DXS - Dexus Property Trust

barney said:

My now 95 year old man

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Apart from avoiding financial stress does he give out health and longevity tips?

barney said:

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!

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???

have heard about this stuff over the years in other ( non-ASX listed ) REIT investments

sad but far from unique

i thought maybe DXS was better run than that ( not that they were high priority on my shopping list )

may your dad out-live the current DXS management ( and get justice )

Sounds like he invested in an unlisted trust.
Unlisted property trust are generally non-liquid investments hence not obliged to give you your money back when you want out.
Some offer limited redemptions and the terms are found in the PDS.
DXS is the listed REIT.

Gretsch said:

Sounds like he invested in an unlisted trust.
Unlisted property trust are generally non-liquid investments hence not obliged to give you your money back when you want out.
Some offer limited redemptions and the terms are found in the PDS.
DXS is the listed REIT.

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Yeah I think that is correct @Gretsch . ie Unlisted Trust. I'm a simple Spec-guy so these Unlisted Trusts and REIT's are not something I'm familiar with.

I appreciate property values fluctuate, but my main beef has been the Companies continual run around and moving of goal posts (ie. They decide how much they will return .... and you have to wait 6 months for your money .... that changed into wait 12 months for your money! .... and they still decide if and how much they are prepared to return.

If they had let the Old Man remove his investment in the initial instance (even after making him wait over 6 or 12 months), he would be currently around $30K better off on an $80K investment.

As a side note, when I first rang the Co to discuss retrieving the balance of the investment, the "department" listed on their paperwork said ... not our job description, and referred me to another "department" .... That department also suggested, not our job description and referred me to guess where ..... Back to the original department, lol ...... After speaking to about 4 different people, someone (from one of the original two departments, lol ) eventually stood up to take some responsibility and "pretend" to give a crap.

The extent of that help was .... Further to already filling out all the withdrawal paperwork 7 months earlier (this was now the 2nd attempt to retrieve the investment), my elderly Parents now needed to fill out the appropriate "hardship" paperwork (which required a JP and witness to sign etc ), and the Co would then likely return their investment .... In other words, the earlier withdrawal paperwork from 7-8 months earlier was apparently not even being considered. These guys stall more than my old 1964 Falcon did when I was learning to use a clutch for the first time! ..... memories, lol.

Meanwhile the amount the Co had calculated/offered they "might" return assuming hardship was accepted, had conveniently dropped several more $thousand in the 2-3 weeks of negotiations. You cant win against the big boys!

In the end it was stressing the Old Man out too much, so we decided to just leave the money where it is rather than try and extract what appears an ever decreasing total. Hopefully the CEO and the boys on the Board can turn things around but I'm not real confident in their ability to be honest. If any of us ran a $1B company that lost over $300M in 12 months, I doubt we'd have a job for long.

Apologies for the rant, lol.

Moral of the story ... Invest in unlisted property trusts with caution.(Thats my Old Man going crook!)

@barney I sympathise with you it seems the world is going to the dogs and the way I see it, it's going to eventually collapse.
Anyway, hanging on to it would have been my suggestion too. Fact is, they have a responsibility and can't make up figures from thin air and fact 2 is commercial properties have been depressed lately because of the current rates. Will take a few years before they recover thou.

divs4ever said:

i thought maybe DXS was better run than that

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Mmmmmm, you have to wonder about these things .
CEO Steinberg's finally gone this year . Maybe he saw the devaluations a comin' and did an Alan Joyce before the Chairman and the board twigged . Maybe the Insto's on the share register whispered in his ear , too . " Get the golf bags out , Darren "
Incidentally , our guy was the highest remunerated executive in this country's R.E.I.T. industry !

I was reading an American stock site this morning and it mentioned that DXS was performing very poorly.

I've never been in to property trusts.

gg

Garpal Gumnut said:

I was reading an American stock site this morning and it mentioned that DXS was performing very poorly.

I've never been in to property trusts.

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I had a skirmish once with an unlisted one, and learned that lesson. Even harder to exit... Jamais plus.

Market Matters afternoon report:

• Dexus Raised to Overweight at Barrenjoey; PT A$8.25

Held
Holding

Holding

Dexus sells 2 office properties for pretty much book value : raising $ 300 million .

New book valuation out , today . Nothing too dramatic , down just 2 % over 170 + properties .

Maybe the worst of it ist over . Chart seems to be bottoming , by the look of it . S. P. steady at $ 6.71 .

I'll come back for a closer look at DXS around the $ 6.50 mark.

Dona Ferentes said:

I had a skirmish once with an unlisted one, and learned that lesson. Even harder to exit... Jamais plus.

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Indeed, same here luckily only 20k but had to do off market transfer etc due to structure change and inability to redeem