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Dexus

ASX:DXS
Snowflake Description

Average dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DXS
ASX
A$13B
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $31.8 billion. The last earnings update was 61 days ago. More info.


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DXS Share Price and Events
7 Day Returns
-2.6%
ASX:DXS
0.1%
AU REITs
1.3%
AU Market
1 Year Returns
18.3%
ASX:DXS
20.5%
AU REITs
9.9%
AU Market
DXS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Dexus (DXS) -2.6% -3.2% -11.7% 18.3% 32.5% 72.7%
AU REITs 0.1% 0.4% -2.8% 20.5% 23.4% 58.9%
AU Market 1.3% -0.6% -1% 9.9% 17.6% 17.8%
1 Year Return vs Industry and Market
  • DXS underperformed the REITs industry which returned 20.5% over the past year.
  • DXS outperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
DXS
Industry
5yr Volatility vs Market

Value

 Is Dexus undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Dexus to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Dexus.

ASX:DXS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:DXS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.47 (1 + (1- 30%) (32.23%))
0.606
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:DXS using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

ASX:DXS Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$9.65
Current discount Discount to share price of A$11.81
= -1 x (A$11.81 - A$9.65) / A$9.65
-22.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Dexus is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Dexus's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Dexus's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:DXS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$1.25
ASX:DXS Share Price ** ASX (2019-10-11) in AUD A$11.81
Australia REITs Industry PE Ratio Median Figure of 38 Publicly-Listed REITs Companies 15.7x
Australia Market PE Ratio Median Figure of 557 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Dexus.

ASX:DXS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:DXS Share Price ÷ EPS (both in AUD)

= 11.81 ÷ 1.25

9.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dexus is good value based on earnings compared to the AU REITs industry average.
  • Dexus is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Dexus's expected growth come at a high price?
Raw Data
ASX:DXS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-13.8%per year
Australia REITs Industry PEG Ratio Median Figure of 31 Publicly-Listed REITs Companies 1.2x
Australia Market PEG Ratio Median Figure of 357 Publicly-Listed Companies 1.69x

*Line of best fit is calculated by linear regression .

ASX:DXS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.48x ÷ -13.8%

-0.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dexus earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Dexus's assets?
Raw Data
ASX:DXS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$10.71
ASX:DXS Share Price * ASX (2019-10-11) in AUD A$11.81
Australia REITs Industry PB Ratio Median Figure of 43 Publicly-Listed REITs Companies 1.11x
Australia Market PB Ratio Median Figure of 1,705 Publicly-Listed Companies 1.8x
ASX:DXS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:DXS Share Price ÷ Book Value per Share (both in AUD)

= 11.81 ÷ 10.71

1.1x

* Primary Listing of Dexus.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dexus is good value based on assets compared to the AU REITs industry average.
X
Value checks
We assess Dexus's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Dexus has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Dexus expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-13.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Dexus expected to grow at an attractive rate?
  • Dexus's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Dexus's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Dexus's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:DXS Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:DXS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -13.8%
ASX:DXS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -10.8%
Australia REITs Industry Earnings Growth Rate Market Cap Weighted Average 2.5%
Australia REITs Industry Revenue Growth Rate Market Cap Weighted Average -3.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.2%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:DXS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:DXS Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 994 716 896 3
2021-06-30 898 735 911 3
2020-06-30 851 745 1,169 3
2019-10-13
ASX:DXS Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,331 493 1,281
2019-03-31 1,366 627 1,370
2018-12-31 1,400 760 1,458
2018-09-30 1,389 685 1,594
2018-06-30 1,379 610 1,729
2018-03-31 1,397 573 1,637
2017-12-31 1,416 536 1,545
2017-09-30 1,396 597 1,405
2017-06-30 1,376 657 1,264
2017-03-31 1,286 592 1,221
2016-12-31 1,197 527 1,178
2016-09-30 1,295 595 1,219

