2301 GMT - For UBS, Dexus is stuck in the "too hard" basket, despite trading at a 37% discount to net tangible assets. Reasons for caution include the lawsuit involving Australia Pacific Airports Corp. The court recently dismissed Dexus's claims and UBS thinks the case could stretch well into FY27 if Dexus appeals the decision. Investors will be watching whether those APAC shareholders represented by Dexus will be forced to sell their shares. Also, Dexus's funds from operations are challenged and a buyback program is unlikely to offer meaningful support, UBS says. And there are still questions about labor reliability, timelines and construction costs for Dexus's Waterfront Brisbane project, analyst Cody Shield says. "Of the large-cap A-REITs offering exposure to the office recovery thematic, we have a strong preference for GPT," UBS says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

June 01, 2026 19:01 ET (23:01 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.