Despite challenging macroeconomic conditions, and a supply-demand imbalance in the wider Australian office market, Dexus (ASX:DXS), has succeeded in maintaining lofty occupancy ratios and a relatively cautious balance sheet, reports Citi.

This comes even as the real estate company reels from its first net loss since 2009, with soaring interest rates erasing almost A$1.2 billion (equivalent to $770.88 million) from the value of its property assets.

Citi modifies its fiscal year 2024 and 2025 Earnings Per Share (EPS) predictions by respective increases of 4% and 2.2%, permitting room for stronger funds management income.

The firm elevates its price target to A$8.20 from A$8.00 while keeping the stock rating ‘neutral.’ Notwithstanding wariness surrounding the vulnerable supply demand dynamics in the Australian office market, Dexus is deemed to have outlive this subsector operationally, according to the brokerage.

Analysts' assessments of the stock are varied: 5 of 11 analysts place the stock at ‘buy’ or higher, 4 say ‘hold’ and 2 consider it a ‘sell’; the median price target stands at A$8.90 according to Refinitiv data.

This year, up until the last closing, Dexus (ASX:DXS)’s stock has risen by 0.1%.

Dexus (ASX:DXS) is an Australian real estate company that manages a high-quality Australian property portfolio valued at $32.1 billion.