Dexus posts $1.26bn profit on portfolio uptick
Commercial property group Dexus has more than doubled its full-year profit thanks to a sharp upward revaluation of its portfolio.
For the year to June 30, its net profit after tax leapt 103.6% to $1.26 billion, aided by a revaluation gain of $814.4 million.
“This was driven primarily by value uplifts across the office portfolio and recently completed office developments,” Dexus says.
In a statement to the market this morning, the real estate investment trust says the more closely-watched funds from operations measure rose 12.2% to $610.8 million.
On a per security basis, FFO increased 6% to 63.1 cents, at the top end of its guidance range.
The group’s underlying FFO lifted 9.1% to $547.5 million, despite a very modest 0.8% advance in revenue to $865.5 million.
The improving performance of our property portfolio has set us up to deliver a solid result in FY17 despite recent divestments
Dexus chief executive Darren Steinberg says a reset of the group’s strategy four years ago set the group up for the steady result and has it positioned for further expansion next year.
“We have expanded our development pipeline and identified trading opportunities, positioning the portfolio for future growth,” he says.
“The improving performance of our property portfolio has set us up to deliver a solid result in FY17 despite recent divestments, and we expect underlying FFO per security to grow by 3.0 to 3.5% and distribution per security by 2.5 to 3.5%.”
Distributions for the year to June 30 were 43.51 cents per security, up 6% on the prior year. The payout was in line with the top of its 5.5 to 6% guidance range.
This article originally appeared on www.theaustralian.com.au/property.