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  • DXI valuation sees circa $11M uplift
  • DXI valuation uplift excluding stamp duty is circa $26M
  • DXC valuations see circa $14M uplift

Earlier this week Dexus (ASX: DXS) announced an estimated total valuations increase of $374 million, with 177 of its 186 assets, comprising 34 office properties, 142 industrial properties and one healthcare property have been externally valued as at 30 June 2022.

The external independent valuations have resulted in a total estimated increase of circa $374 million or 2.2% on prior book values for the six months to 30 June 2022.

Darren Steinberg, Dexus CEO said: “The value of Dexus’s quality portfolio has remained resilient in this latest round of valuations, noting uncertainty in the macroeconomic environment. We have continued to see growth in asset values for well-located industrial and logistics facilities supported by market rent growth.”

The value of the office portfolio increased circa 1.7% on prior book values on the back of recent leasing success. The industrial portfolio increased circa 3.8% on prior book values due to market evidence supporting an increase in market rents and continued tightening of capitalisation rates.

The weighted average capitalisation rate across the total portfolio tightened circa 12 basis points over the past six months from 4.76% at 31 December 2021 to 4.64% at 30 June 2022. The weighted average capitalisation rate of the office portfolio tightened circa ten basis points from 4.85% at 31 December 2021 to 4.75% at 30 June 2022 and the industrial portfolio weighted average capitalisation rate tightened circa 13 basis points from 4.42% at 31 December 2021 to 4.29% to 30 June 2022.

Dexus Industria REIT (ASX: DXI)

DCI announced today that all 93 of its assets have been externally valued, seeing an uplift of circa $11 million for the six moths to 30 June 2022, or 0.6% increase on prior book values. The valuation uplift excluding stamp duty costs is circa $26 million, representing a 1.5% increase.

The weighted average capitalisation rate across the total portfolio tightened five basis points over the six months from 5.09% at 31 December 2021 to 5.04% at 30 June 2022.

Alex Abell, DXI Fund Manager, said: “The valuation outcomes reflect the high-quality assets across the portfolio, which have continued to deliver solid performance, noting uncertainty in the macroeconomic environment.”

Dexus Convenience Retail REIT (ASX: DXC)

DXC announced today 38 of its 112 assets were externally valued in the six months to 30 June 2022, with the remaining assets subject to internal valuations.

The company noted a total of 81 DXC assets have been subject to an external valuation in the last 12 months.

The external and internal valuations have seen the portfolio value move up circa $14 million (net revaluation), representing a 1.7% increase on prior book values for the six months to 30 June 2022.

DXC said the WACR across the total portfolio tightened eight basis points over the six months from 5.82% at 31 December 2021 to 5.74% at 30 June 2022.

Jason Weate, DXC Fund Manager, said: “The valuation outcomes reflect the high-quality nature of the portfolio, with investment demand for service station and convenience retail assets remaining stable due to their defensive characteristics of long leases and strong lease covenants with exposure to non-discretionary spending, noting uncertainty in the macroeconomic environment.”

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