- MYR shares jumped over 20% following a Tuesday announcement
- Reporting season is well under way
- The Agency announced the settlement of its Bushby Property Group acquisition
Reporting for duty, sir!
Indeed it’s that time of year, with strong retail figures driving the share price of MYER (ASX: MYR) up in double digits earlier this week.
In other non-reporting news, Aliro’s takeover bid for Australian Unity Office Fund seems like it won’t be going ahead, and The Agency (ASX: AU1) also made an announcement.
The broader market
The ASX200 closed today at 6,945.20 points, up 55.50 points or 0.81%. The day’s trading was very much an early spike, trading around that elevated level for much of the day.
Monday morning kicked off with an update from Auctus (ASX: AVC), with its US Student Housing REIT (ASX: USQ) recently undergoing valuations. All assets except for the recently acquired Lofts on 8th at Arizona State University were independently valued by CBRE for 30 June 2022, with the resulting GAV of the portfolio of 9 properties increasing to US$144.6 million or circa A$210 million.
The revaluations are up from US$136.9 million. The portfolio is also 92.3% pre-leased, with current pre-leasing ahead of the prior year’s figures by 16.1%.
AVC also held a meeting regarding the return of capital to shareholders today, with shareholders voting 99.79% for the motion. AVC said the capital return totals approximately $3.93 million.
Australian Unity Office Fund (ASX: AOF) announced that Aliro has withdrawn its takeover bid for AOF. The company originally made its proposal at the end of May, but has now advised AOF that it is unable to submit an updated proposal at this time.
In the market announcement, Aliro noted a deterioration of market conditions was a factor in being unable to arrive at an offer price that was suitable for both Aliro and AOF unitholders.
AOF also released details of its portfolio valuations, with independent valuations received for seven of the company’s assets.
The valuations reflected a decrease of $37.25 million from the prior independent valuations. The company said this was mainly due to two assets: 30 Pirie Street in Adelaide and 2-10 Valentine Avenue in Parramatta.
The Adelaide property saw a $16 million decrease to $73 million, with AOF stating the valuation “reflects increased capital expenditure allowances which will be required to refurbish the building following the expiry of Telstra’s lease in February 2023.”
The Parramatta property valuation dropped by $22.55 million to $98 million, AOF said this was due to a change in valuation methodology.
More details on AOF here.
Earlier this month, The Agency (ASX: AU1) announced it would acquire Tasmanian real estate business Bushby Property Group. The $5 million deal would see one of the oldest family-owned real estate businesses join AU1. On Monday, AU1 confirmed the settlement of the Bushby acquisition.
In other news from The Agency, the company said that, subject to shareholder approval, it has agreed to extend the maturity date of the company’s pre-existing convertible notes with Peters Investments.
As at 30 June 2022, The Agency had $3.6m of convertible notes on issue to Peters Investments. The maturity date extension will be made to 22 January 2026.
The Agency has also agreed new terms with Macquarie Bank Limited. AU1 said it has entered into an amendment deed in respect of its primary secured debt facility with Macquarie, with the total facility limit increased to $8.4 million, the interest rate to remain at 3.75% per annum + 30 days BBSW, among other amendments.
On Tuesday, Myer’s (ASX: MYR) trading update put a spring in some investors’ steps. The company announced it was expecting up to $60 million, more here. The company’s share price jumped as high as 22%.
Tuesday and Wednesday were very quiet for ASX-listed real estate news, but on Thursday, Peet (ASX: PPC) announced it was expecting operating profit after tax for FY22 to be $52.3 million.
The figure is at the upper end of its guidance range which was $48 million to $52 million, announced in May this year.
Peet’s expected profit performance for FY22 equates to an earnings per share of 10.8 cents per share. PPC also said the final dividend is expected to be four cents per share, fully franked, with the total FY22 dividend being 6.25 cents per share, fully franked.
“The strategic rebalancing of the Group’s national portfolio to further increase its exposure to the east coast market is delivering strong results and provides a strong platform for future growth, underpinned by a portfolio of large low-cost projects,” said Peet Managing Director and CEO, Brendan Gore.
Centuria Office REIT (ASX: COF) will be announcing its FY22 results on 2 August 2022, with the webcast to be held at 10:30 am AEST.
Centuria Industrial REIT (ASX: CIP) will be announcing its FY22 results on 4 August 2022, with the webcast to be held at 10:30 am AEST.
In GPS Alliance’s (ASX: GPS) activities report for the June quarter 2022, GPS said it has been appointed to represent a buyer who is bidding for the acquisition of a pair of 4-storey adjacent shop house units with commercial spaces on the ground level and residential units on the upper levels. The company said that if the adjacent shop houses are successfully acquired, GPS will have the right of first refusal to assist the investor in addition and alteration works with the full fit-out of the residential levels into either service apartments or co-living spaces.
GPS also announced improved hotel occupancy rates, currently between 60% to 65%, and its boutique agency specialising in industrial properties earned SG$43,800 in commission for the June quarter 2022.
In Mustera’s (ASX: MPX) quarterly update, the company’s Forbes Residences secured $4.54 million in apartment sales during the quarter for the project.
In Unibail-Rodamco-Westfield’s (ASX: URW) H1 2022 results, the company noted tenant sales exceeded 2019 levels in Q2, 105% of 2019 levels for the Group. Overall sales almost matched pre-pandemic levels at 99% of 2019 levels. The figures were mostly driven by the United States of America with sales in the US 106% of 2019 levels, UK was 91%, and continental Europe was 97%.
Other metrics were also improving, the company reported retail vacancies were 6.9%, down from FY2021 of 7%, and rent collection was 96%, compared with 88% in FY2021 and 73% in H1 2021.
Proptech Group (ASX: PTG) released its Q4 FY22 results, with the company achieving cash receipts of $5.4 million, positive net cash flows from operations of $700,000, and strong cash balance of $14.2 million.
The company said for FY22, the total cash receipts were $21.4 million, and increase of 74% over the previous year. PTG also had a positive net cash flow from operations of $2.7 million, an increase of 136% over the previous year.
Today, Rent.com.au (ASX: RNT) announced quarterlies, with the company achieving a quarterly revenue of $880,000, a 9% improvement on the previous corresponding period. RNT also has $2.2 million cash on hand at the end of the quarter.
Acumentis (ASX: ACU) achieved quarterly revenues of $15.1 million, with other highlights including a return to positive operating cashflows despite some significant non-recurring expenses. The company had a closing cash of $900,000 and access to unused overdraft facility of $1.7 million.
For ACU’s preliminary final results, the company’s annual revenues increased by 26% from $44 million to $55 million. The company noted it is on track to reach $60 million for FY23. The company’s recently acquired businesses Acumentis WA and SA contributed $8.4 million of revenues and $1.0 million of profit before tax.
Stockland (ASX: SGP) announced that following the satisfaction of all completion conditions, it is expected the sale of SGP’s retirement living business to EQT Infrastructure will settle today.
In Hudson Investment Group’s (ASX: HGL) update, the company noted it now owns 100% of the Regent Street Property.
Finally for today, GARDA Property Group announced it secured a $40 million increase in its existing $280 million syndicated debt facility with ANZ Banking Group and St. George Bank.
The facility, currently drawn to $260 million, will increase to a $320 million limit, secured against $643.6 million of commercial and industrial properties.
The $320 million facility has a three-year and seven-month term remaining, expiring in March 2026. There have been no material movements in line fees, margins and establishment fees from the facility extension executed on 30 May 2022.
That’s the latest in ASX listed real estate.