Dexus wipes $762.4m from books after properties revaluation

The news: Property investor Dexus has counted a $762.4 million downswing after a revaluation of its office and industrial properties.

The numbers: Dexus announced a decrease on prior book values of 5.2% after 173 of its 176 properties, comprising 33 office properties and 140 industrial properties, were externally valued as at 31 December 2023. Decus shares were trading about 3% lower just before 3pm AEDT at $7.70.

The context: Rental growth in both office and industrial properties largely offset the effects of higher capitalisation rates and higher discount rates, Dexus chief executive Darren Steinberg said in a statement. The property fund manager has faced a tough market in 2023, with higher interest rates magnifying debt and dragging on valuations due to weaker demand. Current chief financial officer Ross Du Vernet will replace Steinberg in March 2024.