- Asset Plus announces sale of its Eastgate Shopping Centre in Christchurch at $43.45 million
- Property for Industry declares sturdy annual result FY20 with cash dividends of 7.70 cents per share.
- Westpac announces significant increase in its voting power in Pengana Private Equity Trust.
Finance, Industry, Mining, and Infrastructure are the pillars of every economy. Even a slight increase or decrease in their stock value plays an instrumental role in the market trends.
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Let us quickly go through news makers of the day as the stocks from these prime sectors continue to make the headlines.
Chatham Rock Phosphate Limited
The phosphate supplier, Chatham Rock Phosphate Limited (NZX:CRP) continues to focus on becoming the leading supplier of the mineral in NZ and the global agricultural sector.
As per the quarterly report released on 17 February 2021, the past few months have been good for CRP because of the adequate mix of the corporate initiatives and precedence given to ESG (Environmental, Social and Governance) credits by the Group.
CRP’s merger with Avenir Makatea (as announced in December, last year) to expand as a sustainable and environmentally friendly group is emerging out to be a successful venture and is witnessing an increase in the number of its investors.
The Group aims at creating enhanced value for its shareholders and has submitted the 2nd-second application to the New Zealand Environmental Protection Authority for a Marine Consent. With this permit, the Group is confident of enhancing the intrinsic value of the Company than the existing one.
Upon getting the Marine Consent, CRP would be the custodian of reactive phosphate rock and will become closer to the major Asian markets. With almost negligible developmental costs, the Company’s inherent value will surely enhance in the future.
On 22 February 2021, at the time of market close, CRP was at $0.155 up by 30.25%.
Asset Plus Limited
As a leading investment Company, Asset Plus Limited (NZX:APL), has announced on 22 February 2021 the unconditional sale of its Eastgate Shopping Centre in Christchurch, a non-core asset, at a price of $43.45 million.
The following are its highlights:
- The deal is made with the NZ based private investor and is closed at a price of $43.45 million. The date of settlement being 22 August 2021 (with 20 working days’ notice to be given); and 22 February 2022, whichever is earlier.
- Deposits of $1.5 million payable by the Purchaser will be released immediately to APL.
- Adjusted funds from operations (AFFO) are expected to go down by 0.45 cents per share on an annualized basis, and Gearing will decrease to 0%. This shrinking of Gearing will create additional balance sheet capability. Further, a reduction from $130 million to $90 million is expected in the total banking facility limits following the sale.
- The sale proceeds will be directed towards debt repayment and support development programmes.
- The Board intends to pay a constant dividend to its investors and is dependent on quarterly review.
On 22 February 2021, at the time of close, APL traded at $0.365 up by 4.29%.
Property for Industry Limited
New Zealand’s Property for Industry Limited (NZX:PFI) focusses on investing and managing industrial properties.
Source: Copyright © 2021 Kalkine Media Pty Ltd
On 22 February 2021, PFI has declared strong annual results for the period ended 31 December 2020:
- During the period, the Company’s annual PAT stood at $113.5 million, while FFO earnings increased to 9.67 cents per share from PY up by 6.6%
- On dividend front, dividend/distribution for the amount of 7.70 cents per share for FY20 was announced
- Net tangible assets increased to 220.9 cents per share as c was compared to 205.5 cents per share of pcp, up by 7.5%. Further, a Liquidity of about $ 100 million is available, and 30% Gearing has been recorded.
- The financials show industrial property investments of $183 million and non-core divestment of $158 million since the start of 2019, indicating notable strategic progress.
- PFI saw a significant growth of $1,631.5 million from $72.5 million in its property portfolio documented from independent valuations.
- On the outlook front, the Company assured of continued strategic acquisitions of industrial properties in 2021. PFL emphasised that COVID-19 may have hampered the Group's progress, but PFL remains focused on meeting the needs of its investors and stakeholders.
On 22 February 2021, at the time of close, PFI traded at $2.870 down by 0.35%.
Metro Performance Glass Limited
NZ’s leading glass supplier, Metro Performance Glass Limited (NZX:MPG), has released an update regarding trading and guidance on the financials for FY21 that are anticipated to be published on 21 May 2021.
The Company stated that due to the pandemic, there was a slight jolt to the business, but the Government stimulus package and low-interest rates, provided a kick to the Group's business. Metroglass foresees Group EBIT to vary between $16.5 million to $ 18 million as compared to $21.8 million in FY20.
Further, an update will be provided in May 2021 on the Group’s capital allocation policy and timing of the resumption of dividends.
On 22 February 2021, at the time of close, MPG traded at $0.425 down by 4.49%.
Westpac Banking Corporation
One of New Zealand’s leading banks, Westpac Banking Corporation (NZX:WBC) and its associated entities announced on 22 February 2021 that there has been a substantial change in the holding in Pengana Private Equity Trust. Westpac increased its voting power from previously held 8.99% to the current 10.1% w.e.f. 17 February 2021.
On 22 February 2021, at the time of close, WBC traded at $25.650 down by 0.47%.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)