Dexus (ASX:DXS) Reports Strong 2025 Half-Year Results
Financial Performance
Dexus reported an Adjusted Funds From Operations (AFFO) of $251.8 million or 23.4 cents per security, aligning with expectations. Distributions totaled $204.4 million or 19.0 cents per security, reflecting a payout ratio of 81.2%. The company achieved a statutory net profit after tax of $10.3 million, a significant improvement from a net loss of $597.2 million in the previous half-year. Pro forma gearing was maintained at 31.3%, within the target range. The property portfolio showed resilience with high occupancy rates of 93.5% in the office sector and 95.7% in industrial properties.
Operational Achievements
Dexus secured approximately $1.7 billion in real asset transactions, including $515 million in balance sheet divestments since the FY24 result. The Dexus Real Estate Partnership 2 (DREP2) raised around $470 million in equity commitments. Both the Dexus Wholesale Property Fund (DWPF) and Dexus Wholesale Shopping Centre Fund (DWSF) outperformed their benchmarks, while the Dexus Diversified Infrastructure Trust (DDIT) exceeded its benchmark over the past 12 months.
Executive Comments
Ross Du Vernet, Dexus Group Chief Executive Officer & Managing Director, stated, “We have progressed our medium-term priorities of transitioning the balance sheet, maximising the contribution from the funds business and unlocking our deep sector expertise. We are actively assessing infrastructure opportunities and remain focused on modernising and stabilising funds to position the platform for when the cycle turns.”
Outlook
Ross Du Vernet reiterated Dexus’s expectation for AFFO of circa 44.5 – 45.5 cents per security and distributions of circa 37.0 cents per security for the 12 months ending 30 June 2025. He emphasized the company’s focus on delivering superior risk-adjusted returns and highlighted the resilience of high-quality assets in a turning real asset market cycle.
Sustainability
Dexus continued its commitment to sustainability, progressing initiatives in customer prosperity, climate action, and enhancing communities. The company achieved seven 5-Star GRESB ratings and maintained high rankings for several funds globally.
Portfolio and Development
The $14.5 billion portfolio remains strong with high occupancy rates. Development projects are advancing with $15.6 billion in the pipeline, including significant progress in key precincts and fully leased developments like 5 Spartan Street in ASCEND at Jandakot Airport.
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 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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