DGAP-Adhoc: Dexus Finance Pty Limited: $656 million uplift from independent valuations

DGAP-Ad-hoc: Dexus Finance Pty Limited / Key word(s): Preliminary 
Results/Real Estate 
Dexus Finance Pty Limited: $656 million uplift from independent valuations 
 
13-Dec-2019 / 06:07 CET/CEST 
Disclosure of an inside information acc. to Article 17 MAR of the Regulation 
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*Dexus (ASX: DXS)* 
 
*ASX release* 
 
*13 December 2019 * 
 
*$656 million uplift from independent valuations* 
 
Dexus today announced that 109 of its 118 assets, comprising 43 office 
properties and 66 industrial properties were externally valued to 31 
December 2019. 
 
The external independent valuations completed have resulted in a total 
estimated $656 million or circa 4% increase on prior book values for the six 
months to 31 December 2019. As a result of these valuations Dexus's net 
tangible asset backing (NTA) per security is expected to increase by 60 
cents. 
 
Darren Steinberg, CEO of Dexus said: "Investment demand for quality office 
and industrial properties combined with a lower for longer interest rate 
environment continue to flow through to the capital values of our 
properties." 
 
The weighted average capitalisation rate across the total portfolio 
tightened 17 basis points over the past six months to 5.09%. The weighted 
average capitalisation rate of the office portfolio tightened 17 basis 
points from 5.15% at 30 June 2019 to 4.98% at 31 December 2019 and the 
industrial portfolio weighted average capitalisation rate tightened 14 basis 
points from 5.92% to 5.78%. 
 
The majority of the office portfolio valuation uplift was driven primarily 
by capitalisation rate compression and market rent growth. One Farrer Place 
in Sydney increased in value by $90.2 million due to market rent increases 
and a 28 basis point tightening in the property's capitalisation rate. The 
MLC Centre in Sydney increased by $52.7 million driven by leasing success 
and 23 basis points of capitalisation rate tightening. 44 Market Street in 
Sydney increased $34.5 million following completion of the retail 
redevelopment, an uplift in market rents and a 12.5 basis point tightening 
in the property's capitalisation rate. 
 
Valuation increases across the industrial portfolio were driven by continued 
capitalisation rate compression at properties across key Eastern seaboard 
markets supported by an increase in transactional evidence. 
 
Darren Steinberg said: "We've seen a significant increase in enquiries both 
from domestic and offshore investors seeking to invest directly in office 
and industrial properties through our funds management business. This 
increased interest is partly a function of the relative pricing at an 
attractive spread to bonds and rent growth prospects in Australia compared 
to global cities. As a result, we expect to see further valuation increases 
over the next six to 12 months." 
 
Details relating to specific individual property valuations will be 
available in Dexus's 2020 half year results which will be released on 
Thursday, 6 February 2020. 
 
_Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus 
Funds Management Limited._ 
 
*For further information please contact:* 
 
*Investors & Media* 
David Yates 
Executive General Manager, Investor Relations, Communications & 
Sustainability 
[phone] 
[phone] 
[e-mail] 
Information and Explanation of the Issuer to this News: 
 
*About Dexus* 
 
Dexus is one of Australia's leading real estate groups, proudly managing a 
high quality Australian property portfolio valued at $31.8 billion. We 
believe that the strength and quality of our relationships is central to our 
success, and are deeply committed to working with our customers to provide 
spaces that engage and inspire. We invest only in Australia, and directly 
own $15.6 billion of office and industrial properties. We manage a further 
$16.2 billion of office, retail, industrial and healthcare properties for 
third party clients. The group's circa $8.7 billion development and concept 
pipeline provides the opportunity to grow both portfolios and enhance future 
returns. With 1.7 million square metres of office workspace across 53 
properties, we are Australia's preferred office partner. Dexus is a Top 50 
entity by market capitalisation listed on the Australian Securities Exchange 
(trading code: DXS) and is supported by 26,000 investors from 19 countries. 
With 35 years of expertise in property investment, development and asset 
management, we have a proven track record in capital and risk management, 
providing service excellence to tenants and delivering superior 
risk-adjusted returns for investors. www.dexus.com 
 
*Download the Dexus IR app* 
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13-Dec-2019 CET/CEST The DGAP Distribution Services include Regulatory 
Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
Language:    English 
Company:     Dexus Finance Pty Limited 
             264 George Street 
             2193 Sydney 
             Australia 
Phone:       [phone] 
Fax:         [phone] 
E-mail:      [e-mail] 
Internet:    www.dexus.com 
ISIN:        XS1961891220 
WKN:         A2RZHG 
Listed:      Regulated Unofficial Market in Frankfurt 
EQS News ID: 935507 
 
End of Announcement DGAP News Service 
 
935507 13-Dec-2019 CET/CEST 
 
 

(END) Dow Jones Newswires

December 13, 2019 00:08 ET (05:08 GMT)