2336 GMT - Australian office Reits aren't likely to be a hot property among investors any time soon, signals Morgan Stanley. There are some tailwinds for the sector, MS says. Vacancy levels have stabilized in Sydney's central business district, asset owners have ramped up acquisitions, and new office supply is at a decade-low. "However, we do not believe office REITs are due for a re-rate over the next 6-12 months," analyst Simon Chan says. One reason is lease expiries are set to increase over the coming two to three years. For Dexus, these expiries rise to some 14% of its office portfolio in FY 2027. That indicates incentives and maintenance capex could escalate more even if operating conditions improve. Meanwhile, some 18% of Centuria Office REIT's portfolio expires in FY 2028. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 12, 2026 18:36 ET (23:36 GMT)

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