Vicinity Centres (ASX: VCX) announced revaluations on 38 of its 62 directly owned retail properties as at 31 December 2018. The overall portfolio is expected to decline by $37M or 0.2% in value to $15.836 billion.
The reduction in value was largely due to a reduction in value at its Regional, Sub Regional and Neighbourhood centres, with capitalisation rates increasing 4-15bps on average across these centres. Key assets including Chadstone Shopping Centre, premium CBD assets and DFO (Outlet) centres increased in valuation.
The reduction in value at the Regional, Sub Regional and Neighbourhood centres is expected to come under the spotlight during reporting season and it will be interesting to note how valuations move at other retail centres.