Dexus Industria (DXI) investor relations material

Executive summary

• FY26 FFO per security was 17.6 cents, exceeding upgraded guidance, driven by strong leasing outcomes, high occupancy of 98.8%, and active management.

• Portfolio transitioned to a fully industrial REIT with 90 assets valued at $1.5 billion and a $217 million development pipeline at Jandakot.

• Completed $132 million in Jandakot developments since acquisition, with 45,200 sqm delivered at a 7.0% yield on cost.

• Sustainability initiatives advanced, including solar, battery storage, net zero Scope 1 and 2 emissions, and 100% renewable electricity for operational assets.

• Statutory net profit after tax was $74.4 million, down from $84.2 million year-over-year due to lower property valuation gains.

Financial highlights

• FFO of $55.7 million (17.6cps), ahead of guidance, with distributions of 16.6cps (94.4% payout ratio).

• Like-for-like income growth of 5.3% and positive re-leasing spreads of 21.4%.

• Portfolio valuation rose 1.3% to $1.529 billion, with a $19.1 million uplift and NTA per security up 2.4% to $3.425.

• Look-through gearing at 31.2%, at the lower end of the target range.

• Weighted average debt maturity of 3.6 years, with no expiries until FY28.

Outlook and guidance

• FY27 FFO expected at 17.0cps and distributions at 16.6cps, with a 6.8% yield, supported by contracted rental increases and development pipeline.

• Committed development pipeline to deliver $30–40 million of completions per annum through FY30, with expected yields above 6.25%.

• Buyback and Jandakot development prioritized for capital deployment, with full funding in place.

• Payout ratio expected to step up to about 98% in FY27, balancing cash flow and flexibility.

• Zero-cost hedge restructure post-June 2026 to increase FY27 interest costs but provide clearer medium-term cost visibility.