Citi sees persisting headwinds for Dexus despite airport buyout, maintains 'sell'

Dexus Industria REIT

24/09/2021 24:22

** Citi says real estate firm Dexus'  DXS.AX  buyout of
Perth's Jandakot airport highlights active diversification of
exposure away from office
    ** On Thursday, co teamed up with APN Industria REIT
 ADI.AX  to buy the airport for A$1.3 bln ($948.74 mln)
    ** Brokerage says office rent still contributes a majority
of the income for DXS where structural headwinds persist,
retains 'sell' rating 
    ** Citi also flags near-term risks of income and asset value
impacts from COVID-19
    ** "We believe the transaction further increases the
recently expanding funds management pipeline" - Citi
    

($1 = 1.3702 Australian dollars)

 (Reporting by Arundhati Dutta in Bengaluru)
 ((Arundhati.Dutta@thomsonreuters.com;))