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Highlights

  • Dexus reported AFFO of AUD 253.3 million, or 23.6 cents per security, and confirmed a distribution of 19.3 cents per security, representing an 82% payout ratio.
  • Statutory net profit after tax rose to AUD 348.5 million, compared with AUD 10.3 million in HY25, driven by fair valuation gains.
  • The group activated an on-market buyback of up to 10% of securities as it progresses asset divestments and capital initiatives.

Shares in Dexus (ASX:DXS) climbed 6.42% to AUD 6.72 on 18 February 2026 after the property group released its half-year results for the six months to 31 December 2025. Despite positive response from market, underperform rating came from Jefferies, which set a target price of AUD 6.02, below the current trading level.

Earnings and Valuation Uplift

Adjusted funds from operations (AFFO) of AUD 253.3 million were 0.6% higher than the prior corresponding period. Distributions totalled AUD 207.6 million.

Statutory profit increased to AUD 348.5 million, largely reflecting property revaluation gains during the half. Portfolio valuations recorded a 1.0% uplift overall, with office assets rising 0.7% and industrial assets up 1.6%.

Net tangible assets increased 14 cents per security to AUD 8.95 as at 31 December 2025.

Leasing Activity and Portfolio Performance

Office leasing volumes reached 95,300 square metres, nearly double HY25 levels. Waterfront Brisbane is now 71% pre-leased under heads of agreement.

Industrial like-for-like income rose 8.7%, supported by occupancy and development completions. Across the office and industrial portfolio, rent collections remained high at 99.7%.

The Dexus Wholesale Property Fund continued to outperform its benchmark, while the Dexus Wholesale Shopping Centre Fund delivered performance above its three-year benchmark following its platform transition.

Divestments, Capital Management and Liquidity

During the period, Dexus exchanged or settled approximately AUD 0.8 billion of divestments, contributing to AUD 1.4 billion of progress toward its AUD 2 billion FY25–27 divestment target.

On behalf of funds, around AUD 1.4 billion of divestments were exchanged or settled, and the real estate redemption queue was reduced by approximately AUD 1 billion.

Gearing stood at 33.9%, within the 30–40% target range. The group holds AUD 2.5 billion of cash and undrawn facilities, with a weighted average debt maturity of 4.6 years. Approximately 95% of debt was hedged during HY26 at an average rate of 2.9%.

In December, Dexus issued AUD 500 million of subordinated notes in the domestic fixed income market.

Outlook and Buyback

Management indicated that valuations have turned positive, with transaction and fundraising markets showing improvement.

The company has activated an on-market securities buyback of up to 10%, to be executed alongside asset sales and balance sheet initiatives.

Dexus reported higher AFFO, a return to statutory profitability and valuation gains across its portfolio for HY26. The group confirmed a 19.3 cent distribution and commenced a securities buyback program, while continuing divestments and capital recycling. Shares traded above AUD 6.70 following the announcement, despite a broker target of AUD 6.02.

Frequently Asked Questions

  1. What dividend did Dexus declare for HY26?
    Dexus confirmed a distribution of 19.3 cents per security for the half year ended 31 December 2025.
  2. Why did Dexus report a large increase in statutory profit?
    Statutory net profit rose to AUD 348.5 million primarily due to fair valuation gains on property assets, compared to valuation losses in HY25.
  3. What is Dexus’ current gearing level?
    Look-through gearing stands at 33.9%, within the company’s 30–40% target range.