Dexus shares lift after property update and dividend news

The Dexus (ASX: DXS) share price is back on investors' radars today after the company released two updates late this morning. Currently, the property company's shares are up 0.57% to $6.98.

Both announcements provide insight into the health of the property portfolio and the timing of the next distribution.

Taken together, the updates provide a useful snapshot of the business' current position as 2025 draws to a close, offering investors a clearer view of what to expect heading into the new year.

Property values show early signs of stabilising

Dexus confirmed that 174 of its 175 assets have now been externally valued as at 31 December 2025. The draft valuations point to a modest uplift of around $83 million, or roughly 0.7%, across its stabilised and development portfolio over the past six months.

While the increase is modest, it stands out given the higher interest rate environment and ongoing pressure across the property sector.

The office portfolio recorded a lift of about 0.4%, while industrial assets increased by roughly 1.4%, driven mainly by rental growth. Capitalisation rates edged slightly higher in offices, while industrial cap rates tightened modestly.

This suggests that valuation pressure may be easing, particularly for higher-quality assets in stronger locations.

Dexus CEO Ross Du Vernet said it was encouraging to see a second straight half-year of valuation growth, adding that quality properties continue to outperform the broader market.

Distribution details confirmed

Alongside the valuation update, Dexus also confirmed an estimated distribution of 19.3 cents per security for the six months to 31 December 2025.

The key dates investors will want to note are:

• Ex-distribution date: 30 December 2025
• Record date: 31 December 2025
• Payment date: 27 February 2026

The final distribution amount will be confirmed when Dexus releases its HY26 results on 18 February 2026, but this gives income investors a clear timeline.

Why this matters for investors

For a REIT like Dexus, stability is important. After a tough period for property valuations across the sector, signs that values are flattening out, or even ticking higher, are important.

It also helps that Dexus has been actively managing its balance sheet, raising capital where needed, and maintaining flexibility. Combined with steady distributions, that positions the group reasonably well as conditions slowly improve.

At the current share price, investors are still being paid to wait, while watching for further signs that the property cycle is turning.

Foolish Takeaway

Today's updates are unlikely to prompt a strong market reaction, but they do suggest Dexus is moving in the right direction. Valuations appear to be stabilising, industrial assets are holding up well, and income remains intact.

For long-term investors who prioritise steady cash flow and gradual recovery over quick wins, Dexus remains a REIT worth keeping on the radar as we head into 2026.

The post Dexus shares lift after property update and dividend news appeared first on The Motley Fool Australia.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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