APN Latest Newsletter September

Value in the AREIT sector – Part 2. Don’t Discount Discounted Cash Flow 

The Australian Real Estate Investment Trust (AREIT) full year reporting season was completed last month, delivering overall strong results with individual trusts either meeting or exceeding the earnings guidance released at half year.

As a historically low interest rate environment continued to underpin the “lower-for-longer” thesis, the stable high yield nature of AREITs supported the sector’s popularity with investors as the search for yield continued. This is reflected in the sector’s 12 month total return to 30 June 2015 of 20.20%.

Exceptional earnings growth, positive asset valuation uplifts and decreasing debt costs dominated  headlines. A level of improvement in underlying property fundamentals in major retail and commercial markets was also encouraging, which suggests the relative strength of the AREIT sector can continue into FY16.

In this month’s Hot Topic , we examine the trends from the FY15 reporting season and provide a snapshot of the key Australian property sectors.

In this edition:

• AREIT FY15 reporting season insights and highlights
• Value in the AREIT sector – Part 2. Don’t Discount Discounted Cash Flow
• Webinar – Experience the growth story with the APN Asian REIT Fund
• Access mFund using Bell Direct and get your first transaction free
• APN Property Group reports net profit of  $12.6m, up 69% from the prior comparative period
• Generation Healthcare REIT reports a 66% increase in its FY15 underlying net operating income
• Industria REIT reports full year 2015 Distribution per Security of 16.20 cents and increase in NTA to $2.02 per Security
• Investment opportunities – register your interest
• Fund commentaries
• Recently published