Research Update: Dexus Wholesale Property Fund Outlook Revised To Stable From Positive On Merger Completion; 'A' Ratings Affirmed

Australia-based Dexus Wholesale Property Fund (DWPF) has completed its merger with AMP Diversified Property Fund (ADPF). This has improved its scale, diversity, and competitive position. We believe DWPF has a credible strategy to satisfy unitholder redemptions while maintaining its financial strength and portfolio diversification. This is despite difficult macroeconomic and sector conditions. Further credit headroom at the 'A' rating level will enable the fund to undertake strategic acquisitions and development projects to enhance the quality of its portfolio. On March 1, 2023, we revised the rating outlook on DWPF to stable from positive. At the same time, we affirmed our 'A' long-term issuer credit rating and issue rating on the real estate fund. The stable outlook reflects our expectation that

...- Australia-based Dexus Wholesale Property Fund (DWPF) has completed its merger with AMP Diversified Property Fund (ADPF). This has improved its scale, diversity, and competitive position. - We believe DWPF has a credible strategy to satisfy unitholder redemptions while maintaining its financial strength and portfolio diversification. This is despite difficult macroeconomic and sector conditions. - Further credit headroom at the 'A' rating level will enable the fund to undertake strategic acquisitions and development projects to enhance the quality of its portfolio. - On March 1, 2023, we revised the rating outlook on DWPF to stable from positive. At the same time, we affirmed our 'A' long-term issuer credit rating and issue rating on the real estate fund. - The stable outlook reflects our expectation that DWPF will maintain a conservative approach to development exposure and capital management consistent with its financial policies. Unitholder redemptions and fund growth can be adequately...

Research Update