Abacus Property Group’s first half did not come as a surprise given the company had provided guidance.
Funds from operations were down -14% versus last year to 9.06c versus Credit Suisse’s estimated 9c. The decline over the last year was due to the winding-up of the development business.
The broker is of the view the core portfolio looks heatlhy and while the company offered no guidance, Credit Suisse believes redeployment of investment capacity is a key swing factor in the group’s earnings outlook.
Outperform maintained. Target falls to $3.04 from $3.09.
Sector: Real Estate.
Target price is $3.04.Current Price is $2.69. Difference: $0.35 – (brackets indicate current price is over target). If ABP meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
