Dexus' work-from-home woes
The nation's largest office landlord was forced into a billion dollar write down in its property portfolio - and the WFH revolution is to blame.
Dexus chief executive Darren Steinberg has opened the door to more asset sales after the nation's largest office landlord was hit by a billion-dollar write down that pushed it deeply into the red for the recently ended financial year.
But Steinberg says Dexus is a not a forced seller and won't let go of properties for knockdown prices. “If it makes sense to trade then we will sell at reasonable prices to take advantage of all of the opportunities out there. We are not setting a divestment target,” he told analysts at the company’s earnings briefing. “We’ve got irons in the fire but we’re not forced sellers.”
Massive write downs in its $12.3 billion office portfolio pushed Dexus Property Group to a $752.7 million loss for the 2023 financial year, some 140% lower than its net profit in the prior period.
Higher interest rates and weaker leasing conditions in the struggling office market, where workers are slow to return after COVID-19, prompted the billion-dollar impairment, stripping 8.8% off the portfolio’s value.
