The Dexus (ASX:DXS) share price has hit a new 52-week high

The real estate investment trust’s new deal has seen its share price rise.

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two businessmen shake hands amid a backdrop of tall buildings, indicating a share price movement or merger between ASX property companies

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After gaining 5% this week, the Dexus Property Group (ASX: DXS) share price is at its highest point of the last 12 months. At the time of writing, Dexus shares are swapping hands for $10.96 – 3% more than yesterday’s closing price.

Let’s take a look at what the real estate group has been up to lately.

Yesterday’s news

Yesterday, Dexus announced it has established a relationship with Australian Unity, in particular the Australian Unity Healthcare Property Trust (AUHPT).

The relationship has seen Dexus make a $180 million investment in the Trust’s capital raising. Each unit in AUHPT will cost $2.60. Dexus’ investment represents around 7% of AUHPT’s equity.

The company will now have the opportunity to invest in parts of Australian Unity’s healthcare development pipeline. This represents around $1 billion of proposed greenfield and brownfield developments.

Dexus’ CEO Darren Steinberg commented on the new relationship:

We are confident in the outlook for healthcare real estate and the investment in AUHPT provides us with an efficient way to increase our exposure to this attractive asset class at an appealing price.

What else has Dexus been up to?

The first time we heard from the company this year was in February when it released its results for the first half of the 2021 financial year.

Despite a small lift in revenue, it recorded a 55.5% decrease in net profit after tax compared to the previous corresponding period – caused by net revaluation gains of investment properties.

The results saw its share price end that day 3.5% lower than it had the previous session.

In March, Dexus announced it had made an agreement to merge its $10 million Dexus Wholesale Property Fund (DWPF) with a $5 million AMP Capital Diversified Property Fund (ADPF).

The news spurred the Dexus share price 2.8% higher than on the previous day’s trade.

Finally, on 6 April, the Dexus share price dropped 0.9% on news the company had sold its office tower at 10 Eagle Street in Brisbane to Marquette Properties. 

The sale brought in $285 million, which Dexus is using to repay its outstanding debt.

Dexus share price snapshot

It’s been a good year so far on the ASX for the Dexus share price, which is currently 16.5% higher than it was at the start of the year.

It has also gained almost 11% since this time last year.

The company has a market capitalisation of around $11.7 billion, with approximately 1 billion shares outstanding.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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