DEXUS (DXS) H1 2025 earnings summary

Executive summary

• HY25 AFFO was $251.8m, down 13.9% year-over-year; statutory net profit after tax was $10.3m, versus a $597.2m loss in HY24.

• Distribution was 19.0 cents per security, with an 81.2% AFFO payout ratio, down from 98.2% in HY24.

• Office and industrial occupancy were 93.5% and 95.7%, respectively; office occupancy remained above the market average.

• Platform FUM was $53.4bn, comprising $14.5bn in direct investments and $38.9bn in third-party FUM.

• $515m of balance-sheet divestments contracted since the full-year result, progressing a $2bn FY25–FY27 program.

Financial highlights

• Underlying FFO was $336.9m, down 5.3% year-over-year; AFFO was $251.8m, down 13.9%, reflecting higher interest costs and leasing incentives.

• Statutory net profit after tax was $10.3m, compared with a $597.2m loss in HY24, mainly reflecting lower investment property valuation losses.

• Finance costs rose to $109.1m from $87.5m; net finance costs increased $16.8m due to higher rates and the end of capitalised interest at 123 Albert Street.

• NTA per security was $8.81, down from $8.97 at 30 June 2024; portfolio valuations declined 1.6% over six months.

• Management operations FFO rose 7.2% to $77.7m, supported by performance fees and cost savings.

Outlook and guidance

• FY25 AFFO guidance reiterated at 44.5–45.5 cents per security; distribution guidance was 37.0 cents, subject to conditions and current expectations for sales, fees and trading profits.

• Around $20m of performance fees and $35m of post-tax trading profits secured for FY26; further performance fees expected in H2 FY25.

• Higher funding costs expected to weigh on FY26; approximately $1bn of committed development spend remains through FY26.

• Market conditions stabilising as the interest-rate cycle shifts towards easing; industrial demand outlook supported by constrained supply and online spending.