Guess which ASX 200 stock just sank back to its 2014 price

There could be 3 reasons why this well-known company is struggling to make an impression on investors.

| More on:
man bending over to look at red arrow crashing down through the ground

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's a depressing time for investors in one S&P/ASX 200 Index (ASX: XJO) stock on Wednesday as it plunged to lows not seen for nine years.

Office real estate company Dexus (ASX: DXS) is seeing its share price plunge 4% at the time of writing on Wednesday afternoon. 

During the day the ASX 200 stock set not just a new 52-week low, but stumbled down to a level that it last experienced way back in the middle of 2014.

So what's happening with this real estate investment trust (REIT)?

It seems there were multiple factors bearing down on the business:

CEO departing after 11 years in charge

The most obvious catalyst was that Dexus chief executive Darren Steinberg is exiting after 11 years in the role.

He will depart next year after a replacement has been found and briefed. 

"Dexus has a team of experienced and talented people and I will leave knowing that the business is in a strong position to continue to deliver long-term value," said Steinberg.

"I am proud of everything we have achieved as a team for our investors, our customers and our people, and am committed to ensuring a smooth transition."

Office vacancies increase

The second trigger for the ASX 200 stock's fall from grace could have been a performance update from the company on Wednesday morning.

The report showed both occupancy by income and occupancy by area for its office properties had dropped for the September quarter.

It seems the post-COVID change in white collar workers' commuting habits is still a headwind.

"Dexus's office portfolio occupancy by income reduced slightly to 94.7%, primarily driven by vacancy in three Sydney assets located in fringe markets and outside the CBD core."

Interest rates will likely move up (again)

A third reason may be the higher-than-expected inflation figure for Australia also revealed on Wednesday.

This strengthens the case for an interest rate hike on Melbourne Cup day, which is always poison for the real estate sector.

eToro market analyst Josh Gilbert said the surprising inflation numbers "will undoubtedly move the dial for the Reserve Bank".

"This print, alongside a labour market that remains extremely tight, piles the pressure on the RBA to put its foot back on the gas and hike interest rates again."

Should you invest $1,000 in Dexus right now?

Before you buy Dexus shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Dexus wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on REITs

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
REITs

Goodman begins building its first U.S data centre

This blue chip is making big steps with its data centre plans.

Read more »

Magnifying glass in front of an open newspaper with paper houses.
REITs

Real estate making a comeback? 2 ASX REITs rated as top buys

Is now the to look at ASX real estate names?

Read more »

a man with hands in pockets and a serious look on his face stares out of an office window onto a landscape of highrise office buildings in an urban landscape
REITs

Why this could be a great ASX share sector to invest in right now

This could be a smart play right now.

Read more »

Smiling man working on his laptop.
REITs

Upgrades: Macquarie turns bullish on these ASX REITs

Has the sector found a bottom?

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
REITs

2 ASX 200 REITs surging after posting H1 FY25 results

Investors seem to like what they see from these 2 specialised REITs.

Read more »

Group of successful real estate agents standing in building and looking at tablet.
REITs

The high-yielding ASX 200 REIT now 'trading at a hefty discount'

Atop an 11% share price gain in 2025, the ASX 200 REIT trades on a dividend yield north of 5%.

Read more »

Woman and man calculating a dividend yield.
AI Stocks

The $68 billion ASX 200 stock now trading at 'an attractive entry level'

A leading expert believes this $68 billion ASX 200 stock has been oversold.

Read more »

Mini house on a laptop.
REITs

2 ASX 300 property shares up big today

Investors seemed to like one earnings report more than the other.

Read more »