Dexus Convenience Retail REIT increases buy-back to 5%

• Dexus Convenience Retail REIT announced it has increased its on-market securities buy-back target from 2.5% to 5.0% of securities on issue.
• The company also reported an estimated net portfolio valuation uplift of approximately $8.1 million for the six months ending June 30.
• The decision to double the buy-back target reflects the company's progress against its initial target and an ongoing commitment to enhance value for security holders.

Dexus Convenience Retail REIT (ASX:DXC) announced an $8.1 million portfolio valuation uplift and doubled its security buy-back target to 5%.

The 1.1% increase in book values follows external valuations for 33 of the company's 91 property assets.

"DXC continues to deliver a resilient income stream, with contracted rental growth and fuel and convenience transaction activity providing support for the valuation of our portfolio," said Dexus Convenience Retail REIT Fund Manager Pat De Maria.

The initial buy-back target was 55% complete on June 18.

Following the announcement, the Dexus Convenience Retail REIT share price was unchanged at $2.60 as the company progresses towards its upcoming August financial reporting date.

The portfolio's weighted average capitalisation rate remained stable at 6.18% over the six months ending June 30.

The company stated that its current gearing levels provide the balance sheet flexibility required to fund this expanded buy-back.