construction-asx-market-overlay-feature
Image – Canva.
  • CIMIC announced its takeover bid for Devine
  • PEET issued new senior unsecured notes to raise up to A$75M
  • Dexus might make once-off awards to senior management

Welcome to the last mid-week wrap for May, where Queensland publicans delight and another company seeks Devine intervention.

The broader market

ASX 200 has closed at 7105.90 today.

asx-mid-week-wrap-26-05-single-day
Image – Google

As far as day to day trading is concerned, that’s a 0.13% loss on yesterday’s close but is a world away from the 2% drops experienced last week, when the market fell below 7,000 points.

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Image – Google.

Today’s top five performers included one real estate company, Domain (ASX: DHG), and one construction company, Fletcher Building Limited (ASX: FBU).

The resignation of ASX Deputy CEO, Peter Hiom, was also announced today.

His 23 years of service was highlighted by the managing director and CEO of the ASX, Dominic Stevens, Mr Hiom’s foresight was also celebrated.

“Peter is a strong advocate for embracing new technology to deliver innovation and efficiency across our industry. This is best exemplified by his leadership of the investigation and adoption of distributed ledger technology to underpin the replacement of CHESS.”

Dominic Stevens, MD and CEO, ASX

At the close today, the top-performing real estate companies are:

Top-performing ASX listed real estate companies

Company Code Price Change (%)
Domain DHG 4.81 +5.48
Tian An Australia TIA 0.33 +4.76
Fletcher Building FBU 6.98 +4.02
REA Group REA 164.50 +2.91
Devine DVN 0.24 +2.13

Source: ASX

The movement

This week kicked off to news Hotel Property Investments (ASX: HPI) acquired six Queensland hotel property assets for a combined $32.7 million with a weighted average yield of 7.75%.

Monday also saw news Darren Rehn will retire from Stockland (ASX: SGP). The Group Executive and Chief Investment Officer started in the role on 18 March 2013, and was previously the Managing Director for Merrill Lynch & Co Inc, spending 16 years in the investment banking scene.

In other Monday news, Charter Hall Long WALE REIT (ASX: CLW) opened its retail offer. The offer is part of capital-raising efforts that began on 18 May, the institutional element was successfully completed on 19 May.

Finally, for Monday, Qualitas (ASX: QRI) issued dividends at 0.8176 cents per security.

Tuesday saw the market open to news CIMIC (ASX: CIM) made a takeover tilt for Devine (ASX: DVN).

The potential $15.6 million deal sees CIMIC offer Devine 24 cents per security, which at the time of the offer was double the Devine security price of 12 cents. DVN has since sky-rocketed to 24 cents as well, the offer effectively not a premium on the current trading price.

Dexus (ASX: DXS) announced senior management retention awards, the move designed to retain three key management personnel including the CEO.

Pending performance reviews, the once-off awards could see the CEO awarded up to $3.5 million, the General Manager, and Chief Investment Officer potentially up to $1.5 million each.

Further details will be released in the remuneration report on 17 August 2021.

Peet Limited (ASX: PPC) announced the start of a “new senior unsecured notes offering to raise up to A$75 million.”

The company will also increase the existing senior debt facility by $25 million, and extend its existing senior debt facility to 1 October 2024.

These measures are designed to contribute towards the upcoming maturation of bonds.

Finally, in ASX listed real estate movements today, Fletcher Building (ASX: FBU) announced it will “undertake a capital return to shareholders of up to NZ$300 million through an on-market share buyback. The buyback will commence in June 2021.”

Here ends the mid-week wrap for ASX listed real estate companies. Blessed is the market indeed.

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