Macquarie's US properties suffer value drop
Macquarie DDR Trust has undertaken a revaluation on its US property portfolio, reporting an 8.9 per cent decrease in asset values at the end of 2008 from its June 30 book value.
The valuation of the portfolio’s 81 properties, of which 42 were independently valued, represented a US$234.4 million decrease in asset values. However, trust manager Macquarie DDR Management (MDM) said the drop “will not impact the trust’s core earnings” for the second half of last year but “will be accounted for in the trust’s reported profit for the period”.
The trust said it is meeting its debt obligations according to the “current unaudited” balance as at the end of December 2008 and will release half-year accounts to the market later this month.
MDM has announced its selection of a number of advisers for its strategic review, the aim of which is to “maximise unit holder value”, partly in an effort to gain in-depth knowledge of US real estate markets.
MDM said it will maintain its focus on strengthening the trust through the refinancing of debt maturities and the sale of properties.
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