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Dexus's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Dexus's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:DXS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Dexus Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:DXS Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.82 1.02 0.62 2.00
2021-06-30 0.83 1.16 0.60 3.00
2020-06-30 1.06 1.94 0.57 3.00
2019-10-13
ASX:DXS Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 1.25
2019-03-31 1.34
2018-12-31 1.43
2018-09-30 1.57
2018-06-30 1.70
2018-03-31 1.63
2017-12-31 1.56
2017-09-30 1.43
2017-06-30 1.31
2017-03-31 1.26
2016-12-31 1.22
2016-09-30 1.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Dexus is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Dexus's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Dexus has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Dexus performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Dexus's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Dexus has delivered over 20% year on year earnings growth in the past 5 years.
  • Dexus's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Dexus's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.
Earnings and Revenue History
Dexus's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Dexus Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:DXS Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,331.20 1,281.00 121.10
2019-03-31 1,365.65 1,369.60 117.05
2018-12-31 1,400.10 1,458.20 113.00
2018-09-30 1,389.35 1,593.55 109.65
2018-06-30 1,378.60 1,728.90 106.30
2018-03-31 1,397.20 1,637.10 104.30
2017-12-31 1,415.80 1,545.30 102.30
2017-09-30 1,395.65 1,404.75 100.60
2017-06-30 1,375.50 1,264.20 98.90
2017-03-31 1,286.45 1,221.25 96.00
2016-12-31 1,197.40 1,178.30 93.10
2016-09-30 1,294.70 1,219.05 92.10
2016-06-30 1,392.00 1,259.80 91.10
2016-03-31 1,400.25 1,209.10 91.05
2015-12-31 1,408.50 1,158.40 91.00
2015-09-30 1,259.75 888.55 88.70
2015-06-30 1,111.00 618.70 86.40
2015-03-31 1,049.10 502.95 83.15
2014-12-31 987.20 387.20 79.90
2014-09-30 872.65 396.90 75.60
2014-06-30 758.10 406.60 71.30
2014-03-31 715.90 478.35 70.65
2013-12-31 673.70 550.10 70.00
2013-09-30 666.15 535.80 69.20
2013-06-30 658.60 521.50 68.40
2013-03-31 658.60 462.60 69.65
2012-12-31 658.60 403.70 70.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Dexus has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Dexus used its assets more efficiently than the AU REITs industry average last year based on Return on Assets.
  • Dexus's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Dexus's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Dexus has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Dexus's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Dexus's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Dexus's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Dexus's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Dexus's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Dexus Company Filings, last reported 3 months ago.

ASX:DXS Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 11,743.30 4,175.60 29.80
2019-03-31 11,743.30 4,175.60 29.80
2018-12-31 10,492.80 3,636.90 36.70
2018-09-30 10,492.80 3,636.90 36.70
2018-06-30 10,047.40 3,444.90 35.90
2018-03-31 10,047.40 3,444.90 35.90
2017-12-31 9,556.50 3,682.00 24.50
2017-09-30 9,556.50 3,682.00 24.50
2017-06-30 8,824.50 2,903.70 23.40
2017-03-31 8,824.50 2,903.70 23.40
2016-12-31 8,104.40 3,381.40 19.70
2016-09-30 8,104.40 3,381.40 19.70
2016-06-30 7,523.10 3,797.50 27.50
2016-03-31 7,523.10 3,797.50 27.50
2015-12-31 7,324.60 3,372.50 25.50
2015-09-30 7,324.60 3,372.50 25.50
2015-06-30 6,777.30 2,890.40 15.60
2015-03-31 6,777.30 2,890.40 15.60
2014-12-31 6,148.90 3,459.90 14.30
2014-09-30 6,148.90 3,459.90 14.30
2014-06-30 6,053.30 3,351.70 16.40
2014-03-31 6,053.30 3,351.70 16.40
2013-12-31 5,251.60 2,401.20 10.30
2013-09-30 5,251.60 2,401.20 10.30
2013-06-30 5,191.70 2,246.50 15.30
2013-03-31 5,191.70 2,246.50 15.30
2012-12-31 5,063.40 2,016.40 46.00
  • Dexus's level of debt (35.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (55.4% vs 35.6% today).
  • Debt is not well covered by operating cash flow (11.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
X
Financial health checks
We assess Dexus's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Dexus has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Dexus's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.25%
Current annual income from Dexus dividends. Estimated to be 4.63% next year.
If you bought A$2,000 of Dexus shares you are expected to receive A$85 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Dexus's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Dexus's dividend is below the markets top 25% of dividend payers in Australia (5.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:DXS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Australia REITs Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 4.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 407 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:DXS Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.57 6.00
2021-06-30 0.55 7.00
2020-06-30 0.53 7.00
2019-10-13
ASX:DXS Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-08-13 0.502 4.016
2018-12-13 0.513 4.124
2018-06-19 0.478 4.651
2017-12-18 0.475 4.977
2017-06-19 0.455 4.709
2016-12-12 0.422 4.351
2016-08-16 0.435 4.808
2016-06-20 0.409 4.367
2016-02-16 0.461 5.647
2015-08-11 0.427 5.727
2014-12-18 0.229 3.025
2014-08-29 0.376 5.352
2013-12-09 0.371 5.659
2013-08-30 0.373 5.971
2012-12-18 0.347 5.438
2012-08-15 0.322 5.483
2012-02-29 0.320 5.805
2012-02-15 0.312 5.855
2012-02-14 0.320 6.051
2011-06-21 0.311 6.118
2010-06-21 0.294 5.868
2009-12-18 0.318 6.513
2009-08-18 0.438 9.219
2009-02-18 0.456 10.487

