DEXUS (DXS) H1 2026 earnings summary

Executive summary

• HY26 AFFO was $253.3m (23.6 cps); distributions were $207.6m (19.3 cps), with an 82% payout ratio.

• Statutory net profit after tax rose to $348.5m from $10.3m in HY25, mainly reflecting fair value gains.

• Property valuations increased 1.0% for the half, with a $122.2m uplift; NTA per security rose 1.6% to $8.95.

• Managed assets totalled $51bn, with funds management FUM of $36.2bn.

• $1.4bn of divestments was secured since June 2024, including $0.8bn exchanged or settled during HY26.

Financial highlights

• Revenue from ordinary activities was $360.0m, down 17.2% YoY; FFO rose 4.3% to $352.2m and AFFO rose 0.6% to $253.3m.

• Underlying FFO declined 7.6% to $311.3m; post-tax trading profits were $40.9m versus $0.9m in HY25.

• Office FFO fell 8.0% to $256.3m, while industrial FFO rose 9.7% to $70.1m.

• Property valuations rose 1.0% overall; statutory profit included $126.7m of net fair value gains on investment properties, versus $137.5m of losses in HY25.

• Distribution per security increased 1.6% to 19.3 cents.

Outlook and guidance

• FY26 AFFO guidance reaffirmed at 44.5–45.5 cents per security, with distribution guidance of 37.0 cents, subject to stated assumptions and no material deterioration in conditions.

• Trading profits are expected to be materially lower in FY27; minimal performance fees are anticipated.

• On-market buyback of up to 10% of securities activated to address the valuation disconnect and enhance capital efficiency, paced with balance-sheet discipline.

• Exploring greater third-party capital participation to improve returns and capital efficiency, potentially releasing capital beyond the divestment target.