Dexus management announced it has externally revalued 109 of its 114 assets, resulting in an estimated $250m valuation uplift, or a 1.6% increase to its December 2018 book value.
Deutsche Bank analysts note valuation increases were driven by both the office and industrial portfolio, and by rental growth and cap-rate compression. The analysts calculate Dexus’ NTA is expected to increase 23cps to $10.42/share.
Deutsche Bank acknowledges office and industrial landlords will continue to benefit from valuation gains, but the broker also believe this has already been priced into the share price. Hold. Price target lifts to $12.78 from $12.38.
Sector: Real Estate.
Target price is $12.87.Current Price is $13.34. Difference: ($0.47) – (brackets indicate current price is over target). If DXS meets the Deutsche Bank target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
