By a staff reporter
Dexus Property Group Ltd has announced it expects a lift in earnings for the 2014 financial year following strong independent valuations.
In a statement to the Australian Securities Exchange, Dexus said it expected a 5.2 per cent increase in earnings in 2014 compared to its forecasts for the previous year.
Chief executive officer Darren Steinberg said the group expected to pay 8.15 cents per security for the year ending June 30 2014, a 5.2 per cent increase on 2013 estimates.
The group said property valuations for the quarter to June 30 had seen a 4.4 per cent increase of $58 million on prior book values.
“The uplift in independent valuations has been driven by our proactive approach to leasing which has delivered results across both office and industrial properties in an uncertain and challenging market," chief executive officer Darren Steinberg said.
“This latest round of independent valuations provides further evidence of cap rate compression in quality properties that have income security and sound fundamentals.
Mr Steinberg said the group expected continued growth despite uncertainty in the market due to the current economic environment.
"Our portfolio is well positioned for solid growth underpinned by strong like for-like office income growth and an expected increase in trading profits," he said.