EQS-Adhoc

Dexus Finance Pty Limited: March 2024 quarter update - Seite 2

Ross Du Vernet said: “While conditions remain challenging, our investment portfolio continues to deliver resilient income streams and we have a strong balance sheet supported by a disciplined approach to capital management. With the integration of the AMP Capital platform now complete, we have turned our focus to the immediate two priorities which will set us up for growth in the next phase of the investment cycle.

“Barring unforeseen circumstances, for the 12 months ended 30 June 2024^[1] Dexus reiterates its expectation for distributions of circa 48.0 cents per security. AFFO excluding trading profits is expected to be broadly in line with that delivered in FY23.”

Funds management continues to deliver for investors

Since transitioning to Dexus’s platform, Dexus Wholesale Shopping Centre Fund (DWSF) continued to generate strong performance, outperforming its benchmark during the nine months to 31 March 2024 by circa 195 basis points. Dexus Diversified Infrastructure Trust (DDIT) outperformed its benchmark[2] over the past 12 months.

Dexus Real Estate Partnership 2 (DREP2), which launched late last year, has raised more than $300 million in commitments towards its first close from both institutions and private investors, as well as returning DREP1 investors.

Dexus secured circa $0.4 billion of transactions across the platform during the quarter, the majority of which were divestments on behalf of a number of funds.

High-quality property portfolio supports resilient cashflows

	Office		Industrial
Key metrics	31 Mar 2024	31 Dec 2023	31 Mar 2024	31 Dec 2023
Occupancy by income	94.4%	94.5%	96.6%	99.0%
Occupancy by area	93.6%	94.0%	97.5%	99.5%
Weighted average lease expiry (by income)	4.5 years	4.6 years	4.4 years	4.6 years
Square metres leased[3]	27,400	66,600	20,900	102,500
Number of lease transactions3	55	135	9	17
Average incentives[4]	29.0%	29.4%	17.8%	18.6%

In office, location remains a key differentiator for asset performance, with the Sydney core and Melbourne eastern core again reporting lower vacancy compared with their respective CBD averages. Dexus’s office portfolio occupancy by income of 94.4% remained well above the wider market at 86.5%^[5] and was in line with HY24, reflecting leasing success across the portfolio. Average incentives of 29.0% were slightly below HY24 levels, as smaller customers accounted for a higher proportion of leasing deals during the quarter.