Dexus Could Lose Place in ASX-50 Index -- Market Talk

Dow Jones11-04

0025 GMT - Dexus's days in the ASX-50 index could be numbered, reckons Morgan Stanley. The office landlord may be replaced by CAR Group. MS retains an underperform call on Dexus, citing the outlook for its cash earnings over the next 2-3 years as its key concern. "Despite Dexus's efforts in evolving its business to be more of a fund manager, circa 60% of income still comes from Office rent, and the leasing outlook is not great," analyst Simon Chan says. MS says incentives are expected to remain elevated in the medium term. Also, Dexus's hedged interest rate, which covers 80% of its borrowings in FY 2026, is expected to rise by some 80 basis points. That will lead to more headwinds to funds from operations, MS says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

November 03, 2024 19:25 ET (00:25 GMT)

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MS says incentives are expected to remain elevated in the medium term. Also, Dexus's hedged interest rate, which covers 80% of its borrowings in FY 2026, is expected to rise by some 80 basis points. That will lead to more headwinds to funds from operations, MS says. 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The office landlord may be replaced by CAR Group. MS retains an underperform call on Dexus, citing the outlook ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7510","symbol_name":"REITs概念","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2480531151","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480531151","pubTimestamp":1730679900,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0025 GMT - Dexus's days in the ASX-50 index could be numbered, reckons Morgan Stanley. The office landlord may be replaced by CAR Group. MS retains an underperform call on Dexus, citing the outlook for its cash earnings over the next 2-3 years as its key concern. \"Despite Dexus's efforts in evolving its business to be more of a fund manager, circa 60% of income still comes from Office rent, and the leasing outlook is not great,\" analyst Simon Chan says. MS says incentives are expected to remain elevated in the medium term. Also, Dexus's hedged interest rate, which covers 80% of its borrowings in FY 2026, is expected to rise by some 80 basis points. That will lead to more headwinds to funds from operations, MS says. 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