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Berkshire bets on housing with Taylor Morrison deal
Berkshire Hathaway is increasing its exposure to the housing sector, agreeing to buy Taylor Morrison Home Corporation for US$6.8 billion (A$9.5 billion). The storied investment company will pay $72.50 in cash per common share, which represents an equity value of $6.8 billion and an enterprise value of $8.5 billion for the United States housebuilder and community housing developer. The offer represents a premium of 24% to the Taylor Morrison's closing stock price of $58.50 on Friday (Saturday AEST). The deal reflects ⁠Berkshire Hathaway’s enthusiasm for housing, as reflected in the 2003 purchase of Clayton Homes, a $1.7 billion deal masterminded by its legendary Chief Executive Officer Warren Buffet, who has since retired from the role he held for 60 years. It also represents the deployment of some of its $400 billion of cash. Berkshire Chief Executive Greg Abel, who took over from Buffet on 1 January this year, said the acquisition would help broaden Berkshire’s footprint into site-built homes, with potential to combine operations over time. “We are excited to welcome Taylor Morrison into Berkshire’s portfolio,” Abel said in a statement. “Over time, we expect to unify our site-built homebuilding operations int
Property
Listed property: A-REITs to watch this reporting season
Following on from part one, which provided a timely overview of the A-REITs sector and some insights into how it works, here's part two, which looks at what to expect from the sector this reporting season, and some of the stock's worth keeping on radar. While listed property stock prices have responded favourably to stabilising valuations and a lower interest rate environment, the mission now facing would-be investors is to sniff out those A-REITs most likely to outperform their peers over the next 12 months or more. The larger stocks within this sector appear to have benefited from improving market conditions, with the S&P SAX200 A-REITs Index up around 20% since early April. In light of falling interest rates, improving valuations, and structural tailwinds like population growth, analysts are projecting 5% plus earnings growth in FY26, and over 6% in FY27. That’s great news, but not all list property companies were born equal. Certain stocks within certain pockets of the sector look better placed to bring home the bacon over the next 24 months.Finding market opportunitiesSo with that in mind, what REIT’s looked better placed to benefit from mid-term growth? Given that REITs as a sector – like a lot of listed se
Property
Bidders sweeten Abacus offer, get to look under hood
Undeterred by being rejected the first time around, a consortium has returned with a higher takeover bid for Abacus Storage King. Abacus has received a revised non-binding and indicative proposal from South African billionaire Nathan Kirsh and the world’s largest self-storage company Public Storage in a second attempt to buy out the minority interests owning 40% of the target company. Open to the new offer of A$1.65 (US$1.08) per stapled security as it represented a 15% premium to the first announced in April, the self-storage and removals company has agreed to open it is books to the determined bidders. Abacus said the revised proposal remained subject to a number of conditions, such as regulatory approvals from Australia’s Foreign Investment Review Board and the New Zealand Overseas Investment Office and some tax rulings. Abacus said its independent board committee intended to provide a six-week period of due diligence to the consortium to determine if it could come up with a proposal that was capable of being recommended to securityholders and implemented. Access to due diligence was subject to the parties agreeing appropriate non-disclosure and standstill arrangements. “At present there is no certainty that t
Property
Expert finds CoStar offer for Domain fair and reasonable
An independent expert has concluded that United States real estate information provider CoStar’s A$3.0 billion (US$1.97 billion) takeover bid for digital real estate company Domain Holdings is fair and reasonable. Domain said Grant Samuel & Associates believed the offer of $4.43 per share, less any special dividend declared or paid, was in the best interests of Domain shareholders in the absence of a superior proposal. Grant Samuel has assessed the full underlying value of each Domain share at between $4.06 and $4.46 on a fully diluted basis, which means the offer is at the top end of the range. “The Domain Board considers the Scheme to be in the best interests of Domain Shareholders, having regard to the significant premium to pre-announcement trading, the certainty of value delivered by the Scheme Consideration and the support of Domain’s major shareholder, Nine," Domain Chairman Nick Falloon said in an ASX announcement. Domain said it continued to unanimously recommend that shareholders vote in favour of the takeover, which is to be implemented via a scheme of arrangement and will be considered at a meeting on 4 August. Nine Entertainment (ASX: NEC) has indicated it will vote its 60.05% stake in favour of the dea
Property
Berkeley slides on CEO exit, worst drop in 5 years
Berkeley Group Holdings PLC (LSE: BKG) shares nudged a double-digit fall (9%) on Friday - its most disappointing trading day since March 2020 - after the London-focused developer downgraded its profit guidance for 2026 and 2027. Investors appeared to have looked past the company’s full-year pre-tax profit of £529 million, broadly in line with expectations and focused on the soft outlook and an increasingly competitive market that’s creating some tough trading headwinds for housebuilders. The high-end home builder now expects pre-tax profits to fall to around £450 million in both 2026 and 2027, down from earlier forecasts of roughly £475 million. What clearly cast an ominous shadow over the future outlook was a drop in forward sales from £300 million to £1.4 billion and a slight contraction in future gross margins. This not only reflects tougher market conditions but the need for higher sales incentives to move properties. The company also shifted some homes onto its build-to-rent platform and added new sites and planning consents. Key full-year results include:A small revenue increase to £2.49 billion from selling just over 4,000 homes. Operating profit was up 4%. £337 million in net cash, down from £532 million.

