Dexus posts $348.5m interim profit, launches on-market buyback
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The news: Dexus reported first-half statutory profit of $348.5 million, driven by fair value gains that offset valuation losses in the prior corresponding period.
The numbers: The property investor’s result exceeded average consensus forecasts of $337 million, according to Visible Alpha.
Adjusted funds from operations (AFFO) came in at $253.3 million, slightly above analysts’ estimates of $251.4 million.
The company declared an interim dividend of 19.3 cents per share, above consensus estimates of 18.92 cents.
The context: Dexus CEO Ross Du Vernet attributed the results to positive valuations and improved business confidence, supported by stabilising asset prices and improvement in transaction volumes, despite an evolving interest rate environment.
Dexus reaffirmed its FY26 guidance for AFFO of between 44.5 cents and 45.5 cents per security and distributions of 37 cents per share.
The group also said it plans to launch a new on-market securities buyback of up to 10% of its securities.
What they said: “There is a sustained disconnect between our equity market valuation and that of our underlying assets and businesses,” Vernet said.
“We have activated an on-market securities buyback which we expect to execute at a pace consistent with maintaining balance sheet discipline as we progress asset sales and other initiatives,” he added.
