Aventus Group’s funds from operations were in line with the broker’s forecast and guidance. Underlying income growth was solid.
While management would not be drawn on the Home Consortium portfolio and mooted IPO process, it indicated it would be a positive for the market, the broker notes.
Gearing is stretched but the REIT has no plans for asset divestments or an equity raising.
On perceived valuation upside, the broker retains Outperform. Target falls to $2.85 from $2.90.
Sector: Real Estate.
Target price is $2.85.Current Price is $2.62. Difference: $0.23 – (brackets indicate current price is over target). If AVN meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).