Following a review of Dexus Industria REIT's 1H result, Morgans notes resilient portfolio metrics, and highlights higher occupancy levels compared to June 30 last year.

The impact from higher finance costs in the period were offset by lower debt levels due to asset sales, explains the analyst. It's felt the current pro forma look-through gearing of 26.2% ensures sufficient capacity to complete the $42m development pipeline.

Management reiterated FY24 guidance for funds from operations (FFO) and dividend of 17.1cpu and 16.4cpu, respectively.

The Add rating and $3.18 target are unchanged.

Sector: Real Estate.

Target price is $3.18.Current Price is $2.89. Difference: $0.29 - (brackets indicate current price is over target). If DXI meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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