My understanding is that a loss against valuation from the sale of the NSW commercial offices carries through to the bottom line. It's not a loss against regular income. Independent valuations don't always match what a property can be sold for and this is borne out by the sale price being well under the 'valuation', that's why you always need to be cautious about net asset backing of property trust shares. Of course it can go the other way too and I would suggest that now DXI is almost exclusively an industrial trust (business parks excepted) then the current asset backing of around $3.50 is probably around the mark. I do understand the strategy and I see it often but I don't see a lot of evidence in this case as the results were in line with expectations and fair value sits around the $3.10 to $3.20 mark which is borne out in a recent broker report on the stock.
DXI Price at posting:
$3.04 Sentiment: Hold Disclosure: Held
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