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. While we maintain our bearish outlook on bond yields through correlation, we believe it’s worth carrying some property exposure, although it’s been tough.
- We hold DXS in our Active Income Portfolio, the stock pays an attractive yield but we are unlikely to increase our 4% exposure at this stage.
MM remains long and cautiously bullish toward DXS
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