Australian Property Cap Rates Near Cyclical Peak -- Market Talk

Dow Jones

Jan 13, 2025

2248 GMT - For Australian property stocks, capitalization rates are now higher than they were before the Covid-19 pandemic. Citi thinks cap rates will soon peak, which is one reason why it's broadly bullish about the sector early in 2025. Commercial real estate is typically valued based on its cap rate, or the annual net income produced by a property divided by the purchase price. Like bond yields, rising cap rates indicate falling values, and vice versa. "As rental growth across sectors started to stabilize, coupled with stabilizing asset valuations, we believe cap rates are near their peak of this cap rate cycle," analyst Howard Penny says. He notes cap rates for neighborhood retail properties are now at pre-pandemic levels. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

January 12, 2025 17:48 ET (22:48 GMT)

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Citi thinks cap rates will soon peak, which is one reason why it's broadly bullish about the sector early in 2025. Commercial real estate is typically valued based on its cap rate, or the annual net income produced by a property divided by the purchase price. Like bond yields, rising cap rates indicate falling values, and vice versa. \"As rental growth across sectors started to stabilize, coupled with stabilizing asset valuations, we believe cap rates are near their peak of this cap rate cycle,\" analyst Howard Penny says. He notes cap rates for neighborhood retail properties are now at pre-pandemic levels. (david.winning@wsj.com; @dwinningWSJ) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 12, 2025 17:48 ET (22:48 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Australian Property Cap Rates Near Cyclical Peak -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAustralian Property Cap Rates Near Cyclical Peak -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-01-13 06:48</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     2248 GMT - For Australian property stocks, capitalization rates are now higher than they were before the Covid-19 pandemic. Citi thinks cap rates will soon peak, which is one reason why it's broadly bullish about the sector early in 2025. Commercial real estate is typically valued based on its cap rate, or the annual net income produced by a property divided by the purchase price. Like bond yields, rising cap rates indicate falling values, and vice versa. \"As rental growth across sectors started to stabilize, coupled with stabilizing asset valuations, we believe cap rates are near their peak of this cap rate cycle,\" analyst Howard Penny says. He notes cap rates for neighborhood retail properties are now at pre-pandemic levels. (david.winning@wsj.com; @dwinningWSJ) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  January 12, 2025 17:48 ET (22:48 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7144","symbol_name":"住宅房地产投资信托","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2503397704","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2503397704","pubTimestamp":1736722080,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"2248 GMT - For Australian property stocks, capitalization rates are now higher than they were before the Covid-19 pandemic. 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Citi thinks cap rates will soon peak, which is one reason why it's broadly bullish about the sector early in 2025. Commercial real estate is typically valued based on its cap rate, or the annual net income produced by a property divided by the purchase price. Like bond yields, rising cap rates indicate falling values, and vice versa. \"As rental growth across sectors started to stabilize, coupled with stabilizing asset valuations, we believe cap rates are near their peak of this cap rate cycle,\" analyst Howard Penny says. He notes cap rates for neighborhood retail properties are now at pre-pandemic levels. (david.winning@wsj.com; @dwinningWSJ) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  January 12, 2025 17:48 ET (22:48 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}