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Dexus
(Sydney:DXS)
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Rating:56Neutral
Price Target:
AU$6.00
▼(-1.96% Downside)
Action:Reiterated
Date: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 & funding flexibility
Low-to-moderate gearing, long weighted average debt maturity and extensive hedging materially reduce refinancing and interest-rate risk over the next 2–4 years. The A$500m subordinated note and A$2.5bn headroom provide durable capacity for capital recycling, developments and opportunistic acquisitions without stressing liquidity.
Negative Factors
Office income headwinds & negative like‑for‑like
Structural weakness in parts of the office portfolio and remaining high‑profile vacancies pressure recurring rental income and FFO sustainability. Even with improving leasing momentum, negative like‑for‑like income shows recovery is incomplete, leaving medium‑term downside to distributions if leasing and occupancy fail to re‑rate materially.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength & funding flexibility
Low-to-moderate gearing, long weighted average debt maturity and extensive hedging materially reduce refinancing and interest-rate risk over the next 2–4 years. The A$500m subordinated note and A$2.5bn headroom provide durable capacity for capital recycling, developments and opportunistic acquisitions without stressing liquidity.
Read all positive factors
Dexus (DXS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$6.05B
Dividend Yield5.32%
Average Volume (3M)3.80M
Price to Earnings (P/E)12.9
Beta (1Y)0.80
Revenue Growth-1.07%
EPS GrowthN/A
CountryAU
Employees900
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.44
Shares Outstanding1,072,590,000
10 Day Avg. Volume4,226,989
30 Day Avg. Volume3,800,366
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)0.72
Price to Sales (P/S)7.75
P/FCF Ratio8.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$6.62Price Target Upside8.10% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.58
Revenue Forecast (FY)AU$821.32M
Dexus Business Overview & Revenue Model
Company Description
Dexus stands as a premier Australian real estate entity, meticulously managing a high-quality, Australian-focused property portfolio valued at $44.3 billion. Our success is fundamentally built upon strong relationships, as we are dedicated to part...
How the Company Makes Money
Dexus makes money primarily through (1) income generated from its investment property interests and (2) fees earned from managing real assets on behalf of third-party investors.
1) Net property income from owned assets: Dexus earns rental income ...
Dexus Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive operational and financial picture: portfolio valuations turned positive, leasing momentum accelerated (notably in office and industrial), strong industrial returns and development pre‑leasing (Atlassian, Waterfront) supported confidence, capital management actions (divestments, subordinated notes issuance, ~$950m equity raised and a 10% buyback) strengthen balance sheet flexibility. Offsetting these positives are near‑term pressures: office FFO impacts from divestments and vacancies, continued fund liquidity/redemption work, and guidance that performance fees and trading profits will be materially lower in FY27. On balance the positives and progress on strategic priorities materially outweigh the challenges, but management flagged some lumpy and timing‑sensitive items that could affect near-term earnings.Positive Updates
AFFO, distributions and NTA
Delivered AFFO of $253 million and distributions per security of $0.193 (payout ratio 82%). Statutory net profit and NTA increased to $8.95 per security; reaffirmed FY26 AFFO guidance of $0.445–$0.455 and distributions guidance of $0.37 per security.
Negative Updates
Office income headwinds and FFO reduction
Office FFO reduced primarily due to divestments and lower average occupancy; effective like‑for‑like income decline of 2.3% in the office portfolio. Certain vacancies (80 Collins St and 30 Hickson Rd) remain challenging and are skewing short-term results.
Read all updates
Q2-2026 Updates
Positive
Negative
AFFO, distributions and NTA
Delivered AFFO of $253 million and distributions per security of $0.193 (payout ratio 82%). Statutory net profit and NTA increased to $8.95 per security; reaffirmed FY26 AFFO guidance of $0.445–$0.455 and distributions guidance of $0.37 per security.
Read all positive updates
Company Guidance
Management reaffirmed guidance for the 12 months to 30 June 2026 of AFFO $0.445–$0.455 per security and distributions of $0.37 per security (H1 AFFO was $253m, H1 distribution $0.193 and payout ratio 82%, NTA $8.95). They flagged FY27 performance fees and trading profits will be materially lower (H1 performance fees $19m, $16m secured for H2; trading profits expected to total ~A$41m for FY26 with the bulk realized in H1), and set out capital-management metrics including look-through gearing toward the lower end of the 30–40% target, $2.5bn headroom, weighted average debt maturity 4.6 years, 95% of debt hedged at an average ~2.9%, and a A$500m subordinated note issuance (margins ~1.75–1.85% over BBSW with 50% equity credit). Committed development spend remaining is A$1.2bn over four years (A$360m expected in H2 FY26), with strong pre‑leasing (Atlassian 100% pre‑leased on a 15‑year lease with 4% p.a. increases; Waterfront 71% pre‑leased and a 40% uplift in net effective rent versus two years ago; office committed book ~83% pre‑leased with c.3.7% fixed annual increases; industrial committed book ~68% pre‑leased with ~3% annual increases), and the group reiterated capital recycling targets (A$1.4bn divested since 30 June 2024 toward a A$2bn target), raised >A$950m third‑party equity (A$640m new commitments, >A$280m secondaries), reduced the real‑estate redemption queue by ~A$1bn and activated an on‑market buyback of up to 10% of securities.Dexus Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
60
Neutral
| 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 | 560.68M | 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
Neutral
6.12
Price Trends
5.64
Negative
5.81
Negative
6.26
Negative
Market Momentum
<0.01
Negative
53.26
Neutral
85.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DXS, the sentiment is Neutral. The current price of 6.12 is above the 20-day moving average (MA) of 5.55, above the 50-day MA of 5.64, and below the 200-day MA of 6.26, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 85.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:DXS.
