Dexus (DXS.AX): DXS continues to progress with its divestment program, exceeding $2bn target for FY25-FY27

Research evidence excerpt

Dexus (DXS.AX): DXS continues to progress with its divestment program, exceeding $2bn target for FY25-FY27

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27 Jul 2026 06:39:14 ET │ 13 pages

Dexus (DXS.AX)

DXS continues to progress with its divestment program, exceeding $2bn

target for FY25-FY27

CITI'S TAKE Neutral

Price (27 Jul 26 16:00) A$5.73 Dexus Group announced the divestment of 3 wholly-owned office

Target price A$6.50 properties in Sydney and Brisbane, generating $715mn, putting it ahead of

its FY25-FY27 divestment target of $2bn. DXS already secured $1.4bn of Expected share price return 13.4%

divestments out of its target $2bn by Dec-2025 and today's divestments Expected dividend yield 6.4%

demonstrate its strong focus on execution. The 3 divestments announced Expected total return 19.8%

today for 30-34 Hickson Road & 36 Hickson Road, Sydney, and 123 Albert Market Cap A$6,146M

Street, Brisbane were done at par to June-26 book value, and ~4% US$4,290M

discount to Dec-25 valuations. Settlement is expected in Oct-26, and sale

proceeds are expected to reduce DXS pro-forma gearing by 2% on

realisation. While we continue to remain cautious of the office sector and

DXS, given short term headwinds on APAC related losses and elevated Australian Real Estate Team

finance costs, this update is relatively positive in our view. With DXS

Howard PennyAC

trading at a meaningful discount to NTA, we maintain our Neutral rating, +61-2-8225-4819

seeing limited short-term catalysts. howard.penny@citi.com

Suraj Nebhani, CFA

Transaction details-

suraj.nebhani@citi.com

• Dexus divested its 3 properties at 30-34 Hickson Road & 36 Hickson Road, Akshit Batra

Sydney, and 123 Albert Street, Brisbane for $715mn which is in-line with its akshit.batra@citi.com

June-26 valuations and ~4% discount to combined Dec-25 valuations.