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DEXUS Interim / Quarterly Report 2026
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Interim / Quarterly Report
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dexus
Dexus (ASX: DXS)
ASX release
5 May 2026
March 2026 quarter update and Macquarie Australia Conference Presentation
Dexus releases the attached March 2026 quarter update and presentation to be presented at the 2026 Macquarie Australia Conference today.
Authorised by the Board of Dexus Funds Management Limited
For further information please contact:
Investors
Rowena Causley
Head of Listed Investor Relations
+61 416 122 383
Media
Luke O'Donnell
Senior Manager, Media and Communications
+61 412 023 111
About Dexus
Dexus (ASX: DXS) is a leading Australasian fully integrated real asset group, managing a high-quality Australasian real estate and infrastructure portfolio valued at $51.5 billion. The Dexus Platform includes the Dexus listed portfolio and the funds management business. The $15.3 billion listed portfolio includes direct and indirect ownership of office, industrial, retail, healthcare, infrastructure, alternatives and other investments. We manage a further $36.2 billion of investments in our funds management business which connects third party capital with exposure to quality sector specific and diversified real asset products. The funds within this business have a strong track record of delivering performance and benefit from Dexus's Platform capabilities. The Platform's $11.5 billion real estate development pipeline provides the opportunity to grow both the listed and funds' portfolios and enhance future returns. We are deeply connected to our purpose unlock potential, create tomorrow, reflecting our unique ability to create value for our people, customers, investors and communities over the long term. Our sustainability approach focuses on the priority areas where we believe we can make the most impact: Customer Prosperity, Climate Action and Enhancing Communities. Dexus is supported by more than 35,800 investors from 26 countries. With more than four decades of expertise in real asset investment, funds management, asset management and development, we have a proven track record in capital and risk management and delivering returns for investors. www.dexus.com
Dexus Funds Management Limited ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS) (Dexus Property Trust ARSN 648 526 470 and Dexus Operations Trust ARSN 110 521 223)
Level 30, 50 Bridge Street, Sydney NSW 2000
dexus
Dexus (ASX: DXS)
ASX release
5 May 2026
March 2026 quarter update – Increased office occupancy and continued fund outperformance
Ross Du Vernet, Dexus Group Chief Executive Officer & Managing Director, said: "We continue to make progress reshaping Dexus for resilience and long-term growth. This quarter's results show ongoing improvement in operational performance across our property portfolio, outperformance in our flagship fund, and meaningful progress in attracting capital into the funds platform. However, the shifting macroeconomic environment and interest rate outlook is expected to slow the recovery."
The location and quality of our assets remain key drivers of performance. Our office occupancy at 93.1% is well above the market average and our industrial portfolio continues to deliver strong leasing outcomes.
Key highlights
- Office portfolio occupancy increased to 93.1% following leasing success in Melbourne and Sydney
- Industrial portfolio occupancy remains high at 96.9% and strong leasing volumes were achieved across the stabilised portfolio and developments
- Dexus Wholesale Property Fund (DWPF) continued to outperform its benchmark over 1, 3, 5, 7 and 10-year time periods. Dexus Wholesale Shopping Centre Fund (DWSF) has continued to deliver performance since transitioning to Dexus's platform, outperforming its 1, 3, 5, and 7-year benchmarks.
- c. $1.75 billion third party equity commitments raised from both domestic and offshore investors since FY25 (including $670 million¹ since HY26), with renewed broad-based interest in high quality core real estate
- Post 31 March 2026, agreement secured with Boral providing capital efficient access to a long dated development pipeline, subject to rezoning and business plan approvals, with potential lettable area of 2.5 million square metres
Outlook
Ross Du Vernet said: "Barring unforeseen circumstances, for the 12 months ended 30 June 2026, Dexus reiterates its expectation for AFFO of 44.5 - 45.5 cents per security and distributions of 37.0 cents per security².
"FY27 will be a more challenging year with an immaterial contribution from performance fees and trading profits, which are meaningful in FY26.
