- Company recorded $113.7M in statutory net profit
- Key drivers included >45,000 sqm of leasing, and large acquisitions
- Revenue was $37.2M, up 17%
Dexus Industria REIT (ASX: DXI) today released its half-yearly report.
The company’s profits grew by 257% on the previous corresponding period, statutory net profit was $113.7 million. DXI said the figure was primarily driven by higher revenue and valuation gains on investment properties.
This morning, DXI opened at $3.28, quickly peaking at $3.33 at around 10:00 am, before dropping to as low as $3.24 before midday. DXI stocks gradually recovered throughout the day, closing up one cent at $3.29.
“The financial results for the first half reflect an active period of leasing and
transactions, as well as the focus across the Dexus platform to generate outperformance for DXI securityholders,” said DXI fund manager, Alex Abell.
“Key drivers of the result included 45,700 square metres of leasing; acquiring $584 million of industrial assets including a 33.3% stake in 51 assets and 80 hectares of development land at Jandakot Airport, Perth; and raising $350 million of equity and additional debt to fund growth initiatives.”
Key Metrics, DXI
| 31-Dec-21 | 31 June 2021 | |
| Gearing | 28.5% | 31.7% |
| Gearing (look-through) | 33.9% | 31.7% |
| Cost of debt | 2.3% | 2.7% |
| Weight average debt maturity | 3.8 years | 2.9 years |
| Hedged debt | 56% | 77% |
| Headroom | $68M | $22M |
| Interest cover | 6.9x | 7.2x |
Source: Dexus Industria REIT.
“The acquisitions undertaken during the period will deliver transformational growth over the coming years. On completion of these acquisitions, the portfolio is 79% weighted towards industrial and logistics assets, which continue to benefit from strong underlying industry fundamentals,” said Mr Abell.
DXI’s portfolio grew the 39 property portfolio worth $1.10 billion to 93 properties, now valued at $1.78 billion. The growth in the portfolio included three new joint ventures with Dexus, enhancing the alignment of interest between Dexus as manager, and DXI securityholders.
The weighted average capitalisation rate for the portfolio is 5.1% and the weighted average lease expiry by income is 5.9 years. 74% of portfolio income grows at contracted rent reviews of 3% or more. Total occupancy remained at 97%.
DXI reported that there was an 8.3% like-for-like increase ($91 million) on prior corresponding period book values across the portfolio and 48 basis points of like-for-like cap rate compression.
DXI financial reporting for HY22, Appendix 4D
| 31 Dec 2021 | 31 Dec 2020 | % | |
| $000 | $000 | Change | |
| Revenue from ordinary activities | 37,181 | 31,768 | 17.0% |
| Net profit attributable to security holders after tax | 113,697 | 31,850 | 257.0% |
| Funds from operations (FFO) | 24,829 | 19,788 | 25.5% |
| Distribution to securityholders | 23,196 | 17,513 | 32.5% |
| Cents | Cents | ||
| FFO per security | 9.46 | 9.96 | -5.0% |
| Distribution per security for the period | 8.65 | 8.60 | 0.6% |
| Payout ratio (distribution per security as a % of FFO per security) |
91.4% | 86.3% | 5.1% |
| Basic earnings per security | 43.33 | 16.04 | 170.1% |
| Diluted earnings per security | 43.33 | 16.04 | 170.1% |
| Franked distribution amount per security | – | – | – |
| ‘000 | ‘000 | ||
| Total assets | 1,686,474 | 951,664 | 77.2% |
| Total borrowings | 468,033 | 292,402 | 60.1% |
| Security holders equity | 1,131,522 | 606,604 | 86.5% |
| Market capitalisation | 1,120,261 | 589,435 | 90.1% |
| $ per security | $ per security | ||
| Net tangible assets | 3.55 | 2.88 | 23.3% |
| Securities price | 3.51 | 2.81 | 24.9% |
Source: Dexus Industria REIT.
