DXS -1.64%: A better-than-expected result from Australia’s largest office landlord this morning with 1H24 adjusted funds from operations (AFFO’s) of 33.9cps around 5% ahead of consensus expectations while the dividend of 26.7cps was solid. Their guidance for the full year was unchanged despite the stronger 1H, with management guiding to FY24 dividend per share (DPS) of 48cps and AFFOps to be broadly in line with FY23, consistent with previous guidance. This puts DXS on a yield of 6.14%.
Office occupancy nationally was 94.5% down from 95.9% in June, while average incentives improved marginally from 30.0% to 29.4%. The NTA dropped by 7.7% to $10.04ps, putting the stock on a 22% discount to assets, showing a lot of negativity is still priced in to DXS and the sector more broadly.
- The 1H result was above expectations with full-year guidance in line.
MM is bullish DXS and long in the Active Income Portfolio
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