Earnings call transcript: Dexus Industria REIT posts stronger FY 2026 FFO

Dexus Industria REIT reported stronger-than-guided full-year funds from operations (FFO) of AUD 55.7 million, or AUD 0.176 per security, for the fiscal year 2026. This beat upgraded guidance and contributed to a quarterly distribution of AUD 0.166 per security, with a payout ratio of 94.4%. The industrial landlord's robust rent growth, high occupancy of 98.8%, and a busy leasing pipeline were key factors driving the positive results.

Despite higher debt costs and the sale of a property, the trust's portfolio performed well, with like-for-like income growth of 5.3% and re-leasing spreads reaching 21.4%. Management also raised the buyback program to 5% and noted its execution at a steady pace. Looking ahead, FY 2027 guidance points to flat reported FFO, as higher interest costs and the hedge restructure offset operating gains.

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