APD – closing the gap on fair value

APN Property Group (APD) is a real estate focused fund manager with a twenty year trading history. Like many real estate companies, APD experienced a tumultuous time during the 2007/08 global financial crisis. Now in 2015 the company is very well capitalised and has four business units that have developed firm foundations to allow them to grow funds under management materially over the medium to long term. In recent history, institutional investors have been hampered from investing in APD due to its relatively small market capitalisation and associated lack of liquidity. This is the chief reason we think the security trades significantly below fair value. The very recent equity capital raising has moved APD’s market capitalisation to $120 million. The raising is also likely to have seen the introduction of new shareholders to the register. This should improve the broader understanding and awareness of APD moving more closer to fair value. More detail on our investment case and valuation for APD is available here: (VIEW LINK) (page 3)