By a staff reporter
Dexus Property Group Ltd has flagged a modest lift in earnings for the upcoming financial year after delivering a 280 per cent increase in statutory profit to $514 million profit for 2013.
Investors were unimpressed. At 1205 AEST, Dexus shares slipped 1.22 per cent to $1.0125 against a benchmark S&P/ASX 200 index rise of 0.09 per cent.
The result was boosted by a $218 million revaluation of investment properties and a reversal of an impairment of management rights of $20.5 million.
Operating income from office rents was up 9.5 per cent to $317 million, with income from industrial property flat.
During the year Dexus engaged in $2.9 billion in transactions, divesting offshore holdings and investing $1.1 billion in the Australian market.
Chief executive officer Darren Steinberg said, "in a tough operating environment, we delivered on all of our strategic objectives which we announced in August 2012".
“We have refocused the business, concentrating on maximising value, improving earnings and investing in our target markets," he said.
Distributions for the year were $6 per security, up 12 per cent and payable on August 30.
Dexus prepares for possible CBA property fund bid
The group is seeking a major backer for a potential $3 billion all-scrip bid for the Commonwealth Bank's listed office landlord, The Australian reported.
According to the newspaper, Dexus has made an informal offer for the Commonwealth Property Office Fund but needs support from a new or existing investor for the deal to go ahead.
The group has engaged investment banks Citigroup and JPMorgan as advisers, and analysts estimate any offer for the company would be between $1.23 and $1.30 per share, The Australian reported.
Dexus last month acquired a 14.9 per cent stake in the fund.