DEXUS (DXS) H1 2026 earnings summary

Executive summary

• AFFO for HY26 reached $253.3 million (23.6 cps), with distributions of $207.6 million (19.3 cps) and a payout ratio of 82%.

• Statutory net profit after tax was $348.5 million, up from $10.3 million in HY25, driven by fair valuation gains.

• Property portfolio valuations increased for the second consecutive half, with a 1.0% uplift overall and NTA per security rising to $8.95.

• Office portfolio occupancy exceeded the Australian market average at 92.2%, with strong leasing volumes and industrial like-for-like income up 8.7%.

• Over $950 million in equity raised, $1.4 billion in divestments since June 2024, and new fund launches supported capital efficiency.

Financial highlights

• AFFO increased 0.6% year-over-year to $253.3 million, with an 82% payout ratio and distribution per security of 19.3 cents.

• FFO rose 4.3% to $352.2 million; office FFO declined 8% due to divestments and lower occupancy, while industrial FFO rose 9.7% on higher occupancy and development completions.

• Trading profits of $40.9 million (post-tax) were realized, mainly from asset sales and development activity.

• Net tangible asset (NTA) per security increased by 1.6% to $8.95.

• Rent collections remained strong at 99.7%.

Outlook and guidance

• AFFO guidance for FY26 reaffirmed at 44.5–45.5 cps, with distributions of 37.0 cps.

• On-market securities buyback of up to 10% activated to enhance capital efficiency.

• Trading profits and performance fees expected to be materially lower in FY27.

• Positive market fundamentals, constrained supply, and improving transaction volumes support long-term confidence.

• High threshold for new development projects, with focus on capital efficiency and risk-adjusted returns.