Image – The Property Tribune.
  • Distributions confirmed at 28 cents per security
  • Net profit after tax over $800 million
  • Rent collections were 97.9%

Yesterday, Dexus (ASX: DXS) announced its half year results, the company announcing an 82% rise in net profit after tax, reported as $803.2 million.

The half-year was particularly busy, including the integration of listed and unlisted funds that comprised APN Property Group onto the Dexus platform, Cbus Super joining the Jandakot joint venture, equity raising and acquisition of Arcadia Pittwater Private Hospital, among other funds management activity.

Dexus also touted its eco credentials, the company was  acknowledged as a global ESG leader, outperforming 569 real estate companies globally to become the only real estate company to achieve a Gold Class distinction in the S&P Global Sustainability Yearbook 2022. The company also retained its leadership on the Dow Jones Sustainability Index.

Dexus began trading yesterday just over $10.10, gradually rising throughout the day and closing at $10.43.

“Despite impacts from the pandemic, it has been an active start to the year with growth in our funds management business, continued leasing activity, as well as new acquisitions and selective asset sales,” said Dexus CEO Darren Steinberg.

“This momentum demonstrates our continued focus on leveraging our platform capabilities to drive performance across our portfolio and in our third party funds.”

Movement Percentage Amount
NPAT up 82.0% to $803.2 million
Distribution down 2.8% to 28 cps
Revenue from ordinary activities down 17.8% to $514.9 million
FFO up 5.60% to $396.7 million
Adjusted FFO down 3.7% to $302.2 million
Underlying FFO up 14.20% to $375.1 million
Trading profits $21.6 million
Rent collections 97.90%
Gearing 31.10%
Office occupancy 95.10%
Industrial occupancy 98.60%

Net profit, like many companies reporting over this period, was driven primarily by net revaluation gains on properties. Dexus had revaluation gains of $486.2 million, $341.5 million higher than the previous corresponding period.

At 31 December 2021, 124 of Dexus’ 189 office, industrial and healthcare properties were independently valued by external valuers. Most of the valuation uplift was seen across the industrial portfolio which increased by 8.9%, with the office portfolio increasing 1.1% on prior book values on the back of leasing success at some assets.

Valuation gains across the total property portfolio for the period to 31 December 2021 contributed to the 35 cents or 3.1% increase in net tangible asset (NTA) per security to $11.77.

Mr Steinberg said: “Strong momentum has continued across our diversified property platform in the first half of FY22 and despite the uncertainty caused by the Omicron variant we are confident that we can continue to execute on our objectives.”

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