very close, if not on valuations at this point in time. I think what we saw at the end of last year, there was a lot of uncertainty in the market. There's still a lot of capital out there looking for products. Few weeks of this year, we've had a lot of investors coming in from offshore to review the market and to look at assets. We'll see more capital being deployed this year, hopefully at valuations, and I'd anticipate a lot of that'll happen around the mid to the back half of the year, so let's say Q3. Are you, if you've got an asset you wanna sell, you wouldn't take a 10% discount to the latest book value? We look at all offers that come in. We have more insight than most in the market. We look at the alternative, the returns from the alternative use of that capital at that point in time. Just one for KG. Look, looks like the office leasing went up quite a lot in the period. If you look at it was up quite materially on the half and sequentially. It looks like a lot in the Q2, like 63,000 was done and the deals look like a bit bigger. What was driving that increase in the leasing volumes in office? Sure. A lot of the leasing in the period was forward leasing, so not directly impacting this period, was forward leasing Sholto. We are, the volume was down, I think, on the corresponding half by about five half, was up 20 odd% on the half before, so it was a busy period. But generally inquiry volumes now since the end of the actually. I think it reflects broader business conditions that are still quite solid, quite positive. We're seeing that in general inquiry levels, businesses having onto their workplace, their workspace, and we're seeing it across the board, too. Last year there was probably a little bit of a tick down in some of the larger business market now thinking about future requirements. Small business continues to be active. You know, we remain cautious because the impact of interest rates, you know, we've seen slowing in transaction volumes. Downtime is pushed out a little bit. But at the moment point of view. Yeah, I guess that's why the leasing margins CapEx probably picks up second half for that strong leasing in the first period. Second half on the CapEx. Okay. Can you talk about any redemptions in the cross of portfolio from the gross equity flows of business? Yeah. Hi, Sholto. I'm Deb here. We do have, we talked at sort of high level about the redemptions we've been fulfilling. There certainly has been a quite a large project involving ADPF, the AMP fund that we brought across sort of 18 months ago. That redemption, we're probably 10 days away from, you know, finishing that off and stapling that to DWPF. That has been a very purposeful divestment for that strategy and for those investors. DWPF does have redemptions within its core DWPF investor base at the moment, and we're working through that. Some of that will be facilitated in the next couple of weeks as a result of some divestments that fund has already undertaken, but of certainly a large time period in which to facilitate those, so sort of at least 12, if not 18 months, depending on the fund and its terms and conditions. For ADPF and DWPF redemptions, do you have a number? I think it's probably worthwhile just reiterating that DWPF is an AUD 15 billion fund, so the redemption number eligible, it's not excessive. I don't... it's, you know, a matter for that fund, but just remembering it's an AUD 15 billion fund. And, uh- That is DWPF, is the AUD 15 billion fund. Obviously, we don't disclose third party capital. Yeah. That is- AMP one, sorry. The AMP fund was circa AUD 3.5 billion when we acquired it. There was publicly noted redemptions in that fund and that will be clearer once that fund's stapled what its end value is. Okay. Just finally on the in that you got in industrial and office, what they were on the passing rent. Yeah, in industrial. Sorry, Sholto, it's Stewart here. It's industrial around 17% and on expires around 14%. Sholto, in, overall in office, we were negative 19.1%. Sydney was negative 10%, Melbourne negative 11%. Melbourne pleasingly sort of moved from the last period, negative 15% to negative 11%. A little bit skewed because we had some first generation leasing from developments rolling off at both Alluvion and the original incentives in those developments don't wash through in the amort through the cash flow. You have this impact of leasing off a clean cash flow. That's why the number looks large. The negative spreads, what were they again? Sydney negative 10 and Melbourne negative 11. What were they? Yeah. The first in Brisbane ones, what were they negative how much? about negative 40. On that number? Correct. Okay, that's it for me. Thanks, everyone, for your time this morning. Stuart McLean at Macquarie. Please go ahead. Good morning. Thanks for your time. First question was just at a high level. Just regarding the slight shift in that Australia's leading real estate company to recognize Australia's leading real asset investment manager. I was just wondering what does that mean in terms of proportion of balance sheet assets, proportion of Should we expect a reduction of real estate as a result and maybe holding some more of these infrastructure type assets on balance sheet? Or is it mainly by co-investments in real asset funds is how to think about it? There may be periods from time to time where we do warehouse really good assets on the balance sheet and then sell them down later on. When the deal was originally penned, provided some guidance on earnings, saying that they brought in a bit more time to, look at where the fund's going to land, et cetera. I just wondering if you could provide a bit more of an update in regards to the earnings impact coming through from that AUD 18 billion of fund coming on