09 Feb 2021

HY21 Results release

9 February 2021

2021 Half year results – Focus on growth in capital efficient funds management business

Dexus today announced its results for the half year ended 31 December 2020, confirming a distribution of 28.8 cents per security.

Highlights

  • Stable, independent asset valuations supported by the continued investment demand for quality assets enabled a Net profit after tax of $442.9 million. Although a strong result, this was down 55.5% primarily due to net revaluation gains being lower than those recognised in the previous corresponding period
  • Adjusted Funds from Operations (AFFO) and Distribution of 28.8 cents per security, up 7.1% and 6.7% respectively on the previous corresponding period, primarily driven by trading profits
  • Rent collections were at 96.0% for the Dexus portfolio in the six months to 31 December 2020
  • Gearing (look-through)1 remains conservative at 24.9%
  • $1.7 billion of cash and undrawn debt facilities
  • Continued leadership in environmental, social and governance performance through Dexus retaining its number 1 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
  • All funds performing with Dexus Wholesale Property Fund (DWPF) continuing to outperform its benchmark across all time periods and Healthcare Wholesale Property Fund (HWPF) achieving an exceptional one-year return of 15.3%
  • Launched the marketing of unlisted opportunity fund, Dexus Real Estate Partnership 1 (DREP1)
  • Raised circa $287 million of equity for existing unlisted funds
  • High occupancy2 of 96.0% for the Dexus office portfolio and 95.5% for the Dexus industrial portfolio
  • Achieved 140 basis points of outperformance in the Dexus office portfolio relative to the relevant MSCI/PCA benchmark3 over the year to 30 September 2020, driven by the quality of the portfolio
  • Completed $248 million of developments
  • Progressed planning for city-shaping projects in the group’s $11.4 billion development pipeline
  • Realised $47.1 million of trading profits (post tax) in HY21 while contracting future trading profits

The COVID-19 pandemic continues to cloud the outlook for the operating environment as a number of clusters emerged across Australia over the holiday period. Globally however, Australia has performed very well in suppressing the transmission of the virus through various restrictions, supporting the return to a sense of normality across the general population. The imminent roll out of the vaccine, as well as the impact of both fiscal stimulus and historically low interest rates, are supporting economic activity, with both business and consumer confidence returning to pre-COVID levels.

Dexus Chief Executive Officer, Darren Steinberg said: “Despite the widespread impact of the pandemic, the first half of FY21 has been characterised by increased leasing activity, relatively strong rent collections, initiatives to grow our funds management business and the selective recycling of assets. Our high quality portfolio, the strength of investment demand for quality assets, and our platform capabilities will enable us to drive performance in this next stage of the real estate cycle.”

 

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