Dexus shares lift on portfolio valuation

The property group has revealed a $340m boost to its portfolio valuation after the most recent assessment.

Images of Dexus' Queen Street skyscraper in Brisbane.

Property group Dexus has reported a $341 million lift in its portfolio valuation after the regular six-monthly assessment of its 106 properties.

In a statement to the market, Dexus said external valuations had been carried out on 31 of its properties and, combined with internal valuations on the remainder, showed a 3.2 per cent increase on the book values recorded at June 30, 2016.

“As expected our properties have seen further cap rate tightening, and it’s pleasing to see that rental growth is being reflected in our valuations at properties in Sydney and Melbourne,” chief executive Darren Steinberg said.

“The Brisbane office market is showing signs of improvement, however Perth remains challenging.”

The company will deliver its half-year results on February 15, 2017 and expects its properties to reap further valuation gains in the near-term.

“With property fundamentals continuing to improve in Sydney and Melbourne we expect to see underlying valuation assumptions improving over the next 12 months and expect this to continue to support values in key markets,” Mr Steinberg said.

Dexus shares rose on the update and, by 2.15pm (AEDT), were trading up 1.7 per cent at $9.335.