Dexus Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | AU$10.36B | 19.42 | 19.38% | 1.97% | 18.04% | 71.29% | |
69 Neutral | AU$9.27B | 11.38 | 7.84% | 4.41% | 3.78% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | AU$59.52B | 35.29 | 7.19% | 1.02% | 1.76% | 73.69% | |
64 Neutral | AU$9.69B | 11.26 | 8.50% | 4.29% | 9.71% | 93.78% | |
56 Neutral | AU$6.05B | 12.89 | 4.78% | 5.32% | -1.07% | ― | |
53 Neutral | AU$1.65B | 44.65 | 1.57% | 8.12% | -0.81% | ― |
* Real Estate Sector Average
AU:DXS
Dexus
5.63
-0.85
-13.09%
AU:CHC
Charter Hall Group
21.98
2.90
15.18%
AU:GMG
Goodman Group
29.25
-4.59
-13.56%
AU:GPT
GPT Group
4.80
0.03
0.71%
AU:SGP
Stockland
4.00
-1.14
-22.25%
AU:GOZ
Growthpoint Properties Australia
2.16
-0.02
-1.01%
Dexus Corporate Events
Dexus sets October court date in escalating APAC appeals battle
Jul 15, 2026
Dexus has provided an update on ongoing legal proceedings related to the APAC matter involving members of the Dexus Bloc and Rest Infrastructure Trust, with the New South Wales Court setting a three‑day hearing for the associated appeals sta...
Dexus Cancels 48,493 Unvested Performance Rights After Conditions Lapse
Jul 7, 2026
Dexus has announced the cessation of 48,493 performance rights, recorded under the ASX security code DXSAB, following the lapse of conditional rights that did not meet, or could no longer meet, their specified performance conditions. The lapse, ef...
Dexus Issues 567,463 New Stapled Securities Following Conversion of Unquoted Options
Jul 7, 2026
Dexus has notified the market of the issue and transfer of 567,463 fully paid units in its stapled securities, listed on the ASX under the code DXS, following the conversion or exercise of previously unquoted options or other convertible securitie...
Dexus valuations show marginal portfolio dip amid stabilising property market
Jul 5, 2026
Dexus has completed external valuations on 175 assets, including 27 office and 148 industrial properties, as at 30 June 2026, reporting an estimated $24 million, or 0.2%, decline in book values across its stabilised and development portfolio over ...
Dexus Bloc Shareholders Appeal NSW Court Ruling in APAC Dispute
Jun 25, 2026
Dexus has disclosed that remaining members of the Dexus Bloc shareholders have lodged an appeal against a New South Wales Supreme Court ruling delivered on 29 May 2026, which upheld the validity of a Default Notice relating to the APAC matter. The...
Dexus sets 17.7 cent distribution for June 2026 half-year
Jun 23, 2026
Dexus has declared an estimated distribution of 17.7 cents per security for the six months to 30 June 2026, to be paid by Dexus Property Trust. The proposed timetable sets an ex-distribution date of 29 June 2026, a record date of 30 June 2026 and ...
Dexus Declares Year-End Distribution of AUD 0.177 Per Security
Jun 23, 2026
Dexus has declared a distribution of AUD 0.177 per fully paid stapled security for the six-month period ending 30 June 2026, underscoring the trust’s ongoing income return to investors. The distribution will trade ex on 29 June, with a recor...
Dexus Faces Uncertain Impact After Court Backs Default Notice in APAC Dispute
May 29, 2026
The NSW Supreme Court has ruled that a Default Notice issued in relation to the Dexus Bloc’s shareholding in Australia Pacific Airports Corporation is valid, which would ordinarily trigger a compulsory sale process at fair market value and s...
Dexus lifts occupancy and fund performance as it deepens capital-light growth push
May 4, 2026
Dexus reported a stronger March 2026 quarter, highlighting increased office occupancy of 93.1%, well above market averages, and a resilient industrial portfolio at 96.9% occupancy with solid leasing volumes across stabilised and development assets...
Dexus and Boral to Develop One of Australasia’s Largest Logistics Precincts in Melbourne
May 4, 2026
Dexus has entered a joint venture with Boral to transform 630 hectares of Boral-owned land at Ravenhall, 20 kilometres from Melbourne’s CBD, into a major logistics precinct with a potential lettable area of 2.5 million square metres, expecte...
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.