Dexus (ASX:DXS) sells six properties for AU$483M, de-risks FY23 profit

December 21, 2022 02:03 PM AEDT | By Sonal Goyal

Image source: © Pvl | Megapixl.com

What is the expected contribution of property sales to FY23 trading profit?

Dexus has sold two out of the six properties for proceeds of AU$145.6 million. This transaction is anticipated to contribute around AU$24 million in pre-tax trading profits across the financial year 2023 and 2024 (FY23 and FY24). The two properties are 20 Distribution Drive, Laverton, and 50% interest in the Australian Bragg Centre, Adelaide.

The Australian Bragg Centre was sold to Dexus Healthcare Property Fund for AU$102.5 million.

- 20 Distribution Drive is sold on a fund-through basis for AU$43.1 million.

- On 4 November 2022, the company settled the sale of 47 Acanthus Street, Darra, for AU$15.9 million. The sale reflects a 2.5% discount to the book value as of 30 June 2022.

- On 16 December 2022, 19 Stoddart Road, Prospect sale was settled for AU$76.2 million, reflecting a discount of 2.5% to book value.

- Dexus has exchanged contracts to sell 8 Nicholson Street, Melbourne, for AU$213.7 million and 112 Cullen Avenue, Eagle Farm, for AU$31.9 million. Both transactions reflect a discount of 12.5% on book value as of 30 June 2022.

- The 8 Nicholson Street sale is expected to be settled in July 2023, and the 112 Cullen Avenue sale is expected to be settled in January 2023.

Valuation of Dexus portfolio

Dexus shared on 16 December 2022 that the company has 183 assets, including 143 industrial properties and 34 office properties. The draft external independent valuations have reported an estimated decrease of approximately AU$322 million on prior book values for the six months to 31 December 2022.

Management commentary

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