"Transitioning our business to be more diversified and capital efficient is a multi-year process, and the benefits of this approach are not yet reflected in our performance. We are taking direct action to address near-term challenges and position for the future by optimising asset performance, strengthening funds management and improving efficiency.
"Dexus expects high-quality, well-located assets to continue to outperform in the current environment.
"At our HY26 results in February, we announced an on-market securities buyback, with meaningful progress linked to divestments and the release of capital from major transactions. Recent uncertainty in transaction and investment markets will slow the pace of execution. We continue to view the buyback as a key lever to create value for security holders over the medium term and remain resolved to execute on our plan in a disciplined manner."
High quality property portfolio
Dexus's $15.3 billion³ high quality portfolio comprises predominantly $9.8 billion in office and $3.6 billion in industrial.
| Key metrics⁴ | Office | Industrial | ||
|---|---|---|---|---|
| 31 March 2026 | 31 Dec 2025 | 31 March 2026 | 31 Dec 2025 | |
| Occupancy by income | 93.1% | 92.2% | 96.9% | 97.0% |
| Occupancy by area | 92.7% | 91.4% | 97.4% | 97.5% |
| Weighted average lease expiry (by income) | 4.1 years | 4.1 years | 4.5 years | 4.4 years |
| Average incentives | 25.8% | 28.4% | 20.1% | 21.5% |
| Leasing volumes⁵ | 3 months | 6 months | 3 months | 6 months |
| Stabilised leasing (sqm) | 35,600 | 81,100 | 128,800 | 172,000 |
| Number stabilised lease transactions | 67 | 144 | 13 | 30 |
| Development leasing (sqm) | - | 14,200 | 41,700 | 62,800 |
| Number development lease transactions | - | 1 | 8 | 10 |
Office portfolio
The Australian office market showed a broad-based improvement in demand over the March quarter with improving occupier demand and a constrained forward supply pipeline reinforcing the rental growth trajectory established over the past year. The Sydney and Brisbane CBDs remain the strongest performing markets nationally. Dexus continues to benefit from the flight to core and quality, with circa 79% of its office portfolio located in core CBD locations.
Dexus's portfolio occupancy at 93.1% remains well above the market average6 of 85.2% and has improved by 90 basis points over the quarter. Key drivers include leasing vacant space at 80 Collins Street in Melbourne and Australia Square in Sydney slightly offset by the impact of divesting 100 Mount Street in North Sydney and Kings Square 3 in Perth.
Average incentives of 25.8% primarily reflected a higher proportion of effective deals during the period. Excluding effective deals, incentives were 29.5% (compared to 29.9% in HY26) and remain well below market average.
Industrial portfolio
The industrial sector continued to normalise through the March quarter, with demand holding up and rent growth moderating after the strong gains of recent years. Sydney and Melbourne vacancy remain low by historical and global standards.
Leasing momentum continued across Dexus's industrial portfolio during the quarter led by new deals and development leasing in Sydney. During the quarter, Dexus secured 170,500 square metres of industrial leasing including 41,700 square metres of development leasing, with pre-commitments at ASCEND Industrial Estate, Jandakot Airport and the recently completed Vertex Estate in Marsden Park. Releasing spreads of circa 16.1% were achieved in the quarter.
Portfolio occupancy remained strong at 96.9%, while average incentives decreased slightly to 20.1%. The portfolio remains 7.3% under-rented, creating the opportunity to grow income by resetting the rents on upcoming lease expiries across approximately 12.6% of the portfolio by FY27. Dexus is in active leasing discussions on the vacant space across its portfolio and remains focused on delivering strong total returns over the lifecycle of its assets.
Developments
The Platform's $11.5 billion3^{,}7 real estate development pipeline includes $6.3 billion within the Dexus portfolio comprising $2.4 billion committed and $3.9 billion uncommitted, and $5.2 billion within the funds management business.
