Dexus Industria (DXI) H1 2026 earnings summary

Executive summary

• Portfolio valued at $1.4 billion, with 99.7% occupancy and a 5.3-year WALE, repositioned as a pure-play industrial REIT with 88 assets, 76% in infill markets, reaching 80% of the Australian population within 60 minutes.

• Delivered first half 2026 results with strong portfolio performance, 7.4% like-for-like income growth, and upgraded FFO and distribution guidance for FY26, supported by high occupancy and successful leasing activity.

• Completed the divestment of Brisbane Technology Park for $155m, redeploying proceeds into four high-quality urban infill assets, including full ownership of Moorebank, Sydney.

• Net profit after tax for the half-year ended 31 December 2025 was $43.4 million, down 19.3% year-over-year, mainly due to lower property valuation gains.

• Maintained a resilient balance sheet with low gearing and continued positive valuation momentum.

Financial highlights

• Funds from operations (FFO) for the half were $28.2 million or 8.9 cents per security, a 2.0% decrease year-over-year; distributions were 8.3 cents per security.

• HY26 property FFO increased 1.8% year-over-year to $42.5m, driven by 7.4% like-for-like income growth and positive re-leasing spreads.

• NTA per security increased 1.5% to $3.39, supported by a $14.8m revaluation gain.

• Portfolio like-for-like income growth reached 7.4% year-over-year, driven by rental escalations and leasing.

• Distribution per security was 8.3 cents, up from 8.2 cents in the prior period.

Outlook and guidance

• FY26 FFO guidance upgraded to 17.4 cents per security, with distribution guidance reaffirmed at 16.6 cents per security, reflecting a 6.6% yield.

• Guidance upgrade driven by secured pre-leasing at Glendenning, additional leasing at Moorebank, and delayed BTP sale, offsetting higher floating rates.

• Development pipeline at Jandakot expected to deliver ongoing earnings accretion and future growth.

• Focus remains on organic income growth, active portfolio management, and disciplined capital deployment.

• Expect all-in cost of debt to rise slightly above 5% for the full year, reflecting higher floating rates.