Centro Properties Group has reported significant property valuation declines over its US and Australian managed property portfolios as at December 31, 2008.
The results, derived from both independent and directors’ valuations for all of Centro’s managed properties, showed a total valuation decline from June to December 2008 of $1.9 billion, which includes Centro’s “look through share (on a property ownership basis)” of $0.98 billion.
More specifically, the Australian portfolio’s value dropped from $9.14 billion to $8.22 billion, a fall of 10.1 per cent, over the June to December 2008 period. The US portfolio, which fell from US$12.73 billion to US$12.06 billion, dropped 5.3 per cent over the same period. Centro noted that the prior values were adjusted for capital expenditure incurred during this period.
Over the 18 months ending December 31, 2008, Centro’s portfolios have seen valuation writedowns of 13.6 per cent for the US portfolio and 12 per cent for the Australian portfolio (with capital expenditure adjustment).
The property valuations were based on a comparable analysis of 123 Australian properties and 632 US properties. The total valuation decline is based on a figure adjusted for capital expenditure and excludes any exchange rate impact.
Thirty-eight per cent of Centro’s Australian properties were independently valued at December 31, 2008, while of the US properties, 24 per cent were independently valued.
