DXC Provides Update on Additional Asset Sales and Portfolio Valuations

Dexus Convenience Retail REIT (ASX: DXC) provided an update on its recent asset sales and portfolio valuations as of June 30, 2023. DXC successfully divested three assets, generating a combined sale price of AU$15.4 million, representing a 4.0% average discount to the book values at the end of 2022. These sales align with DXC's strategic goals of fortifying the balance sheet, mitigating exposure to interest rate fluctuations, and reducing reliance on regional assets and outdated tank technology.

With these divestments, DXC has achieved total contracted sales of AU$40.8 million in FY23, equivalent to around 5% of the portfolio, at an average discount of 2.3% to prior book values. Additionally, 57 out of 105 assets were externally valued, resulting in an estimated net devaluation of approximately AU$23.7 million over the six-month period, representing a 2.9% decrease in prior book values. DXC's portfolio remains strong with secure cash flows, high-quality tenants, and stable occupancy above 99%. They continue assessing the portfolio for future investment opportunities with a target pro forma gearing of around 33%.

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