2303 GMT - Centuria Office REIT's 1H result suggests to Bell Potter that asset valuations are nearing a trough. It highlights that valuations of 37% of Centuria Office REIT's portfolio increased or stabilized in 1H. "This, along with improving office transaction volumes in 1H, suggest book values are close to 'the bottom'," says analyst Connor Eldridge. Bell Potter now estimates an expansion of 40 basis points in Centuria Office REIT's 1H weighted average capitalization rate over the next 12 months. Evidence that asset values are finding a floor "will alleviate balance-sheet pressure," Bell Potter says. It notes that Centuria Office REIT had gearing of 42.9% at the end of June, above its 25%-35% target range. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

February 05, 2025 18:03 ET (23:03 GMT)

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