Australia's Dexus gains; Citi says A$700 mln asset sale boosts divestment drive
BUZZ-Australia's Dexus gains; Citi says A$700 mln asset sale boosts divestment drive Updates
** Shares of Australian property group Dexus DXS.AX rise as much 0.7% to A$5.980
** Citi sees DXS' sale of its Brisbane office tower 480 Queen Street as a relatively positive update, despite maintaining a cautious view on the office sector
** DXS, on Thursday, agreed to sell the tower for A$700 million ($491.89 million)
** Brokerage says sale price is in line with the asset's June-26 valuation and represents a 4% discount to its December 2025 valuation
** Adds asset sales announced this week have exceeded A$1.4 bln and, combined with about A$1.4 bln of divestments progressed through December, leave Dexus well ahead of its FY25-FY27 divestment target program
** Citi stays cautious on DXS due to near-term headwinds from APAC-related losses and elevated finance costs
** Shares down nearly 14% YTD
($1 = 1.4231 Australian dollars)
(Reporting by Rajasik Mukherjee in Bengaluru)
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