Dexus' Outlook Is Rosier but Uncertainties Persist Into Fiscal 2026

Diversification has been at the forefront of Dexus’ strategy in recent years. Once Australia’s largest office landlord, Dexus is shifting focus to managing third-party assets rather than having investment properties on its own balance sheet. Dexus has a record of selling stakes in assets into funds management vehicles. The asset base on its funds management platform grew substantially over the last five years, to AUD 36 billion at the end of June 2025, largely thanks to the purchase of AMP Capital’s domestic real estate and infrastructure funds in 2023. Funds management currently accounts for 17% of the total funds from operations, up from 7% in fiscal 2019. We expect the segment to account for roughly 30% of midcycle FFO in the future.