Dexus's properties likely resilient to AI-driven job cuts

Dexus CEO Ross Du Vernet said city-centre offices may be more resilient than suburban properties to AI-related job cuts, and the company reported A$348.5 million in net profit and plans a buyback of up to 10%.

Dexus Chief Executive Ross Du Vernet said city-centre offices appear more resilient than suburban properties to job cuts that artificial intelligence could bring to Australia's white-collar workforce. He linked the risk to middle- and back-office functions, which he said are typically based in suburban buildings rather than central business districts. The remarks came after Dexus reported first-half results showing net profit of A$348.5 million and funds from operations of A$352.2 million. The company also announced plans to buy back up to 10% of its stock and its shares rose about 7% in trading following the update. Key facts: - Du Vernet said Dexus owns core CBD, multi-tenant office buildings and that the company’s average office tenant occupies about 1,000 square metres. - He noted that insurers and large financial firms house most back-office operations in suburban properties that Dexus does not own. - Dexus reported net profit of A$348.5 million for the six months through December, up from A$10.3 million a year earlier, and funds from operations rose 4.3% to A$352.2 million. - The company announced a share buyback program of up to 10% of stock over the next 12 months, and its share price rose roughly 7% after the results. - The Reserve Bank of Australia raised rates by 25 basis points to 3.85% this month, and Du Vernet said that broad AI adoption could have deflationary effects that influence longer‑run interest rates. Summary: Du Vernet framed AI as more likely to affect suburban back-office roles than central business district tenants and described AI as a potential productivity enhancer for Dexus's clients. Dexus posted stronger-than-expected half-year results and announced a buyback program; further effects on the portfolio and market will unfold in the months ahead.