DEXUS INDUSTRIA REIT (DXI)
Share Price Analysis and Chart

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14/08/2025

1

Outperform

$2.94

2.44%

Dexus Industria REIT’s FY25 funds from operations (FFO) of 18.2cpu came in slightly ahead of guidance and Macquarie’s forecast.

FY26 guidance of 17.3c is around -7% below the broker's expectations due to -5–6% dilution from the Brisbane Technology Park divestment.

The broker notes Dexus Industria REIT is now a pure-play industrial REIT, with the divestment improving portfolio quality and freeing capacity for growth while having a broadly neutral impact on adjusted FFO and free cash flow.

Look-through gearing of 29% is set to fall to 24%, highlights the analyst, providing room to fund developments such as the -$230m ASCEND at Jandakot pipeline, which offers yields on cost above 6.25%.

Macquarie sees favourable industrial market conditions, with low vacancy and constrained supply supporting occupancy and rents.

The broker raises its target price to $2.94 from $2.86 and retains an Outperform rating.

FORECAST
Macquarie forecasts a full year FY26 dividend of 16.60 cents and EPS of 17.40 cents.
Macquarie forecasts a full year FY27 dividend of 17.00 cents and EPS of 18.90 cents.

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15/08/2025

1

Buy

$3.38

17.77%

Dexus Industria REIT reported FY25 funds from operations (FFO) of 18.2c and a distribution of 16.4c, in line with upgraded guidance.

Like-for-like rent growth was 3.5%, highlights Moelis, while net tangible assets (NTA) were steady at $3.34.

The broker notes Dexus Industria REIT will become a pureplay industrial REIT after agreeing to sell its last remaining office assets for $155.5m, a -4% discount to book value, with settlement expected in 1H26.

The divestment and the purchase of a vacant Glendenning property for conversion into a multi-tenant logistics facility will be short-term dilutive, cautions the broker, with the latter expected to lease from FY27.

FY26 guidance of 17.3c FFO and 16.6c distribution is -8% below the analyst's prior forecasts, reflecting asset sales, development timing, and temporary income dilution.

The portfolio remains more than 99% leased, highlights Moelis, with limited near-term expiries and gearing set to drop around -5 percentage points after transactions.

The broker sees potential earnings growth of more than 4% p.a., supported by a 5% development landbank, stable debt costs, and the ability to deploy capital accretively. The target price is trimmed to $3.38 from $3.41, with a Buy rating retained.

FORECAST
Moelis forecasts a full year FY26 dividend of 16.60 cents and EPS of 17.30 cents.
Moelis forecasts a full year FY27 dividend of 16.80 cents and EPS of 18.20 cents.