DEXUS (DXS) H1 2026 earnings summary

Executive summary

• Adjusted Funds From Operations (AFFO) reached $253.3 million for HY26, up 0.6% year-over-year, with statutory net profit after tax of $348.5 million and distributions per security of 19.3 cents, reflecting an 82% payout ratio.

• Managed AUD 51 billion in assets, with third-party funds under management at 2.4x the investment portfolio and FUM at $36.2 billion, supported by new fund launches and strong flagship fund performance.

• Portfolio valuations improved for the second consecutive half, with a $122.2 million uplift and NTA per security rising to $8.95.

• Over $950 million in equity raised, $1.4 billion in divestments since June 2024, and $1.3 billion in acquisitions, supporting capital efficiency and portfolio quality.

• Office leasing volumes nearly doubled year-over-year, with strong industrial portfolio growth and robust rent collections at 99.7%.

Financial highlights

• AFFO was $253.3 million, up 0.6% year-over-year, with an 82% payout ratio and FFO rising 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 increased in the first half, mainly from asset sales and development activity, but are expected to be materially lower in FY27.

• Distribution per security grew 1.6% to 19.3 cents.

• Portfolio value increased by 1% for the six months to December 31, driven by rental growth.

Outlook and guidance

• AFFO guidance for FY26 reaffirmed at 44.5-45.5 cents per security, with distributions expected at 37.0 cents per security.

• Performance fees and trading profits expected to be materially lower in FY27.

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

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

• Guidance is subject to asset sales, performance fees, trading profits, APAC litigation outcomes, and no material deterioration in market conditions.