board. Yeah. Look, obviously there's been delays now. Assume broadly neutral to this year, no impact. There'll be some accretion coming through in 2024. Because of the delay, there'll also be some more upside coming through in 2025 now. It's purely because of timing. Okay. You have to say that bridge from 10% to 20% of more active earnings in the funds management book, how far does AMP get you there from that 10% to 20%? Does it get you halfway there, do you think? Does it get you the majority of the way there? No, look, we won't. We'll give more detail on that at the full year. Okay, great. Thank you. Just another one just regarding maybe a question for Keir, just around the convertible that was that occurred in the first half and just around the reasons for the needing to go to the convertible with conditions that have been through struck in the capacity? Look, exchangeable notes have been a part of our capital management strategy for a number of years. If you look at the environment last year, there was only one reissuance in the domestic MTN market last year. We're seeing elevated credit spreads in offshore debt capital markets. What the exchangeable does provide is diversification of our funding sources. It provides five-year fixed rate debt of its maturity in 2027. With the benefit of that, we're now sitting with a very strong balance sheet to support the business. Our gearing's 25 point target range. We've got a lot of headroom, and we're 85% hedged, with a term of close to five years now. As it maybe starts to mature, so more than just the 3.5% coupon, how does that necessarily, maybe compare to the, what you're seeing in offshore markets? I'd say there's meaningful cost savings versus what we're seeing in alternate sources of debt available at the moment. I think in terms of what it looks like going forward, really, it's gonna be a factor of conversion, and naturally, we'll give you more of an update as we get closer to that date. Yeah. Stewart, I think it's, if you go back in time, there's been a lot of uncertainty this year. There was focus on is making sure there was never gonna be a massive dilutive equity raising from Dexus. That's something we do not wanna see on the watch of this management team. You've rest assured we're very focused on the balance sheet. It's part of our normal funding package, and we think it was a sensible move at the time, and we still do today. Okay. Thank you for that added color. Just a final one from me, just on some of the developments. Just looking at maybe 60 Collins Street as an example. Seems like you're being maybe a little bit more cautious there or at least messaging to the market, saying that you look at the commerce and capital funding. What do you want to see to kick off 60 Collins Street, for example? What sort of de-risking needs to occur there to make that comfortable for yourselves? Hi, Stuart. Ross. Ideally, we'd like a tenant that would help really to validate the product there. I don't think we're looking for a significant pre-let, but we are looking to push the envelope in terms of the product we wanna bring to market and the price point for that. I think getting some validation of that product from a high-quality tenant and seeing some momentum behind that initial tenant would be sort of key. We are very focused around how we bring capital partners into either that project or other projects in the book, very mindful of, you know, the significant funding commitments we've already made in the development book. We've got AUD 2.5 billion to fund over the next five years. We have certainly capacity within our means to do that. You know, as we look at these incremental projects, we do need to solve for funding, and that's part and parcel of what we're working through. Great. Thank you very much. Thank you. In the interest of allowing all participants to ask a question, if we could limit questions to two per person. If you do have more questions, you are able to rejoin the queue. Thank you so much. Your next question comes from Simon Chan at Morgan Stanley. Please go ahead. Hi. Good morning, everyone. I've got a question on funds management. Just wondering, what's the outlook on actual capital deployment? You know, if I use DREP1 as an example, that's AUD 1 billion now, and you've spent very little. For vendors, price expectations to come down before you invest in some of those more opportunistic assets. Like, yeah, what's your thoughts on that deployment? Yeah. That's been a really interesting insight into the market for us. There were three or four interesting deals a month. I think the last month we looked at over 60 transactions. If you think about that fund, it deals with the asset classes. Deal flow is increasing, and that will be probably deployed over the course of this year, probably more towards the middle of the year. There's a couple of interesting transactions we're looking, you know, right now in funding. And there's some just interesting industrial real estate plays in there as well. Great. My second question, Darren, if I go back to last, looking to sell down 35% of Atlassian, I think there was some non-binding HOA done there. You still have 100% now. Is that deal still a work in progress, or has there been a change in strategy? Yeah. I think if you think about that asset, we think it's gonna be one of the best assets in Sydney when it's finally completed. The construction's going very well. Markets and to be, you know, very upfront, we just couldn't agree the right pricing with the capital partners. There are a couple in the room. What we've decided to do is just to make further progress with the development. It's in a position to sell down. At some stage in the coming years, we'll look to sell down a proportion of that property. Perfect. Thanks, guys. Cheers. Thanks, Darren. Thank