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

The Abacus Property Group (ASX:ABP) share price has been sinking. But that could change.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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".

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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »