Dexus Finance Reports 9.0% Decline in Portfolio Valuation

Dexus Finance Pty Limited has updated its portfolio valuation, estimating a 9.0% decrease in value as of 30 June 2024. This drop, equating to roughly $1.3 billion, covers both stabilised and developmental assets over the last six months.

The office segment witnessed an 11.3% value decrease, influenced by higher capitalisation and discount rates but partially mitigated by rental growth. The industrial segment experienced a milder 1.2% decrease, with strong rental growth nearly offsetting increased rates.

Dexus Group CEO, Ross Du Vernet, cited recent sale activity as evidence of softening office market valuations but expressed optimism in the long-term value of their high-quality portfolio.

The weighted average capitalisation rate for the entire portfolio rose by 42 basis points, reaching 5.87% by 30 June 2024. Office and industrial portfolios saw increases of 48 and 27 basis points, respectively.

Finalised valuations will be disclosed in Dexus's FY24 results, to be released on 20 August 2024. Detailed distribution information for the six months ending 30 June 2024 is available on their website.