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
+61 2 9017 1424 +61 2 9017 1446
+61 418 861 047 +61 403 260 754
david.yates@dexus.com louise.murray@dexus.com
[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: +61 2 9017 1100
Fax: +61 2 9017 1101
E-mail: ir@dexus.com
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)
