Irongate Group acquired 153 Main Beach Road, Pinkenba in Queensland for circa $24.8m. Given an initial yield of 5.3%, Macquarie estimates the acquisition is 0.9% accretive to the group’s FY22 funds from operations.
Income exposure is attractive, notes the broker, with circa 20% of the tenant base government entities, about 24% foreign listed and circa 23% Australian corporates.
Outperform rating with the target rising slightly to $1.38 from $1.37.
Sector: Real Estate.
Target price is $1.38.Current Price is $1.27. Difference: $0.11 – (brackets indicate current price is over target). If IAP meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
