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Dexus Convenience Retail REIT (AU:DXC)
ASX:DXC
Australian Market

Dexus Convenience Retail REIT (DXC) AI Stock Analysis

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AU

Dexus Convenience Retail REIT

(Sydney:DXC)

Rating:63Neutral
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 (DXC) vs. iShares MSCI Australia ETF (EWA)

Dexus Convenience Retail REIT Business Overview & Revenue Model

Company DescriptionAPN 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 MoneyDexus 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
72
Positive
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
65
Positive
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
68
Positive
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
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
59.74M57.10M59.38M55.42M41.27M33.35M
Gross Profit
39.19M43.43M46.57M42.89M34.27M28.00M
EBIT
43.91M43.34M2.99M86.04M78.04M50.39M
EBITDA
67.56M14.53M2.99M86.04M78.04M26.49M
Net Income Common Stockholders
16.28M3.41M-8.38M82.64M73.82M45.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.81M1.92M5.45M5.18M786.00K2.33M
Total Assets
720.98M753.86M802.86M873.12M646.79M451.62M
Total Debt
207.30M243.20M263.42M299.61M180.77M75.83M
Net Debt
202.50M241.29M257.97M294.43M179.98M73.50M
Total Liabilities
229.51M262.94M286.48M318.60M193.52M92.29M
Stockholders Equity
218.07M490.92M516.38M554.52M453.27M359.33M
Cash FlowFree Cash Flow
27.93M23.63M34.35M18.29M19.50M20.84M
Operating Cash Flow
30.99M25.17M34.43M30.49M24.61M22.37M
Investing Cash Flow
39.97M21.29M33.35M-167.92M-151.75M-61.80M
Financing Cash Flow
-71.07M-50.00M-67.48M143.26M125.81M41.48M

Dexus Convenience Retail REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.97
Price Trends
50DMA
2.94
Positive
100DMA
2.87
Positive
200DMA
2.85
Positive
Market Momentum
MACD
<0.01
Positive
RSI
51.18
Neutral
STOCH
41.67
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 2.97 is below the 20-day moving average (MA) of 2.97, above the 50-day MA of 2.94, and above the 200-day MA of 2.85, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUDXC
63
Neutral
AU$409.14M20.644.00%7.03%-0.80%
61
Neutral
$2.82B10.880.42%8438.92%5.74%-20.95%
$7.26B10.957.73%5.23%
$6.06B-1.94%4.97%
$12.53B18.185.94%4.68%
DEMQV
€1.34B12.716.37%6.72%
AUSCP
67
Neutral
AU$14.71M
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DXC
Dexus Convenience Retail REIT
2.97
0.44
17.39%
CNRAF
Vicinity Centres
1.30
0.11
9.24%
GPTGF
GPT Group
3.18
0.48
17.78%
STGPF
Scentre Group
2.42
0.42
21.00%
DE:MQV
Charter Hall Retail REIT
2.26
0.39
20.86%
AU:SCP
Candy Club Holdings Ltd.
0.14
-61.68
-99.77%

Dexus Convenience Retail REIT Corporate Events

Charter Hall Limited Ceases Substantial Holding in Dexus Convenience Retail REIT
May 30, 2025

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
May 15, 2025

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
Apr 11, 2025

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
Apr 11, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.