Half Year 2026 Dexus Convenience Retail REIT Earnings Call Transcript
Key Points
- Dexus Convenience Retail REIT (ASX:DXC) delivered funds from operations of $0.105 and distributions of $0.1045 per security, keeping on track to meet FY26 guidance.
- The portfolio achieved like-for-like income growth of 2.9% and net tangible assets grew by 4.4% over the period.
- The gearing of 29.8% is at the lower end of the target range, providing capacity to fund growth opportunities.
- The portfolio boasts a long WALE of 7.6 years and nearly 100% occupancy, with 95% of tenants being major national or international brands.
- DXC maintains 100% renewable electricity and a net zero position across managed assets, aligning with Dexus's sustainability strategy.
- Prior-year divestments partly offset the solid like-for-like income growth of 2.9%.
- Floating rates have increased during the half, impacting financial performance.
- The portfolio's hedging position is set to decrease from 71% to 62%, potentially increasing exposure to interest rate fluctuations.
- There is uncertainty regarding the impact of interest rate changes on direct market demand and potential softening in cap rates.
- The gearing is expected to increase to mid-30s once the development pipeline is delivered, which may affect financial flexibility.
Good morning, and thank you for joining the half-year 2026 results call. I'm Pat De Maria, Fund Manager of Dexus Convenience Retail REIT. I've been working with the fund since 2018, and I'm pleased to be delivering my first set of results this morning.
I'd like to begin by acknowledging the traditional custodians of the lands and waterways in 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 results for the half, covering highlights and financial outcomes, trends we're seeing in the broader market, and the outlook.
In the half year, we delivered funds from operations of $0.105 and distributions of $0.1045 per security, keeping us on track to meet FY26 guidance. Our portfolio continues to deliver a resilient income with like-for-like income growth of 2.9%. Gearing of 29.8% sits at the lower end of our target range, which will increase as we continue to deploy capital into growth opportunities.
Our Glass House Mountains
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
