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Image: Canva.
  • The ASX closed today at 7,015.60 points
  • The market is up 69 points or 1% for the week
  • Reporting season continued

A quiet start to the week was punctuated by hump day when two acquisitions were made by Charter Hall Retail REIT and Growthpoint Properties.

The broader market

The ASX200 closed today at 7,015.60 points, up 40.70 points or 0.58%. The market was also up 69 points for the week.

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Image: Google.

Top-performing ASX listed real estate company shares: 5 August 2022

Company Code Price ($) Change (%)
Elders ELD 12.01 +4.25
Finbar FRI 0.735 +2.80
Rent.com.au RNT 0.038 +2.70
Elanor Commercial Property Fund ECF 1.0075 +2.28
Centuria Industrial CIP 3.04 +2.01

Source: ASX. * Data may be delayed.

The movement

It was a slow start to the week, with the daily wraps for 1 August here, and 2 August here.

It was mostly reporting season on Monday, with Ultima United (ASX: UUL) reporting net cash inflow for the quarter from its Cannington project of $24,096 and expenditure of $21,749 on its Bentley project; Openn Negotiation (ASX: OPN) announcing its Australia New Zealand operations recorded 62% growth in uploads, year on year; and Auckland Real Estate Trust (ASX: AKL) announcing cash position at 30 June 2022 was A$1.05 million, cash receipts from tenants for the quarter were A$4.01 million with monthly rental collections averaging 98%.

Tuesday saw a report from COF and Axiom announce a sale of 5.5 hectares.

Centuria Office REIT (ASX: COF) released its FY22 results, with the company announcing a 50% increase in profits. The company’s portfolio is now worth $2.3 billion across 23 assets, following the divestment of an Adelaide property and the acquisition of three others.

Axiom (ASX: AXI) said its proposed sale of 10 hectares to Living Choice is now unconditional. The $5.5 million portion of land is in Axiom’s Glenlea Estate residential subdivision in Mount Barker, South Australia.

Living Choice is a privately owned national company that develops and owns retirement villages, lifestyle communities, and residential developments. Living Choice has now received development approval for the construction of a proposed over 55s lifestyle community which satisfied the last remaining condition of the Axiom sale.

Wednesday was much more varied.

Growthpoint Properties (ASX: GOZ) announced the acquisition of Fortius Funds Management. The acquisition comprises an initial purchase price of $45 million, with a net asset adjustment, to be paid in cash and funded from GOZ’s existing liquidity and debt facilities. There is also an additional $10 million earnout component, subject to Fortius meeting milestones relating to FUM and revenue growth over the period to  June 2024.

Raptis Group (ASX: RPG) announced that Hall Chadwick QLD have been appointed as the company’s auditors, effective from 3 August 2022. The appointment follows the resignation of Nexia Sydney Audit Pty Ltd and ASIC’s consent to same.

Charter Hall Retail REIT (ASX: CQR) announced the expansion of its Long WALE Convenience Retail portfolio along with increased income from triple net leases linked to the consumer price index.

18 Gull service stations in New Zealand have been acquired along with a further expansion of Charter Hall’s partnership with Ampol, acquiring a 5% interest in an existing Charter Hall partnership that owns 204 Ampol service stations across eastern metropolitan markets.

The combined value of these acquisitions is $101.7 million and will be funded from existing investment capacity and are accretive to earnings.

The Gull NZ portfolio consists of the majority of Gull’s 100% owned network in the country, focused on the metropolitan markets. 56% are in Auckland and 5% in Wellington. The WALE is 15 years, with a purchase price of NZD$64.5 million (AUD $58.1 million), representing a core cap rate of 6.4%.

This portfolio was secured off-market through a sale and leaseback agreement negotiated between Charter Hall and the vendor.

More details here.

Finally, for Wednesday, Unibail-Rodamco-Westfield ASX: (URW) announced it will further increase its energy-saving approach across all of its shopping centres to support wider government and private sector efforts to address the European energy crisis.

URW said it will reduce energy intensity by a further 15%, including a 30% reduction in lighting during opening hours, shutting down of air curtains, significant reductions in air conditioning and heating, and adjusting indoor car park lighting based on occupancy.

Yesterday, Centuria Industrial REIT (ASX: CIP) released its FY22 results, with the company announcing $367.5 million statutory net profit, $111.7 million funds from operations, and $4.24 per unit NTA.

Read more here.

Today, Openn Negotiation (ASX: OPN) announced the results of its share purchase plan and SPP shortfall placement. The share purchase plan saw applications for 6,506,639 new fully paid ordinary shares, raising approximately $976,000, with a shortfall of approximately $1.024 million.

Openn is also raising approximately $520,000, by the issue of approximately 3,466,667 SPP Shortfall Placement shares to sophisticated and professional investors at the same price as the SPP Shares on Thursday 11 August 2022, using its Listing Rule 7.1 issuing capacity. Euroz Hartleys has been engaged to manage this process.

Openn will not be placing any of the remaining SPP Shortfall of $504,000.

That’s the latest in ASX listed real estate… but in other news have you heard of bleisure? The portmanteau of business and leisure captures a new trend in corporate travel with more details here. Or perhaps combine the two permanently and move to Brisbane, peruse our compilation of Brisbane’s most prestigious properties over the decade here.

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