Dexus Property Group has lifted its full-year funds from operations (FFO) guidance, and now expects to come in 7.6 per cent stronger than in the previous corresponding period.
Dexus expects FFO to increase to 8.34 cents per security largely as a result of the completion of its joint takeover of CPA. This would reflect a 0.6 per cent increase on prior guidance.
The group expects its distribution to increase to 6.26 cents per security for the 12 months ending June 30.
The completion of the joint takeover of CPA with Canada Pension Plan Investment Board (CPPIB) has increased the Dexus' total funds under management to $17.6bn, including an office portfolio valued at $11.7bn.
Dexus chief executive Darren Steinberg said he was optimistic about the group's outlook over the next 12 months.
"Lead indicators are pointing to improving office market conditions including increased business confidence in response to low interest rates, a strengthening in employment growth and a migration of tenants to CBD markets," he said.