Dexus (DXS.AX), an Australasian real asset group, reported Tuesday that its office occupancy by income in the March quarter increased sequentially, and was well above the market average. Meanwhile, industrial occupancy declined from the preceding quarter.
Separately, Dexus announced a joint venture with Boral Limited to develop a major logistics precinct in Melbourne's western corridor with a potential lettable area of 2.5 million square metres.
The JV is structured for capital efficiency, with Dexus and future third-party capital partners holding a combined 50 percent interest and Boral holding the remaining 50 percent.
In the JV partnership, Dexus and Boral plans to transform 630 hectares of land owned by Boral at Ravenhall into a large institutionally held logistics precinct in Australasia, subject to rezoning and business plan approvals.
In its March quarter trading update, Dexus reported that Office portfolio occupancy by income increased to 93.1 percent from 92.2 percent in the preceding quarter, following leasing success in Melbourne and Sydney. Occupancy by area was 92.7 percent, compared to 91.4 percent in the previous quarter.
Industrial portfolio occupancy was 96.9 percent, lower than 97 percent in the sequential quarter. Occupancy by area was 97.4 percent, down from 97.5 percent in the preceding quarter.
Looking ahead, Ross Du Vernet, Dexus Group Chief Executive Officer & Managing Director, said, "Barring unforeseen circumstances, for the 12 months ended 30 June 2026, Dexus reiterates its expectation for AFFO of 44.5 - 45.5 cents per security and distributions of 37.0 cents per security. FY27 will be a more challenging year with an immaterial contribution from performance fees and trading profits, which are meaningful in FY26."
In Australia, the shares were losing around 3.4%, trading at A$6.05.
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