National Storage REIT
Boosting capital position: National Storage REIT (ASX: NSR) lately reported of successfully raising $175 million and this included a $50 million Institutional Placement along with a $125 million pro-rata accelerated non-renounceable Entitlement Offer. NSR intends to use the funds for many purposes. For instance, the group will use a portion for strengthening its balance sheet. This can be achieved by lowering gearing levels from 38% to 30%. Some portion might be allocated for longer-term funding flexibility to cater to consolidation strategy. NSR will also use funds for growth opportunities identified through strategic initiatives. Meanwhile, NSR reported 12.5% growth in the Underlying earnings to $51.4 million, at the back of healthy storage revenue growth of 18% ($124.6 million) for FY18. NSR has settled $155 million in quality assets and uplifted total assets under management by 23%. It has comfortably maintained the position as leading self-storage, owner operator in Australasia. The final distribution declared by the group was of the order of 4.9 cps bringing total FY18 distribution to 9.6 cps; and for FY 19, NSR expects EPS to be in the range of 9.6 to 9.9 cps and FY19 underlying earnings to be in the range of $62.5 to $64.5million. NSR stock delivered returns of over 8.8% in this year to date and has a dividend yield of 5.68%.
FY 18 Financial Performance (Source: Company Reports)
Rural Funds Group
Expanding properties: Rural Funds Group (ASX: RFF) has lately bagged a contract for the acquisition of ‘Dyamberin’, a 1728 hectare cattle property in the New England region of New South Wales. This has been done for purchase price of over $13 million and was expected to settle in October this year. The company has also contracted to acquire two Queensland properties, Cerberus and Mayneland. On the other hand, in FY 18, the company has delivered 26% growth in Adjusted funds from operations (AFFO) per unit to 12.7 cents. Earnings grew 29% to $44.0m in 2018. The company expects FY 19 AFFO per unit to increase by 4% to 13.2 cents on FY18 and FY19 forecast distributions per unit to be 10.43 cents, which is up 4% on FY18. RFF stock has risen 7.97% in the last three months and has 4.8% dividend yield.
WAM Capital Limited
Succeeded with the takeover offer for Wealth Defender Equities Limited: WAM Capital Limited (ASX: WAM), has already succeeded with the takeover offer for Wealth Defender Equities Limited (WDE). Now the company plans to compulsorily acquire the remaining WDE shares that it does not hold. WAM will dispatch the compulsory acquisition notices to all WDE shareholders who have not accepted WAM Capital’s offer. The compulsory acquisition will be on the same terms as the offer, which is 1 WAM Capital share for every 2.5512 WDE shares. As per the ASX Listing Rules, WDE will be suspended and removed from the ASX in due course. Moreover, WDE shareholders who had accepted WAM’s takeover offer before 26 October 2018 were scheduled to get WAM shares on 2 November 2018 and will be paid the fully franked WAM final dividend of 7.75 cents on 26 November 2018. WAM has declared that the Offer and the contract formed are free from Defeating conditions and are now Unconditional. WAM stock has fallen 7% in the last four weeks placing the stock at a lucrative dividend yield of 6.6%.
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