16 Dec 2022

Portfolio valuation update

16 December 2022

Portfolio valuation update

Dexus today announced that 177 of its 1831 assets, comprising 34 office properties and 143 industrial properties have been externally valued as at 31 December 2022.

The draft external independent valuations have resulted in a total estimated decrease of circa $322 million2 or 1.9% on prior book values for the six months to 31 December 2022.
Darren Steinberg, Dexus CEO said: “The value of the office portfolio decreased circa 2.3% on prior book values driven by higher capitalisation rates and discount rates, partially offset by market rental growth. The industrial portfolio decreased circa 0.5% on prior book values, with strong rental growth largely offsetting the impact of higher capitalisation rates and discount rates.

“We expect a continued trend of well-located quality assets performing better than secondary assets against an uncertain macroeconomic backdrop.”

The weighted average capitalisation rate across the total portfolio expanded by circa 16 basis points over the past six months from 4.64% at 30 June 2022 to 4.80% at 31 December 2022. The weighted average capitalisation rate of the office portfolio expanded by circa 14 basis points from 4.75% at 30 June 2022 to 4.89% at 31 December 2022 and the industrial portfolio weighted average capitalisation rate expanded by circa 17 basis points from 4.29% at 30 June 2022 to 4.46% at 31 December 2022.

Details relating to specific individual property valuations will be available in Dexus’s HY23 results which will be released to the Australian Securities Exchange on Tuesday, 14 February 2023.

  1. Including Jandakot Airport, Perth which comprises 54 assets.
  2. Includes assets held for sale at sale price and excludes expected settlement of assets prior to 31 December 2022.

Authorised by the Board of Dexus Funds Management Limited.




Rowena Causley

Head of Listed Investor Relations

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