Morningstar upbeat on Australia's Dexus' quarterly update

Dexus

14/05/2024 19:48

** Analysts at Morningstar see Q3 update for Dexus  DXS.AX 
as positive, say shares are undervalued
    ** Asset manager posted last week its quarterly update,
reporting an office portfolio occupancy of 94.4% and industrial
portfolio of occupancy of 96.6%
    ** Brokerage says DXS' office has withstood broader
occupancy challenges in the office market
    ** "We expect rents to eventually improve with a stronger
return to office accelerated by transport infrastructure
upgrades close to Dexus assets" - Morningstar
    ** Adds headwinds faced by DXS' funds management business
should ease as interest rates peak and construction costs
stabilise
    ** Three of 10 analysts rate the stock "buy", four "hold"
and three "sell"; their median PT is A$8.08 – LSEG data
    ** Stock down 8.6% YTD, based on last close



 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))