Goodman Group (ASX: GMG)

Rise in Distribution: ASX listed integrated property group, Goodman reported FY18 operating profit of $845.9 million, up 9% on previous corresponding year. The company as at 17 August 2018, announced its results for the financial year ending 30 June 2018, delivering statutory profit of $1.1 billion including significant contribution from valuation gains. The group has reported total distribution of 28 cents per security which is 8.1% more than the prior year’s distribution. Like-for-like net property income grew by 3.2% when there has been 98% occupancy with weighted average Lease expiry of 4.8 years. The growth reflects the group’s strong portfolio performance over the past one year. Property giant also reported total assets under management of $38.3 billion including external assets under management of $35.1 billion, up 15% at the back of valuation uplift and development completions in FY18. Strong cash flows have resulted in reducing gearing to 5.1%. The company forecasted operating earnings of $913 million for FY19, while the earnings per share is expected to increase by 7% to 50 cents per share. There has been $3.6 billion work in progress across 80 projects in 12 countries during the fiscal year 2018. The stock traded at $10.33 (with dividend yield of 2.65%) and looks to be on an ‘Expensive’ side. 

Ausdrill Limited (ASX: ASL)

Update on entitlement offer: Ausdrill is a mining services company, which lately announced the successful completion of $175 million institutional entitlement offer in support of Barminco procurement. On 17 August 2018, Ausdrill confirmed the completion of $175 million placement to institutional investors, as a part of $250 million entitlement offer, underwritten to help finance the acquisition deal of $700 million inked with underground mining contractor Barminco. The Company notified that eligible institutional investors have taken up 93% of available new fully paid ordinary shares at one for every 2.13 Ausdrill share held at $1.47 each. As per the announcement, the remaining 7% entitlement has been significantly subscribed by existing and new investors. New shares issued to institutional investors are scheduled to trade on ASX from 27 August 2018, following its settlement on 24 August 2018. Retail component of the offer is expected to open on 21 August 2018 and close on 5 September 2018. In the wake of company’s proposal for acquisition of Barminco Holdings Pty Ltd, Credit rating companies have placed the credit watch of the transaction. Standard and Poor’s Global rating has placed Ausdrill’s credit ratings on Credit Watch Positive having the potential of ‘BB’ rating while Moody’s Investor Services expects upgradation in credit rating of both Ausdrill and Barminco if the transaction goes through as proposed. At the moment, the stock looks to be a watch at the current price of $ 1.865, down 4.4% on August 21, 2018, as the group dispatched the retail offer booklet. ASL has a dividend yield of 2.56%.
 
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