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Undervalued
Morningstar Quantitative Rating as of 22 OCT 2026.
Quantitative Equity Rating Methodology – view here
Five-star price 6.57 Fair value 7.64 One-star price 8.89
Morningstar Quantitative Rating as of 22 OCT 2026.
Morningstar Quantitative Rating as of 22 OCT 2026. The slider runs from the five-star price (6.57) to the one-star price (8.89).
| Ratios |
|---|
| Currency (Price/reporting): AUD/AUD |
| Exchange Rate: 1.0000 |
| Price - closing or last bid | 5.75 |
| Price - 12 month high | 7.73 |
| Price - 12 month low | 5.30 |
| Pricing date | 22 OCT 2026 |
| Volume - avg. trading volume for the last ten days | 2.79 |
| Market capitalization | 6,139.13 |
| 12 Month High price date | 28 OCT 2025 |
| 12 Month Low price date | 3 JUN 2026 |
| Volume - avg. trading volume for the last 3 months | 3.46 |
| Price - 1 Day % Change | 1.41% |
| Price - 13 week price percent change | 0.52% |
| Price - 26 week price percent change | -7.26% |
| Price - 5 Day % Change | 1.41% |
| Price - 52 week price percent change | -23.33% |
| Price - YTD price percent change | -17.03% |
| Price % Change Month To Date | 3.23% |
| EPS excluding extraordinary items - most recent fiscal year | 0.546 |
| EPS excluding extraordinary items - trailing 12 month | 0.546 |
| EPS Normalized - most recent fiscal year | 0.595 |
| Revenue/share - most recent fiscal year | 0.592 |
| Revenue/share - trailing 12 month | 0.592 |
| Book value per share - most recent fiscal year | 9.274 |
| Book value per share - most recent half-year | 9.274 |
| Book value (tangible) per share - most recent fiscal year | 8.847 |
| Book value (tangible) per share - most recent half-year | 8.847 |
| Cash per share - most recent fiscal year | 0.054 |
| Cash per share - most recent half-year | 0.054 |
| Cash Flow per share - most recent fiscal year | 0.488 |
| Cash Flow per share - trailing 12 month | 0.488 |
| Dividend per share - most recent fiscal year | — |
| Dividends per share - trailing 12 month | 0.370 |
| EBITD per share - trailing 12 month | 0.441 |
| EPS Basic excluding extraordinary items - most recent fiscal year | 0.570 |
| EPS Basic excluding extraordinary items - trailing 12 month | 0.570 |
| EPS including extraordinary items - most recent fiscal year | 0.570 |
| EPS including extraordinary items - trailing 12 month | 0.570 |
| Free Cash Flow per share - trailing 12 month | 0.458 |
| P/E excluding extraordinary items, most recent fiscal year | 10.39 |
| P/E Normalized, most recent fiscal year | 9.53 |
| Price to sales - most recent fiscal year | 9.58 |
| Price to Tangible Book - most fiscal year | 0.64 |
| Price to Free Cash Flow per Share - most recent fiscal year | 12.39 |
| Price to Cash Flow per share - trailing 12 month | 11.63 |
| Price to Book - most recent fiscal year | 0.61 |
| P/E excluding extraordinary items high, trailing 12 months | 53.02 |
| P/E excluding extraordinary items low, trailing 12 months | 9.95 |
| Net Debt, LFI | 4,600.40 |
| Net Debt, LFY | 4,596.60 |
| Dividend Yield - 5 Year Average | 6.00% |
| Dividend Yield - indicated annual dividend divided by closing price | 6.60% |
| Current Dividend Yield - Common Stock Primary Issue, LTM | 6.43% |
| Free Cash Flow - most recent fiscal year | 512.00 |
| LT debt/equity - most recent fiscal year | 35.80% |
| Payout ratio - most recent fiscal year | — |
| Total debt/total equity - most recent fiscal year | 46.69% |
| LT debt/equity - most recent half-year | 38.62% |
| Total debt/total equity - most recent half-year | 46.53% |
| Free Cash Flow - trailing 12 month | 512.00 |
| Payout ratio - trailing 12 month | — |
| Revenue - most recent fiscal year | 662.10 |
| Revenue - trailing 12 month | 662.10 |
| EBITD - most recent fiscal year | 493.60 |
| EBITD - trailing 12 month | 493.60 |
| Earnings before taxes - most recent fiscal year | 480.40 |
| Earnings before taxes - trailing 12 month | 480.40 |
| Net Income available to common - most recent fiscal year | 610.40 |
| Net Income available to common - trailing 12 months | 610.40 |
| Earnings before taxes Normalized - most recent fiscal year | 559.50 |
| Net Income Available to Common, Normalized - most recent fiscal year | — |
| Earnings per Share, Normalized, Excluding Extraordinary Items, Avg. Diluted Shares Outstanding, TTM | 0.60 |
| Net Profit Margin % - 1st historical fiscal year | 72.83% |
| Net Profit Margin % - trailing 12 month | 72.83% |
| Operating margin - 1st historical fiscal year | 33.53% |
| Operating margin - trailing 12 month | 33.53% |
| Pretax margin - trailing 12 month | 72.56% |
| Pretax margin - 1st historical fiscal year | 72.56% |
| Operating Margin - 5 year average | 40.62% |
| Pretax Margin - 5 year average | 0.97% |
| Free Operating Cash Flow/Revenue, 5 Year Average | 80.33% |
| Free Operating Cash Flow/Revenue, TTM | 77.33% |
| Net Profit Margin - 5 year average | 0.66% |
| Return on average assets - most recent fiscal year | 3.15% |
| Return on average assets - trailing 12 month | 3.15% |
| Return on average equity - most recent fiscal year | 4.84% |
| Return on average equity - trailing 12 month | 4.84% |
