Dexus Property Group says it expects continued momentum in the nation's property hotspots, Sydney and Melbourne, to continue to boost its bottom line after posting a strong lift in full-year profit.
In the year to June 30, Dexus posted a net profit of $618.7m, a 52.2 per cent increase on the previous year's $406.6m.
Revenue from ordinary activities was $858.9m, a 22.7 per cent increase on the previous year.
Funds from operations (FFO) rose 21.9 per cent over the year to $544.5m. FFO per security came to 59.5c, up from 54.4c a year earlier, and Dexus expects growth of between 5.5 and 6 per cent in funds from operations per security in fiscal 2016.
The group will pay a final dividend of 21.36c on August 31. Combined with the interim dividend, Dexus' total dividend payment for the year comes to 41.04c.
Dexus chief executive Darren Steinberg lauded the group's performance during fiscal 2015 in what he described as "a market characterised by mixed economic news, both domestically and globally".
"Our performance during the year met or exceeded all of our financial objectives, delivering on upgraded guidance for FFO and distribution per security, both up 9.3 per cent on the prior year."
Looking ahead to fiscal 2016, Mr Steinberg said Dexus expects leasing momentum to continue in Sydney and Melbourne, despite the subdued economic outlook for the year.
"Investment demand is expected to remain positive for high quality office properties in these markets, providing upside for property values," he said.