ASX Wrap
The ASX mid-week wrap. Photos – from Canva.
  • Broader market ended the day flat
  • ABS inflation data the biggets eocnomic story of the day
  • Openn Negotiation was the top performing ASX-listed property company today

The September quarter reports continue to roll in, and the first half of the week saw at least two divestments, and several other acquisitions.

The broader market

The ASX200 closed today relatively flat today at 7,447.1 points, minutely above yesterday’s close of 7,443.40. Just before midday, it peaked at 7,467.70 points before reaching a low of 7,420.50 just over 30 minutes later. After the low, it returned to the opening level, where it wavered around until the close of the market.

asx 200 27
Source: Google.

The fall coincided with the release of data from the Australian Bureau of Statistics (ABS) revealing inflation was 3% in the year to September – the maximum level the Reserve Bank (RBA) will tolerate.

Perhaps investors are now flirting with the idea that the RBA may lift interest rates sooner than 2024, resulting in a flat afternoon.

Top-performing ASX listed real estate company shares: [DD Month] 2021

Company Code Price ($) Change (%)
Openn Negotiation OPN 0.175 16.67
Axiom Properties Ltd AXI 0.10 5.26
The Agency AU1 0.055 3.77
Finbar Group Limited FRI 0.84 3.05
360 Capital Group TGP 0.85 3.03

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: [DD Month] 2021

Company Code Price ($) Change (%)
Servcorp Limited SRV 4.10 -2.15
Cedar Woods CWP 6.04 -2.27
Victory Offices VOL 0.175 -2.78
Proptech Group PTG 0.65 -4.41
Lifestyle Communities LIC 21.96 -5.34

Source: ASX

The movement

This week started with news Centuria Industrial REIT (ASX: CIP) will be divesting 99 Quill Way in Henderson, Western Australia. The $10.5 million sale reflects a 16.7% premium to the book value of $9 million (as at 30 June 2021). Settlement is expected to occur in December this year.

Also on Monday, Qualitas (ASX: QRI) announced that its 1 for 2 non-renounceable entitlement offer to raise up to $214 million closed, and the shortfall offer opened. The shortfall offer then closed at 5:00 pm the same day.

On Tuesday, QRI announced the results, with the entitlement and shortfall offers raising approximately $171.6 million in value of new fully paid ordinary units.

“This capital raise has been a successful one for the Trust and I am pleased with the take up of subscriptions which has enabled the Trust to grow its total capital by a further 40% to $599.6 million,” said Andrew Schwartz, Group Managing Director of Qualitas.

Ultima United (ASX: UUL) announced on Monday that the company will be embarking on a new project in Perth, Western Australia. The UUL Board has put in a formal offer of purchase for a piece of land situated at 8 Parker Street in Northbridge.

The land is in the heart of Perth’s nightlife district, close to James Street, and other popular local haunts.

More details will be released by UUL at a later stage.

Finally for Monday, 360 Capital (ASX: TGP) released its September quarter update, reaffirming its earnings guidance of 6 to 7 cents per share, and a dividend forecast of 6 cents per share for FY22, equating to 1.5 cents per share per quarter.

The Group has signed a conditional agreement to sell its remaining 39.1% stake in FibreconX as well as 50% of the management rights to the 360 Capital FibreconX Trust for a total of $26.7 million, equating to an IRR of approximately 177%.

TGP also announced it has a strong balance sheet with approximately $95 million in cash ($0.43 per security) post-settlement of the FibreconX transaction and has an unaudited NAV of over $1.00 per security, with less than $10 million in unlisted assets, no borrowings and the balance of the Group’s assets in ASX listed securities.

On Tuesday, Proptech Group (ASX: PTG) released its September quarter figures, announcing cash receipts from customers of $5 million, an increase of 99% over the previous corresponding period, and a 23% increase over the last quarter (Q4 FY21).

The company continues to have a positive net cash flow from operations of $612, 000, up 48% year on year, and completed a $15.5 million capital raise (before share-issue costs). PTG also noted it had $14.8 million in cash and cash equivalents as of 30 September 2021.

Growth in cash receipts from customers

ptg-september-quarter-figures-graph
Image: Proptech Group.

Dexus Industria REIT (ASX: ADI) announced the settlement of 2 Maker Place, Truganina, Victoria, and the acquisition of 50% interest in 12 Church Street, Moorebank, New South Wales.

The Truganina property was acquired for $69 million and is a logistics facility leased to Australia Post. The Moorebank property was a joint venture acquisition with Dexus. ADI’s initial share of the acquisition costs, including stamp duty, is $22 million.

Today, Centuria (ASX: CNI) announced it made two acquisitions, an Adelaide office, and an agricultural asset in Warragul, Victoria. In both acquisitions, CNI took a 50% interest in the properties.

GPT Group (ASX: GPT) announced that the GPT Wholesale Shopping Centre Fund (GWSCF) has exchanged contracts on the sale of Wollongong Central to Haben Property Fund and the JY Group for $402 million.

The sale price is in line with Wollongong Central’s current book value, and settlement is expected in December this year.

Finally today, Axiom Properties (ASX: AXI) announced that financial close has now been achieved for the construction of Butler Central Homemaker Centre in Western Australia.

All outstanding conditions precedent have been satisfied including Axiom’s additional equity commitment to the project.  The $25m development facility is being provided by BankSA.

Approximately 65% of the Centre is now pre leased to predominantly major national tenants. Construction of the Centre is well underway, with completion on track for handover to tenants in June next year.

That’s the latest in ASX-listed real estate companies.

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