Pat Barrett

At the Bank of America Merrill Lynch AREIT conference in Sydney, panels discussed how to keep the mall relevant, the strength of the Sydney commercial market, policy impacts upon the residential sector and capital flows. Meanwhile, Myer released their revised strategy, offering insights into the department store sector. The key... Show More

Pat Barrett

It was a solid reporting season for AREITs, with improvement in most key metrics and positive outlooks. The good news was the continuing strong demand for quality real estate, that saw asset values / NTA's rise, plus the strength of the Sydney and Melbourne office markets. A challenging retail outlook... Show More

Pat Barrett

The retail sector has been impacted by a combination of cyclical and anticipated structural issues. Cyclically, retail sales have been under pressure due to higher living expenses (higher debt costs and utilities) which have grown faster than wages. Structurally the market is anticipating much weaker conditions given the arrival of... Show More

Pat Barrett

The voluntary administration of Channel 10 is tangible evidence of the evolution of the media sector, with the station’s reliance on the younger demographic challenged by social media, YouTube, online streaming and pay TV. The days of a family sitting in the same room to watch TV are long gone,... Show More

Pat Barrett

This thematic of retail being on the nose is picking up momentum with another three reports in the past week documenting the headwinds for retail tenants and in turn landlords. We do agree with the general thesis and that's why we went underweight the retail sector last year but where... Show More

Pat Barrett

This week I attended a tour of Sydney residential projects stretching from Bondi to Badgerys Creek. The Moreton project at Bondi highlights everything that is great about Mirvac's residential business. Firstly to gain control of the site in Bondi, and secondly the quality of the product. Mirvac launched this project... Show More

Pat Barrett

It's clear that the broader market appreciated the stability of real estate earnings during reporting season, with the AREIT sector delivering a +4.1% return over February vs +2.3% for the ASX 200. This week we "mopped up" our affairs with a series of management meetings. It was a good reporting... Show More

Pat Barrett

...sure, there's no +13% returns on results day like NIB Holdings, but there's also none of the wild swings we've seen with Worley Parsons, or the -36% MTD falls for software group CSG. The REIT results display reliable income growth due to the contractual nature of the rental income. REITs... Show More

Pat Barrett

With REITs earnings largely derived from contractual rental income, it's no surprise that the sector has delivered solid earnings growth and that there's been no earnings surprises. The general trends thus far have been further cap rate compression (massive demand for real estate), debt cost savings, further corporate efficiencies and... Show More

Pat Barrett

While US stocks rise to record levels thanks to The Don's "phenomenal" tax cuts, French and Italian bonds gained amidst political risk. Many discount Le Pen's chances in France but those same commentators discounted Trump's chances and Brexit. At home, there have been signs of strain with weaker earnings reported... Show More

Pat Barrett

In April 2016, I wrote about Dexus's (DXS) bid to acquire the Investa Office Fund (IOF) and how rival Cromwell (CMW) acquired a 9.8% stake in IOF (at $4.24 per share) that assisted in defeating the proposal. Fast forward to December and CMW revealed they had approached the Board of... Show More

Pat Barrett

"I like thinking big. I always have. To me it's very simple: if you're going to be thinking anyway, you might as well think big." – Donald J Trump. The world has been mesmerised by The Don this week with mixed reactions and outlooks hitting our desk. Will Trump go... Show More

Pat Barrett

There are now more cranes servicing high rise apartment construction down the east coast of Australia than in major cities across North America. The bi-annual crane count survey by Rider Levett Bucknall (RLB) found there were a record 528 cranes working on apartment blocks in Sydney, Melbourne and Brisbane in... Show More

Pat Barrett

AREITs continued the good news story with some solid financial results and only a couple of disappointments, led by Cromwell (CMW). In late news Bunnings Property Trust (BWP) received news from their tenant Bunnings that they will exit up to seven existing sites. Essentially, Bunnings will replace some of its... Show More

Pat Barrett

There were a handful of results this week highlighted by the Goodman Group. It really was a standout with EPS growth of 7.8%. Once again, and just like every year for the past five years, they exceeded initial guidance. What's even better is the fact that they’ve been selling assets... Show More

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