roller coaster overlay stock market graph
Image – Canva.
  • The market has closed at 7,308
  • ASX 200 lost 0.83% for the last five days
  • Cedar Woods announced record presales

There was very little movement this week in ASX real estate, apart from dividends updates and portfolio valuations, although some companies released positive outlooks to less than impressed investors, share prices falling thereafter.

The broader market

The market closed at 7,308 points today, down from last week’s trading highs of around 7,400.

Last week it closed at 7,368.90, before falling on Monday to 7,235.30; at one point on Monday it was as low as 7,225.80.

asx-end-week-whole-week-chart-25-06
ASX movements for this week. Image – Google.

At the close of today’s trading, the strongest performers for real estate companies were:

Top-performing ASX listed real estate companies

Company Code Price Change (%)
Mustera MPX 0.30 +4.00
Cedar Woods CWP 6.98 +3.87
Arena REIT ARF 3.53 +3.82
Waypoint REIT WPR 2.73 +3.02
APN Industria ADI 3.39 +2.73

Source: ASX

The movement

Charter Hall Social Infrastructure REIT (ASX: CQE) announced on Monday that it has agreed to new 20-year leases on a further 48 properties with Goodstart Early Learning. Prior to the leasing agreement, the property WALE was 5.5 years, it is now expected to be 15 years.

Company valuations saw a 12.3% more on prior book values or an $81 million increase. The passing yield on these properties has firmed by 56bps to 5.7%. Excluding the 29 leasehold properties valued, the passing yield on freehold properties firmed by 59bps to 5.4%.

On Tuesday, Cedar Woods (ASX: CWP) announced record presales, reaching $439 million as of 31 May.

The presales – which are due for settlement in future financial years – are up more than 20% based on the $360 million balance recorded at the end of the last financial year.

Portfolio valuations were reported for Dexus (ASX: DXS), with 117 of 128 assets valued. Values increased 2.3% on prior book values, or $362 million. Despite the positive news, DXS share prices fell from $10.98 in the morning to $10.82 by the end of trading on the same day.

Australian Unity (ASX: AYU) announced it had committed to a new premium cash offer to purchase units from existing investors in Australian Unity Healthcare Property Trust (AUHPT). Earlier this month, Dexus put its interest in the fund.

The move happened amidst several rejected AUHPT takeover bids by Canadian firm Northwest Healthcare Properties.

“AUSH has made this New PCO following NorthWest making its fourth unsolicited proposal to acquire 100% of AUHPT and NorthWest making its offer to buy units under the NorthWest Facility.”

AYU

Aventus (ASX: AVN) released portfolio figures on Wednesday, a 12% increase on the 31 December 2020 figures or a net valuation gain of $254 million.

Total portfolio valuation gains over the past four years are approximately $550 million or a 30% increase.

Lifestyle Communities (ASX: LIC) and Axiom (ASX: AXI) both completed sales on Thursday, LIC its St Leonards development and Axiom its Butler Central project.

Following Centuria’s (ASX: CNI) acquisition, Primewest (ASX: PWG) securities were suspended from quotation on Thursday.

Today, Charter Hall Group (ASX: CHC) announced forecasted group funds under management will rise to approximately $52 billion as a result of gross valuation increases of $3.3 billion.

Group FUM has increased $12 billion over the course of FY21, providing 28% growth in FUM.

charter-hall-fum-table
Image – Charter Hall Group.

As for those dividends and distributions, the list of companies issuing included: Vicinity (ASX: VCX), Centuria Office REIT (ASX: COF), Centuria Industrial (ASX: CIP), 360 Capital (ASX: TGP), Charter Hall Social Infrastructure (ASX: CQE), CSR (ASX: CSR), Stockland (ASX: SGP), Growthpoint (ASX: GOZ), Aventus (ASX: AVN), Charter Hall Long WALE REIT (ASX: CLW), BWP Trust (ASX: BWP), Australian Unity Office Fund (ASX: AOF), ALE Property (ASX: LEP), National Storage (ASX: NSR), Cromwell (ASX: CMW), Qualitas (ASX: QRI), Elanor (ASX: ERF), Aspen (ASX: APZ), Waypoint (ASX: WPR), Carindale (ASX: CDP), and Vitalharvest (ASX: VTH).

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