- Dexus (DXS) enjoys a 2.3 per cent increase in the value of its property portfolio, climbing roughly $362 million
- The value of the office portfolio increases marginally while the industrial portfolio grows around 9.8 per cent
- Dexus is in process of acquiring APN Property Group (APD) for $320 million with ASIC recently registering the scheme booklet
- Shares in Dexus have fallen 1.28 per cent, sitting at $10.83 at 1:54 pm AEST
The value of Dexus’ (DXS) portfolio has risen roughly $362 million, following a $160.8 million increase in the six months to December 2020.
One healthcare property, 41 office properties and 75 industrial properties were valued independently, with the values increasing 2.3 per cent on prior book values for the six months to June 30.
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 weighted average lease expiry assets, according to Dexus.
The industrial portfolio increased circa 9.8 per cent on prior book values, with the company reporting cap rates and discount rates firming, occupancy rates remaining high, and several development projects being completed.
“The latest independent valuations reinforce the quality of our property portfolio,” Dexus CEO Darren Steinberg said.
“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.”
Over the last six months, the weighted average capitalisation rate across the whole portfolio has tightened by almost 10 basis points, from 5.01 per cent at the end of December 2020 to 4.91 per cent at the end of June 2021.
The office portfolio’s weighted average capitalisation rate decreased by four basis points to 4.91 per cent, while the industrial portfolio’s weighted average capitalisation rate decreased by 44 basis points to 4.92 per cent.
The company also announced an estimated distribution for the six months ending June 30 of 23 cents per stapled security. Combined with the 28.8 cents per stapled security for the six months ending December 31 2020, the distribution is expected to result in a total distribution of 51.8 cents for the financial year.
Dexus is currently in process of acquiring APN Property Group (APD) for $320 million with ASIC recently registering the scheme booklet, in which the independent report from KPMG recommended the purchase.
Shares in Dexus have fallen 1.19 per cent, sitting at $10.84 at 3:20 pm AEST.