DEXUS (DXS) H2 2026 earnings summary

Executive summary

• Delivered on FY26 commitments and guidance, maintaining a strong balance sheet and advancing portfolio transition and capital efficiency.

• Raised $2 billion in third-party capital, exceeded divestment targets, and recommenced securities buyback activity.

• Continued transition to a more diversified, capital-efficient portfolio, including new growth initiatives like the Boral JV.

• Addressed fund-specific issues, notably APAC litigation, and initiated a strategic review of infrastructure funds.

• Statutory net profit after tax rose to $482.2 million, driven by stabilising capitalisation rates and positive revaluation movements.

Financial highlights

• AFFO was $483.9 million (AUD 484 million), flat year-over-year; distribution per security was 37.0 cents, payout ratio 82.1%.

• Office FFO declined due to divestments and lower occupancy; industrial FFO rose on development completions and higher occupancy.

• Gearing (look-through) at 33.4%, within the 30–40% target range, with $2.5 billion in liquidity and average debt maturity of 4.2 years.

• Finance costs increased due to higher average debt cost (4.8%), partly offset by divestments.

• NTA per security increased to $8.92, up 1% year-over-year.

Outlook and guidance

• FY27 AFFO expected at 37.5–39.5 cents per security; distributions forecast at 37.0 cents per security.

• Lower FY27 earnings anticipated due to reduced performance fees, trading profits, higher finance costs, and lower contributions from funds under review.

• Buyback to continue as a near-term value lever, supported by recent divestments.

• Focus remains on asset performance, cost management, and finalising the infrastructure funds review.