GPT Group (ASX: GPT) and Dexus (ASX: DXS) are two of Australia's largest diversified real estate investment trusts (REITs), with portfolios spanning office, retail, and industrial assets. As of September 2026, both have faced headwinds from higher interest rates and shifting demand for office space, but their valuations and strategies differ.
GPT Group has focused on divesting non-core assets and reinvesting in logistics and prime office properties. Dexus, meanwhile, has a larger office exposure and has been active in funds management, which provides fee income. Analysts often compare their price-to-NAV (net asset value) ratios and distribution yields to gauge value.
Recent market data shows GPT trading at a discount to its NTA (net tangible assets), while Dexus also trades below NTA but with a higher yield. However, Dexus carries higher gearing and more office concentration, which could pose risks if vacancy rates rise. GPT's diversified portfolio and lower gearing may appeal to conservative investors.
Ultimately, the better value depends on an investor's risk tolerance and outlook on commercial property. Both REITs offer attractive yields compared to historical averages, but potential interest rate cuts in 2027 could be a catalyst. Investors should consider their own financial situation and consult a professional before investing.
