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General Information

Investa Office Fund
IOF
http://www.investa.com.au/IOF
Diversified Real Estate Investment Trusts
2,358
614

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$3.84 $3.86 $3.87 $3.80 $3.81 1630773 $0.03 ( 0.79% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Buy
23/04/2015
3

Company Overview

Business Description
The Investa Office Fund (IOF) has been formed by the stapling of the units in two Australian registered schemes, Armstrong Jones Office Fund and Prime Credit Property Trust. The principal activity of the Trusts is investment in real estate. IOF owns an internationally diversified portfolio of office properties, many leased to government and blue chip tenants.
Strategy Analysis
IOF's main focus is exiting offshore markets and reinvesting in Australia. Most offshore assets have sold. Recent acquisitions include stakes in two high quality domestic properties, the Deutsche Bank building in Sydney and the Telstra Headquarters in Melbourne. IOF is also very focused on leasing up vacant and soon-to-expire space. This will be difficult in Europe and will require major incentives to attract tenants, which is preferable to having empty space. IOF generally looks to invest in CBD office buildings and intends selling non-core suburban offices. It has switched its strategy from increasing diversification by investing in overseas markets to now selling foreign assets and focusing on Australia. Investa Office Fund reported NPAT down 68.8% to $53.7m for the half-year ended 31 December 2012. Revenues from ordinary activities were $100.7m, up 9.7% from the same period last year. Basic and Diluted EPS was 8.7 cents compared to 26.2 cents last year. Net operating cash flow was $71.1m compared to $76.2m last year. The interim dividend declared was 8.75 cents compared with 7.80 cents last year.

Financial Summary

Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 146.9 23.9 2.8% 16.0 19.9 5.2% 0.0%
2015 F 143.0 23.3 1.7% 16.5 19.3 5.0% 0.0%
2014 A 140.6 22.9 2.2% 13.6 18.5 5.9% 0.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
BWP Trust (BWP) $1,934M -0.2727 0.0606 0.0232 20.0533 18.9070 18.4776 4.89% 5.28% 5.41%
Dexus Property (DXS) $6,683M -0.2674 0.0618 0.0345 15.4555 14.5562 14.0705 5.09% 5.54% 5.83%
Goodman Gp (GMG) $10,956M 0.0702 0.0752 0.0784 18.2269 16.9515 15.7193 3.31% 3.54% 3.83%
Investa Office Fund (IOF) $2,340M 0.4908 -0.3045 0.0326 11.3630 16.3379 15.8223 4.86% 5.06% 5.24%
Novion Property (NVN) $7,601M -0.0071 0.1070 0.0196 19.8713 17.9506 17.6051 5.51% 5.59% 5.69%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 1.34 15.20 1.15 10.00
Market 0.91 16.80 1.31 2.35
Sector 1.45 15.40 1.21 2.61

Directors

Name Position Start Date
Mr Campbell Hanan Alternate Director 01/07/2013
Mr Jonathan Callaghan Joint Company Secretary, Executive Director 20/10/2014
Mrs Deborah R Page Non-Executive Chairman 07/07/2011
Dr Peter Dodd Non-Executive Director 07/07/2011
Mr Scott MacDonald Non-Executive Director 07/07/2011
Mr Peter Rowe Non-Executive Director 07/07/2011

Management

Name Position
Dorothy Mioduszewska Joint Company Secretary

Substantial Shareholders

Holding Name
53,002,140 (8.63%) Mitsubishi UFJ Financial Group INC
52,318,530 (8.52%) Morgan Stanley Investment Management Ltd
44,075,809 (7.18%) CBRE Clarion Securities LLC
38,639,409 (6.29%) Investa Office Management Holdings Pty Ltd
31,448,324 (5.12%) AMP Limited
30,746,331 (5.01%) Vinva Investment Management

Calendar of Events

Date Event
18 February 2016 Report (Interim)
18 September 2015 Report (Annual)
18 August 2015 Report (Prelim)
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