This article is from the Australian Property Journal archive
SHAREHOLDERS have hit Dexus with a second strike at its annual general meeting, while the office towers owner believes real asset transaction markets are strengthening which is likely to support asset value discovery.
Dexus shareholders voted 25.7% against the adoption of the remuneration report after investors voiced displeasure at its $3 million long-term incentive plan for new CEO Ross Du Vernet, which it dumped last week.
Dexus received a first strike last year in response to pay practices.
The vote for a board spill following the second strike yesterday was comfortably defeated, knocked down by more than 96% of proxy votes.
Australia’s largest office landlord, Dexus posted a massive $1.58 billion statutory loss for FY24, reflecting the ongoing devaluation of office assets in the wake of structural headwinds and high interest rates.
Du Vernet said yesterday in a quarterly update there are “now clear signs that real asset transaction markets are strengthening”.
“Deal flow in both real estate and infrastructure markets is up significantly compared to this time last year as investors respond to an apparent peaking of the global interest rate cycle.
“These trends should support improved liquidity and greater asset value discovery in the year ahead.”
Investment volumes across Australia’s CBD office markets are up 21% over 2024, according to Knight Frank, moving in line with improved sentiments across the beleaguered sector.
“We are well positioned with a new sector aligned operating model to unlock opportunities across real assets. Despite near-term headwinds, we are focused on driving sustainable growth for security holders over the long-term,” Du Vernet said.
Dexus reiterated its expectation for adjusted funds from operations of circa 44.5 to 45.5c per security and distributions of circa 37.0c per security.
