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Dexus Convenience Retail REIT DPS Up 5.5%

August 8, 2022 – Dexus Convenience Retail REIT (DXC) announced its results for the full year ended June 2022, confirming a distribution of 23.1 cents per security.

Highlights

Statutory net profit of $82.6 million, up 11.9% on the prior year, primarily driven by higher rental income from acquisitions and fair value gains on interest rate derivatives

Funds from Operations (FFO) up $5.6 million, or 21.5%, to $31.5 million, supported by 2.3% like-for-like net operating income growth and the impact of acquisitions

Distribution per security of 23.1 cents, up 5.5%, representing an FFO payout ratio of 100%

Strengthened capital position through extending weighted average debt facility maturity to 4.2 years with58% of debt hedged across FY22

15 acquisitions totaling $168 million delivering enhanced portfolio quality with a long weighted averagelease expiry of 10.3 years and average annual rent reviews of 3.3%1

Four divestments totaling $13 million reflecting an average premium to book of 3.8%2, supporting capitalrecycling initiatives and reinforcing the high-quality nature of the underlying portfolio

Net Tangible Asset (NTA) of $4.03 up 9.6%, primarily driven by $30.8 million of property valuation gainswith rental growth accounting for 47% of valuation gains

Purchased 1.4 million securities as part of the on-market securities buyback program

Jason Weate, DXC Fund Manager said: “We delivered a solid financial result for the year in line with our upgraded guidance, demonstrating the resilience of the portfolio which provides income certainty backed by some of the highest-quality tenant covenants in the market. We promptly responded to changes in the economic environment by launching an on-market securities buyback program, pursuing asset sales and strengthening our capital position to support Security holder value over the long term.”

“Today’s results demonstrate that we continue to deliver on our strategy of providing investors with a defensive income stream, further supported by our disciplined approach to capital allocation.”

Read more here..

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