Dexus flags $24m valuation dip in June half

The news: Dexus has flagged an estimated $24 million reduction across its 175 assets portfolio, comprising 27 office properties and 148 industrial properties for the six months to 30 June.

The context: The decrease marks a 0.2% drop on book values across the stabilised portfolio and development assets.

The office portfolio value decreased by 0.4%, driven by marginally higher capitalisation and discount rates, which were partially offset by market rental growth. In contrast, the industrial portfolio value increased by 0.5% on the back of strong market rental growth and a slightly firmer discount rate, which helped drive a marginally softer capitalisation rate.

What they said: “The valuations reflect a stabilising market that is being driven by fundamentals. Capitalisation rates were slightly softer in both office and industrial portfolios, with rental growth and capex assumptions generally driving valuation outcomes across the stabilised portfolios,” Dexus CEO Ross Du Vernet said.