DEXUS Property has confirmed its expectations of delivering an 8.5 per cent growth in funds from operation for the 2015 year, thanks to positive momentum for office and industrial property leasing enquiry and activity, particularly in Sydney and Melbourne.
At its quarterly investor update, chief executive Darren Steinberg said the guidance for the fund from operations to June 20 next year remains unchanged at 9.84¢ per security, reflecting an 8.5 per cent increase from the 9.07¢ paid to June 2104.
DEXUS is expected to deliver a distribution of 6.79¢ per security, also reflecting an 8.5 per cent increase from 2014.
Mr Steinberg said the office tower at 201 Elizabeth Street, Sydney has been withdrawn from the market. It was earmarked as a non-core asset that could be sold to a residential developer.
DEXUS executive general manager of office and industrial Kevin George said the group had been able to reduce incentives from June 2014 in line with its strategy to hold or pull back on incentives in those properties that have good momentum and high occupancy.
"Another key positive has been the growth in leasing inquiry and activity from corporates in the financial services sector, and we expect this to translate into genuine demand and leasing in the Sydney office market over the course of 2015," Mr George said.
