Full Year 2025 Dexus Earnings Call Transcript
Key Points
- Dexus (DEXSF) maintained office occupancy well above market average at 92.3%, ensuring strong cash flows and AFFO.
- The company achieved a record year of leasing across the industrial portfolio, with occupancy by area above market at 97.4%.
- Dexus (DEXSF) successfully divested $1.1 billion and maintained gearing at the low end of their target range.
- Property portfolio valuations turned positive in the second half, with office valuations increasing by 0.4% and industrial by 1%.
- The funds management business outperformed benchmarks, with the diversified wholesale fund and shopping center fund showing strong performance.
- Office FFO reduced marginally due to divestments, and the industrial portfolio saw income reduction driven by divestments and downtime.
- Higher funding costs are expected to continue impacting FY26 due to increased interest rates and lower capitalized interest.
- Trading profits were significantly lower this year, with only $40 million of post-tax trading profits secured for FY26.
- The redemption queue remains consistent at around $3 billion, indicating ongoing liquidity challenges.
- Vacancy challenges are concentrated in a small number of assets, such as 30 Hickson Road and 80 Collins Street, impacting overall occupancy.
Thank you for standing by and welcome to the DEXA FY25 results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key, followed by the number one on your telephone keypad.
I would now like to hand the conference over to Ross Duvernay, Group CEO and managing director. Please go ahead.
Well, good morning everyone, and thanks for joining us for our 2025 full year results presentation.
I'd like to begin today by acknowledging the traditional custodians of the lands and water pays upon which we operate and pay our respects to elders past and present.
Today you'll hear from Ke on the financials, Andy on office, Chris on industrial, and Michael on funds management.
Concluding the presentation, I'll provide a summary and then open up to any questions that you may have.
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