Credit Suisse calculates that roughly half of the December equity raising has been deployed and, from a cash flow perspective, a net outlay of $235m on investments will occur by the end of the financial year with further proceeds from asset sales to be received in FY22.
The broker makes minor earnings revisions to reflect the impact of known transactions and estimates for FY21-23 FFO per security increase by 1%. Second half distribution guidance of 8.5c is in line with existing estimates.
The broker downgrades to Neutral from Outperform, noting uncertainty exists over how quickly capital is redeployed. Target is raised to $3.21 from $3.04.
Sector: Real Estate.
Target price is $3.21.Current Price is $3.16. Difference: $0.05 – (brackets indicate current price is over target). If ABP meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
