DEXUS Property Group (ASX:DXS) shares surge on profit jump

DEXUS Property Group's (ASX: DXS) results revealed NPAT of $1.73 billion – up 36.8% on FY17 .

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Shares in office landlord company DEXUS Property Group (ASX: DXS) have jumped 3% at the time of writing to $10.47 after the release of its FY18 results and annual report.

Dexus revealed NPAT of $1.73 billion – up 36.8% on FY17 with funds from operations up 5.8% to $653.3 million and an office portfolio occupancy rate of 96% – which is slightly down from last year.

Dexus' CEO Darren Steinberg flagged a strong set of results back in July, despite struggles with vacancy rates, and today's results include plans for new fund partnerships over the next year.

Looking forward Dexus expects continued strong fundamentals for Sydney and Melbourne, with improving conditions in Brisbane and Perth.

Market guidance for the 12 months ending June 30 2019 is to deliver distribution per security growth of circa 5%.

Dexus is up against Cromwell Group (ASX: CMW) in the office space segment, with Cromwell due to hand down its own financial report on August 24.

Property market cousins Mirvac Group (ASX: MGR), Lendlease Group (ASX: LLC) and Stockland Corporation Ltd (ASX: SGP) are also on watch as results season continues.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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