The Domain Holdings Australia Ltd (ASX: DHG) share price hit a record low of $2.06 today as investors hit the sell button on the back of a softer-than-expected outlook from arch-rival REA Group Limited (ASX: REA) today.
Management at REA Group warned that Australia's residential property listings had been weak over January, with little expectation for improvement given the upcoming state election in NSW and a federal election expected before May 2019.
Domain shares hit the ASX boards back in November 2017 to change for as much as $3.68 over that month, but have now lost around 44% of their value since then over a period that included the merger of its majority shareholder Fairfax Media with Nine Entertainment Co Holdings Ltd (ASX: NEC).
At its November 2018 AGM, Domain's management also warned it had made a soft start to the financial year on the back of weakness in the key Melbourne and Sydney property markets as it continues to invest relatively heavily in the business.
Domain has also been leveraged with up $126.5 million of net debt as at the end of fiscal 2018, which represents around 1.1x EBITDA. Domain should hand in its interim profit report later this month.
