Dexus today announced a 2.3% lift in book values across its portfolio as at 30th June with industrial asset pushing a 9.8% increase.
Dexus confirmed that 117 of its 128 assets, comprising 41 office properties, 75 industrial properties and one healthcare property have been externally valued resulting in an estimated increase of circa $362 million for the six months to 30 June 2021.
Darren Steinberg, Dexus CEO said: “The latest independent valuations reinforce the quality of our property portfolio. We have had a consistent focus on improving the portfolio quality via leasing, acquisitions, divestments and developments and that, combined with continued investment demand, contributed to the consistent growth in underlying asset values. Amongst global investors Australia continues to be a highly attractive investment destination and we expect continued strength in investment demand for quality assets in the year ahead.”
The value of the office portfolio increased marginally on the back of a number of recent leasing deals, improving conditions in the leasing market and cap rate compression on some longer WALE assets. The industrial portfolio increased circa 9.8% on prior book values, with cap rates and discount rates firming, occupancy rates remaining high, and several development projects being completed.
The valuation result to 30 June 2021 followed the portfolio valuation uplift of $160.8 million recorded in the six months to 31 December 2020.
The weighted average capitalisation rate across the total portfolio tightened circa 10 basis points over the past six months from 5.01% at 31 December 2020 to 4.91% at 30 June 2021. The weighted average capitalisation rate of the office portfolio tightened circa four basis points from 4.95% at 31 December 2020 to 4.91% at 30 June 2021 and the industrial portfolio weighted average capitalisation rate tightened circa 44 basis points from 5.36% at 31 December 2020 to 4.92% at 30 June 2021.
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