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Corporate overview

Dexus (ASX:DXS) is a leading Australasian fully integrated real asset group, managing a high-quality Australasian real estate and infrastructure portfolio valued at A$61bn (pro forma post final completion of the AMP Capital acquisition). 

We directly and indirectly own A$17.4bn of office, industrial, healthcare, retail and infrastructure assets and investments. We manage a further A$43.6bn of investments in our funds management business (pro forma post final completion of the AMP Capital acquisition) which provides third-party capital with exposure to quality sector specific and diversified real asset products. The funds within this business have a strong track record of delivering performance and benefit from Dexus’s capabilities. 

The group’s A$17.4bn real estate development pipeline provides the opportunity to grow both portfolios and enhance future returns. Our sustainability aspiration is to unlock the potential of real assets to create lasting positive impact and a more sustainable tomorrow, and is focused on the priorities of customer prosperity, climate action and enhancing communities. 

Vision: To be globally recognised as Australasia’s leading real asset investment manager. 

Strategy: To deliver superior risk-adjusted returns for investors from high-quality real estate and infrastructure assets. 

Our strategy will be delivered by pursuing two key strategic objectives: 

  • Generating resilient income streams by investing in assets that provide resilience through-the-cycle
  • Being identified as investment manager of choice by expanding and diversifying the funds management business.

Investment principles & strategy

Dexus’s strategic objectives of generating resilient income streams and being identified as investment manager of choice are supported by a concentrated focus on factors that will position Dexus well through economic cycles. These factors include: investing and managing high-quality assets, access to a broad range of capital sources, maintaining a balance sheet of scale and strength, commitment to ESG outcomes, and an agile, solution-based culture. 

We view scale as a key differentiator. Operational scale supports asset-level performance by broadening customer insights, enhancing our ability to attract high-quality team members and providing capacity to invest in leading systems and technology. We invest alongside our third capital partners to access real asset investments with the objectives of improving portfolio quality and performance and achieving scale in our core markets. In real estate, our scale and capability across healthcare (circa A$2bn of funds under management), industrial (circa A$12bn), office (circa A$24bn) and retail (circa A$10bn) provides Dexus and its partners with exposure to a range of large, growing markets from which to secure attractive investments. This sets the basis for delivery of the Dexus strategy via the creation of a ‘virtuous cycle’ of capital raising, deployment of proceeds and delivery of returns for investors.

Sector forecasts

INDUSTRIAL: The industrial sector is expected to continue its rent growth phase in the year ahead, buoyed by low vacancy and rising construction costs, although the pace of growth should slow considerably from last year. Demand has eased over the quarter and is expected to remain cyclically slow in the short term with retailers reducing and monitoring inventory. 

Longer term the industrial demand outlook appears positive given the e-commerce thematic and investment by retailers in multi-channel fulfilment as well as population growth trends, particularly in Queensland and Western Australia, which benefit from interstate migration. 

OFFICE: The office sector was impacted by the pandemic with a fall in demand leading to elevated vacancy rates. A slowing economy points to relatively subdued demand in the year ahead keeping vacancy rates high with a soft short-term rent outlook. 

The sector is adjusting to a more flexible hybrid working approach. Demand has been characterised by leasing and expansion among small-medium firms, offset by consolidation among larger firms. Flight-to-quality is a key theme, with tenants from lower grade spaces moving to prime offices. There has also been a flight-to-core locations. Businesses are moving to better space to help with staff retention, providing a good working environment and supporting ESG goals. Construction cost pressures are likely to constrain office supply somewhat in the medium term. 

RETAIL: The retail sector staged a robust recovery after the pandemic lockdowns of 2020 and 2021, however it now faces headwinds in the form of monetary tightening and low consumer sentiment. Consumer spending growth is likely to ease in the short term as interest rates rise and inflation increases the cost of living. On a positive note, shopping centre vacancy rates have fallen over the past year, providing a buffer for centre income in the year ahead. 

Shopping centre tenant mixes are evolving to include more consumer staples, dining, entertainment, leisure, and services to cater to evolving consumer shopping experience expectations. Further, the value of shopping centre sites will benefit from the potential to expand the mix of uses to incorporate build to rent residential, hotels, fulfilment centres and healthcare. Online retail turnover growth has recently lowered to below pre-pandemic levels, suggesting that in-person retailing is still a preferred mode of shopping. Longer term the Australian retail sector stands to benefit from Australia’s high population growth relative to other advanced economies.

Strategic corporate development 

Dexus has pursued growth in its fund management business, including through the establishment of a healthcare sector fund, airport fund, and an opportunistic closed-end fund over the past five years. In 2021, Dexus acquired APN Property Group (APN), which gave Dexus exposure to two listed REITs and a number of securities funds, both of which were new investment areas for Dexus. 

In March 2023, the first stage of Dexus’s acquisition of AMP Capital’s real estate and domestic infrastructure equity business reached completion, enabling the integration of the real estate and domestic infrastructure equity business into the Dexus platform. Final completion of the transaction will occur following satisfaction of the final condition precedent, which requires Chinese regulatory approval in relation to China Life AMP Asset Management. Please refer to the ASX announcement on the Dexus website for further information. 

The acquisition is underpinned by a compelling strategic rationale for Dexus: 

  • Further diversifies Dexus’s fund management platform with an expanded investor base 
  • Expanded capabilities to drive an enhanced offering and asset performance 
  • Provides a scalable platform for growth, underpinned by Dexus’s best practice governance and risk management framework 
  • Long-term value creation potential for Dexus security holders and funds management partners. 

Performance verification 

Dexus provides fund level and/or asset level data to MSCI for the performance verification of most of its funds.


This document is issued by Dexus Funds Management Limited (DXFM) in its capacity as responsible entity of Dexus (ASX code: DXS). It is not an offer of securities for subscription or sale and is not financial product advice. Information in this presentation including, without limitation, any forward-looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted by law, DXFM and Dexus, and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied by any forward-looking statements for a range of reasons outside the control of the relevant parties. The information contained in this presentation should not be considered to be comprehensive or to comprise all the information which a Dexus security holder or potential investor may require in order to determine whether to deal in Dexus stapled securities or any Dexus fund. This presentation does not take into account the financial situation, investment objectives and particular needs of any particular person. The repayment and performance of an investment in Dexus or a Dexus fund is not guaranteed by DXFM or any of its related bodies corporate or any other person or organisation. This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.