Join our daily newsletter At The Bell to receive exclusive market insights
- Dexus (DXS) raises its net profit by 17 per cent to $1.3 billion, owing to growth in its funds management platform as a result of acquisitions and mergers
- Dexus had a busy year in terms of transactions, with a total of $6.4 billion in property acquisitions and divestitures
- For the 12 months ending June 30, 2021, the external independent valuations resulted in a total rise of $584 million
- Dexus has about $350 million in committed development initiatives until the end of FY23, including its direct 50 per cent stake in the Australian Bragg Centre
- Shares in Dexus are down 0.89 per cent to trade $10.61
Dexus (DXS) has increased net profit by 17 per cent to $1.3 billion, bolstered by a rise in its funds management platform through a series of acquisitions and mergers.
Major moves in the financial year include a new office joint venture, obtaining approval for the $5.6 billion AMP Capital Diversified Property Fund (ADPF) to consolidate with Dexus Wholesale Property Fund (DWPF), and entering a proposal to buy APN Property Group (APN).
Dexus had a busy year in terms of transactions, with $6.4 billion in property purchases and divestitures across the board.
For the 12 months ending June 30, 2021, the external independent valuations resulted in a total rise of $584 million, or about 3.5 percent, over prior book values, with a higher uplift obtained in the second part of the year.
The 56 cent, or 5.1 per cent, rise in net tangible asset (NTA) backing per security to $11.42 at the end of the year was largely due to revaluation gains.
Underlying funds from operations (excluding trading gains) of $666.6 million were down 4.1 per cent year over year, owing to divestments and the ongoing impact of COVID-19 throughout the property portfolio and management business, somewhat offset by revenue from newly completed developments.
Despite the reduction adjusted funds from operations of $561.7 million was two per cent higher than the prior year, driven by trading profits of $50.4 million (net of tax) which were $15.1 million higher than the prior year.
The Dexus office and industrial portfolio had strong rent collections, with 98.1 per cent in FY21 and 97.6 per cent for July 2021.
Dexus leased 184,029 square metres of office space in 339 transactions during the year, as well as 11,068 square metres in office projects, securing future revenue streams.
During the year, the company leased 445,428 square metres of industrial space across 116 transactions.
The total cost of Dexus’ group development pipeline is currently $14.6 billion, including $8.1 billion in the Dexus portfolio and $6.5 billion in third-party funding. In addition, recent platform initiatives have found $1.6 billion in additional potential throughout the company.
Dexus has about $350 million in committed development initiatives until the end of FY23, including its direct 50 per cent stake in the Australian Bragg Centre.
Dexus forecasts a dividend per security increase of not less than two per cent for the 12 months ending June 30 2022, based on current expectations pertaining to COVID-19 effects and barring unexpected events.
Dexus CEO Darren Steinberg said momentum in CBDs has been interrupted due to the recent lockdowns, but he expects activity to return to previous levels once restrictions ease.
“We have confidence in the future of cities and our ability to deliver sustained value for all our stakeholders over the long term,” he said.
Shares in Dexus were down 0.89 per cent to $10.61 as of 12:59 pm AEST.
