Real estate giant Dexus (ASX:DXS) has delivered a robust half-year result for the period ended Dec. 31, 2025, signaling a definitive turnaround in the Australian property sector.
The group reported a statutory net profit after tax of $348.5 million, a massive leap from the $10.3 million recorded in the prior corresponding period, primarily driven by a second consecutive half of property valuation uplifts.
CEO Ross Du Vernet noted that real asset markets have passed their "point of inflection," with stabilising asset prices and improving transaction volumes.
A key highlight was the group’s adjusted funds from operations of $253.3 million, supporting a distribution of 19.3 cents per security at a payout ratio of 82%.
Dexus showed significant momentum in its office sector, as leasing volumes hit 95,300sqm—nearly double the previous year—with the Waterfront Brisbane Project now 71% pre-leased.
The group has made $1.4 billion in progress toward its $2 billion divestment target for FY25-27, including the sale of 100 Mount Street in North Sydney.
Despite the positive earnings, Du Vernet highlighted a "sustained disconnect" between the company’s equity market valuation and its underlying asset value.