Real estate group Dexus (ASX:DXS) has announced the majority of its assets are valued at a total of $660 million, a 5.3 per cent increase on prior book values for the six months to 31 December 2017.
As a result, the company’s net tangible assets per security are expected to increase 65 cents.
The real estate company completed an independent, external valuation of the majority of its assets, including 44 office properties and 52 industrial properties.
The weighted average cap rate across the total portfolio tightened 29 basis points over the past six months to 5.66 per cent. The office portfolio rate tightened 28 basis points to 5.5 per cent and its industrial portfolio tightened 23 basis points to 6.65 per cent.
The majority of the valuation uplift is a result of the increase in market rents and further capitalisation rate compression in Sydney and Melbourne, while Brisbane’s properties have also benefited and values in Perth have stabilised.
Shares in Dexus (ASX:DXS) are trading 1.22 per cent lower to $10.10.