The DEXUS Property Group (ASX: DXS) share price is bouncing around in early morning trade, up 0.3% at the time of writing.
Dexus manages a portfolio of properties across Australia valued at $32.1 billion. Below we take a look at the ASX real estate share’s latest quarterly report.
What did Dexus report for the quarter?
Dexus’ share price is seeking direction after the company reported that occupancy rates across CBD office locations have increased since the COVID-19 vaccine rollout commenced during the quarter ending 31 March. Dexus maintained high rent collections of 96% during the quarter.
Commenting on the office market rebound, Darren Steinberg, Dexus CEO said:
It is pleasing to see momentum in leasing activity across our CBD office markets. Tenant enquiry and activity across our office portfolio has been strong particularly for smaller tenancies, and larger occupier briefs are starting to emerge. The significant number of leasing transactions completed during the quarter is encouraging and highlights the demand for quality workspace in well-located CBD assets.
On the property front, Dexus noted it had raised $125 million for its Dexus Healthcare Property Fund during the quarter, as well as completing 108 leasing transactions in its office portfolio, totalling 46,703 square metres of space. Office occupancy stood at 95.4%.
Dexus was also active in the industrial space, with 37 transactions seeing 117,747 square metres leased. Industrial occupancy increased to 97.8%.
The company reported that it’s continuing work on expanding and diversifying its funds management business. Initiatives include establishing a new office joint venture, as well as securing approval for the merger of the $5.4 billion AMP Capital Diversified Property Fund with Dexus Wholesale Property Fund.
Commenting on the funds management business, Steinberg said:
We are pleased with the continued momentum across the funds platform, as we progressed initiatives in DWPF, healthcare and our new opportunity fund. Our continued focus on our relationships with third party capital partners will assist with opportunities we have in the pipeline
Dexus also obtained shareholder approval on 22 April for plans to simplify its corporate structure.
With a look to the future Steinberg said:
Moving forward, we will continue to execute on our strategic initiatives which include increasing the resilience of portfolio income streams, expanding and diversifying the funds management business, and progressing the development pipeline to drive superior risk-adjusted returns for investors.
Dexus maintained its guidance on its dividend distribution for the 2021 financial year, expecting to pay 50.3 cents per share, the same payout as FY20.
Dexus share price snapshot
Over the past 12 months, Dexus shares have gained 17%, trailing the 33% gains posted by the S&P/ASX 200 Index (ASX: XJO).
So far in 2021, the Dexus share price is up 9%.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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