Listed A-REITs

Editorials

Listed Property Editorial, December 2009: 2009: A clean-up act after the carnage 11/01/2010 10:35
After racing downhill for all of 2008, the listed property sector finally hit a bottom in March 2009. The S&P/ASX 200 index declined from a peak of 2,575 in February 2007 to 546 in March 2009, a decline of around 79%. The decline was mainly dr... + more After racing downhill for all of 2008, the listed property sector finally hit a bottom in March 2009. The S&P/ASX 200 index declined from a peak of 2,575 in February 2007 to 546 in March 2009, a decline of around 79%. The decline was mainly driven by a complete meltdown of the global financial system and the consequent credit squeeze that impacted every economy globally. As we approach the end of 2009, we have seen the crash, the carnage and the clean-up act that invariably follows. - less

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Equities Research

Charter Hall Group (CHC) MQG transaction could prove transformational 02/02/2010 10:03
CHC confirmed that it is in discussions with Macquarie Bank (MQG) regarding the potential acquisition of parts of MQG's real estate funds management platform (Including MOF & MCW). The potential acquisition is incomplete and subject... + more CHC confirmed that it is in discussions with Macquarie Bank (MQG) regarding the potential acquisition of parts of MQG's real estate funds management platform (Including MOF & MCW). The potential acquisition is incomplete and subject to a number of conditions and there is no certainty that any transaction will proceed. CHC remains one of a few medium sized A-REITs to surprise on the upside which appears factored into its share price. We maintain a NEUTRAL view. - less

Challenger Diversified Property Group (CDI) Cost of borrowings and asset value review 18/01/2010 15:01
As part of our cost of borrowings review (margins), we have revised the effects of CDI's expiring facilities, applying margins on new facilities at around 250bps over base rates. The differ... + more As part of our cost of borrowings review (margins), we have revised the effects of CDI's expiring facilities, applying margins on new facilities at around 250bps over base rates. The difference is significant when compared to CDI's current average margin cost of around 50bps. Furthermore, we have reviewed our expectations on asset carrying values for the upcoming 1H10 results. - less

Abacus Property Group (ABP) Pricing still looking fair 12/01/2010 18:14
On 9 December 2009, ABP issued 228M securities in an institutional placement at $0.40 per share, netting proceeds of $91.4M. Funds were used to further reduce gearing (now ~23%). Furthermore, ABP is continuing to work its way... + more On 9 December 2009, ABP issued 228M securities in an institutional placement at $0.40 per share, netting proceeds of $91.4M. Funds were used to further reduce gearing (now ~23%). Furthermore, ABP is continuing to work its way through recapitalisation strategies for its suite of funds, which include strong support from ABP head-stock. We have therefore revised our medium- to long-term forecasts in that division, which currently generates ~12% EBIT. - less

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