- Closed down 76.30 points at 7,332.50
- Top performers included AXI and NPR
- USQ expects to list mid February this year
A largely quiet week of admin and dividends across listed property funds, with the exception of Centuria, opening the batting with six acquisitions on the east coast.
The broader market
The ASX200 closed 1.03% lower today at 7,332.50 points.
Top-performing ASX listed real estate company shares: [DD Month] 2021
| Company | Code | Price ($) | Change (%) |
| Axiom Properties | AXI | 0.072 | +2.86 |
| Newmark Property REIT | NPR | 1.84 | +1.10 |
| Dexus Convenience Retail REIT | DXC | 3.49 | +0.87 |
| Dexus | DXS | 10.97 | +0.83 |
| Charter Hall Social Infrastructure REIT | CQE | 3.90 | +0.78 |
Source: ASX
In addition to the top performers, the bottom five (from fifth lowest to lowest) were:
Least-performing ASX listed real estate company shares: [DD Month] 2021
| Company | Code | Price ($) | Change (%) |
| Garda Diversified Property Fund | GDF | 1.67 | -2.05 |
| Rural Funds Group | RFF | 3.00 | -2.91 |
| US Masters Residential Property Fund | URF | 0.32 | -3.03 |
| Rent.com.au | RNT | 0.066 | -5.71 |
| The Agency | AU1 | 0.047 | -6.00 |
Source: ASX
The movement
Australian Unity Office Fund (ASX: AOF) announced the termination of the merger implementation deed originally announced in October last year. The proposed merger with Australian Unity Diversified Property Fund (DPF) did not go through, with some of AOF’s largest shareholders not supporting the merger.
Centuria Industrial REIT (ASX: CIP) announced a slew of acquisitions, including six urban infill industrial assets across Victoria, New South Wales and Queensland.
The assets, with an end value of $132.4 million, were targeted given the strong-performing eastern seaboard markets as part of Centuria’s strategy of capitalising on land constrained, urban infill markets.
The portfolio has an initial yield of 4% with a capitalisation rate of 4.21% with a weighted average lease expiry of 4.7% years. Occupancy is 100%.
| Properties | State | Value | Initial Yield | Capitalisation Rate | GLA | WALE | Occupancy |
| 90-118 Bolinda Road Campbellfield | VIC | $37.7M | 4.5% | 4.5% | 8,210sqm | 0.7 | 100% |
| 159-169 Studley Court, Derrimut | VIC | $17.1M | 4.3% | 4.25% | 7,725sqm | 4.8 | 100% |
| 43-49 Wharf Road, Port Melbourne | VIC | $11.5M | 3% | 4.25% | 2,387sqm | 1.7 | 100% |
| 8 Hexham Place, Wetherill Park | NSW | $12.2M | 3.6% | 3.63% | 3,217sqm | 1.7 | 100% |
| 590 Heatherton Road, Clayton South | VIC | $27.5M | 4% | 4% | 9,575sqm | 10 | 100% |
| 5/243 Bradman Street, Acacia Ridge | QLD | $26.5M | 3.9% | 4.25% | 9.897sqm | 7.8 | 100% |
| Weighted Average | $132.4M | 4% | 4.21% | 41,011sqm | 4.7 | 100% |
Charter Hall Retail REIT (ASX: CQR) announced that its Retail CEO and CQR Fund Manager, Greg Chubb, resigned to take up a senior role at Hong Kong listed Link REIT.
CQR has appointed Ben Ellis as the new Retail CEO and CQR Fund Manager.
Auctus (ASX: AVC) released its December quarter update, announcing increased AUM to A$466 million, from A$400 million, and the disposal of two American properties for a combined A$47.7 million.
The company’s US Student Housing REIT (ASX: USQ) is expected to list 16 February 2022. The REIT is seeking to raise $45 million.
Qualitas (ASX: QRI) also released a performance update, in which the company said it deployed and allocated 70% of the $172 million of new Trust capital raised from the entitlement offer into new loans and also achieved three new loan mandates totalling $159 million across investment and land loans.
QRI said it remains on track to fully invest the new capital by April this year, within the six month target period referred to in the PDS in the entitlement offer.
Aventus (ASX: AVN) announced that the merger will go ahead following Commonwealth Government confirmation that there was no objection to the merger, by way of the unstapling of Aventus Shares and Aventus Units, followed by the implementation of the Trust Scheme and Members’ Scheme, under which:
- HMC Funds Management as the responsible entity of the HomeCo Dail Needs REIT (ASX: HDN) will acquire 100% of the Aventus Units, and
- Home Consortium Limited will acquire 100% of the Aventus Shares by way of a scheme of arrangement under PArt 5.1 of the Corporations ACt 2001 (Cth).
Finally, United Overseas Australia (ASX: UOS) released its profit guidance for the year ended 31 December 2021, with estimated profit attributable to ordinary shareholders of $80 million. In 2020 the profit was $97.343 million.
Update: Abacus Property Group (ASX: ABP) announced that it exited its remaining residential development and mortgage legacy loan positions. In order to achieve this, the company exchanged conditional contracts to acquire a 100% freehold interest in the remaining land at 56 Prescot Parade in Milperra, NSW.
The total consideration for the Abacus acquisition is $100 million, before transaction costs. The company said the value equates to the carrying value of the outstanding loans previously held against the parcels of land. Settlement is expected at the end of March this year.
“These transactions bring to a close this non-core business activity for the Group. The two properties at Riverlands and Camellia will now be managed internally with a focus on realising the medium term development potential in these two infill suburban Sydney land parcels,” said Abacus managing director, Steven Sewell.
Meetings and distributions
Distributions/Dividends announced:
| Company | Code | Amount |
| Charter Hall Social Infrastructure REIT | CQE | (Update) $0.04225 |
| Garda Diversified Property Fund | GDF | $0.018 |
| Arena REIT | ARF | $0.0395 |
| SCA Property Group | SCP | $0.072 |
