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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on Real Estate Shares

Woman with a moving box on her head.

1 ASX small-cap stock that could benefit from the rental crisis

Noticed the rental market shortage? This may be an opportunity for this ASX small-cap share.

Read more »

An industrial warehouse manager sits at a desk in a warehouse looking at his computer while the Centuria Industrial share price rises
Real Estate Shares

Guess which ASX 200 co-founder just sold $33 million worth of company shares

A major sale has just occurred at one of the ASX’s market darlings.

Read more »

A man and a woman stand on an external balcony in a dense city environment filled with high rise buildings and commercial properties. The man is pointing up at a high rise building and the woman is looking on.
Real Estate Shares

Up 73% in a year, this surging ASX 200 stock just hit another all-time high

This property share has skyrocketed, with the company recently upgrading its FY24 guidance for a second time.

Read more »

falling infrastructure asx share price represented by disheartened looking builder on work site
Real Estate Shares

Top broker says this beaten-up ASX 200 stock could have further to fall

This stock could see more suffering amid major tax pain.

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Earnings Results

Why is this ASX 200 stock avoiding the market selloff and pushing higher?

Not all shares are falling with the market on Thursday.

Read more »

5 mini houses on a pile of coins.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX real estate shares were strongest among the 11 market sectors last week.

Read more »

Mini house on a laptop.
Real Estate Shares

ASX 200 stock soars 10% on big UK news

It’s great news about a major UK bank.

Read more »

a young couple sit on their sofa at home looking distraught and downcast while sitting at an open laptop computer. The man has his head in his hand while tthe woman holds her hand to her face.
Real Estate Shares

This heavily shorted ASX 200 real estate stock is diving 13%: Should you buy the dip?

This stock is being sold off on Tuesday. But why?

Read more »