open-brick-storage-feature
Image – Canva.
  • Brickworks topped the overall performers on the ASX
  • URW showed the strength of retail as second best overall performer
  • Vitalharvest received its eighteenth offer

The mid-week wrap sounds much like that biography of Kerry Packer, for it is the rise and rise of the market.

The broader market

Last week a number of highs were reached, the ASX reached over 7,300 points, albeit just briefly.

Monday saw the market reach over 7,300 again in the morning before dropping, a similar trend happened on Tuesday.

Today, however, the ASX peaked late in the morning at 7,334.90 before quickly dropping off after lunch and closing at 7270.20 points.

asx-mid-week-wrap-chart-09-06-2021
Image – Google.

The top five overall performers included Brickworks (ASX: BKW), a brick and concrete block manufacturer, that rose 11.32%. Rather conveniently brick and mortar retail Unibail-Rodamco-Westfield took out the number two spot, rising 7.51%

On the other end of the market, Charter Hall Group (ASX: CHC) was the fourth-worst performer, down 3.44%.

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

Top-performing ASX listed real estate companies

Company Code Price Change (%)
Unibail-Rodamco-Westfield URW 6.225 +7.51
Proptech Group PTG 0.78 +3.31
Cedar Woods CWP 6.80 +2.26
US Masters Residential Property Fund URF 0.275 +1.85
Finbar FRI 0.855 +1.79

Source: ASX

The movement

This weeks trading opened to news Growthpoint’s (ASX: GOZ) portfolio valuation grew by $251 million or 7.7%, the preliminary numbers are only representative of 45 of 55 properties.

“The preliminary results of Growthpoint’s external valuations indicate the largest six-month increase on a like-for-like basis in the Group’s history. The significant uplift reflects the substantial re-rating that has occurred across the industrial sector,”

Timothy Collyer, Managing Director of Growthpoint

The GOZ news was followed by the announcement, Centuria Industrial REIT (ASX: CIP) was set to be listed on a global index.

The company will soon be included in the FTSE EPRA Nareit Global Index (Financial Times Stock Exchange, European Public Real Estate, National Association of Real Estate Investment Trusts). It will begin trading on 21 June 2021.

As Tuesday began trading, National Storage (ASX: NSR) didn’t, the company went into a trading halt before an announcement.

National Storage announced a $325 million equity raise to fund its 27 acquisitions and bring down gearing.

In other NSR news, had record occupancy rates at 86.7%, the company also increased EPS guidance to 8.5-8.6 cents per security.

Vitalharvest (ASX: VTH) again rejoins the mid-week wrap, this time with a leap in the unit price offered.

Roc Private Equity has now offered $1.33 per unit for the takeover of VTH, or $357.35 million in assets. The deal is now starting to look different to previous offers, the asset sale alternative only equates to $1.31 per unit if that option is taken, a two cent discount.

The proposal prior was for $1.295 by Macquarie Agricultural Funds Management (MAFM).

No additional information was provided regarding the Roc offer to add one cent to any MAFM proposal.

Desane Property (ASX: DGH) also announced it completed a $6 million long term funding deal with Commonwealth Bank. The stand-alone loan facility is secured by Desane’s Lane Cove industrial assets. The interest rate for the loan is 1.9%.

Today’s trading opened to news that Axiom Property (ASX: AXI) will soon settle its $8.5 million Butler development site.

Shortly afterwards, National Storage (ASX: NSR) announced the success of the institutional entitlement offer, some $260 million now going towards the company’s acquisitions. The retail offer to complete the $325 million equity raise will commence on 15 June.

Finally, Dexus (ASX: DXS) put $180 million towards Australian Unity‘s (ASX: AYU) healthcare arm, Australian Unity Healthcare Property Trust (AUHPT). The AUHPT raising target is $320 million, with the remainder coming from an entitlement offer for AUHPT wholesale units, and $20 million in a placement to Australian Unity Strategic Holdings (AUSH).

 

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