DGAP-Adhoc: Dexus Finance Pty Limited: COVID-19 and FY20 Guidance update

DGAP-Ad-hoc: Dexus Finance Pty Limited / Key word(s): Miscellaneous 
Dexus Finance Pty Limited: COVID-19 and FY20 Guidance update 
 
26-March-2020 / 00:59 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* 
 
*26 March 2020* 
 
*COVID-19 and FY20 guidance update* 
 
Dexus provides the following update due to the increasing uncertainty in 
relation to COVID-19. 
 
Darren Steinberg, Dexus CEO said: "We are in unprecedented and challenging 
times. As custodians of many buildings across Australia's major cities, it 
is incumbent on us to protect our tenant base, particularly the SMEs and 
retailers who support our office towers and shopping precincts and are 
bearing the brunt of this evolving global situation. 
 
"SMEs are the lifeblood of the country and we need to ensure we look after 
them, so that when we inevitably emerge from this event, they can return to 
normal operations as soon as possible. 
 
"As a priority we remain focused on the health, safety and wellbeing of our 
employees and the people in our buildings. We have adopted internal business 
continuity measures to minimise the disruption to our business and have 
implemented government guidelines to reduce the spread of COVID-19 at our 
properties." 
 
*Financial position* 
 
From a balance sheet perspective, Dexus is well positioned with gearing 
(look-through) of 25.5%. Debt is well diversified and comprises 35% from 
bank debt and 65% from debt capital markets, with a debt duration of 7.4 
years at 31 December 2019. 
 
Over the past 12 months Dexus has accessed both equity and debt capital 
markets to provide additional funding capacity and flexibility. Dexus has 
$1.3 billion[1]of cash and committed undrawn bank facilities available and 
has limited debt refinancing requirements, with circa $400 million of debt 
maturing in late FY21. 
 
All debt is senior and unsecured and no individual asset is encumbered by 
debt. Dexus's principal debt covenants relate to gearing and interest cover 
levels. Dexus remains within all of its debt covenant limits and is below 
its target gearing range of 30-40%. 
 
Dexus continues to retain its strong credit ratings of A-/A3 from S&P and 
Moody's respectively. 
 
*FY20 guidance* 
 
Dexus announced its FY20 half year results on 6 February 2020. In this 
announcement Dexus provided FY20 full year guidance for distribution per 
security growth and the detailed assumptions associated with this guidance. 
 
In the early part of the second half of FY20, Dexus's operations have 
performed consistent with expectations. However, in consideration of the 
evolving COVID-19 situation and the uncertainty that lies ahead, the Board 
of Directors of Dexus Funds Management Limited have withdrawn FY20 guidance 
and its associated assumptions. At this time, Dexus is assessing the impact 
of COVID-19 on its operating environment including the assistance that it 
may need to provide to its tenant base to ensure the portfolio is well 
placed to perform when this event passes. 
 
Dexus is supported by its strong financial position, a high quality property 
portfolio across prime CBD locations, a diversified tenant base, and an 
experienced management team. 
 
A further update on business conditions will be provided when appropriate. 
 
_Authorised by the Board of Dexus Funds Management Limited._ 
 
*For further information please contact:* 
 
*Investors*                    *Media* 
David Yates                    Louise Murray 
Executive General Manager,     Senior Manager, Corporate 
Investor Relations             Communications 
[phone]                [phone] 
[phone]                [phone] 
[e-mail]          [e-mail] 
 
[1] Including settlement proceeds from the sale of the second tranche rights 
for GIC to acquire a further 24% interest in the Dexus Australian Logistics 
Trust (DALT) portfolio which are expected to be received on 1 April 2020. 
 
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 $33.8 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 
$16.8 billion of properties, with a further $17.0 billion of properties 
managed on behalf of third party clients. The group's $11.2 billion 
development pipeline provides the opportunity to grow both portfolios and 
enhance future returns. With 1.8 million square metres of office workspace 
across 55 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 27,000 investors from 20 
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* 
Download the Dexus IR app to your preferred mobile device to gain instant 
access to the latest stock price, ASX Announcements, presentations, reports, 
webcasts and more. 
 
Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible 
Entity for Dexus (ASX: DXS), Level 25, 264 George Street, Sydney NSW 2000 
 
26-March-2020 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: 1007423 
 
End of Announcement DGAP News Service 
 
1007423 26-March-2020 CET/CEST 
 
 

(END) Dow Jones Newswires

March 25, 2020 19:59 ET (23:59 GMT)