Abacus Group preliminary portfolio valuation update

Abacus Group (ASX: $ABG) has announced a preliminary portfolio valuation update, revealing that 37% of the Group's portfolio by number, consisting of 7 investment properties, have been externally valued as at 31 December 2023. The preliminary draft valuations, including both internal and external valuations, have resulted in a total estimated decrease of $140 million, representing a 6.5% decrease on prior book values for the six months to 31 December 2023. The weighted average capitalisation rate across the Group's investment property portfolio has increased 37 basis points to 6.1% since 30 June 2023. The final valuations will be available as part of the Group's HY24 results, to be released on Tuesday, 27 February 2024.

Executive Commentary

The preliminary portfolio valuation update reflects the current market conditions and the impact on our investment property portfolio. While the decrease in valuation is notable, it is important to note that these are preliminary draft valuations and subject to finalization. We are committed to providing transparent and accurate information to our stakeholders and look forward to releasing the final valuations as part of our HY24 results in February 2024.

Summary

Abacus Group (ASX: $ABG) has announced a preliminary portfolio valuation update, indicating a total estimated decrease of $140 million, representing a 6.5% decrease on prior book values for the six months to 31 December 2023. The weighted average capitalisation rate across the Group's investment property portfolio has increased 37 basis points to 6.1% since 30 June 2023. The final valuations will be available as part of the Group's HY24 results, to be released on Tuesday, 27 February 2024. The company's proactive approach to external valuations and commitment to transparency is evident in its adherence to the valuation policy. The market conditions have influenced the current valuations, and the company remains focused on providing accurate and finalized information to its stakeholders. The release of the HY24 results in February 2024 will provide further insights into the impact of these valuations and the company's outlook moving forward.