DGAP-Adhoc Dexus Finance Pty Limited: 2020 AGM Chair and CEO address - Seite 2
We released our 2020 Annual Report in August which is an integrated report and reinforces our focus on
long-term value creation. This year, we highlighted how we are positioning for the recovery on the other side of the significant disruption caused by the global pandemic.
I won't spend too much time today discussing the result as you can read the achievements in the Annual Report and the results presentation available on our website.
Reflecting on our response to the COVID-19 pandemic.
Many of our small to medium-sized customers had their businesses impacted by the government restrictions, which affected their turnover and ability to pay rent. Our team was already proactively talking with our customers about supporting them ahead of the introduction of the government's Code of Conduct which formalised the approach for the provision of rent relief by landlords to their most impacted tenants.
The assistance we provided to our customers impacted our financial result for the year.
To preserve capital, the management team implemented cost reduction initiatives across the group including freezing recruitment and non-essential consultancy spend, as well as temporary reductions in remuneration levels for the Board, the CEO and other executives over a three-month period.
The value of our portfolio has been reinforced by asset recycling.
Lastly, prior to the onset of COVID-19 our business was in strong shape and we upgraded guidance for distribution per security growth to circa 5.5%. However, due to the challenging operating environment, we withdrew our FY20 distribution guidance but were able to provide revised guidance in June for a distribution that was consistent with FY19 - and we delivered on that guidance.
From a capital management perspective, as a Board we have been very focused on ensuring that Dexus's financial strength is maintained to deal with the current environment. Since March we have enhanced our liquidity and sourced $650 million of debt funding.
Our proforma gearing level at 30 June remained low at 24.3%, which is well below our target range of 30-40%, so in summary, Dexus is in a strong financial position.