Dexus Convenience Retail (DXC) H2 2025 earnings summary

Executive summary

• Delivered FY25 FFO and distributions of 20.7 cents per security, slightly above guidance, with resilient income growth and 99.9% occupancy.

• Portfolio comprises 91 strategically located assets valued at $728 million, with 95% of income from major national or international tenants and a 7.9-year WALE.

• $38.8 million in strategic divestments improved portfolio quality and provided capacity for future growth.

• NTA per security increased by 2.2% to $3.64, supported by rental growth and cap rate compression.

• Glass House Mountains Northbound redevelopment on track for early 2026 completion, fully pre-leased on an 18-year WALE and expected to deliver strong returns.

Financial highlights

• FY25 FFO of $28.4 million, or 20.7 cents per security, down 1.5% year-over-year due to higher debt costs and divestments, but above guidance.

• Like-for-like net operating income grew 2.9% year-over-year, supported by 3.1% average rent reviews.

• NTA per security rose to $3.64, up from $3.56 last year.

• Portfolio valuation increased by $16.6 million (2.3%), with average cap rate compressing 8 bps to 6.32%.

• $38.8 million of divestments settled at a 1.8% average discount to book value.

Outlook and guidance

• FY26 guidance for FFO and distributions set at 20.9 cents per security, up 1.2% year-on-year, implying a 7.1% distribution yield.

• Guidance assumes no capital deployment beyond Glass House Mountains northbound.

• Focus remains on value-enhancing activities, including redevelopment, pipeline restocking, and growth opportunities.