Dexus (DXS) AI Stock Analysis

• Market Cap: AU$6.94B
• Dividend Yield: 5.32%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 5.3
• Beta (1Y): 0.98
• Revenue Growth: 4.52%
• EPS Growth: N/A
• Country: AU
• Employees: 972
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.33
• Shares Outstanding: 1,075,565,200
• 10 Day Avg. Volume: 4,226,989
• 30 Day Avg. Volume: 3,800,366
• PEG Ratio: -0.41
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 7.75
• P/FCF Ratio: 8.95
• 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$7.19
• Price Target Upside: 9.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.63
• Revenue Forecast (FY): AU$903.33M

• Rating: 56 Neutral
• Price Target: AU$6.50 ▼(-1.22% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven by stable but mixed fundamentals (solid leverage/equity position and cash conversion, but weak revenue growth and negative recent ROE), combined with clearly bearish technicals (below key moving averages, negative MACD). An attractive dividend yield and reaffirmed AFFO/distribution guidance provide partial support, but elevated valuation (high P/E) and caution on FY27 fee/trading profit normalization cap upside.

Positive Factors

Balance sheet strength

Dexus's strong equity base, sizeable headroom and long weighted debt maturity materially reduce refinancing and liquidity risk. High hedge coverage and a subordinated note issuance providing equity credit increase financial flexibility to fund development, manage redemptions and support buybacks over the medium term.

Pre-leased development pipeline

High-quality, long-dated pre-leases lock in predictable cashflows and rent escalation, de-risking major developments. Assets like Atlassian Central provide stable, indexed income once operational, supporting long-term AFFO and reducing execution risk associated with new supply in office and waterfront precincts.

Third-party capital growth

Meaningful growth in third‑party capital expands recurring fee income and aligns client capital with Dexus's development pipeline. Higher FUM and successful fundraises improve fee resilience, diversify earnings away from asset sales, and create structural scale benefits in asset management over multiple years.

Negative Factors

FY27 fee and trading profit risk

Management's guidance that FY27 performance fees and trading profits will drop materially highlights volatility in non-core earnings. Because these items are lumpy, a multi-year reduction would compress AFFO and limit capital available for development or distributions, increasing reliance on recurring rental and fee income.

Office income headwinds

Persistent office vacancies and depressed like‑for‑like income indicate structural demand weaknesses in some precincts. Elevated incentives and selective divestments can alleviate near-term cash drag but may require ongoing leasing spend, capex or discounted rents, pressuring long-term office returns and FFO conversion.

Negative revenue and slowing FCF growth

Material negative revenue growth and weaker free cash flow growth indicate operating pressures or impacts from asset rotations. Slower cash generation limits reinvestment capacity, constrains development funding from internal cash, and increases dependence on external capital to meet growth or distribution targets over the medium term.

Dexus Business Overview & Revenue Model

Company Description

Dexus is one of Australia's leading real estate groups, proudly managing a high-quality Australian property portfolio valued at $44.3 billion. We believe that the strength and quality of our relationships will always be central to our success and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $16.5 billion of office and industrial properties. We manage a further $15.6 billion of office, retail, industrial and healthcare properties for third party clients. The group's $11.4 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.6 million square metres of office workspace across 51 properties, we are Australia's preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by more than 29,000 investors from 24 countries. With 36 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk adjusted returns for investors.

How the Company Makes Money

Dexus generates revenue primarily through leasing and rental income from its owned properties. The company leases office and industrial spaces to a range of tenants, including corporations and government entities, which provides a stable cash flow. Additionally, Dexus earns management fees from its investment management services, where it manages assets on behalf of third-party investors. This revenue model is bolstered by long-term lease agreements, which help ensure consistent income. Key partnerships with institutional investors and strategic collaborations with developers further enhance its financial performance, allowing Dexus to expand its portfolio and capitalize on growth opportunities in the real estate sector.

