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Highlights

  • Dexus shares fall 3.3% to AU$6.98, marking the biggest intraday drop since December 2024.

  • Legal battle escalates over alleged confidentiality breach concerning its 27% stake in Australia Pacific Airports Corporation (APAC).

  • Potential forced divestment of Melbourne Airport stake adds investor concern despite YTD gains of 5.1%.

Dexus Ltd (ASX:DXS) shares tumbled by 3.3% to AUD 6.98 during Wednesday trading, hitting their lowest level since April 11. This marks the real estate investment trust’s largest intraday percentage decline since December 30, 2024, as investor sentiment weakens amid a legal dispute with Australia Pacific Airports Corporation (APAC).

The property giant, which holds a 27% indirect stake in APAC through its investment vehicle Dexus Bloc, has launched legal proceedings against APAC’s board following a notice issued last week. APAC, the operator of Melbourne and Launceston airports, accused Dexus of breaching confidentiality agreements related to its investment.

The core of the dispute lies in APAC’s claim that Dexus Bloc shared sensitive information in violation of existing confidentiality terms—an allegation Dexus firmly denies. The real asset manager said it is now seeking judicial intervention to contest the notice and protect its stake in the airport group.

Despite the sharp drop today, Dexus shares are still up 5.1% year-to-date.

However, the potential regulatory and financial implications of the legal spat with APAC have introduced fresh uncertainty for investors.