Portfolio valuation update

21 June 2022

Portfolio valuation update

Dexus today announced that 177 of its 186¹ assets, comprising 34 office properties, 142 industrial properties and one healthcare property have been externally valued as at 30 June 2022.

The external independent valuations have resulted in a total estimated increase of circa $374 million² or 2.2% on prior book values for the six months to 30 June 2022.

Darren Steinberg, Dexus CEO said: “The value of Dexus’s quality portfolio has remained resilient in this latest round of valuations, noting uncertainty in the macroeconomic environment. We have continued to see growth in asset values for well-located industrial and logistics facilities supported by market rent growth.”

The value of the office portfolio increased circa 1.7% on prior book values on the back of recent leasing success. The industrial portfolio increased circa 3.8% on prior book values due to market evidence supporting an increase in market rents and continued tightening of capitalisation rates.

The weighted average capitalisation rate across the total portfolio tightened circa 12 basis points over the past six months from 4.76% at 31 December 2021 to 4.64% at 30 June 2022. The weighted average capitalisation rate of the office portfolio tightened circa ten basis points from 4.85% at 31 December 2021 to 4.75% at 30 June 2022 and the industrial portfolio weighted average capitalisation rate tightened circa 13 basis points from 4.42% at 31 December 2021 to 4.29% to 30 June 2022.

Details relating to specific individual property valuations will be available in Dexus’s 2022 annual results which will be released to the Australian Securities Exchange on Wednesday, 17 August 2022.

Authorised by the Board of Dexus Funds Management Limited.

1. Including Jandakot Airport which comprises 52 assets.
2. Includes assets held for sale at sale price.