Two important mid-cap companies Vicinity Centres (ASX: VCX) and Magellan Financial Group Limited (ASX: MFG), with decent funds under management (FUM), and dividend yields (DY). Let’s have a look at the recent updates of these two companies.
Vicinity Centres (ASX: VCX)
Vicinity Centres (ASX: VCX) has an engagement in the property investment, property management, property development, leasing and funds management. Today on June 7, 2019, Vicinity Centres announced that 35 of its 62 directly-owned retail properties which are 57% by value are in the final stages of being independently valued and the remaining properties are being internally valued. This has been under the decline for the overall portfolio of 1.3% or $202 Mn for the six months to June 30, 2019. The Company will confirm its June valuations in its 2019 annual results on August 14, 2019, subject to the final audit.
Vicinity’s Managing Director and Chief Executive Officer, Mr. Grant Kelley, stated that the expected valuation declined by 1.3%, and can be attributed to Western Australian and pre-development centres. Their flagship portfolios, i.e. Chadstone, Premium CBD assets and DFO (outlet) centres have continued to outperform, which demonstrates resilience and reinforces their strategy to focus on market-leading destinations.
Mr. Kelley further stated that their flagship portfolio is expected to increase in value by $86 Mn or 1.2% in the period driven by income growth with unchanged capitalisation rates on an individual asset basis. VCX estimated valuations earlier than June 30 to facilitate an opportunity to issue bonds in debt capital markets. A potential bond issuance will extend their weighted average debt maturity and decrease their weighting to bank debt. They believe that the recent material fall in interest rates will enable them to take advantage of lower borrowing costs.
In a previous update, VCX announced the appointment of Mr. Nicholas (Nick) Schiffer as Chief Financial Officer of the company. Mr. Schiffer is expected to commence in the CFO role in September 2019 and will report to the CEO and MD, Mr. Grant Kelley. Mr. Schiffer is currently working with Spark Infrastructure (ASX: SKI), which is a top 100 ASX listed company by market capitalisation and owner of leading essential service infrastructure businesses.
On the stock information front
At the time of writing (on June 7, 2019, AEST 1:58 PM) the stock of Vicinity Centres was trading at $2.595 down 0.192% with the market capitalisation of ~$9.81 Bn. Its current PE multiple is at 14.36x, and its last EPS was noted at 0.181 AUD. Its annual dividend yield has been noted at 6.21%. Today, it made day’s high at $2.610 and day’s low at $2.580 with an average daily volume of 2,840,926. Its 52 weeks high was at $2.835 and 52 weeks low at $2.415, with an average volume of 11,335,231 (yearly). Its absolute return for the past 1 year, 6 months, and 3 months are -3.35%, -5.80%, and 2.77% respectively.
Magellan Financial Group Limited (ASX: MFG)
Magellan Financial Group Limited (ASX: MFG) has an engagement in funds management with the objective of offering international investment funds to high net worth and retail investors in Australia and New Zealand, and institutional investors globally. Today on June 7, 2019, Magellan Financial Group published its May 2019 funds under management (FUM) update. Its total FUM at the end of May 31, 2019, was reported at $82,759 Mn as compared to $83,232 Mn at the end of April 30, 2019. The retail and institutional investors FUM at the end of May 31, 2019, were reported at $21,973 Mn and $60,786 Mn, respectively. As per geographical division global equities, infrastructure equities, and Australian equities FUM were reported at $60,711 Mn, $14,606 Mn, and $7,442 Mn respectively. In May, Magellan experienced net inflows of $264 Mn, which included net retail inflows of $146 Mn and net institutional inflows of $118 Mn.
In another update, MFG announced the appointment of Mr Hamish McLennan as Deputy Chairman of Magellan, and Mr Robert Fraser as Chairman of Magellan Asset Management Limited, Responsible Entity and main operating subsidiary of Magellan, effective from June 5, 2019. Mr. Hamish McLennan has extensive experience both in an executive capacity and as a chairman of public companies, and Mr. Robert Fraser is currently Chairman of the Audit and Risk Committee and has an extensive understanding of Magellan’s operations.
In its H1FY19 financial result, MFG reported a 35% increase in its average funds under management from $53.6 Bn in H1FY18 to $72.1 Bn in H1FY19. Its net profit after tax increased by 225% from $53.6 Mn in H1FY18 to $173.5 Mn in H1FY19, whereas its adjusted net profit after tax increased by 62% to $109.2 Mn in H1FY18 to $176.3 Mn in H1FY19. Its diluted earnings per share and adjusted diluted earnings per share increased by 217% from 31.0 cps in H1FY18 to 98.2 cps in H1FY19 and 57% from 63.4 cps in H1FY18 to 99.8 cps in H1FY19, respectively. Its interim dividend was reported at 73.8 cps in H1FY19, which is an increase of 66% from 44.5 cps in H1FY18.
On the stock information front
At the time of writing (on June 7, 2019, AEST 1:58 PM) the stock of Vicinity Centres was trading at $45.44 up 3.721% with the market capitalisation of ~$7.76 Bn. Its current PE multiple is at 23.16x, and its last EPS was noted at 1.892 AUD. Its annual dividend yield has been noted at 3.74%. Today, it made day’s high at $45.780 and day’s low at $44.060 with an average daily volume of 342,854. Its 52 weeks high was at $45.780 and 52 weeks low at $21.800, with an average volume of 561,370 (yearly). Its absolute return for the past 1 year, 6 months, and 3 months are 95.67%, 61.78%, and 23.03% respectively.
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