Dexus’ FY22 December-half result proved a mixed bag with misses and beats on Credit Suisse forecasts.
Funds from operations outpaced the broker thanks to stronger property and co-investment income performances, low interest expense and good management operations. But elevated overheads, capital expenditure and weak trading profits disappointed.
Overall, the broker notes portfolio fundamentals improved and says Dexus plans to increase the development pipeline.
FY22 FFOPS rises 0.5% and FY23 rises 4.6%
Outperform rating retained. Target price rises to $11.48 from $11.26.
Sector: Real Estate.
Target price is $11.48.Current Price is $10.43. Difference: $1.05 – (brackets indicate current price is over target). If DXS meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
