Australian Unity Office Fund (AOF:ASX)

AOF is a perfect symbol for the malaise facing the high-rise office property market, with the fund historically sitting on a diversified portfolio across most of the eastern seaboard. As occupancy in the sector started falling post-COVID, in an environment of rapidly rising interest rates, listed real estate investment trusts (REITs) have seen their share prices lag their published net tangible asset (NTAs). The logic behind this dynamic is simple – internal valuations have not reflected the new outlook for office property, and there is an expectation that these assets would be worth less if put on the market.

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