Dexus Industria REIT (ASX:DXI) Reports Half-Year Financial Results
Financial Performance
Dexus Industria REIT reported a net profit after tax of $53.7 million for the half-year ended 31 December 2024, reversing a loss of $10.2 million in the prior period. Revenue from ordinary activities decreased by 14.4% to $34.8 million. Funds from operations (FFO) increased by 5.7% to $28.8 million, driven by reduced net finance costs and property revaluation gains.
Distribution and Shareholder Returns
The distribution to security holders remained unchanged at $26.0 million, maintaining the payout ratio at 90.3%. FFO per security rose to 9.08 cents, up from 8.59 cents in the previous period.
Property Portfolio and Asset Management
The property portfolio, valued at $1.4 billion, continues to perform strongly with an occupancy rate of 99.5% by income and a weighted average lease expiry of 5.6 years. The industrial portfolio contributed significantly, achieving an average rent review of 3.8% and like-for-like income growth of 2.4%.
Environmental, Social and Governance (ESG) Initiatives
Dexus Industria REIT remains committed to sustainability, sourcing 100% renewable electricity for assets under operational control and maintaining a carbon-neutral position. The portfolio achieved a 5.0 star NABERS energy rating and a 4.8 star NABERS Water rating. Solar installations and waste management initiatives further underscore the REIT’s ESG focus.
Future Outlook
The REIT reiterates its FY25 guidance with an expected FFO per security of 17.8 cents and distributions per security of 16.4 cents, reflecting sustained growth and a stable distribution yield of 6.0%.
Capital Management
Total borrowings increased by 8.4% to $284.96 million, while net assets rose by 3.9% to $1,432.27 million.
Motley Fool contributor Abbie Stokes 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.