March 2024 quarter update

7 May 2024

March 2024 quarter update – Demonstrating platform resilience across the investment portfolio and the funds business

Ross Du Vernet, Dexus Group Chief Executive Officer & Managing Director said: “Our vision is to be Australasia’s leading real asset manager, and we remain focused on our strategic objectives of generating resilient income streams and being identified as an investment manager of choice.

“As incoming CEO, my immediate priorities are driving investment performance in the next phase of the investment cycle through refined investment strategies and deep sector expertise, as well as evolving our approach to capital allocation and risk management. We believe these areas will set up the group to scale efficiently and achieve leadership through investment performance.”

Key highlights

• Property portfolio continues to demonstrate resilience, maintaining high occupancy across the Dexus office portfolio of 94.4% and Dexus industrial portfolio of 96.6%
• Rent collections remain strong at 99.5%
• Dexus Real Estate Partnership 2 (DREP2), which launched late last year, raised more than $300 million in commitments towards its first close
• Secured circa $0.4 billion of transactions across the platform, the majority of which were divestments on behalf of a number of funds
• Continued to drive fund performance through active management across our real asset platform, delivering outperformance in Dexus Wholesale Shopping Centre Fund and Dexus Diversified Infrastructure Trust
• Restocking the trading pipeline

Outlook

Ross Du Vernet said: “While conditions remain challenging, our investment portfolio continues to deliver resilient income streams and we have a strong balance sheet supported by a disciplined approach to capital management. With the integration of the AMP Capital platform now complete, we have turned our focus to the immediate two priorities which will set us up for growth in the next phase of the investment cycle.

“Barring unforeseen circumstances, for the 12 months ended 30 June 2024¹ Dexus reiterates its expectation for distributions of circa 48.0 cents per security. AFFO excluding trading profits is expected to be broadly in line with that delivered in FY23.”

Download the PDF to read the full release.