Dexus Convenience Retail (DXC) H2 2025 earnings summary

Executive summary

• Delivered FY 2025 FFO and DPS of AUS 0.207 per security, slightly above guidance, with resilient income and 99.9% occupancy across 91 strategically located assets and a 7.9-year WALE.

• Portfolio comprises over 90 assets valued above AUS 700 million, weighted to the eastern seaboard and major national tenants.

• $38.8 million in strategic divestments improved portfolio quality and provided capacity for future growth.

• NTA per security increased by AUS 0.08 (2.2%) to AUS 3.64, supported by rental growth and cap rate compression.

• Glass House Mountains Northbound redevelopment on track for Feb 2026 completion, expected to enhance WALE and deliver strong returns.

Financial highlights

• FY25 FFO of $28.4m, down 1.5% year-over-year due to higher debt costs and divestments, offset by 2.9% like-for-like income growth.

• Distributions and FFO per security at 20.7 cps, 1.5% lower year-over-year but above guidance.

• NTA per security rose to $3.64, up from $3.56 last year.

• Portfolio valuation increased by $16.6m (2.3%), with average cap rate compressing 8 bps to 6.32%.

• $38.8m of divestments settled at 1.8% average discount to book value.

Outlook and guidance

• FY 2026 guidance targets FFO and distributions per security of AUS 0.209 (20.9 cps), up 1.2% year-on-year, supported by contracted rental increases and current interest rate expectations.

• Distribution yield expected to exceed 7%, supported by strong income visibility.

• Guidance assumes no capital deployment beyond Glass House Mountains northbound.

• Focus remains on value-enhancing activities, including redevelopment, pipeline restocking, and growth opportunities.