ABACUS GROUP (ABG)
Share Price Analysis and Chart

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09/09/2026

3

Hold

$0.90

12.50%

In light of the prospect for the RBA's cash rate to remain at 4.6% indefinitely, Ord Minnett has reviewed its property sector coverage.

There are two impacts, one from a further rise in interest rate costs which has scope to lower earnings forecasts and the negative impact on property values and thus target prices.

The broker flags an expected rise in cap rates by around 50bps over the next 12-months with the office sector most "vulnerable" where cap rates are forecast to expand by some 90bps.

For Abacus Group the target price falls to 90c from $1.05 with a Hold rating retained given the change in strategy post the changes with Abacus Storage King and the lack of management fees in the future.

FORECAST
Ord Minnett forecasts a full year FY27 dividend of 7.00 cents and EPS of 7.00 cents.
Ord Minnett forecasts a full year FY28 dividend of 7.00 cents and EPS of 8.00 cents.

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23/09/2026

1

Buy

$1.05

31.25%

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.