DXS +2.41%: A beat and bump today for the much-maligned office REIT, with 1H23 Funds From Operations (FFO) of $389m above consensus of $367m while they increased FY23 distribution guidance to be at the top end of the previously flagged range of 51-51.5c. Occupancy levels have held up in Office (95.3% versus 95.6% in FY22) and remain strong in Industrial (97.4%), gearing at 25.6% is below their targeted 30-40% range while external revaluations of property assets were fairly benign, resulting in a 27c or 2.2% decrease in net tangible asset (NTA) per security during the period, which sits at $12.01 as at 31 December – or ~40% above today’s closing price. Priced at an Est PE of 12.2x and yielding 6%, we are happy holders of DXS in our Active Income Portfolio.
MM remains long & bullish DXS
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