Dexus (ASX:DXS), a leading Australasian real asset group managing a portfolio valued at $51.4 billion, announced its results for the 12 months to 30 June 2026 in an ASX release dated 20 August 2026. The Group delivered on its FY26 guidance, reporting AFFO of $483.9 million or 45.0 cents per security and distributions of $397.4 million or 37.0 cents per security. Statutory net profit after tax was $482.2 million, up materially from $136.1 million in FY25, driven by stabilising Capitalisation rates and positive Revaluation movements across the property portfolio.

About Dexus

Dexus is a leading Australasian fully integrated real asset group with a $51.4 billion platform comprising a $15.3 billion listed portfolio and a $36.1 billion funds management business. The listed portfolio includes direct and indirect ownership of office, industrial, retail, healthcare, and infrastructure assets. Dexus manages 33,900 investors from 28 countries and has over four decades of experience in real asset investment, funds management, and development. Its flagship funds include the Dexus Wholesale Property Fund (DWPF) and the Dexus Wholesale Shopping Centre Fund (DWSF).

FY26 Results — Released 20 August 2026

Dexus maintained office portfolio occupancy of 95.7% by income, well above the broader market, and industrial portfolio occupancy of 94.6%. Rent collections across both portfolios remained at 99.7%. The company exceeded its $2 billion FY25–FY27 divestment target ahead of schedule, with approximately $2.5 billion exchanged or settled since FY24, including approximately $1.9 billion during FY26. The proceeds supported the recommencement of securities buyback activity.

The funds management Business raised approximately $2.0 billion in third-party Equity from domestic and offshore investors, including a $500 million commitment into DWPF and more than $1.1 billion in secondary unit transactions. DWPF delivered its strongest one-year return in almost four years, outperforming its benchmark across all reported periods. DWSF outperformed its benchmark over the 1, 2, 3, 5, and 7-year periods.

A key strategic development during FY26 was the agreement with Boral, providing Dexus with capital-efficient access to a long-dated development pipeline with potential lettable area of approximately 2.5 million square metres, subject to rezoning and Business Plan approvals. Dexus also issued A$500 million in subordinated notes in the Australian fixed income market in December, diversifying its funding sources.

The real estate development pipeline stands at a total cost of $12.8 billion, with $6.9 billion within the Dexus portfolio and $5.9 billion in third-party funds. Atlassian Central is on schedule for completion in late 2026. The Waterfront Brisbane project is expected to be delayed to late 2029 due to build complexity and adverse weather impacts. In May 2026, the NSW Supreme Court delivered a judgment against the Dexus Bloc in the Australia Pacific Airports Corporation (APAC) matter; Dexus has appealed this judgment with a hearing scheduled for October 2026, and subsequently commenced a strategic review of the $7.3 billion of infrastructure funds under management.

Dividend

Dexus declared distributions of 37.0 cents per security for FY26, representing a Payout Ratio of 82.1% of AFFO. For FY27, the company expects to maintain security holder distributions in line with the past year, at 37.0 cents per security. The distribution guidance is provided barring unforeseen circumstances and subject to a range of assumptions including current expectations relating to asset sales, APAC litigation outcomes, trading profits, and performance fees.

Industry Context

Australian Commercial Real Estate markets have been navigating a period of recalibration in property valuations as capitalisation rates stabilised from the rising rate environment of prior years. Dexus's office occupancy of 95.7% stands significantly above the broader CBD market, reflecting the quality of its portfolio in gateway cities. Industrial real estate continued to benefit from structural Demand tailwinds, with face releasing spreads remaining elevated at 24.5% for the Dexus industrial portfolio. The funds management business faces some headwinds from elevated Redemption activity, particularly in the $1.1 billion Healthcare Property Fund.

Risks and Uncertainties

FY27 Earnings are expected to be lower than FY26 due to an immaterial contribution from performance fees and trading profits following elevated FY26 contributions, higher finance costs, the practical completion of Atlassian Central, and a materially lower contribution from funds under review and consultation. The APAC legal matter and the associated Infrastructure Fund strategic review introduce uncertainty regarding management fees and fund structures. The Waterfront Brisbane development delay has increased Dexus's cost to complete. The $1.1 billion Dexus Healthcare Property Fund remains in consultation regarding elevated redemptions.