was based on a mix of third-party appraisals for 21 assets and internal valuations for the rest, and it pushed pro forma net tangible assets up AU$0.03 per security. On leverage, pro forma gearing was 34%, in the company’s 30%-40% target range, which matters because healthier property values can make lenders more comfortable when REITs refinance debt.
Why should I care?
For markets: A 5.9% cap rate can move a REIT’s math more than rents do.
Property valuations often swing on cap rates because the basic equation is income divided by cap rate. So when Region’s cap rate tightened by just 1 basis point, it helped lift portfolio values and, in turn, net tangible assets. That higher asset base also improves leverage optics: if borrowing stays the same, the loan-to-value ratio falls mechanically, giving more headroom against lender covenants. For investors, that makes net tangible assets a firmer reference point for how the REIT is priced versus its underlying property value, and it can reduce balance-sheet stress around refinancing or raising fresh capital.