DXS - Net Fair Value Gain on Properties

DXS must be one of the easiest equities to value. The certainty of rental incomes, and a consistent operating margin & low gearing charge, and the income 'pipe' tax free through the trust, makes this counter effectively a gilt/bond, or top rated debt, for a valuation perspective

Here's a thought.

A valuation writing back the non-flow item "Net fair gain on properties" gets an operating return that equates with DXS's current WACC or in other words it share valuation & hence share price , on the reduced 'pre-valued' cash cost of the assets. The write ups = $452.1 (2016) $130.4 (2015) $145.7 (2014)

If those are indeed fair gains, then these are valuable bonuses to shareholders.

BUT

Here's the paradox, IF those properties are indeed worth what the independent(?) valuators suggest, then how come DXS is not adding value in year-on-year returns, based on the discounted risk adjusted WACC value of the DXS cash flows? In other words, why is there NO return in excess of a WACC applied to cash cost of properties, and so adding value to & for the trust holders?

If the independent valuations are dependant on other non-DXS assets, say in a reach to what the assets "should be yielding", then why are DXS's assets underperforming? I suggest that these consistent "fair value gain" valuations must be treated with some circumspection & caution, because when you are as large a slice of the office rental space, your cash flow return on the cash value of assets IS THE the market metric.

Your thoughts?

Cheers