1. Exit Case: Abacus Property Group (ASX: ABP)

Overview Abacus Property Group (ASX: ABP) is a diversified real estate investment trust (REIT) with an investment portfolio focused on the commercial property and self-storage sectors

Business Update

As announced on 27 July 2023, Abacus Property Group Securityholders authorized the proposed amendments to the constitutions of each as of 6 Stapled Securities, in connection with the proposed de-stapling of Abacus Property Group’s Self Storage assets into an ASX-listed Self Storage REIT, namely Abacus Storage King (ASX: ASK). Each consisting of a fully paid ordinary share in each of Abacus Group Holdings Limited (AGHL), Abacus Group Projects Limited (AGPL) and Abacus Storage Operations Limited (ASOL) stapled to a fully paid ordinary unit in each of Abacus Income Trust (AIT), Abacus Trust (AT), and Abacus Storage Property Trust (ASPT).

On 1 August 2023, the Abacus Property Group shares commenced trading on a reconstructed and deferred settlement basis to render the de-stapling process. Today, ASK Securities (each as a two-stapled security) were expected to commence trading on ASX on a deferred settlement and conditional basis, as de-stapling has occurred.

3 August 2023 will be recognized as the de-stapling implementation date and settlement date of the new ASK Securities. The issue price of the Offer was AUD 1.41/ASK Security, illustrating a 10.2% discount on ASK’s NTA of AUD 1.57, which includes the impact of the Proposal, the Offer and specific post-balance date events, offered on 1 for 5.6 pro-rata security holder offer.

ABP has been a part of the ‘Value Model Portolio’ since 14^th March 2023. On 27 July 2023, S&P Dow Jones Indices announced the de-stapling of ABP into two separate ASX-listed entities, namely, Abacus Group (XASX: ABG) and Abacus Storage King (XASX: ASK). Abacus Property Group will spin-off 1 share of Abacus Storage King for every 1 Abacus Property Group share held.” With this note, we close the coverage on the stock at the current market price of AUD 1.460 at 11:00 AM (GMT+10) as of 1 August 2023, and the issue price of the Offer was AUD 1.41 per ASK Security resulting in a total consideration of AUD 2.87 per share.

1.1 ABP profit and loss summary

1.2 Support and Resistance Summary as provided in our last published report dated 14 March 2023.

 1.3 Abacus Property Group (ASX: ABP)

One Year Technical Price Chart (as of 1^st August 2023). Source: REFINITIV, Analysis: Kalkine Group

2. New Entry Case: Atlas Arteria Limited

2.1 Overview: Atlas Arteria Limited (ASX: ALX) owns, develops, and operates a portfolio of toll roads in Germany, France, and the United States.

Technical Analysis: On the daily chart, ALX prices are trading above the horizontal trendline support zone. Moreover, the momentum oscillator RSI (14-period) is showing a reading of ~46.58 level. However, the prices are trading below the trend-following indicators 21-period SMA, which may act as a resistance zone. An important support level for the stock is placed at AUD 5.40 while the key resistance level is placed at AUD 7.10.

Considering the above mentioned factors, technical analysis, support & resistance levels, key risks and outlook an ‘Entry’ is recommended in the ‘Value Model Portfolio’ at the closing price of AUD 6.21, as on (01^st August 2023).

 Source: REFINITIV as on 01^st August 2023

Atlas Arteria Limited (ASX: ALX) has been identified as the new entry to our Value Model Portfolio.

2.2 Support and Resistance Summary as on 01st August 2023

2.3 One Year Technical Price Chart (ASX: ALX)

One Year Technical Price Chart (as of 01^st August 2023). Source: REFINITIV, Analysis: Kalkine Group

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency as of (01st August 2023). The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings.

Disclaimer

This information should not be relied upon as personal financial advice by Kalkine on (i) the stocks or (ii) the use or suitability of the model portfolios. Only an investor knows about their circumstances to make an investment decision.

Model Portfolio has been prepared for illustrative purpose only and does not take into account the objectives, financial situation or needs of any particular investor. Accordingly, investors should, before acting on the information, consider its appropriateness, having regard to their objectives, financial situation and needs. Past performance is not necessarily indicative of future performance results. Actual investment returns will vary, and the value of investments can go up or down.

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