I think it is important to be very clear on the Dexus transaction that it was:
- 93.7% occupied (very low)
- 2.1 year WALE (very short)
- requires $61m of capital investment to completely refurbish in order to attract new tenants
If you factor the additional $61m into the purchase price the cap rate falls to more like 5.5% which is in line with current valuation levels for TOT, DXS, CHC etc as set out in my earlier note.
I am not trying to discredit that the office market is very hard at the moment, but I feel like it is a really good counter-cyclical buying opportunity nonetheless, particularly given how simple the TOT portfolio is
Ann: Independent Valuations and Leasing Update, page-58
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Last
40.5¢ |
Change
-0.005(1.22%) |
Mkt cap ! $86.91M | |||
| Open | High | Low | Value | Volume |
| 41.5¢ | 41.5¢ | 40.5¢ | $28.10K | 68.71K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 50100 | 40.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 41.5¢ | 38044 | 3 |
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| Last trade - 15.42pm 13/09/2024 (20 minute delay) ? |
| TOT (ASX) Chart |