Dexus is Australia’s largest office landlord, and while there is significant conjecture around the future of office, we believe this uncertainty is more than captured in the price. They delivered a solid, ‘less bad’ than expected, result in February, although the stock hasn’t yet embraced the numbers. Guidance for the full year was unchanged despite the stronger 1H, with a flagged FY24 dividend of 48 cps, which puts DXS on a yield of ~6.2%.
- We can see DXS testing $9 through 2024, aided by its strong dividend in an environment of declining interest rates and a less bad outcome in Office – MM is long DXS in our Active Income Portfolio.
MM continues to like DXS as an Income stock through 2024
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