Dexus portfolio value drops $1b
Dexus has revalued 175 of its 182 properties as part of its end of financial year reporting.
The fall – effective for the six months to June 30 – is six per cent or a billion dollars.
The weighted average capitalisation rate rose 0.32pc over the past six months to 5.12pc.
“The value of the office portfolio decreased circa 7.7 per cent of prior book values driven by higher capitalisation rates and discount rates, particularly offset by market rental growth,” the group’s chief executive officer, Darren Steinberg, said.
Thirty two of the properties were appraised were these type of investments.
A 5.21pc capitalisation rate was assumed.
For the industrial portfolio – with 143 assets- this was 4.77pc.
“The industrial portfolio decreased by 0.2pc on prior book values, with strong rental growth largely offsetting the impact of higher capitalisation rates and discount rates,” Mr Steinberg said.
Dexus reweighs funds
Following the 175 valuations, Dexus’ portfolio is estimated to be worth c$16.8b (story continues below).
Additionally, its development pipeline is approaching $16b while another c$26b worth is held in funds – several which have been reweighed recently.
This month alone, the manager sold c$400m of assets including neighbouring Knoxfield warehouses and a Mount Waverley business park, in Melbourne, and a Gold Coast factory.
Last month it divested two Sydney CBD properties – banking c$693m, a circa 15-17pc drop on the previous book values.
Hong Kong based Pacific Alliance Group bought one – 44 Market St – while Melbourne’s Quintessential Equity snapped up the other, 1 Margaret St.
In the last quarter of last year, meanwhile, Dexus divested another round of assets including an East Melbourne office, to Shakespeare Property, for $213.7m and Adelaide’s Homemaker Prospect, for $78.9m, to AsheMorgan (which coincidentally acquired a half stake in a two tower office at 309-321 Kent St, in Sydney, in 2021).
Also late last year, Dexus sold a couple of suburban Brisbane car yards – banking $98m – and two Rhodes (western Sydney) offices, to Frasers Property Australia, for c$155m.
The group has also, for trusts, recently purchased a c$100m Ravenhall, Melbourne, industrial development site and a stake in the entity, Celsus Holdings, which runs the Royal Adelaide Hospital.
It is also proceeding with building three Sydney offices including Atlassian’s headquarters.
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