Dexus Convenience Retail (DXC) H1 2026 earnings summary

Executive summary

• Delivered FFO of $14.5 million (10.5 cps) and distributions of 10.45 cps for HY26, reflecting 1.3% and 1.7% year-over-year growth, and on track to meet FY26 guidance.

• Net profit after tax rose 144% to $35.8 million, driven by $19.8 million in property valuation gains and derivative movements.

• Like-for-like income grew 2.9% with portfolio occupancy at 99.9%, a WALE of 7.6 years, and 95% of income from major tenants.

• NTA per security increased 4.4% to $3.80, supported by rental growth and cap rate compression.

• Portfolio quality enhanced through $35 million in new fund-through acquisitions and ongoing Glass House Mountains redevelopment.

Financial highlights

• Property FFO decreased 1.2% year-over-year to $22.3 million due to divestments, partially offset by income growth.

• Net rental income decreased 7.6% year-over-year to $22.4 million due to divestments.

• Gearing at 29.8%, at the lower end of the 25–40% target range, with $38.9 million in headroom and no debt expiries until FY28.

• Average cost of debt at 4.6% and 71% of debt hedged.

• NTA per security at $3.80, up from $3.64 at June 2025.

Outlook and guidance

• FY26 guidance reaffirmed for FFO and distributions of 20.9 cps, representing 1.2% year-on-year growth and a 7.7% yield, supported by contracted rental increases.

• Development pipeline expected to further enhance portfolio metrics and income resilience.

• Portfolio expected to be 90% metro and highway assets upon completion of development pipeline.