Dexus (ASX:DXS) share price slips on asset divestment

The Dexus Property Group (ASX: DXS) share price is slipping today following the sale of one of its properties. Here’s what the company said.
The post Dexus (ASX:DXS) share price slips on asset divestment appeared first on The Motley Fool Australia. –

Investor watching a share price chart falling

The Dexus Property Group (ASX: DXS) share price is slipping today following the sale of one of its properties. In early afternoon trade, the leading Australian real estate group’s shares are fetching for $9.56, down 1.39%.

What did Dexus announce?

Investors are selling off their positions in Dexus shares after the company updated the market with its latest asset divestment.

According to its release, Dexus advised it has sold its office tower located at 10 Eagle Street in Brisbane to Marquette Properties. The conditional contracts were exchanged between both parties on 1 April 2021. The asset is owned by a subsidiary, Dexus Office Partnership, which holds a 50% interest in the building.

Built in 1978, the office tower comprises of 27,800 square meters over 34 levels, hosting A-grade offices. Situated in the heart of the Brisbane’s ‘Golden Triangle’, the property retained a 92% occupancy rate with a WALE of 2.9 years. WALE refers to a common commercial property term as ‘weighted average lease expiry’. Key customers in the building include AEMO, Wilson Parking, and Accenture.

The sale will realise proceeds of $285 million before transaction costs, and will be used to repay Dexus’ outstanding debt. Settlement is expected to occur sometime in May 2021.

Management commentary

Dexus chief investment officer Ross Du Vernet commented:

This transaction continues our asset recycling strategy, realising value for both Dexus and our Dexus Office Partner while reducing our exposure to the Brisbane market. It also provides us with an excellent opportunity to focus our leasing, asset management and development capabilities on advancing our city-shaping development project at Waterfront Brisbane.

Marquette managing director Toby Lewis added:

As a Brisbane-based and focused investment firm we are thrilled to be acquiring one of Australia’s best known office towers. We are acquiring a great asset with an excellent tenancy profile due to Dexus’s best-in-class management. Despite the ongoing long-term uncertainty associated with the COVID-19 pandemic, we have enabled more than 150 Australian families to invest in 10 Eagle Street and look forward to delivering strong returns as Brisbane continues to grow as a city and a city to invest in.

Dexus share price summary

The Dexus share price has gained around 6% over the past year, but is relatively flat since the beginning of 2021. The company’s shares reached a 52-week high of $10.24 last June, before wobbling for the remaining period.

At current valuations, Dexus presides a market capitalisation of roughly $10.2 billion, with 1.07 billion shares outstanding.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Dexus (ASX:DXS) share price slips on asset divestment appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!