Each year companies tend to add to their interest hedging such...

Each year companies tend to add to their interest hedging such that over time the higher or lower hedges drop off and are replaced by cheaper debt. Lower rates will impact on lower interest costs over the longer term but in the short term usually only a percentage of debt is hedged so some immediate benfit is also felt (assuming the margin blow doesn't completely counter the dropping cash rate). ALZ for example has 75% of debt hedged (excluding AAZPB I believe).

Lower rates make the rental yield for commercial properties more attractive compared to other investments and borrowing costs, thus lowers capitalisation rate. Again, right now all competing investments are cheap and debt is expensive or not available full stop.

cheers