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Dexus
(Sydney:DXS)
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Rating:64Neutral
Price Target:
AU$6.50
â–²(13.44% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by decent underlying financial resilience (steady positive cash flow and manageable leverage) offset by uneven earnings/revenue volatility. Technicals are mildly weak with limited momentum and price below the long-term average. Valuation is a support due to the high yield and moderate P/E, while the latest earnings call adds caution given guidance for lower FY’27 AFFO and unresolved legal/funds-management uncertainties.
Positive Factors
Consistent cash generation
Persistently positive operating and free cash flow supports recurring distributions, debt servicing and reinvestment. Although growth was uneven, cash generation broadly tracked net income, giving Dexus a durable financial base.
Negative Factors
Lower and volatile earnings outlook
Lower expected AFFO reflects reduced trading profits and performance fees, higher financing costs and weaker fund contributions. This highlights dependence on non-recurring income and limits confidence in near-term earnings durability.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Persistently positive operating and free cash flow supports recurring distributions, debt servicing and reinvestment. Although growth was uneven, cash generation broadly tracked net income, giving Dexus a durable financial base.
Read all positive factors
Dexus (DXS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$6.22B
Dividend Yield6.28%
Average Volume (3M)3.80M
Price to Earnings (P/E)13.3
Beta (1Y)0.83
Revenue Growth-28.16%
EPS Growth250.74%
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 Ratio0.06
Price to Book (P/B)0.58
Price to Sales (P/S)7.99
P/FCF Ratio6.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$6.35Price Target Upside10.80% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.56
Revenue Forecast (FY)AU$793.59M
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 through two main earnings streams: (1) property investment income from real estate it owns and operates, and (2) funds and asset management income from managing real estate on behalf of third-party investors.
1) Property investm...
Dexus Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 16, 2027
Earnings Call Sentiment Neutral
The call presented a mix of operational and financial progress (leasing momentum, industrial strength, fundraising, valuation stabilization, cost reduction and a solid balance sheet) alongside material near-term headwinds (APAC litigation and infrastructure fund reviews, higher financing costs, delayed Waterfront project, and expected lower AFFO in FY'27). Management has a clear multi-year transition plan, active capital rotation targets (>$2 billion over two years) and intentions to pursue buybacks and third-party capital deployment, but short-term earnings and legal uncertainties temper the outlook.Positive Updates
Solid AFFO and Distribution
Total AFFO of $484 million for FY'26 with distributions of $0.37 per security and a payout ratio of 82%.
Negative Updates
APAC Litigation and Infrastructure Fund Review
Unfavorable NSW Supreme Court finding on APAC; investors are appealing with court date in October. Legal and appeal costs expensed to date total approximately $60 million and are reflected in NTA, but no provisions made for potential future claims. Infrastructure products and mandates acquired from AMP are under formal review; Dexus holds modest co-investments of around $260 million in these strategies.
Read all updates
Q4-2026 Updates
Positive
Negative
Solid AFFO and Distribution
Total AFFO of $484 million for FY'26 with distributions of $0.37 per security and a payout ratio of 82%.
Read all positive updates
Company Guidance
Guidance for FY‑27: management expects AFFO of $0.375–$0.395 per security and distributions in line with FY‑26 at $0.37 per security (FY‑26 AFFO was $484m with a $0.37 distribution and an 82% payout ratio). They expect FY‑27 earnings to be lower driven by minimal contribution from trading profits and performance fees, higher financing costs, practical completion of Atlassian and allowances for materially lower contributions from funds under review. Balance sheet and capital guidance: look‑through gearing was 33.4% (expected to fall by ~1.5 percentage points after announced divestments), committed development spend is ~$490m over the next 12 months, the group is targeting to release >$2bn of capital over the next two years, and buybacks will be an active lever; funding metrics include a 4.2‑year weighted average debt maturity, $2.5bn of headroom and 91% of debt hedged at an average hedge rate of ~3%. Operationally management expects continued leasing momentum and slightly lower maintenance/ leasing CapEx, while corporate and management costs have been reduced by >$30m since FY‑24 (group corporate costs down 6% in FY‑26).Dexus Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 723.90M | 921.20M | 880.90M | 877.60M | 863.10M |
| Gross Profit | 461.70M | 701.30M | 646.90M | 574.70M | 494.60M |
| EBITDA | 747.80M | 355.70M | -6.30M | -582.90M | 471.20M |
| Net Income | 482.90M | 156.50M | -1.58B | -752.70M | 1.62B |
Balance Sheet | |||||