you. Your next question comes from Richard Jones at JP Morgan. Please go ahead. Good morning, Darren. Just in relation to the alternate capital structure on Collimate, by the alternative transaction structure? It's quite a complex structure involved in the actual makeup of the business. Remember, it was put together over sort of 30, 40 years, so there's a bit of stuff that we are working through. It is a very complex situation, and as we, as we disclose, the price has been revisited as well. Some press suggesting that investors had elected to stay with the existing manager. Can you just confirm that? Management of that fund is still with AMP Capital and will be. I believe very publicly, GPT have withdrawn their interest in that fund. We are in you know, constant engagement with the investors of that fund as we work through its current liquidity window with the fund team over at AMP. Just make it third question, if I may. Can you give us there an example of a high conviction opportunity that you would be happy to warehouse? What type of opportunities are you looking at there? Oh, let's say a proportion of Melbourne Airport came up, that is something potentially that we could warehouse and then sell down to some of our- Okay. Thank you. Thank you. Your next question comes from James Druce at CLSA. Please go ahead. Some of the development yields, I mean, the range for Atlassian is 4%-5%. That's a very wide range,%. Do you expect to be hitting the upper end or the midpoint of those ranges, or where do things sit today? Well, I don't think they're particularly wide ranges based on how we've reported in the past. These are long dated projects. I think Atlassian finishes 2026, Waterfronts 2028. Example, there's actually, there's good momentum in that market. Where we, where we land, those final rents may actually have a pretty big impact on the upside. Variance there, and, you know, I think we do like to, I wouldn't say surprise on the side, on the upside, but we would like to be at the top end of those ranges. There's a lot of time to pass and a few moving pieces still. We leave it at that. Okay. Maybe one for Kevin George. Just the CapEx that you've leased ahead, the 60,000 square meters that you spoke about. When do the incentives hit for that? Most will hit in FY 2024, some in 2025, James. Perfect. Thank you. Thank you. Your next question comes from Ben Brayshaw at Barrenjoey. Please go ahead. Yes. Hi, good morning. Could you discuss what you're seeing in relation to office markets and take up? Perhaps a question for yourself, Kevin, as well, just around what tenant types you're seeing the strongest demand from, and what are you seeing in relation to tenants in terms of how they're responding to low levels of utilization? Sure. Look, the interest in the market has been fairly diverse, widespread, from government in some segment or sectors to professional services, some parts of financial services. I think the weak elements of the market might be some of the tech players. Interestingly, in the U.S., it's an interesting proxy for what's going on here, but since COVID, about 870,000 odd jobs were created in the tech sector, which is about 6% of their white collar workforce. All the layoffs they've announced recently amount to about 9% of those new jobs that were put on since COVID. Not quite similar things happening here, but similar proportion, I think. But yeah, across the board. Demand from wide and various sectors. I think in the city, I mentioned in my remarks that we're seeing a lot of companies coming into the CBD in Sydney, particularly Melbourne, the fringe markets as well. Some of the outlier-lying suburban markets are losing companies to that are coming closer into the city or into the city. I think that's a feature of the flight to quality you'd normally see in this part of the cycle. As it relates to more broadly workplace issues, I mentioned in my remarks that, you know, companies are increasingly becoming frustrated with what they see as detrimental productivity outcomes, dilution of their cultures, and are very keen to get their people back to work. I think the labor market pressures that are coming off, companies are moving as fast as they can, the HR teams are willing to let them to push this, and more and more are mandating minimum days back. I think you're gonna see utilization rates significantly increase over the course of the year. I think play out in terms of what hybrid working means for many organizations. I think you're seeing a real shift now, to much more of a normalized return to office utilization. Yeah, that's great, Kevin. I was wondering if you could expand on in which markets you're seeing face rental growth come through, and are there any instances where that is also translating into a reduction in incentives? Look, with face rent growth has been a feature of all markets pretty much, since COVID. Well, I think the equalizer, if you like, the market adjustment has been through incentives. Face rents continue to grow. I think Sydney particularly, we saw incentives at the premium end come back from, in our book, 31% at FY. The top end of the market in Sydney, there's certainly signs of life and improvement as it's getting tighter. The new supply over the next five years, I think averages low. I think the top end of the market in Sydney looks pretty good for the next few years. I think some of the rest of the market will have its challenges, demand through that period. Could you offer any comments on face rental growth? Face rent growth across all has been a feature of all markets, I think Melbourne, no different. That will continue to grow. I think the leasing spreads in Melbourne came in six months too from, as I said before, negative 15% to -negative 