Covid-19 Uncertainty for Dexus Tenants

ASX-listed landlord Dexus has withdrawn guidance as Covid-19 uncertainty clouds the outlook for the group's massive tenant base.

In a statement to the ASX, Dexus said it is assessing the impact of the coronavirus on its operating environment and considering the assistance it may need to provide their tenant base.

The move comes in anticipation of the government’s rent relief announcement following measures to slow Covid-19 across the country.

Stock prices for the company have slumped from a peak of $13.42 on 20 February to $9.22 on 26 March.

Dexus chief executive Darren Steinberg said they had to look after tenants to ensure the portfolio was well-placed to perform when this event passes.

“As custodians of many buildings across Australia’s major cities, it is incumbent on us to protect our tenant base, particularly the SMEs and retailers who support our office towers and shopping precincts and are bearing the brunt of this evolving global situation.”

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“We have adopted internal business continuity measures to minimise the disruption to our business and have implemented government guidelines to reduce the spread of Covid-19 at our properties,” Steinberg said.

The ASX-listed company reported their gearing look-though at 25.5 per cent—their debt was 35 per cent bank and 65 per cent from capital markets at just over seven years in duration.

Dexus also has $1.3 billion of cash and undrawn bank facilities available with about $400 million of debt maturing in late FY21.

Individual assets for the company were considered safe with the company’s debt covenant relating to gearing and interest cover levels.

Earlier this year the company was performed as expected however the board decided to withdraw guidance and assumptions in line with Vicinity Centres and Scentre Group ahead of the expected impact of the Covid-19 outbreak.