Dexus Convenience Retail REIT (DXC) AI Stock Analysis

• Market Cap: AU$416.02M
• Dividend Yield: 6.8%
• Average Volume (3M): 196.46K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.29
• Revenue Growth: -0.80%
• EPS Growth: N/A
• Country: AU
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Retail
• EPS (TTM): 0.14
• Shares Outstanding: 137,756,560
• 10 Day Avg. Volume: 212,256
• 30 Day Avg. Volume: 196,464
• PEG Ratio: -0.26
• Price to Book (P/B): 1.91
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$3.15
• Price Target Upside: 4.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: ―

Dexus Convenience Retail REIT is supported by strong financial fundamentals, including revenue growth and effective cost management. However, increasing leverage and income fluctuations are concerns. Technically, the stock shows a neutral trend with limited momentum indicators, while the valuation offers a balanced perspective. The attractive dividend yield adds appeal, but careful financial management is crucial for future stability.

Dexus Convenience Retail REIT Business Overview & Revenue Model

Company Description

APN Convenience Retail REIT (ASX code: AQR) is a listed Australian real estate investment trust which owns high quality Australian service stations and convenience retail assets. The Fund's portfolio of 79 properties valued at approximately $445 million, is predominantly located on Australia's eastern seaboard and is leased to leading Australian and international convenience retail tenants. The portfolio provides a long lease expiry profile and contracted annual rent increases delivering the Fund a sustainable and strong level of income security. Convenience Retail has a target gearing range of 25 – 40% as part of its conservative approach to capital management. APN Convenience Retail REIT is governed by an Independent Board of Directors and is managed by APN Property Group, a specialist real estate investment manager established in 1996.

How the Company Makes Money

Dexus Convenience Retail REIT generates revenue primarily through leasing its portfolio of convenience retail properties to tenants, which include major fuel retailers and convenience store operators. The company's revenue streams consist mainly of rental income from these long-term lease agreements. Additionally, DXC may benefit from periodic rent reviews and lease escalations, which can lead to increased rental income over time. The REIT's strategic location of properties in high-traffic areas contributes to tenant stability and occupancy rates, further ensuring consistent revenue. While the company may not have significant partnerships impacting its earnings directly, its alignment with leading retailers in the sector supports its robust income generation.

Dexus Convenience Retail REIT Financial Statement Overview

Summary

Overall, Dexus Convenience Retail REIT exhibits a solid financial foundation with strong revenue growth and effective cost management. While there are clear strengths in profitability and cash flow generation, attention should be given to the increasing leverage and fluctuations in net income. The company is well-positioned within its industry, but prudent financial management will be essential to sustain growth and stability.

Income Statement

Dexus Convenience Retail REIT has demonstrated consistent revenue growth, with a notable increase in total revenue over the past year. The gross profit margin remains robust, indicating effective cost management. However, the net profit margin has fluctuated significantly, impacted by varying net income figures over the years. The EBIT and EBITDA margins have shown improvement, suggesting enhanced operational efficiency, although past volatility in net income poses a risk.

Balance Sheet

The company maintains a substantial equity base, reflected in a healthy equity ratio. However, the debt-to-equity ratio has been increasing, indicating rising leverage, which could pose financial risk if not managed carefully. Despite this, the return on equity has been relatively positive, showcasing the company's ability to generate profit from its equity base.

Cash Flow

The cash flow position of Dexus Convenience Retail REIT appears stable, with consistent operating cash flow and positive free cash flow trends. The free cash flow to net income ratio suggests a strong conversion of income to cash, which is a positive sign of financial health. However, fluctuations in capital expenditures and financing cash flows indicate potential variability in cash management strategies.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	59.74M	57.10M	59.38M	55.42M	41.27M	33.35M
Gross Profit	39.19M	43.43M	46.57M	42.89M	34.27M	28.00M
EBITDA	67.56M	14.53M	2.99M	86.04M	78.04M	26.49M
Net Income	16.28M	3.41M	-8.38M	82.64M	73.82M	45.80M
Balance Sheet
Total Assets	720.98M	753.86M	802.86M	873.12M	646.79M	451.62M
Cash, Cash Equivalents and Short-Term Investments	4.81M	1.92M	5.45M	5.18M	786.00K	2.33M
Total Debt	207.30M	243.20M	263.42M	299.61M	180.77M	75.83M
Total Liabilities	229.51M	262.94M	286.48M	318.60M	193.52M	92.29M
Stockholders Equity	218.07M	490.92M	516.38M	554.52M	453.27M	359.33M
Cash Flow
Free Cash Flow	27.93M	23.63M	34.35M	18.29M	19.50M	20.84M
Operating Cash Flow	30.99M	25.17M	34.43M	30.49M	24.61M	22.37M
Investing Cash Flow	39.97M	21.29M	33.35M	-167.92M	-151.75M	-61.80M
Financing Cash Flow	-71.07M	-50.00M	-67.48M	143.26M	125.81M	41.48M