Construction continues to progress at Dexus's city shaping office developments Atlassian Central in Sydney and Waterfront Brisbane. In the industrial portfolio, construction continues across eight projects totalling 109,600 square metres at key industrial sites in Victoria and Western Australia.
We are monitoring construction programs, including potential impacts of recent supply chain disruptions linked to the conflict in the Middle East.
Capital efficient opportunities are being prioritised. Post 31 March 2026, Dexus secured an agreement with Boral providing capital efficient access to a long dated development pipeline, subject to rezoning and business plan approvals, with potential lettable area of circa 2.5 million square metres.
Funds management
Dexus manages $36.2 billion2 of funds across its diversified funds management business.
The platform raised $670 million1 since HY26, taking the financial year to date total to circa $1.75 billion in third-party equity from both domestic and offshore investors, reflecting renewed interest in high quality core real estate. This includes more than $630 million of secondary unit transactions facilitated across the platform8, contributing to a reduction in the Funds real estate redemption queue to circa $700 million9.
Flagship fund, DWPF, continued to outperform its benchmark across 1, 3, 5, 7 and 10-year time periods for the quarter, while DWSF has continued to deliver performance since transitioning to Dexus's platform, outperforming its benchmark across 1, 3, 5 and 7-year time periods.
After closing with total commitments of circa $870 million, Dexus Real Estate Partnership 2 (DREP2) committed capital into three opportunities and is now 34% deployed.
Dexus continues to pursue a resolution of the APAC matter in the best interests of its clients. The APAC hearing concluded in the New South Wales Supreme Court on 21 April 2026 and Dexus awaits a court ruling on the matter.
Environmental, Social and Governance (ESG)
Dexus advanced its sustainability strategy during the quarter, delivering progress across the priority areas of climate action, customer prosperity and enhancing communities. This included support for customer prosperity through the completion of the first Forever Fitout at 1 Bligh Street, Sydney, designed with reusable components that reduce embodied carbon, construction waste and tenant fitout timeframes for multi-tenancy use. The fitout has achieved a 5 Star Green Star Fitouts rating (Australian Excellence) and was the first certification under the new tool. In further recognition of sustainability leadership, 33 Alfred Street in Sydney has been awarded a 6 Star Green Star Office As Built v3 rating representing World Leadership in building design and construction.
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In line with our climate transition action plan and aspiration to reduce emissions across our operations, we launched an internal Embodied Carbon Framework to strengthen how we benchmark, measure and reduce embodied carbon across our developments and major capital works, guiding work with suppliers and partners on value-chain emissions.
Dexus continued to create local connections for healthy hearts and minds, with activations that strengthen inclusion delivered across assets in recognition of International Women's Day and Lunar New Year.
Authorised by Brett Cameron, General Counsel and Company Secretary of Dexus Funds Management Limited
For further information please contact:
Investors
Rowena Causley
Head of Listed Investor Relations
+61 416 122 383
Media
Luke O'Donnell
Senior Manager, Media and Communications
+61 412 023 111
About Dexus
Dexus (ASX: DXS) is a leading Australasian fully integrated real asset group, managing a high-quality Australasian real estate and infrastructure portfolio valued at $51.5 billion³. The Dexus Platform includes the Dexus listed portfolio and the funds management business. The $15.3 billion listed portfolio includes direct and indirect ownership of office, industrial, retail, healthcare, infrastructure, alternatives and other investments. We manage a further $36.2 billion of investments in our funds management business which connects third party capital with exposure to quality sector specific and diversified real asset products. The funds within this business have a strong track record of delivering performance and benefit from Dexus's Platform capabilities. The Platform's $11.5 billion³ real estate development pipeline provides the opportunity to grow both the listed and funds' portfolios and enhance future returns. We are deeply connected to our purpose unlock potential, create tomorrow, reflecting our unique ability to create value for our people, customers, investors and communities over the long term. Our sustainability approach focuses on the priority areas where we believe we can make the most impact: Customer Prosperity, Climate Action and Enhancing Communities. Dexus is supported by more than 35,800 investors from 26 countries. With more than four decades of expertise in real asset investment, funds management, asset management and development, we have a proven track record in capital and risk management and delivering returns for investors. www.dexus.com
Dexus Funds Management Limited ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS)
(Dexus Property Trust ARSN 648 526 470 and Dexus Operations Trust ARSN 110 521 223)
Level 30, 50 Bridge Street, Sydney NSW 2000
dexus.com
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Acknowledgement of Country
Dexus acknowledges the Traditional Custodians of the Lands on which our business and assets operate, and recognises their ongoing contribution to Land, waters and community.
