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Dexus FY2020 Net Profit Down 23%

Dexus FY2020 Net Profit Down 23%

August 20, 2020 — Dexus’s net profit after tax was $983.0 million, down 23.3% on the prior year. This movement was primarily driven by net revaluation gains of investment properties of $612.4 million, which were $160.7 million lower than FY19. These revaluation gains primarily drove the 38 cent or 3.6% increase in net tangible asset (NTA) backing per security to $10.86 at 30 June 2020.

Dexus Chief Executive Officer, Darren Steinberg said: “Our ability to act quickly and decisively on both opportunities and challenges has been a contributing factor to our continued success. Our response to the challenging operating environment caused by the onset of the COVID-19 pandemic, together with how we were placed going into the crisis, positions us well for the recovery.

Underlying Funds from Operations (FFO) per security of 63.5 cents, which excludes trading profits, grew by 1.0% despite the impact of rent relief provided, highlighting the contribution from the funds management business and non-recurring cost reduction measures.

AFFO and distribution per security of 50.3 cents, was consistent with the prior year and in line with revised guidance provided on 1 June 2020, with the distribution payout ratio remaining in line with free cash flow in accordance with Dexus’s distribution policy. The distribution for the six months ended 30 June 2020 of 23.3 cents per security will be paid to Dexus Security holders on Friday, 28 August 2020.

Rent collections for the Dexus portfolio were strong at 98% in FY20, with 92% collected in the fourth quarter of FY20.

Chief Financial Officer, Alison Harrop said: “We have remained focused on preserving capital while selectively investing in assets with solid fundamentals and divesting non-core or lower returning assets. We enhanced our financial position by sourcing $1.85 billion of debt, including the issue of $700 million of 10 and 12-year Medium-Term Notes, which increased our debt duration to 6.9 years and further diversified our funding sources. In this uncertain environment, we remain focused on maintaining the strength of our balance sheet.”

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