Dexus (AU:DXS)
ASX:DXS
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Dexus
(Sydney:DXS)
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Rating:56Neutral
Price Target:
AU$6.00
▼(-0.50% Downside)
Action:ReiteratedDate: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
Manageable leverage, substantial liquidity headroom and long weighted average debt maturity materially reduce refinancing and interest-rate risk. High hedge coverage and subordinated notes with equity credit expand funding flexibility, supporting development funding, buybacks and redemptions without forcing distress sales.
Negative Factors
Negative revenue growth & weak ROE
Sustained revenue decline and historically negative ROE indicate structural profitability and growth challenges. Even with stable cash conversion, weaker top-line trends limit internal funding for development, compress margins over time and constrain the company's ability to sustainably lift shareholder returns without strategic changes.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Manageable leverage, substantial liquidity headroom and long weighted average debt maturity materially reduce refinancing and interest-rate risk. High hedge coverage and subordinated notes with equity credit expand funding flexibility, supporting development funding, buybacks and redemptions without forcing distress sales.
Read all positive factors
Dexus (DXS) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$6.49B
Dividend Yield5.32%
Average Volume (3M)3.80M
Price to Earnings (P/E)5.3
Beta (1Y)1.01
Revenue Growth4.52%
EPS GrowthN/A
CountryAU
Employees972
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.33
Shares Outstanding1,075,565,200
10 Day Avg. Volume4,226,989
30 Day Avg. Volume3,800,366
Financial Highlights & Ratios
PEG Ratio-0.41
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$7.07Price Target Upside17.28% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.63
Revenue Forecast (FY)AU$902.34M
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 ...
How the Company Makes Money
Dexus generates earnings from two broad sources: (1) income and value creation from property it owns and develops, and (2) fees from managing property and capital for others.
1) Property ownership (investment portfolio)
- Rental income: The core ...
Dexus Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 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 | 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
Negative
6.03
Price Trends
6.47
Negative
6.72
Negative
6.85
Negative
Market Momentum
-0.15
Positive
35.31
Neutral
55.01
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 6.03 is below the 20-day moving average (MA) of 6.22, below the 50-day MA of 6.47, and below the 200-day MA of 6.85, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 35.31 is Neutral, neither overbought nor oversold. The STOCH value of 55.01 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | AU$10.39B | 11.82 | 8.50% | 4.29% | 4.75% | 170.39% | |
70 Outperform | AU$9.00B | 10.60 | 19.38% | 1.97% | 15.06% | 47.66% | |
69 Neutral | AU$8.75B | 10.58 | 7.84% | 4.41% | 12.66% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | AU$52.65B | 19.16 | 7.19% | 1.02% | 16.87% | ― | |
56 Neutral | AU$6.49B | 5.34 | 4.78% | 5.32% | 4.52% | ― | |
53 Neutral | AU$1.62B | 7.35 | 1.57% | 8.12% | -0.33% | 58.26% |
* Real Estate Sector Average
AU:DXS
Dexus
5.99
-0.79
-11.68%
AU:CHC
Charter Hall Group
18.68
2.47
15.24%
AU:GMG
Goodman Group
25.41
-3.61
-12.45%
AU:GPT
GPT Group
4.53
0.30
7.12%
AU:SGP
Stockland
4.28
-0.47
-9.91%
AU:GOZ
Growthpoint Properties Australia
2.15
0.03
1.22%
Dexus Corporate Events
Dexus Issues Administrative Update to On-Market Buy-Back Details
Mar 23, 2026
Dexus has updated its previously announced on-market buy-back of fully paid stapled securities trading under the ASX code DXS. The latest filing, dated 24 March 2026, amends earlier disclosures by removing information from a specific section, whil...
Dexus Reports Daily Progress on On‑Market Securities Buy‑Back
Mar 22, 2026
Dexus has provided an updated notification to the ASX regarding its on‑market buy‑back of fully paid stapled securities under the code DXS. The company reported that, as of 23 March 2026, it had repurchased a cumulative 2,507,461 secur...
Dexus Reports Daily Progress on On-Market Security Buy-Back
Mar 19, 2026
Dexus has provided an updated notification to the ASX regarding its ongoing on-market buy-back of DXS fully paid stapled securities. The update confirms that, as of 20 March 2026, the group has repurchased a cumulative 2,103,059 securities before ...
Dexus updates market on progress of on‑market security buy‑back
Mar 17, 2026
Dexus has provided an updated notification to the ASX on its ongoing on-market buy-back of fully paid stapled securities under the DXS code. The filing confirms that a total of 1,380,407 securities had been repurchased before the previous trading ...
Dexus Updates Market on Progress of On-Market Security Buy-Back
Mar 9, 2026
Dexus has provided an updated notification to the ASX on its ongoing on-market buy-back of fully paid stapled securities under the code DXS. The latest daily report states that a total of 387,685 securities had been repurchased before the previous...
Dexus Updates Market on Progress of On‑Market Security Buy‑Back
Mar 5, 2026
Dexus has provided an updated notification to the ASX regarding its ongoing on-market buy-back of fully paid stapled securities under code DXS. The latest daily disclosure, dated 6 March 2026, reports that 170,275 securities were repurchased on th...
Dexus Pays HY26 Distribution as Markets and Valuations Improve
Feb 27, 2026
Dexus has confirmed payment of its distribution for the six months to 31 December 2025, with security holders receiving 19.3 cents per security in line with its updated distribution policy. The payout ratio stands at 82%, and distribution statemen...
Dexus Director Varya Davidson Acquires First Indirect Stake in Stapled Securities
Feb 25, 2026
Dexus has reported a change in director Varya Davidson’s interests following an on‑market purchase of 27,500 ordinary stapled securities by Jonnim Pty Ltd as trustee for the Jonnim Trust. The acquisition, valued at about $180,504, repr...
Dexus Director Increases Indirect Holding in Stapled Securities
Feb 24, 2026
Dexus has disclosed a change in director Rhoda Harrington’s indirect interest in the company’s stapled securities, lodged under ASX listing rule 3.19A.2. The interest is held through Phillippo Holmes Pty Limited, reflecting the directo...
Dexus director Jon Gidney acquires initial stake in stapled securities
Feb 24, 2026
Dexus has disclosed a change in director Jon Gidney’s relevant interests following an on‑market purchase of 12,000 stapled securities on 19 February 2026. The securities, acquired for $80,940.58 via the El Calamar Superannuation Fund i...
Dexus Appoints Varya Davidson to Board With No Initial Security Holdings
Feb 4, 2026
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....
Dexus adds energy transition specialist Varya Davidson to board
Jan 30, 2026
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...
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.