Dexus Convenience Retail REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DXC, the sentiment is Positive. The current price of 3.02 is above the 20-day moving average (MA) of 2.93, above the 50-day MA of 2.93, and above the 200-day MA of 2.82, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.82 is Neutral, neither overbought nor oversold. The STOCH value of 52.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DXC.

Dexus Convenience Retail REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$6.87B	19.10	-1.13%	7.17%	4.77%	-25.03%
DXC	63 Neutral	AU$416.02M	20.99	4.00%	6.80%	-0.80%	―
CNRAF		$7.42B	13.61	7.73%	4.69%	―	―
GPTGF		$6.08B	―	-1.94%	4.87%	―	―
STGPF		$12.20B	17.58	5.94%	4.63%	―	―
MQV		€1.25B	12.03	6.37%	6.46%	―	―
SCP	57 Neutral	AU$11.77M	―		―	―	―

Dexus Convenience Retail REIT Corporate Events

Dexus Convenience Retail REIT Reports $14.3 Million Valuation Uplift Amid Market Strength

Dexus Convenience Retail REIT announced a net valuation uplift of approximately $14.3 million for the six months ending June 2025, marking a 2.0% increase in book values. This growth is attributed to the robust demand for secure income assets in the fuel and convenience transaction market, supported by a favorable interest rate environment. The reduction in the weighted average capitalization rate across the portfolio indicates the first instance of rate compression since 2022, enhancing the fund’s net tangible assets.

The most recent analyst rating on (AU:DXC) stock is a Buy with a A$3.09 price target. To see the full list of analyst forecasts on Dexus Convenience Retail REIT stock, see the AU:DXC Stock Forecast page.

Dexus Convenience Retail REIT Announces New Dividend Distribution

Dexus Convenience Retail REIT announced a new dividend distribution for its fully paid units stapled securities, with a distribution amount of AUD 0.05237 per unit. The record date for the distribution is set for June 30, 2025, with the payment scheduled for August 21, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its investors and may influence its market positioning by demonstrating financial stability and shareholder value.

The most recent analyst rating on (AU:DXC) stock is a Buy with a A$3.09 price target. To see the full list of analyst forecasts on Dexus Convenience Retail REIT stock, see the AU:DXC Stock Forecast page.

Charter Hall Limited Ceases Substantial Holding in Dexus Convenience Retail REIT

Charter Hall Limited has ceased to be a substantial holder in Dexus Convenience Retail REIT as of May 29, 2025. This change may impact the company’s shareholder structure and could influence its strategic direction and market perception, although specific implications for stakeholders are not detailed in the notice.

The most recent analyst rating on (AU:DXC) stock is a Buy with a A$2.82 price target. To see the full list of analyst forecasts on Dexus Convenience Retail REIT stock, see the AU:DXC Stock Forecast page.

Dexus Convenience Retail REIT Updates Dividend Distribution Details

Dexus Convenience Retail REIT announced an update to its previous dividend distribution announcement, providing final details on the distribution rate. The distribution relates to the financial period ending March 31, 2025, with a payment date set, reflecting the company’s commitment to maintaining shareholder returns and potentially impacting investor confidence positively.

The most recent analyst rating on (AU:DXC) stock is a Buy with a A$2.82 price target. To see the full list of analyst forecasts on Dexus Convenience Retail REIT stock, see the AU:DXC Stock Forecast page.

Charter Hall Limited Acquires Substantial Stake in Dexus Convenience Retail REIT

Dexus Convenience Retail REIT has announced that Charter Hall Limited has become a substantial holder in the company, acquiring a 5.29% voting power through 7,281,942 ordinary shares. This acquisition, although reported late due to an administrative oversight, signifies a notable investment in the company, potentially impacting its market dynamics and stakeholder interests.

Dexus Convenience Retail REIT Announces Security Registry Relocation

Dexus Convenience Retail REIT announced the relocation of its security registry office in Sydney, effective April 14, 2025. The move to Liberty Place, Level 41, 161 Castlereagh Street, Sydney, does not affect MUFG Corporate Markets’ postal address or contact details. This change is part of the company’s ongoing operational adjustments, potentially impacting its administrative functions and stakeholder communications.