ABACUS GROUP (ABG)
Share Price Analysis and Chart

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27/08/2026

1

Buy

$1.20

42.01%

Citi lowers its target price for Abacus Group by -10c to $1.20 following FY26 results.

The broker suggests the current share price represents a compelling entry point. The Buy rating is maintained.

First take: Citi's assessment is that FFO of 9.08cps came in marginally ahead of the 9.0cps expected by itself and consensus.

However, FY27 distribution guidance of 6.70cps and FFO guidance of 7.4c–8.4cps are both below its estimates of 8.6cps and 9.1cps respectively, signalling a meaningful earnings reset as management absorbs the ASK internalisation costs and accelerates the shift to a pure-play commercial REIT.

Citi analysts do note the securities trade at a -44% discount to NTA; one of the widest discounts in the sector.

Abacus Group is considered a potential takeover target at a large discount to NTA.

Citi highlights several positives from Abacus Group's conference call, including potential disposal of its Storage King ((SKG)) stake, which management no longer considers strategic.

Cost reductions are expected to extend beyond FY27, when administration expenses are targeted to fall by -25%. Around $8.4m of annualised savings from Storage King staff transfers are already secured.

Commentary also notes office leasing trends are improving despite lower headline occupancy, with renewal incentives falling to 25% from 35% for new deals.

FORECAST
Citi forecasts a full year FY27 EPS of 8.00 cents.
Citi forecasts a full year FY28 EPS of 8.00 cents.

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23/09/2026

1

Buy

$1.05

24.26%

Shaw and Partners maintains a Buy rating for Abacus Group with a $1.05 target price following the divestment of its 19.9% stake in Storage King Group ((SKG)) for $285m.

Commentary highlights the transaction removes incremental earnings but provides $500m of acquisition capacity, expected to yield $30m in annual rental income at a 6.8% capitalisation rate.

The proceeds alongside the Camellia property sale lower gearing to approximately 25% during FY27 from 36% at the end of FY26.

Management maintained FY27 distribution guidance at 6.7c per unit with the payout ratio expected at the top end of the 80%-90% range, while pro-forma net tangible assets decrease -7c to $1.52 per unit.

The analyst views the current valuation as compelling, noting the stock trades at a -44% discount to net tangible assets compared to the broader sector discount of -20%.

FORECAST
Shaw and Partners forecasts a full year FY27 dividend of 6.70 cents and EPS of 7.80 cents.
Shaw and Partners forecasts a full year FY28 dividend of 7.10 cents and EPS of 8.30 cents.