Dexus Industria (DXI) H1 2025 earnings summary

Executive summary

• Achieved FFO per security of 9.1 cents (AUD 0.091), up 5.7% year-over-year, with distributions of 8.2 cents per security and a payout ratio of 90.3%.

• Net profit after tax was $53.7 million, reversing a prior loss, driven by property valuation gains and strong equity-accounted investment performance.

• Portfolio occupancy reached 99.5% with robust leasing momentum and like-for-like portfolio growth of 4.7%.

• Net tangible assets per security increased by 2.5% to $3.32, supported by a $34 million net property valuation uplift.

• Maintained carbon-neutral status for Scope 1 and 2 emissions, with ongoing sustainability initiatives and solar installations.

Financial highlights

• FFO for the period was $28.8 million, up 5.7% year-over-year.

• Distribution per security was 8.2 cents, reflecting a payout ratio of 90.3%.

• Net property valuation uplift of $34 million, a 2.4% increase on prior book values.

• Look-through gearing at 27.7%, below the 30%-40% target range; balance sheet gearing at 20.7%.

• Interest cover ratio at 6.5x; average cost of debt rose to 4.2%.

Outlook and guidance

• FY25 guidance reiterated: FFO per security of 17.8 cents (2.3% growth) and distributions of 16.4 cents (6.0% yield).

• Second half FFO per share expected to be down 4% versus the first half due to lower hedging and higher fixed rates.

• Look-through gearing expected to rise to ~30% post-committed pipeline spend.

• Focus remains on organic income growth, capital flexibility, and delivering the $269 million development pipeline.

• Targeting high-quality developments with yields on cost of 6.25%+.