Office fundamentals won’t see a rebound in 2024, devaluation to continue

GENERAL NEWS

AUSTRALIAN REITs continue to be constrained by uncertain business conditions, with high interest rates, lower household spending and weakening asset values...

According to the latest analysis from Moody’s Investor Service, so far 2024 is holding on to the themes of the previous fiscal year, with the next 12-18 months forecast to...

Office fundamentals won’t see a rebound in 2024 and will instead remain weak, with asset values falling throughout the year...

For Dexus, a good-quality portfolio of assets across the office sector has left the REIT resilient, with office occupancy levels well above the market average at...

With the group also announcing an increase in effective like- for-like income for its office portfolio, supported these occupancy levels and a minor improvement in incentives...

While poor consumer sentiment and consumption amidst the cost of living crisis will impact retail, strong population growth and new supply of space will prop up those...

This should be apparent in Scentre Group’s results this over the next 12-18 months, with strong operating metrics and supportive lease structures to...

While Scentre Group posting credit positive 2023 full year results, Moody’s expects the current high-for-longer interest rate environment to impact interest coverage ratio...

Likewise, after Vicinity Centres announced credit positive results for the 1H24 period, strong portfolio with favourable lease structures, a healthy...

Centuria Industrial REIT for example posted solid credit positive results for 1H24, with very high re-leasing spreads and the group set to benefit from strong rental growth over the...

While rising interest rates did result in a modest weakening in CIP’s interest coverage, the REIT continues to maintain headroom above its covenant level...

Goodman Group also posted strong credit positive results for the six month period, largely as a result of the group’s strong rental growth, high occupancy and...

Moody’s expects Goodman’s EBITDA will continue to benefit from high demand for well-placed infill industrial and logistics assets, despite asset values declining in the first half.

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