ABP - Credit Suisse rates the stock as Neutral
PUBLISHED
2021-08-20
Content
Abacus Property Group's FY21 result was in line with Credit Suisse's expectations with funds from operations (FFO) up 9.5% to $136.4m.
Growth over the prior was achieved in both the commercial portfolio and the storage portfolio, aided by higher occupancy and like-for-like income growth.
Due to a stronger-than-expected contribution from the storage portfolio, FY21 dividends per share (DPS) was upgraded to 17.5¢.
No firm FY22 guidance was provided in light of covid uncertainty but the broker is forecasting modest growth due to the impact of recently announced acquisitions as well as a lower cost of debt.
Neutral rating is retained and the target is raised to $3.36 from $3.21.
Sector: Real Estate.
Target price is $3.36.Current Price is $3.33. Difference: $0.03 - (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).