Sale of six properties with combined proceeds of $483 million, FY23 trading profit de-risked

Sale of six properties with combined proceeds of $483 million, FY23 trading profit de-risked

Dexus announces the sale of six properties with combined proceeds of $483 million¹.

Two of the six properties are trading properties with combined sale proceeds of $145.6 million¹, which are expected to contribute approximately $24 million in aggregate pre-tax trading profits across FY23 and FY24. The trading properties are:

• Dexus’s 50% stake in Australian Bragg Centre, Adelaide which was sold to Dexus Healthcare Property Fund (DHPF), realising net proceeds of $102.5 million and is expected to contribute approximately $19 million pre-tax trading profits in FY23
• 20 Distribution Drive, Laverton, which was sold for $43.1 million¹ on a fund through basis and is expected to contribute approximately $5 million in aggregate pre-tax trading profits to be recognised across FY23 and FY24

Together with the sale of 12 Frederick Street, St Leonards which was announced to ASX on 10 November 2022, Dexus has now secured approximately $69 million pre-tax trading profits to be recognised in FY23, plus approximately $5 million pre-tax trading profits to be recognised across FY23 and FY24.

In addition, Dexus has settled on the sale of two additional properties, reflecting an average 2.5% discount to book value at 30 June 2022:

• 47 Acanthus Street, Darra for $15.9 million¹, which settled on 4 November 2022
• 19 Stoddart Road, Prospect for $76.2 million¹, which settled on 16 December 2022

Dexus has exchanged contracts to sell the remaining two properties for combined sale proceeds of $245.6 million¹, reflecting an average 12.5% discount to book value at 30 June 2022. These properties are:

• 8 Nicholson Street, Melbourne for $213.7 million¹, with settlement expected in July 2023
• 112 Cullen Avenue, Eagle Farm for $31.9 million¹, with settlement expected in January 2023

The sales of 20 Distribution Drive, 8 Nicholson Street and 112 Cullen Avenue are subject to FIRB approval. The sale of 20 Distribution Drive is subject to subdivision.

Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus Funds Management Limited

Footnotes:

1. Reflects net sale price and excludes transaction costs.