Abacus downgraded to Hold

The share price of Abacus Property Group has risen 26% over the past 12 months and 3% since Abacus: Interim result 2014 and SPP on 24 Mar 14 (Buy – $2.33). Abacus’s share price is currently 13 times earnings and a slight premium to the company’s $2.34 of net tangible assets. This is still fairly cheap relative to its peers but Abacus deserves a greater margin of safety due to the more speculative nature of its portfolio. Management expects full-year distributions of 16.75 cents per share, for a yield of 7.0%, and we’re downgrading to HOLD.

The share price of Abacus Property Group has risen 26% over the past 12 months and 3% since Abacus: Interim result 2014 and SPP on 24 Mar 14 (Buy – $2.33). Abacus’s share price is currently 13 times earnings and a slight premium to the company’s $2.34 of net tangible assets. This is still fairly cheap relative to its peers but Abacus deserves a greater margin of safety due to the more speculative nature of its portfolio. Management expects full-year distributions of 16.75 cents per share, for a yield of 7.0%, and we’re downgrading to HOLD.

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