Dexus swings to full-year profit after stemming fair valuation losses
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The news: Property investor Dexus swung to a full-year net profit of $136.1 million, having fallen to a $1.58 billion loss last year, after stabilising capitalisation rates drove lower fair valuation losses during the 12-month period.
The numbers: Adjusted funds from operations (AFFO) came to $483.9 million, or 45 cents per security. This was in line with guidance but down 6.3% year on year.
The company declared distributions of $398 million, or 37 cents per security, down 22.9% from FY24.
Dexus has guided AFFO of 44.5-45.5 cents per security and distributions of 37 cents per security in the 2026 financial year.
The context: Dexus said the decline in AFFO was driven by divestments, lower capitalised interest and lower trading profits, partially offset by the impact of higher performance fees and cost savings.
Office portfolio valuations increased by 0.4% on prior book values during the second half, while the industrial portfolio increased by 1%. Over the 12 months, portfolio valuations resulted in a 1.1% decrease on prior book values.
What they said: "We invest for the long term, and despite market challenges over the past few years, we are now past the inflection point with valuations turning positive in the second half," said Dexus CEO and managing director Ross Due Vernet.
The source: ASX
