Dexus Industria REIT first-half profit falls $10.3m on lower valuations
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The news: Dexus Industria REIT has reported a $10.3 million fall in its first-half statutory net profit after tax to $43.4 million, attributed primarily “to lower property valuation gains”.
The numbers: The profit was lower than the market consensus expectation of $47.9 million, according to Visible Alpha.
Funds from operations per security for the first-half came in at 8.9 cent, ahead of the expected 8.7 cents, but below the 9.1 cents in the previous corresponding period.
Distributions per security were in line with expectations at 8.3 cents per security and ahead of the 8.2 cents in the previous corresponding period.
FY26 guidance for fund from operations has been increased to 17.4 cents per security, up from 17.3 cents, and distribution guidance of 16.6 cents per share has been reaffirmed.
Dexus Industria REIT's portfolio of 88 properties is valued at $1.4 billion., representing a $14.8 million valuation uplift supported by a 1.5% net tangible asset per security to $3.39. Occupancy rate was at 99.7% during the first half.
The context: During the period, Dexus Industria REIT acquired four industrial assets in Glendenning, Dandenong South and Moorebank. It also divested Brisbane Technology Park.
Dexus Industria REIT fund manager Jason Weate said the portfolio changes "enhance" the fund's "portfolio quality and increase our exposure to the Sydney and Victoria industrial infill market".
What they said: "While the industrial sector has continued to normalise, underlying supply-demand fundamentals are solid," Weate said.
"Vacancy remains low across core industrial markets, with high land and construction costs putting pressure on pipelines. In the medium to long term, the sector will continue to be supported by a growing population and limited available supply."
The source: ASX
