A partnership to purchase an airport has taken off in Perth. Image: Canva.
  • ASX200 closed 7,087.70
  • Quarterly reports continued to roll out
  • CHC and a Dutch pension fund set their sights on Irongate

It’s quite a coincidence this mid-week wrap falls on 2/2/22 and includes a partnership, a proposal, and a purchase including a triple net lease in the double digits.

Charter Hall, along with a Dutch pension fund, sent a non-binding proposal to Irongate for $1.90 per share, Cbus Super joined Dexus at Jandakot Airport, and Charter Hall’s DIF4 acquired SPC’s Shepparton facility.

The broader market

The ASX200 closed today at 7,087.70, gaining 81.70 points or 1.17%. The ASX200 is still down 4.79% for the year, but up 1.81% over the last five days.

None of the top five performing companies included real estate, but did include Auckland International Airport at number two, along with two resource companies (CIA, PLS), Computershare (ASX: CPU), and Worley (ASX: WOR).

Two tech companies (Z1P, APX) had the largest declines, along with Amcor (ASX: AMC), Codan (ASX: CDA), and Credit Corp Group (ASX: CCP).

Image: Google.

Top-performing ASX listed real estate company shares: 2 February 2021

Company Code Price ($) Change (%)
Openn Negotiation OPN 0.145 +3.57
Domain DHG 4.90 +2.94
McGrath MEA 0.54 +2.86
Australian Unity Office Fund AOF 2.36 +2.61
Elanor Retail Property Fund ERF 1.11 +2.30

Source: ASX

In addition to the top performers, the bottom five (from fifth lowest to lowest) were:

Least-performing ASX listed real estate company shares: 2 February 2021

Company Code Price ($) Change (%)
Acumentis ACU 0.155 -3.13
360 Capital Group TGP 0.85 -3.41
HomeCo Daily Needs REIT HDN 1.365 -3.53
Victory Offices VOL 0.11 -4.35
Axiom AXI 0.07 -6.67

Source: ASX

The movement

Monday began with news from Centuria Capital Group (ASX: CNI) announcing total AUM had grown to $20.2 billion as of 31 December; the figure indicated 16% growth since the end of the last financial year.

Two pieces of news came from Charter Hall Group, one from its Direct Industrial Fund (DIF4) and one from Charter Hall (ASX: CHC).

CHC and Dutch pension fund PGGM made a non-binding indicative proposal on Saturday 29 January 2022 to acquire all stapled securities in Irongate (ASX: IAP) for $1.90 per stapled security.

The proposal indicated that Charter Hall and PGGM expected to fund the acquisition from existing financial resources, including existing cash and undrawn and new debt facilities; Charter Hall and PGGM have received approvals from their relevant board and investment committees to pursue the transaction.

Charter Hall’s DIF4 announced on Tuesday that it acquired SPC’s Shepparton facility in Victoria for $66 million. The purchase was made off-market, and comes with a 30-year triple-net lease – a rare occurrence – with an initial passing yield of 6.1%.

Agricultural Land Trust (ASX: AGJ) announced the successful refinancing of the Fund’s $10 million secured loan and of the Series 5 and Series 8 debentures ($1.6 million).

The new facility is fully drawn and has a facility limit of $13 million. The new facility has a term of three years. The Fund has also recently agreed terms to increase the facility limit on the unitholder loan from $1.8 million to $2.5 million.

Waypoint REIT (ASX: WPR) reported a gross valuation uplift of its portfolio of $130 million, representing a 4% increase on prior book values for the six month period to 31 December 2021. The company said it was due predominantly to capitalisation rate compression.

The weighted average capitalisation rate on WPR’s portfolio of 427 properties tightened 22 basis points from 5.37% as at 30 June 2021 to 5.15% as at 31 December 2021. On a pro-forma basis, the gross valuation uplift equates to a $0.17 or 6% increase on WPR’s NTA per stapled security since 30 June 2021.

Results are subject to audit and finalisation.

On Tuesday, Dexus (ASX: DXS) announced it partnered up with Cbus Super at Jandakot Airport. Previously the Jandakot acquisition would have seen DXS take 66.7% of the airport, and Dexus Industria REIT (ASX: DXI) take 33.3%. The proportions now see DXS own 33.4%, with Cbus owning a 33.3%, DXI continues to have a 33.3% interest.

McGrath (ASX: MEA) announced CEO, Eddie Law, resigned from the position providing six months notice of termination in accordance with his employment contract. Mr Law intends to serve out his six month notice period.

Qualitas (ASX: QRI) announced the resignation of Richard McCarthy as a Director of the Responsible Entity.

Centuria Industrial REIT (ASX: CIP) released its HY22 results, the company upgrading its FY22 FFO guidance to no less than 18.2 cents per unit. The company’s statutory profit was $308.1 million, up from HY21 which was $99.6 million.

GPT Group (ASX: GPT) announced that joint owners GPT and the GPT Wholesale Shopping Centre Fund (GWSCF) have exchanged contracts for the sale of Casuarina Square to Sentinel Property Group for a net sale price of $397million. Settlement of the transaction is expected prior to the end of March 2022.

Acumentis (ASX: ACU) announced that it will acquire its South Australian franchisee Acumentis SA. The upfront consideration is $950,000 plus working capital balance and will be settled 75% in cash and 25% in newly issued Acumentis shares.

Today, Elanor Commercial Property Fund (ASX: ECF) announced a portfolio valuation increase of $18.1 million. equating to 3.7%, now worth $513.2 million. The company’s FY22 FFO guidance of 10.8 cents and FY22 distribution guidance of 9.4 cents per security was reaffirmed.

Finally for today, Dexus Convenience Retail REIT (ASX: DXC) and Dexus Industria REIT (ASX: DXI) announced the retirement of independent chairman, Geoff Brunsdon. Mr Brunsdon is retiring from 28 February 2022, after 12 years as an independent director and nine years as chairman.

Update: Australian Unity Office Fund (ASX: AOF) provided a preliminary valuations update, with the portfolio seeing a net increase of some $10 million above prior independent valuations and $4 million above the immediately preceding book value.

The company’s preliminary December 2021 total portfolio value is $586.5 million.

Bottoms up for a quart of quarterlies, that’s the latest in ASX listed real estate.

Meetings and distributions

Distributions/Dividends announced:

Company Code Amount
Rural Funds Group RFF $0.029331
Hotel Property Investments HPI $3.5118

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