Shares of Dexus (ASX: DXS) experienced a significant intraday decline of 1.81% to AU$6.46 apiece, marking the steepest drop since 25 October 2023.
Asset Sale Details
The real estate firm has announced the sale of three assets, fetching a combined total of AU$383.2 million (approximately $254.60 million USD). Among these assets is Dexus Office Partnership's 50% stake in 5 Martin Place located in Sydney, sold for AU$296.2 million.
Portfolio Valuation Decline
In a recent update, Dexus reported a 9% decrease in portfolio valuations for the six months ending June. This decline reflects broader market challenges impacting the real estate sector.
Utilisation of Sale Proceeds
Dexus plans to utilise the proceeds from the asset sale primarily to repay existing debt obligations, aiming to strengthen its financial position amidst market volatility and valuation adjustments.
Market Performance
Year-to-date, Dexus shares have faced considerable pressure, down 12% as of the last trading session. The market reaction to the asset sale and the overall portfolio valuation decline underscores investor caution and the challenges facing the real estate industry amid economic uncertainties.
The sale of assets and the strategic deployment of proceeds are part of Dexus's efforts to navigate current market conditions and optimise its portfolio for long-term sustainability.