OTCPK:DXSP.F

Stock Analysis Report

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Executive Summary

Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $33.8 billion.


Snowflake Analysis

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Dexus's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DXSP.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

DXSP.F

-2.5%

US REITs

2.3%

US Market


1 Year Return

n/a

DXSP.F

-11.6%

US REITs

6.7%

US Market

Return vs Industry: Insufficient data to determine how DXSP.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how DXSP.F performed against the US Market.


Shareholder returns

DXSP.FIndustryMarket
7 Day-0.8%-2.5%2.3%
30 Day12.4%0.7%7.4%
90 Dayn/a-1.0%17.9%
1 Yearn/a-8.0%-11.6%9.0%6.7%
3 Year-10.6%-10.6%12.1%-1.7%36.6%27.7%
5 Year15.8%15.8%39.4%10.8%64.2%46.1%

Price Volatility Vs. Market

How volatile is Dexus's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dexus undervalued compared to its fair value and its price relative to the market?

6.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DXSP.F ($6.52) is trading above our estimate of fair value ($6.23)

Significantly Below Fair Value: DXSP.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DXSP.F is good value based on its PE Ratio (6.3x) compared to the US REITs industry average (27.2x).

PE vs Market: DXSP.F is good value based on its PE Ratio (6.3x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: DXSP.F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: DXSP.F is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Dexus forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DXSP.F's earnings are forecast to decline over the next 3 years (-8.6% per year).

Earnings vs Market: DXSP.F's earnings are forecast to decline over the next 3 years (-8.6% per year).

High Growth Earnings: DXSP.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: DXSP.F's revenue is expected to decline over the next 3 years (-4.4% per year).

High Growth Revenue: DXSP.F's revenue is forecast to decline over the next 3 years (-4.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DXSP.F's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has Dexus performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DXSP.F has a large one-off gain of A$609.8M impacting its December 31 2019 financial results.

Growing Profit Margin: DXSP.F's current net profit margins (96.1%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: DXSP.F's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: DXSP.F's earnings growth over the past year (6.2%) is below its 5-year average (15.3% per year).

Earnings vs Industry: DXSP.F earnings growth over the past year (6.2%) exceeded the REITs industry 5.3%.


Return on Equity

High ROE: DXSP.F's Return on Equity (12.5%) is considered low.


Next Steps

Financial Health

How is Dexus's financial position?


Financial Position Analysis

Short Term Liabilities: DXSP.F's short term assets (A$858.4M) exceed its short term liabilities (A$587.9M).

Long Term Liabilities: DXSP.F's short term assets (A$858.4M) do not cover its long term liabilities (A$4.8B).


Debt to Equity History and Analysis

Debt Level: DXSP.F's debt to equity ratio (37.4%) is considered satisfactory.

Reducing Debt: DXSP.F's debt to equity ratio has reduced from 56.1% to 37.4% over the past 5 years.

Debt Coverage: DXSP.F's debt is not well covered by operating cash flow (13%).

Interest Coverage: DXSP.F's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Dexus's current dividend yield, its reliability and sustainability?

5.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DXSP.F's dividend (5.48%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: DXSP.F's dividend (5.48%) is in the top 25% of dividend payers in the US market (4.6%)


Stability and Growth of Payments

Stable Dividend: DXSP.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: DXSP.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.9%), DXSP.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DXSP.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.07% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

Darren Steinberg

8.33yrs

Tenure

AU$6,116,763

Compensation

Mr. Darren Joseph Steinberg, BEc, FRICS, FAPI, FAICD, has been Non-Executive Director at VGI Partners Limited since May 12, 2019. Mr. Steinberg, BEc, FRICS, FAPI, FAICD, has been the Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Darren's total compensation ($USD4.25M) is below average for companies of similar size in the US market ($USD7.36M).

Compensation vs Earnings: Darren's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Darren Steinberg
CEO & Executive Director of DEXUS Funds Management Limited8.33yrsAU$6.12m0.069% A$4.8m
Alison Harrop
Chief Financial Officer4.75yrsAU$2.05mno data
Ross Du Vernet
Chief Investment Officer4yrsAU$2.26mno data
Kevin George
Executive General Manager of Office7.58yrsAU$2.18mno data
Deborah Coakley
Executive General Manager of Funds Management6.33yrsAU$1.82mno data
David Yates
Executive GM of Investor Relationsno datano datano data
Brett Cameron
General Counsel & Company Secretary of Dexus Funds Management Limitedno datano datano data
Paul Oates
Group General Manager of Development5.58yrsno datano data
Scott Mahony
Head of Governance & Company Secretary of Dexus Funds Management Limited2.5yrsno datano data
Christopher Hynes
Head of Office & Industrial Leasingno datano datano data

5.6yrs

Average Tenure

Experienced Management: DXSP.F's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darren Steinberg
CEO & Executive Director of DEXUS Funds Management Limited8.33yrsAU$6.12m0.069% A$4.8m
John Conde
Independent Non-Executive Director of DEXUS Funds Management Limited11.25yrsAU$222.50k0.0016% A$114.0k
Penelope Bingham-Hall
Independent Non-Executive Director of DEXUS Funds Management Limited6.08yrsAU$223.84k0.0030% A$208.5k
Wallace Sheppard
Independent Non-Executive Chairman of DEXUS Funds Management Limited4.75yrsAU$400.00k0.0081% A$560.8k
Mark Henry Ford
Independent Non-Executive Director of DEXUS Funds Management Limited3.67yrsAU$201.64k0.00092% A$63.9k
Patrick Newton Allaway
Independent Director0.50yrno datano data
Peter St. George
Independent Non-Executive Director of DEXUS Funds Management Limited11.25yrsAU$215.00k0.0017% A$118.1k
Tonianne Dwyer
Independent Non-Executive Director of DEXUS Funds Management Limited8.92yrsAU$246.71k0.0015% A$106.3k
Nicola Roxon
Independent Non-Executive Director of DEXUS Funds Management Limited2.83yrsAU$200.87k0.00058% A$40.3k

6.1yrs

Average Tenure

66yo

Average Age

Experienced Board: DXSP.F's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: DXSP.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dexus's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dexus
  • Ticker: DXSP.F
  • Exchange: OTCPK
  • Founded: 2004
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: AU$9.995b
  • Listing Market Cap: AU$6.949b
  • Shares outstanding: 1.09b
  • Website: https://www.dexus.com

Number of Employees


Location

  • Dexus
  • Australia Square
  • Level 25
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DXSASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDOct 2004
DXSP.FOTCPK (Pink Sheets LLC)YesStapled SecuritiesUSUSDOct 2004
0DPSDB (Deutsche Boerse AG)YesStapled SecuritiesDEEUROct 2004
DXSCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDOct 2004

Biography

Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $33.8 billion. 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. We invest only in Australia, and directly own $16.8 billion of office and industrial properties. We manage a further $17.0 billion of office, retail, industrial and healthcare properties for third party clients. The group’s $11.2 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With more than 1.8 million square metres of office workspace across 55 properties, we are Australia’s preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by 27,000 investors from 20 countries. With 35 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for investors. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 00:37
End of Day Share Price2020/07/07 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.