Dexus Industria REIT reported statutory net profit after tax of $0.3 million, driven by the $56.3 million of net fair value losses on investment properties compared with the $100.3 million net fair value recorded over the prior year.
Assets were independently valued, with a 1.5% decrease in prior book values. The group’s property portfolio comprises of 94 properties valued at $1.6 billion, with a weighted average capitalisation rate of 5.38%. The portfolio weighted average lease expiry is 6.3 years and total occupancy remained strong at 97.5%.
Dexus Industria has $237 million remaining to spend on developments, of which $87 million is committed. The total pipeline of $318 million equates to interests in 398,200 square metres in major hubs in Sydney and Perth, providing an opportunity to capture strong market rental growth and further enhance portfolio quality.
DXI has stated that they are well positioned with gearing below the target band, substantial liquidity and no debt maturities until FY25. Capital management initiatives will continue to be explored to further reduce debt and support potential higher-returning opportunities while providing additional capacity to fund the development pipeline.
Strong tailwinds from development completions, annualisation of double-digit re-leasing spreads and 50% of portfolio income linked to CPI rental escalations position DXI well for FY24, despite higher floating interest rates which will impact growth.
FY24 guidance is 17.1 cents and for distributions is 16.4 cents per security, reflecting a distribution yield of 5.9%.
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