Stride Property Limited (SPL) expects a decrease in the fair value of its directly held office and town centre portfolio for the six months ended September 30, 2023.
The gross reduction is projected to be $50.7 million, representing a 4.7% decrease.
The draft valuation of the portfolio is $1.0 billion.
The average capitalisation rate for the portfolio is expected to be 6.3%, reflecting a 34 basis point increase from March 31, 2023.
The industrial assets of the Industre Property Joint Venture (Industre) showed a decline in value of less than 1%.
Following the revaluation, SPL's committed bank loan-to-value ratio (LVR) is expected to be approximately 36%, and 27% on a balance sheet basis.
The final valuations and LVR will be confirmed in the consolidated interim financial statements of Stride Property Group, which will be released on November 28, 2023.
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