DXS - Dexus Property Trust

[nulla nulla]

As a long term holder,I've done well outta this one.Rising interest rates might finally pop that toppy share chart,once and for all,though.I notice,the Fundies coughed up all the dough for their entitlement in the recent SPP,so I'm tempted to roll the dice with a $15,000 punt in the crumbs left over for the mums and dads....5.18% yield...mmmm,that's kinda tempting,but what about a 17% PE ratio? REIT's ain't cheap in this market.

Sometimes it comes back to "where you see it going". The insto's snapped up the discounted allocation at $7.32. The market then pushed the market price down to this level, however demand pushed the share price back up. At one point you could have picked up a full $15,000 worth at a market price of $7.28 and been ahead of the spp offer including brokerage.

Personally I will be applying for the $15,000 allocation and hope they decide to fill all bids. $7.32 for a share that was recently $8.00+ with prospects of future growth seems like a reasonable investment.

 

[nulla nulla]

Dexus jumped almost 3% yesterday to close at an inter-day high of $7.81. This is pretty good for a share that did an institutional capital raising recently at $7.32 and is still in the process of raising further capital from retail shareholders entitled to participate, also at $7.32.



No doubt participating retail share holders will hope that there is no scaling back and that Dexus elects to use all the take-up offers to further reduce debt and perhaps acquire a few more properties. Dexus is also due to announce a dividend of around $0.20 per share in the next four or so weeks. Hopefully, for holders, the potential Greek default, which saw the Dow Jones drop 1% overnight, won't wipe out all of yesterdays gains.

 

[nulla nulla]

Looks like the shorters read the latest release and decided that it might be a good idea to close out their positions. It will be interesting to see whether Dexus can break through the resistance level of $7.88 or will get pushed back to the support levels of $7.05 ish.



From memory Dexus did a 1 for 5 consolidation a while back in an effort to discourage the day traders and make the share more attractive to the big investors. This probably worked in respect of the big investors getting on the books but I suspect those evil day traders are happily trading the recent spreads.

 

[notting]

Dexus Property Group offering to buy Investa Office Fund in a deal valuing the real estate investment trust at about $2.5 billion.

Dexus offered 0.424 of its securities and about 82 cents in cash for each IOF share, implying an offer value of $4.11 per share, the target said in a statement this morning.

The board intends to unanimously recommend the indicative, non-binding offer, according to the statement. (Well of course it does!)

IOF shares are 1.6 per cent higher this morning, but still below the offer price at $3.89. Dexus shares are also ahead, by 2.3 per cent to $7.83.

And the shorters say. "Hail to the Lord, there is a God after all. Thank you thank you!"

God look at the dividends over the last 12 months compared to the previous ~ priming the pump.

DXS buying at the top? Me thinks so.

 

[skc]

And the shorters say. "Hail to the Lord, there is a God after all. Thank you thank you!"

God look at the dividends over the last 12 months compared to the previous ~ priming the pump.

DXS buying at the top? Me thinks so.

80% script anyway so one overpriced paper for another...

 

[nulla nulla]

And the shorters say. "Hail to the Lord, there is a God after all. Thank you thank you!"

God look at the dividends over the last 12 months compared to the previous ~ priming the pump.

DXS buying at the top? Me thinks so.

Actually I think it is more like further consolidation within the A-REIT Sector. Most of the larger companies making up the sector know that they are takeover targets particularly with the low Australian Dollar, their low leverage levels and the yields they are generating. FDC and NVN merged (which has ended up looking like a NVN take over of FDC) to make VCX. Dexus expanded previously taking up a chunk of CPA, with GPT taking the balance and now Dexus has made a bid for IOF at the invitation of the independent IOF board members.

IOF has been on the market for some time due to the majority share holder wanting to quit their holding. This has not stopped the share price fluctuating in value every time their is an overall rise or fall in the markets, however trading IOF has been tight as the parcels have been relatively small.

Dexus would like be looking at picking up the whole property parcel then offloading non "A" grade holdings, bringing in equity partners for some properties, and retiring duplicate management. With both companies having low leverage rates their would be a lot of wriggle room in their financing without them losing the ability to maintain dividends etc.

