Goodman Property Trust (GMT) is expected to report a $230 million or 4.7% decrease in the fair value of its property assets in its FY24 interim result.
Independent valuers have estimated that the portfolio will be valued at around $4.7 billion on September 30, 2023.
The increase in weighted average capitalization rate from 5.2% to a projected 5.6% reflects the softening of real estate investment yields in the past six months.
However, GMT's CEO, James Spence, believes that despite the impact of higher interest rates and macroeconomic conditions on investor sentiment, the industrial property market fundamentals remain strong.
GMT's portfolio is 99% leased with low vacancy and limited new supply, contributing to robust rental growth.
The valuer assessed market rents for GMT have increased by 3.3% since March 31, 2023, partly offsetting the impact of higher capitalization rates on valuations.
The forecast valuation movement is expected to reduce net tangible assets by approximately 16 cents per unit.
More information will be provided with the FY24 interim result on November 9, 2023.See more