Full Year 2024 Dexus Convenience Retail REIT Earnings Call Transcript
Key Points
- Dexus Convenience Retail REIT (ASX:DXC) delivered FFO and distribution at the upper end of their guidance range, showcasing resilient income backed by high-quality tenant covenants.
- The company executed $23 million in divestments to support the fund's capital position, maintaining gearing around the midpoint of their target range.
- Post-balance date, contracts were exchanged to sell two assets at a premium to book values, reducing pro forma gearing by an additional 50 basis points.
- 89% of the portfolio is zoned for high-value uses, providing flexibility for future redevelopment opportunities.
- The company maintains a carbon-neutral position across its controlled assets and actively engages with tenants on ESG initiatives, including solar and electric vehicle charging projects.
- NTA per security decreased by 5.1% to $3.56, primarily due to asset valuation declines.
- The Glass House Mountains project is delayed by six months, although it has no financial impact, it affects the timeline for potential returns.
- Property valuations decreased by 3.1% over the 12-month period, reflecting challenges in the current market environment.
- The company faces continued increases in interest expenses, impacting overall financial performance.
- FY25 guidance indicates a decrease in FFO and distributions per security due to dilution from asset sales.
Thank you and good morning, everyone, joining me on the call. I'm Jason Weate, Fund Manager of Dexus Convenience Retail REIT, and I'm pleased to be delivering the 2024 full year results. I'd like to start proceedings by acknowledging the traditional custodians across the many lands on which we operate across Australia. We pay our respects to their elders past and present and remain committed to supporting reconciliation across our business.
Today, I will touch on DXC's investment proposition, key highlights for the period, the financial outcomes as well as trends we are seeing in the broader market. DXC's investment proposition is to provide investors with defensive income with embedded growth through the cycle. We deliver this firstly by enhancing portfolio metrics that deliver high income certainty and growth. Secondly, we maintain a prudent capital structure having regard to the broader macroeconomic environment and property valuation cycle. And thirdly, we take an active but disciplined approach to portfolio management, including the
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