Dexus Property Group on track to achieve market guidance for full year earnings

Dexus Property Group today confirmed it was on track to achieve its market guidance for full year earnings, after unveiling a solid interim net profit lift of 3.8%.

The listed property group delivered a net profit of $277.2 million for the six months to December.

Earlier this year, Dexus beat rivals GPT to take over the $3 billion Commonwealth Property Group with partners, the Canadian Pension Plan Investment Board.

Funds from operations (FFO) jumped to $189.8 million, representing 4.08 cents per security - up 6% on the previous corresponding period.

Dexus chief executive Darren Steinberg said: "While it was a busy period undertaking the CPA transaction, we maintained our focus on driving returns from our existing portfolio, delivering a solid operational result which sees us on track to achieve our upgraded FY14 guidance.

“The valuation gains in our office portfolio primarily drove a 3.0 cent increase in NTA per security to $1.08, reflecting the positive impact of leasing success on capital values and reinforcing the importance of securing strong tenant covenants."

Looking ahead, Mr Steinberg said DEXUS was "well-positioned to capture the improvements in office and industrial markets which we anticipate to occur in FY15."

He said the company was confident of achieving its market guidance for earnings or FFO for the 12 months ending 30 June 2014 of 8.29 cents per security. Dexus was targeting an FY14 distribution payout ratio of "75% of FFO in line with free cash flow, delivering an expected distribution of 6.24 cents per security.”

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