Dexus Industria (DXI) H1 2025 earnings summary

Executive summary

• HY25 FFO per security rose 5.7% to 9.1 cents, with distributions of 8.2 cents per security and a payout ratio of 90.3%, on track to meet FY25 guidance.

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

• Portfolio occupancy reached 99.5% with robust leasing momentum and re-leasing spreads of 12.2%, and a WALE of 5.6 years.

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

• Continued focus on sustainability, maintaining carbon neutral status and advancing solar and waste management initiatives.

Financial highlights

• FFO for the period was $28.8 million, up 5.7% year-over-year, with like-for-like portfolio growth of 4.7%.

• Distributions per security were 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.

• NTA per security at $3.32, up 2.5% from the prior period.

• Look-through gearing at 27.7%, below the 30–40% target range.

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.

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

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

• Target yields on cost for new developments above 6.25%.