AUSTRALIAN UNITY OFFICE FUND (AOF)
Share Price Analysis and Chart

19/11/2024

3

Hold

$1.10

-8.71%

Ord Minnett notes the settlement of 64 Northbourne Ave, Canberra, with a special distribution of 9¢ announced by Australian Unity Office Fund.

The broker highlights both announcements were pre-flagged at the FY24 results, and only one asset remains to be sold—468 St Kilda Rd, Melbourne—before the fund’s wind-up.

Two assets are due for settlement in 2H25: $80.5m in March 2025 for Valentine Ave, Parramatta, and $51.5m in April 2025 for Charlotte St, Brisbane.

Following the sale, the analyst lowers the target price by -10% to $1.10 and retains a Hold rating.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 9.40 cents and EPS of 3.40 cents.
Ord Minnett forecasts a full year FY26 EPS of 0.30 cents.

23/04/2024

1

Buy

$1.55

28.63%

In Australian Unity Office Fund's fifth divestment since June 2022, notes Moelis, 150 Charlotte St has been sold for $64.5m, a 4% premium to December's book value.

Following settlement, the analyst expects a net cash position of around $60m by June 2025.

This sale suggests to the broker the REIT no longer requires a debt facility, thereby allowing management to close the hedge book, which is currently in the money with a net present value of circa $2.1m.

The broker's Buy rating is maintained and the target price increases to $1.55 from $1.47. It's felt the share price is attractive given potential for further near-term divestments at around book value.

FORECAST
Moelis forecasts a full year FY25 dividend of 2.90 cents and EPS of 3.50 cents.