Dexus Financial Statement Overview

Summary

Solid balance sheet with moderate leverage (debt-to-equity 0.49) and strong equity ratio (64.30%), plus stable cash conversion (FCF roughly matching net income). Offsetting this, revenue growth is negative (-9.08%), free cash flow growth has dipped (-2.93%), and ROE has been negative in recent years, indicating profitability and growth challenges.

Income Statement

Dexus has shown a strong gross profit margin of 76.13% in the latest year, indicating efficient cost management. However, the revenue growth rate has been negative at -9.08%, reflecting a decline in sales. The net profit margin improved significantly to 16.99% from a negative margin in the previous year, showing a turnaround in profitability. Despite these improvements, the EBIT and EBITDA margins have decreased, suggesting potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.49 indicates a moderate level of leverage, which is manageable. The equity ratio stands at 64.30%, reflecting a strong equity base. However, the return on equity has been negative in recent years, indicating challenges in generating returns for shareholders. The balance sheet remains stable with a strong equity position, but profitability needs improvement.

Cash Flow

Dexus has experienced a slight decline in free cash flow growth at -2.93%, which could impact future investments. The operating cash flow to net income ratio is healthy at 0.55, indicating good cash generation relative to net income. The free cash flow to net income ratio is nearly 1, suggesting that most of the net income is being converted into free cash flow. Overall, cash flow generation is stable but shows signs of slowing growth.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	908.00M	921.20M	880.90M	877.60M	863.10M	1.02B
Gross Profit	244.03M	701.30M	646.90M	574.70M	494.60M	578.70M
EBITDA	532.91M	355.70M	-6.30M	-582.90M	471.20M	448.80M
Net Income	476.50M	156.50M	-1.58B	-752.70M	1.62B	1.14B
Balance Sheet
Total Assets	15.31B	15.39B	15.82B	18.54B	19.23B	18.14B
Cash, Cash Equivalents and Short-Term Investments	74.70M	65.30M	54.00M	123.90M	75.30M	43.50M
Total Debt	4.75B	4.83B	5.00B	5.35B	4.94B	4.95B
Total Liabilities	5.26B	5.48B	5.66B	6.28B	5.67B	5.63B
Stockholders Equity	10.03B	9.90B	10.16B	12.26B	13.57B	12.51B
Cash Flow
Free Cash Flow	1.17B	798.10M	611.10M	762.90M	553.80M	982.90M
Operating Cash Flow	1.16B	811.30M	613.50M	770.90M	560.10M	999.30M
Investing Cash Flow	-591.80M	-109.60M	311.00M	-579.80M	41.20M	-698.00M
Financing Cash Flow	-547.20M	-690.40M	-994.40M	-142.50M	-569.50M	-289.60M

Dexus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DXS, the sentiment is Negative. The current price of 6.58 is above the 20-day moving average (MA) of 6.53, below the 50-day MA of 6.74, and below the 200-day MA of 6.90, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 47.35 is Neutral, neither overbought nor oversold. The STOCH value of 52.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:DXS.

Dexus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGP	75 Outperform	AU$11.87B	11.82	7.99%	4.29%	4.75%	170.39%
CHC	70 Outperform	AU$9.93B	10.60	24.58%	1.97%	15.06%	47.66%
GPT	69 Neutral	AU$9.31B	10.58	3.56%	4.41%	12.66%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GMG	65 Neutral	$57.60B	19.16	7.99%	1.02%	16.87%	―
DXS	56 Neutral	AU$6.94B	5.34	1.32%	5.32%	4.52%	―
CLW	54 Neutral	AU$2.64B	4.72	3.57%	6.14%	-9.63%	―

Dexus Corporate Events

Dexus Appoints Varya Davidson to Board With No Initial Security Holdings

Dexus has appointed Varya Davidson as a director effective 1 February 2026, and has lodged an initial director’s interest notice with the ASX confirming that she currently holds no relevant interests in Dexus securities or related contracts. The appointment expands the board without any immediate change to the company’s security ownership structure, signalling governance evolution rather than a shift in capital alignment or insider holdings at this stage.