Property
'Challenging': James Hardie sales, net income slump
Global building materials company James Hardie reported a drop in sales and income across regions last quarter, as earnings slumped over the fiscal year. Net sales were US$972 million, falling 3% year-over-year from their record high. Adjusted net income was $156.1 million, down 10%. “We delivered solid business and financial results in the fourth quarter, and our FY25 performance reflects our commitment to invest to scale the organisation and grow profitably even in a more challenging market environment. We are executing on our growth strategy and are confident that our actions are driving market outperformance that will enable us to sustain our strong positioning,” said James Hardie CEO Aaron Erter. The Dublin-based company’s adjusted diluted earnings per share were US$0.36, down 9% year-on-year. Adjusted EBITDA was $269 million last quarter, down 4%. Sales and EBITDA dropped in both its North America and Asia Pacific Fiber Cement segments, which the company attributed to lower volumes in weaker markets. In North America, net sales fell 2% to US$718.9 million, while EBITDA was down 7% to $247.6 million. In Asia Pacific, net sales were down 17% to US$118.1 million, and adjusted EBITDA declined 5% to $40.8 million.
Property
James Hardie will not delist from ASX without approval
James Hardie Industries plc has defended itself from criticism of the governance around its controversial US$8.74 billion (A$13.87 billion) scrip takeover bid for the AZEK Company, saying it would not change its listing status without shareholder approval. The building materials company has been criticised by institutional investors for obtaining an Australian Securities Exchange (ASX) waiver from needing shareholder approval for the bid, along with the dilution of earnings and strategic rationale. If the deal is approved James Hardie plans to move its primary stock listing from the ASX to the New York Stock Exchange (NYSE) where Australian shareholders will have less influence over the company’s direction. James Hardie (ASX: JHX) said that following discussions with shareholders the Board confirmed the company would:retain an independent Chair and a majority of independent directors continue to align management remuneration with generation of shareholder value and hold an advisory vote on remuneration each year, and not seek Foreign Exempt listing status and would hold a shareholder vote before making any decision to change its ASX listing status.In an ASX announcement, the company said its Board of Directors’ corporate
Property
Market challenges hit Reece's HY25 performance
Reece Group announced its HY25 financial results, highlighting a challenging first half. Sales revenue declined by 3% to $4.4 billion, EBIT dropped 17% to $305 million, and EPS fell 19% to 28 cents. Despite these headwinds, the company maintained its commitment to growth, allocating a capex to sales ratio of 2.9% and declaring an interim dividend of 6.5 cents per share. CEO Peter Wilson attributed the softer performance to mortgage rates and affordability issues impacting the sector. “Our performance for the first half reflects the challenging trading environment in both regions as mortgage rates and affordability continue to create near term headwinds in our sector," Wilson said. “Despite the softer first half we continued to invest in the business, expanding our branch network, lifting store standards and enhancing our core capabilities. “While we know the short term will have its challenges, the current environment is one Reece has seen before. Like we always do, we’ll look beyond the cycle to protect and grow the business. “Over the last half we’ve taken the opportunity to reset our leadership team and refresh our Board. These changes will enable us to leverage deep industry and market knowledge across
Property
James Hardie income drops, but reaffirms guidance
James Hardie Industries saw net sales and income fall last quarter, but has reaffirmed its guidance for the rest of its fiscal year. Its net sales last quarter were US$953.3 million, down 3% year-over-year. The company said this was due to lower volumes in North America and the Asia Pacific, though it was offset partly by higher average prices. “We delivered strong business and financial results in the third quarter, and our year-to-date performance shows that we have a strong handle on our business as we continue to scale the organisation and invest to grow profitably,” said James Hardie CEO Aaron Erter. “Our teams are focused on safely delivering the highest quality products, solutions and services to our customers, and we are executing on our strategy to outperform our end-markets.” Net income was US$141.7 million, falling 2% year-over-year from $145.1 million. Diluted earnings per share were US$0.33, unchanged from one year ago.Credit: James HardieJames Hardie’s net sales also dropped across regions last quarter. Sales in its North America Fiber Cement division fell by 1% year-over-year, with volumes lowering by 3%. Net sales in the Asia Pacific region declined by 5%. Volumes were down 28%, though average net