Dexus (DXS.AX): DXS divests more office assets, with sale of its Brisbane asset

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Dexus (DXS.AX): DXS divests more office assets, with sale of its Brisbane asset

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30 Jul 2026 07:57:11 ET │ 12 pages

Dexus (DXS.AX)

DXS divests more office assets, with sale of its Brisbane asset

CITI'S TAKE

Neutral DXS has further exchanged contracts to offload 480 Queen Street,

Brisbane for a gross sale price of $700mn, inline with Jun-26 valuation Price (30 Jul 26 16:00) A$5.94

and 4% discount to Dec-25 valuation. This is in continuation to 3 office Target price A$6.50

asset sales announced earlier during the week, which was also done at Expected share price return 9.4%

similar valuations. DXS and DWPF hold 50% ownership each in the asset, Expected dividend yield 6.2%

and settlement is expected during Dec-26. Divestments through assets Expected total return 15.6%

sales announced this week crossed $1.4bn, which, coupled with $1.4bn

Market Cap A$6,371M divestments progressed till Dec-25, puts it well above its divestment

US$4,431M target program for FY25-27, but Dexus aims to redeploy funds into higher

returns initiatives. While we continue to remain cautious of the office

sector and DXS, given short term headwinds on APAC related losses and

elevated finance costs, this update is relatively positive in our view. Funds Australian Real Estate Team

realization through 480 Queen Street sale are expected to lower gearing

by ~1%. Howard PennyAC

+61-2-8225-4819

howard.penny@citi.com

Transaction Details - Dexus and Dexus Wholesale Property Fund (DWPF) each hold

50% ownership in 480 Queen Street, Brisbane, which is being divested for a gross Suraj Nebhani, CFA

sale price of $700mn. The net sale price is $657mn, inline with Jun-26 valuation. suraj.nebhani@citi.com

Dexus expects to receive $259mn of net sale price in settlement by 1-Dec-26, with Akshit Batra