Dexus Industria (DXI) H2 2025 earnings summary

Executive summary

• Delivered resilient FY25 performance with FFO of $57.9 million or 18.2cps, up 4.6% year-over-year, outperforming upgraded guidance.

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

• Achieved $1.5bn portfolio valuation, supported by strong leasing, robust development completions, and significant tenant commitments.

• 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

• FY25 property FFO rose to $85.0m, total FFO $57.9m or $0.182 per security, up 4.6% year-over-year and ahead of guidance.

• Distributions totaled $0.164 per security, with a payout ratio of 90%.

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

• NTA per security increased 3.1% to $3.34, driven by $37.6 million in property valuation uplifts.

• 98.6% occupancy by income; 209,600sqm leasing achieved, doubling prior year volumes.

Outlook and guidance

• FY26 FFO expected at $0.173 per security and distributions at $0.166 per security, factoring in BTP divestment.

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

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

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

• Guidance subject to market conditions, interest rates, and successful execution of planned transactions.