Dexus Industria (DXI) H1 2026 earnings summary

Executive summary

• Portfolio valued at $1.4 billion, comprising 88 assets with 99.7% occupancy and a 5.3-year WALE, repositioned as a pure-play industrial REIT with 76% of assets in infill markets.

• Delivered HY26 FFO per security of 8.9 cents and distributions per security of 8.3 cents, with statutory net profit after tax of $43.4 million, down 19.3% year-over-year due to lower property valuation gains.

• Achieved 7.4% like-for-like income growth and 7.6% leasing spread, supported by rental escalations, high occupancy, and 55,098 sqm leased in HY26.

• Redeployed Brisbane Technology Park divestment proceeds into four high-quality urban infill assets, including full ownership of Moorebank, Sydney.

• Continued development momentum at ASCEND at Jandakot, with 24,100 sqm completions and 75,400 sqm activations, achieving a 6.6% average yield on cost.

Financial highlights

• HY26 FFO was $28.2 million, or 8.9 cents per security, with distributions at 8.3 cents per security; NTA per security increased 1.5% to $3.39, driven by a $14.8 million revaluation gain.

• Property revenue for the half-year was $32.9 million, down 5.4% year-over-year, while operating expenses decreased by 11.7% to $8.8 million.

• FFO payout ratio rose to 93.2% from 90.3% year-over-year.

• Net valuation uplift of $14.8 million, a 1% increase on prior book values.

• Achieved refinancing savings of 7-8 bps and new debt facility at 15 bps inside market rates.

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 leasing progress at Glendenning and Moorebank, additional leasing at Moorebank, and delayed BTP sale, partly offset by higher floating rates.

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

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

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