Bega Cheese was "dressed" to win yesterday, a burst of enthusiasm for Mineral Resources ran out of puff, while Securities in Dexus went into a trading halt on reports it was looking to raise around $1 billion.
Dexus has reported revaluation gains of $405m, or a 3.1% increase to its June 2018 book value. Deutsche Bank believes office cap rates will continue to compress over the next 12 months and retail cap rates should start softening.
Dexus, which currently owns three office assets in Perth, believes the office market there has bottomed and is forecasting 2-4% effective rental growth. Assumptions are supported by limited office supply until 2023 and a recovery in mining employment.