The most recent analyst rating on (AU:DXS) stock is a Hold with a A$7.34 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus adds energy transition specialist Varya Davidson to board

Dexus has appointed Varya Davidson as an independent non‑executive director to the Board of Dexus Funds Management Limited, effective 1 February 2026, strengthening its governance and strategic capabilities ahead of her standing for election at the company’s October 2026 Annual General Meeting. Davidson brings three decades of global consulting experience in energy transition, sustainability, innovation and organisational transformation, including senior roles at PwC Australia and Strategy&, and will serve on Dexus’s Nomination & Governance, People & Remuneration, and Sustainability committees, a move that underscores the group’s focus on climate and sustainability issues and is likely to support its positioning as a major real assets manager navigating the energy transition and evolving ESG expectations.

The most recent analyst rating on (AU:DXS) stock is a Buy with a A$7.38 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Appoints New Director Jon Gidney With No Current Security Holdings

Dexus has appointed Jon Gidney as a director effective 17 December 2025, with the company disclosing that he currently holds no relevant interests in Dexus stapled securities or related contracts. The appointment signals a board refresh with transparent confirmation that the new director joins without an existing equity position in the group, information that may be relevant for investors monitoring governance, alignment of interests and future board-level decision-making at the property group.

The most recent analyst rating on (AU:DXS) stock is a Hold with a A$7.80 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Announces Portfolio Valuation Increase and Distribution Details

Dexus announced an increase in the valuation of its portfolio, with 174 of its 175 assets valued, resulting in an estimated increase of $83 million or 0.7% on book values for the six months ending December 2025. The office portfolio saw a 0.4% increase due to market rental growth, while the industrial portfolio increased by 1.4%. Additionally, Dexus declared an estimated distribution of 19.3 cents per security for the same period, with payment scheduled for February 2026. This valuation growth reflects Dexus’s strong market positioning and its ability to outperform the broader market with well-located, high-quality properties.

The most recent analyst rating on (AU:DXS) stock is a Sell with a A$7.95 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Announces New Dividend Distribution for Stapled Securities

Dexus has announced a new dividend distribution for its fully paid units stapled securities, with a distribution amount of AUD 0.193 per unit. The dividend relates to a six-month period ending on December 31, 2025, with a record date of December 31, 2025, and a payment date set for February 27, 2026. This announcement reflects Dexus’s ongoing commitment to providing value to its investors and maintaining its strong position in the real estate market.

The most recent analyst rating on (AU:DXS) stock is a Sell with a A$7.95 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Appoints Jon Gidney as Non-Executive Director

Dexus has appointed Jon Gidney as a non-executive director to the Board of Dexus Funds Management Limited, effective December 17, 2025. With over 30 years of experience in investment banking and a strong background in global capital markets, Mr. Gidney is expected to bring valuable expertise to the board. His appointment is seen as a strategic move to enhance Dexus’s governance and strategic capabilities, although he is not currently considered an independent director due to his previous employment with Citi, a financial advisor to Dexus. His independence status will be revisited before the 2026 AGM.

The most recent analyst rating on (AU:DXS) stock is a Sell with a A$7.95 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Updates on Director’s Interest and Incentive Plans

Dexus announced a change in the director’s interest, with Ross Du Vernet acquiring 919,505 performance rights under the FY25 and FY26 Long Term Incentive Plans. This move reflects Dexus’s commitment to aligning executive incentives with company performance, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:DXS) stock is a Hold with a A$7.50 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Announces Cessation of Performance Rights

Dexus has announced the cessation of 35,118 performance rights due to the conditions for these securities not being met or becoming incapable of being satisfied. This development may impact the company’s capital structure and could have implications for stakeholders, particularly in terms of performance-based incentives.

The most recent analyst rating on (AU:DXS) stock is a Hold with a A$7.50 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Issues New Stapled Securities to Enhance Capital Structure

Dexus has announced the issuance of 30,581 fully paid units of stapled securities, marking a significant move in its financial operations. This issuance reflects the company’s ongoing efforts to optimize its capital structure and enhance shareholder value, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (AU:DXS) stock is a Hold with a A$7.50 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.