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GPT Group vs Dexus shares: Which ASX REIT looks better value?
When it comes to picking between GPT Group (ASX: GPT) and Dexus (ASX: DXS), you're sizing up two heavyweight names from the ASX's real estate investment trust (REIT) sector. Both offer large, diversified portfolios, long track records, and established brands. For everyday investors hunting income, value, or just exposure to Australian property, weighing GPT against Dexus makes a lot of sense. So, which might offer better value right now?
The case for GPT Group
GPT Group is one of Australia's largest listed property trusts, tracing its origins to the country's first ever REIT, set up in 1971. Over the decades, GPT has built a robust and conservative portfolio split across office buildings, major retail centres, and logistics/industrial assets. According to GPT Group, it manages over $42 billion of property and has recently increased its tilt toward industrial assets, now accounting for almost a third of its holdings.
What stands out in GPT's current fundamentals is its:
- Attractive 8.12 P/E ratio (notably lower than Dexus's)
- Dividend yield of 5.44%
- Market cap around $8.6 billion, making it one of the larger players on the market.
GPT's consistent history of paying fully unfranked distributions – roughly 24 cents per share annually in recent years – underlines its income credentials, though franked income isn't on offer here. Its conservative approach to gearing (debt) and measured development pipeline have long appealed to more cautious property investors.
The case for Dexus
Dexus has transformed beyond a pure office property landlord into a broader platform managing listed and unlisted real estate, infrastructure, and alternative assets – especially since its big 2023 acquisition of AMP Capital's real estate and infrastructure arm. Dexus directly and indirectly holds premium office, logistics, retail, and airport assets, notably including stakes in Melbourne Airport and Jandakot Airport.
Key fundamentals for Dexus right now include:
- A higher dividend yield of 6.67%
- A market cap of $5.96 billion (a notch below GPT, but still sizeable)
- P/E ratio of 10.17
Dexus's income stream is attractive, at around 37 cents per share (annualised from the last year's payouts), with a portion of its most recent distributions franked (but with franked percentages varying between periods). Its recent diversification into infrastructure assets sets it apart from most traditional REITs, potentially adding some resilience – though also introducing new complexity for investors used to pure property exposure.
Valuation comparison
Here's a side-by-side look at the major valuation metrics based on the latest figures:
| GPT Group | Dexus | |
|---|---|---|
| Market Cap | $8.60 billion | $5.96 billion |
| P/E Ratio | 8.12 | 10.17 |
| Dividend Yield | 5.44% | 6.67% |
| Dividend per Share | $0.24 | $0.37 |
| EPS | 0.549 | 0.546 |
| Franking | 0% | Variable, up to ~20% |
| YTD Return | -15.5% | -17.4% |
Both companies sport very similar recent EPS. GPT's P/E ratio is noticeably lower, which usually means investors are paying less for each dollar of earnings – but Dexus's higher dividend yield may appeal to those seeking bigger income streams. Franking is limited for both, but Dexus's distributions do carry some franking credit, while GPT's are unfranked. Note: both companies have reported EPS figures very close to or slightly above their per-share distributions, but as always, there can be timing and calculation differences between reported EPS and current-year payout ratios.
Recent share price performance
Share prices for both companies have been under pressure over the year to date, as interest rates and broader property sector worries have weighed on REIT valuations.
Comparing 25 August to 21 September 2026:
- GPT Group fell from $4.69 to $4.49, a drop of around 4.3% across the period.
- Dexus slipped from $5.88 to $5.54, down approximately 5.8% over the same range.
- Year to date, GPT's return is -15.5%, while Dexus has dropped -17.4%.
In short, Dexus shares have underperformed slightly versus GPT in terms of recent momentum. Both have lagged the broader ASX, in line with their sector.
Which is the better buy?
For me, it's a line-ball call because both GPT Group and Dexus look like reasonable value on paper and have offered consistent income. If I had to tip one for value today, I'd lean just slightly toward GPT Group. My reasons? GPT trades on a meaningfully lower P/E (8.12 vs 10.17) for similar recent earnings, has a larger and arguably more conservative asset base, and its recent price performance has been a fraction less negative. While Dexus's higher dividend yield is tempting, the difference isn't life-changing on a yield-per-dollar basis, and GPT's simpler, core property focus and lower multiple appeal to my sense of "margin of safety" in the current environment.
If I were seeking maximum immediate yield and a taste of infrastructure, Dexus could still have the edge. But with its lower valuation and more traditional property mix, my pick for better value in this REIT head-to-head would be GPT Group.
