Dexus returns four times better than S&P property index

Shareholders in commercial property trust Dexus has been rewarded with returns nearly four times higher the average return of the S&P/ASX 200 Property Accumulation Index, the company has revealed at its AGM.

The company delivered a net profit to investors of $553 million for the 2011 financial year equating to a total shareholder return of 21.3% as measured by the S&P/ASX 200 Property Accumulation Index, compared with an average index return of 5.8%.

Investors were reminded that only one company with a market capitalisation over $1 billion delivered better returns than Dexus.

“Since June [2011] our total return has continued to outperform the index and we have beaten the index on a three-year rolling basis every year to 30 June since we stapled in 2004,” said Dexus chairman Chris Beare.

The top-performing company in the index was Charter Hall Office REIT, which delivered total shareholder returns of 42.1%. Charter Hall has also been the top performing A-REIT over the month of October, with its share price up nearly 17%. Over this period Dexus share price gains have been a more modest 3.7%.

Developer Australand returned shareholders 26.9% over the year, but was only admitted to the S&P Index in December 2010 while Charter Hall Retail REIT delivered an index return of 25.4% but has funds under management of less than $1 billion.

Australand shares are up 13% over October while Charter Hall Retail is up 4.5%.

Annual returns of investment of companies in the S&P/ASX 200 Property Accumulation Index

Security

Exchange

Description

30/06/2011

 

 

 

 

CQO

ASX

Charter Hall Office

42.1%

ALZ

ASX

Australand Property

26.9%

CQR

ASX

Charter Hall Retail

25.4%

DXS

ASX

Dexus Property Group

21.0%

ABP

ASX

Abacus Property Group

20.7%

GPT

ASX

GPT Group

18.5%

IOF

ASX

Investa Office Fund

17.9%

GMG

ASX

Goodman Group

16.5%

CPA

ASX

Commonwealth Prop

7.3%

BWP

ASX

BWP Trust

4.6%

CFX

ASX

CFS Retail Property

2.8%

MGR

ASX

Mirvac Group

1.3%

WRT

ASX

Westfield Retail Trust

0.0%

XPJ

ASX

XJO A-REIT

-0.1%

SGP

ASX

Stockland

-2.0%

WDC

ASX

Westfield Group

-3.0%

CHC

ASX

Charter Hall Group

-3.5%

Source: Atchison Consultants

Beare described the result as a “solid performance” due to the quality of its properties and the focus of its management team.

Dexus owns, manages and develops office and industrial property in Australia and the United States.

“While we are proud of our outperformance we know that for investors it is absolute performance that matters and the A-REIT sector including Dexus did not do well for investors through the GFC,” Beare said.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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