Geographical diversity
It invests in and manages commercial and industrial properties in Australia, New Zealand, the UK, North America, Europe and Asia. The geographical diversification protects it from cyclical downturns involving most or all of its properties at the same time. It can also acquire properties in a region when it is depressed, and get more return when they recover later."
Financial strength
Its return on equity is 9.89%, which is toward the top end when compared to other REITs such as DEXUS Property Group (ASX: DXS) at 9.86%, GPT Group (ASX: GPT) at 8.34%, orLend Lease Group (ASX: LLC) at 12.79%.
Its debt levels are low, with a gross gearing of 38.55% and at the end of 30 June 2013, its $2.56 billion in long-term debt was only 4.53 times its $566.4 million NPAT, so borrowings are at a manageable level. Real estate investment commonly involves high gearing for borrowings.
It has $24 billion of assets under management and it generated $270 million in property income in 2013. In addition to its net income from investment sales, its FY 2014 full-year earnings guidance is an operating profit of $594 million. That works out to be a 6% rise in operating earnings per security to 34.3 cents per share (cps) and a 7% increase to distributions of 20.7 cps.
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