I have been very interested to read about the BWP takeover of Newmark (a smaller landlord holding 9 Bunnings Warehouse freeholds) this week as I am hoping it's the start of much needed consolidation in the space.
It's clearly a very different part of the property market along with NPR having a far worse gearing ratio (47% after the latest write down which they announced along with the merger) plus a significantly tighter WACR of 5.1% (I continue to believe that DXC already being all the way out at 6.3% gives us more valuation protection than the market gives us credit for along with being in a property class that is far more liquid..... Very few private investors can purchase a Bunnings warehouse which shrinks the pool of potential purchasers and made the NPR portfolio less liquid as a bad time).
The NPR discount is so wide that BWP have managed to pick them up in an all share takeover at a 43% premium (when factoring in the equivalent value of BWP shares being received) to the share price which is still a 17% NTA discount.
I don't necessarily want to see DXC get merged with a bigger REIT (WPR being the obvious candidate) however I'm hoping the increase corporate activity might be a catalyst for a bit of a re rating at the smaller end of the market and see us back up trading at around a 10 to 15% NTA discount which I'd consider to be fair value.
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- Consolidation of the small REITS begins
Consolidation of the small REITS begins
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Last
$2.70 |
Change
0.010(0.37%) |
Mkt cap ! $371.9M |
Open | High | Low | Value | Volume |
$2.69 | $2.70 | $2.67 | $599.3K | 223.1K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 10802 | $2.68 |
Sellers (Offers)
Price($) | Vol. | No. |
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$2.70 | 7082 | 1 |
View Market Depth
No. | Vol. | Price($) |
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1 | 10802 | 2.680 |
1 | 5072 | 2.660 |
1 | 4500 | 2.650 |
1 | 3500 | 2.640 |
1 | 10999 | 2.620 |
Price($) | Vol. | No. |
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2.700 | 7082 | 1 |
2.720 | 5072 | 1 |
2.740 | 1845 | 1 |
2.750 | 5072 | 1 |
2.760 | 1412 | 1 |
Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$2.69 |
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Change
0.010 ( 0.31 %) |
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Open | High | Low | Volume | ||
$2.68 | $2.70 | $2.67 | 19451 | ||
Last updated 15.54pm 03/05/2024 ? |
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