Dexus Earnings: Office Portfolio Is Stabilizing

In the first half of fiscal 2025, Dexus reported adjusted funds from operations per security of AUD 23.4 cents, tracking our expectations. Our estimated full-year adjusted FFO is AUD 45 cents per security, at the midpoint of the reaffirmed guidance range of AUD 44.5 cents-AUD 45.5 cents, and down 6% from the previous year. We expect fiscal 2025 distributions of AUD 37 cps, representing a payout ratio of 82%.