Dexus Industria sells Melbourne asset, records portfolio uplift
Dexus for the Industria REIT (DXI) has agreed to divest a Melbourne asset for $14.2 million, while a fresh valuation round added $19.1m to the trust’s $1.5 billion portfolio.
The manager is banking a 4.5 per cent premium to book value for 83 Rushdale Street, Knoxfield.
Via the APN Industria REIT, which Dexus took over six years ago, it paid $9.45m in May, 2019.
The 1.152 hectare asset is leased to Australian Glass Group.
Proceeds will be tipped into DXI’s development pipeline and a securities buy-back.
Portfolio value rise
The Knoxfield disposal comes as all 90 properties in the DXI portfolio were independently valued in the year to June 30, Dexus announced to the stock exchange today.
The valuation uplift was a net $19.1m or 1.3pc.
Contracted rental growth and leasing outcomes were drivers; the weighted average capitalisation rate held at 5.91pc.
Like-for-like portfolio income rose 5.3pc while re-leasing spreads reached 21.4pc.
Occupancy was 98.8pc as at June 30, with the portfolio carrying a 5.2 year weighted average lease expiry. About 87pc of income is subject to fixed or CPI-linked reviews.
The portfolio secured 169,693 sqm of leasing during the financial year – 89,414 sqm across the stabilised portfolio, the balance (80,279 sqm), development leasing.
DXI said its urban infill acquisitions were also performing in line with its investment thesis.
The trust recently repositioned and secured a pre-commitment for a Glendenning asset.
Also in Sydney, an additional lease was signed at a Moorebank asset,
At 50 Jayco Drive, Dandenong South, in Melbourne, it locked in a lease renewal above its underwriting assumptions (continues below).
In July 2025, realestatesource.com.au reported the trust sold Brisbane Technology Park to Corval and Exceed Capital for $155.5m.
Development pipeline
At the ASCEND Industrial Estate in Perth’s Jandakot, DXI recently completed 45,200 sqm of product.
The trust’s committed development pipeline now spans five projects; some 68pc of the 54,200 sqm of product it is building, is pre-leased.
Including uncommitted projects, the development pipeline has potential for 219,000 sqm with an estimated total project cost of $217m and completions extended to the 2030 financial year.
The trust reported funds from operations of $55.7m, or 17.6pc per security, exceeding upgraded guidance of 17.4 cents.
Distributions were 16.6pc, in line with guidance.
Statutory net profit fell $74.4m from $84.m a year earlier.
Net tangible assets increased 8c, or 2.4pc, to $3.425 per security.
Look-through gearing was 31.2pc, the lower end of the trust’s 30-40pc target range. It had no debt maturities until FY28 at June 30.
DXI fund manager, Jason Weate, said the trust’s performance was primarily driven by leasing outcomes including forward leasing and positive re-leasing spreads.
The fund also increased its securities buy-back target to 5pc with 60pc of the original 2.5pc target completed.
For FY27, DXI expects funds from operations of 17pc per security and distribution of 16.6c with the latter unchanged from FY26.
The outlook incorporates the impact of a post-balance date zero-cost hedge restructure which is expected to reduce FY27 funds-from-operations but provide greater visibility over medium-term interest costs.
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