Mcgrath Ltd

MEA Details
 
Strong sales and pricing growth: Mcgrath Ltd (ASX: MEA) reported an increase of 33% in statutory revenue to $54.3 million for the first half of 2016 financial year results. The group reported a 15% (Pro forma basis) rise in overall sales while the average sales price improved 6% despite the ongoing tough market conditions. MEA number of properties under management rose 28% while Oxygen settlements improved 41% during the period. The group’s focus on efficiency paid off as they were able to deliver pro forma EBITDA improvement by 13% to $14.7 million.
 

Australian residential sales (Source: Company reports)
 
The company has a strong balance sheet with no debt, and has $14 million cash and an undrawn $11.5 term facility. During the first half 2016, agent numbers rose by a total of 59 to 624 while there were 11 new offices opened. The group also declared a final full year dividend of 4.5 cents per share. MEA has been added to All Ordinaries Index as per S&P Dow Jones Indices’ March quarterly review. Based on a strong balance sheet and ongoing sales momentum, we rate the stock "BUY" at the current share price of $1.31
 

MEA Daily Chart (Source: Thomson Reuters)

 
Industria REIT

IDR Dividend Details
 
Improving portfolio value: Industria REIT (ASX: IDR) recently reported strong first half of 2016 results with statutory net profit of $19.8 million compared to $11.2 million in same period a year ago. The company has 17 investment properties with a portfolio value of $418.1 million, representing a rise by 4.6% during the six months.
 

Financial highlights (Source: Company reports)
 
Maintaining its guidance estimates, the company distributed 7.5 cents per share in first half and forecasts a full year 2016 guidance between 15.2 to 15.6 cents per security. On the other hand, management issued a soft short term outlook given the volatile market conditions despite believing in a strong long term growth. We believe that the stock is "Expensive" at the current share price of $2.07
 
 
IDR Daily Chart (Source: Thomson Reuters)
 

Phileo Australia Ltd

PHI Dividend Details
 
Mixed performance: Phileo Australia Limited (ASX: PHI) recorded half yearly financial results with revenues from ordinary activities declining 11% to $6.5 million. Profit from ordinary activities after tax was up 107% to $38,000. Cash balance at the end of the period stood at $1.12 million compared to $1.01 million in year ago period. PHI also recently announced that it intends to obtain an independent valuation of its land in Victoria in order to assess and disclose its current market value in the full year financial report. In January 2012, the land was valued independently at $12.6 million. With the stock gaining 19.1% (as of March 02, 2016)in the month of February till start of March, we believe that PHI stock is now at higher levels.  Hence, we recommend an "Expensive" rating on this stock at the current share price of $8.99
 
 
PHI Daily Chart (Source: Thomson Reuters)
 

Asia Pacific Data Centre Holdings Ltd

AJD Dividend Details
 
Stable distributions: Asia Pacific Data Centre Holdings Ltd (ASX: AJD) has been consolidating since last one year and generated 7.69% returns, while rose 5.26% during this year to date (as at April 08, 2016). The group’s top line growth is in single digits for the half year ended on December 2015, which recorded revenue from ordinary operating activities of $6.61 million compared to $6.46 million in year ago period. Total profit for the period attributable to members increased to $5.44 million from $4.92 million. Looking ahead, management confirmed the guidance of 2.40 cents per security for the upcoming for two quarters. On the other hand, the stock is trading close to its 52-week high price. Looking at the fundamentals, we rate the stock "Expensive" at the current share price of $1.40
 
 
AJD Daily Chart (Source: Thomson Reuters)

 
Aspen Group Ltd

APZ Dividend Details
 
Outstanding dividend yield: Aspen Group Limited (ASX: APZ) recently updated that it got an unsolicited proposal from Mill Hill Capital which would acquire Edward Baillie Capital Hotel & Leisure Fund's hotel/motel portfolio and operations for an indicative total consideration of $31.3 million. Also, it would undertake an off-market buyback at a price of $1.20 per Aspen Group security of up to 25% of Aspen Group issued capital. The group even delivered strong first half results, with statutory profit of $6 million compared to a loss of $18.2 million in year ago period.
 

Aspen Portfolio – Pre and Post Transaction (Source: Company reports)
 
Also, the company has no debt with $61.3 million in cash on hand. The company declared a distribution guidance of 4.6 cents per security in line with first half. Having an outstanding dividend yield, we recommend a "Speculative Buy" rating on the stock at the current share price of $1.15
 
 
APZ Daily Chart (Source: Thomson Reuters)
 

Arena REIT No 1

ARF Dividend Details
 
Higher distributions: Arena REIT No 1 (ASX: ARF) surged over 20.94% (as of April 08, 2016)in the last six months and delivered net operating profit of $12.6 million in the first half of 2016, an increase of 20% from year ago period. Statutory net profit increased 93% to $41.4 million.
 

EPS & DPS statistics and guidance (Source: Company reports)
 
The company has also maintained a strong balance sheet with total assets rising 7% for the period and net asset value per security up 13 cents. ARF declared distribution per security of 5.35 cents, an increase of 9% from prior year. For full year, guidance is upgraded to 10.9 cents per share an increase of 9% from previous year. With a strong dividend yield and financial results, we remain bullish and give a "HOLD" rating at the current stock price of $1.925
 
 
ARF Daily Chart (Source: Thomson Reuters)
 

Peet Ltd

PPC Dividend Details
 
Building contracts base: Peet Limited (ASX: PPC) recorded a solid first half financial year with operating profit after tax of $18.5 million which indicates an 8% rise over the same period a year ago. PPC continues to expand its contract portfolio and reported a record 2,318 contracts on hand as of Dec 31, 2015 with a value of $523 million compared to 2,061 contracts with a value of $441 million in year ago period.
 

Financial highlights (Source: Company reports)
 
Interim dividend stood at 1.75 cents per share, an increase of 17% over 1H15. Based on the group’s attractive valuations with a strong dividend yield and reasonable P/E, we believe that the stock has more potential for growth in the upcoming months and thus we rate the stock a "BUY" at the current share price of $0.96
 
 
PPC Daily Chart (Source: Thomson Reuters)

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