Dexus is the largest office landlord in the country and is clearly suffering at the hands of the WFH (work from home) phenomenon, however to MM, the eventual reality will be that the office remains the primary place of work while greater flexibility will be offered around the edges. This will likely have a negative impact on the amount of floor space taken by tenants, but it’s unlikely to be at the extreme that is currently being priced by the market. This is a stock we believe is well positioned to enjoy a post COVID recovery and its unlikely to be “fully-owned” like Afterpay (APT) etc. Remember we don’t have to be invested in just banks and resources to enjoy an economic recovery, other stocks / sectors will ultimately play some catch up.
MM is bullish DXS targeting ~30% upside.
Add To Hit List
