DEXUS INDUSTRIA REIT (DXI)
Share Price Analysis and Chart

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10/09/2025

2

Accumulate

$3.00

4.53%

Morgans assesses the outlook for REITs, highlighting the potential tailwinds from lower interest rates, combined with limited supply coming on stream due to high construction costs which cannot be justified given rental rates.

The analyst views the investment case for the A-REIT sector continues to improve and confirms the previous key picks.

Only three stocks exceed the over 20% total shareholder return criteria for a Buy rating and include DigiCo Infrastructure REIT ((DGT)), HMC Capital ((HMC)) and Eureka Group Holdings ((EGH)).

Morgans earnings forecasts for Dexus Industria REIT are conditional on the sale of Brisbane Technology Park and FFO estimates are lowered by -7% for FY26 and -7% for FY27. Accumulate rating and $3 target retained.

FORECAST
Morgans forecasts a full year FY26 dividend of 16.70 cents.
Morgans forecasts a full year FY27 dividend of 17.10 cents.

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15/08/2025

1

Buy

$3.38

17.77%

Dexus Industria REIT reported FY25 funds from operations (FFO) of 18.2c and a distribution of 16.4c, in line with upgraded guidance.

Like-for-like rent growth was 3.5%, highlights Moelis, while net tangible assets (NTA) were steady at $3.34.

The broker notes Dexus Industria REIT will become a pureplay industrial REIT after agreeing to sell its last remaining office assets for $155.5m, a -4% discount to book value, with settlement expected in 1H26.

The divestment and the purchase of a vacant Glendenning property for conversion into a multi-tenant logistics facility will be short-term dilutive, cautions the broker, with the latter expected to lease from FY27.

FY26 guidance of 17.3c FFO and 16.6c distribution is -8% below the analyst's prior forecasts, reflecting asset sales, development timing, and temporary income dilution.

The portfolio remains more than 99% leased, highlights Moelis, with limited near-term expiries and gearing set to drop around -5 percentage points after transactions.

The broker sees potential earnings growth of more than 4% p.a., supported by a 5% development landbank, stable debt costs, and the ability to deploy capital accretively. The target price is trimmed to $3.38 from $3.41, with a Buy rating retained.

FORECAST
Moelis forecasts a full year FY26 dividend of 16.60 cents and EPS of 17.30 cents.
Moelis forecasts a full year FY27 dividend of 16.80 cents and EPS of 18.20 cents.