Why invest in Dexus

Dexus is one of Australia’s leading  fully integrated real estate groups, managing a high-quality Australian property portfolio valued at $57.1 billion

Delivering quality, sustainable returns for investors

As property innovators, we are deeply committed to working with our customers to provide spaces that engage and inspire, as well as delivering quality, sustainable returns for our investors. Delivering to the needs of our customers and the strength and quality of our relationships will always be central to our success.

Dexus is a  leading Australasian fully integrated real asset group, managing a high-quality Australasian real estate and infrastructure portfolio valued at $57.1 billion. We directly and indirectly own $15.8 billion of office, industrial, healthcare, retail and infrastructure assets and investments and manage a further $41.3 billion of investments in our funds management business which provides third party capital with exposure to quality sector specific and diversified real asset products. The group’s $16.9 billion real estate development pipeline provides the opportunity to grow both portfolios and enhance future returns.

Our revenues are built from property

The majority of our earnings are derived from rental income received from our Australasian real estate and infrastructure portfolio and investments valued at $15.8 billion. Our portfolio is predominantly weighted to the eastern seaboard CBD office markets, where vacancy is at low levels and the supply pipeline over the next few years is modest. Our funds management business provides Dexus with a steady income stream driven by management fees from the $41.3 billion of investments under management on behalf of third party capital partners.

We actively seek to optimise returns

As active asset managers, we are constantly evaluating opportunities to optimise the performance of the properties we own and manage. This approach has assisted us in maintaining high office portfolio occupancy rates over time. Enhancing the predictability of our returns, our lease terms generally contain fixed annual increases of between 3%-4%.

Long-term value creation

Our investment strategy is focused on the long term. Across the group, we manage a real estate development pipeline valued at $17.4 billion which is purposefully created to deliver future potential revenue streams while adding further depth and flexibility to the spaces we can offer our customers. We add value through:

Dexus’s development pipeline

Enhances portfolio quality and returns with target year-one yields and project internal rate of return generally at more favourable metrics than what can be achieved through direct acquisition

Dexus’s trading pipeline

Promotes financial value creation through developing, acquiring and repositioning assets to sell for a profit. Dexus has strong track record in delivering  trading profits for investors

Funds management development pipeline

Provides organic growth in assets under management while enhancing the third party funds management portfolio's quality and returns, In addition, it enhances Dexus's future revenue potential

Portfolio Performance
  • Delivered a compound annual growth rate (CAGR) in distribution per security of 4.4% from FY12 to FY23 
  • Target return on contributed equity (ROCE) of 7-10% p.a.

Strong Balance Sheet
  • We aim to maintain a strong balance sheet through conservative financial and operational risk management

Financial Risk Management
  • Strong investment grade credit rating of ‘A-‘ from S&P and ‘A3’ from Moody’s
  • Pro forma gearing (look-through) of 29.4%,  below 30-40% target range
  • Diversified mix of debt facilities with weighted average maturity of debt of 4.6 years
  • Distribution policy aligned with free cash flow for which AFFO is a proxy

Operational Risk Management
  • Dexus adheres to strict investment criteria for acquisitions, divestments and development
  • Up to 15% of funds under management limit on capital deployed into development/trading opportunities

Information as at 31 December 2023 unless otherwise stated and past performance is not an indication of future performance.

Important Information
  • This information is issued by Dexus Funds Management Limited (DXFM) in its capacity as responsible entity of Dexus (ASX: DXS). It is not an offer of securities for subscription or sale and is not financial product advice.
  • The information including, without limitation, any forward-looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted by law, DXFM, Dexus and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied by any forward-looking statements for a range of reasons outside the control of the relevant parties.
  • The Information should not be considered to be comprehensive or to comprise all the information which a Dexus security holder or potential investor may require in order to determine whether to deal in Dexus stapled securities. This information does not take into account the financial situation, investment objectives and particular needs of any particular person.
  • The repayment and performance of an investment in Dexus is not guaranteed by DXFM, any of its related bodies corporate or any other person or organisation.

This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.

Contact us

For more information on investing with Dexus, please contact us and our team who will assist with your enquiry.

Dexus Retail Investor enquiries

Dexus Institutional Investor enquiries

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