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Management
Not all A-REITs are equals amid RBA's hawkish turn
Yesterday’s decision by the Reserve Bank of Australia (RBA) to raise the cash rate by 25 basis points to 3.85% places greater pressure on Australia’s struggling listed property sector – aka Australian Real Estate Investment Trusts (A-REITs), with the broader benchmark – the S&P/ASX 200 Financials Ex-A-REIT (XXJ) index currently treading water. Admittedly, not all A-REITs are of the rent-collecting variety, but those that are can expect to face more immediate downward pressure due to increased borrowing costs and heightened concerns over property valuations. More specifically, it's residential A-REITs – like Mirvac (ASX: MGR) and Stockland (ASX: SGP) - that are considered the most sensitive to rate hikes because rising borrowing costs deter home buyers and increase mortgage repayments for existing owners. Indirectly, retail A-REITs - landlords of shopping centres - are also exposed as higher rates squeeze household budgets, leading to lower consumer confidence and discretionary spending. This typically translates into weaker rental growth and increased margin pressure for retail property owners.Discount to NTA to widenUnsurprisingly, the average discount to net tangible assets (NTA) – currently averaging between 15%
Management
National Storage REIT enters into A$4bn takeover
Shares of property trust National Storage REIT (ASX: NSR) were trading 1.8% higher by 2:25 pm AEDT (3:25 am GMT), touching fresh record high valuations as the market cheered news that it had entered into a Scheme Implementation Deed from a Canadian-led consortium. The new Scheme Implementation is between National Storage, Iridium SP BidCo and ITG Australia, owned by Canadian asset manager Brookfield and GIC. It was announced in a statement to the ASX, with the consortium bidding $2.86 per security for National Storage. This marked a 26.5% premium to National Storage's price and an 11% premium to its net tangible asset value. “The NSR Board believes the Transaction provides attractive value and certainty for NSR securityholders with an all-cash offer at a significant premium to the undisturbed trading price. The offer from the Consortium follows a number of earlier offers and a period of negotiation,” said NSR Chair Anthony Kea “Accordingly, the NSR Board is unanimous in its recommendation that the Transaction represents a compelling outcome for NSR securityholders.” NSR appears to be in a strong bullish trend, confirmed by multiple indicators. Specifically, a 5-day moving average of the stock price is above th
Management
Goodman in the black with focus on data centres
Goodman Group returned to a bottom-line profit in the 2025 financial year (FY25) as operating earnings grew and property revaluation losses dropped out of the results. The global integrated property group said statutory profit was A$1.666 billion (US$1.08 billion) in the 12 months ended 30 June 2025, compared with a loss of $98.9 million in FY24, which was marred by non-cash factors including revaluations. Operating profit rose 13% to $2.311 billion on revenue, which increased 16.5% to $2.311 billion. Goodman Group announced a final distribution of 15 cents per stapled security to be paid on 26 August to security holders registered on 30 June, level with a year earlier, bringing the full year payment to an unfranked 30 cents, unchanged from FY24. The group said it was targeting operating earnings per security growth of 9% for FY26, which equated to more than $2.6 billion of operating profit.Source: Goodman Group “Goodman has reported a strong operating result for FY25. This reflects the quality of our assets, the strength of our financial position, and the continued successful execution of our strategy,” Chief Executive Officer Greg Goodman said in an ASX announcement. He said Goodman pursued long-term growth opport
Management
GPT back in the black as write-down drops away
GPT Group has returned to profit in the first half of the 2025 financial year (H1 FY25) with a statutory net profit after tax of A$329.1 million (US$214.8 million) compared with a $249.4 million loss in the previous corresponding period (pcp). The property group said funds from operations (FFO) grew 4% to $322.6 million while adjusted FFO eased by just 0.4% to $257.4 million as total investment portfolio & investment management FFO rose 6.4% to $475.7 million in the six months to 30 June 2025. GPT had suffered a statutory loss in H1 FY24 due to write-downs in the value of its properties, mainly its office buildings. Directors declared an unchanged interim distribution of 12 cents per security to be paid on 29 August to security holders who were registered on 30 June. The group said it expected FFO to grow a least 3% to a minimum of 33.2 cents per security in FY25, from which it would pay a distribution of 24.0 cents per security, unchanged from 2024, “barring unforeseen circumstances”. “Our success in the half has been built on the strong operational performance at the asset level, a testament to the quality of our portfolio and ability of our people to drive earnings,” Chief Executive Officer Russell Proutt said in
Management
MA Financial's $90.4m IPG buy; scales real estate AUM
