The company has acquired two assets for $380.5m, funded with a $273m equity raising. UBS increases the valuation, raising the target to $2.82 from $2.74, after incorporating the transaction but downgrades to Neutral from Buy on valuation grounds.
The company has acquired 8 Central Avenue Eveleigh, Sydney, and William Square, Northbridge, Western Australia.
UBS assesses the overall transaction is neutral or marginally dilutive to free funds from operations (FFO). The company expects FFO in FY20 to be 18.7c per security.
Sector: Real Estate.
Target price is $2.82.Current Price is $2.95. Difference: ($0.13) – (brackets indicate current price is over target). If CMA meets the UBS target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).