Funds from operations growth of 8.2% year on year for Abacus Property Group was better than Credit Suisse expected, although the dividend was in line. An improved performance from Commercial was as expected but Storage outperformed.
The broker estimates there is $200-$250m worth of remaining “non-core” assets that provide scope for asset recycling, and forecasts modest headline FFO growth over the next few years, with a view the REIT can deliver 2-3%pa dividend growth.
Neutral retained, target rises to $3.51 from $3.48.
Sector: Real Estate.
Target price is $3.51.Current Price is $3.53. Difference: ($0.02) – (brackets indicate current price is over target). If ABP meets the Credit Suisse target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
