Morgans believes Home Consortium is advancing on its strategy to transition to a capital light fund manager. Asset recycling continues following the disposal of a portfolio of seven large format retail assets to HomeCo Daily Needs REIT ((HDN)).
Also, $133.2m of medical and childcare related assets will be acquired to seed to HealthCo, which is on track to be established in the first half of FY22. FY21 guidance is unchanged.
Morgans believes there is a high probability of further dealflow/new funds launched in the near/medium term, which provides upside risk to forecasts. The Add rating is maintained and the target lifts to $5.01 from $4.17.
Sector: Real Estate.
Target price is $5.01.Current Price is $4.78. Difference: $0.23 – (brackets indicate current price is over target). If HMC meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).