Dexus Convenience Retail REIT (ASX:DXC) Reports Half-Year Results
Financial Performance
Dexus Convenience Retail REIT (DXC) announced a half-year distribution of 10.3 cents per security, in line with its FY25 guidance. The statutory result showed a net profit after tax of $14.7 million, up from a $1.7 million loss in the prior period, driven by property valuation gains. Funds From Operations (FFO) reached $14.3 million, or 10.4 cents per security, with like-for-like net property income growing by 2.8%.
Portfolio Enhancement
The balance sheet was strengthened with gearing at 28.7%, within the target range of 25–40%, following strategic divestments of $38.8 million. Surplus debt facilities worth $46.3 million were cancelled, optimising debt costs. DXC commenced the redevelopment of the Glass House Mountains Northbound site, which is fully pre-leased on an 18-year average lease term.
Environmental, Social and Governance (ESG)
DXC maintained its carbon neutral position for Scope 1, 2 and some Scope 3 emissions and supported customers with solar installations and EV charger installations across assets. The Glass House Mountains redevelopment includes sustainability initiatives such as electric vehicle charging stations and rooftop solar.
Outlook
DXC is on track to deliver FFO and distributions of 20.6 cents per security for FY25, reflecting a distribution yield of 7.3%. The company remains focused on enhancing portfolio attributes, preserving balance sheet flexibility, and pursuing value-enhancing activities.
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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