News: DXS UPDATE 1-Australia's Dexus annual loss widens as high rates wipe off property value

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Aug 20 (Reuters) - Australia's Dexus (DXS) posted a bigger-than-expected annual loss on Tuesday, as high interest rates wiped off around A$1.9 billion ($1.28 billion) in value of its property portfolio.

Dexus, one of Australia's largest office landlords, posted statutory net loss attributable of A$1.58 billion for the year ended June 30, much wider than a Visible Alpha consensus of A$488.5 million loss and prior year's A$752.7 million loss.

Decade-high interest rates have pressured property valuations as growing demand for home working and e-commerce lead tenants to reconsider floor space, with high borrowing costs reducing building values and making it costlier to service debt costs.

Dexus' portfolio valuation declined around 13% on prior book values over fiscal 2024. Valuation of its office portfolio - more than two-thirds of the total portfolio - declined more than 15% during the year.

Its adjusted funds from operations, which excludes valuation changes and one-off charges, also slipped 7% to A$516.3 million, falling slightly short of consensus of A$532.2 million.

Dexus has also earmarked assets worth A$2 billion for sale over the next three years to "further enhance the quality of our portfolio", it said.

($1 = 1.4852 Australian dollars)