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

What did Dexus update the ASX with?

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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.

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.

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