We pay our respects to First Nations Elders past and present.
Artist: Amy Allerton, Indigico Creative, a Gumbaynggir and Bundjalung woman
Artwork: The Places Where We Thrive
Artwork description: The artwork tells the story of a vision for our communities, both large and small, where they are all thriving and strong as they build lives, homes and legacies for present and future generations. Every community is connected by spirit and by country, surrounded by flourishing waterways and vibrant land that is enriched and cared for by its people. Communities are empowered to unlock potential, find new ways to build and expand, as they dream and innovate to create tomorrow.
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dexus
Key takeaways
- ☑ Value creation opportunity
-
High-quality balance sheet, broad access to capital and a scalable platform with deep sector expertise
-
☑ Clear plan to unlock
-
Clear strategic priorities in place to unlock the potential of the business over the medium term
-
☑ Execution will be measured
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Macroeconomic backdrop uncertain and may delay progress, execution will be measured, pragmatic and value-focused
-
☑ Improving business momentum
- Momentum in the core business with improving investment performance and capital flows, alongside platform challenges being resolved
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dexus
Our strategy
WHY WE EXIST
To unlock potential and create tomorrow
| OUR VISION | To be globally recognised as Australasia's leading real asset manager |
|---|---|
| HOW WE WILL ACHIEVE THIS | By delivering superior risk-adjusted returns for Dexus securityholders and our capital partners by owning, managing and developing quality real estate and infrastructure assets |
| WHERE WE WILL INVEST | LARGE, GROWING MARKETS OFFICE |
| WHAT WE WILL BE KNOWN FOR | DEEP LOCAL SECTOR EXPERTISE Specialist sector teams with deep local knowledge and end-to-end capability |
| HOW WE OPERATE | Collective talent |
| KEY MEASURES OF SUCCESS | Adjusted funds from operations |
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dexus
Dexus today
Dexus total FUM: $51.5b
Investment portfolio: $15.3b
Third-party FUM: $36.2b
Third-party FUM to Investment portfolio: 2.4x
Multi-disciplined team with expertise across the real asset spectrum
Office
$20.5b
Industrial
$10.5b
Retail
$9.8b
Growth markets
$10.3b
Infrastructure, Healthcare, Alternatives
Equity capital pools of scale and diversity:
>35,800 listed investors
150+ unlisted institutional investors
530+ unlisted high net worth investors
3,900+ unlisted registered retail investors
Note: Data as at 31 December 2025. Real estate securities account for c.$0.4b of total FUM. Unlisted high net worth investors include private wealth groups, platforms and high net worth registered holders.
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Three key levers to drive value creation
Drivers of value creation
Drive asset level outperformance
> Asset selection and driving operational performance
> Enabled by deep tenant relationships, development expertise and insights gained from operating across sectors
Optimise capital allocation
> Deliberately recycling and deploying capital within defined risk appetite
> Enabled by a disciplined approach and real-time insights gained from managing a diverse portfolio
Invest alongside clients
> Generating profitable fee income from investing alongside clients
> Enabled by an established funds management platform with more than four decades of experience
- Capital allocation presents a significant value creation driver
- Recycling non-core assets and increasing capital efficiency of higher quality assets
- Securities buyback screens favourably at current trading levels; reinvestment preferences currently tilted towards growth markets
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dexus
Transitioning the balance sheet is a key strategic focus
- As at 31 December 2025.
- Spot price as at 1 May 2025.
