Dexus reaffirms guidance after steady March quarter
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The news: Property investor Dexus has reaffirmed its full-year distribution guidance, with its funds management and property businesses staying resilient in the March quarter.
The numbers: The company said its Wholesale Shopping Centre Funds continued to generate strong returns, outperforming its benchmark by 195 basis points over the nine months to 31 March 2024.
For the quarter, it had occupancy of 94.4% in its office property portfolio and 96.6% in its industrial portfolio, while rent collections were at 99.5%.
Dexus shares were up 1.14% to $7.12 in early trading on the ASX and over the last 12 months have fallen 11.49%.
The context: New CEO Ross Du Vernet said while conditions remained challenging, Dexus’ investment portfolio continued to deliver resilient income streams and had a strong balance sheet. He reiterated that the group remained on track to deliver distribution of about 48 cents a security for FY24 while adjusted funds from operations excluding trading profits would be broadly in line with last year’s figure.
The property fund manager has faced a challenging period amid a rapid increase in interest rates that has lifted Dexus’ cost of debt and had a material impact on portfolio valuations.
The source: ASX announcement
