OPINION
Dexus Group (DXS) $6.72
DXS has struggled over recent years, although its large dividends have helped cushion the decline – it is forecast to yield ~8% over the next 12-months. There remains plenty of work to do at DXS as it continues the AMP integration while grappling with mixed demand for office, but a turn in the property market can only help the process. Read moreDexus Group (DXS) $6.52
It’s not hard to comprehend the weakness in DXS, commercial property is a relatively illiquid asset class, making marked-to-market valuations estimates at best, with current private sector transactions suggesting some companies are being optimistic around their valuations, which throws into question Dexus' and its peers NTA, in real terms. Read moreDexus (DXS) $7.76
DXS -3.12%: Shares fell today as they reported FY23 results, and offered guidance for the year ahead. The key to any result is around determining what is known information versus what is new information. Read moreDexus Group (DXS) $8.00
Australia’s largest office landlord Dexus (DXS) trades at a large discount to the value of its underlying assets. Many are clearly questioning whether or not the stock is cheap enough considering the uncertainties that lie ahead for the office market. We believe the answer is yes, and we are holders of the stock in our Active Income Portfolio, having purchased around $8 ahead of the last distribution. The stocks currently trading on an attractive Price/Book Valuation of 0.67x (most recent quarter) – Dexus (DXS) Financials on MM site. Read moreDexus (DXS) $8.19
DXS +1.18%: Completed external revaluations on 175 of their 182 assets, comprising 32 office properties and 143 industrial properties with the draft results showing a decline of 6% for the 6 months to June 30, which is well short of the 30% fall implied by its current price-to-book discount. Office assets were cut 7.7% to around $11.5bn while Industrial assets saw a more tepid re-rate lower. Not great but a better result than many thought we suspect. Read moreDexus (DXS) $8.16
DXS +1.12%: One of our contrarian ‘income’ calls has been around property – and the deep value that’s on offer in a sector that is priced for some fairly dire outcomes, with Office front and centre. Read moreDexus (DXS) $8.50
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. Read moreDexus Ltd (DXS) $8.24
DXS is another holding in our Active Income Portfolio, people remain scared of property and other cyclical sectors however we think much of this pain is now priced in and we should be focussing our attention on identifying the opportunities that others will gravitate to over the year ahead. Many are clearly questioning whether or not the stock is cheap enough above $8 considering the uncertainties that lie ahead for the office market, while we believe the answer is yes (it’s trading nearly 40% below its net tangible assets) another leg lower cannot be ruled out with the RBA still hiking. • We like DXS into weakness but we’re not seeing any hurry to chase for our Growth Portfolio at this stage. Read moreTrade Alert – Income Portfolio
MM are buying DXS Read more
