Dexus Industria REIT (“DXI”) announces that 39 of its assets have been externally valued as at 31 December 2021, with the remainder subject to internal valuations.
The outcome of the valuations is an estimated increase above prior book values of $92 million to approximately $1.76 billion. The increase is approximately 8.4% on a like for like basis compared to 30 June 20211. In isolation, the valuation uplift is expected to increase Net Tangible Assets (NTA) by circa 29 cents per security.
A combination of favourable market rents and lower capitalisation rates have driven the valuation gains, with the weighted average capitalisation rate across the total portfolio tightening 46 basis points over the six month period to 31 December 2021, from 5.78% at 30 June 2021 to 5.32%.
Alex Abell, DXI Fund Manager, said: “The valuation outcomes reflect our disciplined approach to acquiring assets that provide the opportunity to add value through asset management and leasing outcomes, which have positioned the portfolio to benefit from the strong conditions being experienced across the industrial and logistics market.”
All 39 assets that were held in DXI’s portfolio for the full six-month period to 31 December 2021 have been externally valued. Assets acquired during the six months to 31 December 2021, including interests in the 51 assets that comprise the Jandakot airport portfolio, were not included in this latest round of external valuations.
Further details on the portfolio’s final valuations for the period will be included in DXI’s 2022 half year results which will be released on Wednesday, 9 February 2022.