Rural Funds Group

Rise in assets with Queensland cattle property acquisition: Rural Funds Group’s (ASX: RFF) responsible entity and manager, Rural Funds Management Limited (RFM) has contracted to acquire three, contiguous cattle properties in Northern Queensland for $53.0 million (that includes stamp duty) as part of a $72.5 million transaction. The properties, Natal Downs, Longton and Narellan, referred to as Natal, will be acquired from members of the Camm Agricultural Group (CAG), a family business that has been operating for more than 20 years and leased to, DA & JF Camm Pty Ltd (Camm) also a member of CAG. The lease will be for a period of ten years, indexed annually at 2.5% and with a market review at the end of year five. Once the transaction is complete, the cattle assets will represent 16% of the RFF portfolio. The acquisition will be funded by balance sheet capacity, after the June 2017 Entitlement Offer. Moreover, RFF has a target of 4% p.a. DPU (distribution per unit) growth. Additionally, RFF has a strategic objective of management of the existing portfolio and expansion through acquisitions with the aim of increasing earnings and distribution growth, enhancing diversification, improving liquidity and lowering operating costs per unit. Meanwhile, RFF stock has risen over 22% this year to date as on October 23, 2017.
 

Key forecasts FY18 (Source: Company Reports)

Japara Healthcare Ltd

Moelis Australia managed funds acquired 9.96% interest in JHC: Japara Healthcare Ltd (ASX: JHC) shares soared 7.5% on October 24, 2017 after the company provided an update that Moelis Australia managed funds has acquired 9.96% interest in JHC. This is $50.4 million strategic interest in JHC inclusive of a $17.5 million investment by Moelis Australia. Moelis Australia believes that Aged Care is an attractive sector to invest and JHC has quality assets combined with an outstanding record of management, governance and provision of resident care.Given the past performance and regulatory challenges, we think it might be better to wait for some more developments and positive signs for performance.

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.