Dexus Industria (DXI) investor relations material

Investment strategy and market positioning

• Focus on high-quality, geographically diverse industrial assets to deliver resilient income and capital growth.

• Strategy centers on organic income growth, disciplined portfolio management, and prudent balance sheet management.

• Leveraging Dexus' platform provides access to expertise and a robust opportunity pipeline.

• Recent transition to a 100% industrial REIT, divesting non-core business park assets for $155.5 million.

• Acquisition of a Sydney logistics warehouse enhances exposure to high-demand, land-constrained markets.

Industrial market outlook and portfolio fundamentals

• Australian industrial demand remains robust, driven by population growth and e-commerce expansion.

• Supply is constrained by high land and construction costs, with 2025 supply forecasts revised down by 900,000 sqm.

• Vacancy rates in major cities remain low, attracting strong foreign capital interest.

• Portfolio occupancy is high at 99.5%, with a weighted average lease expiry of 5.9 years.

• Top tenants are diversified, with the largest representing 18% of income and long-term lease commitments.

Development pipeline, sustainability, and financial outlook

• Development pipeline at Jandacot totals $230 million, targeting yields above 6.25% and potential returns over 8%.

• Projects feature high-spec design, sustainability, and flexible layouts to meet modern tenant needs.

• Sustainability initiatives include rooftop solar, battery storage, and high NABERS ratings.

• Security price trades at a 15% discount to NTA, with a distribution yield around 6%.

• Forecast for FY26: FFO of $0.0173 per security and distributions of 16.6¢ per security.