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Dexus's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (1449.3x coverage).
X
Income/ dividend checks
We assess Dexus's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Dexus afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Dexus has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Dexus's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Darren Steinberg
COMPENSATION A$6,116,763
TENURE AS CEO 7.6 years
CEO Bio

Mr. Darren Joseph Steinberg, BEc, FRICS, FAPI, FAICD, has been Non-Executive Director at VGI Partners Limited since May 12, 2019. Mr. Steinberg, BEc, FRICS, FAPI, FAICD, has been the Chief Executive Officer and Executive Director of Dexus Funds Management Limited, Responsible entity of Dexus at Dexus Property Group since March 1, 2012. Mr. Steinberg has been the President at Property Council of Australia Ltd since April 11, 2011. He served as Managing Director of Property at Colonial First State Asset Management (Australia) Limited. Mr. Steinberg served as the Head of Colonial First State Property Management Pty Ltd. and Head of Australian Listed Property Funds at CFS Retail Property Trust from August 2006 to November 2009. He served as the Chief Executive Officer of Shopping Centre Division at Stockland Corporation Limited until November 2006. Mr. Steinberg served as the Principal Executive Officer of Novion RE Limited since November 2009. He oversaw the performance and strategic direction for all vehicles managed by these businesses. His extensive experience in the property industry includes senior roles at Stockland Property Group, Westfield, Lend Lease, Jones Lang Wooton and Baillieu Knight Frank. He served as Principal Executive Officer of Novion RE Limited. He has been a Director of DEXUS since March 01, 2012. He serves as the Chairman of Dexus Finance Pty Limited and has been its Director since March 1, 2012. Mr. Steinberg serves as Director of Dexus Rents Trust. He served as a Director of Kiwi Income Properties Limited from March 1, 2011 to November 2011. He is a Director and former National President of Property Council of Australia. He has over 25 years' experience in the property and funds management industry with an extensive background in office, industrial and retail property investment and development. He is a Fellow of the Australian Institute of Company Directors, Royal Institution of Chartered Surveyors and the Australian Property Institute. He is also a founding member of Property Male Champions of Change. Mr. Steinberg received a Bachelor of Economics from the University of Western Australia.

CEO Compensation
  • Darren's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Darren's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Dexus management team in years:

4.8
Average Tenure
  • The tenure for the Dexus management team is about average.
Management Team

Darren Steinberg

TITLE
CEO & Executive Director of DEXUS Funds Management Limited
COMPENSATION
A$6M
TENURE
7.6 yrs

Alison Harrop

TITLE
Chief Financial Officer
COMPENSATION
A$2M
TENURE
4 yrs

Ross Du Vernet

TITLE
Chief Investment Officer
COMPENSATION
A$2M
TENURE
3.3 yrs

Kevin George

TITLE
Executive General Manager of Office
COMPENSATION
A$2M
TENURE
6.8 yrs

Deborah Coakley

TITLE
Executive General Manager of Funds Management
COMPENSATION
A$2M
TENURE
5.6 yrs

