This ASX stock is among high quality dividend stocks having a record of consistency.
Dexus Industria REIT (ASX: DXI)
Share price -$2.67
Annual dividend yield - 6.14%
Dividend Pay date - 15 May 2025
Dividend amount per share $0.041
Franking - 0%
Dividend ex date - 28 March 2025
Market cap $847.11M
As of 12 March 2025
Dexus Industria REIT (DXI) reported strong performance for the half-year ending December 31, 2024, highlighting improvements in portfolio quality through high-quality developments and robust leasing activity. The company confirmed a distribution of 8.2 cents per security and an increase in Funds From Operations (FFO) per security by 5.7% to 9.1 cents. The statutory net profit after tax stood at $53.7 million, a significant turnaround from a $10.2 million loss in the prior corresponding period, primarily driven by property valuation gains. The company achieved a net valuation uplift of $34 million, reflecting a 2.4% increase in property values, which contributed to an 8-cent rise in Net Tangible Asset (NTA) per security, bringing it to $3.32.
The portfolio maintained a high occupancy rate of 99.5% and continued to generate secure income, with strong re-leasing spreads of 12.1% and like-for-like income growth of 4.7%. Brisbane Technology Park (BTP) performed particularly well, with a 17.6% increase in like-for-like income and strong tenant interest due to its affordability compared to the broader Brisbane CBD office market. DXI’s industrial portfolio was valued at $1.3 billion, benefiting from a weighted average lease expiry of 5.6 years and steady rent reviews averaging 3.8% per annum. Leasing activity was strong, securing 89,160 square metres across the portfolio, including 58,831 square metres in development leasing.
DXI’s strategic focus remains on enhancing portfolio quality through disciplined capital allocation and targeted investments in modern industrial assets. The company successfully completed new developments, including the ASCEND project at Jandakot, which saw a fully leased 20,300 square metre property delivered with a yield on cost of 6.6%. Additionally, pre-leasing commitments for future developments have been secured with blue-chip tenants, positioning DXI well for continued growth.
Financially, DXI maintained a strong capital position, with a look-through gearing of 27.7%, below its target range of 30–40%. Hedged debt accounted for 81% of total borrowings, providing resilience against interest rate fluctuations. The company extended $116 million in debt facilities and executed $83 million in incremental hedging at an attractive average rate of 3.5%. With no debt maturities until November 2026, DXI remains well-capitalized to support future investments.
DXI’s commitment to sustainability is evident in its adoption of 100% renewable electricity for its operational assets and maintaining carbon neutrality across its business operations. The company improved its NABERS energy rating to 5.0 stars and continued expanding its solar energy initiatives, with 198kW of rooftop solar installed at Moorebank and plans for an additional 2.1MW across the portfolio. Waste reduction initiatives at Brisbane Technology Park also contributed to DXI’s sustainability goals.
DXI remains focused on delivering risk-adjusted returns through strategic investments, maintaining strong leasing momentum, and leveraging Dexus’s capabilities in asset management. The company reiterated its FY25 guidance, expecting FFO per security of 17.8 cents, reflecting a 2.3% growth, and distributions per security of 16.4 cents, representing a 6.0% yield. With a well-balanced portfolio, minimal near-term lease expiries, and prudent financial management, DXI is well-positioned to continue generating stable income and long-term value for investors.
(Source: Company Re'sport)
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