Portfolio valuation update for Dexus (ASX: $DXS)

Dexus (ASX: $DXS) has announced the external valuation results for 170 of its 176 assets, consisting of 30 office properties and 140 industrial properties as at 30 June 2024. The draft external independent valuations have indicated a total estimated decrease of approximately $1.3 billion or 9.0% on book values across the stabilised portfolio and development assets for the six months to 30 June 2024.

Executive Commentary on Portfolio Valuation

Ross Du Vernet, Dexus Group CEO and Managing Director, expressed confidence in the value of the high-quality portfolio despite the softening in office market valuations. He highlighted the continued occupier demand for well-located, high-quality buildings within their portfolio. The weighted average capitalisation rate across the total stabilised portfolio expanded by approximately 42 basis points over the past six months, reflecting the market conditions.

Summary of Portfolio Valuation Update

Dexus (ASX: $DXS) has reported a decrease in the total estimated valuation of its portfolio by approximately $1.3 billion or 9.0% on book values for the six months to 30 June 2024. The office portfolio experienced a significant decrease of circa 11.3%, while the industrial portfolio saw a decrease of approximately 1.2%. Despite the challenges in the office market valuations, Dexus remains confident in the long-term value of its high-quality portfolio. The company plans to release the finalised valuations and specific individual property details in its FY24 results on 20 August 2024.