Dexus APAC costs ruling: circa $30 million indemnity ordered, already reflected in FY26 accounts
Dexus (ASX: DXS) has provided an update on the APAC matter after the NSW Supreme Court determined the costs and indemnity claims on 26 October 2026. The determination follows the court’s earlier finding that the Default Notice is valid.
The update builds on the prior announcement of 4 September 2026. Dexus stated that the estimated total of the amounts was reflected within the costs of approximately $60 million expensed in its FY26 Consolidated Statement of Comprehensive Income.
Headline orders include:
- Dexus Capital Investors Limited (DCIL) to pay amounts totalling circa $30 million under the indemnity in the APAC Shareholders’ Deed.
- Other Dexus Bloc shareholders who were plaintiffs to pay costs on the ordinary basis.
- DCIL provisionally ordered to pay hearing costs on the indemnity basis.
- TCorp’s $7.4 million indemnity claim resolved before judgment, with final terms being finalised.
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What the Court ordered
The orders cover indemnity payments, proceeding costs and the costs of the hearing itself. The table below summarises them as stated by Dexus.
| Party ordered to pay | Basis | Recipients | Amount or share | Status |
|---|---|---|---|---|
| DCIL | Indemnity in the APAC Shareholders’ Deed | APAC, IFM, Future Fund, UTA | Circa $30 million in total | Ordered |
| Other Dexus Bloc shareholders who were plaintiffs | Ordinary basis, except costs already covered | APAC, IFM, Future Fund, UTA | Costs of the proceedings | Ordered |
| DCIL | Indemnity basis, to the extent not covered above | Future Fund and UTA | Their costs of the costs and indemnity hearing | Provisional; takes effect after seven days unless a party objects in writing |
| DCIL | Indemnity basis, to the extent not covered above | APAC and IFM | 80% of their costs of the costs and indemnity hearing | Provisional; takes effect after seven days unless a party objects in writing |
Indemnity payments by DCIL
The Court ordered DCIL to pay amounts totalling circa $30 million under the indemnity in the APAC Shareholders’ Deed. The recipients are:
- Australia Pacific Airports Corporation Limited (APAC)
- IFM Investors (Nominees) Limited (IFM)
- The Northern Trust Company and the Future Fund Board of Guardians (together, Future Fund)
- Utilities of Australia Pty Ltd (UTA)
Costs orders and hearing costs
The Court also ordered the other Dexus Bloc shareholders who were plaintiffs to pay APAC, IFM, Future Fund and UTA’s costs of the proceedings on the ordinary basis. Costs already covered by the indemnity orders are excluded, so there is no double recovery.
DCIL was provisionally ordered to pay the costs of the costs and indemnity hearing on the indemnity basis, to the extent not covered above. This covers Future Fund’s and UTA’s costs and 80% of APAC’s and IFM’s costs, and the orders take effect after seven days unless a party objects in writing.
TCorp resolution and financial treatment
Before judgment was delivered, Dexus and SAS Trustee Corporation and J.P. Morgan Nominees Australia Ltd as nominee for JPMorgan Chase Bank, N.A. (Sydney Branch) in its capacity as custodian for SAS Trustee Corporation (together, TCorp) resolved TCorp’s indemnity claim. The claimed amount was $7.4 million.
The final terms of the resolution are being finalised. If it is not finalised, TCorp may seek to have its claim determined by the Court.
For investors, the key point is the accounting treatment. The estimated total of the amounts above was reflected within the costs of approximately $60 million that could be more reliably estimated at 30 June 2026 and were expensed in Dexus’s FY26 Consolidated Statement of Comprehensive Income.
Dexus reported its FY26 annual results with AFFO of $483.9 million and distributions of 37.0 cents per security in line with guidance, and FY27 guidance points to lower earnings as the infrastructure platform faces a strategic review following the APAC matter.
How indemnity and costs orders work for investors
A contractual indemnity under a shareholders’ deed is an agreement by one party to cover certain losses or costs of another. Here, the Court ordered payments under the indemnity in the APAC Shareholders’ Deed.
Costs orders come in different forms. Ordinary-basis costs generally cover a more limited portion of a successful party’s legal expenses, while indemnity-basis costs are generally assessed more generously, covering more of those expenses.
Provisioning matters because costs already expensed in a prior period are already reflected in reported results. That reduces the chance of a surprise to reported earnings when a court later determines the amounts.
What happens next in the APAC matter
Dexus stated the following forward steps:
- The provisional hearing-costs orders against DCIL take effect after seven days unless a party objects in writing.
- The TCorp resolution’s final terms are being finalised. If it is not finalised, TCorp may seek to have its claim determined by the Court.
- The Appeals hearing remains scheduled for 30 November to 2 December 2026, with an additional day available if required. Any appeal against the orders of the NSW Supreme Court on the claims for costs and indemnity may also be heard together with the Appeals.
- Dexus will provide further updates on the APAC matter in accordance with its disclosure obligations.
Dexus manages a portfolio valued at $51.4 billion, including the $15.3 billion listed portfolio.
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