Dexus takes $600m net loss, cuts dividend
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The news: Real estate group Dexus reported a net loss and declared a reduced dividend for the first half of the financial year.
The numbers: Dexus recorded a statutory net loss after tax of $597.2 million, compared to a statutory net profit after tax of $23.1 million in the previous corresponding period.
Adjusted funds from operations were down 5.9% to $292.4 million compared to a year prior. Dexus declared a distribution of 26.7 cents per unit, a decrease of 4.6% on last year.
For the 12 months to 30 June 2024, Dexus expects distributions of around 48 cents per security, barring unforeseen circumstances.
On the funds management side, Dexus manages $41.3 billion. During the half, it completed $1.3 billion of fund divestments and $0.2 billion of fund acquisitions.
The context: The property investor said the downturn was primarily driven by greater fair valuation losses on investment property compared to 1H23, owing to capitalisation rate softening in the six-month period.
Dexus CEO Darren Steinberg, who is retiring next month, also highlighted the company now had a "$57.1 billion scalable real asset platform" after completing the acquisition of AMP Capital in November 2023. He said the real estate and domestic infrastructure equity business would be fully integrated by the end of June.
What they said: "Markets remain challenging as capital flows and sentiment continue to be impacted by inflation, interest rates and geopolitical risks," Steinberg said.
The source: ASX announcement
