Dexus (0DPS) AI Stock Analysis

Company Guidance

Guidance for FY‑27: management expects AFFO of $0.375–$0.395 per security and distributions in line with FY‑26 at $0.37 per security (FY‑26 AFFO was $484m with a $0.37 distribution and an 82% payout ratio). They expect FY‑27 earnings to be lower driven by minimal contribution from trading profits and performance fees, higher financing costs, practical completion of Atlassian and allowances for materially lower contributions from funds under review. Balance sheet and capital guidance: look‑through gearing was 33.4% (expected to fall by ~1.5 percentage points after announced divestments), committed development spend is ~$490m over the next 12 months, the group is targeting to release >$2bn of capital over the next two years, and buybacks will be an active lever; funding metrics include a 4.2‑year weighted average debt maturity, $2.5bn of headroom and 91% of debt hedged at an average hedge rate of ~3%. Operationally management expects continued leasing momentum and slightly lower maintenance/ leasing CapEx, while corporate and management costs have been reduced by >$30m since FY‑24 (group corporate costs down 6% in FY‑26).