80% script anyway so one overpriced paper for another...

The figures in "nottings" quote must have been just after open when the announcement was released and both companies went into a trading halt. Dexus subsequently slid after re-open to close the day at $7.73 while IOF climbed to $4.15 before closing at $4.11. It is fairly normal for the share price of the bidder company to fall and the share price of the target company to go above the offer price. No doubt some investors pushed the price of IOF a little higher hoping someone like GPT would step in like they did when Dexus bid for CPA.

Both companies were triggered as a buy on Friday when IOF hit $3.81 and Dexus hit $7.62. The return on the sale of IOF at $4.15 was $0.34 or 8.92% (I was originally targeting $3.91 for IOF until it went into the trading halt). I missed the opportunity to unload Dexus at $7.80 on re-open and the sale is still in the queue. If Dexus fall back to the low $7.60's I will top up.

 

[notting]

Actually I think it is more like further consolidation within the A-REIT Sector. Most of the larger companies making up the sector know that they are takeover targets particularly with the low Australian Dollar, their low leverage levels and the yields they are generating.

It would have made more sense if it were an international banking on a higher AU in about 50 years time.

As SKC points out is largely script bid so to all appearances seems less leveraged. However if the Chinese investment in new housing commission flats with lipstick continues to wain. Any further leverage in this sector at current levels is not going to have a happy ending.

Not surprising they are all trying to sell themselves.

 

[notting]

They be reading me blog.

http://www.afr.com/real-estate/melbourne-brisbane-apartments-tipped-for-rising-vacancy-and-reduced-rents-20151215-glnqel

 

[nulla nulla]

There hasn't been a lot of recent activity in this thread so I though it may be worthwhile throwing up a long term chart as well as a table comparing the share information over the past three or so years.

Disclaimer: The table information is taken from the A-REIT Tables posted previously. Accordingly if there were any errors in those tables then they have been repeated in this table.

 

[dyna]

Yet another share placement.A biggie this time.Over a $A billion in 2 parts before June 30 and a last one,I think,in December,probably to beat Labor's Jan.2020 change to the current capital gains tax 50% discount.Instos filled their $900 Million book build in no time at all,this week.Another $50 mill(or more?) has been set aside for the mums and dads in an SPP.Once again,I'll be following the smart money .$15,000 max allowed.Terrific long term capital gain for patient shareholders,with this one and distribution growth is up over 5% for the year.And no need to worry about the future of franking credits,here.There ain't none.

 

[divs4ever]

18 July 2022
AWOF unitholder vote outcome
Dexus notes today’s announcement by AMP Limited that AMP Capital Wholesale Office Fund (AWOF or the
Fund) unitholders have voted in favour of a change of trustee of the Fund.
The initial proposal to replace the trustee of the Fund was received in 2021, prior to Dexus entering into a Share
Sale and Purchase Agreement (“SPA”) on 27 April 2022 with Collimate Capital Limited (“Collimate”), a wholly
owned subsidiary of AMP Limited, to acquire Collimate’s real estate and domestic infrastructure equity business
(“Transaction”)1.
The structure and pricing of the SPA were agreed having regard to the final assets under management (“AUM”)
that will be transitioned to Dexus. As a result of AWOF exiting the Collimate platform, the earn out amount
payable under the SPA will reduce to a maximum of approximately $75 million2, taking the maximum potential
price to approximately $325 million including the $250 million upfront cash payment. The maximum potential
AUM that will transition across to Dexus is now $20.2 billion. Further information will be provided as Dexus and
Collimate progress towards completion of the transaction.
In addition, Dexus will no longer acquire Collimate’s committed co-investment stakes in AWOF totalling circa
$270 million.
Dexus remains focused on completing the Transaction which positions it as a leading real asset manager, with
new capabilities and an expanded product offering, underpinned by our best practice governance and risk
management framework.
Subject to satisfaction of conditions precedent, Dexus expects the Transaction to complete during the second
half of CY22.
Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus Funds Management Limited

==================================================================

DYOR


i do not hold this share

but maybe i should crunch some numbers in case the market hammers this

 

