Dexus has announced a statutory net profit after tax of $348.5 million for the first half of the financial year, a significant turnaround from the $10.3 million loss reported in the previous corresponding period. The improved result was driven by a recovery in property valuations across the portfolio. Dexus is a property group that owns, manages, and develops office, industrial, and retail properties in Australia. It also manages property funds on behalf of third-party clients.
Adjusted funds from operations (AFFO) increased to $253.3 million, equating to 23.6 cents per security. This supported a distribution of 19.3 cents per security, aligning with management’s previously issued guidance. Office leasing activity saw substantial growth, almost doubling to 95,300 square metres. This surge was primarily attributed to pre-leasing successes at Waterfront Brisbane, which is now 71 per cent committed.
Industrial like-for-like income experienced robust growth of 8.7 per cent. Furthermore, both the Dexus Wholesale Property Fund and the Dexus Wholesale Shopping Centre Fund outperformed their respective benchmarks during the period. Dexus successfully raised over $950 million in new equity across its various funds and facilitated $280 million in secondary unit transactions. The company also exchanged or settled approximately $0.8 billion in divestments, including the sale of 100 Mount Street in North Sydney.
Looking ahead, Dexus is on track with its planned divestments for the FY25-27 period, targeting $1.4 billion. In response to the disparity between market valuation and underlying asset value, Dexus has initiated an on-market buyback of up to 10 per cent of its securities. The company will also continue exploring opportunities for third-party capital participation to unlock additional capital, according to Dexus chief executive Ross Du Vernet, who noted that asset values have turned positive and transaction markets are recovering.