MENU

Can Abacus Property Group’s new CEO send the share price higher?

The Abacus Property Group (ASX: ABP) share price has plummeted over the last couple of months, shedding about 14 per cent since mid-December when the company’s shares were going for more than $4.20.

Abacus Property shares are now trading for around $3.59.

Abacus Property, with a market value of more than $2 billion, is a Sydney-based real estate investment group and holds a portfolio that includes offices, retail centres and industrial spaces across Australia and New Zealand.

In financial year (FY) 2017 Abacus reported an underlying profit of about $187 million, up 51 per cent on the previous year.

It appears the bump in profit was kicked along by $10 million of additional net rental income across the company’s commercial and self-storage portfolios and $30 million of profits from residential development projects.

The company, with a history of buying undervalued assets, also acquired 7 commercial properties totalling over $205 million in value and sold 4 commercial properties for more than $160 million during FY 2017.

But Abacus’s share price started to sink in December amid sombre news surrounding Australia’s property market.

Still, despite the recent drop in the company’s share price, Abacus shareholders have enjoyed returns exceeding 25 per cent over the past year.

Now Abacus’s management is set to undergo a major transition after Managing Director Dr Frank Wolf announced he is to retire on 1 July 2018 after more than 21 years with the company.

Dr Wolf said he is retiring for personal reasons.

“The timing has been influenced by the fact that I will turn 65 on the 1st of July and a recent health issue which is being well managed,” Dr Wolf said.

Dr Wolf is to be replaced by the company’s Chief Investment Officer and Head of Strategy Steven Sewell.

Mr Sewell has previously held senior roles at Macquarie Group Limited (ASX: MQG) and was recently as the managing director and CEO of Federation Centres, now known as Vicinity Centres Re Ltd (ASX: VCQ).

Dr Wolf said he will continue working with the board and the executive team to ensure a “smooth transition”.

Bill Gates Says This Could Be Worth “10 Microsofts”

If You Missed Investing In Microsoft in 1996 – Read This

I can’t believe so many investors haven’t heard about something Microsoft founder Bill Gates told a group of college students in 2004.

This could be your chance to get in on the ground floor!

Click here to discover more!

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!