[frugal.rock]

but maybe i should crunch some numbers in case the market hammers this

 

[Dona Ferentes]

“Dexus has demonstrated resilience in a challenging environment, with our portfolio maintaining strong occupancy and continuing to benefit from the flight to quality. Recycling assets and proactively managing capital has also enabled us to maintain a strong balance sheet.
“The macroeconomic environment remains challenging with rising interest rates, ongoing supply chain disruptions, a global energy crisis and geopolitical risks contributing to continued economic uncertainty. Higher interest rates will continue to impact our results in FY23.
“Barring unforeseen circumstances, Dexus has updated its guidance to deliver distributions of 51.0 - 51.5 cents per security for the 12 months ended 30 June 2023, reflecting the higher end of its previously stated guidance range."

Cap rates. Vacancy/ Occupancy rates. Interest rates. LVR rates. Payout rates. Council rates.
Ain't gonna get any easier.

 

[InsvestoBoy]

Cap rates. Vacancy/ Occupancy rates. Interest rates. LVR rates. Payout rates. Council rates.
Ain't gonna get any easier.

But they're all known knowns, right?

The question as always is what's been priced in.

 

[finicky]

Took a bite of DXS today, 500 @ 6.69
One of Greg Canavan's recs from a while back at a higher price then.
AGM addresses today guided 48c distribution for FY24
Nothing much to say about the chart.

DAILY

 

[dyna]

Today's DXS September 1/4 update indicates : Industrial property occupancy at nearly 100 % , while Office buildings were pretty full too, at 95 % . Just 3 properties outside the Sydney CBD account for the vacancies.
CEO Darren Steinberg stepping down sometime next year , after 11 years in that role.
S.P. closed at $ 6.70. Still not cheap enough for this cheapskate . Have to keep watching....

 

[Gretsch]

Got to a low of $6.48 today but I resisted buying. Reckon it could go lower.

 

[dyna]

Interesting article in today's AFR . Now trading 22 % below NTA ( S.P. closed today $ 6.55 ) but no bargain hunters about for DXS , it seems . Valuations continue to fall for past four 1/4 ' ers . The latest one , out this week : a whopping 11% or $ 1.3 Billion for this 30 th June quarter .

 

[barney]

Interesting article in today's AFR . Now trading 22 % below NTA ( S.P. closed today $ 6.55 ) but no bargain hunters about for DXS , it seems . Valuations continue to fall for past four 1/4 ' ers . The latest one , out this week : a whopping 11% or $ 1.3 Billion for this 30 th June quarter .

My now 95 year old man invested in Dexus property fund for many many years. He tried to get his "cash" out a few years back, but the Co said nah sorry, you can only take out what we think we can afford to give you due to current market "insecurity" (a pittance relative to his total held)

He again asked to get his money out a year or two back after the Fund started to perform poorly ...

Co said ok, you can take it out but you have to wait 6 months before we will give it to you ....

Just before the time of repayment ... Co sends a letter .... Nah sorry, we have decided you now have to wait 12 months before we can give you YOUR money back .... and we may or may not give you all your money back depending on how we are going financially (me paraphrasing of course)

Fast forward ... Dexus has gone to **** and my Old Man is now down about 40K on his original "small" investment.

They did offer him a withdrawal offer (after his investment had fallen +30%) ... but they requested he had to file a "hardship" claim form ... which required a Justice of the Peace and Witness signatures to prove he "needed" the money (ffs)

The final result/story is still pending because my 95 year old Man is still kicking! (Go Dad)

But in my humble view .... These guys are corporate criminals (and I told them so)

By all means trade their Shares and hopefully make a few bob if you can .....

But as a Company .... Id say as they are as close to criminal as you can get whilst remaining within the letter of the law!

Invest with caution!

 

[finicky]

Only a few cents below break even on this despite devaluations.
Complete novice in this sector and only bought on a Greg Canavan rec from fat tail investment advisory. However, neglected to say, a few months ago Greg dropped his rec and advised sell due his investment thesis losing its legs, viz: that interest rates and bond yields had peaked and would come down. He lost conviction on this.

Held and
Holding