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Development opportunities
Governed by capital allocation framework
Debt paydown
> Preserves capital strength and may be accretive at current rates
> c. $600m remaining under announced divestment program
Securities buyback
> Opportunity to create tangible value at current pricing
> 10% program represents c. $675m at spot price²
Reinvestment for growth
> Potential to create meaningful value by improving the underlying risk-return profile and capital efficiency
dexus
March 2026 Portfolio update
Increased office occupancy and continued fund outperformance
| Dexus^{1} | |
|---|---|
| Dexus office portfolio | Dexus industrial portfolio |
| 93.1% | |
| Occupancy increased | |
| HY26: 92.2% | 96.9% |
| Occupancy remained high | |
| HY26: 97.0% | |
| 25.8% | |
| Average incentives^{2} | |
| HY26: 28.4% | 20.1% |
| Average incentives | |
| HY26: 21.5% | |
| 35,600sqm | |
| Stabilised leasing | |
| across 67 transactions | 128,800sqm |
| Stabilised leasing | |
| across 13 transactions |
Funds
- DWPF continued to outperform its benchmark over 1, 3, 5, 7 and 10-year time periods
- DWSF continued to deliver performance since transitioning to Dexus's platform, outperforming its benchmark over 1, 3, 5 and 7-year time periods
- $670 million3 third party equity commitments raised since HY26 result from both domestic and offshore investors, with renewed interest in high quality core real estate
-
APAC hearing concluded in the New South Wales Supreme Court on 21 April 2026 and Dexus awaits a court ruling on the matter
-
Agreement secured with Boral providing capital efficient access to long dated development pipeline, subject to rezoning and business plan approvals, with potential lettable area of 2.5 million sqm
- The shifting macroeconomic environment and interest rate outlook is expected to slow the recovery
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dexus
Disclaimer
Dexus Funds Management Limited (ACN 060 920 783, AFSL 238163) ("Responsible Entity") is the responsible entity of Dexus (ASX code: DXS) ("Dexus" or "Fund") and issuer of stapled securities in the Fund. The Fund comprises two registered schemes, Dexus Property Trust (ARSN 648 526 470) and Dexus Operations Trust (ARSN 110 521 223).
This document has been prepared for informational purposes only and is not an offer, solicitation, or invitation to invest in Dexus.
The information in this document, including, without limitation, any forward-looking statements, or opinions ("Information"), may be subject to change without notice. Any forward-looking statements or opinions are based on estimates and assumptions related to conditions such as future business, economic, market, political, social or other conditions, that are inherently subject to significant uncertainties and risks. Actual results may differ materially from those predicted or implied by any forward-looking statements or opinions for a range of reasons.
While care has been taken in the preparation of this document, the Responsible Entity, Dexus, their related bodies corporate and their officers, employees and advisers make no or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information. The Information should not be considered to be comprehensive or to comprise all the information which an investor or potential investor may require in order to determine whether to invest or deal in Dexus stapled securities. Before acquiring or to continuing to hold stapled securities in the Fund, investors should consider information about the Fund in periodic and continuous disclosure materials ("Disclosure Materials"). The Disclosure Materials contain important information, and it is important that investors read the Disclosure Materials before making an investment decision about Dexus. The Disclosure Materials are available from Dexus by visiting www.dexus.com/dxs by emailing inedexus.com or by phoning +612 9017 1330.
This document has been prepared for the purpose of providing general information, without taking account of any particular investor's objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to their objectives, financial situation and needs.
The repayment and performance of an investment in the Fund (including any particular rate of return referred to in this document) is not guaranteed by the Responsible Entity, Dexus, any of their related bodies corporate or any of their officers, employees and advisers. This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.
Past performance is not a reliable indicator of future performance.
All currency figures are expressed in Australian dollars (AUD) unless otherwise specified. This document may not be distributed to any person in any jurisdiction outside Australia where it would be contrary to applicable laws, regulations or directives.
Due to rounding, any numbers presented throughout this presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
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