Dexus reaffirms FY26 guidance, inks partnership with Boral
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The news: Dexus has reiterated its adjusted funds from operations (AFFO) of 44.5 cents to 45.5 cents per security and distributions of 37 cents per security for the 12 months ended 30 June, however it warned FY27 will be a more challenging year.
The numbers: Dexus reported an office occupancy rate of 93.1% for the quarter, slightly above 92.2% in the December quarter, citing success in Melbourne and Sydney.
Industrial portfolio occupancy remains at 96.9%, while average incentives decreased to 20.1%. The portfolio remains 7.3% under-rented.
Dexus has raised $670 million since HY26, bringing year-to-date funds to around $1.75 billion in third party equity from domestic and international investors.
The context: Dexus stated the key driver of its robust office occupancy rate was the demand in Sydney and Melbourne, where rates remain above the market average of 85.2%.
While occupancy improved 90 basis points over the quarter, Dexus noted that industrial vacancy remained historically low in these regions.
Dexus has also entered into a partnership deal with Boral to develop a major logistics precinct in Melbourne’s western corridor, located 20 kilometres from the CBD.
Under the agreement, both companies will transform 630 hectares of land owned by Boral into what is expected to become the largest institutionally held logistics precinct in Australasia.
