Dexus Industria (DXI) H1 2025 earnings summary

Executive summary

• 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 like-for-like portfolio growth of 4.7%.

• Net tangible assets per security increased by 2.5% to $3.32, driven by property valuation uplifts.

• Continued focus on sustainability, maintaining carbon-neutral status for Scope 1 and 2 emissions, progressing solar installations, and improving NABERS ratings.

Financial highlights

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

• Net tangible assets per security increased 2.5% to $3.32, supported by a $34 million net valuation uplift (2.4% increase on prior book values).

• Distributions per security were 8.2 cents, with a payout ratio of 90.3%.

• 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 per security of 16.4 cents (6.0% yield).

• Second half FFO per share expected to be down 4% versus 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 activating high-quality developments with target yields on cost of 6.25%+.

• Like-for-like growth expected to strengthen for the full year due to strong leasing outcomes.