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Dexus (AU:DXS)
ASX:DXS

Dexus (DXS) AI Stock Analysis

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AU

Dexus

(Sydney:DXS)

Rating:58Neutral
Price Target:
AU$7.50
▲(9.81%Upside)
Dexus is navigating significant financial challenges, with net losses impacting its valuation score. While the company exhibits strong asset coverage, the profitability concerns reflected in the negative P/E ratio and declining equity are key risks. Technical analysis suggests some potential for upward movement in the stock, but caution is advised due to mixed signals. The attractive dividend yield may offer some compensation for the risks in the current financial performance.

Dexus (DXS) vs. iShares MSCI Australia ETF (EWA)

Dexus Business Overview & Revenue Model

Company DescriptionDexus (DXS) is a leading Australian real estate investment trust (REIT) that specializes in owning, managing, and developing high-quality office, industrial, and retail properties across Australia. With a focus on sustainable and innovative property solutions, Dexus manages a diverse portfolio that caters to various business needs, emphasizing value creation for tenants and investors alike.
How the Company Makes MoneyDexus makes money primarily through rental income generated from its extensive portfolio of office, industrial, and retail properties. The company leases these spaces to a wide range of tenants, ensuring a steady and diversified revenue stream. Additionally, Dexus engages in property development and management services, creating new properties or enhancing existing ones to increase their value. The company also benefits from capital appreciation as property values rise. Key partnerships with large institutional investors and joint ventures further enhance its revenue-generating capabilities by expanding its reach and investment capabilities in the real estate market.

Dexus Financial Statement Overview

Summary
Dexus is experiencing a challenging period with fluctuating revenues and significant net losses. Despite strong asset coverage by equity and a reasonable debt-to-equity ratio, profitability issues and declining equity raise concerns. The company needs to focus on improving operational efficiency and profitability to enhance financial stability.
Income Statement
55
Neutral
Dexus has experienced fluctuating revenue with a slight growth from 2023 to 2024. However, the company reported significant net losses in both 2023 and 2024, indicating profitability challenges. The EBIT margin improved substantially in 2024, but EBITDA turned negative, signaling potential operational inefficiencies or restructuring costs.
Balance Sheet
60
Neutral
The company maintains a reasonable debt-to-equity ratio, but there has been a noticeable decline in stockholders' equity from 2023 to 2024. The equity ratio is strong, indicating good asset coverage by equity, but the decrease in total assets suggests a need for strategic asset management.
Cash Flow
65
Positive
Dexus has a positive operating cash flow, but a decline from previous years, reflecting some operational pressures. The free cash flow remains positive, albeit with reduced growth, which indicates controlled capital expenditure. The operating cash flow to net income ratio is strong due to significant non-cash expenses, but profitability remains a concern.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue1.01B880.90M877.60M863.10M1.02B994.00M
Gross Profit776.42M646.90M574.70M494.60M578.70M584.90M
EBITDA295.78M-6.30M348.80M471.20M448.80M269.40M
Net Income1.09B-1.58B-752.70M1.62B1.14B983.00M
Balance Sheet
Total Assets15.58B15.82B18.54B19.23B18.14B17.61B
Cash, Cash Equivalents and Short-Term Investments55.50M54.00M123.90M75.30M43.50M31.80M
Total Debt4.97B5.00B5.35B4.94B4.95B4.86B
Total Liabilities5.60B5.66B6.28B5.67B5.63B5.53B
Stockholders Equity9.98B10.16B12.26B13.57B12.51B12.08B
Cash Flow
Free Cash Flow822.20M611.10M762.90M553.80M982.90M708.20M
Operating Cash Flow771.90M613.50M770.90M560.10M999.30M714.10M
Investing Cash Flow-269.70M311.00M-579.80M41.20M-698.00M-604.00M
Financing Cash Flow-524.30M-994.40M-142.50M-569.50M-289.60M-108.10M

Dexus Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.83
Price Trends
50DMA
7.15
Negative
100DMA
7.25
Negative
200DMA
7.11
Negative
Market Momentum
MACD
-0.08
Negative
RSI
40.22
Neutral
STOCH
27.26
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 6.83 is below the 20-day moving average (MA) of 6.95, below the 50-day MA of 7.15, and below the 200-day MA of 7.11, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 40.22 is Neutral, neither overbought nor oversold. The STOCH value of 27.26 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

Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUCLW
71
Outperform
AU$2.98B-5.75%5.95%-15.42%65.86%
AUGMG
69
Neutral
$70.75B71.855.14%0.86%9.68%273.05%
AUCHC
63
Neutral
AU$9.25B315.011.03%2.40%-19.75%
AUSGP
63
Neutral
AU$13.40B29.724.54%2.86%18.41%86.24%
59
Neutral
C$1.22B0.89-8.20%5.55%9.89%-25.14%
AUDXS
58
Neutral
$7.35B-9.22%5.49%0.32%28.89%
AUGPT
58
Neutral
$9.56B-1.94%4.79%8.59%16.36%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:DXS
Dexus
6.84
0.58
9.18%
AU:GPT
GPT Group
4.95
1.04
26.73%
AU:CHC
Charter Hall Group
19.54
8.03
69.81%
AU:GMG
Goodman Group
34.39
0.05
0.15%
AU:SGP
Stockland
5.56
1.43
34.56%
AU:CLW
Charter Hall Long WALE REIT
4.19
1.06
33.87%

Dexus Corporate Events

Dexus Reports Portfolio Valuation Growth and Legal Update
Jun 24, 2025

Dexus announced a portfolio valuation increase of approximately $55 million, or 0.4%, as of June 30, 2025, driven by market rental growth in both office and industrial properties. The company also declared an estimated distribution of 18.0 cents per security for the six months ending June 30, 2025, reflecting its updated distribution policy. Additionally, Dexus provided an update on legal proceedings involving its interest in Australia Pacific Airports Corporation, with a rescheduled court hearing and potential implications for shareholders depending on the outcome.

The most recent analyst rating on (AU:DXS) stock is a Buy with a A$8.63 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Announces New Distribution for Stapled Securities
Jun 24, 2025

Dexus has announced a new distribution for its fully paid units stapled securities, with a distribution amount of AUD 0.18 per unit. The ex-date is set for June 27, 2025, and the record date is June 30, 2025, with payments to be made on August 29, 2025. This announcement is part of the company’s regular financial operations and reflects its ongoing commitment to providing returns to its investors. The distribution is related to the financial period ending June 30, 2025, and annual statements will be dispatched to security holders on the payment date.

The most recent analyst rating on (AU:DXS) stock is a Buy with a A$8.63 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Secures Injunction to Protect Shareholder Interests in APAC Dispute
May 21, 2025

Dexus has filed proceedings in the New South Wales Supreme Court to contest a notice from the Australia Pacific Airports Corporation (APAC) Board, obtaining an injunction to protect its shareholders’ interests. This injunction temporarily restores governance and voting rights and prevents any forced sale of Dexus Bloc Shareholder interests until the court’s final ruling in August 2025, with Dexus agreeing to cover potential damages if their claim fails.

The most recent analyst rating on (AU:DXS) stock is a Buy with a A$8.63 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Disputes APAC Board Allegations Over Confidentiality Breach
May 15, 2025

Dexus, acting as a trustee for a significant stake in Australia Pacific Airports Corporation, is facing allegations from the APAC Board regarding a breach of confidentiality in the sale process of its shares. The notice could lead to a compulsory sale process and suspension of certain rights for Dexus Bloc shareholders. Dexus disputes the validity of these allegations and intends to defend its position, as the Dexus Bloc is a substantial part of its third-party funds under management, impacting its management fees.

The most recent analyst rating on (AU:DXS) stock is a Buy with a A$8.63 price target. To see the full list of analyst forecasts on Dexus stock, see the AU:DXS Stock Forecast page.

Dexus Demonstrates Resilience and Sustainability in March 2025 Quarter
May 6, 2025

Dexus has reported a resilient performance for the March 2025 quarter, with strong occupancy rates in its office and industrial portfolios, and robust rent collections. The company has completed significant transactions worth approximately $960 million and increased its stake in New Zealand’s Powerco. Dexus continues to excel in sustainability, ranking in the top 5% globally, and has made progress in its climate and community initiatives. The company is well-positioned to capitalize on opportunities in the real asset market, supported by a strong balance sheet and disciplined capital management.

Dexus Announces Relocation of Sydney Security Registry Office
Apr 11, 2025

Dexus announced a change in the address of its security registry office in Sydney, effective from April 14, 2025. The registry, managed by MUFG Corporate Markets (AU) Limited, will move to a new location at Liberty Place, Level 41, 161 Castlereagh Street, Sydney NSW 2000, while its postal address and contact details remain unchanged.

Dexus Announces Cessation of Performance Rights
Apr 11, 2025

Dexus announced the cessation of 91,988 performance rights due to the lapse of conditional rights, as the conditions for these securities were not met by the specified date. This cessation may impact the company’s capital structure and reflects the challenges in meeting performance conditions, potentially affecting stakeholder perceptions and future strategic planning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: May 17, 2025