CMA - UBS rates the stock as Buy
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UBS updates numbers post the acquisition of two assets for $128m and a $60m equity raising. The main benefits of the transaction include diversifying individual tenant risk, increasing liquidity and improving the portfolio quality.
The company will buy a 50% interest in 201 Pacific Highway St Leonards and 100% of 77 Market St Wollongong.
The main drawbacks, in the broker's opinion, are the acquisition price and the risk around the company's ability to find a buyer for the other 50% of the St Leonards property.
Price target is $2.60. Buy rating retained.
Sector: Real Estate.
Target price is $2.60.Current Price is $2.41. Difference: $0.19 - (brackets indicate current price is over target). If CMA meets the UBS target it will return approximately 7% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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