DEXUS (DXS) H2 2024 earnings summary

Executive summary

• Delivered FY24 results in line with guidance, maintaining high occupancy in office (94.8%) and industrial (96.8%) portfolios, and strong cash flows with AFFO of $516.3 million.

• Statutory net loss after tax of $1,583.8 million, mainly due to $1,901.6 million in fair valuation losses on investment property.

• Completed integration of AMP Capital's domestic infrastructure and real estate business, expanding the funds management platform.

• Refined strategy and updated distribution policy for FY25 to support sustainable growth and capital deployment.

• Advanced capital recycling with $1.7 billion of divestments and $2.9 billion of fund asset sales to facilitate redemptions and manage capital positions.

Financial highlights

• AFFO of $516.3 million, down 7.0% year-over-year; AFFO per security 48.0 cents, in line with guidance.

• Statutory net loss after tax of $1,583.8 million, driven by property revaluations and one-off items.

• Portfolio valuation declined by $1.9 billion (12.9%) over 12 months, with office down 15.6% and industrial down 3.3%.

• Management operations FFO up 26.6% to $143 million, driven by AMP Capital integration and performance fees.

• NTA per security at $8.97, down from $10.88 at June 2023.

Outlook and guidance

• FY25 AFFO expected at 44.5–45.5 cents per security and distributions at 37.0 cents per security.

• Distribution policy updated to pay out 80%-100% of AFFO from FY25, supporting reinvestment in growth.

• Higher debt costs (~6% headwind), lower trading profits, and flat management business expected; modest property portfolio growth and lower tax to partly offset.

• Well-located, quality assets expected to outperform as market stabilizes and investor confidence returns.

• Focus on co-investment in industrial, infrastructure, and alternative sectors.