To partially fund two acquisitions, Hotel Property Investments has completed an underwritten institutional placement raising $50m at $3.40 and has launched a share purchase plan to raise up to $10m.
The company will pay -$38.8m to its major tenant QVC for 249 gaming licences. FY22 DPS guidance of 20.5c remains unchanged. After allowing for the above changes, Morgans adjusts its target price to $3.56 from $3.58 and retains its Add rating.
Sector: Real Estate.
Target price is $3.56.Current Price is $3.44. Difference: $0.12 – (brackets indicate current price is over target). If HPI meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).