Australian real estate investment trust (REIT) Dexus (ASX:DXS) has "significantly" underperformed its Australian competitors in recent years and is the cheapest large REIT based on price-to-earnings multiples, according to a Sept. 30 research note by Jarden.

Jarden's new analysis suggests much of the country's office and fund management sector is reflected in downside risk and that a lack of funds from operations (FFO) and adjusted FFO means there is unlikely to be a catalyst for outperformance going forward, the note stated.

There is a 4% upside to Jarden's AU$7.85 per share target price despite lower risk-free rates, capital rate assumptions, and a more generous net present value of high-level overheads and leasing capital expenditure, according to the note.

Jarden increased its target price from AU$7 to AU$7.85 per share and kept its neutral rating.