Property Values Uplift Triggers Dexus Profit Rebound
Dexus is entering a stabilisation phase as real asset markets recover. With positive valuation momentum, a strong balance sheet, and active capital management, the company is well placed to narrow the gap between market price and asset value. At a market capitalisation of ~$6.78 billion, Dexus remains a scaled, resilient platform with improving earnings visibility.
Dexus (ASX: DXS)
Dexus (ASX: DXS) delivered steady and resilient performance in the first half of FY26 reflecting improving real asset market conditions and disciplined capital management.
The company had a market capitalisation of approximately $6.78 billion highlighting its scale and strong positioning within the Australian listed real estate sector.
The company reported Adjusted Funds From Operations (AFFO) of $253.3 million up marginally by 0.6% year on year for the six months ended 31 December 2025 . AFFO per security stood at 23.6 cents supporting the distribution of 19.3 cents per security implying payout ratio of 82% which remains in line with the group’s stated distribution policy.
The performance was supported by strong outcomes in the industrial portfolio where like for like income grew by 8.7% driven by high occupancy and solid leasing spreads. The office portfolio remained stable with occupancy at 92.2% outperforming the broader market despite ongoing structural headwinds. The property valuations turned positive for the second consecutive half resulting in 1.6% increase in Net Tangible Assets (NTA) to $8.95 per security.
Dexus continues to maintain the conservative financial profile. Look through gearing stood at 33.9, towards the lower end of the target range while liquidity remains strong with $2.5 billion of cash and undrawn facilities.
The company announced on-market buyback of up to 10% of securities, reflecting management’s view that the current share price does not fully reflect underlying asset value.
The management reaffirmed FY26 guidance with expected AFFO of 44.5-45.5 cents per security. Improving transaction activity, stabilising valuations and capital recycling initiatives position Dexus well to enhance returns and close the gap between market valuation and intrinsic asset value over the medium term.
(Source: Company Announcements)
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