DEXUS Property earnings hit expectations

DEXUS Property Group (ASX: DXS) reported its full-year results for 2013 today, and the company’s refocusing strategy seems to be working. DEXUS reported after-tax net profit of $515 million, up from just $181 million for fiscal 2012. The move came mostly from higher revaluation gains, as property prices continue to head higher.

For investors, DEXUS managed to meet its $0.0775 EPS guidance, while bumping up distributions just over 12%. With occupancy rates up and valuation continuing to head higher, the company’s current portfolio value clocks in at $7.3 billion.

DEXUS has been busy reorienting its investments around higher profit specialized markets. “We have refocused the business, concentrating on maximising value, improving earnings and investing in our target markets,” said CEO Darren Steinberg in a statement today. “We undertook a significant number of transactions, selling non-core offshore properties well ahead of our expected timeframe and reinvesting the funds into quality Australian CBD office properties.”

Overall return on equity clocked in at 11.2% this year, helping to push funds from operations up 1.3% and net operating income up 1.6%. DEXUS went through around $2.9 billion in transactions as it sold off its U.S. and European industrial property portfolios to reinvest in $1.1 billion of Australian office markets.

Looking ahead, DEXUS expects fiscal 2014 earnings to head 5.2% higher to $0.0815 EPS. Steinberg noted that “despite uncertain market conditions, we are confident our team’s strong corporate and leasing backgrounds will enable us to continue to drive high performance.”

DEXUS may have managed to grow its dividend in the last year, but there’s another company out there that needs to be on your investment radar. Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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