Arena REIT No 1

ARF Details
Long lease terms: Arena REIT No 1 (ASX: ARF) reported a strong FY16 performance with earnings and distributions of 9% per security and 16% growth in NTA per security. The group has a strong balance sheet with gearing slipping to 26.8% as at June 2016. ARF’s weighted average lease expiry has been further extended in 2016 to 9.7 years indicating long lease terms. The group also provided a distribution guidance of 11.7 cents per security for FY17. ARF is on track to complete eight projects in FY17 and has an attractive portfolio passing yield of 7.3%.
 

Growth Record (Source: Company Reports)
 
The stock has fallen 15.5% in last three months (as at December 02, 2016) partly owing to sector driven headwinds. We maintain our ‘Hold’ recommendation on the stock at the current price of $ 1.80

 
ARF Daily Chart (Source: Thomson Reuters) 

Cedar Woods Properties Ltd

CWP Details
Mixed outlook owing to market conditions: Cedar Woods Properties Ltd (ASX: CWP) announced for encouraging FY17 start with presales of $230 million for first quarter which is up from $184 million of prior corresponding period. Earnings are being said to be seen in second half of the year with a weaker first half given the market conditions. The group earlier reported 2.4% growth in net profit after tax of $43.6 million while earnings per share rose-up 1.8%. There was a 1.8% rise in full year dividend to a record 28.5 cents per share. This was company’s sixth consecutive year of record profit. The gearing was at 16.5%. In response to growth in Queensland and Adelaide, the group made some management changes throughout the year. CWP has, like many peers, struggled to witness great share price growth given the performance. The stock has surged 7.8% in last one month (as at December 02, 2016). We give a ‘Buy’ recommendation on the stock at the current price of $ 4.93

 
CWP Daily Chart (Source: Thomson Reuters) 

Genworth Mortgage Insurance Australia Ltd

GMA Details
Performance headwinds: Genworth Mortgage Insurance Australia Ltd (ASX: GMA) reported net profit after tax (NPAT) of $46.7 million and underlying NPAT of $47.4 million for third quarter ended 30 September 2016. However, softness in the high loan-to-value ratio (LVR) market and the mix of business in lower LVR bands have pressurised the performance. On the other side, CBA contract has been renewed for 3 years. The group expects 2016 NEP to slide by 5 per cent and for the full year loss ratio to be approximately 35 per cent. We maintain our ‘Hold’ recommendation at the current price of $ 2.96

 
GMA Daily Chart (Source: Thomson Reuters) 

Crown Resorts Ltd

CWN Details
Response to queries on international VIP gaming programs: Crown Resorts Ltd (ASX: CWN) recently responded to the AGM enquiries relating to the international VIP program play business, and as per the comments, a third of Crown Group revenues are generated from overseas visitors and only some participate in international VIP gaming programs. Further, a quarter of the group’s FY16 revenues were generated from international VIP gaming programs. CWN’s Australian operations have been delivering solid performance while subdued market conditions in Macau have recently impacted Melco Crown’s result. The group has otherwise depicted earnings resilience from the Melbourne and Perth casinos. Given the Australia’s tourism scenario, we give a ‘Hold’ recommendation on the stock at the current price of $ 11.69

 
CWN Daily Chart (Source: Thomson Reuters) 

Charter Hall Retail REIT

CQR Details
Rise in portfolio value: Charter Hall Retail REIT (ASX: CQR) has so far managed a $2.55 billion geographically diverse portfolio having 74 properties with more than 150 million customer visits annually and in excess of $5 billion sales annually. However, the group witnessed a decent reporting season but underperformed the REIT sector while giving out a flat FY17 guidance for operating earnings. The FY16 operating earnings growth was 2.4% to 30.4 cents per unit while statutory profit was up 11.2% while the portfolio value jumped up 17.9%. FY17 guidance for operating expenses is now expected to be 30.4 cpu.
 

Portfolio Performance (Source: Company Reports)
 
For the September quarter, occupancy remained stable at 98.0% with specialty sales growth at 3.7% for the quarter. Further, $58.9 million Secret Harbour development is on track and is forecasted to complete in March 2017. We give a ‘Hold’ recommendation on the stock at the current price of $ 4.16

 
CQR Daily Chart (Source: Thomson Reuters) 

Sunland Group Ltd

SDG Details
Dividend payment in FY17: Sunland Group Ltd (ASX: SDG) stock has fallen 8.5% in last one month (as at December 02, 2016). The group lately provided FY17 earnings guidance of $35 million net profit after tax and this represents an earnings growth of 11% on FY16. The group’s luxury highrise apartment in Brisbane, Abian, along with settlements from core land and housing projects are expected to contribute to the growth. SDG also plans to pay a fully franked dividend of 10 cents per share in FY17.
 

Sales and Settlements (Source: Company Reports)
 
We maintain a ‘Speculative buy’ recommendation on the stock at the current price of $ 1.50

 
SDG Daily Chart (Source: Thomson Reuters)

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