The company has announced the acquisition of two assets for $436m, to be funded via a $215m entitlement issue at $2.32 per security plus $250m in debt.
The company expects to pay a fourth quarter distribution of around 4c, bringing the total FY17 distribution to around 15.9c.
Morgans believes the company is well placed to navigate challenges in the broader retail sector and adjusts forecasts for the capital raising and acquisitions as well as updating on preliminary revaluations on the existing portfolio.
Rating is downgraded to Hold from Add. Target is reduced to $2.45 from $2.53.
Sector: Real Estate.
Target price is $2.45.Current Price is $2.41. Difference: $0.04 – (brackets indicate current price is over target). If AVN meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).