DXC Sells Three Service Station Assets Above Book Value to Fund Buy-Back
DXC exchanges contracts on three assets totalling $8 million
Dexus Convenience Retail REIT (ASX: DXC) has exchanged contracts to divest three convenience retail assets for a combined price of $8.0 million, representing an average 1.4% premium to their 31 December 2025 book values.
Expected settlement dates for the three assets are as follows:
- 1 Wishart Street, Gwelup WA — expected mid-July 2026
- 1 Flinders Street, Monto QLD — expected mid-August 2026
- 74 Connor Street, Zilzie QLD — expected mid-August 2026
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What’s driving the divestment strategy
The divestments form part of DXC’s deliberate portfolio quality improvement program, with the fund actively exiting smaller assets and sites with older tank technology. Proceeds from the sales are earmarked for the fund’s on-market security buy-back program, directing capital back to existing securityholders.
Pat De Maria, DXC Fund Manager, commented:
Pat De Maria, DXC Fund Manager
“These divestments reflect the continued strength in demand for convenience retail assets that offer stable and defensive income, with pricing achieved reinforcing the value of our portfolio. We remain disciplined in divesting smaller assets and sites with older tank technology to improve portfolio quality, with proceeds to be redeployed into our on-market security buy-back to enhance value for existing securityholders.”
Understanding Australian convenience retail REITs
A convenience retail REIT is a listed investment trust that owns service stations and convenience retail properties, generating income through long-term leases with contracted annual rent increases. The asset class is widely regarded as defensive, given its stable tenant base, essential-services nature, and extended lease profiles that provide consistent income through varying economic conditions.
DXC’s portfolio was valued at approximately $760 million at 31 December 2025, predominantly located on Australia’s eastern seaboard and leased to leading Australian and international convenience retail tenants. The fund maintains a conservative approach to capital management, with a target gearing range of 25–40%, designed to provide a sustainable level of income security for securityholders.
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Portfolio quality and what comes next for DXC securityholders
The 1.4% premium to book value achieved across these three sales signals that demand for convenience retail assets remains firm, with pricing supporting the broader carrying value of DXC’s portfolio. The direct redeployment of proceeds into the on-market security buy-back represents a considered capital allocation decision, concentrating value for existing securityholders rather than pursuing reinvestment into new assets.
DXC is governed by a majority Independent Board and managed by Dexus (ASX: DXS), a leading Australasian fully integrated real asset group with more than four decades of expertise in real estate and infrastructure investment, funds management, asset management and development.
The three divested assets are summarised below:
| Asset address | Location | Expected settlement | Price note |
|---|---|---|---|
| 1 Wishart Street | Gwelup, WA | Mid-July 2026 | Part of $8.0 million combined transaction |
| 1 Flinders Street | Monto, QLD | Mid-August 2026 | Part of $8.0 million combined transaction |
| 74 Connor Street | Zilzie, QLD | Mid-August 2026 | Part of $8.0 million combined transaction |
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