Main risk is a WALE of 3 years, so if you think WFH impact is continuing to play out and companies will need less space in the future, this is clearly a risk. ECF has seemed to be successful in signing new leases in the last 12 months though, so thats how I've gotten comfortable with that risk.
Beyond that any REIT is an interest rate proxy, if you think rates will continue to increase, REITS will probably do poorly.
Some may question the book value of the buildings, the company recently had a sale of 2 buildings agreed at book value, but this ultimately did not got ahead when the buyer couldn't secure financing. That being said, we are trading at a significant discount to NAV so there is some cushion there.
Other risks would be debt load (currently towards the top end of their range), and need for upcoming CAPEX on their business, particularly if the market gets more competitive as companies need less space
Ann: Forecast Q2FY24 Result, page-6
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Last
66.0¢ |
Change
-0.005(0.75%) |
Mkt cap ! $208.9M | |||
| Open | High | Low | Value | Volume |
| 65.5¢ | 66.0¢ | 65.0¢ | $165.0K | 250.8K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 20000 | 65.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 66.5¢ | 4739 | 1 |
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| Last trade - 16.10pm 06/08/2024 (20 minute delay) ? |
| ECF (ASX) Chart |