Portfolio valuation update

15 December 2023

Portfolio valuation update 

Dexus today announced that 173 of its 176¹ assets, comprising 33 office properties and 140 industrial properties have been externally valued as at 31 December 2023.

The draft external independent valuations have resulted in a total estimated decrease of circa $762.4 million² or 5.2% on prior book values for the six months to 31 December 2023.

Darren Steinberg, Dexus CEO said: “The value of the office portfolio decreased circa 6.0% on prior book values driven by higher capitalisation rates and discount rates, partially offset by market rental growth. The industrial portfolio decreased circa 2.1% on prior book values, with strong rental growth again largely offsetting the impact of higher capitalisation rates and discount rates.

“We expect well-located quality assets to continue to outperform non-core locations and secondary assets.”

The weighted average capitalisation rate across the total portfolio expanded by circa 34 basis points over the past six months from 5.11% at 30 June 2023 to 5.45% at 31 December 2023. The weighted average capitalisation rate of the office portfolio expanded by circa 32 basis points from 5.21% at 30 June 2023 to 5.53% at 31 December 2023 and the industrial portfolio weighted average capitalisation rate expanded by circa 42 basis points from 4.76% at 30 June 2023 to 5.18% at 31 December 2023.

Details relating to individual property valuations will be available in Dexus’s HY24 results which will be released to the Australian Securities Exchange on Wednesday, 14 February 2024.

1. Including Jandakot Airport, Perth which comprises 55 assets.
2. Includes assets held for sale at sale price.