MA Financial Group has acquired Melbourne-based IP Generation (IPG) for $90.4 million, expanding its asset management platform. The deal boosts MA Financial’s real estate assets under management (AUM) to ~$8 billion and total AUM to over $12 billion. The acquisition is expected to be earnings-accretive in FY25, strengthening MA Financial’s position in the sector. IPG, founded in 2018, manages $2 billion in retail shopping centre assets across 10 funds. This covers 14 shopping centres in New South Wales, Queensland, Victoria, and Western Australia. The firm specialises in securing assets, raising capital, and delivering strong returns for high-net-worth investors. The acquisition integrates IPG’s expertise into MA Financial’s broader real estate strategy, enhancing its distribution channels and investor base. The deal brings 29 real estate investment professionals from IPG into MA Financial’s asset management team. IPG’s Founder and CEO Chris Lock will become Head of Core Real Estate, overseeing performance and fund management. Other senior leaders, including Chairman David Blight and Director Greg Miles, will help lead MA Financial’s real estate division. The expanded team strengthens MA Financial’s capabilities

Management
CoStar wins parental approval for $3bn Domain marriage
United States real estate information provider CoStar clearly liked what it saw when it looked under the bonnet at Domain Holdings, making an agreed offer that has won the ascent of the digital real estate company’s parent company, Nine Entertainment. Domain said it had entered into a binding Scheme Implementation Deed for CoStar to buy the 83.1% of Domain it does not already own by way of a Scheme of Arrangement, taking it private after eight years on the Australian Securities Exchange (ASX), if approved by shareholders. The offer of $4.43 per share, less any special dividend declared or paid after today, values Domain at an implied enterprise value of A$3.0 billion (US$1.92 billion). The Domain Board has unanimously recommended that shareholders vote in favour of the Scheme, without a superior proposal, and subject to an Independent Expert concluding it is in the best interests of shareholders. Nine, which owns 60% of Domain, has advised Domain it will vote in favour of the Scheme at a shareholders' meeting in mid-August, subject to the same conditions as the Board made. The offer was at a premium of 42.0% to the ‘undisturbed’ share price of $3.12 per share before CoStar made its initial offer on 21 February, 50.2
Management
M&A speculation: Two large REITs eyeball merger deal
There’s renewed speculation that the country’s largest listed office landlord Dexus (ASX: DXS) could have entered into merger talks with GPT (ASX: GPT), the country’s oldest property trust. Any future mergers may be shelved until market volatility around United States President Donald Trump’s tariff mayhem is over. However, the renewed M&A speculation follows confirmation that New York private equity firm Blackstone again assessed Dexus for a possible buyout. Given that both REITs have diverse baskets of complementary commercial property assets, a merger between Dexus and GPT is expected to create synergies that could accelerate future growth.Complementary portfoliosIncluded within Dexus’ $14.8 billion portfolio of real estate and infrastructure assets are iconic landmarks like Sydney’s MLC Centre and 360 Collins St in Melbourne. In addition, there are airports and other key infrastructure assets. Its portfolio sector breakdown includes:Offices: $20 billion. Industrials: $11 billion. Retail: $9 billion. Healthcare: $1.7 billion. Alternative assets: $1 billion.Dexus has $53.4 billion in funds under management (FUM), including $38.9 billion for third parties. By comparison, GPT has $34.1 billion worth of assets under
Management
A-REITs: Charting a path to wealth as RBA eases rates
In recent years, Real Estate Investment Trusts (REITs) have emerged as the cornerstone of diversified investment portfolios in Australia. Following the Reserve Bank of Australia's 25 basis point rate cut, the historically rate-sensitive A-REIT sector offers opportunities to build wealth, manage risk, and gain exposure to real estate without the complexities of direct property ownership.Historical Evolution of REITsThe concept of REITs dates back several decades, with their origins rooted in the United States before spreading to global markets, including Australia. Early iterations of REITs were designed to democratise real estate investments, enabling individual investors to access high-quality property portfolios that were once the domain of institutional players. Over time, regulatory changes and market innovations have spurred REIT growth and diversification worldwide. In Australia, the REIT model has evolved significantly, reflecting broader economic trends and investor demands.The Appeal and Benefits of Australian REITsInvestors are drawn to Australian REITs for a host of reasons. One of the primary attractions is the ability to gain diversified exposure to real estate assets without the burden of direct propert
Management
Pexa Group's strong half-year; $50m share buyback
Property settlement and exchange platform The PEXA Group Limited posted a strong half-year operating result ending December 2024. Revenue increased by 25% while operating EBITDA increased by 24%. The company reported a non-cash loss, but improved its cash flow and announced a $50 million share buyback, reflecting its confidence in its future growth. “The group’s strategic position and operating performance improved during the half, with all businesses contributing. Although statutory profits were impacted by non-cash charges, underlying cash generation grew, supporting a stronger balance sheet,” said outgoing group executive and managing director Glenn King. “Pleasingly, this means we can return up to $50 million to our shareholders via the on-market buyback announced today.”Credit: PEXAFree cash flow surged 82% to $27.9 million. Up to $50 million will be raised through cash and existing debt facilities for the on-market share buyback. The six-month buyback is scheduled to begin in mid-March 2025. In FY25, PEXA targets revenue growth of 13-19% and an operating EBITDA margin equal to or greater than 34%.