Property management group Dexus has seen a strong 12 month return, despite occupancy slipping marginally during the March quarter.
Dexus today said it delivered a 12.1 per cent unlevered total return for the year through to the end of March across its office partnership. The levered return during the same period was 19 per cent.
Dexus said its average occupancy by income had slipped slightly during the March quarter, down to 94.6 per cent from 95 per cent at the end of December.
Occupancy by area had also decreased slightly during the three months to March 31, down to 94.5 per cent from 95.2 per cent during the December quarter.
Occupancy decreased mainly due to the NSW Government vacating 130 George St Parramatta.
"Continued positive leasing momentum for space in core A-grade properties in Sydney and Melbourne has driven leasing volumes across our portfolio," Dexus office and industrial executive general manager Kevin George said.
"Pleasingly, net absorption for east coast CBD office space reached a four-year high in the 2015 March quarter with Sydney, Melbourne and Brisbane recording an increase in occupied stock," he said.
Investors were pleased with the results, sending Dexus shares 0.93 per cent higher to $7.60 against a benchmark gain of 1.22 per cent.