March 2021 quarter update

4 May 2021

March 2021 quarter update – Initiatives progressed to expand Funds Management business

Dexus today announced an update for the quarter ended 31 March 2021.

In Australia, the March 2021 quarter saw the commencement of the COVID-19 vaccine roll out and an increase in physical occupancy across CBD office locations. Positive economic indicators point to a continued economic recovery, reflected in growing employment numbers, increasing house prices and a rebound in business and consumer confidence.

Darren Steinberg, Dexus CEO said: “We have maintained our focus on maximising property portfolio income and performance while delivering on our strategic initiatives. We maintained high rent collections of 96% for the March quarter, undertook further asset recycling and progressed initiatives in our funds management business including establishing a new office joint venture.

“It is pleasing to see momentum in leasing activity across our CBD office markets. Tenant enquiry and activity across our office portfolio has been strong particularly for smaller tenancies, and larger occupier briefs are starting to emerge. The significant number of leasing transactions completed during the quarter is encouraging and highlights the demand for quality workspace in well-located CBD assets.

“The resilience in values for quality assets has also provided us with the confidence to investigate opportunities to allocate capital, using our balance sheet to enhance prospects for driving growth. We are seeing opportunities across the various asset classes of industrial, healthcare and office.”

Highlights

• Progressed several initiatives to expand and diversify the funds management business including establishing a new office joint venture, securing approval for the merger of the circa $5.4 billion AMP Capital Diversified Property Fund with Dexus Wholesale Property Fund and obtaining approval of the proposal to simplify the Dexus corporate structure
• Raised $125 million of new equity for Dexus Healthcare Property Fund
• Completed 108 leasing transactions1 across 46,703 square metres in the Dexus office portfolio, achieving occupancy of 95.4%
• Leased 117,747 square metres of industrial space across 37 transactions in the Dexus industrial portfolio, increasing occupancy to 97.8%
• Completed the development of the North Shore Health Hub, St Leonards
• Submitted the Development Application for Central Place Sydney

Download the full announcement to read more.