Image – Canva
  • ASX200 closed today at 7,327.10 points
  • For the week so far, the market is down 27.6 points
  • Dividends were divvied up, CQR dividends were 11.7 cents and GOZ 10.4 cents

The broader market

The ASX200 closed today at 7,327.10 points, dropping 51.30 points from yesterday. Bottom performing stocks included Pointsbet Holdings, and Polynovo Limited.

For the week so far, the market is down 27.6 points.

Image: Google.

Top-performing ASX listed real estate company shares: 15 December 2021

Company Code Price ($) Change (%)
Axiom Properties AXI 0.07 +14.75
US Masters Residential Property Fund URF 0.32 +3.23
Peet PPC 1.10 +2.80
Ultima United UUL 0.545 +1.87
Proptech Group PTG 0.575 +1.77

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: 15 December 2021

Company Code Price ($) Change (%)
Openn Negotiation OPN 0.14 -3.45
CSR Limited CSR 5.69 -3.56
REA Group REA 163.05 -3.67
HomeCo HMC 7.27 -5.83
Acumentis ACU 0.155 -6.06

Source: ASX

The movement

Domain (ASX: DHG) announced that the Domain Group entered into an agreement to amend and extend its existing syndicated facility agreement.

The company said that the amended facility agreement is expected to be available later the month following satisfaction of conditions precedent, and will provide the company with access to a total commitment of $355 million, across: a four year $5 million revolving contingent instrument facility; a four year $210 million revolving cash advance facility; and a five year $140 million revolving cash advance facility.

Centuria Office REIT (ASX: COF) has provided an update on its operations and guidance, including FY22 FFO guidance up, now 18.3 cents per unit, FY22 distribution guidance of 16.6 cents per unit reiterated, a 100% occupancy at 35 Robina Town Centre Drive with a WALE increase to 2.7 years and a circa $28.5 million portfolio valuation uplift.

Centuria Industrial REIT (ASX: CIP) also provided updates, the company recorded leasing results which grew 10% from prior passing rents. CIP also reported leasing activity which resulted in CIP occupancy figures of 99.1% and a WALE of 8.9 years.

Axiom Properties (ASX: AXI) settled the sale of its Butler Central Homemaker Centre in WA, announcing it executed unconditional contracts for the sale of the project with The Lester Group.

Under the terms of the agreements, Axiom will sell the land component of the land to  Lester and has entered into a Development Management Agreement obligating Axiom to deliver the completed Centre in accordance with the current construction contract.

Lester will pay Axiom $8.5m at settlement this morning (Monday 13th December) as well as reimburse Axiom’s costs spent to date of approximately $7.6m. Lester will fund all future drawdowns and Axiom will receive its final development fee once Practical Completion occurs. The total purchase price is expected to be circa $48m.

Charter Hall Group (ASX: CHC) also released an update, the company reported following the company’s 6-monthly valuation process, a net valuation uplift of circa $3.5 billion was recorded.

As a result of valuations and unconditional transaction activity to date, Group FUM is now expected to be $61.3 billion as at 31 December, 2021.

Charter Hall Social Infrastructure REIT (ASX: CQE) also provided an update, the company’s valuations resulted in a $175.4 million, or 11.9% uplift on the prior book values.

The average passing yield on these properties has compressed 60bps from 5.6% to 5.0%. The unaudited impact of the valuations announced today will contribute to the increase in the estimated NTA per unit from $3.25 to $3.722, a $0.47or 14.5% increase on the June 2021 NTA per unit.

Charter Hall Long WALE REIT (ASX: CLW) reported valuations saw a $529 million uplift, or 8.1% uplift on prior book values, increasing the overall portfolio value from $6,511 million to $7,040 million during the six month period to 31 December 2021. The portfolio’s weighted average cap rate has compressed 37bps from 4.78%1 to 4.41%.

The unaudited impact of the valuations announced today are expected to increase CLW’s estimated pro-forma June 2021 NTA per security from $5.111 to $5.85, a $0.74 or 14.4% increase.

Charter Hall Retail REIT (ASX: CQR) also announced its latest valuations, with a $314 million, or 8.5% increase on prior book values inclusive of forecast capital expenditure. Overall portfolio value has increased from $3,647 million to $4,012 million and the portfolio average cap rate has compressed 43bps from 5.81% to 5.38%.

Irongate (ASX: IAP) announced the completion of the sale of 24 Wormald Street in Symonston ACT.

Eureka has entered into unconditional interdependent contracts to sell two properties in Townsville, Queensland, and expression of interest campaign was conducted on Primrose Street Belgian Gardens, and Nelson Street, South Townsville.

The purchaser is Sydney-based Jacana Developments. Total consideration for the disposals is $3.0 million (excluding selling costs). The proceeds will be used to pay down debt and fund further acquisitions. Settlement is scheduled for 31 March 2022.

CAQ Holdings (ASX: CAQ) announced the appointment of non-executive director, Xiao Huan Wei, whom has served as the CEO & President of Secret Garden (Zhangjiakou) Resort Co., Ltd. in China.

In Growthpoint’s (ASX: GOZ) market update, the company said preliminary draft external valuations indicate a valuation uplift of $256 million. Other highlights included the acquisition of an office in Phillip, ACT, with a 9.2-year WALE for $84.6 million.

GDI Property (ASX: GDI) recently acquired more than $68 million of carparks in Perth’s CBD, with more details here.

Irongate (ASX: IAP) announced that it received a revised non-binding indicative proposal from 360 Capital Group and 360 Capital REIT, the offer: $1.72 per stapled security. This reflects an increase of 7.2% on the original indicative proposal on 15 October 2021.

IAP also announced the completion of the 510 Church Street acquisition in Victoria.

Finally, Abacus Property (ASX: ABP) acquired 100% leasehold interest (296 years remaining) in 77 Castlereagh Street in Sydney. The settlement is expected in January next year.

The company’s preliminary valuations update saw a $175 million increase, or 5% increase in value. The valuation is only of 49 of the company’s properties so far, or 36% of the Group’s portfolio by number.

The unaudited valuations are expected to increase the Group’s pro forma net tangible assets (NTA) by circa $0.21 per security to $3.64, an increase of 6% on the 30 June 2021 NTA.

Meetings and distributions

Distributions/Dividends announced:

Company Code Amount
GDI Property GDI $0.03875
Charter Hall Social Infrastructure REIT CQE $0.04225
Charter Hall Long WALE REIT CLW $0.0762
Charter Hall Retail REIT CQR $0.117
Growthpoint Properties GOZ $0.104
Qualitas QRI $0.006706
National Storage NSR $0.046
Centuria Capital Group CNI $0.055
US Masters Residential Property Fund URF $3.15

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