Dexus Upgrades Fiscal 2021 Distribution Guidance; FVE Unchanged at AUD 10.55.

Narrow-moat Dexus has increased its fiscal 2021 distribution growth guidance to 3%, up from flat. We raise our forecast accordingly, which implies distributions totalling AUD 51.8 cents for the 2021 fiscal year. We make no change to our earnings estimates--we already assumed growth of 3% in funds from operations, or FFO, with the new distribution growth estimate in line with that. We slightly increase our distribution estimates for the years from fiscal 2022 through to 2025, and decrease our estimates from 2026 to 2030. We still assume Dexus’ earnings recovery is hampered somewhat by rival office supply arriving, but we assume Dexus maintains a slightly higher FFO payout ratio in the near term, balanced by a slightly lower payout ratio further out. Our estimates for the overall amount distributed over the next decade remains near identical to previous, and our earnings estimates are unchanged.