Dexus increases FY profit

Property group soars after revaluation investment properties, reversal of impairment.

Dexus Property Group (DXS) has flagged a modest percent lift in earnings for the upcoming financial year after delivering a 280% increase in statutory profit to $514 million profit for 2013.

The result was boosted by a $218 million revaluation of investment properties and a reversal of an impairment of management rights of $20.5 million.

Funds from operations for the full year matched its guidance at 7.75 cents per security and was just off analyst forecasts for 7.9 cents.

Operating income from office rents was up 9.5% to $317 million, with income from industrial property flat.

During the year Dexus engaged in $2.9 billion in transactions, divesting offshore holdings and investing $1.1 billion in the Australian market.

Chief executive officer Darren Steinberg said, "in a tough operating environment, we delivered on all of our strategic objectives which we announced in August 2012".

“We have refocused the business, concentrating on maximising value, improving earnings and investing in our target markets," he said.

Distributions for the year were $6 per security, up 12% and payable on August 30.

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