We looked at DXS earlier in the month after its positive reaction to a solid 1H result – Here. We liked the plan to buy back up to 10% of the stock with the shares trading ~20% below its NTA plus its healthy ~6% yield, but its exposure to office space is not ideal if we see an increase in white collar unemployment on the back of AI implementation. After nearly halving in recent years, DXS is now trading at historically low levels. While occupancy remains soft at ~85% across its core markets, we see limited downside from here, though time will tell, and we like to buy companies that are delivering operationally but are being dragged lower by a weak market backdrop.
- We like DXS around $6 but prefer the more diversified property exposure provided by MGR.
MM is bullish towards DXS around $6
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