The Dexus (ASX: DXS) share price is in focus today after the company reported FY26 results featuring adjusted funds from operations (AFFO) of $483.9 million and distributions of 37.0 cents per security, both matching previous guidance. Statutory net profit after tax was $482.2 million, and gearing remained at the lower end of the group's target range.
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What did Dexus report?
- Statutory net profit after tax of $482.2 million (up from $136.1 million in FY25)
- Adjusted funds from operations (AFFO) steady at $483.9 million
- Distribution per security maintained at 37.0 cents
- Gearing (look-through) at 33.4%, providing balance sheet flexibility
- Office occupancy 95.7%, well above the market average of 85.1%
- Industrial effective like-for-like income growth of 8.3%
What else do investors need to know?
Dexus reported continued strength in its core office and industrial portfolios, with both segments outperforming broader market trends. The group successfully secured around $2 billion in third-party equity commitments and completed more than $1.9 billion in divestments, exceeding its divestment target for FY25–FY27.
A strategic review of the infrastructure funds business is underway after legal proceedings relating to the APAC airports matter. Dexus has provided for legal costs and is in regular consultation with investors regarding the future of certain funds. Major developments like Atlassian Central remain on schedule, while the Waterfront Brisbane project is facing a delay to late 2029.
What's next for Dexus?
Looking to FY27, Dexus expects lower earnings due to reduced performance fees, an immaterial contribution from trading profits, and a smaller contribution from funds under review. The company targets AFFO of 37.5–39.5 cents per security and distributions maintained at 37.0 cents per security, assuming no major changes in market conditions.
Strategic priorities for the year ahead include completing the Atlassian Central project, further capital recycling, broadening capital partnerships, and enhancing platform efficiency. Dexus also aims to continue simplifying its fund offering and embed new technologies for greater operational efficiency.
Dexus share price snapshot
Over the past 12 months, the Dexus share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a disappointing decline of 22%. This reflects sector headwinds and uncertainty over the funds management division.