David Yates

TITLE
Executive GM of Investor Relations

Brett Cameron

TITLE
General Counsel & Company Secretary of Dexus Funds Management Limited

Paul Oates

TITLE
Group General Manager of Development
TENURE
4.8 yrs

Scott Mahony

TITLE
Head of Governance & Company Secretary of Dexus Funds Management Limited
TENURE
1.8 yrs

Chris Hynes

TITLE
Head of Office & Industrial Leasing
Board of Directors Tenure

Average tenure and age of the Dexus board of directors in years:

6.5
Average Tenure
67.5
Average Age
  • The tenure for the Dexus board of directors is about average.
Board of Directors

Wallace Sheppard

TITLE
Non-Executive Chairman of DEXUS Funds Management Limited
COMPENSATION
A$400K
AGE
70
TENURE
4 yrs

Darren Steinberg

TITLE
CEO & Executive Director of DEXUS Funds Management Limited
COMPENSATION
A$6M
TENURE
7.6 yrs

Peter St George

TITLE
Independent Non-Executive Director of DEXUS Funds Management Limited
COMPENSATION
A$215K
AGE
72
TENURE
10.5 yrs

Tonianne Dwyer

TITLE
Independent Non-Executive Director of DEXUS Funds Management Limited
COMPENSATION
A$247K
AGE
57
TENURE
8.2 yrs

Penny Bingham-Hall

TITLE
Independent Non-Executive Director of DEXUS Funds Management Limited
COMPENSATION
A$224K
AGE
59
TENURE
5.3 yrs

Mark Henry Ford

TITLE
Independent Non-Executive Director of DEXUS Funds Management Limited
COMPENSATION
A$202K
AGE
65
TENURE
2.9 yrs

John Conde

TITLE
Independent Non-Executive Director of DEXUS Funds Management Limited
COMPENSATION
A$223K
AGE
71
TENURE
10.5 yrs

Nicola Roxon

TITLE
Independent Non-Executive Director of DEXUS Funds Management Limited
COMPENSATION
A$201K
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Dexus individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
22. Aug 19 Buy Nicola Roxon Individual 16. Aug 19 16. Aug 19 1,000 A$13.00 A$13,005
14. Feb 19 Sell Darren Steinberg Individual 07. Feb 19 07. Feb 19 -199,500 A$11.85 A$-2,364,075
30. Dec 18 Sell The Vanguard Group, Inc. Company 16. Feb 17 20. Dec 18 -14,858,138 A$11.22 A$-166,733,858
30. Dec 18 Buy The Vanguard Group, Inc. Company 09. Feb 17 21. Dec 18 32,094,651 A$11.32 A$361,941,678
26. Nov 18 Sell BlackRock, Inc. Company 21. Aug 17 23. Nov 18 -12,627,609 A$10.90 A$-16,204
26. Nov 18 Buy BlackRock, Inc. Company 21. Aug 17 26. Nov 18 20,079,711 A$10.89 A$64,294
X
Management checks
We assess Dexus's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Dexus has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Did Dexus (ASX:DXS) Use Debt To Deliver Its ROE Of 11%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Dexus: 11% = AU$1.3b ÷ AU$12b (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Return on Equity measures a company's profitability against the profit it has kept for the business (plus any capital injections).

Simply Wall St -

How Much Are Dexus (ASX:DXS) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in Dexus (ASX:DXS). … See our latest analysis for Dexus Dexus Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director of DEXUS Funds Management Limited, Darren Steinberg, sold AU$2.4m worth of shares at a price of AU$11.85 per share. … ASX:DXS Recent Insider Trading, August 15th 2019 Insider Ownership I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

Should You Buy Dexus (ASX:DXS) For Its Dividend?

Strong earnings per share (EPS) growth might encourage our interest in the company despite fluctuating dividends, which is why it's great to see Dexus has grown its earnings per share at 17% per annum over the past five years. … Dexus's earnings per share have grown rapidly in recent years, although more than half of its profits are being paid out as dividends, which makes us wonder if the company has a limited number of reinvestment opportunities in its business. … Second, earnings per share have been essentially flat, and its history of dividend payments is chequered - having cut its dividend at least once in the past.

