Dexus's Stock Likely Restrained by 'Material Overhangs'
Dow Jones
Aug 21
2312 GMT [Dow Jones]--Property company Dexus's FY26 result served up more questions than answers for Jefferies. Dexus's maiden FY27 earnings guidance implies an up to 17% fall year over year. Analyst Andrew Dodds says delays to Dexus's Waterfront development in Brisbane and ongoing litigation tied to Australia Pacific Airports Corp. remain material overhangs and limit the likelihood of the stock improving significantly in the near term. "Dexus is targeting more than A$2 billion of capital release over 2 years, which should support the balance sheet and earnings growth," Jefferies says. "However, with Look-through gearing still 33%, we see limited scope for material buyback progress." It retains a hold call on Dexus, which ended Thursday at A$5.89.
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