Australian Unity Office Fund’s Macquarie Park Asset Sale Brings 3% Share Price Drop in 2023.
March 25, 2023
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The Australian Unity Office ($ASX:AOF) Fund (AUOF) experienced a 3% share price drop in 2023, following the payment of proceeds from the sale of an office asset in Macquarie Park. The sale of the office complex, which was made in order to provide liquidity to the fund, proved to cause a certain amount of uncertainty in the market. As a result, investors were concerned about the implications of the sale and its future impact on the fund’s performance.
The fund’s management team remains committed to maintaining its solid performance, and has taken steps to ensure that it can continue to provide investors with reliable returns. As such, investors should remain confident that the Australian Unity Office Fund will continue to offer strong returns in the years to come.
Stock Price
Currently, news sentiment about the sale is mostly positive, as the AUOF opened at AU$1.6 and closed at AU$1.6 on the same day. This suggests that the market reacted positively to the announcement, despite the decrease in share price. The drop could be attributed to a general shift in investor sentiment, which is yet to be seen. However, with the sale of an asset, investors may be slightly more cautious about their investments in AUOF given the uncharted financial territory it may bring. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AOF. More…
| Total Revenues | Net Income | Net Margin |
| 43.91 | -54.21 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AOF. More…
| Operations | Investing | Financing |
| 28.14 | 25.96 | -55.62 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AOF. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 477.65 | 113.4 | 2.22 |
Key Ratios Snapshot
Some of the financial key ratios for AOF are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 48.5% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
Based on our Risk Rating, we deem AUSTRALIAN UNITY OFFICE FUND to be a low risk investment in terms of financial and business aspects. Our analysis has detected 1 risk warning in the balance sheet, however, this information is only available to registered users so be sure to become a registered user with us to check it out. More…
Peers
It competes in the same market with other REITs such as Inovalis Real Estate Investment Trust, Corporate Office Properties Trust, and Elme Communities. All of these companies strive to provide investors with strong returns and diversified exposure to the Australian office real estate market.
– Inovalis Real Estate Investment Trust ($TSX:INO.UN)
Inovalis Real Estate Investment Trust (IRET) is a Canadian based company that specializes in the acquisition, ownership, and management of commercial real estate. With a market capitalization of 118.99M as of 2023, the company is considered a medium-cap stock. IRET focuses on acquiring properties in the office, retirement and residential sectors across Canada, Germany and France. The trust’s portfolio consists of 67 properties in three countries with a total gross leasable area of approximately 5.2 million square feet. IRET also invests in non-real estate investments such as bonds and other financial instruments.
– Corporate Office Properties Trust ($NYSE:OFC)
Corporate Office Properties Trust (COPT) is a real estate investment trust that invests in office buildings primarily located in the United States. As of 2023, COPT had a market cap of $2.51 billion. The company is focused on acquiring, owning, and managing properties located in select submarkets of the Washington D.C. metro area, Baltimore, and select cities in the Mid-Atlantic and Southeast regions of the United States. COPT is the largest owner and manager of office properties in the Washington D.C. metropolitan region and is one of the largest owners of data center space in the United States. The company primarily leases their office spaces to government contractors and professional services companies.
– Elme Communities ($NYSE:ELME)
Elme Communities is a diversified real estate investment trust with a focus on multifamily housing. The company is headquartered in Los Angeles and operates communities throughout the United States. With a market cap of 1.46B as of 2023, Elme Communities has been able to establish itself as one of the market leaders in the multifamily housing sector. The company strives to provide quality, affordable housing through its network of well-maintained communities, which offer amenities such as pools, fitness centers, basketball courts, and more. Additionally, Elme Communities has implemented several initiatives to ensure their residents are satisfied with their living experience, such as creating a rent payment portal and offering resident service programs.
Summary
Australian Unity Office Fund (AUOF) saw its share price drop by 3% in 2023 after the successful sale of its Macquarie Park asset. Despite this, recent news sentiment around the company has been mostly positive. Investors should consider AUOF as an attractive long-term investment opportunity.
With a portfolio of high quality, centrally-located office assets, strong occupancy rates and a history of consistent distributions, AUOF has attractive risk/return characteristics that could prove fruitful for investors in the medium to long-term. With a diversified tenant base, good tenant retention rates, and a growing income stream from rent increases, AUOF looks set to continue delivering steady returns to shareholders.
