Valuations hit Dexus half-year result

Major property investment firm Dexus has reflected  the challenging state of the market reporting a net loss after tax of $597.2 million for the first half, compared to a profit of $23.1 million for the same period last year.

It said the movement was primarily driven by greater fair valuation losses on investment property compared to last year due to capitalisation rate softening.

It said the external independent portfolio valuations resulted in a total of $687.3 million or around a 4.7% decrease in prior book values for the six months to 31 December, last year.

“These revaluation losses primarily drove the 84 cent or 7.7% decrease in net tangible asset backing per security during the period to $10.04,” it said.

Commenting on the situation, Dexus chief financial officer, Keir Barnes said that despite lower trading profits which could vary from period to period, underlying earnings remained resilient.