DEXUS (DXS) investor relations material

Executive summary

• Delivered on FY25 guidance with strong cash flows, high office (92.3%) and industrial (96.2%) occupancy, and record industrial leasing.

• Total funds under management reached $50.1b, with $14.5b in the investment portfolio and $35.6b in third-party funds.

• Divested $1.1b in assets, progressing toward a $2b target for FY25-27, and maintained gearing at the low end of the target range.

• Core diversified and shopping center funds outperformed peers and benchmarks, with $1.8b in redemptions facilitated.

• Strong sustainability performance, maintaining net zero emissions across Scope 1, 2, and some Scope 3, and multiple funds achieving 5 Star GRESB ratings.

Financial highlights

• AFFO for FY25 was $484M, with a distribution of $0.37 per security and an 82% payout ratio.

• AFFO decreased 6.3% year-over-year; office FFO fell 1.1% and industrial FFO dropped 9.2% due to divestments and prior-year one-off income.

• Management operations FFO increased to $155M, driven by higher performance fees and cost savings.

• Net finance costs increased 11.3% year-over-year, reflecting higher interest rates and cessation of capitalised interest.

• Portfolio value declined 1.1% year-over-year, but second half saw positive revaluations.

Outlook and guidance

• FY26 AFFO expected between $0.445 and $0.455 per security; distributions to remain at $0.37 per security.

• Industrial FFO growth anticipated, offset by lower office FFO due to divestments.

• Focus on delivering $2b in divestments by FY27, with $1b remaining.

• Trading profits of ~$40M post-tax secured for FY26.

• Recovery in real asset markets anticipated, with positive valuation trends and a shift in the interest rate cycle.