Charter Hall Retail’s asset revaluation results have shown a slight fall in portfolio value as at 31 December 2012.
Overall valuations resulted in the REIT’s portfolio reducing in value by 1.2 per cent or $25.1 million over the prior book value. This was primarily affected by the reduction in value of the company’s European properties by over $17.9 million. More specifically its German and Polish properties have been impacted by the broader Eurozone economy, which continues to affect confidence in the region.
Despite this, the value of the Australian portfolio, representing 92 per cent of the REIT’s net tangible assets, increased by $0.4 million, offset by $6.8 million of acquisition costs incurred during the period. Underlying income growth from the portfolio offset the expansion of capitalisation rates from 8.17 per cent to 8.22 per cent.
“Over the past six months we have continued to see positive rental rate growth across the Australian portfolio, which combined with this portfolio’s sustained high occupancy, has delivered stable income growth from these assets,” Scott Dundas, Charter Hall Retail REIT’s fund manager, said.