Charter Hall Retail’s asset revaluation has revealed the value of its Australian portfolio decreased by 0.5 per cent at 30 June 2012.

The company blames the $8.5 million increase on the expansion of capitalisation rates of the REIT’s two household retail assets from 8.94 per cent to 9.73 per cent and acquisition costs expensed during the period of $5.7 million.

However, the REIT’s grocery anchored centres increased in value by 0.2 per cent to $3.1 million, predominantly driven by net operating income growth during the period.

On an overall basis the REIT’s portfolio decreased in value by 0.3 per cent to $6.4 million.

Charter Hall said it reflects a marginal expansion in capitalisation rates in the Australian market offset by some United States assets being marked up to contracted disposal prices.