17 Aug 2021

2021 Annual Results Release

17 August 2021

2021 Annual results – Delivering in a complex operating environment

Dexus today announced that it had achieved Adjusted Funds From Operations (AFFO)1 and a distribution of 51.8 cents per security for FY21, up 3% on the prior year.

Highlights

  • Net profit after tax of $1,138.4 million, up 17%
  • AFFO and distribution of 51.8 cents per security, up 3% on the prior year
  • Return on Contributed Equity (ROCE)2 of 8.3%
  • Grew funds management business FUM to $25.0 billion3 through establishing a new office joint venture, securing approval for the merger of the circa $5.6 billion AMP Capital Diversified Property Fund (ADPF) with Dexus Wholesale Property Fund (DWPF) and entering into a proposal to acquire APN Property Group (APN)
  • Continued leadership in environmental, social and governance performance with Dexus retaining its number one position for the global real estate industry on the Dow Jones Sustainability Index, and maintaining a leading position in GRESB and on the CDP Climate A list
  • Achieved an employee Net Promoter Score of +43 and customer Net Promoter Score4 of +46
  • Rent collections for the Dexus portfolio were strong at 98.1% for FY21 and at 97.6% for the month of July 2021
  • Achieved high occupancy5 of 95.2% for the Dexus office portfolio and 97.7% for the Dexus industrial portfolio through strong leasing
  • Progressed planning for city-shaping projects in the group’s $14.6 billion development pipeline
  • Completed $881 million of developments across the group including over $450 million of industrial developments, increasing the total group industrial portfolio to 2.6 million square metres
  • Gearing (look-through)6 remains conservative at 26.7%
  • $1.1 billion of cash and undrawn debt facilities
  • Post 30 June 2021, Dexus obtained approval to acquire APN adding $2.9 billion of FUM to the platform, acquired a 49% interest in Capital Square Tower 1 in Perth and entered into an agreement to fund, develop and invest in Atlassian’s headquarters within the NSW State Government-led Tech Central precinct

Dexus Chief Executive Officer, Darren Steinberg said: “In a challenging operating environment, we maintained our focus on maximising property portfolio income and performance, while also supporting our small business customers impacted by the lockdowns and growing and diversifying the funds management business. 

“We implemented major strategic initiatives, which strengthened the funds management business and positioned it for growth including securing approval for the merger of AMP Capital Diversified Property Fund with Dexus Wholesale Property Fund, simplifying the Dexus corporate structure, and entering into a proposal to acquire APN Property Group. We also took the opportunity to selectively recycle assets and make investments to support growth which involved $6.4 billion of healthcare, industrial and office transactions9 across the group.

“Resilient independent asset valuations contributed to an increase in net tangible asset backing per security, reinforcing the quality of our property portfolio while increasing our confidence to allocate capital towards new investment opportunities that offered strong growth prospects.”

Download the PDF to read the full announcement.

 

 

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