1 ASX dividend stock down 30% I'd buy right now

The ASX dividend stock Dexus Industria REIT (ASX: DXI) has fallen 30% since December 2021. When a compelling business falls that far, I think it's a great time to consider it for the value and passive income on offer.

It's not one of the most well-known real estate investment trusts (REITs) on the ASX, but it looks very appealing at the current unit price of $2.47.

The business is invested in a portfolio of high-quality industrial warehouses. As at 30 June 2026, the ASX dividend stock's portfolio was valued at $1.5 billion and was located across major Australian cities. It aims to provide sustainable income and capital growth for investors over the long term.

Let's look at how attractive the business is.

Large distribution payouts

Despite headwinds from higher interest rates, the business has indicated it will maintain its payout at 16.6 cents per unit in FY27, the same as in FY26.

If Dexus Industria REIT pays 16.6 cents per unit in FY27, that translates into a forward distribution yield of 6.7%.

Investors should also know that the business is retaining some of its rental profit to improve its balance sheet. In FY27, it expects to generate 17 cents per unit of funds from operations (FFO) – net rental profit – which implies the business expects a distribution payout ratio of 97.6%.

While that distribution payout ratio is high, being under 100% means it's sustainable.

The business is also experiencing strong organic rental growth, which can help offset the headwind of higher interest rates.

In August, it reported its FY26 results, which showed like-for-like portfolio income growth of 5.3% driven by rental escalations, strong re-leasing spreads of 21.4%, and a high occupancy rate of 98.8%.

The re-leasing spread shows that the business is now earning 21.4% higher rent on newly signed rental contracts than on old ones. That's a big organic boost to rental earnings.

Large asset discount makes the ASX dividend stock appealing

The business regularly tells investors its underlying value.

A net tangible asset (NTA) indicates the value of a company's property, loans, cash, and other assets.

In the FY26 results, it reported an NTA of $3.42 per unit as at 30 June 2026. At the time of writing, its unit price is $2.47, so it's trading at a 28% discount.

I think it's trading at a very attractive discount, and I expect that discount could close materially once interest rates start coming down again. I'd be happy to buy today, be patient and watch the significant passive income roll in this financial year and the subsequent years.  

The post 1 ASX dividend stock down 30% I'd buy right now appeared first on The Motley Fool Australia.

Motley Fool contributor Tristan Harrison 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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