Dexus (ASX:DXS) share price edges lower despite valuation lift

What did Dexus update the ASX with?

| More on:
bars showing share price dip

Image source: Getty Images

The Dexus Property Group (ASX: DXS) share price is dipping during late afternoon trade on Friday. This comes after the real estate group announced it has externally valued its property portfolio.

At the time of writing, the Dexus share price is down 1.33% to $11.17 apiece.

Dexus’ property value increases

Investors are selling off their positions in Dexus shares regardless of the company providing a positive update.

According to its release, Dexus advised that 124 of its 189 property assets have been externally valued.

For the 6 months to 31 December 2021, the report indicated that Dexus’ book value increased by around $421 million. This represents a 2.4% lift on the prior corresponding period.

The assets valued consisted of 34 office properties, 89 industrial properties and one healthcare property.

Dexus noted that its office portfolio grew slightly by 0.6% from recent leasing deals. The industrial portfolio surged 8.7% in value followed by improved market conditions, and capitalisation rate compression across its assets.

As such, the weighted average capitalisation rate across the total portfolio tightened by around 15 basis points to 4.76%. This was broken down to the office portfolio reducing by six basis points to 4.85%, and the industrial portfolio by 50 basis points to 4.42%.

Dexus CEO, Darren Steinberg commented:

As evidenced by these latest independent valuations, the value of Dexus’s quality portfolio has remained robust in a COVID-impacted environment. We have continued to see growth in asset values for well-located industrial and logistics facilities, supported by strong investment demand.

We anticipate the post-lockdown environment will continue to see global capital attracted to Australia, benefiting quality assets across the core property sectors.

About the Dexus share price

The Dexus share price has gained around 13% over the past year but is up almost 20% in 2021. The company’s shares reached a 52-week high of $11.50 yesterday, before treading lower today.

Dexus presides a market capitalisation of roughly $12.01 billion, with approximately 1.08 billion shares outstanding.

Should you invest $1,000 in Dexus right now?

Before you consider Dexus, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Dexus wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Real Estate Shares

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Real Estate Shares

Goodman share price charges higher on Q3 update and guidance upgrade

Goodman shares are storming higher on Monday morning. Here's why...

Read more »

A man sits at a desk holding a small replica house in his hand, upset at the sale of his property.
Real Estate Shares

Feel the squeeze: 3 ASX property shares with a whole lot of debt

When it comes to debt, it's the more the not-so merrier...

Read more »

two women stand at a computer smiling in a large factory with high shelves piled with goods, as though working in logistics.
Real Estate Shares

E-commerce is booming. Which ASX shares have exposure to warehouses?

Those products aren't going to store themselves...

Read more »

Rising real estate share price with a yellow arrow.
Real Estate Shares

This ASX All Ords share is bucking the sell-off to near all-time highs

One real estate player is outstripping the bunch.

Read more »

A white and black clock face is shown with three hands saying Time to Buy reflecting Wilson Asset Management's two ASX share picks in its WAM Research portfolio
Real Estate Shares

Here’s why the Brickworks (ASX:BKW) share price has loads of growth potential: expert

Brickworks shares have plenty of growth potential according to Ord Minnett.

Read more »

Houses with red declining arrow.
Earnings Results

Lendlease (ASX:LLC) share price tumbles on ‘reset year’ results

COVID-19 restrictions have hit construction projects across the world.

Read more »

A group of men in the office celebrate after winning big.
Real Estate Shares

Return to the office: Did this decision help boost ASX 200 property shares today?

Workers in NSW have been given the nod to head back to the office, with Victoria set to follow suit.

Read more »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches his Neometals shares rising on his laptop
Real Estate Shares

Merci! Here’s what’s driving the Unibail (ASX:URW) share price 7% higher today

The real estate company's shares are soaring. Here's why.

Read more »