End of week ASX wrap: 28 October 2022

• Market closed at 6,783.30 today
• The market is up 1.60% for the week
• Two shopping centre companies made the top five performers

Retirement living saw almost $30 million in transactions and a raise to support it, Mirvac has a new CEO, and company quarterlies were aplenty.

The ASX top five performers also saw two shopping centres in the mix.

The broader market

The ASX200 closed today at 6,783.30 points, down 0.90% or 61.80 points. The ASX opened at 6,676.80 on Monday, closing up 106.50 or 1.60% for the week.

Top-performing ASX companies: 28 October 2022

Source: ASX

In the top five overall performers, three real estate companies: Vicinity Centres, Scentre Group, and Lendlease.

The movement

Monday saw the news from Elanor Retail Property Fund (ASX: ERF). The company has received buy-back notices for approximately 38.5 ERF securities. The company said 70% of ERF securities will therefore remain invested in the new Elanor Property Income Fund (EPIF). The buy-back was undertaken as part of the privatisation and delisting of ERF.

Acumtenis (ASX: ACU) held its annual general meeting, with all resolutions passing.

On Tuesday, Centuria Office REIT (ASX: COF) released its Q1 FY23 operating update, announcing a circa 12,516 square metres of lease terms agreed YTD across 18 transactions, topping out of its Adelaide asset,  a 94.9% portfolio occupancy, 4.2-year WALE.

Centuria Industrial REIT (ASX: CIP) also announced a Q1 FY23 update, the company had 49,209 square metres of lease terms secured across 10 transactions, a 99.6% portfolio occupancy, 8.1 year WALE, and 18% positive re-leasing spreads. CIP’s Southside Industrial Estate development in Victoria is 100% leased prior to practical completion in November 2022, and the company acquired a strategic Derrimut industrial facility.

On Wednesday, Growthpoint (ASX: GOZ) released its 1Q23 investor update, the company announcing it maintained a WALE of 6.3 years, with high occupancy of directly owner portfolio of 96%.

GOZ completed circa 60,000 square metres of leasing, 2.6% of portfolio income. The company announced and completed the acquisition of Fortius Funds Management.

Dexus (ASX: DXS) also provided a September quarter update, the company reported rent collections were 98.6% for the September quarter. Dexus completed 113 leasing transactions across the Dexus office portfolio (44,785 sqm leased) and Dexus industrial portfolio (130,449 sqm leased), and maintained an occupancy of 95.6% and 97.7% respectively.

Dexus was also recognised as a global leader by the GRESB in the 2022 Real Estate Assessment, and awarded leading scores nu Principles for Responsible Investment. The company also transacted approximately $900 million in properties across the group, predominantly divestments.

On Thursday, Unibail-Rodamco-Westfield (ASX: URW) provided a quarterly trading update. URW reported turnover rose 20.8% in 9M-2022 versus 9M-2021. The company also reported tenant sales in Q3-2022 exceeded 2019 levels at 103% and 104% in September. Rent collection improved to 96% for Q3-2022, while H1 collection rate increased to 97% in line with pre-Covid levels.

Rent.com.au’s (ASX: RNT) quarterly activities report for Q1 FY23 saw quarterly revenue of $825k, 2% lower than the same quarter last year. The company has $1.3 million cash on hand at the end of the quarter, plus $700k R&D tax refund claim lodged.

RNT also launched a fully underwritten entitlement issue to accelerate RentPay. RNT is looking to raise $2.9 million at 4 cents per share (before costs). The price represents a 29% premium to the last closing price of 3.1 cents per share. Australian technology entrepreneur Bevan Slattery has agreed to sub-underwrite $1 million.

Eureka (ASX: EGH) announced it entered into unconditional contracts to acquire two villages located in Tamworth, NSW and Horsham, Victoria for $11.8 million. The expansion at Brassall, Queensland, is to commence with a further 51 new free-standing residences to be developed at an estimated cost of $11 million.

To fund the acquisitions and the Brassall development, Eureka is undertaking a fully underwritten equity raising comprising a 1 for 4 accelerated non-renounceable pro-rata entitlement offer to raise $28.2 million.

Today, Vicinity Centres (ASX: VCX) announced its quarterly results, with the company announcing a slight increase in occupancy to 98.4%. Vicinity said leasing activity momentum in FY22 continued in 1Q FY23 with flat leasing spreads of -0.4%; FY22 was -4.8%. VCX said 95% of gross rental billings collected for 1Q FY23.

Retail sales were up 21.2% for the quarter compared to September 2019 quarter, representing a three-year CAGR of 6.6%.

Mirvac (ASX: MGR) announced the appoint of Campbell Hanan as Mirvac’s next Group CEO & Managing Director.

Eureka Group (ASX: EGH) announced the successful completion of the institutional component of its $28.2 million equity raising announced yesterday. The institutional component has raised approximately $23.8 million. The retail component of the entitlement offer will be open on 3 November 2022 and is expected to raise approximately $4.4 million and is fully underwritten.

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