| Return on average assets - 5 year average | 0.13% |
| Return on average equity - 5 year average | 0.13% |
| Net Income/employee - most recent fiscal year | — |
| Revenue/employee - most recent fiscal year | — |
| Revenue growth rate, 5 year | -8.18% |
| EPS growth rate, 5 year | -12.22% |
| Growth rate% - dividend, 3 year | -10.49% |
| Revenue/share (5 yr growth) | -8.71% |
| Growth rate% - Revenue, 3 year | -7.54% |
| Growth rate% - EPS, 3 year | — |
| Book value per share growth rate, 5 year | -4.43% |
| Capital Spending growth rate, 5 year | 15.36% |
| Earnings Before Interest, Taxes, Depreciation & Amortization, 5 Year CAGR | -16.10% |
Financial forecast (AUD, millions except per share)
| Actuals | Estimates | |||||||
| 2026 | 2027 | 2028 | ||||||
| Estimate breakdown | ||||||||
Financials (AUD, millions)
| Period end: | JUN 22 | JUN 23 | JUN 24 | JUN 25 | JUN 26 |
| Fiscal year: | 2022 | 2023 | 2024 | 2025 | 2026 |
| Period length: | 12 months | 12 months | 12 months | 12 months | 12 months |
Announcements
| DATE | TIME | HEADING | PAGES |
| Price sensitive |
We looked at DXS earlier in the month after its positive reaction to a solid 1H result - Here. We liked the plan to buy back up to 10% of the stock with the shares trading ~20% below its NTA plus its healthy ~6% yield, but its exposure to office space is not ideal if we see an increase in white collar unemployment on the back of AI implementation.
Dexus (DXS) is one of Australia’s leading real estate groups, owning, managing and developing high-quality office, industrial and infrastructure assets across the country. They delivered a better-than-expected 1H result – covered Here.
DXS +6.81%: posted a strong 1H update, maintaining its full-year distribution outlook , a reassuring outcome after a period of weaker share price performance. The standout was the launch of a new on-market buyback, signalling more proactive capital management and providing share price support around these levels.
We’ve owned DXS in the past and written about it numerous times, though we don’t own it now. We’re drawn to it for income and the potential for an ongoing recovery in the domestic office market.
There is a growing consensus that the office market has turned. In the past 6 months, we’ve checked in with key industry players, Dexus, Charter Hall, Mirvac, JLL, Cushman & Wakefield and others, and there is a belief the Australian office market demonstrated real signs of recovery throughout 2024 and that 2025 will see ongoing improvement in both leasing volumes and capital markets activity. Dexus stated in their February results, “Markets move in cycles, and we are now reaching a turning point for real asset markets.
DXS -8.93%: An inline result for FY24 from Australia’s largest office landlord despite an eye watering headline loss of $1.58bn due to property revaluations, with lowered guidance for FY25 the catalyst for today’s slide;
We believe National Storage (NSR) now looks relatively more attractive than Dexus (DXS) as a consequence of recent relative performance.
Dexus is Australia’s largest office landlord, and while there is significant conjecture around the future of office, we believe this uncertainty is more than captured in the price. They delivered a solid, ‘less bad’ than expected, result in February, although the stock hasn’t yet embraced the numbers. Guidance for the full year was unchanged despite the stronger 1H, with a flagged FY24 dividend of 48 cps, which puts DXS on a yield of ~6.2%.
DXS -1.64%: A better-than-expected result from Australia’s largest office landlord this morning with 1H24 adjusted funds from operations (AFFO’s) of 33.9cps around 5% ahead of consensus expectations while the dividend of 26.7cps was solid.
DXS is offering deep value as it arguably occupies the most unloved seat in the sector, its strong bounce over the last fortnight illustrates what it's capable of if we see some love return to the sector.
MM is bullish towards DXS around $6
MM is bullish towards DXS around $6.70
MM sees decent value in DXS below $7
MM is positive on DXS ~$7
MM is bullish on DXS ~$7.20
MM is neutral on DXS, preferring other property stocks for now.
MM are selling DXS in the Active Income Portfolio, taking a loss around $7.03
MM continues to like DXS as an Income stock through 2024
MM is bullish DXS and long in the Active Income Portfolio
MM is long and bullish on DXS
Dexus has ownership interest in, manages, and develops a portfolio of office and industrial assets, about half located in Sydney. The office portfolio contributes almost 60% of group earnings, and industrial assets account for about 15%. Dexus also manages third-party assets and has a funds management platform with AUD 36 billion in funds under management as of June 30, 2026, spanning office, industrial, retail, healthcare, infrastructure, and their adjacent sectors. The REIT has stakes in many of the pooled funds, earning distribution income. Management is internalized, in contrast to some of its peers.
Performance update for March, stocks that drove returns & our current positioning
Recorded Tuesday 9th April
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