Dexus’s property portfolio experienced solid capital growth with revaluation gains exceeding expectations for the year to 30 June 2016.
A total of $814.4 million or an 8.0% increase on 30 June 2015 book values was achieved, with premium office properties experiencing major movements.
In the office portfolio the valuation uplift can be attributed to an increase in occupancy and Weighted Average Lease Expiry (WALE) resulting from the securing of 385 leasing transactions during the year as well as a tightening in capitalisation rates, reflecting comparable market transactions and an improvement in market conditions.
- Capitalisation rates tightened 55 basis points across the portfolio from 6.85% at 30 June 2015 to 6.33% at 30 June 2016
- The 9.1% valuation uplift in the Office portfolio contributed $769.1 million to the increase in Net Tangible Assets