Dexus reiterates FY guidance on improved sector outlook
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The news: Dexus reiterated its full-year guidance after the property investor's occupancy income edged down in the September quarter.
The numbers: Dexus reaffirmed its expectation of full-year adjusted funds from operations of between 44.5 cents and 45.5 cents per share and distributions of around 37 cents per share.
During the September quarter, occupancy income at Dexus' office portfolio was 93.5%, down from 94.8% in the previous quarter. Occupancy rates at its industrial portfolio lowered from 96.6% to 96.2%.
The context: Dexus said the reduction in office occupancy income was due to an anticipated expiry at its Melbourne CBD asset 80 Collins Street. However, the company flagged that its portfolio occupancy remains "well above" the wider market average of 86.4%.
Dexus noted that its industrial portfolio occupancy income was weighed down by two Sydney expiries, but said the industrial sector "remains resilient" with take-up rates in key markets "holding up well" and vacancy rates rising slowly.
What they said: "There are now clear signs that real asset transaction markets are strengthening," said Dexus CEO Ross Du Vernet.
"Deal flow in both real estate and infrastructure markets is up significantly compared to this time last year as investors respond to an apparently peaking of the global interest rate cycle," he said.
"These trends should support improved liquidity and greater asset value discovery in the year ahead."
The source: ASX announcement
