Latest with Real Estate stocks – CMW, GOZ, VCX

  • Jan 03, 2020 AEDT
  • Team Kalkine
Latest with Real Estate stocks – CMW, GOZ, VCX

Increasing prices of property in Australia, once again became the subject of debate recently in the month of November 2019. An annual outlook was projected stating that the housing cost would increase by approximately 15 per cent in Melbourne and Sydney in 2020. In the initial phase of 2019, the prices of Melbourne and Sydney declined by two digits from their 2017 highpoint figures. The sales within the sector was recorded at a 21-year low, and it was predicted that the economy could have a serious impact.

The outlook in real estate sector has changed drastically in the two biggest cities of Australia i.e. Melbourne and Sydney. Both the cities have seen the dramatic recovery that has surprised many banking sector economists and the Reserve bank of Australia.

On 3 January 2020, the S&P/ASX 200 Real Estate (Sector) last traded at 3,716.1 points, with a rise of 0.64 per cent compared to the last close. Also, the same day, Australian benchmark index S&P/ASX 200 last traded at 6,733.5 points, with an increase of 0.6 per cent from its previous close.

 

Cromwell Property Group (ASX: CMW)

Cromwell Property Group is a real estate investment manager. Cromwell invests in commercial property and has more than 420 staffs spread in 15 nations throughout New Zealand, Australia and Europe.

Dividend Distribution

On 23 December 2019, the company has declared a dividend of $0.018 per fully paid ordinary securities related to a period of 3 months, ended 31 December 2019. The dividend is scheduled to be paid by 21 February 2020.

Change of Director’s Interest

On 20 December 2019, the company announced the change in one of its directors Interest namely Paul Louis Weightman, with effect from 13 December 2019. The number of Securities (Direct) held by the director, presently are 10,398,325 stapled securities and 6,184,116 performance rights. 

Retirement of Non-executive Director 

On 28 November 2019, the company announced the retirement of Non-executive Director Michelle McKellar after 12 years of exemplary service, effective from 2019 Annual General Meeting of the Cromwell Corporation Limited.

Michelle McKellar has retired as a director of Cromwell Property Securities Limited and Cromwell Corporation Limited. He joined the company’s board in 2007 and was one of the active members of the Board and its Committees.

FY19 Financial Performance of the company can be viewed here

Stock Performance 

The stock of CMW last traded at $1.180 on ASX, as on 3 January 2020, with a rise of 1.288 per cent from its previous close. The company has approximately 2.61 billion outstanding shares and a market cap of $3.04 billion. CMW’s 52 weeks low and high value of the stock is at $0.980 and $1.345 respectively. The stock has generated a negative return of 0.85 per cent in the last six months and a positive return of 2.92 per cent on year to date basis.

 

Growthpoint Properties Australia (ASX: GOZ)

Growthpoint Properties Australia is an Australia Stock Exchange listed REIT entity, which invests in Australian property in the industrial and retail sectors. The company’s objective is to provide the investors with positive income returns and long-term appreciation on capital.

GOZ entered into a lease agreement with the NSW Police Force

On 23 December 2019, the company announced that it entered into a new twenty-five years of lease agreement with the New South Wales Police Force (NSWPF) starting from 1 January 2020.

NSWPF is the company’s largest single tenant with approximately 8 per cent of company’s income being derived from their lease. Under the new agreement, the initial annual rent will be of approximately $21.1 million, and the rental income will continue to escalate by 3.5 per cent per annum.

As a part of the new agreement, the company entered a Refurbishment Works Deed with NSWPF, and the property’s value is expected to increase to $420 million, 19 per cent higher than its June 2019. The company’s FY20 guidance is not affected by the new lease agreement.

 

Dividend Distribution

On 18 December 2019, the company declared a dividend of $0.118 per fully paid ordinary security related to a period of 6 months, ended 31 December 2019. The dividend is scheduled to be paid by 28 February 2020.

Results of Annual General Meeting

On 21 November 2019, the company declared the results of the Annual General Meeting. Below are the resolutions which were passed during the AGM:

  • Resolution 2  -   Remuneration Report – Company only
  • Resolution 3A - Re-election of Director - Mr Estienne de Klerk - Company only
  • Resolution 3B - Re-election of Director - Mr Francois Marais - Company only
  • Resolution 4 - Approval of FY19 Transitional LTI Grant of Performance Rights to Managing Director - Company and Trust
  • Resolution 5 - Approval of FY20 Forward-looking LTI Grant of Performance Rights to Managing Director - Company and Trust
  • Resolution 6 - Approval of FY19 STI Grant of Performance Rights to Managing Director - Company and Trust
  • Resolution 7 - Appointment of Ernst & Young as Auditor of the Company - Company only
  • Resolution 8 - Ratification of Issue of Stapled Securities - Company and Trust

To know the acquisition of a logistics office / Warehouse by the company click Here

Stock Performance of Growthpoint Properties Australia 

The stock of GOZ last at $4.21, on 3 January 2020, rising by 0.959 per cent from its previous close. The company has approximately 771.78 million outstanding shares and a market cap of $3.22 billion. The GOZ’s, 52 weeks low and high value of the stock is at $3.630 and $4.520 respectively. The stock has generated a negative return of -3.25 per cent in the last six months and a positive return of 1.65 per cent on year to date basis.

Vicinity Centres (ASX: VCX) 

The company is a leading retail property group. VCX has assets under management of $26 billion in retail across 63 shopping centres as of 30 June 2019.

VCX Divested Lennox Village and 50 per cent Interest in Uni Hill Factory Outlets

On 23 December 2019, the company announced that it would acquire 50 per cent interest in Uni Hill Factory Outlets in Victoria from MAB Corporation for $67.8 million. MAB Corporation will hold a 50% stake in the asset under discussion.

VCX also notified on selling off its 50 per cent stake in Lennox Village in NSW, at a book value of $31.5 million as of 30 June 2019.

The company’s CEO and Managing Director said:

The proposed acquisition price of Uni Hill reflects a capitalisation rate of 6.5 per cent, and the acquisition is subject to ACCC approval.

Change of Director’s Interest

On 11 December 2019, the company announced the change of one of its director’s interest named Grant Lewis Kelley with effect from 10 December 2019. The director acquired 762,941 Performance Rights (as per FY2020 LTIP).

To know the FY20 guidance and FY 2019 financial performance of the company can be viewed Here

Stock Performance of Cromwell Property Group 

The stock of VCX last traded higher at $2.510 on 3 January 2020, with a rise of 0.803 per cent from its previous close. The company has approximately 3.76 billion outstanding shares and a market cap of $9.36 billion. VCX’s 52 weeks low and high value of the stock is at $2.415 and $2.720 respectively. The stock has generated a negative return of 4.23 per cent in the last three months.


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