DGAP-Adhoc : Dexus Finance Pty Limited: recent sales support resilience in asset values

 
 DGAP-Ad-hoc: Dexus Finance Pty Limited / Key word(s): Real Estate 
Dexus Finance Pty Limited: recent sales support resilience in asset values 
 
16-Dec-2020 / 05:01 CET/CEST 
Disclosure of an inside information acc. to Article 17 MAR of the Regulation 
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*Dexus (ASX: DXS)* 
 
*ASX release* 
 
*16 December 2020 * 
 
*Recent sales support resilience in asset values * 
 
Dexus today announced that 111 of its 122 assets, comprising 42 office 
properties and 69 industrial properties have been externally valued as at 31 
December 2020. 
 
The external independent valuations have resulted in a total estimated 
increase of circa $109 million or 0.7% on prior book values1 for the six 
months to 31 December 2020. 
 
Darren Steinberg, CEO of Dexus said: "We have seen continued interest and 
demand from investors despite softer fundamentals in the office occupier 
market. These investors are looking through the current cycle, recognising 
the long-term value and benefits of being able to increase their investments 
in Australian real estate. This dynamic, coupled with lower for longer 
interest rates has supported cap rates and asset values. 
 
"Our latest independent valuations demonstrate the resilience of 
high-quality assets in prime locations. The office portfolio value was in 
line with prior book values as a result of the softer valuer assumptions 
over the next 12 months relating to rental growth, downtime and incentives, 
being offset by successful leasing. The industrial portfolio experienced a 
circa 4.5% increase on prior book values, reflecting recent portfolio 
leasing and the continued investment demand for industrial assets globally." 
 
The weighted average capitalisation rate across the total portfolio 
tightened circa 4 basis points over the past six months from 5.05% at 30 
June 2020 to circa 5.01% at 31 December 2020. The weighted average 
capitalisation rate of the office portfolio tightened circa 2 basis points 
from 4.97% at 30 June 2020 to circa 4.95% at 31 December 2020 and the 
industrial portfolio weighted average capitalisation rate tightened circa 30 
basis points from 5.66% at 30 June 2020 to circa 5.36% at 31 December 2020. 
 
Details relating to specific individual property valuations will be 
available in Dexus's 2021 half year results which will be released on 
Tuesday, 9 February 2021. 
 
  1) Excluding 45 Clarence Street, Sydney, Grosvenor Place, Sydney and 60 
  Miller Street, North Sydney following the announcement of the sale of 
  these assets in the six months to 31 December 2020. 
 
_Authorised by the Board of Dexus Funds Management Limited._ 
 
*For further information please contact:* 
 
*Investors *                     *Media* 
Merren Favretto                  Louise Murray 
Senior Manager, Investor         Senior Manager, Corporate 
Relations                        Communications 
[phone]                  [phone] 
[phone]                  [phone] 
[e-mail]        [e-mail] 
 
Information and Explanation of the Issuer to this News: 
 
*About Dexus* 
 
Dexus is one of Australia's leading real estate groups, managing a 
high-quality Australian property portfolio valued at $32.0 billion. We 
believe that the strength and quality of our relationships is central to our 
success and are deeply committed to working with our customers to provide 
spaces that engage and inspire. We invest only in Australia and directly own 
$16.5 billion of properties, with a further $15.5 billion of properties 
managed on behalf of third-party clients. The group's $10.4 billion 
development pipeline provides the opportunity to grow both portfolios and 
enhance future returns. With 1.8 million square metres of office workspace 
across 51 properties, we are Australia's preferred office partner. Dexus is 
a Top 50 entity by market capitalisation listed on the Australian Securities 
Exchange (trading code: DXS) and is supported by 29,000 investors from 21 
countries. With over 35 years of expertise in property investment, 
development and asset management, we have a proven track record in capital 
and risk management, providing service excellence to tenants and delivering 
superior risk-adjusted returns for investors. www.dexus.com 
 
Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible 
Entity for Dexus (ASX: DXS) 
Level 25, 264 George Street, Sydney NSW 2000 
 
16-Dec-2020 CET/CEST The DGAP Distribution Services include Regulatory 
Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
Language:    English 
Company:     Dexus Finance Pty Limited 
             264 George Street 
             2193 Sydney 
             Australia 
Phone:       [phone] 
Fax:         [phone] 
E-mail:      [e-mail] 
Internet:    www.dexus.com 
ISIN:        XS1961891220 
WKN:         A2RZHG 
Listed:      Regulated Unofficial Market in Frankfurt 
EQS News ID: 1155521 
 
End of Announcement DGAP News Service 
 
1155521 16-Dec-2020 CET/CEST 
 
 

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December 15, 2020 23:01 ET (04:01 GMT)