Dexus Industria (DXI) H2 2025 earnings summary

Executive summary

• Delivered resilient FY25 performance, exceeding upgraded guidance with FFO per security of 18.2 cents, up 4.6% year-over-year, and distributions of 16.4 cents per security.

• Portfolio repositioned to 100% industrial assets, improving WALE to 5.9 years and occupancy to 99.5%.

• Achieved high occupancy, robust leasing activity with doubled volumes, and significant development completions.

• Major transactions included the divestment of Brisbane Technology Park for $155.5 million and acquisition of Glendenning warehouse.

• Maintained prudent capital structure with look-through gearing at 29%, below target range.

Financial highlights

• FFO increased 4.6% to $57.9 million, or 18.2 cents per security, ahead of guidance; distributions totaled 16.4 cents per security with a 90% payout ratio.

• Like-for-like income growth of 5.9% supported by embedded rental growth and leasing success.

• NTA per security rose 3.1% to $3.348, driven by $37.6 million in property valuation uplifts.

• Statutory net profit after tax reached $84.2 million, reversing a prior year loss.

• Cap rate expansion slowed to 11 bps, indicating stabilizing market conditions.

Outlook and guidance

• FY26 FFO per security expected at 17.3 cents and distributions at 16.6 cents, factoring in BTP divestment and implying a 5.8% yield.

• Payout ratio projected to trend toward 90% over the next few years.

• Positive leverage to lower interest rates and stabilizing capitalisation rates expected to support future earnings and NTA growth.

• Focus on organic income growth from fixed and CPI-linked escalators, with minimal near-term expiries.