First half results were ahead of Morgan Stanley, driven by development NOI and lower costs.
Developments of $68m on a 6.8% yield on cost during the first half, plus the targeted completion of 6 of the 7 developments in the pipeline support the broker’s forecast for 7% growth in FY18 DPS.
Overweight and target raised to $2.50 from $2.40. Industry view: Cautious.
Sector: Real Estate.
Target price is $2.50.Current Price is $2.25. Difference: $0.25 – (brackets indicate current price is over target). If ARF meets the Morgan Stanley target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).