11%. Incentives again at the top end of the market there are. Okay, thanks, Kevin. I just would add to, just in terms of face rents, there is still life in the development pipeline of ours. With increased costs, with potentially softer cap rates, the economics of new development is meaning that rents required, those rents obviously will translate into the broader market for existing assets. That's obviously having a positive impact on our existing portfolio. Thank you. Your next question comes from Tom Bodor at UBS. Please go ahead. Morning to Dan and the team. I was just interested in your comments around growing the fund business to sort of circa 20% of the active business, and just what the capital implications are from what you need to co-invest and whether that could have implications for the payout ratio over time. Look, I think we'll give further color as the year progresses, but I think don't expect that we always have to put co-investment into funds. DWPF, our largest fund, we've been running it for 30 years, AUD 15 billion, as Deb mentioned earlier. We have no co-investment in that fund. Okay, sure. Is that another way of saying you think the payout ratio can remain where it is as you grow that- At this stage, yeah, our payout ratio is in line with free cash flow. That's what we pay out. If there's any change to that, we'll update the market. On the Collimate Capital business, sort of putting financial metrics aside, can you just comment on, under management have, has changed a bit since you sort of initiated the transaction? I think it was initially around 600 people. How many people do you expect to integrate into the Dexus platform? Happened since we first announced. Remember when we first announced it was about $28 billion. The $18 billion we're bringing across now, there's circa 450 odd people that will be coming across daily basis, you know, with those, with those people. There's a lot of two-way flow between the two organizations, and we're super excited about bringing them on board and over time. You know, it's a challenging time in funds as we've spoken about today and you're seeing across the whole market. We are super excited about what the bringing together of those two, as we said before, into hopefully Australia's leading real asset manager. We have a lot of great, different avenue, and we're seeing, you know, from the insights we're getting now, we are super pumped about it. Thanks very much. From Lou Pirenc at Jarden. Please go ahead. Oh, hi guys. Thanks for your time. Just mentioned before in terms of physical, current physical occupancy or utilization is across your portfolio and how did that differ by stack? The latest industry stats to come out. In our portfolio, and we're sort of tracking broadly in line with the PCA data, it's ticking up around on average 50% to 60%, 65%, and I think probably skewed more to the...t he premium, and better A grade buildings in the portfolio, they, in pushing those pre-pandemic levels of, you know, 80%-90% physical occupancy through the week. Assets and suburban assets, and all government assets in Melbourne, particularly, premier there seems to be very relaxed about when the public service come back, they're much lower. Thank you. Just one other. Just in terms of the guidance, just wondering, I mean, you sold AUD 800 more across the first half. You got how much the guidance is huge in terms of capital recycling for the full year? Hi there. When we re-issued guide investments, and we still anticipate we'll realize something in that order. I expect settlement, though, for those ones will probably be toward the back end of the year. At the moment, you're expecting to be FY 2024 outcomes? Generally, I think either late FY. Got it. Thanks. Thank you. Your next question comes from Alex Prineas at Morningstar. Just on the, you know, noting the sort of improving NABERS ratings and ESG ratings and so forth across the portfolio, what would it take to portfolio up to sort of 5.5, 6 star NABERS energy ratings? Is it? Can that be done? Has to be done by a knockdown and rebuild? Well, knocking down rebuilding isn't very sustainable in the overall context. Look, we'll come back. There's not one size fits all. Kevin. I think there's a number of assets that are in the portfolio that are in market economic sense to plow investment into those to get the NABERS up for a year or two before they're redeveloped. But yeah, our portfolio is. I think the stabilized portfolio where we have made an investment over more than a decade, approaching two decade investment because the portfolio is very well-placed. You know, I think we're not gonna spend aborted money on assets that are gonna be leveled in the next year. product like what we've done down at Ravenhall, some of that 6 star and obviously skewing things upwards as we, you know, recent industrial portfolio is going. Okay, thanks for that. Just on the slide 18 on the percent of tenants that renewed, expanded the space, and only 2% of renewals were contractions. I was wondering if, you know, if you looked at tenants that sort of exited the Dexus portfolio, is there any reason to think those stats would look significantly different? Of the tenants that moved into the portfolio, 53% of the new. 3% of those were taking more space. Okay. Some market shows there is, you know, there is a significant skew to the upside in terms of the rents that customers are paying upon renewal and, you know, I think on average rent, customers is a small tail that is downsizing and paying less rent, very cost conscious, but the skew is definitely on the upside. Thank you. That concludes our question and answer session. I'd now like to hand the call back for closing remarks. Thank you. Thanks everyone for joining us to the coming weeks. Have a good day.