Dexus Industria REIT has reported a strong set of half-year results, highlighting its ability to generate organic income growth and maintain a high-quality, resilient $1.4 billion portfolio. The company continues to leverage its well-located national portfolio, secure long-term income streams, and active portfolio management to enhance investor returns.

Resilient Income Growth and Strong Leasing Performance

Dexus' diversified tenant base and strategic portfolio positioning have contributed to robust rental growth. The company's portfolio reported a 4.7% like-for-like income growth, with standout performance from Business & Technology Precincts (BTP), which recorded a 17.6% uplift. Additionally, an average rent review of 3.7% underscores the strength of its rental escalators.

Leasing activity remained strong, with 30,329 sqm of stabilisedleasing and 99.5% portfolio occupancy. Re-leasing spreads saw an impressive 12.1% increase, reinforcing Dexus' ability to secure quality tenants and drive sustainable rental growth.

Development Pipeline Driving Value and Growth

Dexus continues to invest in high-quality, modern warehouses and development projects to enhance portfolio value. The company activated 51,000 sqm of new developments and secured 58,831 sqm in development leasing, including pre-commitments from blue-chip tenants.

With a $269 million development pipeline targeting a yield on cost above 6.25%, Dexus is well-positioned to capture future growth opportunities. The leasing success at Moorebank drove a $4 million valuation uplift for DXI’s share of the asset, demonstrating the strength of its development strategy.

Prudent Capital Management and Financial Strength

Dexus maintains a disciplined approach to capital management, with look-through gearing at 27.7%, well below its target range of 30-40%. This financial flexibility allows the company to tactically utilise its balance sheet to drive strong risk-adjusted returns.

The company’s half-year funds from operations (FFO) rose to 9.1 cents per security, up 5.7% on the prior corresponding period (pcp), while distributions increased to 8.2 cents per security. Additionally, Dexus recorded a 2.5% growth in net tangible assets (NTA), supported by valuation uplift driven by rental growth offsetting capitalisation rate expansion.

Sustained Portfolio Quality and Market Resilience

Dexus remains a reliable custodian of capital, leveraging its deep real asset expertise to enhance portfolio resilience. Industrial assets continue to be highly sought after, supported by moderate supply and low vacancy rates. The company’s disciplined asset management strategy, combined with sustainability initiatives, positions it well to deliver long-term value for investors.

With its strong leasing outcomes, development activations, and prudent capital structure, Dexus is on track to meet its FY25 guidance, reinforcing its commitment to delivering performance across its funds management platform.