Highlights

  • Dexus reported statutory net profit after tax of $482.2 million, up from $136.1 million in FY25.
  • AFFO was $483.9 million, equivalent to 45.0 cents per security, in line with FY26 guidance.
  • Distributions were $397.4 million, or 37.0 cents per security, with the per-security distribution unchanged from FY25.
  • Look-through gearing was 33.4%, while office and industrial occupancy stood at 95.7% and 94.6%, respectively.

Dexus (ASX:DXS) reported its results for the 12 months ended 30 June 2026, delivering the AFFO and distribution outcomes previously guided by the group. AFFO was $483.9 million, or 45.0 cents per security, while distributions totalled $397.4 million, or 37.0 cents per security. Statutory NPAT increased to $482.2 million from $136.1 million a year earlier, with the company attributing the change primarily to stabilising Capitalisation rates and related Revaluation movements. DXS shares were trading at $5.83, up 0.52% or $0.03 at 12:21 pm on 20 August 2026. Dexus has also scheduled its FY26 results briefing for 20 August.

FY26 Earnings and Distribution

Dexus recorded AFFO of $483.9 million in FY26, unchanged at 45.0 cents per security from the FY25 guidance outcome. Distributions amounted to $397.4 million, compared with $398.0 million in FY25, representing a modest decline in total distributions of about 0.2%. On a per-security basis, however, distributions remained unchanged at 37.0 cents. The FY26 Payout Ratio was 82.1%.

The statutory earnings result moved substantially higher. NPAT rose by $346.1 million, or about 254%, from $136.1 million in FY25 to $482.2 million in FY26. The company said the increase was primarily associated with stabilising capitalisation rates and revaluation movements.

Property Portfolio Maintains High Occupancy

Dexus reported office occupancy of 95.7% at the end of FY26, while industrial portfolio occupancy was 94.6%. Rent collections were reported at 99.7%.

The group also reported performance across its wholesale property funds. Dexus Wholesale Property Fund recorded its strongest one-year return in almost four years and outperformed its benchmark across all reported periods. The Dexus Wholesale Shopping Centre Fund also outperformed its benchmark over the one-, two-, three-, five- and seven-year periods.

Customer Net Promoter Scores increased across all reported sectors, including office, industrial, retail and healthcare.

Capital Management and Asset Transactions

Look-through gearing stood at 33.4%, remaining within Dexus's stated 30% to 40% target range. The company said gearing would benefit from proceeds from asset sales announced after 30 June 2026.

Dexus reported $2.0 billion of Equity raised across funds during the year, including a $500 million commitment to the Dexus Wholesale Property Fund and more than $1.1 billion of secondary unit transactions. The group also exchanged or settled approximately $1.9 billion of divestments during FY26. Since FY24, total divestments reached $2.5 billion, exceeding the previously stated $2 billion FY25-FY27 target.

Strategic Review and FY27 Outlook

Dexus has commenced a strategic review of infrastructure funds and mandates transferred to the group through the 2023 Amp Capital transaction. The company said the review is intended to address issues that have emerged and determine a path forward for investors.

The group also secured an agreement with Boral for capital-efficient access to a long-dated development pipeline, subject to rezoning and business-plan approvals. The potential lettable area associated with the pipeline is approximately 2.5 million square metres.

For FY27, Dexus expects earnings to reflect lower trading profits and performance fees, continuing headwinds in some funds, higher finance costs and the practical completion of Atlassian Central. The company expects security-holder distributions to remain in line with the previous year while focusing on asset performance, new capital, cost management and the infrastructure funds review.

Conclusion

Dexus enters FY27 after delivering its FY26 guidance, with AFFO per security and distributions per security unchanged from the previous year and statutory NPAT materially higher. The group also reported 33.4% look-through gearing, high occupancy across its office and industrial portfolios, $2.0 billion of third-party equity raised and divestments exceeding its FY25-FY27 target. At the same time, management has identified lower trading profits and performance fees, continuing funds-related headwinds and higher finance costs as factors affecting FY27 earnings.