MENU

Gateway Lifestyle Group announces asset sales

Gateway Lifestyle Group (ASX: GTY) is one of Australia’s leading retirement village operators. I think it’s one of the more ‘wholesome’ ones because it doesn’t charge entry or exit fees for residents.

Gateway has a portfolio of property locations and a huge tailwind with Australia’s ageing demographics. A lot of people will want to or need to live in a retirement village due to its low cost and friendly atmosphere.

So, it makes sense that Gateway would want to sell some of its underperforming assets and re-allocate that capital towards better assets.

Today, Gateway announced that it has entered into unconditional contracts to sell two of its non-core assets for $18.4 million, which is in line with the book value.

The first one that it’s selling is ‘Gateway Lifestyle Bass Hill’ for a sale price of $10.4 million, which is expected to settle in July 2018.

The other sale is ‘Gateway Lifestyle Rainbow Waters’ for a sale price of $8 million, this is expected to settle in February 2018.

Gateway said that these divestments are consistent with the Group’s asset recycling strategy, allowing redeployment of capital and will continue to improve the quality of the Group’s portfolio.

Gateway CEO, Trent Ottawa, said “We remain focused on growing the portfolio of long-term occupied sites. The divestment of non-core assets is a key part of our strategy, as we look to improve the quality of assets in the Group’s portfolio and ongoing investment in higher returning communities driven by development potential and operating margins”.

It’s expected that these transactions will not have an impact on the Group’s FY18 market guidance.

Gateway is currently trading with a distribution yield of 4.53% and could be well worth a long-term buy for income investors. It is on my watchlist and could enter my portfolio over the next couple of years.

However, if you want an even better income idea then you should check out this top dividend stock for FY18.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison 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!