This article is from the Australian Property Journal archive
ABACUS Group has lost 7.5% of the value of a small handful of office assets as downwards revaluations continue to wash through the sector.
The ASX-listed company said capitalisation rate expansion drove the $136 million, or 6.7%, decrease in book value in the six months to the end of June across five of its investment properties.
Its $1.4 billion of offices saw a 51 basis-point increase in weighted average capitalisation rate to 6.48%.
Office values have been in decline in the wake of the pandemic, in the face of working from home and higher interest rates. Transactions are starting to come through following a market freeze, showing sizable discounts to book value.
A softer 4.6% decline was seen across the other Abacus assets revalued, a portfolio segment that totals $500 million. That amounted to a 43 basis-point uplift in cap rate across its portfolio to 6.50%.
