ASX-listed Dexus posted a 1.9% decline across 177 of its 183 office and industrial assets during the second half of 2022, down by an estimated $322 million.
The company said the draft external independent valuations comprised 34 office properties and 143 industrial properties for the six month period to 31 December 2022.
“The value of the office portfolio decreased circa 2.3% on prior book values driven by higher capitalisation rates and discount rates, partially offset by market rental growth,” Dexus CEO Darren Steinberg said.
“The industrial portfolio decreased circa 0.5% on prior book values, with strong rental growth largely offsetting the impact of higher capitalisation rates and discount rates.
“We expect a continued trend of well-located quality assets performing better than secondary assets against an uncertain macroeconomic backdrop.”
The company said the weighted average capitalisation rate across the total portfolio expanded by about 16 basis points over the past six months to 4.80% at 31 December 2022.
The weighted average capitalisation rate of the office portfolio expanded by circa 14 basis points to 4.89% at end-December 2022, while the industrial portfolio weighted average capitalisation rate expanded by circa 17 basis points to 4.46% during the same period.
The revaluation included the Jandakot Airport in Perth, which comprised 54 assets, as well as assets held for sale at sale price and excluded expected settlement of assets prior to 31 December 2022.
Dexus said specific property valuations would be released in February.