Argosy Property has announced that it expects to record a revaluation loss of $49.5 million for the 6 months ending September 2023.
This represents a 2.3% decrease in book values.
The decrease in value is primarily due to a softening of overall cap rates, which averaged 6.03%.
The Industrial sector decreased by $14.6 million (1.3%), the Office sector declined by $25.3 million (3.1%), and the Large Format Retail sector declined by $9.6 million (4.7%).
The portfolio is currently 12.8% under-rented, excluding market rent on developments.
Despite the revaluation loss, Argosy's adjusted NTA would be approximately $1.52 per share, and gearing remains at around 36%.
The market has shown a preference for green buildings, which has partially offset the impact of softer cap rates.
The valuations were completed on all properties as of September 30th.
CEO Peter Mence highlighted the benefits of Argosy's focus on green property assets in tenant demand and relative value.
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