Australia's Dexus annual loss widens as high rates wipe off property value (updated)

Dexus

20/08/2024 24:47

(Adds further details and background in paragraphs 3-5)
       Aug 20 (Reuters) - Australia's Dexus  DXS.AX  posted a
bigger-than-expected annual loss on Tuesday, as high interest
rates wiped off around A$1.9 billion ($1.28 billion) in value of
its property portfolio.
    Dexus, one of Australia's largest office landlords, posted
statutory net loss attributable of A$1.58 billion for the year
ended June 30, much wider than a Visible Alpha consensus of
A$488.5 million loss and prior year's A$752.7 million loss.
    Decade-high interest rates have pressured property
valuations as growing demand for home working and e-commerce
lead tenants to reconsider floor space, with high borrowing
costs reducing building values and making it costlier to service
debt costs.
    Dexus' portfolio valuation declined around 13% on prior book
values over fiscal 2024. Valuation of its office portfolio -
more than two-thirds of the total portfolio - declined more than
15% during the year.
    Its adjusted funds from operations, which excludes valuation
changes and one-off charges, also slipped 7% to A$516.3 million,
falling slightly short of consensus of A$532.2 million.
    Dexus has also earmarked assets worth A$2 billion for sale
over the next three years to "further enhance the quality of our
portfolio", it said.


($1 = 1.4852 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Mohammed
Safi Shamsi and Rashmi Aich)
 ((Shivangi.Lahiri@thomsonreuters.com;))