| Total Assets | 15.22B | 15.39B | 15.82B | 18.54B | 19.23B |
| Cash, Cash Equivalents and Short-Term Investments | 57.80M | 65.30M | 54.00M | 123.90M | 75.30M |
| Total Debt | 4.65B | 4.83B | 5.00B | 5.35B | 4.94B |
| Total Liabilities | 5.25B | 5.48B | 5.66B | 6.28B | 5.67B |
| Stockholders Equity | 9.95B | 9.90B | 10.16B | 12.26B | 13.57B |
Cash Flow | |||||
| Free Cash Flow | 906.20M | 798.10M | 611.10M | 762.90M | 553.80M |
| Operating Cash Flow | 939.20M | 811.30M | 613.50M | 770.90M | 560.10M |
| Investing Cash Flow | -401.20M | -109.60M | 311.00M | -579.80M | 41.20M |
| Financing Cash Flow | -545.50M | -690.40M | -994.40M | -142.50M | -569.50M |
Dexus Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | AU$10.36B | 18.56 | 19.38% | 2.28% | 18.04% | 71.29% | |
76 Outperform | AU$11.05B | 11.29 | 9.44% | 6.12% | 14.63% | 18.93% | |
74 Outperform | AU$9.00B | 8.61 | 7.84% | 4.90% | -7.59% | 178.60% | |
69 Neutral | AU$59.75B | 20.46 | 11.41% | 1.05% | 17.33% | 59.19% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | AU$6.22B | 13.32 | 4.83% | 6.46% | -28.16% | 250.74% | |
56 Neutral | AU$1.58B | 17.90 | 1.57% | 8.60% | -0.03% | ― |
* Real Estate Sector Average
AU:DXS
Dexus
5.89
-1.22
-17.15%
AU:CHC
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22.11
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Goodman Group
28.78
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-14.29%
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4.74
-0.55
-10.41%
AU:SGP
Stockland
4.66
-1.40
-23.15%
AU:GOZ
Growthpoint Properties Australia
2.13
-0.14
-6.00%
Dexus Corporate Events
Dexus Confirms Unchanged Sustainability Assurance Conclusion in 2026 Annual Report
Aug 20, 2026
Dexus has issued an update to the Sustainability Assurance report contained in its 2026 Annual Report, confirming that the assurance conclusion remains unchanged. The reaffirmation of the assurance report suggests that Dexus’s sustainability...
Dexus Releases 2026 Sustainability Data Pack to Deepen ESG Transparency
Aug 20, 2026
Dexus has released its 2026 Sustainability Data Pack, comprising detailed performance metrics and reporting indexes aligned to global standards such as GRI and SASB. The disclosure is designed to be read alongside the company’s 2026 Annual R...
Dexus Publishes 2026 Financial Statements for Operations Trust
Aug 20, 2026
Dexus has released the 2026 Financial Statements for Dexus Operations Trust, complementing the financial disclosures already contained in its 2026 Annual Report for Dexus Property Trust. The move adds transparency around the performance of both ke...
Dexus Releases 2026 Annual Report With Integrated Sustainability Reporting
Aug 20, 2026
Dexus has released its 2026 Annual Report, which includes detailed sustainability reporting and is part of a broader annual reporting suite covering financial results and supporting disclosures. The document will be distributed in hard copy to sec...
Dexus Publishes 2026 Annual Results and Detailed Property Portfolio Data
Aug 19, 2026
Dexus has released its 2026 annual results presentation, detailing performance across its listed portfolio and extensive funds management business. The company has also published a comprehensive property synopsis workbook, providing additional tra...
Dexus hits FY26 guidance, boosts profit and advances capital‑efficient growth strategy
Aug 19, 2026
Dexus reported full‑year 2026 results in line with guidance, posting AFFO of 45.0 cents per security, distributions of 37.0 cents and a sharp rise in statutory profit to $482.2 million, helped by stabilising valuations and a 1% lift in net t...
Dexus Confirms Final Half-Year Distribution Details for 2026
Aug 19, 2026
Dexus has updated its dividend notification, confirming final distribution details for holders of its fully paid stapled securities for the six-month period to 30 June 2026. The announcement formalises the record date of 30 June and the ex-distrib...
Dexus profit jumps despite revenue slide as market value falls
Aug 19, 2026
Dexus reported a 25.4% decline in revenue to $710 million for the year to 30 June 2026, yet statutory net profit surged to $482.2 million, reflecting valuation and structural factors rather than underlying operating growth. Core performance metric...
Dexus Updates Director Ross Du Vernet’s Lapsed Performance Rights
Aug 4, 2026
Dexus has disclosed a change in the indirect interests of director Ross Du Vernet, stemming from the lapsing of performance rights under the FY23 and FY24 long‑term incentive plans. The update details cancellations of 103,145 performance rig...
Dexus reports lapse of over 1 million performance rights
Aug 4, 2026
Dexus has notified the market of the cessation of 1,032,975 performance rights, identified under the ASX security code DXSAB. The rights lapsed on July 29, 2026, because the conditions attached to these conditional securities were not satisfied or...
Dexus Sells Brisbane CBD Tower to Free Capital and Tighten Gearing
Jul 29, 2026
Dexus has agreed to sell its 50% stake in the Premium-grade 480 Queen Street office tower in Brisbane’s CBD, as part of a $700 million transaction shared with Dexus Wholesale Property Fund, with the net price aligning to the June 2026 valuat...
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...
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.