This article is from the Australian Property Journal archive
THE Dexus Industria REIT and Dexus Convenience Retail REIT have recorded valuation gains in the half year ending December.
With the more significant increase over the six months to 31 December 2024, Dexus Industria REIT (DXI) recorded an estimated net valuation uplift of $33.3 million or 2.4% increase on book values, with all assets externally valued.
Across its total portfolio DXI’s weighted average cap rates expanded nine basis points over the six-month period, from 5.98% to 6.07%.
“The pace of capitalisation rate expansion has slowed, with industrial assets remaining highly sought after by a range of direct property market investors,” said Gordon Korkie, fund manager at DXI.
“DXI’s high-quality portfolio and strong leasing outcomes continue to generate solid rental growth which has supported valuations.”
Meanwhile, Dexus Convenience Retail REIT (DXC) saw more marginal increases after 38 of its 91 assets were externally valued, with the remainder subject to internal valuations.
The valuations resulted in an estimated net valuation uplift of circa $5.4 million for the six-month period, reflecting a 0.8% increase on book values.
On a like-for-like basis, DXC’s WACR across the total portfolio was up six basis points to 6.41%.
“The defensive nature of DXC’s portfolio has supported valuation outcomes, with embedded rental growth offsetting moderate capitalisation rate expansion,” said Jason Weate, fund manager at DXC.
“Valuation growth reflects 2024 fuel and convenience transaction volume recovery broadly in line with historical averages, providing strong asset price discovery which supports our NTA.”
Final valuation results for DXC and DXI will be released on 10 February 2025 and 12 February 2025 respectively.