Analysts have trimmed their price target for DEXUS by about A$0.30. This reflects slightly lower fair value estimates, along with more moderate expectations for revenue contraction, profit margins and future P/E.
What's in the News
- DEXUS announced an ordinary dividend of A$0.193 per security for the six months ending December 31, 2025, with a record date of December 31, 2025, ex date of December 30, 2025, and payment date of February 27, 2026 (Key Developments).
- DEXUS is reported to be selling The Bond complex at 30 The Bond, Sydney, for about A$280 million, with funds manager AsheMorgan in due diligence to acquire the A grade office tower in the Barangaroo precinct (Key Developments).
- The Bond sale price of about A$280 million is described as above a previously held book value of about A$260 million for the asset, with interest in the building linked to its location and leasing potential in an active office market (Key Developments).
- DEXUS previously reduced the June 2023 book value of 30 The Bond from about A$354 million to about A$260 million during a period of higher interest rates, consistent with a broader focus on recycling capital into other opportunities (Key Developments).
- DEXUS was also reported to have sold a Melbourne office building, Flinders Gate, for A$254.5 million via CBRE, as part of ongoing portfolio activity (Key Developments).
Valuation Changes
- The fair value estimate has been trimmed from 8.144 to 7.843, indicating a small reduction in the modelled per security value.
- The discount rate has eased from 7.40% to about 7.09%, pointing to slightly lower required returns in the updated assumptions.
- Revenue growth has been revised from a 16.12% decline to a 12.00% decline, reflecting a less severe contraction in forecast revenues.
- The net profit margin has been reduced from about 102.74% to about 86.39%, showing a lower level of expected profitability in the model.
- The future P/E has been adjusted from 13.87x to about 13.64x, a modest move that leaves the earnings multiple broadly similar to previous expectations.
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