Dexus Model Update

Research evidence excerpt

Dexus Model Update

J P M O R G A N Asia Pacific Equity Research

08 July 2026

Dexus Overweight

DXS.AX, DXS AU

Model Update Price (08 Jul 26):A$5.65

Price Target (Jun-27):A$8.25

We have updated our forecasts following the recent announcements (link) Australia

regarding the Australia Pacific Airports Corporation (APAC) court case (link) and

Australian REITs

the subsequent decision by the Dexus Bloc shareholders to appeal the verdict. The

first directions hearing is set down for 22 July 2026, at which we expect a timetable Richard Jones, CFA AC

for the appeal to be established. Our revised numbers reflect the ongoing cash cost (61-3) 9633-4038

richard.b.jones@jpmorgan.com

of Dexus funding the appeal, together with a contingency for the other party's costs

Adam West

should the appeal be lost. DXS trades at a 37% discount to NTA, an implied cap (61-2) 9003-8010

rate of ~8.5% and has zero value ascribed to its $36bn funds management platform. adam.west@jpmorgan.com

The next catalyst we are looking out for is the sell-down of assets (~$1bn currently Connor Eldridge

on market at a narrow discount to book) to fund a highly accretive buyback. We (61-2) 9003-6415

maintain our Price Target of $8.25 and retain our Overweight recommendation. connor.eldridge@jpmorgan.com

J.P. Morgan Securities Australia Limited

• Earnings Changes. Our FY26 FFO is flat, our FY27 FFO is down 30bp and

FY28 FFO down 50bp. The downgrades are due to the cumulative interest cost Half Yearly Forecasts (FYE Jun)

of the legal fees paid. We roll forward our PT timeframe to Jun-27 (from Dec- Adj. EPS (A$)

2025A 2026E 2027E

26). H1 0.314 0.327A 0.288

H2 0.316 0.292 0.285

Figure 1: Earnings Changes FY 0.630 0.620 0.572

FY26E FY27E FY28E FY29E 3-yr CAGR

Style Exposure

FFO - New ¢ps 62.0 57.2 61.9 63.0 0.6%