Simply Wall St -

Consider These Factors, Then Buy Dexus (ASX:DXS)

I'm talking about the well-proven, robust track record Dexus. … This consistent market outperformance illustrates a robust track record of delivering strong returns over a number of years, increasing my conviction in Dexus as an investment over the long run. … Next Steps: Dexus makes for a robust long-term investment based on its scale, financial health and track record.

Simply Wall St -

Do Directors Own Dexus (ASX:DXS) Shares?

Our analysis of the ownership of the company, below, shows that institutions own shares in the company. … Check out our latest analysis for Dexus ASX:DXS Ownership Summary, July 1st 2019 What Does The Institutional Ownership Tell Us About Dexus? … Insider Ownership Of Dexus The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

One Metric To Rule Them All: Dexus (ASX:DXS)

This tells us how long it will take DXS to pay off its debt using its income from its main business activities, and gives us an insight into DXS’s ability to service its borrowings. … However, before you decide on whether or not to invest in DXS, I highly recommend taking a look at other aspects of the stock to consider: Future Outlook: What are well-informed industry analysts predicting for DXS’s future growth? … Take a look at our free research report of analyst consensus for DXS’s outlook.

Simply Wall St -

Should You Worry About Dexus's (ASX:DXS) CEO Pay Cheque?

Check out our latest analysis for Dexus How Does Darren Steinberg's Compensation Compare With Similar Sized Companies? … At the time of writing our data says that Dexus has a market cap of AU$14b, and is paying total annual CEO compensation of AU$4.9m. … We took a group of companies with market capitalizations over AU$12b, and calculated the median CEO total compensation to be AU$5.3m.

Simply Wall St -

Should You Be Excited About Dexus's (ASX:DXS) 14% Return On Equity?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Dexus: 14% = AU$1.5b ÷ AU$10b (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Dexus's Debt And Its 14% ROE While Dexus does have some debt, with debt to equity of just 0.35, we wouldn't say debt is excessive. … Companies that can achieve high returns on equity without too much debt are generally of good quality.

Simply Wall St -

Does Dexus's (ASX:DXS) Share Price Gain of 88% Match Its Business Performance?

For example, the Dexus (ASX:DXS) share price is up 88% in the last 5 years, clearly besting than the market return of around 7.0% (ignoring dividends). … Over half a decade, Dexus managed to grow its earnings per share at 15% a year. … In fact, the share price seems to largely reflect the EPS growth.

Simply Wall St -

Three Things You Should Check Before Buying Dexus (ASX:DXS) For Its Dividend

Dividend paying stocks like Dexus (ASX:DXS) tend to be popular with investors, and for good reason - some research shows that a significant amount of all stock market returns come from reinvested dividends. … Yet sometimes, investors buy a popular dividend stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. … With Dexus yielding 4.0% and having paid a dividend for over 10 years, many investors likely find the company quite interesting.

Simply Wall St -

Company Info

Description

Dexus is one of Australia’s leading real estate groups, proudly managing a high quality Australian property portfolio valued at $31.8 billion. We believe that the strength and quality of our relationships is central to our success, and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia, and directly own $15.6 billion of office and industrial properties. We manage a further $16.2 billion of office, retail, industrial and healthcare properties for third party clients. The group’s circa $9.3 billion development and concept pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.7 million square metres of office workspace across 53 properties, we are Australia’s preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by 26,000 investors from 19 countries. With 35 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for investors.

Details
Name: Dexus
DXS
Exchange: ASX
Founded: 2004
A$12,953,889,023
1,096,857,665
Website: http://www.dexus.com
Address: Dexus
Australia Square,
Level 25,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX DXS Stapled Securities Australian Securities Exchange AU AUD 06. Oct 2004
OTCPK DXSP.F Stapled Securities Pink Sheets LLC US USD 06. Oct 2004
DB 0DPS Stapled Securities Deutsche Boerse AG DE EUR 06. Oct 2004
CHIA DXS Stapled Securities Chi-X Australia AU AUD 06. Oct 2004
Number of employees
Current staff
Staff numbers
539
Dexus employees.
Industry
Office REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:30
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/10/10
Last earnings filing: 2019/08/13
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.