Listed A-REITs

Editorials

Listed Property Editorial, December 2011 - New year old worries 19/01/2012 17:11
As at the end of December 2011, the S&P/ASX 300 A-REIT index finished at 767 points, down 4.1% over the month and down 7.5% for the year. The broader S&P/ASX 300 index... + more As at the end of December 2011, the S&P/ASX 300 A-REIT index finished at 767 points, down 4.1% over the month and down 7.5% for the year. The broader S&P/ASX 300 index finished at 4052 points, down 1.6% for the month and down 14.9% for the year. Breaking this down a bit more finely, we can say calendar 2011 was a year of two halves. - less

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Equities Research

Abacus Property Group (ABP) Storing up earnings 30/01/2012 09:16
Following ABP announcing details of its planned merger with Abacus Storage Fund (ASF), we review our forecasts. Given ABP’s plans to “free up” capital invested in funds management, we have shifted to valuing ABP using a sum... + more Following ABP announcing details of its planned merger with Abacus Storage Fund (ASF), we review our forecasts. Given ABP’s plans to “free up” capital invested in funds management, we have shifted to valuing ABP using a sum-of-the-parts/NAV method at $1.82 (excluding ASF). A full-year contribution from ASF could boost EPS by ~4%, at the cost of higher leverage and mild dilution to NTA/NAV-based valuations. We retain our Neutral recommendation. - less

Charter Hall Retail (CQR) Marching to the tune of fair value 18/01/2012 16:53
CQR’s share price has rallied ~10% since we upgraded it to Add/Buy during last August’s market turmoil. However, the uncertain macro outlook suggests a more cautious approach may be in order. CQR is relatively highly g... + more CQR’s share price has rallied ~10% since we upgraded it to Add/Buy during last August’s market turmoil. However, the uncertain macro outlook suggests a more cautious approach may be in order. CQR is relatively highly geared compared to the rest of our universe, and while it benefits from a heavy weighting towards supermarket anchor tenants, any downturn would still heighten the risks for its specialty portfolio. Downgrade to Neutral. - less

Charter Hall Office (CQO) Sell on-market 07/12/2011 10:10
CQO’s independent directors have agreed with the takeover consortium on a price of $2.49/unit for CQO’s Australian assets. Following this, the CQO share price has risen to a... + more CQO’s independent directors have agreed with the takeover consortium on a price of $2.49/unit for CQO’s Australian assets. Following this, the CQO share price has risen to almost (offer price + US sale proceeds). As such, further upside is negligible in the absence of a superior offer and we recommend CQO investors SELL their holdings on-market. - less

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