In the past week, a number of ASX listed securities announced valuation updates for June 2018, with gains coming through from continued capitalisation rate compression.
Dexus (ASX: DXS) announced an external valuation on 99 of its 103 assets, with an estimated $408M or ~3% increase in book value for the six months to June 2018. DXS expects net tangible assets per security to increase by $0.40 per unit, implying a 4.4% increase in NTA to $9.56 per unit. The portfolio weighted capitalisation rate is expected to reduce by 14bps to 5.52%, with the office portfolio reducing 13bps to 5.37% and the industrial portfolio reducing 25bps to 6.40% during the six months.
Australian Unity Office Fund (ASX: AOF) announced a six of its nine properties were externally revalued at June 2018 with an estimated increase for the portfolio of $42.8M, or 9.4%. Net tangible assets (NTA) per unit is estimated to increase by $0.26 per unit, or 11.3% to around $2.57 per unit. The portfolio weighted capitalisation rate is expected to reduce by 30bps to 6.7% during the six- month period. AOF was the best performing security during the week, increasing 7.1%.
Propertylink Group (ASX: PLG) announced all 30 properties in its wholly owned industrial portfolio were independently revalued at June 2018 with an estimated increase of $37.1M or approximately 5.5% since December 2017. Net tangible assets per unit is expected to increase by $0.065, or 6.7%, to $1.04 per unit. The portfolio weighted capitalisation rate is expected to reduce by 20bps to 6.66% during the six-month period.