2017 Half year results - Delivering growth in underlying business
DEXUS Property Group (DEXUS) today announced that it had achieved strong operational results, delivering growth in its underlying business, and has upgraded market guidance for the 2017 financial year.
Darren Steinberg, DEXUS Chief Executive Officer, said: 'Our commitment to delivering value for investors has seen us remain active through leasing, development and transactional activity.
'Income growth from leasing activity and development completions during FY16 helped to offset the impact of recent asset sales, driving a solid underlying result.
'We've progressed priority projects in our trading pipeline as well as opportunities to restock the future pipeline and we're confident that the remaining forecast trading profits will be realised in the coming months, delivering on our FY17 target.'
HIGHLIGHTS
Increased underlying Funds from Operations (FFO) to $287.7 million, up $27.1 million or 10.4% on the previous corresponding period
Improved the Group Management Expense Ratio2 to 36 bps, down 4 bps from the previous corresponding period
Increased Net Tangible Assets (NTA) per security by 6.9% or 52 cents from 30 June 2016 to $8.05 at 31 December 2016
Achieved gearing of 26.5%, down 4.2 percentage points from 30 June 2016
DEXUS property portfolio
Delivered a strong one-year total return of 13.9% across the DEXUS Office portfolio
Achieved significant leasing volumes, with 225 leasing transactions undertaken across 327,938 square metres, including record levels of leasing across the DEXUS Industrial portfolio
Improved the DEXUS Industrial portfolio's occupancy by 4.5 percentage points to 94.9%
Development
Commenced construction of the core of 100 Mount Street, North Sydney
Added new projects to the uncommitted development pipeline including 201 Elizabeth Street, Sydney
Post period end, secured 39,112 square metres of industrial development pre-commitments
Funds Management
Delivered outperformance against respective benchmarks for all third party clients
Acquired Carillon City retail centre in Perth CBD on behalf of DEXUS Wholesale Property Fund (DWPF)
Opened the new Gateway and Grosvenor Place food/restaurant precincts in Sydney, enhancing investor returns and improving the amenity for our office tenants
Trading
Delivered $8.3 million of trading profits in HY17. In January 2017, secured a further $17 million towards the FY17 trading profit target of $45-50 million
Progressed priority trading projects and focussed on opportunities to restock the future trading pipeline, receiving local Council and Regional Planning Panel endorsement of a concept scheme for an office building at 140 George Street, Parramatta
Transactions Settled on $688 million of asset sales, including the sale of 39 Martin Place, Sydney
Acquired The Mill in Alexandria, expanding DEXUS's customer offering and providing the opportunity to activate underutilised floor space and capture rental growth
DEXUS Property Group published this content on 15 February 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 February 2017 22:23:10 UTC.
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Dexus is an Australia-based real estate company. The Companyâs segments include Office, Industrial, Co-investments, Property management, Funds Management, and Development and Trading. The Office segment consists of domestic office space with any associated retail space, as well as car parks and office developments owned directly or in joint ventures or partnerships. The Industrial segment includes domestic industrial properties, industrial estates and industrial developments. The Co-investments segment includes distribution income earned from investments in pooled property and real estate security funds. The Property management segment includes property management services for third party clients and owned assets. The Funds management segment consists of fund management of third-party client assets. The Development and trading segment includes revenue earned and costs incurred by the Company on development services for third party clients and inventory.