Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • DXI's FY25 FFO per security rose 4.6% to 18.2 cents, exceeding initial guidance.

  • Net profit after tax reached AUD 84.2 million in FY25, compared to a loss in the prior year.

  • Leasing agreements covered 209,600 square metres, including significant pre-leasing for developments.

Dexus Industria REIT (ASX:DXI) announced its full-year results for the 12 months ended 30 June 2025, delivering upgraded guidance, income growth, and portfolio reweighting toward industrial assets. The company reported FY25 Funds From Operations (FFO) per security of 18.2 cents, up 4.6% on the prior year and above the initial guidance of 17.8 cents. Distributions per security were 16.4 cents. The statutory net profit after tax was AUD 84.2 million, compared to a loss of AUD 11.8 million in the prior year.

On 13 August 2025, DXI shares dropped by 3.07% at AUD 2.84 per share.

Financial Performance

The increase in FFO was supported by development completions and like-for-like portfolio income growth of 5.9%, underpinned by average rent reviews of 3.5%. These factors offset reduced property income from divestments and higher net finance costs.

Valuation gains during the year contributed to a net uplift of AUD 37.6 million, or 2.6% on prior book values, increasing Net Tangible Assets (NTA) per security by 10 cents, or 3.1%, to AUD 3.34. Look-through gearing was 29.0%, remaining below the target range of 30–40%.

Portfolio Activity and Leasing

DXI secured leasing on 209,600 square metres across its portfolio, including 93,100 square metres of development leasing, doubling the volume achieved in the prior year. Occupancy remained high at 98.6%, with the industrial portfolio achieving 99.5% occupancy. Two of the largest tenants at Jandakot were renewed across 73,500 square metres, extending lease expiries to FY31 and beyond.

New developments totalling 44,000 square metres were completed at ASCEND Industrial Estate at Jandakot Airport and in Moorebank. The development pipeline at ASCEND is valued at AUD 230 million, with more than 76% of committed projects pre-leased and targeting yields on cost of 6.25% and above.

Strategic Reweighting

In FY25, DXI advanced its transition to a focused industrial REIT. The expected divestment of Brisbane Technology Park (BTP) for AUD 155.5 million and the acquisition of an urban logistics warehouse in Glendenning, NSW, are intended to increase exposure to growth-oriented industrial assets, particularly in the Sydney market.

BTP delivered like-for-like income growth of 13.2% during the year with an average income yield of 7.8%, benefiting from proactive asset management.

Sustainability Initiatives

DXI continued to align with the Dexus Sustainability Strategy, sourcing 100% renewable electricity for assets under operational control and maintaining carbon neutrality for Scope 1, 2 and some Scope 3 emissions. During the year, the REIT achieved a 4.9-star average NABERS Energy rating and a 4.8-star average NABERS Water rating.

The installation of rooftop solar capacity reached 1.96MW across selected assets, with an additional 532kW in progress. Waste management initiatives at BTP diverted more than 1,200kg of e-waste from landfill.

DXI expects to deliver FY26 FFO per security of 17.3 cents and distributions per security of 16.6 cents, representing a forecast distribution yield of 5.8%.