DEXUS (DXS) H2 2025 earnings summary

Executive summary

• Delivered AFFO of $483.9 million (45.0 cents per security), meeting FY25 guidance, with distributions of 37.0 cents per security and a payout ratio of 82.2%.

• Statutory net profit after tax was $136.1 million, a turnaround from a $1,583.8 million loss in FY24, driven by stabilizing capitalisation rates and lower fair value losses.

• Total funds under management reached $50.1 billion, with $14.5 billion in the listed portfolio and $35.6 billion in third-party funds.

• Office and industrial portfolios maintained high occupancy, with office at 92.3% and industrial at 96.2%.

• Sustainability leadership continued, with net zero emissions maintained and multiple global ESG recognitions.

Financial highlights

• AFFO of $483.9 million, down 6.3% year-over-year; distribution payout aligned to revised policy at 82.2% of AFFO.

• Statutory net profit after tax was $136.1 million.

• Office property FFO decreased 1.1% and industrial property FFO decreased 9.2% year-over-year, mainly due to divestments.

• Management operations FFO increased 8.7% due to higher performance fees and cost savings.

• Net finance costs rose 11.3% due to higher interest rates and cessation of capitalised interest.

Outlook and guidance

• FY26 AFFO expected at 44.5–45.5 cents per security, with distributions of 37.0 cents per security.

• Growth anticipated in industrial FFO, offset by lower office FFO and higher finance costs.

• Office occupancy expected to dip toward 90% before recovering; industrial occupancy to benefit from strong leasing momentum.

• Maintenance and leasing CapEx for FY26 projected to be in line with FY25, with a shift toward industrial.

• Positioned to benefit from market recovery, with a focus on divestments, development completions, and fund inflows.