ABACUS GROUP (ABG)
Share Price Analysis and Chart

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

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.

Broker commentary and detailed analysis is available for Full Members Only.
Login above or Get a Free Trial

27/08/2026

1

Upgrade to Buy from Hold

$1.05

24.26%

Shaw and Partners upgrades to Buy for Abacus Group with its target price maintained at $1.05 following an FY26 financial result that printed broadly in line with expectations.

Operational performance remains solid across the office and retail portfolios, though FY27 distribution guidance was reset to 6.7cps following the cessation of management and equity income from Storage King Group ((SKG)).

The broker's estimates indicate that significant asset sales during FY27, including the divestment of the Abacus Group stake in Storage King Group and the Camellia property, will reduce gearing to approximately 25% and provide substantial acquisition capacity.

The analyst highlights the stock trades at a compelling -43% discount to net tangible assets, offering an attractive dividend yield and significant value within the real estate sector.

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 8.70 cents.