Overview of Dexus Convenience Retail REIT's 2024 annual results presentation

Dexus Convenience Retail REIT (ASX: $DXC) has released its 2024 Annual results presentation, showcasing a strong performance for the year. With a portfolio valued at approximately $741 million, the REIT owns high-quality Australian service stations and convenience retail assets predominantly located on Australia's eastern seaboard. The fund has achieved a 99.7% occupancy rate and an 8.8-year weighted average lease expiry profile, providing a sustainable and strong level of income security. Dexus Convenience Retail REIT maintains a conservative approach to capital management with a target gearing range of 25 - 40%. The fund is governed by a majority Independent Board and managed by Dexus (ASX: $DXS), a leading fully integrated real asset group with over 35 years of expertise in property investment, funds management, asset management, and development.

Executive commentary on Dexus Convenience Retail REIT's performance and strategic focus

The 2024 full year results demonstrate our commitment to providing investors with exposure to defensive income with embedded growth. We have achieved a high occupancy rate and a diversified mix of fuel and convenience retail operators, contributing to a secure distribution yield backed by high-quality tenant covenants. Our prudent capital structure and active portfolio management have allowed us to maintain gearing around the midpoint of the target range and explore strategic growth opportunities beyond fuel and convenience. We are dedicated to delivering performance for investors across our funds management platform, leveraging our deep capability across transactions, developments, asset management, treasury, and sustainability.

Summary of Dexus Convenience Retail REIT's 2024 performance and future outlook

Dexus Convenience Retail REIT's 2024 annual results reflect continued income resilience supported by active capital management. The fund delivered upper-end results, with FFO and distributions of 21.0 cents per security, at the upper end of the guidance range. The balance sheet strength was supported by divestments, maintaining gearing around the midpoint of the target range. The fund also achieved enhanced portfolio attributes, reflecting valuable landbank skewed to the eastern seaboard and a diverse and high-quality tenant base committed to network enhancement. Looking ahead, Dexus Convenience Retail REIT aims to maximize value creation by supporting tenants with their strategies for the emerging opportunities in convenience retail and the long-term shift in the energy mix. The fund's FY25 guidance includes FFO and distributions of 20.6 cents per security, based on contracted property income growth, current interest rate expectations, and potential asset sales currently under negotiation.