Morgans downgrades APN Industria REIT’s rating to a Hold from Add on recent share price strength. The price target is increased to $3.28 from $3.17. Draft valuations have increased for 17 of 23 properties by 11.9% and the average cap rate has tightened by 51bps to 5.83%.
The REIT’s portfolio is valued at $1.05bn across 37 assets (circa 60% industrial assets/40% business park assets). Occupancy at December was 97% with the industrial assets 100% occupied and business park assets at 80%.
Sector: Real Estate.
Target price is $3.28.Current Price is $3.20. Difference: $0.08 – (brackets indicate current price is over target). If ADI meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
