Full Year 2025 Dexus Convenience Retail REIT Earnings Call Transcript
Key Points
- Dexus Convenience Retail REIT (ASX:DXC) provides investors with access to a high-quality, strategic national network of over 90 convenience retail assets valued at over $700 million.
- The portfolio boasts a long WALE of 7.9 years and nearly 100% occupancy, with 95% of tenants being major national or international brands.
- FFO and EPS of $0.207 per security were slightly above guidance, demonstrating resilient income performance.
- The company has a low gearing of 29.4%, providing balance sheet capacity for future growth opportunities.
- Environmental initiatives are a core part of their strategy, including 100% renewable electricity sourcing and carbon-neutral operations across controlled assets.
- FFO result was 1.5% below the prior period, primarily due to a 30 basis point increase in the average cost of debt.
- Moderate dilution from asset divestments impacted financial performance.
- The transaction market showed strong liquidity initially but slowed approaching the federal election, affecting momentum.
- Guidance for FY26 does not assume capital deployment beyond the Glasshouse Mountains Northbound project.
- The full period dilution associated with asset sales finalized in the first half of FY25 will partly offset like-for-like NOI growth in FY26.
Thank you, and good morning, everyone joining on the call. I'm Jason Weate, Fund Manager of Dexus Convenience Retail REIT, and I'm pleased to be delivering the 2025 full year result. I'd like to begin by acknowledging the traditional custodians of the lands and waterways on which we meet today, the Gadigal people of the Eora Nation, and pay our respects to elders, past and present.
Today, I will talk to key highlights for the FY25 period, financial outcomes, trends we're seeing in the broader market and the outlook for FY26.
Moving to slide 5. DXC provides investors with access to a high-quality, strategic national network of convenience retail assets with significant diversity of over 90 assets valued at over $700 million, strong exposure to the Aussie car fleet daily and 2.6 million people living within a three-kilometer radius of our asset base. These attributes are of high value to our fuel and convenience retail customer base.
We also have a significant amount of land, over 600,000 square meters with circa 90% zone
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