The small valuation drop in Dexus's property portfolio is seen at Citi as more evidence that the real-estate market is stabilizing rather than deteriorating. Citi's analysts say that the modest 0.2% decline in book values across Dexus's stabilized portfolio represents a broadly resilient outcome. They tell clients in a note that they remain constructive on the medium-term outlook for prime office space. They say the stock is still trading at a meaningful discount to the value of Dexus's net tangible assets, but lacking short-term catalysts for any rerating. Citi has a neutral rating on the stock and a target price of 6.50 Australian dollars. Shares are up 1.2% at A$5.525. (stuart.condie@wsj.com)