Dexus upgrades earnings guidance as offices hold up
Office and funds powerhouse Dexus has upgraded its earnings on the back of the stronger than expected performance of its portfolio.
Office and funds powerhouse Dexus has upgraded its earnings on the back of the stronger than expected performance of its portfolio.
The group’s office buildings are holding up in the face of the coronavirus pandemic and its logistics operations are surging, with the company also now pushing more into funds management.
Dexus lifted its guidance for this financial year to deliver distribution per security growth of about 3 per cent, above its previous guidance for a flat full-year distribution per security on last year.
“Today’s upgrade is a result of better-than-expected outcomes across the underlying property portfolio, as well as delayed settlements for asset sales and other initiatives across the business,” Dexus chief executive Darren Steinberg said.
Dexus has also been undertaking corporate plays including its proposed takeover of the APN Property Group, which manages $3bn in listed and unlisted funds.
The company also picked up the management of a $5.4bn AMP Capital-managed fund, by merging it with its own wholesale diversified property fund.
Initiatives in healthcare property have helped to diversify the Dexus portfolio away from the office market.
Dexus has grown to manage a property portfolio valued at $36.5bn that spans a directly-owned portfolio of $15.5bn of office, industrial and healthcare properties. It manages a further $21bn of office, retail, industrial and healthcare properties for third party clients.
The group is also pushing the value of its $11.5bn development pipeline which has remained intact despite the crisis.
Dexus shares closed up 5c, or 0.5 per cent, at $10.43.
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