Dexus funds outline $40m in writedowns
Make us a preferred source
Make us a preferred source on Google
The news: Property investor Dexus’ Industria REIT and Convenience Retail REIT have outlined writedowns following a revaluation of assets.
The numbers: The Dexus Industria REIT, which primarily invests in industrial warehouses, said it would write down $30.7 million, or 2.2% of book value, for the six months to 30 June 2024, following an external valuation of its 89 portfolio assets. Its shares slipped 0.7% to $3.03 on the news.
The Dexus Convenience Retail REIT, which owns service stations and convenience retail assets, said it would write down $9.6 million, or 1.3% of book value, for the six months to 30 June, following an external valuation of half its 101 portfolio assets. Its shares were up 0.6% to $2.65.
The context: Dexus Industria REIT fund manager Gordon Korkie said solid rental growth, constrained supply and low vacancy had partly offset the impact of capital rate expansion, while the convenience retail REIT fund manager Jason Weate said strong transaction volumes and rental growth had continued to deliver a resilient income stream.
Most real estate managers have faced a challenging period amid a rapid increase in interest rates that has lifted their cost of debt, affecting their rate of returns and prompting a cut in portfolio valuations.
The sources: ASX announcement, ASX announcement
