No shortage of interest in retirement assets
Analysts say parties such as Britain's Henderson Group and Blackstone of the US, among others, have shown interest in assets being retired.
Speculation is mounting as the Australian real estate investment trust sector enters the reporting season for the first half of 2012-13.
Australand, itself the subject of takeover talk, starts the season in earnest on Thursday, with forecasts of strong figures compared with the previous corresponding period.
Its results are for the full year as its financial year ends in December.
Analysts at JPMorgan say the main item to look for in the results is the latest guidance. The broker estimates growth of 5.6 per cent in earnings per share.
"The bulk of this [forecast] is coming from higher net operating income from the commercial and industrial developments and the benefit of selling lower yielding assets including the Crest Hotel and 80 Alfred Street, Milsons Point," JPMorgan said.
"We are also awaiting any further comments on discussions with GPT or other interested parties, including the major shareholder CapitaLand."
Last month, CapitaLand's directors confirmed they were reviewing the stake in Australand.
Investors will also be looking for comments on the Australand residential business, amid expectations contracts on hand will be about $350 million - in line with last year and a relatively flat outlook for earnings before interest and tax this financial year.
Stockland's new chief executive, Mark Steinert, will release his maiden half-year result next Wednesday as the market speculates on his plans to sell assets.
There have been suggestions that one strategy could be to create a separately listed fund for the retirement assets.
However, given the quality of the properties, a sale in one line or individually to interested overseas investors could also occur at the right price.
Frequently Asked Questions about this Article…
The article says overseas superannuation funds and property specialists have been linked to potential interest in Stockland's retirement assets. Specific names mentioned by analysts include Britain's Henderson Group and US firm Blackstone as parties that have shown interest.
Market speculation centres on a potential restructure to unlock value. One suggested strategy is carving the retirement assets into a separately listed fund, but analysts also note that, given the quality of the properties, Stockland could sell the portfolio either in one line or individually to overseas investors if the price is right.
Stockland's new chief executive, Mark Steinert, was scheduled to release his first half-year result next Wednesday (as reported in the article). Investors were watching closely for comments on his plans, particularly any indication about selling or restructuring retirement assets.
The article notes takeover talk around Australand, with analysts mentioning potential discussions involving GPT and other interested parties. It also reports that CapitaLand, Australand's major shareholder, confirmed its directors were reviewing the stake in the company.
JPMorgan analysts said the main item to watch is the latest guidance from Australand. The broker expected around 5.6% growth in earnings per share, driven largely by higher net operating income from commercial and industrial developments and the benefit of selling lower‑yielding assets like the Crest Hotel and 80 Alfred Street, Milsons Point.
Investors were expecting Australand's residential contracts on hand to be about $350 million, roughly in line with the previous year. The article also suggests a relatively flat outlook for earnings before interest and tax for the financial year.
Speculation was rising as the Australian REIT sector entered the reporting season for the first half of 2012-13. That reporting season puts a spotlight on results, guidance and any strategic moves (like asset sales or carve‑outs), which can attract interest from domestic and overseas investors.
The article outlines two realistic options: creating a separately listed fund for the retirement assets or selling properties either as a single portfolio or individually. Analysts suggest overseas buyers could purchase at the right price given the assets' quality.
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