Aventus Group’s funds from operations were smack on the broker’s forecast, albeit higher operating income was offset by higher interest costs. At 36%, gearing remains elevated, but the broker suggests this can be managed by retaining capital and reducing the dividend payout ratio.
The REIT collected 87% of rent in the June quarter, above peer average, and another 84% in July, underscoring a resilient tenant base with key tenants not subject to lockdowns. On a 7% plus yield and 35% forecast total shareholder return, Outperform retained. Target rises to $2.86 from $2.72.
Sector: Real Estate.
Target price is $2.86.Current Price is $2.31. Difference: $0.55 – (brackets indicate current price is over target). If AVN meets the Macquarie target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
