DEXUS CONVENIENCE RETAIL REIT (DXC)
Share Price Analysis and Chart

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

11/02/2025

2

Accumulate

$3.13

7.93%

Ord Minnett views the 1H25 result from Dexus Convenience Retail REIT as broadly meeting expectations. Management reiterated FY25 guidance, and Stage 1 of Glass House Mountains commenced, the analyst states.

Funds from operations were slightly better than forecast but declined -1% on the previous period due to asset sales and slightly higher debt costs.

The REIT's NTA rose by 0.3% to $3.57 per share, supported by a $3.2m increase in property valuations.

Ord Minnett raises the target price to $3.13 from $3.11 and rates the stock Accumulate on an attractive yield of 7.2% and a discount to NTA of -19%.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 20.60 cents.
Ord Minnett forecasts a full year FY26 dividend of 21.20 cents.

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

12/02/2025

1

Buy

$3.39

16.90%

Following Dexus Convenience Retail REIT's 1H25 result, Moelis lowered its earnings profile slightly, taking a more conservative view of cost inflation and occupancy.

The broker highlights cost inflation continues to run ahead of rent growth, resulting in EBIT margin falling year on year to 71.9% from 72.2%.

The broker expects gearing to reach 34% by FY27 without valuation growth, from 28.7% in December. With modest valuation growth, the broker expects below 32% gearing. 

The broker continues to believe the stock is meaningfully undervalued, with its current implied cap rate of 7.4% representing an attractive discount to direct market evidence. Buy rating retained and target price is $3.39.

FORECAST
Moelis forecasts a full year FY25 dividend of 20.60 cents and EPS of 20.70 cents.
Moelis forecasts a full year FY26 dividend of 21.00 cents and EPS of 21.10 cents.