Morgans notes Home Consortium had an active end to 2020 after spinning off the HomeCo Daily Needs REIT ((HDN)), new acquisitions and a capital raising.
The broker expects 2021 to start with the execution of the Health, Wellness and Government REIT, which currently has $400m in assets under management (AUM) currently and is expected to grow further.
The company is quickly evolving into a capital light model with income sourced via rental income, distributions, fee income and developments, explains the analyst.
The interim result is due on 24 February.
The Add rating is unchanged and the target price increased to $4.27 from $3.60.
Sector: Real Estate.
Target price is $4.27.Current Price is $3.98. Difference: $0.29 – (brackets indicate current price is over target). If HMC meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
